Korea-Based Wisepower Acquires Arrowhead's Subsidiary

Arrowhead Research Corporation (NASDAQ: ARWR) today announced that its Unidym, Inc. subsidiary has been acquired by Wisepower Co., Ltd., a publicly-traded, Seoul, Korea-based electronics company (KOSDAQ: 040670).

Upfront consideration to Unidym shareholders consists of Wisepower stock and convertible bonds valued at US $5,000,000 with certain restrictions as to timing of stock sales. Unidym shareholders are also entitled to cash earn-out payments up to US $140 million based on cumulative sales and licensing milestones. Finally, Unidym shareholders will receive 40% of licensing revenue from a set of patents that have been generating increasing quarterly royalties in addition to the potential $140 million earn-out. The transaction enables Arrowhead to substantially decrease its burn rate, focus exclusively on nanomedicine, and retain significant upside exposure as Unidym penetrates its target markets with the help of an experienced partner in Wisepower.

“Unidym has built significant value by identifying and developing a large set of market opportunities for carbon nanotube based electronic products,” said Christopher Anzalone, Arrowhead’s CEO. “Now that Unidym is pushing into the marketplace, Wisepower’s resources and market reach will be critical to its ability to grow revenues. The acquisition structure enables Arrowhead to potentially extract substantial value over time as Unidym’s technology is adopted on a wider scale and as revenue grows.”

Completion of this transaction represents the achievement of an important strategic goal for Arrowhead. The Company has evolved from a diversified nanotechnology company addressing multiple industries to a focused nanomedicine company, and the Unidym sale is the final step in this transition. This enables Arrowhead to allocate its resources toward a single industry, operate and grow in a more cohesive fashion, and it lays the groundwork for Arrowhead to emerge as a leader in the field.

“We are able to further increase our operational efficiencies by building a team of professionals with a single industry focus and by enabling more synergies among our subsidiaries,” continued Dr. Anzalone. “This transition is also potentially beneficial to shareholder value from an outward-looking perspective. We now have a far simpler and more cohesive story to articulate to analysts and institutional investors, and I am confident that our value proposition will fit more neatly into investors’ established frameworks. The ability to focus our resources, including cash flow from the Unidym sale, on continued investment in our current nanomedicine companies and strengthening our relationships with potential pharma partners should allow us to maximize each subsidiary’s success and, therefore, shareholder value.”

Source: http://www.arrowheadresearch.com/


Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Arrowhead Pharmaceutical. (2019, February 12). Korea-Based Wisepower Acquires Arrowhead's Subsidiary. AZoNano. Retrieved on June 25, 2024 from https://www.azonano.com/news.aspx?newsID=21267.

  • MLA

    Arrowhead Pharmaceutical. "Korea-Based Wisepower Acquires Arrowhead's Subsidiary". AZoNano. 25 June 2024. <https://www.azonano.com/news.aspx?newsID=21267>.

  • Chicago

    Arrowhead Pharmaceutical. "Korea-Based Wisepower Acquires Arrowhead's Subsidiary". AZoNano. https://www.azonano.com/news.aspx?newsID=21267. (accessed June 25, 2024).

  • Harvard

    Arrowhead Pharmaceutical. 2019. Korea-Based Wisepower Acquires Arrowhead's Subsidiary. AZoNano, viewed 25 June 2024, https://www.azonano.com/news.aspx?newsID=21267.

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.