Pasadena-based Arrowhead Pharmaceuticals Inc. has announced another major licensing deal with a pharma giant. This one is with Basel, Switzerland-based Novartis for $200 million in upfront payment and up to $2 billion in potential future milestone and commercial sale royalty payments.

Arrowhead shares rose up nearly 17% on news of the deal on Sept. 2. Since June 30, shares have zoomed up 72%.

At the center of this licensing deal is Arrowhead’s preclinical stage short RNA-strand therapy against alpha-synuclein – a neuronal protein that regulates neurotransmission releases. It is intended to treat Parkinson’s and similar diseases. The deal also provides for additional collaboration targets using Arrowhead’s main drug platform.

The transaction is expected to close by the end of this year.

Novartis has the financial wherewithal to carry out its end of the deal; the Swiss pharma giant reported $50.3 billion in revenue last year.

“With a robust neuroscience pipeline and clear commitment to neurodegenerative diseases and genetic medicines, Novartis is a compelling partner for Arrowhead in the (central nervous system) space,” Christopher Anzalone, Arrowhead’s chief executive, said in the Sept. 2 announcement.

Sarepta troubles

Hopefully for Arrowhead’s sake, Novartis won’t run into trouble with any of its other drugs as Cambridge, Massachusetts-based Sarepta Therapeutics Inc. did a couple months back.

That deal involved a total of seven drugs in Arrowhead’s pipeline. Sarepta agreed to pay Arrowhead $500 million in cash up front with another $250 million in $50 million increments over five years and the potential for hundreds of millions of dollars in future milestone payment. Arrowhead’s investors also received $325 million worth of Sarepta shares up front.

But earlier this summer, Sarepta ran into serious trouble as three patients taking its drug to treat Duchenne Muscular Dystrophy died. The U.S. Food and Drug Administration demanded that Sarepta halt all shipments of the drug.

This prompted Arrowhead shares to plunge 22% to $14.71 on July 21, forcing company executives to reassure investors that this drug was not part of its deal with Sarepta. Arrowhead shares eventually recovered all their lost ground and then some, closing on Sept. 5 at a 52-week high of $29.08.