Hold Rating for Arrowhead Pharmaceuticals Amid Revenue Gains and Market Uncertainties

David Lebowitz, an analyst from Citi, maintained the Hold rating on Arrowhead Pharmaceuticals (ARWR – Research Report). The associated price target is $17.00.

David Lebowitz has given his Hold rating due to a combination of factors surrounding Arrowhead Pharmaceuticals. The company’s recent financial results show significant revenue from a licensing agreement with Sarepta, which alleviates cash concerns and provides substantial cash infusions over the coming years. However, despite these positive developments, the short-term potential for share price growth appears limited.
The acceptance of the NDA for plozasiran by the FDA and the upcoming PDUFA target action date could position Arrowhead for its first approved drug in the ultra-rare FCS market. Yet, as a second entrant following Ionis’ Tryngolza, the market opportunity may be constrained. Additionally, while the company is preparing for a potential launch, the lack of concrete details and the anticipated competition in the market contribute to the Hold rating. Overall, while there are promising aspects, the short-term outlook remains cautious.

ARWR’s price has also changed moderately for the past six months – from $21.510 to $13.970, which is a -35.05% drop .