Morgan Stanley sees positive readthrough to Arrowhead pipeline from Wave data

Morgan Stanley reiterated an Equal Weight rating and $48 price target on Arrowhead (ARWR) after Wave (WVE) announced Phase 1 data for WVE-007 showing significant reductions in body fat while preserving lean mass in obese subjects. The firm said there is positive readthrough to Arrowhead from the competing inhibin beta E program, as Arrowhead is evaluating ARO-IHNHBE and ARO-ALK in Phase 1/2a trials, with initial data expected during the first week of January. Overall, the firm believes the data from Wave provides early validation that targeting the Activin E pathway has potential in obesity, and sees positive readthrough to Arrowhead’s obesity pipeline.