Arrowhead Pharmaceuticals (ARWR)
NASDAQ:ARWR
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Arrowhead Pharmaceuticals
(NASDAQ:ARWR)
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Rating:62Neutral
Price Target:
$69.00
▲(8.17% Upside)
Action:ReiteratedDate:03/21/26
The score is driven primarily by a strong recent financial inflection (profitability and free-cash-flow generation) and a generally constructive earnings-call outlook supported by funding and pipeline progress. These positives are tempered by weak current technical momentum and a high P/E valuation, alongside ongoing volatility/leverage risks typical of the company’s recent history.
Positive Factors
Strong free cash flow generation
Sustained positive operating cash flow and a large, rapidly growing free-cash-flow profile provide durable funding for late‑stage trials, commercialization investments and debt servicing. This materially reduces near‑term refinancing risk versus prior burn periods, though sustainability must be monitored.
Negative Factors
Meaningful leverage relative to equity
Debt still exceeds equity, leaving the company exposed if clinical or commercial outcomes deteriorate. Higher leverage constrains financial flexibility, increases refinancing and covenant risk, and can amplify dilution from convertibles if equity underperforms, making sustained profitability critical to de‑risk the balance sheet.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained positive operating cash flow and a large, rapidly growing free-cash-flow profile provide durable funding for late‑stage trials, commercialization investments and debt servicing. This materially reduces near‑term refinancing risk versus prior burn periods, though sustainability must be monitored.
Read all positive factors
Arrowhead Pharmaceuticals (ARWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.12B
Dividend YieldN/A
Average Volume (3M)2.21M
Price to Earnings (P/E)75.4
Beta (1Y)2.37
Revenue Growth23258.15%
EPS Growth99.12%
CountryUS
Employees609
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)0.22
Shares Outstanding140,032,200
10 Day Avg. Volume1,394,857
30 Day Avg. Volume2,205,220
Financial Highlights & Ratios
PEG Ratio28.35
Price to Book (P/B)9.90
Price to Sales (P/S)5.56
P/FCF Ratio29.41
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue8.66
Enterprise Value/Gross Profit8.87
Enterprise Value/Ebitda25.52
Forecast
1Y Price Target
$91.67Price Target Upside43.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-3.21
Revenue Forecast (FY)$454.26M
Arrowhead Pharmaceuticals Business Overview & Revenue Model
Company Description
Arrowhead Pharmaceuticals, Inc. develops medicines for the treatment of intractable diseases in the United States. The company's products in pipeline includes ARO-AAT, a RNA interference (RNAi) therapeutic candidate that is in Phase II clinical tr...
How the Company Makes Money
Arrowhead primarily makes money through (1) collaboration and licensing arrangements and (2) potential future product sales if any of its drug candidates are approved. Under collaboration/licensing deals, Arrowhead can receive upfront payments, re...
Arrowhead Pharmaceuticals Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed strong positive progress: first product approval and launch (REDEMPLO), robust efficacy data (PALISADE median TG reduction ~80%), significant non-dilutive and dilutive financing activity that strengthened the balance sheet ($1.33B of transactions and ~$917M reported cash), and encouraging early clinical signals across obesity and CNS programs (≈2x weight loss with ARO-INHBE combo; −88% ALK7 mRNA). Offsetting risks include limited early commercial data (only ~100 prescriptions in a 10‑week window), heavy reliance on collaboration/milestone revenue this quarter versus product sales, materially higher operating expenses (+$59M, ~36% YoY), and several programs still early/blinded with data uncertainties. On balance, the highlights—regulatory approvals, commercial launch execution, large financing and advancing pipeline with meaningful early clinical readouts—outweigh the lowlights, which are largely timing, early-stage uncertainty and expected near-term cost increases.Positive Updates
First Regulatory Approval and Commercial Launch of REDEMPLO
FDA approval on Nov 18, 2025 for REDEMPLO in adults with familial chylomicronemia syndrome (FCS); launched independently in the U.S.; product available in channel within days of approval. Over 100 prescriptions received in ~10 weeks of launch across a geographically balanced prescriber base; self-administered 25 mg every 3 months (4 injections/year).
Negative Updates
Limited Early Commercial Traction and Short Launch Window
Only ~10 weeks of U.S. commercial availability (including major holidays) with just over 100 prescriptions to date; company cautions the sample is small and it's too early to infer long-term launch trajectory or meaningful product sales.
Read all updates
Q1-2026 Updates
Positive
Negative
First Regulatory Approval and Commercial Launch of REDEMPLO
FDA approval on Nov 18, 2025 for REDEMPLO in adults with familial chylomicronemia syndrome (FCS); launched independently in the U.S.; product available in channel within days of approval. Over 100 prescriptions received in ~10 weeks of launch across a geographically balanced prescriber base; self-administered 25 mg every 3 months (4 injections/year).
Read all positive updates
Company Guidance
Guidance from the call focused on clinical and commercial milestones and near‑term financial runway: management expects completion of the blinded portions of the registrational SHASTA‑3/SHASTA‑4 and MUIR‑3 studies in mid‑2026 with topline SHASTA readouts and a planned sNDA for plozasiran in SHTG in Q3 2026 and before year‑end (SHASTA‑3/4 enrolled ~750 patients pooled and MUIR‑3 ~1,400), noting 37% of SHASTA enrollees had TGs >880 mg/dL and 20% had prior pancreatitis; REDEMPLO commercialization (U.S. approval 11/18/2025; Canada and China approvals in Jan 2026) is in early launch with >100 prescriptions in ~10 weeks, targeting ~5,000 HCPs, dosing 25 mg SC every 3 months (4 injections/year) and PALISADE showed a median ~80% TG reduction; ARO‑DIMER‑PA interim data expected H2 2026, ARO‑INHBE reported ~2x weight loss at week 16 (400 mg + tirzepatide) and ~3x reductions in total/visceral/liver fat at week 12, ARO‑ALK7 showed mean adipose mRNA reductions of −88% (200 mg, week 8; max −94%), and ARO‑MAPT healthy volunteer data are expected in 2026 (patients in 2027); financially, Arrowhead strengthened its balance sheet with ~$1.33B of transactions (including $200M Novartis upfront, $200M Sarepta milestone, $700M convertibles and $230M equity), reported $264M revenue and $30.8M net income ($0.22/sh) in Q1 FY2026 versus a prior‑year loss of $173.1M, held ~$917M cash/investments as of 12/31/2025, and recorded operating expenses of ~$223M (R&D +$40M, SG&A +$19M), positioning the company to fund multiple upcoming readouts and potential launches.Arrowhead Pharmaceuticals Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
80
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.09B | 829.45M | 3.55M | 240.74M | 243.23M | 138.29M |
| Gross Profit | 1.07B | 805.52M | -15.04M | 228.24M | 232.81M | 0.00 |
| EBITDA | 370.22M | 164.82M | -561.51M | -175.67M | -162.29M | -132.58M |
| Net Income | 202.26M | -1.63M | -599.49M | -205.28M | -176.06M | -140.85M |
Balance Sheet | ||||||
| Total Assets | 1.60B | 1.39B | 1.14B | 765.55M | 691.94M | 710.15M |
| Cash, Cash Equivalents and Short-Term Investments | 916.61M | 919.37M | 680.96M | 403.63M | 376.40M | 367.79M |
| Total Debt | 312.77M | 366.28M | 851.91M | 383.50M | 81.58M | 25.55M |
| Total Liabilities | 1.04B | 881.88M | 948.74M | 478.39M | 273.60M | 301.33M |
| Stockholders Equity | 568.42M | 466.05M | 185.44M | 271.34M | 398.52M | 408.82M |
Cash Flow | ||||||
| Free Cash Flow | 322.01M | 156.89M | -604.32M | -330.63M | -188.91M | 147.75M |
| Operating Cash Flow | 339.31M | 179.55M | -462.85M | -153.89M | -136.13M | 171.31M |
| Investing Cash Flow | -229.95M | -129.29M | -420.07M | -96.16M | -5.42M | -141.68M |
| Financing Cash Flow | 38.62M | 74.01M | 870.52M | 253.05M | 65.19M | 11.30M |
Arrowhead Pharmaceuticals Technical Analysis
Positive
63.79
Price Trends
62.08
Positive
62.34
Positive
44.79
Positive
Market Momentum
0.96
Negative
56.30
Neutral
81.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARWR, the sentiment is Positive. The current price of 63.79 is above the 20-day moving average (MA) of 60.17, above the 50-day MA of 62.08, and above the 200-day MA of 44.79, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 81.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARWR.
Arrowhead Pharmaceuticals Risk Analysis
Arrowhead Pharmaceuticals disclosed 67 risk factors in its most recent earnings report. Arrowhead Pharmaceuticals reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arrowhead Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $7.57B | 34.71 | 18.69% | ― | 54.51% | 275.94% | |
71 Outperform | $3.71B | 11.57 | 41.90% | ― | 12.69% | 100.80% | |
66 Neutral | $5.55B | 19.07 | 14.45% | ― | 1.08% | 3.40% | |
64 Neutral | $6.72B | -15.79 | -55.42% | ― | -76.96% | -425.41% | |
62 Neutral | $9.12B | 75.44 | 36.12% | ― | 23258.15% | 99.12% | |
56 Neutral | $8.76B | -8.19 | -25.88% | ― | ― | -5.21% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ARWR
Arrowhead Pharmaceuticals
63.79
50.92
395.65%
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Arrowhead Pharmaceuticals Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Arrowhead Shareholders Reject Say-on-Pay at 2026 Meeting
Negative
Mar 20, 2026
At its 2026 Annual Meeting of Stockholders on March 19, 2026, Arrowhead Pharmaceuticals shareholders voted on the election of seven directors, executive compensation, an amended and restated 2021 incentive plan, and the ratification of KPMG LLP as...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.