Arrowhead Pharmaceuticals (ARWR) AI Stock Analysis

• Market Cap: $2.18B
• Dividend Yield: N/A
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.35
• Revenue Growth: 1436.97%
• EPS Growth: 68.03%
• Country: US
• Employees: 609
• Sector: Healthcare
• Sector Strength: 38
• Industry: Biotechnology
• EPS (TTM): 2.75
• Shares Outstanding: 138,100,430
• 10 Day Avg. Volume: 2,626,877
• 30 Day Avg. Volume: 1,881,030
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 2.51
• Enterprise Value/Ebitda: -19.93
• 1Y Price Target: $37.50
• Price Target Upside: 135.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 47 Neutral
• Price Target: $14.50 ▼(-8.98%Downside)

Arrowhead Pharmaceuticals' overall stock score reflects significant financial challenges and valuation concerns. Despite promising pipeline developments and positive earnings call sentiment, the company's financial instability and reliance on external financing weigh heavily on the score.

Positive Factors

Financial Performance

The deal brought in $825M of upfront cash, annual payments of $50M beginning Feb 2026, and $100M + $200M in clinical trial enrollment milestones for ARO-DM1 that Arrowhead expects to meet within a year.

Partnerships

Recent developments continue to reinforce the strength and strategic value of its collaboration with Sarepta Therapeutics, which remains symbiotic and mutually beneficial.

Pipeline Advancement

Arrowhead enters its F2H25 with accelerating momentum across its RNAi pipeline, led by the anticipated U.S. launch of plozasiran for FCS and supported by a robust portfolio of late-stage, early-stage, and partnered programs spanning cardiometabolic, pulmonary, muscular, adipose, and CNS diseases.

Negative Factors

Equity Investment Concerns

Arrowhead Pharmaceuticals, Inc. shares have been volatile due to fears of near-term selling pressure if SRPT monetized its equity investment.

Partnership Risks

If SRPT may choose to abandon the partnership entirely, this would leave ARWR without a key source of cash.

Regulatory Uncertainty

Uncertainty remains high due to questions around patient/physician demand, lingering safety concerns, and an unpredictable FDA affecting Elevidys uptake.

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 trial for the treatment of liver diseases associated with alpha-1 antitrypsin deficiency; ARO-APOC3, which is in phase 2b and one phase 3 clinical trial to treat hypertriglyceridemia; ARO-ANG3 that is in Phase 2b clinical trial to reduce production of angiopoietin-like protein 3; ARO-HSD, which is in Phase 1/2a clinical trial to treat liver diseases; ARO-ENaC, which is in a Phase 1/2a clinical trial to reduce production of the epithelial sodium channel alpha subunit in the airways of the lung; ARO-C3 for the treatment of complement-mediated disease that is in Phase 1/2a clinical trial; ARO-Lung2 for the treatment of chronic obstructive pulmonary disorder; ARO-DUX4 for the treatment of facioscapulohumeral muscular dystrophy; ARO-XDH to treat uncontrolled gout; ARO-COV for the treatment of COVID-19 and other pulmonary-borne pathogens; and ARO-HIF2, which is in phase 1b clinical trial to treat clear cell renal cell carcinoma. It is also involved in the development of JNJ-3989, a subcutaneously administered RNAi therapeutic candidate to treat chronic hepatitis B virus infection; Olpasiran to reduce the production of apolipoprotein A; and ARO-AMG1 for treating genetically validated cardiovascular targets. Arrowhead Pharmaceuticals, Inc. has a license and research collaboration agreement with Janssen Pharmaceuticals, Inc. to develop ARO-JNJ1, ARO-JNJ2, and ARO-JNJ3 RNAi therapeutics for liver-expressed targets; and license and research collaboration agreement with Takeda Pharmaceuticals U.S.A., Inc. to develop RNAi therapeutic candidate as a treatment for liver disease. Arrowhead Pharmaceuticals, Inc. was incorporated in 1989 and is headquartered in Pasadena, California.

How the Company Makes Money

Arrowhead Pharmaceuticals generates revenue primarily through collaborations and partnerships with larger pharmaceutical companies. These partnerships often involve milestone payments, licensing fees, and potential royalties on sales of developed drugs. For instance, Arrowhead has entered into significant agreements with companies like Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson, and Amgen. These collaborations typically involve co-development of RNAi therapies, allowing Arrowhead to leverage its TRiM platform while benefiting from the expertise and resources of its partners. Additionally, Arrowhead may receive research funding and upfront payments as part of these agreements. The company's focus on developing novel therapeutics for unmet medical needs also positions it to benefit from long-term revenue streams once its therapies reach commercialization stages.

Arrowhead Pharmaceuticals Financial Statement Overview

Summary

Arrowhead Pharmaceuticals faces significant financial challenges with negative profitability and cash flow metrics. The company's increasing leverage and dependence on external financing underscore the need for strategic improvements to enhance financial sustainability. Continued monitoring of revenue growth and profitability trends is critical for assessing long-term viability.

Income Statement

Arrowhead Pharmaceuticals exhibits a challenging income statement profile. The company reports negative gross profit margins, indicating that its costs exceed revenues. The net profit margin is also deeply negative, driven by substantial losses, highlighting significant profitability challenges. Revenue growth was volatile, with a sharp decline in the most recent TTM period compared to the previous year.

Balance Sheet

The balance sheet shows a mixed picture. The debt-to-equity ratio has increased over time, reflecting rising leverage. Return on equity is negative due to consistent net losses. However, the company maintains a reasonable equity ratio, suggesting some stability in assets to equity. Overall, there is room for improvement in financial stability.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, indicating cash burn and potential liquidity pressures. Free cash flow growth is negative, and both operating and free cash flow to net income ratios are unfavorable due to operating losses. The company relies heavily on financing activities to support cash needs, suggesting potential future financing risks.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.55M	240.74M	243.23M	138.29M	87.99M
Gross Profit	3.55M	240.74M	243.23M	138.29M	0.00
EBITDA	-561.51M	-175.67M	-162.29M	-132.58M	-87.22M
Net Income	-599.49M	-205.28M	-176.06M	-140.85M	-84.55M
Balance Sheet
Total Assets	1.14B	765.55M	691.94M	710.15M	522.50M
Cash, Cash Equivalents and Short-Term Investments	680.96M	403.63M	376.40M	367.79M	315.49M
Total Debt	510.55M	115.17M	81.58M	25.55M	21.14M
Total Liabilities	948.74M	478.39M	585.98M	301.33M	60.72M
Stockholders Equity	185.44M	271.34M	105.96M	408.82M	461.78M
Cash Flow
Free Cash Flow	-604.32M	-330.63M	-188.91M	147.66M	-107.34M
Operating Cash Flow	-462.85M	-153.89M	-136.13M	171.22M	-95.39M
Investing Cash Flow	-420.07M	-96.16M	-5.42M	-141.68M	-240.78M
Financing Cash Flow	870.52M	253.05M	65.19M	11.30M	257.95M

Arrowhead Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.93
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARWR, the sentiment is Negative. The current price of 15.93 is below the 20-day moving average (MA) of 16.89, below the 50-day MA of 16.39, and below the 200-day MA of 17.60, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 46.71 is Neutral, neither overbought nor oversold. The STOCH value of 50.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARWR.

Arrowhead Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMCR	64 Neutral	$1.66B	―	-5.78%	―	25.50%	64.63%
KYMR	60 Neutral	$3.01B	―	-32.17%	―	-25.85%	-23.89%
AGIO	59 Neutral	$2.03B	3.17	64.05%	―	30.57%	―
Sector *	51 Neutral	$7.35B	0.50	-65.61%	2.47%	15.28%	1.44%
BEAM	50 Neutral	$1.89B	―	-38.04%	―	-82.38%	-164.76%
ARWR	47 Neutral	$2.18B	―	-24.67%	―	1436.97%	68.03%
IRON	43 Neutral	$2.04B	―	-23.34%	―	―	-14.19%

Arrowhead Pharmaceuticals Corporate Events

Arrowhead Pharmaceuticals Announces New CFO Appointment

Arrowhead Pharmaceuticals announced the retirement of its Chief Financial Officer, Ken Myszkowski, effective May 13, 2025, after 16 years of service. He will continue as an employee adviser until January 31, 2026, to ensure a smooth transition. Daniel Apel, formerly of Walgreens Boots Alliance and Bayer, will succeed Myszkowski as CFO. Apel’s appointment comes as Arrowhead transitions from a development stage to a commercial stage, with plans to launch plozasiran pending regulatory approval. This leadership change is expected to support Arrowhead’s ambitious development and commercialization plans.