Arrowhead Pharmaceuticals (ARWR) AI Stock Analysis

• Market Cap: $5.25B
• Dividend Yield: N/A
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.36
• Revenue Growth: 2816.21%
• EPS Growth: 73.33%
• Country: US
• Employees: 609
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.26
• Shares Outstanding: 138,257,550
• 10 Day Avg. Volume: 1,905,381
• 30 Day Avg. Volume: 2,282,485
• PEG Ratio: -0.02
• Price to Book (P/B): 12.51
• Price to Sales (P/S): 653.40
• P/FCF Ratio: -3.84
• Enterprise Value/Market Cap: 0.38
• Enterprise Value/Revenue: 3.36
• Enterprise Value/Gross Profit: 3.48
• Enterprise Value/Ebitda: -38.23
• 1Y Price Target: $42.43
• Price Target Upside: 7.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 58 Neutral
• Price Target: $40.00 ▲(1.14% Upside)

Arrowhead Pharmaceuticals' overall stock score is driven primarily by its challenging financial performance, which is offset by strong technical indicators suggesting bullish momentum. The valuation remains a concern due to negative profitability metrics. The company's strategic initiatives and partnerships provide a cautiously optimistic outlook, but financial sustainability remains a key risk.

Positive Factors

Strategic Partnerships

The partnership with Sanofi provides significant financial support and market access in Greater China, enhancing Arrowhead's global reach and financial stability.

Pipeline Expansion

A robust pipeline with multiple candidates in clinical stages indicates strong potential for future product launches and revenue growth.

Financial Position

A strong cash position provides Arrowhead with the flexibility to fund ongoing R&D and strategic initiatives, supporting long-term growth.

Negative Factors

Negative Profitability

Sustained negative profitability can hinder Arrowhead's ability to reinvest in growth and may necessitate additional financing, impacting financial sustainability.

Rising Operating Expenses

Increasing operating expenses, particularly in R&D, could pressure margins and require careful management to ensure long-term financial health.

Patent Litigation Risk

Ongoing patent litigation could pose risks to Arrowhead's commercialization plans and financial outcomes, potentially impacting its strategic initiatives.

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 a combination of collaboration agreements, licensing deals, and potential milestone payments from its partnerships with larger pharmaceutical companies. The company may earn upfront payments when entering into collaborations, as well as milestone payments tied to the achievement of specific clinical or regulatory milestones. Additionally, if its product candidates receive regulatory approval and are commercialized, Arrowhead could earn royalties on sales. Strategic partnerships with established pharmaceutical companies, which provide funding and expertise in drug development and commercialization, are significant contributors to Arrowhead's financial success and ongoing research initiatives.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	596.57M	3.55M	240.74M	243.23M	138.29M	87.99M
Gross Profit	576.77M	3.55M	240.74M	243.23M	138.29M	87.99M
EBITDA	-52.51M	-561.51M	-175.67M	-162.29M	-132.58M	-87.22M
Net Income	-148.42M	-599.49M	-205.28M	-176.06M	-140.85M	-84.55M
Balance Sheet
Total Assets	1.38B	1.14B	765.55M	691.94M	710.15M	522.50M
Cash, Cash Equivalents and Short-Term Investments	900.37M	680.96M	403.63M	376.40M	367.79M	315.49M
Total Debt	713.29M	510.55M	383.50M	81.58M	25.55M	21.14M
Total Liabilities	860.81M	948.74M	478.39M	273.60M	301.33M	60.72M
Stockholders Equity	519.81M	185.44M	271.34M	398.52M	408.82M	461.78M
Cash Flow
Free Cash Flow	-17.62M	-604.32M	-330.63M	-188.91M	147.66M	-107.34M
Operating Cash Flow	21.84M	-462.85M	-153.89M	-136.13M	171.22M	-95.39M
Investing Cash Flow	-424.84M	-420.07M	-96.16M	-5.42M	-141.68M	-240.78M
Financing Cash Flow	459.43M	870.52M	253.05M	65.19M	11.30M	257.95M

Arrowhead Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 39.55 is above the 20-day moving average (MA) of 37.14, above the 50-day MA of 31.33, and above the 200-day MA of 20.07, indicating a bullish trend. The MACD of 2.12 indicates Positive momentum. The RSI at 67.49 is Neutral, neither overbought nor oversold. The STOCH value of 72.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARWR.

Arrowhead Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRYS	―	$5.39B	38.64	15.61%	―	116.09%	35.29%
ALKS	―	$4.92B	14.27	23.94%	―	-0.17%	23.84%
ACAD	―	$3.72B	17.28	33.18%	―	14.41%	627.78%
ARWR	―	$5.25B	-31.25	-34.80%	―	2816.21%	73.33%
ACLX	―	$4.70B	―	-42.75%	―	-60.63%	-216.87%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PCVX	―	$5.48B	―	-21.65%	―	―	11.84%

Arrowhead Pharmaceuticals Corporate Events

Arrowhead Pharmaceuticals Faces Patent Lawsuit from Ionis

On September 11, 2025, Ionis Pharmaceuticals filed a patent infringement lawsuit against Arrowhead Pharmaceuticals, alleging that Arrowhead’s planned commercialization of the investigational drug plozasiran infringes on Ionis’s U.S. Patent No. 9,593,333. This legal action follows Arrowhead’s own filing on September 10, 2025, seeking a declaratory judgment that the patent is invalid and not infringed. The outcome of this legal dispute could significantly impact Arrowhead’s operations and its position in the market for treatments targeting familial chylomicronemia syndrome (FCS), as well as its stakeholders.

The most recent analyst rating on (ARWR) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Arrowhead Pharmaceuticals stock, see the ARWR Stock Forecast page.

Arrowhead Pharmaceuticals Sues Ionis Over Patent Dispute

On September 10, 2025, Arrowhead Pharmaceuticals filed a lawsuit against Ionis Pharmaceuticals in the United States District Court for the District of Delaware. The lawsuit seeks a declaratory judgment that Ionis’s U.S. Patent No. 9,593,333 is invalid and/or not infringed by Arrowhead’s planned commercialization of investigational plozasiran. This legal action could impact Arrowhead’s operations and its position in the RNAi therapeutics market, particularly concerning its advanced drug candidate, plozasiran, which has shown promise in treating familial chylomicronemia syndrome (FCS) by significantly reducing triglycerides and pancreatitis risk in patients.

The most recent analyst rating on (ARWR) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Arrowhead Pharmaceuticals stock, see the ARWR Stock Forecast page.

Arrowhead Pharmaceuticals Partners with Novartis for ARO-SNCA

On September 2, 2025, Arrowhead Pharmaceuticals entered into an exclusive licensing and collaboration agreement with Novartis Pharma AG for ARO-SNCA, a preclinical stage RNA interference therapeutic for Parkinson’s Disease. Arrowhead will receive a $200 million upfront payment and could earn up to $2 billion in milestone payments, with Novartis taking responsibility for clinical development and commercialization. This partnership highlights Arrowhead’s strategic positioning in the CNS space and the potential impact of its TRiMTM platform in advancing treatments for neurodegenerative diseases.

The most recent analyst rating on (ARWR) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Arrowhead Pharmaceuticals stock, see the ARWR Stock Forecast page.

Arrowhead Pharmaceuticals Advances Plozasiran Study for Hypertriglyceridemia

Arrowhead Pharmaceuticals, Inc. is conducting a Phase 3 open-label extension study titled A Phase 3 Open-Label Extension Study to Evaluate the Long-Term Safety and Efficacy of Plozasiran in Adults With Hypertriglyceridemia (SHASTA-10 Study). The study aims to assess the long-term safety and efficacy of Plozasiran in adults with hypertriglyceridemia and severe hypertriglyceridemia, building on previous research to provide more comprehensive data on its effects.

Arrowhead Pharmaceuticals’ Earnings Call Highlights Strategic Progress

Arrowhead Pharmaceuticals’ recent earnings call highlighted the company’s robust progress across various clinical programs, strategic partnerships, and a solid financial position. Despite facing increased operational costs and external factors affecting its stock price, the overall sentiment was positive, reflecting confidence in the company’s strategic direction and future prospects.

Arrowhead Pharmaceuticals Advances RNAi Therapeutics Pipeline

Arrowhead Pharmaceuticals, Inc. is a biotechnology company specializing in the development of RNA interference (RNAi) therapeutics aimed at treating intractable diseases by silencing the genes responsible for them. The company leverages a broad portfolio of RNA chemistries and efficient delivery mechanisms to induce gene knockdown, positioning itself as a leader in the RNAi sector.