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Arrowhead Pharmaceuticals (ARWR)
NASDAQ:ARWR
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Arrowhead Pharmaceuticals
(NASDAQ:ARWR)
Rating:57Neutral
Price Target:
$29.00
▲(1.15% Upside)
Positive Factors
Strategic Partnerships
The Novartis partnership enhances Arrowhead's strategic positioning in the CNS space, providing significant financial resources and validating its RNAi technology.
Pipeline Expansion
A broad and expanding pipeline indicates robust R&D capabilities and potential for future revenue streams, strengthening Arrowhead's market position.
Financial Position
A strong cash position provides Arrowhead with the financial flexibility to fund its R&D activities and strategic initiatives without immediate reliance on external financing.
Negative Factors
Negative Profitability
Persistent negative profitability can hinder long-term sustainability, necessitating strategic improvements to achieve financial viability and reduce reliance on external funding.
Rising Operating Expenses
Increasing operating expenses, particularly in R&D, may strain financial resources and impact profitability unless offset by revenue growth or cost management.
Leverage and Financing Dependence
High leverage and reliance on external financing can limit financial flexibility and increase risk, necessitating careful management to ensure long-term stability.
Arrowhead Pharmaceuticals (ARWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.11B
Dividend YieldN/A
Average Volume (3M)2.76M
Price to Earnings (P/E)―
Beta (1Y)2.37
Revenue Growth2816.21%
EPS Growth73.33%
CountryUS
Employees609
SectorHealthcare
Sector Strength44
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.26
Shares Outstanding138,257,550
10 Day Avg. Volume3,402,272
30 Day Avg. Volume2,756,421
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.49
Enterprise Value/Revenue3.36
Enterprise Value/Gross Profit3.48
Enterprise Value/Ebitda-28.85
Forecast
1Y Price Target
$36.00Price Target Upside25.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Arrowhead Pharmaceuticals Business Overview & Revenue Model
Company DescriptionArrowhead Pharmaceuticals is a clinical-stage biopharmaceutical company focused on developing transformative medicines for the treatment of serious diseases by leveraging its proprietary RNA interference (RNAi) technology. The company operates primarily in the biotechnology sector, with a focus on developing therapies for liver diseases, cancer, and other serious health conditions. Arrowhead's core product candidates include ARO-AAT for the treatment of alpha-1 antitrypsin deficiency and ARO-HBV for hepatitis B, among others, which are designed to silence specific genes implicated in disease pathology.
How the Company Makes MoneyArrowhead 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 Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Dec 01, 2025
Earnings Call Sentiment Neutral
Arrowhead Pharmaceuticals has made significant progress in its clinical pipeline and strategic partnerships, with several promising developments, such as the full enrollment of key studies and a substantial deal with Sanofi. However, the negative impact of Sarepta's restructuring on Arrowhead's stock price and increased operating expenses are notable concerns. The overall sentiment is cautiously optimistic, given the strong financial position and upcoming milestones.Q3-2025 Updates
Positive Updates
Plozasiran Development Progress
Full enrollment achieved in SHASTA-3, SHASTA-4, and MUIR-3 Phase III studies for plozasiran, with completion expected by mid-2026. Market authorization applications for FCS are progressing, with a U.S. PDUFA date set for November 18, 2025.
Zodasiran Phase III Initiation
YOSEMITE Phase III study for zodasiran as a treatment for HoFH initiated, with the first patient enrolled. The study targets 60 subjects over 12 months to assess LDL-cholesterol reduction.
Visirna Therapeutics Deal with Sanofi
Sanofi to acquire rights to plozasiran in Greater China, providing $130 million upfront and up to $265 million in milestone payments. Arrowhead retains a 56% ownership in Visirna.
Strong Financial Position
Cash and investments totaled $900.4 million as of June 30, 2025. Upcoming $100 million milestone payment from Sarepta expected to further bolster financials.
Broad Pipeline and Strategic Initiatives
Arrowhead is on track with its '20 in 25' initiative, aiming to have 20 drug candidates in clinical studies or at market by the end of 2025. The company is focused on expanding its cardiometabolic and CNS franchises.
Negative Updates
Impact of Sarepta's Strategic Restructuring
Sarepta's recent setbacks and restructuring have negatively affected Arrowhead's stock price, although Arrowhead's partnership with Sarepta remains intact.
Increased Operating Expenses
Total operating expenses increased by $17.2 million year-over-year, driven primarily by higher R&D costs related to Phase III registrational trials.
Net Loss for the Quarter
Net loss of $175.2 million for the quarter ended June 30, 2025, compared to $170.8 million for the same period in 2024.
Company Guidance
During Arrowhead Pharmaceuticals' fiscal 2025 third-quarter conference call, the company provided comprehensive guidance on several key metrics. The management highlighted the progress with plozasiran, which has a U.S. PDUFA date set for November 18, 2025, and is actively enrolling its Phase III trials targeting severe hypertriglyceridemia (SHTG), with over 2,200 patients enrolled across 24 countries. The company also initiated a Phase III study for zodasiran and achieved full enrollment for its late-stage candidates, including fazirsiran and olpasiran, which are being developed in partnership with Takeda and Amgen, respectively. Arrowhead's financial position was strengthened by a $100 million milestone payment from Sarepta, with anticipation of an additional $200 million payment by year-end. Moreover, the company announced a $130 million upfront payment from Sanofi for rights to develop and commercialize plozasiran in Greater China, with potential milestones up to $265 million. The firm is actively preparing for the U.S. launch of plozasiran, with its commercialization team nearly complete, and is on track to meet its "20 in 25" initiative, aiming to have 20 drug candidates in clinical studies or at market by the end of 2025.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.30
Negative
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.45
Neutral
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.40
Negative
| 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 | -69.57M | -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 | 112.70M | 510.55M | 383.50M | 81.58M | 25.55M | 21.14M |
| Total Liabilities | 666.28M | 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
Positive
28.67
Price Trends
20.13
Positive
17.71
Positive
17.92
Positive
Market Momentum
2.91
Negative
70.34
Negative
79.22
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 28.67 is above the 20-day moving average (MA) of 24.63, above the 50-day MA of 20.13, and above the 200-day MA of 17.92, indicating a bullish trend. The MACD of 2.91 indicates Negative momentum. The RSI at 70.34 is Negative, neither overbought nor oversold. The STOCH value of 79.22 is Neutral, 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 65 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
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.45B | 12.95 | 23.94% | ― | -0.17% | 23.84% | |
78 Outperform | $4.16B | 29.23 | 15.61% | ― | 116.09% | 35.29% | |
73 Outperform | $3.98B | 17.74 | 33.18% | ― | 14.41% | 627.78% | |
57 Neutral | $4.11B | ― | -34.80% | ― | 2816.21% | 73.33% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $4.23B | ― | -42.75% | ― | -60.63% | -216.87% | |
50 Neutral | $4.18B | ― | -21.65% | ― | ― | 11.84% |
* Healthcare Sector Average
Performance Comparison
ARWR
Arrowhead Pharmaceuticals
28.67
8.22
40.20%
ACAD
ACADIA Pharmaceuticals
24.67
8.53
52.85%
ALKS
Alkermes
26.52
-1.31
-4.71%
KRYS
Krystal Biotech
155.71
-38.56
-19.85%
PCVX
Vaxcyte
31.00
-83.24
-72.86%
ACLX
Arcellx Inc
75.20
-1.81
-2.35%
Arrowhead Pharmaceuticals Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Arrowhead Pharmaceuticals Partners with Novartis for ARO-SNCA
Positive
Sep 2, 2025
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.
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.