Arrowhead Pharmaceuticals (ARWR) AI Stock Analysis

• Market Cap: $5.23B
• 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: $44.71
• Price Target Upside: 11.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $44.00 ▲(9.59% Upside)

Arrowhead Pharmaceuticals' overall stock score is driven by strong technical momentum and positive developments in its clinical pipeline and partnerships. However, significant financial challenges and valuation concerns weigh heavily on the score. The earnings call provided a cautiously optimistic outlook, but the company's financial performance remains a critical area for improvement.

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 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 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.

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: Neutral
• Last Price: 40.15
• 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 Neutral. The current price of 40.15 is above the 20-day moving average (MA) of 40.07, above the 50-day MA of 36.73, and above the 200-day MA of 21.81, indicating a neutral trend. The MACD of 0.88 indicates Positive momentum. The RSI at 46.90 is Neutral, neither overbought nor oversold. The STOCH value of 30.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARWR.

Arrowhead Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRYS	80 Outperform	$5.92B	30.61	19.66%	―	54.51%	275.94%
ALKS	74 Outperform	$4.74B	14.19	22.35%	―	1.08%	3.40%
ACAD	73 Outperform	$3.91B	14.86	34.95%	―	12.69%	100.80%
ARWR	57 Neutral	$5.23B	-29.96	-34.80%	―	2816.21%	73.33%
ACLX	52 Neutral	$5.18B	―	-47.18%	―	-76.96%	-425.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PCVX	50 Neutral	$6.36B	―	-20.83%	―	―	-5.21%

Arrowhead Pharmaceuticals Corporate Events

Arrowhead Pharmaceuticals Advances Alzheimer’s Treatment with New Clinical Study

Arrowhead Pharmaceuticals, Inc. has launched a new clinical study titled ‘A Phase 1/2a Placebo-Controlled Dose-Escalating Study to Evaluate the Safety, Tolerability, Pharmacokinetics, and Pharmacodynamics of ARO-MAPT-SC in Healthy Subjects and Subjects With Early Alzheimer’s Disease.’ The study aims to assess the safety and effectiveness of ARO-MAPT-SC, a potential treatment for early Alzheimer’s disease, in both healthy individuals and those with mild cognitive impairment or mild dementia due to Alzheimer’s.

Arrowhead Pharmaceuticals Advances Cholesterol Treatment with Phase 3 Study

Arrowhead Pharmaceuticals, Inc. is conducting a Phase 3 clinical study titled ‘YOSEMITE’ to evaluate the efficacy and safety of Zodasiran in treating Homozygous Familial Hypercholesterolemia (HoFH) in adolescents and adults. This condition is characterized by extremely high cholesterol levels, and the study aims to provide a new treatment option for affected individuals.

Arrowhead Pharmaceuticals Advances in FSHD1 Treatment with ARO-DUX4 Study

Arrowhead Pharmaceuticals, Inc. is conducting a clinical study titled ‘A Phase1/2a Dose-Escalating Study to Evaluate the Safety, Tolerability, Pharmacokinetics, and Pharmacodynamics of ARO-DUX4 in Adult Patients and Adolescent Patients With Facioscapulohumeral Muscular Dystrophy Type 1.’ The study aims to assess the safety and effectiveness of ARO-DUX4, a potential treatment for Facioscapulohumeral Muscular Dystrophy Type 1 (FSHD1), a genetic muscle disorder. This research is significant as it could lead to new therapeutic options for FSHD1 patients.

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, a condition characterized by elevated triglyceride levels, which can lead to cardiovascular issues. This study is significant as it could provide a new therapeutic option for managing hypertriglyceridemia.

Arrowhead Pharmaceuticals Advances in SCA2 Treatment with ARO-ATXN2 Study

Arrowhead Pharmaceuticals, Inc. is conducting a Phase 1 clinical study titled A Phase 1 Placebo-Controlled Dose Escalating Study to Evaluate the Safety, Tolerability, Pharmacokinetics, and Pharmacodynamics of ARO-ATXN2 in Adult Subjects With Spinocerebellar Ataxia Type 2. The study aims to assess the safety and effectiveness of ARO-ATXN2 in adults with Spinocerebellar Ataxia Type 2 (SCA2), a genetic disorder characterized by progressive problems with movement.

Arrowhead Pharmaceuticals’ ARO-INHBE Study: A Potential Game-Changer in Obesity Treatment

Arrowhead Pharmaceuticals, Inc. is conducting a clinical study titled A Phase 1/2a Study to Evaluate the Safety, Tolerability, Pharmacokinetics, and Pharmacodynamics of ARO-INHBE in Adult Volunteers With Obesity With and Without Diabetes Mellitus. The study aims to assess the safety and effectiveness of ARO-INHBE, a potential treatment for obesity, with a focus on its pharmacokinetics and pharmacodynamics in adults, both with and without type 2 diabetes.

Arrowhead Pharmaceuticals’ ARO-ALK7 Study: A Potential Game-Changer in Obesity Treatment

Arrowhead Pharmaceuticals, Inc. is conducting a clinical study titled A Phase 1/2A Dose-Escalating Study to Evaluate the Safety, Tolerability, Pharmacokinetics and Pharmacodynamics of ARO-ALK7 in Adult Volunteers With Obesity With and Without Type 2 Diabetes Mellitus. The study aims to assess the safety and effectiveness of ARO-ALK7 in adults with obesity, both with and without Type 2 Diabetes Mellitus (T2DM), highlighting its potential significance in addressing obesity-related health issues.

Arrowhead Pharmaceuticals Advances Phase 3 Study on Plozasiran for Severe Hypertriglyceridemia

Arrowhead Pharmaceuticals is conducting a Phase 3 clinical study titled ‘Double-Blind, Placebo-Controlled, Phase 3 Study to Evaluate the Efficacy and Safety of Plozasiran in Adults With Severe Hypertriglyceridemia at High Risk of Acute Pancreatitis (SHASTA-5 Study).’ The primary objective is to assess the efficacy and safety of plozasiran in reducing the risk of acute pancreatitis in adults with severe hypertriglyceridemia, a condition characterized by extremely high levels of triglycerides in the blood, which can lead to pancreatitis.

Arrowhead Pharmaceuticals Advances ARO-DM1 Study for Myotonic Dystrophy

Arrowhead Pharmaceuticals, Inc. is conducting a study titled ‘A Phase 1/2a Dose-Escalating Study to Evaluate the Safety, Tolerability, Pharmacokinetics, and Pharmacodynamics of ARO-DM1 in Subjects With Type 1 Myotonic Dystrophy Who Are ≥18 to ≤ 65 Years.’ The study aims to assess the safety and effectiveness of ARO-DM1, a potential treatment for Type 1 Myotonic Dystrophy, a genetic disorder affecting muscle function.

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.