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Arrowhead Pharmaceuticals
(NASDAQ:ARWR)
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Rating:58Neutral
Price Target:
$93.00
▲(8.64% Upside)
Action:Reiterated
Date:08/05/26
The score is held back primarily by weak financial performance (ongoing losses, negative TTM cash flow, and still-meaningful leverage). Offsetting this, technicals are strong with clear upward trend signals, and the latest earnings call was notably positive due to compelling Phase III results and regulatory/commercial momentum, though near-term spending and cash commitments remain key risks.
Positive Factors
Pivotal Phase III efficacy
Durable clinical differentiation from two positive pivotal trials materially de-risks regulatory and reimbursement paths. Deep, consistent triglyceride reductions and major acute pancreatitis event reductions support long-term therapeutic value, stronger payer negotiations, and sustained market positioning versus incremental competitors.
Negative Factors
Persisting unprofitability
Sustained large operating losses constrain return generation and increase dependency on external capital or collaboration receipts. Continued negative profitability over the medium term limits reinvestment capacity, magnifies dilution or debt risk if cash burn persists, and pressures long‑term ROE.
Read all positive and negative factors
Positive Factors
Negative Factors
Pivotal Phase III efficacy
Durable clinical differentiation from two positive pivotal trials materially de-risks regulatory and reimbursement paths. Deep, consistent triglyceride reductions and major acute pancreatitis event reductions support long-term therapeutic value, stronger payer negotiations, and sustained market positioning versus incremental competitors.
Read all positive factors
Arrowhead Pharmaceuticals (ARWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.92B
Dividend YieldN/A
Average Volume (3M)2.75M
Price to Earnings (P/E)―
Beta (1Y)2.29
Revenue Growth14.09%
EPS Growth-58.14%
CountryUS
Employees711
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.24
Shares Outstanding140,857,030
10 Day Avg. Volume2,765,247
30 Day Avg. Volume2,752,924
Financial Highlights & Ratios
PEG Ratio28.34
Price to Book (P/B)9.90
Price to Sales (P/S)5.56
P/FCF Ratio29.41
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$103.51Price Target Upside20.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)-3.19
Revenue Forecast (FY)$459.46M
Arrowhead Pharmaceuticals Business Overview & Revenue Model
Company Description
Arrowhead Pharmaceuticals, Inc., founded in 1989 and based in Pasadena, California, is a biopharmaceutical company dedicated to discovering and advancing innovative treatments for complex and challenging-to-treat diseases within the United States....
How the Company Makes Money
Arrowhead primarily generates revenue through (1) collaboration and licensing arrangements and (2) to a lesser extent, other operating revenue tied to partnered development activities; the company has historically not relied on product sales as it...
Arrowhead Pharmaceuticals Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 30, 2026
Earnings Call Sentiment Positive
The call was decidedly positive on clinical and strategic fronts: landmark Phase III SHASTA-3/4 results (deep TG reductions and major reductions in acute pancreatitis), broad regulatory approvals, accelerating commercial traction in FCS, strong partnership revenue and a robust pipeline with multiple near-term data catalysts. Offsetting items include increased net losses and higher operating spend as Arrowhead scales R&D and commercial infrastructure, a sizable near-term cash payment for a priority review voucher ($215M), and the fact that commercial product revenues remain small today. Overall, management portrayed the financial investments as deliberate and tied to significant near-term derisking and value-creation events.Positive Updates
Positive Phase III SHASTA-3 and SHASTA-4 Results
Both pivotal trials met the primary endpoint and every prespecified secondary endpoint. Median triglyceride reductions from baseline were 79% (SHASTA-3) and 81% (SHASTA-4) at month 12, demonstrating deep, durable and consistent TG lowering across studies.
Negative Updates
Widening Net Loss
Net loss for the quarter was $194.3 million (loss of $1.36 per share) versus $175.2 million (loss of $1.26 per share) in the prior-year quarter, an increase of ~$19.1 million (approximately +10.9%).
Read all updates
Q3-2026 Updates
Positive
Negative
Positive Phase III SHASTA-3 and SHASTA-4 Results
Both pivotal trials met the primary endpoint and every prespecified secondary endpoint. Median triglyceride reductions from baseline were 79% (SHASTA-3) and 81% (SHASTA-4) at month 12, demonstrating deep, durable and consistent TG lowering across studies.
Read all positive updates
Company Guidance
The call guided toward rapid regulatory and commercial progress: Arrowhead expects to file an sNDA for plozasiran before the end of 2026 and will use a purchased priority review voucher (closing in FY‑Q4 for $215M) to shorten U.S. review from ~10 to 6 months (a ~4‑month acceleration the company projects would deliver >3x return on the PRV investment), with a potential accelerated sHTG launch in Q2 2027 and payer engagement/reimbursement rollout across Europe over ~12 months beginning with Germany. Key clinical metrics cited: SHASTA‑3/4 met all endpoints with median TG reductions of 79% and 81% versus ~27% for placebo, a 78% reduction in cumulative acute pancreatitis events overall and 100% reduction in the highest‑risk subgroup (TG>880 mg/dL with prior AP); MRI‑PDFF showed no statistically significant increase in liver fat. Near‑term data and milestones include ESC presentation Aug 30 (SHASTA detailed results), ARO‑DIMER‑PA and ARO‑MAPT Phase I readouts in September, ARO‑INHBE/ALK7 updates in Q4, and Zodasiran (YOSEMITE) fully enrolled at 70 HoFH patients with data expected H2 2027 and an NDA target by end of 2027. Commercial and financial metrics: REDEMPLO WAC $45,000/year, approvals in 5 geographies (U.S., EU, Canada, China, Australia), >400 unique prescribers supported, prescription volume >2x QoQ and a ~20–30 new‑Rx/week run rate, commercial revenue ~$2.4M this quarter (vs ~$1M prior), company cash/investments ~$1.6B, Q3 net loss $194.3M ($1.36/sh), revenue $75M, operating expense $245M (R&D ~$198M, SG&A ~$47M), ~141.1M shares outstanding, and a pipeline of 23 clinical candidates by year‑end (11 wholly owned, 12 partnered).Arrowhead Pharmaceuticals Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
40
Negative
Cash Flow
45
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 669.50M | 829.45M | 3.55M | 240.74M | 243.23M | 138.29M |
| Gross Profit | 669.50M | 829.45M | -15.04M | 228.24M | 232.81M | 138.29M |
| EBITDA | -140.33M | 164.82M | -561.51M | -175.67M | -162.29M | -132.58M |
| Net Income | -319.95M | -1.63M | -599.49M | -205.28M | -176.06M | -140.85M |
Balance Sheet | ||||||
| Total Assets | 2.11B | 1.39B | 1.14B | 765.55M | 691.94M | 710.15M |
| Cash, Cash Equivalents and Short-Term Investments | 1.60B | 919.37M | 680.96M | 403.63M | 376.40M | 367.79M |
| Total Debt | 864.07M | 366.28M | 851.91M | 383.50M | 81.58M | 25.55M |
| Total Liabilities | 1.65B | 881.88M | 948.74M | 478.39M | 273.60M | 301.33M |
| Stockholders Equity | 465.53M | 466.05M | 185.44M | 271.34M | 398.52M | 408.82M |
Cash Flow | ||||||
| Free Cash Flow | -75.11M | 156.89M | -604.32M | -330.63M | -188.91M | 147.75M |
| Operating Cash Flow | -59.05M | 179.55M | -462.85M | -153.89M | -136.13M | 171.31M |
| Investing Cash Flow | -801.72M | -129.29M | -420.07M | -96.16M | -5.42M | -141.68M |
| Financing Cash Flow | 784.19M | 74.01M | 870.52M | 253.05M | 65.19M | 11.30M |
Arrowhead Pharmaceuticals Technical Analysis
Positive
85.60
Price Trends
79.47
Positive
73.79
Positive
65.93
Positive
Market Momentum
2.49
Negative
57.73
Neutral
62.77
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 85.6 is above the 20-day moving average (MA) of 81.16, above the 50-day MA of 79.47, and above the 200-day MA of 65.93, indicating a bullish trend. The MACD of 2.49 indicates Negative momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 62.77 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 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.43B | 11.60 | 35.65% | ― | 9.93% | 61.40% | |
76 Outperform | $10.06B | 44.02 | 19.25% | ― | 25.15% | 79.56% | |
58 Neutral | $11.92B | -39.56 | -60.53% | ― | 14.09% | -58.14% | |
56 Neutral | $8.22B | 121.56 | 3.72% | ― | 10.79% | -81.14% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $7.81B | -7.85 | -32.51% | ― | ― | -71.33% |
* Healthcare Sector Average
ARWR
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Arrowhead Pharmaceuticals Corporate Events
Business Operations and StrategyExecutive/Board Changes
Arrowhead Pharmaceuticals Adds Experienced Healthcare Investor to Board
Positive
Jun 16, 2026
On June 12, 2026, Arrowhead Pharmaceuticals appointed Dr. Matt Cohen, M.D., M.B.A., as a director, adding a board member with more than 25 years of experience in healthcare investing and portfolio management. Cohen, now Managing Director at Vida V...
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.