Arrowhead Pharmaceuticals, Inc. (ARWR)
NASDAQ:ARWR
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Arrowhead Pharmaceuticals
(NASDAQ:ARWR)
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Rating:54Neutral
Price Target:
$74.00
▲(6.46% Upside)
Action:Downgraded
Date:05/09/26
The score is held back primarily by weak and volatile financial performance (recent losses, negative TTM cash flow, and higher leverage). This is partially offset by a constructive earnings-call outlook (early launch traction, multiple near-term catalysts, and strengthened liquidity) and supportive technical trends, while valuation remains challenged due to unprofitability and no dividend support.
Positive Factors
Pipeline Breadth & Innovation
A broad, diversified pipeline across multiple tissues and modalities (including first‑in‑human dual siRNA and proprietary CNS delivery) reduces single‑asset binary risk, creates multiple value-creation paths and supports durable long‑term growth and partnering opportunities.
Negative Factors
Volatile Financials & Cash Flow
Highly inconsistent revenue and cash generation, combined with elevated leverage, reduce financial resilience. Negative TTM operating cash flow and rising debt increase refinancing risk and constrain flexibility to sustain expensive R&D or weather negative trial outcomes.
Read all positive and negative factors
Positive Factors
Negative Factors
Pipeline Breadth & Innovation
A broad, diversified pipeline across multiple tissues and modalities (including first‑in‑human dual siRNA and proprietary CNS delivery) reduces single‑asset binary risk, creates multiple value-creation paths and supports durable long‑term growth and partnering opportunities.
Read all positive factors
Arrowhead Pharmaceuticals (ARWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.13B
Dividend YieldN/A
Average Volume (3M)1.84M
Price to Earnings (P/E)―
Beta (1Y)2.31
Revenue Growth14.09%
EPS Growth-58.14%
CountryUS
Employees609
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.14
Shares Outstanding140,857,030
10 Day Avg. Volume1,678,850
30 Day Avg. Volume1,839,775
Financial Highlights & Ratios
PEG Ratio28.35
Price to Book (P/B)9.90
Price to Sales (P/S)5.56
P/FCF Ratio29.41
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue19.81
Enterprise Value/Gross Profit19.81
Enterprise Value/Ebitda-91.62
Forecast
1Y Price Target
$89.25Price Target Upside28.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)-3.08
Revenue Forecast (FY)$463.30M
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 tr...
How the Company Makes Money
Arrowhead primarily makes money through (1) collaboration and licensing arrangements and (2) potential future product sales if any of its drug candidates are approved. Under collaboration/licensing deals, Arrowhead can receive upfront payments, re...
Arrowhead Pharmaceuticals Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a constructive and growth-oriented tone: the REDEMPLO launch is exceeding early expectations with accelerating prescriptions, the company has a broad and innovative clinical pipeline with several near-term catalyst readouts, and a materially strengthened balance sheet provides capital flexibility. Counterbalancing this are the early-stage/commercial sales (net product sales ~ $1M), a quarterly net loss driven by elevated R&D/SG&A spend and dependence on upcoming pivotal readouts for label expansion and commercial scale. On balance, the positives (strong launch momentum, compelling efficacy data to date, global approvals, and significant funding) outweigh the near-term financial and clinical risks.Positive Updates
Strong REDEMPLO Launch Momentum
FDA-approved REDEMPLO launched in Nov 2025 and continues to accelerate: ~30 new prescriptions/week with >400 prescriptions written since launch; prescriptions grew nearly threefold from the start to the end of the fiscal quarter and >40% growth over the most recent 4-week period. Patient mix: ~85% APOC3-class naive; >10% of prescriptions are switches from a competitor.
Negative Updates
Current Revenue and Product Sales Are Limited
Total revenue for the quarter was $74M (primarily collaboration/license revenue); net product sales-derived estimate ~ $1M for the quarter — first full quarter of REDEMPLO sales — indicating commercial sales are still nascent relative to expectations.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong REDEMPLO Launch Momentum
FDA-approved REDEMPLO launched in Nov 2025 and continues to accelerate: ~30 new prescriptions/week with >400 prescriptions written since launch; prescriptions grew nearly threefold from the start to the end of the fiscal quarter and >40% growth over the most recent 4-week period. Patient mix: ~85% APOC3-class naive; >10% of prescriptions are switches from a competitor.
Read all positive updates
Company Guidance
Arrowhead provided detailed near‑term guidance and timelines with many specific metrics: REDEMPLO (FDA approved 11/18/2025 for FCS, ~6,500 U.S. patients) has >400 prescriptions since launch (~30 new scripts/week), prescriptions grew nearly threefold over the quarter and >40% in the last 4 weeks, ~85% of scripts are APOC3‑naive and >10% are switchers; U.S. WAC was set at $45,000/year (down from $60,000), competitor pricing noted at $40,000; regulatory approvals secured in Australia, China and Canada and a CHMP positive opinion with an EMA decision expected June–July and launches planned later in 2026 (Canada, select EU/U.K.; China to be marketed by Sanofi). Key clinical milestones: pooled SHASTA‑3/SHASTA‑4 (>750 patients) and MUIR‑3 (>1,400 patients) are on track for top‑line readouts in Q3 2026 to support an sNDA before year‑end and a potential approval in H2 2027; 2‑year open‑label plozasiran data showed median TG reductions of 83% (SHTG) and 67% (HTG), 96% of SHTG patients <500 mg/dL and 63% <150 mg/dL, with no adjudicated acute pancreatitis events; ARO‑DIMER‑PA (Phase I/II up to 78 subjects) first readout expected Q3 2026; ARO‑MAPT (Phase I/II up to 64 healthy + up to 48 AD patients) initial data expected end‑Q3/early‑Q4 2026; ARO‑INHBE and ARO‑ALK7 updates planned in H2 2026; YOSEMITE (zodasiran ~60 HoFH patients) on track for full enrollment in 2026 and potential NDA filings by end‑2027. Financial/portfolio metrics: Q2 FY2026 net loss $132.7M, loss per share $0.93 on 142.4M diluted avg shares, revenue $74M (≈$42M Sarepta, $20M Novartis recognized, YTD Novartis recognition $54M), operating expenses ≈$215M (R&D +$40M YOY, SG&A +$13M YOY), cash & investments ≈$1.8B as of 3/31/2026, common shares outstanding 140.6M, completed concurrent financings of $700M 0% convertible notes and $230M common stock (net ≈$850M in the quarter), and a license to Madrigal for ARO‑PNPLA3 with $25M upfront, up to $975M in milestones and tiered mid‑teens royalties.Arrowhead Pharmaceuticals Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
41
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 622.01M | 829.45M | 3.55M | 240.74M | 243.23M | 138.29M |
| Gross Profit | 622.01M | 829.45M | -15.04M | 228.24M | 232.81M | 0.00 |
| EBITDA | -134.47M | 164.82M | -561.51M | -175.67M | -162.29M | -132.58M |
| Net Income | -300.91M | -1.63M | -599.49M | -205.28M | -176.06M | -140.85M |
Balance Sheet | ||||||
| Total Assets | 2.27B | 1.39B | 1.14B | 765.55M | 691.94M | 710.15M |
| Cash, Cash Equivalents and Short-Term Investments | 1.78B | 919.37M | 680.96M | 403.63M | 376.40M | 367.79M |
| Total Debt | 1.37B | 366.28M | 851.91M | 383.50M | 81.58M | 25.55M |
| Total Liabilities | 1.67B | 881.88M | 948.74M | 478.39M | 273.60M | 301.33M |
| Stockholders Equity | 613.98M | 466.05M | 185.44M | 271.34M | 398.52M | 408.82M |
Cash Flow | ||||||
| Free Cash Flow | -50.87M | 156.89M | -604.32M | -330.63M | -188.91M | 147.75M |
| Operating Cash Flow | -36.31M | 179.55M | -462.85M | -153.89M | -136.13M | 171.31M |
| Investing Cash Flow | -704.01M | -129.29M | -420.07M | -96.16M | -5.42M | -141.68M |
| Financing Cash Flow | 741.96M | 74.01M | 870.52M | 253.05M | 65.19M | 11.30M |
Arrowhead Pharmaceuticals Technical Analysis
Positive
69.51
Price Trends
69.44
Positive
66.83
Positive
54.04
Positive
Market Momentum
2.10
Positive
58.86
Neutral
77.87
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 69.51 is below the 20-day moving average (MA) of 76.59, above the 50-day MA of 69.44, and above the 200-day MA of 54.04, indicating a bullish trend. The MACD of 2.10 indicates Positive momentum. The RSI at 58.86 is Neutral, neither overbought nor oversold. The STOCH value of 77.87 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $9.04B | 40.39 | 19.25% | ― | 25.15% | 79.56% | |
67 Neutral | $3.63B | 9.82 | 35.65% | ― | 9.93% | 61.40% | |
64 Neutral | $6.35B | 43.46 | 8.82% | ― | 3.21% | -56.86% | |
54 Neutral | $11.13B | -37.41 | -55.45% | ― | 14.09% | -58.14% | |
53 Neutral | $7.37B | -7.53 | -32.51% | ― | ― | -71.33% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ARWR
Arrowhead Pharmaceuticals
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369.98%
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Arrowhead Pharmaceuticals Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Arrowhead Shareholders Reject Say-on-Pay at 2026 Meeting
Negative
Mar 20, 2026
At its 2026 Annual Meeting of Stockholders on March 19, 2026, Arrowhead Pharmaceuticals shareholders voted on the election of seven directors, executive compensation, an amended and restated 2021 incentive plan, and the ratification of KPMG LLP as...
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.