Arrowhead Pharmaceuticals (ARWR) AI Stock Analysis

• Market Cap: $2.32B
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.39
• Revenue Growth: 1436.97%
• EPS Growth: 68.03%
• Country: US
• Employees: 609
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): 2.75
• Shares Outstanding: 138,100,430
• 10 Day Avg. Volume: 1,562,512
• 30 Day Avg. Volume: 1,513,240
• PEG Ratio: -0.19
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.70
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 6.25
• Enterprise Value/Gross Profit: -6.82
• Enterprise Value/Ebitda: -0.92
• 1Y Price Target: $41.44
• Price Target Upside: 146.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 54 Neutral
• Price Target: $16.50 ▼(-1.73%Downside)

Arrowhead Pharmaceuticals' overall stock score is primarily influenced by its financial challenges and valuation concerns. However, positive outlooks from recent earnings and corporate developments provide some upside potential. The company must navigate regulatory and market challenges to realize its long-term ambitions.

Positive Factors

Financial Performance

Arrowhead is well-capitalized with $1.1B in cash, funded into 2028, and started to pay down the $400mm term loan with cash inflows from the collaboration.

Product Launch

The upcoming launch of plozasiran is expected to pave the way for entry into the larger SHTG market, which has significant potential sales.

Strategic Partnerships

Arrowhead reported significant revenues from its blockbuster licensing agreement with Sarepta.

Negative Factors

Approval Risks

The plozasiran new drug application (NDA) remains under FDA review in familial chylomicronemia syndrome (FCS) with a PDUFA date of November 18, 2025.

Market Limitations

There is a low ceiling for shares in the short term due to limited upside for the FCS launch.

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 collaborations and partnerships with larger pharmaceutical companies. These partnerships often involve milestone payments, licensing fees, and potential royalties on sales of developed drugs. For instance, Arrowhead has entered into significant agreements with companies like Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson, and Amgen. These collaborations typically involve co-development of RNAi therapies, allowing Arrowhead to leverage its TRiM platform while benefiting from the expertise and resources of its partners. Additionally, Arrowhead may receive research funding and upfront payments as part of these agreements. The company's focus on developing novel therapeutics for unmet medical needs also positions it to benefit from long-term revenue streams once its therapies reach commercialization stages.

Arrowhead Pharmaceuticals Financial Statement Overview

Summary

Arrowhead Pharmaceuticals faces significant financial challenges with negative profitability and cash flow metrics. The company has a challenging income statement profile, a mixed balance sheet, and negative operating and free cash flows. Despite having some asset stability, the increasing leverage and dependence on external financing highlight the need for strategic improvements.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	250.00M	355.10M	240.74M	243.23M	138.29M	87.99M
Gross Profit	-282.81M	355.10M	240.74M	232.81M	138.29M	87.99M
EBITDA	-580.69M	-561.51M	-175.67M	-162.29M	-132.58M	-87.22M
Net Income	-639.71M	-599.49M	-205.28M	-176.49M	-140.85M	-84.55M
Balance Sheet
Total Assets	1.01B	1.14B	765.55M	691.94M	710.15M	522.50M
Cash, Cash Equivalents and Short-Term Investments	552.93M	680.96M	403.63M	376.40M	367.79M	315.49M
Total Debt	525.27M	510.55M	115.17M	81.58M	25.55M	21.14M
Total Liabilities	957.62M	948.74M	478.39M	585.98M	301.33M	60.72M
Stockholders Equity	52.59M	185.44M	271.34M	105.96M	408.82M	461.78M
Cash Flow
Free Cash Flow	-571.61M	-604.32M	-330.63M	-188.91M	147.66M	-107.34M
Operating Cash Flow	-491.28M	-462.85M	-153.89M	-136.13M	171.22M	-95.39M
Investing Cash Flow	-408.00M	-420.07M	-96.16M	-5.42M	-141.68M	-240.78M
Financing Cash Flow	890.89M	870.52M	253.05M	65.19M	11.30M	257.95M

Arrowhead Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 16.79 is above the 20-day moving average (MA) of 16.13, above the 50-day MA of 15.29, and below the 200-day MA of 17.85, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 60.12 is Neutral, neither overbought nor oversold. The STOCH value of 80.18 is Negative, 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
AGIO	62 Neutral	$2.09B	3.20	60.26%	―	25.96%	―
KYMR	60 Neutral	$3.14B	―	-32.17%	―	-25.85%	-23.89%
IMCR	58 Neutral	$1.66B	―	-5.78%	―	25.50%	64.63%
ARWR	54 Neutral	$2.32B	―	-24.67%	―	1436.97%	68.03%
BEAM	52 Neutral	$2.01B	―	-38.04%	―	-82.38%	-164.76%
Sector *	52 Neutral	$7.53B	0.32	-61.76%	2.28%	16.60%	1.56%
IRON	43 Neutral	$1.90B	―	-23.34%	―	―	-14.19%

Arrowhead Pharmaceuticals Corporate Events

Arrowhead Pharmaceuticals Announces New CFO Appointment

Arrowhead Pharmaceuticals announced the retirement of its Chief Financial Officer, Ken Myszkowski, effective May 13, 2025, after 16 years of service. He will continue as an employee adviser until January 31, 2026, to ensure a smooth transition. Daniel Apel, formerly of Walgreens Boots Alliance and Bayer, will succeed Myszkowski as CFO. Apel’s appointment comes as Arrowhead transitions from a development stage to a commercial stage, with plans to launch plozasiran pending regulatory approval. This leadership change is expected to support Arrowhead’s ambitious development and commercialization plans.