Arrowhead Pharmaceuticals (ARWR) AI Stock Analysis

• Market Cap: $2.95B
• Dividend Yield: N/A
• Average Volume (3M): 2.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.32
• 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: 2,980,751
• 30 Day Avg. Volume: 2,392,407
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 3.36
• Enterprise Value/Gross Profit: 3.48
• Enterprise Value/Ebitda: -28.85
• 1Y Price Target: $35.44
• Price Target Upside: 67.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 54 Neutral
• Price Target: $20.50 ▼(-3.21% Downside)

Arrowhead Pharmaceuticals' overall stock score is primarily influenced by its challenging financial performance, characterized by negative profitability and cash flow metrics. Despite these challenges, the stock's technical indicators show positive momentum, which partially offsets the financial concerns. Valuation remains a concern due to ongoing losses and lack of dividends. The earnings call provided a cautiously optimistic outlook, but it was not factored into the score due to the methodology.

Positive Factors

Commercial Launch

The commercial launch potential of plozasiran is reinforced by full enrollment across three global Phase 3 severe hypertriglyceridemia (sHTG) trials completed ahead of schedule.

Market Access

Market access efforts have already reached payers representing over 85% of U.S. covered lives, with encouraging feedback suggesting likely coverage for patients.

Milestone Payment

ARWR announced receipt of a $100mm milestone payment from SRPT, triggered by completion of one of two pre-specified enrollment targets and dose-escalation authorization in the Ph1/2 of ARO-DM1 for DM1.

Negative Factors

Market Competition

SHTG is a substantially larger market opportunity compared to FCS, which indicates a significant potential for growth.

Price Target

The price target for ARWR has been reduced to $21 from $22.

Share Sale

SRPT sold its remaining ARWR shares in a separate negotiated block trade, with all future milestone payments still payable in cash.

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 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	-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

• Technical Analysis Sentiment: Positive
• Last Price: 21.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 21.18 is above the 20-day moving average (MA) of 18.37, above the 50-day MA of 17.29, and above the 200-day MA of 17.49, indicating a bullish trend. The MACD of 1.20 indicates Negative momentum. The RSI at 66.34 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 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	65 Neutral	$2.16B	3.37	64.05%	―	30.57%	―
IMCR	63 Neutral	$1.64B	―	-5.38%	―	26.90%	62.72%
KYMR	60 Neutral	$3.15B	―	-33.26%	―	-49.51%	-44.09%
ARWR	54 Neutral	$2.95B	―	-34.80%	―	2816.21%	73.33%
Sector *	51 Neutral	$7.81B	-0.15	-40.08%	2.29%	21.29%	-1.80%
IRON	43 Neutral	$2.07B	―	-26.36%	―	―	-22.19%
BEAM	41 Neutral	$1.68B	―	-41.94%	―	-82.90%	-155.64%

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.