Arrowhead Pharmaceuticals (ARWR) AI Stock Analysis

• Market Cap: $9.00B
• Dividend Yield: N/A
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.46
• Revenue Growth: 23258.15%
• EPS Growth: 99.12%
• Country: US
• Employees: 609
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.11
• Shares Outstanding: 135,879,650
• 10 Day Avg. Volume: 3,699,552
• 30 Day Avg. Volume: 2,735,048
• PEG Ratio: 28.34
• Price to Book (P/B): 9.90
• Price to Sales (P/S): 5.56
• P/FCF Ratio: 29.41
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 4.66
• Enterprise Value/Gross Profit: 4.82
• Enterprise Value/Ebitda: -52.95
• 1Y Price Target: $76.50
• Price Target Upside: 19.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): -3.3
• Revenue Forecast (FY): $390.02M

• Rating: 62 Neutral
• Price Target: $69.00 ▲(8.08% Upside)

The score is driven by improving financial performance (positive EBITDA and cash flow with better leverage) and supportive earnings-call/corporate catalysts (FDA approval and large partnership-related payments). Offsetting factors are the still-unprofitable bottom line and limited valuation support (negative P/E/no dividend), with momentum constructive but not decisive.

Positive Factors

FDA approval / Commercial transition

Securing FDA approval for Rodemplo establishes Arrowhead as a commercial-stage biotech with its first marketed siRNA product. This creates a recurring product revenue opportunity in a defined rare-disease market, supports commercialization capabilities and patient support programs, and de-risks reliance solely on partner income.

Large partnership and milestone receipts

Material upfront and milestone payments materially boost near-term revenue visibility and fund R&D and commercialization. Strategic partnerships with sizeable contingent payments help underwrite development costs, accelerate programs, and provide non-dilutive funding that strengthens long-term execution capacity.

Improved cash flow and runway

A near-$1B cash position plus positive operating and free cash flow in 2025 materially improve financial flexibility. This funding runway supports late-stage trials, commercialization of Rodemplo, and strategic investments without immediate financing pressure, enhancing the company’s ability to execute multi-year development plans.

Negative Factors

Profitability inconsistency

Despite an EBITDA inflection, Arrowhead still reported a slight net loss and a history of wide earnings swings. Reliance on lumpy licensing revenue and one-time items makes sustained GAAP profitability uncertain, complicating forecasting and the ability to consistently generate shareholder returns over time.

Milestone-driven revenue concentration

Revenue depends heavily on partner-triggered milestones and licensing deals, which are inherently lumpy and timing-sensitive. This concentration reduces predictability of top-line growth and can create sharp year-over-year swings as milestone timing or partner program decisions change.

Development and regulatory timing risk

Outstanding regulatory questions and delayed trial timelines can limit label claims and postpone commercial uptake or new-indication expansion. Program timing uncertainty and unresolved FDA discussions create execution risk that can push revenue and value realization further into the future.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	596.57M	829.45M	3.55M	240.74M	243.23M	138.29M
Gross Profit	576.77M	0.00	3.55M	240.74M	243.23M	138.29M
EBITDA	-52.51M	98.35M	-561.51M	-175.67M	-162.29M	-132.58M
Net Income	-148.42M	-1.63M	-599.49M	-205.28M	-176.06M	-140.85M
Balance Sheet
Total Assets	1.38B	1.45B	1.14B	765.55M	691.94M	710.15M
Cash, Cash Equivalents and Short-Term Investments	900.37M	919.37M	680.96M	403.63M	376.40M	367.79M
Total Debt	713.29M	733.68M	851.91M	383.50M	81.58M	25.55M
Total Liabilities	860.81M	947.02M	948.74M	478.39M	273.60M	301.33M
Stockholders Equity	522.31M	466.05M	185.44M	271.34M	398.52M	408.82M
Cash Flow
Free Cash Flow	-17.62M	156.89M	-604.32M	-330.63M	-188.91M	147.66M
Operating Cash Flow	21.84M	179.55M	-462.85M	-153.89M	-136.13M	171.22M
Investing Cash Flow	-424.84M	-129.29M	-420.07M	-96.16M	-5.42M	-141.68M
Financing Cash Flow	459.43M	74.01M	870.52M	253.05M	65.19M	11.30M

Arrowhead Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 63.84
• 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 63.84 is below the 20-day moving average (MA) of 67.11, above the 50-day MA of 58.33, and above the 200-day MA of 30.73, indicating a neutral trend. The MACD of 1.35 indicates Positive momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 24.59 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	79 Outperform	$8.18B	42.75	19.66%	―	54.51%	275.94%
ALKS	78 Outperform	$5.15B	15.65	22.35%	―	1.08%	3.40%
ACAD	75 Outperform	$4.49B	16.72	34.95%	―	12.69%	100.80%
ARWR	62 Neutral	$9.00B	-950.00	-0.50%	―	23258.15%	99.12%
PCVX	52 Neutral	$6.29B	-9.47	-20.83%	―	―	-5.21%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ACLX	40 Underperform	$3.95B	-17.59	-47.18%	―	-76.96%	-425.41%

Arrowhead Pharmaceuticals Corporate Events

Arrowhead Pharmaceuticals Issues Zero-Coupon 2032 Convertible Notes

On January 12, 2026, Arrowhead Pharmaceuticals issued $700 million aggregate principal amount of 0.00% Convertible Senior Notes due 2032, including $75 million issued pursuant to the full exercise of the underwriters’ over-allotment option. The senior unsecured notes, which do not bear regular interest and mature on January 15, 2032, are convertible into Arrowhead common shares at an initial rate equivalent to a conversion price of about $87.07 per share, subject to customary adjustments and potential increases in certain make-whole scenarios, and include detailed provisions for redemption, repurchase upon fundamental changes, and events of default that govern creditor protections and the company’s capital structure. In connection with the notes offering, Arrowhead also entered into capped call transactions on January 7 and 8, 2026 with several financial institutions, spending approximately $47.9 million to economically hedge the conversion feature and reduce potential dilution to existing shareholders, with a cap price initially set at about $119.33 per share, thereby fine-tuning the balance between raising zero-coupon convertible financing and managing equity dilution risk.

The most recent analyst rating on (ARWR) stock is a Hold with a $68.00 price target. To see the full list of analyst forecasts on Arrowhead Pharmaceuticals stock, see the ARWR Stock Forecast page.

Arrowhead Pharmaceuticals Launches Major Equity and Notes Offerings

On January 7, 2026, Arrowhead Pharmaceuticals entered into agreements for concurrent public offerings of common stock, pre-funded warrants and 0.00% convertible senior notes due 2032, marking a significant capital raise to fund its growth plans. The equity offering comprised 3,100,776 shares of common stock at $64.50 per share, or pre-funded warrants in lieu of shares for up to 1,550,387 shares at $64.499 per warrant, with underwriters exercising in full a 30-day option on January 8, 2026 to purchase an additional 456,116 shares, bringing expected net proceeds to about $216.6 million ahead of an anticipated January 9, 2026 closing. In parallel, Arrowhead priced an upsized $625 million convertible notes offering, later expanded by underwriters’ full exercise of a $75 million over-allotment option on January 8, 2026, for expected net proceeds of approximately $681.3 million, with settlement targeted for January 12, 2026; the zero-coupon notes mature in 2032, carry an initial conversion price of about $87.07 per share, may be redeemed by Arrowhead from 2029 under certain share-price conditions, and are hedged via capped call transactions designed to limit dilution. The combined financings, made under an effective shelf registration and backed by major underwriters including J.P. Morgan and Jefferies, are intended to strengthen Arrowhead’s balance sheet and fund general corporate purposes such as R&D, clinical trials, commercialization activities and possible debt prepayment, potentially enhancing its financial flexibility and competitive positioning as it advances late-stage drug programs.

The most recent analyst rating on (ARWR) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on Arrowhead Pharmaceuticals stock, see the ARWR Stock Forecast page.

Arrowhead Reports Promising Interim Data for Obesity RNAi Trials

On January 6, 2026, Arrowhead Pharmaceuticals reported interim data from two ongoing Phase 1/2a trials of its investigational RNAi obesity candidates ARO-INHBE and ARO-ALK7, showing meaningful improvements in body composition and weight in obese participants, including those with type 2 diabetes. ARO-INHBE monotherapy produced dose-dependent reductions in serum Activin E and reduced visceral and liver fat while modestly increasing lean tissue, and in combination with tirzepatide in obese patients with type 2 diabetes, it roughly doubled weight loss (–9.4% vs. –4.8% at week 16) and tripled reductions in visceral, total, and liver fat versus tirzepatide alone. ARO-ALK7 emerged as the first RNAi drug to demonstrate adipocyte gene target silencing in humans, achieving up to 94% knockdown of ALK7 mRNA and a placebo-adjusted 14.1% visceral fat reduction after a single dose, suggesting the Activin E/ALK7 pathway could be harnessed to improve outcomes in obese patients, particularly those with diabetes who typically respond less well to incretin therapies. Both candidates were generally well tolerated, with mostly mild adverse events and no treatment-related serious safety signals to date, bolstering Arrowhead’s strategic push into obesity and broader cardiometabolic indications and reinforcing its positioning as a leading developer of RNAi-based therapies targeting both liver and adipose tissue.

The most recent analyst rating on (ARWR) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Arrowhead Pharmaceuticals stock, see the ARWR Stock Forecast page.

Arrowhead Pharmaceuticals’ REDEMPLO Approved by FDA

On November 18, 2025, Arrowhead Pharmaceuticals announced that the FDA approved REDEMPLO® (plozasiran) for reducing triglycerides in adults with familial chylomicronemia syndrome (FCS). This approval marks Arrowhead’s first FDA-approved medicine, utilizing their proprietary TRiMTM platform, and represents a significant milestone as the company transitions into a commercial stage. REDEMPLO is the first FDA-approved siRNA treatment for FCS, offering new hope for the estimated 6,500 U.S. patients with this rare disease. The approval is based on successful Phase 3 PALISADE study results, showing significant triglyceride reduction and lower acute pancreatitis incidence compared to placebo. Arrowhead is launching a patient support program, Rely On REDEMPLO, to assist patients throughout their treatment journey.

The most recent analyst rating on (ARWR) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Arrowhead Pharmaceuticals stock, see the ARWR Stock Forecast page.