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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ARWR

Arrowhead Pharmaceuticals' recent performance was driven by strong execution across its business, with the company transitioning from a 'show-me' pipeline to commercial stage following the approval of plozasiran in FCS. The company's robust RNAi platform and late-stage cardiometabolic franchise have garnered a consensus "Moderate Buy" rating from analysts, with six assigning a buy rating and one a strong buy rating. Additionally, long-term efficacy and safety data for plozasiran presented at the American College of Cardiology's annual session showcased its potential as a therapeutic solution for hypertriglyceridemia.

1.c. Company Highlights

2. Arrowhead Pharmaceuticals' Q1 2026 Earnings: A Strong Start to the Year

Arrowhead Pharmaceuticals reported a net income of $30.8 million or $0.22 per share for Q4 2025, compared to a net loss of $173.1 million or $1.39 per share in Q4 2024. Revenue totaled $264 million, driven by license and collaboration agreements with Sarepta and Novartis, with $229 million from the Sarepta collaboration, including a $181 million milestone payment. However, the company's EPS fell short of estimates, which were at $0.6. Expenses increased by $59 million year-over-year, driven by higher R&D and SG&A expenses.

Publication Date: Feb -08

📋 Highlights
  • REDEMPLO Launch Success:: FDA-approved for FCS, with 100+ prescriptions in US, showing geographically balanced uptake and median 80% triglyceride reduction in Phase III trials.
  • Financial Milestones Achieved:: $1.33B in gross proceeds, including $200M upfront from Novartis and $200M milestone from Sarepta, boosting cash reserves to $917M.
  • Strong Q4 2025 Financials:: Net income of $30.8M ($0.22/share) vs. $173.1M loss in Q4 2024, driven by $264M revenue from collaborations.
  • Expanding Cardiometabolic Pipeline:: 3 clinical programs (ARO-INHBE, ARO-ALK7, ARO-DIMER-PA) with ARO-INHBE showing enhanced weight loss vs. tirzepatide in obesity trials.

Commercial Performance of REDEMPLO

The company has seen encouraging early trends in the commercial sales of REDEMPLO, with over 100 prescriptions received to date, and a geographically balanced uptake. The majority of patients are APOC3 naive, with a fairly even split between patients transitioning off the expanded access program and those coming via switch. The company expects a significant proportion of prescriptions to translate into drug shipments within a couple of weeks.

Pipeline Updates and Future Prospects

Arrowhead's cardiometabolic pipeline is progressing well, with the ongoing Phase III study of zodasiran in HoFH and three clinical programs: ARO-INHBE, ARO-ALK7, and ARO-DIMER-PA. Interim clinical data from ARO-INHBE showed enhanced weight loss and fat reduction versus tirzepatide alone in obese patients with type 2 diabetes. The company expects several key events in 2026, including readout of Phase III studies for plozasiran in SHTG and data from ARO-INHBE and ARO-ALK7 programs.

Valuation and Growth Prospects

With a P/E Ratio of 44.67 and an EV/EBITDA of 25.72, the company's valuation appears to be pricing in significant growth prospects. Analysts estimate next year's revenue growth at -32.1%, indicating a potential decline. However, the company's strengthened balance sheet, with sufficient resources to push multiple programs toward commercialization, is expected to drive revenue growth and cash flow positivity. The company's ROIC of 20.84% and ROE of 36.12% indicate a strong return on investment.

Cash Position and Funding

Arrowhead's cash and investments totaled $917 million as of December 31, 2025. The company recently raised additional funds through a convertible senior notes offering and common stock sale, strengthening its balance sheet and providing sufficient resources to push multiple programs toward commercialization.

3. NewsRoom

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Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Apr -06

Source: defenseworld.net

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Arrowhead Pharmaceuticals Presents New Long-Term Efficacy and Safety Data for Plozasiran Across a Spectrum of Hypertriglyceridemia at the American College of Cardiology's 75th Annual Scientific Session and Expo

Mar -28

Source: businesswire.com

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Arrowhead Pharmaceuticals: Transition Phase With Moderate Upside Ahead

Mar -26

Source: seekingalpha.com

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Arrowhead Pharmaceuticals Teases Q3 Data Wave: SHASTA-3/4, RNAi Dimer and ARO-MAPT Readouts Ahead

Mar -10

Source: defenseworld.net

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Arrowhead Pharmaceuticals, Inc. $ARWR Shares Sold by Citigroup Inc.

Mar -09

Source: defenseworld.net

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GSK Strikes $1 Billion China RNA Deal

Feb -24

Source: gurufocus.com

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Arrowhead Pharmaceuticals to Participate in Upcoming March 2026 Events

Feb -24

Source: businesswire.com

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China Universal Asset Management Co. Ltd. Acquires 14,497 Shares of Arrowhead Pharmaceuticals, Inc. $ARWR

Feb -21

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.80%)

6. Segments

Innovative Drugs

Expected Growth: 11.8%

Arrowhead Pharmaceuticals' 11.8% growth in Innovative Drugs is driven by increasing adoption of RNA interference (RNAi) therapies, strong pipeline of candidates in Phase 2 and 3 trials, and strategic partnerships with pharma giants. Growing demand for targeted and personalized treatments, expanding indications for existing drugs, and favorable regulatory environment also contribute to the segment's growth.

7. Detailed Products

RNAi Therapeutics

Arrowhead's RNAi therapeutics are designed to silence specific genes that cause disease, with the goal of treating a wide range of diseases, including genetic disorders, infectious diseases, and cancer.

TRiM Platform

TRiM (Targeted RNAi Molecule) is a proprietary platform that enables the discovery and development of RNAi therapeutics that can be administered systemically, with the goal of treating a wide range of diseases.

Dynamic Polyconjugates (DPCs)

DPCs are a type of RNAi delivery vehicle that enables the targeted delivery of RNAi therapeutics to specific cells and tissues, with the goal of treating a wide range of diseases.

Cardiovascular Disease Therapeutics

Arrowhead is developing RNAi therapeutics to treat cardiovascular diseases, including hypertriglyceridemia and familial chylomicronemia.

Liver Disease Therapeutics

Arrowhead is developing RNAi therapeutics to treat liver diseases, including hepatitis B and alpha-1 antitrypsin deficiency.

Cancer Therapeutics

Arrowhead is developing RNAi therapeutics to treat various types of cancer, including liver cancer and triple-negative breast cancer.

8. Arrowhead Pharmaceuticals, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Arrowhead Pharmaceuticals, Inc. has a moderate threat of substitutes due to the presence of alternative treatments and therapies for the diseases it targets.

Bargaining Power Of Customers

Arrowhead Pharmaceuticals, Inc. has a low bargaining power of customers due to the lack of negotiating power of individual patients and the high demand for its products.

Bargaining Power Of Suppliers

Arrowhead Pharmaceuticals, Inc. has a moderate bargaining power of suppliers due to the presence of multiple suppliers for raw materials and equipment.

Threat Of New Entrants

Arrowhead Pharmaceuticals, Inc. has a high threat of new entrants due to the growing demand for RNAi-based therapies and the increasing interest in gene editing technologies.

Intensity Of Rivalry

Arrowhead Pharmaceuticals, Inc. operates in a highly competitive industry with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.80%
Debt Cost 7.84%
Equity Weight 70.20%
Equity Cost 7.84%
WACC 7.84%
Leverage 42.44%

11. Quality Control: Arrowhead Pharmaceuticals, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ACADIA Pharmaceuticals

A-Score: 5.6/10

Value: 2.1

Growth: 9.0

Quality: 9.1

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Arrowhead Pharmaceuticals

A-Score: 4.8/10

Value: 6.0

Growth: 8.6

Quality: 3.3

Yield: 0.0

Momentum: 9.0

Volatility: 2.0

1-Year Total Return ->

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Axsome Therapeutics

A-Score: 4.8/10

Value: 6.0

Growth: 4.2

Quality: 3.8

Yield: 0.0

Momentum: 9.5

Volatility: 5.3

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TG Therapeutics

A-Score: 4.2/10

Value: 2.0

Growth: 8.1

Quality: 7.7

Yield: 0.0

Momentum: 4.5

Volatility: 3.0

1-Year Total Return ->

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Ultragenyx Pharmaceutical

A-Score: 3.3/10

Value: 6.4

Growth: 4.7

Quality: 3.8

Yield: 0.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

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Intellia Therapeutics

A-Score: 3.0/10

Value: 7.3

Growth: 2.8

Quality: 4.6

Yield: 0.0

Momentum: 2.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

69.51$

Current Price

69.51$

Potential

-0.00%

Expected Cash-Flows