Arrowhead Pharma stock gets Buy rating reaffirmed by H.C. Wainwright

Published 03/09/2025, 12:38
Arrowhead Pharma stock gets Buy rating reaffirmed by H.C. Wainwright

Investing.com - H.C. Wainwright has reiterated its Buy rating and $80.00 price target on Arrowhead Pharmaceuticals (NASDAQ:ARWR), which has seen its shares surge 17.85% in the past week to $25.68. According to InvestingPro data, the stock is trading near its 52-week high of $27.34, with analyst targets ranging from $17 to $80.

The reaffirmation follows two significant developments that H.C. Wainwright views as positive for Arrowhead. First, Ionis Pharmaceuticals reported promising top-line data on September 2 for its antisense oligonucleotide olezarsen in severe hypertriglyceridemia, showing an 85% reduction in acute pancreatitis events. The $3.55 billion market cap company maintains a strong financial position, with InvestingPro analysis showing a healthy current ratio of 4.87, indicating robust liquidity.

Separately, Arrowhead announced a global license and collaboration agreement with Novartis for ARO-SNCA, a preclinical siRNA candidate targeting α-synuclein, plus additional discovery targets. The deal includes $200 million upfront, potential milestone payments up to $2 billion, and tiered royalties reaching low double-digits.

H.C. Wainwright noted that the Ionis data strengthens the case for potent APOC3 inhibition ahead of Arrowhead’s anticipated plozasiran pivotal data and filings in severe hypertriglyceridemia, as well as its November 18, 2025, PDUFA date for familial chylomicronemia syndrome.

The firm also highlighted that the Novartis agreement provides "high-quality external validation of the TRiM-enabled CNS platform with meaningful non-dilutive capital" for Arrowhead Pharmaceuticals. With a projected revenue growth of 210% for FY2025 and an overall financial health score of "GOOD" according to InvestingPro, which offers 12 additional valuable insights about ARWR’s investment potential in its comprehensive Pro Research Report.

In other recent news, Arrowhead Pharmaceuticals reported a fiscal third-quarter 2025 net loss of $1.26 per share, which was below analysts’ expectations of a $0.86 loss per share. The company’s revenue also fell short, totaling $27.8 million compared to the projected $53.9 million. Additionally, Arrowhead announced a significant collaboration with Novartis, involving a $200 million upfront payment for a licensing agreement on its siRNA therapy targeting Parkinson’s Disease and other neurological conditions. This deal includes potential milestone payments up to $2 billion, along with royalties on commercial sales. In a separate development, Sarepta Therapeutics sold over 9.2 million shares of Arrowhead in a privately negotiated block trade, expecting to receive at least $174 million in gross proceeds. Arrowhead will receive $50 million worth of its own common stock from Sarepta as part of a milestone payment, with the remaining $50 million to be paid in cash. Leerink Partners has adjusted its price target for Arrowhead Pharmaceuticals to $21.00 from $22.00, while maintaining a Market Perform rating. This adjustment follows the company’s recent fiscal results and the $100 million milestone payment received from Sarepta for meeting enrollment targets in a clinical trial.

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