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On Tuesday, Cantor Fitzgerald reaffirmed its Overweight rating on Arrowhead Pharma (NASDAQ:ARWR), with a focus on upcoming developments in the pharmaceutical industry that could impact the company’s prospects. The stock, currently trading at $13.97, has shown strong momentum with a 6.8% gain over the past week, though it remains well below its 52-week high of $30.41. Analysts at the firm have adjusted their financial model for Arrowhead Pharma to reflect recent industry events and the company’s guidance on its cash balance projections. InvestingPro data reveals the company’s challenging financial health, with short-term obligations exceeding liquid assets and a current ratio of 0.71.
Arrowhead Pharma’s stock rating remains positive in anticipation of competitor Ionis Pharmaceuticals (NASDAQ:IONS)’ (NC) Phase 3 trial results for olezarsen, a treatment for severe hypertriglyceridemia (SHTG), expected in the third quarter of 2025. These results are seen as a significant indicator for the potential success of Arrowhead’s own therapy, plozasiran, which is being developed for the same condition.
The updated model also takes into account transaction payments from a deal with Sarepta Therapeutics (NASDAQ:SRPT) (OW, covered by K. Kluska), which was finalized in February 2025. Furthermore, adjustments have been made to Arrowhead’s expense forecasts and cash burn rates. According to the company’s guidance, Arrowhead Pharma is on track to maintain a cash balance between $600 million and $650 million by the end of 2026. InvestingPro analysis indicates the company is quickly burning through cash, though analysts project significant revenue growth of 180.7% for the current fiscal year. Get access to the full financial health analysis and 6 additional ProTips with an InvestingPro subscription.
The analyst’s commentary highlighted the importance of the upcoming data from Ionis Pharmaceuticals, as it will provide valuable insights into the market dynamics and the potential impact on Arrowhead’s plozasiran. The adjustments made in the financial model reflect the analyst’s current expectations for Arrowhead’s financial performance and strategic position within the industry.
Arrowhead Pharma’s guidance on its financial health, particularly its cash balance forecast, has been factored into the updated model, providing investors with a clearer picture of the company’s anticipated financial trajectory over the next few years.
The reaffirmed Overweight rating by Cantor Fitzgerald signals continued confidence in Arrowhead Pharma’s stock amidst a dynamic competitive landscape. With a market capitalization of $1.76 billion, the company faces near-term profitability challenges, as highlighted by InvestingPro’s comprehensive analysis. The rating reflects the firm’s analysis of the company’s market position, upcoming industry catalysts, and financial projections. Discover detailed insights and access the full Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Arrowhead Pharmaceuticals reported a strong financial performance for the second quarter of fiscal year 2025, with net income reaching $370.4 million, or $2.75 per share, significantly exceeding the anticipated loss of $0.45 per share. The company’s revenue also surged to $542.7 million, driven by a lucrative license agreement with Sarepta, surpassing the forecasted $127.9 million. In a strategic move, Arrowhead announced the FDA’s acceptance of the New Drug Application for plozasiran, a treatment for familial chylomicronemia syndrome, with a target action date set for November 18, 2025. Citi analysts responded by reducing Arrowhead’s stock target to $17, maintaining a neutral rating, citing limited short-term potential despite these developments. The company also made headlines with its decision to pay down a portion of its credit facility, a move anticipated to be well-received by some investors. Additionally, Arrowhead is advancing its pipeline with over 15 assets in development, including Phase 3 trials for plozasiran aimed at expanding its label to include severe hypertriglyceridemia. The company is preparing for potential product launches in the coming years, with plans to enter the obesity and CNS markets, targeting diseases such as Alzheimer’s and Parkinson’s. Arrowhead’s robust pipeline and strategic partnerships indicate a promising trajectory, though regulatory hurdles and market competition remain key challenges.
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