Fed’s Powell opens door to potential rate cuts at Jackson Hole
On Monday, Citi reaffirmed a Neutral rating on Arrowhead Pharma (NASDAQ:ARWR), maintaining a price target of $27.00. The decision comes after Arrowhead Pharma announced the submission of a New Drug Application (NDA) to the FDA for plozasiran, aimed at treating familial chylomicronemia syndrome (FCS). The application is grounded on the Phase 3 PALISADE study results, which demonstrated consistent and positive effects in lowering overall triglyceride levels and reducing the risk of acute pancreatitis episodes in patients.
The analyst from Citi anticipates that the FDA will likely approve plozasiran for FCS, a condition currently lacking approved treatments. While recognizing the significant unmet medical need for FCS, the analyst also noted the rarity of the disease, suggesting a relatively modest market opportunity. Nevertheless, the potential approval of plozasiran could be a positive development for individuals suffering from this rare condition.
Arrowhead's research into plozasiran does not stop at FCS; the company is also exploring the drug's use for severe hypertriglyceridemia and mixed hyperlipidemia. These additional indications could substantially widen the drug's market reach, potentially enhancing Arrowhead Pharma's revenue prospects in the future.
The price target set by Citi reflects the current market conditions and the expected impact of the NDA submission on Arrowhead Pharma's stock performance. Investors and stakeholders in the pharmaceutical sector will be closely monitoring the FDA's response to the NDA and the subsequent effects on Arrowhead Pharma's business trajectory.
In other recent news, Arrowhead Pharmaceuticals (NASDAQ:ARWR) has submitted a New Drug Application to the FDA for plozasiran, a treatment for familial chylomicronemia syndrome. The application is based on successful Phase 3 trials and the drug has received Breakthrough Therapy Designation, Orphan Drug Designation, and Fast Track Designation by the FDA. The company plans to seek approval for plozasiran in other markets in 2025. Arrowhead reported a net loss of $170.8 million for its fiscal 2024 third-quarter, while cash and investments totaled $436.7 million.
To support its pipeline development, Arrowhead secured a $400 million loan from Sixth Street. In terms of analyst ratings, H.C. Wainwright and TD Cowen reiterated a Buy rating, while Goldman Sachs, Citi, and Piper Sandler maintained their Neutral, Neutral, and Overweight ratings respectively.
Arrowhead is also advancing its central nervous system-targeted RNA interference programs, with plans to commence the Phase 1 clinical development of ARO-ATXN2 in the first quarter of 2025. These are recent developments in Arrowhead's ongoing efforts to improve patient outcomes.
InvestingPro Insights
Recent InvestingPro data provides additional context to Arrowhead Pharma's (NASDAQ:ARWR) current situation. The company's market capitalization stands at $2.35 billion, reflecting its position in the biotech sector. However, Arrowhead's financial metrics reveal some challenges. The company reported a significant revenue decline of 92.33% in the last twelve months, with revenues of just $19.65 million. This aligns with one of the InvestingPro Tips, which notes that analysts anticipate a sales decline in the current year.
The company's profitability is also under pressure, with an operating income of -$547.21 million and a negative EBITDA of -$529.78 million. These figures support another InvestingPro Tip suggesting that analysts do not anticipate the company to be profitable this year. Despite these challenges, Arrowhead maintains a strong gross profit margin of 100%, indicating efficient management of direct production costs.
Investors should note that Arrowhead's stock has taken a significant hit recently, with a 15.48% decline in the past week and a 33.82% drop over the last year. This volatility may be attributed to the company's current financial performance and market expectations surrounding its drug development pipeline, including plozasiran.
For a more comprehensive analysis, InvestingPro offers 11 additional tips for Arrowhead Pharma, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.