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Investing.com -- Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) saw its stock surge 7.4% after reporting second-quarter earnings that vastly exceeded analyst expectations. The biotechnology company posted adjusted earnings per share of $2.75, dramatically outperforming the consensus estimate of -$0.45 loss per share. Revenue also came in well above forecasts at $542.71 million, compared to analyst projections of $127.9 million.
The substantial revenue beat was primarily driven by the closing of a licensing and collaboration agreement with Sarepta Therapeutics (NASDAQ:SRPT), which brought in $825 million consisting of $500 million in cash and a $325 million equity investment. This deal has bolstered Arrowhead’s financial position, with the company now funded into 2028 according to management.
"Arrowhead is in a strong and stable position as a business, and we have made meaningful progress towards our long-term goal of developing and ultimately commercializing new innovative medicines for millions of patients," said Christopher Anzalone, Ph.D., President and CEO of Arrowhead.
The company is preparing for the potential launch of plozasiran, its treatment for familial chylomicronemia syndrome (FCS), pending regulatory approval. The FDA has set a PDUFA action date of November 18, 2025, for the drug.
Arrowhead’s research and development expenses increased to $133.1 million in Q2, up from $101.1 million YoY, reflecting ongoing investment in its pipeline. The company ended the quarter with $1.1 billion in total cash resources, providing a strong foundation for future growth and development efforts.
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