Arrowhead appoints Douglas Ingram as new director

Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR), currently valued at $2.6 billion and showing a -35% return over the past year, announced on Thursday the appointment of Douglas Ingram as a director, effective immediately.

According to InvestingPro analysis, the company maintains strong liquidity despite recent market challenges. Ingram’s addition to the board is in line with the Investor Rights Agreement with Sarepta Therapeutics (NASDAQ:SRPT), Inc., dated November 25, 2024.

Ingram brings extensive experience in the biopharmaceutical sector, currently serving as President and CEO of Sarepta since June 2017. His background includes leadership roles at Chase Pharmaceuticals Corporation and Allergan (NYSE:AGN), Inc., where he held the position of President among other roles.

As part of his appointment, Ingram will receive the standard compensation and equity awards for non-employee directors at Arrowhead. Additionally, he has been granted restricted stock units valued at $771,200, set to vest over a three-year period. The company maintains a healthy current ratio of 6.74, indicating strong short-term financial stability despite operating with moderate debt levels.

The appointment follows the conclusion of a collaboration between Arrowhead and Sarepta, which involves the co-development and commercialization of several clinical and preclinical programs. As a result of this collaboration and the recent private placement of Arrowhead common stock to an affiliate of Sarepta, Ingram is not considered an independent director under Nasdaq Listing Rules.

This board change is part of a strategic partnership that could influence Arrowhead’s future trajectory in the pharmaceutical industry. The information is based on a recent SEC filing by Arrowhead Pharmaceuticals.

With earnings scheduled for February 10, 2025, investors can access comprehensive analysis and additional insights through InvestingPro’s detailed research reports, which cover over 1,400 US stocks including ARWR’s complete financial health assessment.

In other recent news, Sarepta Therapeutics has entered into a significant partnership with Arrowhead Pharmaceuticals, a development that has sparked discussions among investors.

BMO Capital Markets maintained an Outperform rating on Sarepta’s stock, anticipating potential clinical data announcements at the upcoming JPMorgan Healthcare Conference. The partnership is expected to bring attention to Sarepta’s ARO-DM1 program, which analysts believe has a high probability of demonstrating superior safety and efficacy compared to its competitors.

On the other hand, Arrowhead Pharmaceuticals also received a Buy rating from B.Riley analysts, emphasizing the company’s dominance in the siRNA therapeutics market. The firm’s analysts pointed out the company’s advancements and recent balance sheet improvements, extending the cash runway to 2028. Arrowhead’s leading program, APOC3 targeting siRNA plozasiran, is currently under regulatory review, and its approval could indicate a favorable outcome for plozasiran.

Moreover, H.C. Wainwright showed confidence in Arrowhead, raising the stock’s price target and maintaining a Buy rating. This optimism is driven by Arrowhead’s recent global license and collaboration agreement with Sarepta Therapeutics, which is expected to support Arrowhead’s financial and developmental goals. Arrowhead is poised to receive a substantial upfront payment and an additional amount through a common stock purchase once the deal closes.

However, Bernstein SocGen Group lowered its price target for Arrowhead Pharma while maintaining a Market Perform rating. The adjustment follows Arrowhead’s fourth fiscal quarter update, which highlighted a significant collaboration deal with Sarepta. The company’s strategic shift will concentrate on advancing its cardiometabolic assets, such as plozasiran for FCS/SHTG and Phase 1 obesity candidates targeting INHBE and ALK7.

Lastly, Piper Sandler adjusted its outlook on Arrowhead, reducing the 12-month price target while maintaining an Overweight rating on the stock. The reassessment follows Arrowhead’s announcement of a strategic partnership with Sarepta Therapeutics, involving various TRiM programs. The collaboration includes a substantial upfront cash payment to Arrowhead, a significant equity investment, and an additional amount to be paid over the next five years.

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