Piper Sandler has maintained a positive outlook on Arrowhead Pharmaceuticals (NASDAQ: NASDAQ:ARWR), reiterating an Overweight rating with a steady price target of $62.00.
The affirmation followed Arrowhead's recent Central Nervous System (CNS) Research and Development event, where significant advancements were highlighted.
Arrowhead has recently filed a Clinical Trial Application (CTA) for a Phase I study of ARO-ATXN2, an investigational treatment for spinocerebellar ataxia type 2 (SCA2). This development is part of the company's broader efforts to address neurological disorders.
Additionally, Arrowhead unveiled a new platform targeting the transferrin receptor 1 (TfR1), designed to enable subcutaneous administration and ensure more evenly distributed drug delivery across different brain regions.
Looking ahead, Arrowhead aims to submit a New Drug Application (NDA) for plozasiran (ARO-APOC3) in familial chylomicronemia syndrome (FCS) by the end of 2024. Success in this endeavor could lead to the company's first drug approval and product launch projected for 2025.
Financially, Arrowhead is positioned with approximately $837 million in pro forma cash, which is expected to support the progression of its diverse Targeted RNAi Molecule (TRiM) pipeline. The company also has a $400 million debt obligation to Sixth Street.
In other recent news, Arrowhead Pharmaceuticals' drug, plozasiran, has been granted Breakthrough Therapy designation by the FDA for the treatment of familial chylomicronemia syndrome (FCS).
Arrowhead plans to submit a New Drug Application to the FDA by the end of 2024. In addition, Arrowhead has sought regulatory approval to begin a Phase 1/2a clinical trial for ARO-INHBE, an RNA interference (RNAi) therapy aimed at treating obesity.
The company also reported a net loss of $170.8 million for its fiscal 2024 third-quarter performance, 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, Arrowhead received a reiterated Buy rating from TD Cowen and H.C. Wainwright analysts. Citi and Piper Sandler also maintained their respective Neutral and Overweight ratings on Arrowhead.
InvestingPro Insights
While Piper Sandler maintains an optimistic outlook on Arrowhead Pharmaceuticals, recent InvestingPro data and tips provide additional context for investors. The company's market cap stands at $2.25 billion, reflecting its position in the biotech sector. However, InvestingPro Tips indicate that Arrowhead is "quickly burning through cash" and "not profitable over the last twelve months," which aligns with the company's focus on research and development in the pre-approval stage.
The stock's recent performance has been challenging, with InvestingPro data showing a 1-month price total return of -18.41% and a year-to-date return of -40.75%. This decline is reflected in the InvestingPro Tip that the stock is "trading near 52-week low." Despite these short-term headwinds, Arrowhead's liquid assets exceed short-term obligations, suggesting some financial stability as it pursues its pipeline developments.
Investors seeking a more comprehensive analysis can access 13 additional InvestingPro Tips for Arrowhead Pharmaceuticals, offering deeper insights into the company's financial health and market position.
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