H.C. Wainwright has maintained a positive stance on Arrowhead Pharma (NASDAQ: ARWR), reiterating a Buy rating and a $60.00 price target.
The firm's endorsement follows Arrowhead's recent R&D webinar, which took place on October 7, where the company outlined the progress of its central nervous system (CNS)-targeted RNA interference (RNAi) programs.
During the webinar, Arrowhead revealed its plans for the Phase 1 clinical development of ARO-ATXN2, a CNS-targeted siRNA designed for spinocerebellar ataxia 2 (SCA2) patients. The company anticipates submitting regulatory filings by the end of 2024 and aims to commence the trial in the first quarter of 2025.
Additionally, Arrowhead introduced a next-generation CNS-targeted platform that enables subcutaneous (SC) injection, which has shown in preclinical studies to efficiently penetrate the blood-brain barrier and achieve superior distribution to deep brain regions compared to intrathecal (IT) delivery.
Arrowhead also plans to file a Clinical Trial Application (CTA) for ARO-MAPT, a new siRNA with SC administration being developed for Alzheimer's disease and other tauopathies, in the second half of 2025. The company expects to submit another CTA for a Huntington's disease program in the same timeframe and to select a candidate for its Parkinson's disease program by the end of 2024.
In other recent news, Arrowhead Pharmaceuticals (NASDAQ:ARWR) has been making significant strides in its clinical programs. The company's drug, plozasiran, received Breakthrough Therapy designation by the FDA for the treatment of familial chylomicronemia syndrome (FCS).
Arrowhead plans to submit a New Drug Application for plozasiran by the end of 2024, with a potential product launch anticipated in 2025. In financial terms, Arrowhead reported a net loss of $170.8 million for its fiscal 2024 third-quarter, with cash and investments totaling $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, while Goldman Sachs, Citi, and Piper Sandler maintained their Neutral, Neutral, and Overweight ratings respectively. Additionally, Arrowhead is advancing two RNA interference candidates, ARO-INHBE and ARO-ALK7, into the final stages of preclinical development for obesity and metabolic disease treatment.
InvestingPro Insights
Arrowhead Pharmaceuticals' ambitious plans for its CNS-targeted RNA interference programs are reflected in its current financial position and market valuation. According to InvestingPro data, the company has a market capitalization of $2.29 billion, indicating significant investor interest despite recent challenges.
InvestingPro Tips highlight 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 as outlined in the article. This is further supported by the operating income of -$547.21 million for the last twelve months as of Q3 2024.
However, it's worth noting that Arrowhead "operates with a moderate level of debt" and "liquid assets exceed short-term obligations," suggesting a degree of financial stability as it pursues its clinical development goals. This could be crucial as the company moves towards regulatory filings and clinical trials for ARO-ATXN2 and ARO-MAPT in the coming years.
The company's Price to Book ratio of 6.94 indicates that investors are placing a premium on Arrowhead's potential, likely due to its innovative CNS-targeted platforms and pipeline. This valuation metric, along with the analysts' fair value target of $50.5, suggests that the market is optimistic about Arrowhead's future prospects, despite current financial losses.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Arrowhead Pharmaceuticals, providing deeper insights into the company's financial health and market position.
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