On Friday, H.C. Wainwright adjusted its outlook on Arrowhead Pharma (NASDAQ:ARWR) shares, reducing the price target to $60 from the previous $90 while maintaining a Buy rating on the stock. This change follows the release of additional Phase 3 trial results for the company's drug candidate plozasiran on Sunday.
Arrowhead Pharma recently shared further data from its Phase 3 PALISADE trial, involving 75 adults with familial chylomicronemia syndrome (FCS). The trial assessed the efficacy of plozasiran, an siRNA therapy aimed at APOC3, administered subcutaneously once every three months. The results demonstrated that plozasiran led to consistent and statistically significant reductions in fasting triglycerides at Month 10, meeting the trial's primary endpoint.
In addition to the primary goal, plozasiran showed a statistically significant decrease in the incidence of acute pancreatitis compared to the placebo group. This secondary endpoint could distinguish plozasiran as a leading treatment for FCS. The drug was also well-received with a favorable safety profile among trial participants.
Arrowhead plans to unveil comprehensive PALISADE data at a medical conference in the second half of 2024. The company is preparing to initiate a Phase 3 cardiovascular outcomes trial named CAPITAN for patients with mixed hyperlipidemia at risk of arteriosclerotic cardiovascular disease (ACVD), pending discussions with the FDA. Furthermore, Arrowhead anticipates filing a New Drug Application by the end of 2024, with a hopeful market launch in late 2025 if approved.
The revision in Arrowhead's price target to $60 is attributed to the exclusion of zodasiran, another siRNA targeting ANGPTL3, from H.C. Wainwright's estimates until further clarity on its clinical development trajectory is provided. Despite this adjustment, the firm reiterates its positive stance on Arrowhead's stock at its current trading levels.
In other recent news, Arrowhead Pharmaceuticals (NASDAQ:ARWR) has been making strides in the pharmaceutical sector with significant developments. The company's RNA interference (RNAi) therapeutics have been receiving attention from various analyst firms such as Goldman Sachs, RBC Capital, and Citi.
Goldman Sachs initiated coverage on Arrowhead with a neutral rating and a price target of $31, while RBC Capital maintained an outperform rating with a steadfast $50 price target. Citi also maintained a neutral stance, setting a price target of $29.
Arrowhead has proven its financial stability with a cash position of approximately $649 million and is considering financing options to extend its financial runway. The company's strategic plans include a royalty deal and additional partnerships.
Arrowhead's pipeline is a mix of de-risked liver targets and higher-risk extra hepatic assets, demonstrating the company's strategic risk management in its research and development endeavors.
The company's Phase 3 PALISADE study of plozasiran, a treatment for familial chylomicronemia syndrome (FCS), showed substantial reductions in triglycerides and a decrease in acute pancreatitis incidents compared to a placebo.
Arrowhead plans to initiate Phase III trials for plozasiran in severe hypertriglyceridemia (SHTG) and high-risk pancreatitis patients within the upcoming year. These are just a few of the recent developments at Arrowhead Pharmaceuticals.
InvestingPro Insights
As Arrowhead Pharma (NASDAQ:ARWR) navigates through its clinical trials and prepares for potential market entry, investors are closely monitoring its financial health and market performance. According to InvestingPro, analysts have recently revised their earnings upwards for the upcoming period, signaling a potential upside despite the challenges ahead. However, it's important to note that Arrowhead is quickly burning through cash and analysts anticipate a sales decline in the current year, with expectations that the company will not be profitable within this timeframe.
From a financial perspective, Arrowhead's market capitalization stands at $3.11 billion, and it is trading at a high revenue valuation multiple (Price/Book LTM as of Q2 2024: 6.44). Additionally, the company's revenue has seen a significant drop of 87% in the last twelve months as of Q2 2024. These metrics suggest that while Arrowhead has liquid assets to cover short-term obligations and operates with a moderate level of debt, the company's path to profitability may be steep in the near term.
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