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1. Company Snapshot

1.a. Company Description

Arrowhead Pharmaceuticals, Inc.develops medicines for the treatment of intractable diseases in the United States.The company's products in pipeline includes ARO-AAT, a RNA interference (RNAi) therapeutic candidate that is in Phase II clinical trial for the treatment of liver diseases associated with alpha-1 antitrypsin deficiency; ARO-APOC3, which is in phase 2b and one phase 3 clinical trial to treat hypertriglyceridemia; ARO-ANG3 that is in Phase 2b clinical trial to reduce production of angiopoietin-like protein 3; ARO-HSD, which is in Phase 1/2a clinical trial to treat liver diseases; ARO-ENaC, which is in a Phase 1/2a clinical trial to reduce production of the epithelial sodium channel alpha subunit in the airways of the lung; ARO-C3 for the treatment of complement-mediated disease that is in Phase 1/2a clinical trial; ARO-Lung2 for the treatment of chronic obstructive pulmonary disorder; ARO-DUX4 for the treatment of facioscapulohumeral muscular dystrophy; ARO-XDH to treat uncontrolled gout; ARO-COV for the treatment of COVID-19 and other pulmonary-borne pathogens; and ARO-HIF2, which is in phase 1b clinical trial to treat clear cell renal cell carcinoma.


It is also involved in the development of JNJ-3989, a subcutaneously administered RNAi therapeutic candidate to treat chronic hepatitis B virus infection; Olpasiran to reduce the production of apolipoprotein A; and ARO-AMG1 for treating genetically validated cardiovascular targets.Arrowhead Pharmaceuticals, Inc.has a license and research collaboration agreement with Janssen Pharmaceuticals, Inc.


to develop ARO-JNJ1, ARO-JNJ2, and ARO-JNJ3 RNAi therapeutics for liver-expressed targets; and license and research collaboration agreement with Takeda Pharmaceuticals U.S.A., Inc.to develop RNAi therapeutic candidate as a treatment for liver disease.Arrowhead Pharmaceuticals, Inc.


was incorporated in 1989 and is headquartered in Pasadena, California.

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1.b. Last Insights on ARWR

Arrowhead Pharmaceuticals' recent performance has been driven by several positive factors. The company's fiscal 2025 year-end results, announced on November 25, 2025, revealed better-than-expected fourth-quarter financial results, with the FDA approval of REDEMPLO, a treatment for familial chylomicronemia syndrome (FCS), being a transformational milestone. Additionally, the company earned a $200 million milestone payment from Sarepta Therapeutics for achieving a development milestone in a Phase 1/2 clinical study of ARO-DM1. Analysts have a consensus rating of "Moderate Buy" on the stock, with five buy ratings and two hold ratings.

1.c. Company Highlights

2. Arrowhead Pharmaceuticals' Fiscal Year 2025 Earnings: A Year of Significant Milestones

Arrowhead Pharmaceuticals reported a net loss of $2 million for fiscal year 2025, with revenue totaling $829 million driven by license and collaboration agreements. The company's earnings per share (EPS) came in at -$0.11, missing analyst estimates of $0.12. The significant revenue growth was largely driven by the $200 million milestone payment from Sarepta and the $200 million upfront payment from Novartis as part of the licensing and collaboration agreement.

Publication Date: Nov -26

📋 Highlights
  • Rodemplo FDA Approval & Launch:: First siRNA therapy for FCS approved, priced at $60,000 annual WAC, with home administration and a $60M+ patient support program.
  • Financial Milestones:: $400M+ in milestone payments (Sarepta: $200M, Novartis: $200M) and $919M cash reserves as of Q3 2025, funding 20 drug candidates in clinical trials by 2025.
  • Phase III Pipeline Expansion:: Shasta 3/4 (750-patient SHTG trial) and MIRROR III (1,400-patient mixed hyperlipidemia) advancing Rodemplo label expansion, with data expected Q3 2026.
  • Novel CNS & Obesity Programs:: $200M Novartis deal for Parkinson’s therapy (ARO SNCA) and Phase I/IIa obesity candidates (ARO Inhibit E, ARO ALK7) initiating in 2024–2025.

Financial Performance and Key Drivers

The company's financial performance was characterized by substantial revenue growth, primarily driven by the milestone and upfront payments from its partners. The revenue of $829 million was a significant jump, enabling the company to maintain a strong financial position with $919 million in cash and investments as of September 30, 2025. The net loss of $2 million was relatively contained, indicating effective cost management.

Rodemplo Launch and Pipeline Progress

The company achieved a major milestone with the FDA approval of Rodemplo, the first and only FDA-approved siRNA medicine for people living with familial chylomicronemia syndrome (FCS). The commercial team successfully launched Rodemplo, with the drug available in the channel just one week after approval. Additionally, the company made progress on other pipeline programs, including the initiation of the Yosemite Phase III clinical trial of zidaziran and the filing of a request for regulatory clearance to initiate a Phase III clinical trial of Aerodimer PA.

Valuation and Growth Expectations

With a P/S Ratio of 10.84 and an EV/EBITDA of -134.32, the market is pricing in significant growth expectations for Arrowhead Pharmaceuticals. Analysts estimate next year's revenue growth at -53.7%, indicating a potential slowdown. However, the company's strong pipeline and recent milestones suggest potential for long-term growth. The ROE of -41.19% and ROIC of -9.06% reflect the company's current loss-making position, but the substantial cash reserves and ongoing collaborations provide a foundation for future investments.

Pipeline Updates and Future Prospects

The company has a robust pipeline with several programs in various stages of development. The Shasta 3 and Shasta 4 Phase III studies are expected to complete primary portions in mid-2026, with top-line data in the second half of 2026. Additionally, the company expects several data readouts in 2026, including obesity data, dimer data, and ARO MAPT data. The progress in these programs and the potential for future milestones and collaborations will be critical in driving the company's growth.

3. NewsRoom

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Fisher Asset Management LLC Has $7.14 Million Stock Position in Arrowhead Pharmaceuticals, Inc. $ARWR

Dec -05

Source: defenseworld.net

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Arrowhead Pharmaceuticals Receives FDA Breakthrough Therapy Designation for Plozasiran in Severe Hypertriglyceridemia

Dec -02

Source: businesswire.com

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Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) Receives Consensus Rating of “Moderate Buy” from Analysts

Dec -02

Source: defenseworld.net

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Arrowhead Pharmaceuticals to Participate in Upcoming December 2025 Conferences

Dec -01

Source: businesswire.com

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Arrowhead Pharmaceuticals, Inc. (ARWR) Presents at TD Cowen Treatment Advancements in Obesity and Related Disorders Summit Transcript

Nov -28

Source: seekingalpha.com

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Why Arrowhead Pharmaceuticals Stock Surged by Over 23% Today

Nov -27

Source: fool.com

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What's Going On With Arrowhead Shares Wednesday?

Nov -26

Source: feeds.benzinga.com

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Arrowhead Pharmaceuticals, Inc. (ARWR) Q4 2025 Earnings Call Transcript

Nov -26

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.80%)

6. Segments

Innovative Drugs

Expected Growth: 11.8%

Arrowhead Pharmaceuticals' 11.8% growth in Innovative Drugs is driven by increasing adoption of RNA interference (RNAi) therapies, strong pipeline of candidates in Phase 2 and 3 trials, and strategic partnerships with pharma giants. Growing demand for targeted and personalized treatments, expanding indications for existing drugs, and favorable regulatory environment also contribute to the segment's growth.

7. Detailed Products

RNAi Therapeutics

Arrowhead's RNAi therapeutics are designed to silence specific genes that cause disease, with the goal of treating a wide range of diseases, including genetic disorders, infectious diseases, and cancer.

TRiM Platform

TRiM (Targeted RNAi Molecule) is a proprietary platform that enables the discovery and development of RNAi therapeutics that can be administered systemically, with the goal of treating a wide range of diseases.

Dynamic Polyconjugates (DPCs)

DPCs are a type of RNAi delivery vehicle that enables the targeted delivery of RNAi therapeutics to specific cells and tissues, with the goal of treating a wide range of diseases.

Cardiovascular Disease Therapeutics

Arrowhead is developing RNAi therapeutics to treat cardiovascular diseases, including hypertriglyceridemia and familial chylomicronemia.

Liver Disease Therapeutics

Arrowhead is developing RNAi therapeutics to treat liver diseases, including hepatitis B and alpha-1 antitrypsin deficiency.

Cancer Therapeutics

Arrowhead is developing RNAi therapeutics to treat various types of cancer, including liver cancer and triple-negative breast cancer.

8. Arrowhead Pharmaceuticals, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Arrowhead Pharmaceuticals, Inc. has a moderate threat of substitutes due to the presence of alternative treatments and therapies for the diseases it targets.

Bargaining Power Of Customers

Arrowhead Pharmaceuticals, Inc. has a low bargaining power of customers due to the lack of negotiating power of individual patients and the high demand for its products.

Bargaining Power Of Suppliers

Arrowhead Pharmaceuticals, Inc. has a moderate bargaining power of suppliers due to the presence of multiple suppliers for raw materials and equipment.

Threat Of New Entrants

Arrowhead Pharmaceuticals, Inc. has a high threat of new entrants due to the growing demand for RNAi-based therapies and the increasing interest in gene editing technologies.

Intensity Of Rivalry

Arrowhead Pharmaceuticals, Inc. operates in a highly competitive industry with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.80%
Debt Cost 7.84%
Equity Weight 70.20%
Equity Cost 7.84%
WACC 7.84%
Leverage 42.44%

11. Quality Control: Arrowhead Pharmaceuticals, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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ACADIA Pharmaceuticals

A-Score: 5.6/10

Value: 3.0

Growth: 9.0

Quality: 9.1

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

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TG Therapeutics

A-Score: 4.8/10

Value: 2.0

Growth: 8.2

Quality: 7.7

Yield: 0.0

Momentum: 8.5

Volatility: 2.7

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Axsome Therapeutics

A-Score: 4.6/10

Value: 6.0

Growth: 4.1

Quality: 3.6

Yield: 0.0

Momentum: 9.0

Volatility: 5.0

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Arrowhead Pharmaceuticals

A-Score: 3.9/10

Value: 6.2

Growth: 1.1

Quality: 4.2

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

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Intellia Therapeutics

A-Score: 3.4/10

Value: 7.0

Growth: 2.8

Quality: 4.8

Yield: 0.0

Momentum: 4.5

Volatility: 1.0

1-Year Total Return ->

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Ultragenyx Pharmaceutical

A-Score: 3.0/10

Value: 6.4

Growth: 4.7

Quality: 3.5

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

64.66$

Current Price

64.66$

Potential

-0.00%

Expected Cash-Flows