Arrowhead Pharmaceuticals (NASDAQ:ARWR) Issues Quarterly Earnings Results, Misses Expectations By $0.13 EPS

Arrowhead Pharmaceuticals (NASDAQ:ARWR) released its earnings results on Tuesday. The biotechnology company reported ($1.36) earnings per share for the quarter, missing analysts’ consensus estimates of ($1.23) by ($0.13), FiscalAI reports. The firm had revenue of $75.25 million during the quarter, compared to analyst estimates of $44.17 million. Arrowhead Pharmaceuticals had a negative return on equity of 55.09% and a negative net margin of 48.38%.The business’s revenue for the quarter was up 171.0% on a year-over-year basis. During the same quarter last year, the company earned ($1.26) earnings per share.

Here are the key takeaways from Arrowhead Pharmaceuticals’ conference call:

• Phase III SHASTA-3 and SHASTA-4 both met all primary and prespecified secondary endpoints, with median triglyceride reductions of 79% and 81% and a 78% reduction in pooled acute pancreatitis events versus placebo. Arrowhead reported a 100% reduction in events among the highest-risk subgroup, though detailed data remain subject to the upcoming ESC presentation.
• REDEMPLO’s U.S. FCS launch continued to gain traction, with prescriptions more than doubling sequentially, over 400 unique prescribers, and approximately $2.4 million in quarterly commercial revenue. The company also reported approvals in Australia and the European Union, expanding its approved footprint to five geographies.
• Arrowhead acquired a priority review voucher for $215 million, which it expects could shorten FDA review of the planned SHTG supplemental NDA from 10 months to six months. The company plans to submit the sNDA by the end of 2026 and is preparing to expand its field organization from about 5,000 to more than 20,000 healthcare-provider targets.
• The pipeline has several potential catalysts, including September data for ARO-DIMER-PA and the ARO-MAPT CNS delivery program, plus fourth-quarter updates for ARO-INHBE and ARO-ALK7. Management expects 23 candidates in clinical trials by year-end, but most programs remain early-stage and carry substantial development risk.
• Arrowhead’s quarterly net loss widened to $194.3 million from $175.2 million year over year, while operating expenses rose to approximately $245 million as R&D and commercialization investments increased. The company held about $1.6 billion in cash and investments, but expects continued spending on clinical development, regulatory work, manufacturing, and potential SHTG launch preparation.

Arrowhead Pharmaceuticals Price Performance

NASDAQ ARWR opened at $89.59 on Wednesday. Arrowhead Pharmaceuticals has a 1 year low of $15.01 and a 1 year high of $95.49. The business’s fifty day moving average is $79.48 and its two-hundred day moving average is $71.01. The stock has a market capitalization of $12.62 billion, a P/E ratio of -41.67 and a beta of 1.27. The company has a debt-to-equity ratio of 1.41, a quick ratio of 6.23 and a current ratio of 6.23.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Sanford C. Bernstein lifted their price target on Arrowhead Pharmaceuticals from $35.00 to $46.00 and gave the company a “market perform” rating in a research report on Wednesday, May 13th. HC Wainwright raised their target price on Arrowhead Pharmaceuticals from $100.00 to $115.00 and gave the company a “buy” rating in a research note on Monday, July 27th. Weiss Ratings lowered Arrowhead Pharmaceuticals from a “hold (c-)” rating to a “sell (d-)” rating in a report on Wednesday, May 20th. Piper Sandler reiterated an “overweight” rating and issued a $126.00 price target (up from $110.00) on shares of Arrowhead Pharmaceuticals in a research report on Thursday, July 23rd. Finally, Wall Street Zen raised shares of Arrowhead Pharmaceuticals from a “sell” rating to a “hold” rating in a report on Saturday, June 27th. Nine investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $96.92.

Insider Buying and Selling at Arrowhead Pharmaceuticals

In related news, Director Hongbo Lu sold 2,970 shares of Arrowhead Pharmaceuticals stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $76.88, for a total value of $228,333.60. Following the transaction, the director directly owned 52,012 shares in the company, valued at $3,998,682.56. The trade was a 5.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Arrowhead Pharmaceuticals

A number of institutional investors have recently bought and sold shares of ARWR. Arrowstreet Capital Limited Partnership lifted its stake in Arrowhead Pharmaceuticals by 3,142.5% during the third quarter. Arrowstreet Capital Limited Partnership now owns 2,081,689 shares of the biotechnology company’s stock valued at $71,797,000 after buying an additional 2,017,489 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Arrowhead Pharmaceuticals by 34.6% during the first quarter. Goldman Sachs Group Inc. now owns 1,741,666 shares of the biotechnology company’s stock valued at $22,189,000 after acquiring an additional 447,456 shares during the period. Charles Schwab Investment Management Inc. raised its holdings in shares of Arrowhead Pharmaceuticals by 0.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,353,719 shares of the biotechnology company’s stock valued at $89,873,000 after acquiring an additional 7,859 shares during the period. Janus Henderson Group PLC lifted its position in shares of Arrowhead Pharmaceuticals by 31.5% in the 4th quarter. Janus Henderson Group PLC now owns 1,280,446 shares of the biotechnology company’s stock valued at $84,997,000 after acquiring an additional 306,879 shares in the last quarter. Finally, Woodline Partners LP lifted its position in shares of Arrowhead Pharmaceuticals by 34.0% in the 3rd quarter. Woodline Partners LP now owns 1,000,158 shares of the biotechnology company’s stock valued at $34,495,000 after acquiring an additional 254,002 shares in the last quarter. Hedge funds and other institutional investors own 62.61% of the company’s stock.

Arrowhead Pharmaceuticals Company Profile

Arrowhead Pharmaceuticals, Inc is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of RNA interference (RNAi) therapeutics. Since its founding in 2008, Arrowhead has leveraged its proprietary delivery platform—known internally as the Advanced RNAi Compound (ARC) technology—to silence disease-causing genes in patients suffering from genetically defined diseases. The company’s approach aims to offer durable, targeted treatments across a range of therapeutic areas.

The company’s pipeline includes multiple candidates in various stages of development.