Goldman Sachs has maintained a Neutral rating and a $28.00 price target for Arrowhead Pharma (NASDAQ: ARWR). The decision followed Arrowhead’s recent presentation of preclinical data for its central nervous system (CNS) franchise.
The data showed promising results for their RNA interference (RNAi) technologies, which are designed to target specific genetic material within cells.
Arrowhead Pharma’s research, presented during the final installment of its 2024 Summer Series of R&D Webinars, showcased the efficacy of two delivery methods for their RNAi technologies.
The first method, intrathecal delivery, was noted for its broad cellular distribution. The second method involved transferrin receptor-mediated subcutaneous delivery. Both methods are part of the company’s efforts to develop treatments for neurodegenerative diseases.
The company highlighted its new asset, ARO-ATXN2, aimed at treating spinocerebellar ataxia 2, with the first patient expected to be dosed in the first quarter of 2025. Additionally, Arrowhead revealed three more novel assets in the pipeline: ARO-MAPT for Alzheimer’s disease, ARO-HTT for Huntington’s disease, and ARO-SNCA for Parkinson’s disease and other synucleinopathies. Clinical trial application (CTA) filings for ARO-MAPT and ARO-HTT are anticipated in the second half of 2025, while candidate selection for ARO-SNCA is expected by the end of 2024.
In other recent news, Arrowhead Pharmaceuticals (NASDAQ:) has been making significant strides in its clinical programs. The company’s 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 (NDA) for plozasiran by the end of 2024, with a potential product launch anticipated in 2025. 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, the company secured a $400 million loan from Sixth Street. In terms of analyst ratings, Arrowhead received a reiterated Buy rating from TD Cowen, H.C. Wainwright, and Piper Sandler. 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
Recent InvestingPro data provides additional context to Arrowhead Pharma’s financial situation and market performance. The company’s market capitalization stands at $2.26 billion, reflecting its position in the biotechnology sector. However, Arrowhead’s financial metrics reveal some challenges. The company’s revenue for the last twelve months as of Q3 2024 was $19.65 million, with a significant revenue decline of 92.33% over the same period.
InvestingPro Tips highlight that Arrowhead is quickly burning through cash and is not expected to be profitable this year. This aligns with the company’s focus on early-stage drug development, as outlined in the article. The stock is trading near its 52-week low, with a 29.46% price decline over the past six months, potentially reflecting market uncertainty about the company’s pipeline progress.
On a positive note, InvestingPro Tips indicate that Arrowhead’s liquid assets exceed short-term obligations, suggesting financial stability to continue its research and development efforts. This is crucial for the company’s ability to advance its CNS franchise and other pipeline assets mentioned in the article.
For investors interested in a deeper analysis, InvestingPro offers 13 additional tips for Arrowhead Pharma, providing a more comprehensive view of the company’s financial health and market position.
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