Arrowhead Pharma Surges 6% on Blockbuster Revenue, First FDA Approval
Shares hit a 52-week high after the company reported a massive $829M in revenue from partnerships and secured FDA approval for its first drug, REDEMPLO.
Shares of Arrowhead Pharmaceuticals (NASDAQ: ARWR) surged Tuesday, climbing over 5.7% to a new 52-week high after the company announced blockbuster fourth-quarter financial results and its first-ever U.S. Food and Drug Administration (FDA) approval for its drug REDEMPLO.
The Pasadena-based biotech company posted quarterly revenue of $829.4 million, a staggering 2,759% increase that crushed analyst estimates of just $29.0 million. The monumental beat was primarily driven by large collaboration and milestone payments from its pharmaceutical partners, including Novartis, Sarepta, and Sanofi, rather than product sales. The results underscore the financial power of Arrowhead's partnership-driven model in advancing its pipeline of RNA interference (RNAi) therapeutics.
Adding to the financial momentum, Arrowhead marked a pivotal transition from a clinical-stage to a commercial-stage company by securing FDA approval for REDEMPLO (plozasiran). The drug is the first siRNA medicine approved to treat familial chylomicronemia syndrome (FCS), a rare genetic disorder. This landmark approval not only validates Arrowhead's proprietary technology platform but also provides the company with its first commercial product, opening a new and sustainable revenue stream.
"This is a transformative moment for Arrowhead," said Christopher Anzalone, Ph.D., President and CEO of Arrowhead, in a statement accompanying the results. "The approval of REDEMPLO is a testament to the dedication of our team and the power of our RNAi platform. Paired with our strong financial performance, we are exceptionally well-positioned to advance our deep pipeline of potentially life-changing medicines."
Investors reacted with strong optimism to the dual catalysts. Arrowhead's stock closed at $46.79, up $2.53 on the day, reaching its highest point in the past year. The move brings the company's market capitalization to over $6.1 billion.
The impressive results were bolstered by a significant $200 million milestone payment from Sarepta Therapeutics, which was triggered by progress in a joint program for a muscle-targeted therapy. The company also anticipates receiving up to $25 million from Novartis in the coming year through existing collaborations, according to recent regulatory filings.
Wall Street analysts have taken note, with a flurry of price target upgrades following the news. Piper Sandler raised its price target on ARWR from $45 to $70, while Morgan Stanley increased its target from $29 to $45. Numerous other firms reiterated 'Buy' ratings, signaling growing confidence in the company's commercial and clinical trajectory.
With a fortified balance sheet and a newly approved drug, Arrowhead is expected to accelerate its research and development efforts across its broad pipeline, which targets a range of diseases affecting the liver, lungs, and muscles. The company's success with REDEMPLO and its lucrative partnerships provide a powerful blueprint for its future growth as it enters a new era of commercial operations.