Goldman Sachs maintains a neutral rating on Arrowhead stock By Investing.com
Goldman Sachs has maintained a neutral rating and a $28.00 price target on 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) technology, which is designed to target specific genetic material within cells.
Arrowhead Pharma's research, presented during the final installment of its 2024 R&D Webinars series, demonstrated the effectiveness of two delivery methods for their RNAi technology.
The first method, intrathecal delivery, was noted for its wide cellular distribution. The second approach involved transferrin-mediated subcutaneous receptor delivery. Both methods are part of the company's efforts to develop treatments for neurodegenerative diseases.
The company highlighted its new product, ARO-ATXN2, aimed at treating spinocerebellar ataxia 2, with the first patient expected to be dosed in the first quarter of 2025. Additionally, Arrowhead has revealed three other novel products in the pipeline: ARO-MPT for Alzheimer's disease, ARO-HTT for Huntington's disease, and ARO-SNCA for Parkinson's disease and other synucleinopathies. The submission of a clinical trial application (CTA) for ARO-MAPT and ARO-HTT is expected in the second half of 2025, while the selection of the ARO-SNCA candidate is expected by the end of 2024.
In other recent news, Arrowhead Pharmaceuticals (NASDAQ: ) has made 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 possible product launch expected in 2025. Arrowhead reported a net loss of $170.8 million for the third quarter of fiscal 2024, with cash and investments totaling $436.7 million.
To support pipeline development, the company secured a $400 million loan from Sixth Street. In terms of analyst ratings, Arrowhead received a repeat buy rating from TD Cowen, HC Wainwright, and Piper Sandler. Additionally, Arrowhead is advancing two RNA interference candidates, ARO-INHBE and ARO-ALK7, to the final stages of clinical development for obesity and metabolic disease treatments.
InvestingPro Insights
InvestingPro's latest data provides more context on Arrowhead Pharma's financial position and market performance. The company's market capitalization reaches $2.26 billion, reflecting its position in the biotechnology sector. However, Arrowhead's financial metrics present some challenges. The company's revenue for the last twelve months from Q3 2024 was $19.65 million, with a significant revenue decline of 92.33% over the same period.
InvestingPro Tips highlights that Arrowhead is burning through cash quickly and is not expected to turn a profit this year. This is in line with the company's focus on first-in-class drug development, as outlined in the article. The stock is trading near its 52-week high, with a 29.46% price decline over the past six months, which may indicate market uncertainty about the company's pipeline progress.
Positively, InvestingPro Tips indicates that Arrowhead's liquid assets exceed short-term obligations, suggesting financial stability to continue its research and development efforts. This is critical to the company's ability to advance the CNS franchise and other pipeline assets mentioned in the article.
For investors interested in in-depth analysis, InvestingPro offers 13 additional tips for Arrowhead Pharma, providing a comprehensive overview of the company's financial health and market conditions.
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