Ricardo Pillai
3 min read
We came across a bullish thesis on Arrowhead Pharmaceuticals, Inc. on BioEquity Watch’s Substack. In this article, we will summarize the bulls’ thesis on ARWR. Arrowhead Pharmaceuticals, Inc.’s share was trading at $66.25 as of January 15th. ARWR’s trailing and forward P/E were 478.56 and 111.11 respectively according to Yahoo Finance.
Pressmaster/Shutterstock.com
Arrowhead Pharmaceuticals is emerging as a leading RNAi-focused biotechnology company, anchored by its flagship candidate, plozasiran (formerly ARO-APOC3), which targets the ApoC3 gene to reduce plasma triglyceride levels. Using the proprietary TRiM™ platform, plozasiran employs precise, low-dose, quarterly subcutaneous injections to silence ApoC3 in liver cells, unlocking potential treatment for both the rare Familial Chylomicronemia Syndrome (FCS) and the broader Severe Hypertriglyceridemia (sHTG) population.
With a New Drug Application filed for FCS and a PDUFA action date set for November 18, 2025, the company is positioned for a potential commercial transition, with Phase 3 trials ongoing in sHTG. Beyond plozasiran, Arrowhead is advancing other pipeline candidates, including fazirsiran for Alpha-1 antitrypsin deficiency, and early-stage obesity programs ARO-INHBE and ARO-ALK7, showcasing the versatility of its RNAi platform to target diseases beyond the liver.
Financially, Arrowhead maintains a robust balance sheet with approximately $900 million in cash and equivalents, providing ample runway to fund its ambitious clinical programs. Revenue is primarily derived from partnerships, with recent upfront and milestone payments from Sanofi and Sarepta offsetting the high R&D expenditure, which reached $162.4 million in Q3 FY2025. This financial stability allows the company to sustain multiple Phase 3 programs without dilution risk.
Arrowhead’s market opportunity is substantial, spanning cardiometabolic, obesity, and emerging CNS indications. The TRiM™ delivery platform differentiates the company from competitors like Alnylam and Ionis, offering low-frequency dosing and the ability to target novel genes. Near-term catalysts include the PDUFA decision for plozasiran in FCS, sHTG trial readouts, milestone payments, and early obesity and CNS program data. With a strong pipeline, significant commercial potential, and solid financial footing, Arrowhead represents a compelling investment poised for near-term value creation and long-term growth.
