Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR) Continues Upward Journey


Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR) has already put investors on high alert with the positive outcome from a combination trial of its lead candidate ARC-520 for hepatitis B. However, analysts at Cantor Fitzgerald have just boosted investor confidence on the prospect of Arrowhead.

The analysts have initiated coverage of Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR) with a BUY recommendation and a lofty price estimate of $15. Keep in mind that shares of Arrowhead are currently trading in the vicinity of $7 and the highest level the shares have climbed in the last 12 months is $9.36. As such, Cantor’s price target suggests a decent upside potential over the prevailing market price.

Treating hepatitis B

It seems those on Wall Street are beginning to appreciate the potential value in Arrowheads’ most advance product candidate ARC-520. Notice that Cantor’s initiation of coverage of the stock of ARWR comes after the company announced upbeat results from a trial that combined ARC-520 with BMY’s drug called Baraclude.

In that combination study, a 99.99% reduction in the level of HBV DNA was registered, with compelling outcome in patients with a typically tough-to-treat variation of HBV.

With that, investors got a hint that Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR) is headed in the right direction with ARC-520. However, because ARC-520 is still in mid-stage trials, nothing is guaranteed at this point, though success could unlock massive revenue for Arrowhead.

It is estimated that more than 350 million people are afflicted by HBV globally.

Does Arrowhead have adequate financial resource?

Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR) recently closed a private offering of its common stock that saw it raise $45 million in gross proceeds. The company sold about 7.63 million shares at an offering price of $5.90 to enable it to raise the amount.

With that, it does appear like Arrowhead is faces a shortage of financial resources that could hamper ARC-520 program, at least, not in the near-term. The management said that the funds raised through the private placement would go into funding two of Arrowhead’s underway clinical trials and ARC-520 is one of them.

F3Q2016 results – Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR)

Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR) posted EPS loss of $0.32 on revenue of $0.04 million in F3Q2016. The topline figure retreated 66.7% YoY.


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