PASADENA, Calif. - Arrowhead Pharmaceuticals, Inc. (NASDAQ: NASDAQ:ARWR) has received a $50 million milestone payment from Royalty Pharma plc (NASDAQ: RPRX) following the completion of enrollment for the Phase 3 OCEAN(a) - Outcomes Trial of olpasiran. The trial, which is being conducted by Amgen (NASDAQ: NASDAQ:AMGN), aims to assess the efficacy of olpasiran in reducing the risk of cardiovascular incidents in patients with elevated levels of lipoprotein(a).
The payment is part of a series of potential financial achievements outlined in agreements between Arrowhead, Amgen, and Royalty Pharma dating back to 2016 and 2022, respectively. Arrowhead may receive up to an additional $375 million from Amgen and $110 million from Royalty Pharma if certain development, regulatory, and sales milestones are met.
Olpasiran, developed using Arrowhead’s proprietary TRiMTM technology, is a small interfering RNA (siRNA) therapeutic designed to lower lipoprotein(a), a genetic risk factor for cardiovascular disease. The OCEAN(a) trial's primary goal is to determine if olpasiran can decrease the occurrence of coronary heart disease death, myocardial infarction, or urgent coronary revascularization compared to a placebo.
Christopher Anzalone, Ph.D., president and CEO of Arrowhead, expressed satisfaction with the progress of the trial and noted the potential significance of olpasiran as a new therapy. He also highlighted that Arrowhead has three TRiMTM-enabled programs in Phase 3 trials, including olpasiran, fazirsiran, and plozasiran, with plozasiran expected to complete its first pivotal Phase 3 study soon.
Lipoprotein(a) is a genetically determined factor that is believed to be an independent risk factor for cardiovascular disease, affecting approximately 20% of adults. Elevated levels of Lp(a) have been associated with an increased risk of myocardial infarction, stroke, and peripheral arterial disease.
Arrowhead Pharmaceuticals focuses on developing RNAi-based therapeutics to silence genes responsible for diseases. The company's RNAi-based therapies aim to induce a rapid, deep, and durable knockdown of target genes.
InvestingPro Insights
As Arrowhead Pharmaceuticals (NASDAQ: ARWR) advances its Phase 3 OCEAN(a) trial with the support of milestone payments, investors and analysts are closely monitoring the company's financial health and market performance. According to InvestingPro data, Arrowhead has a market capitalization of $2.99 billion and is trading at a high Price / Book multiple of 18.66. Despite the company's innovative strides in RNAi-based therapeutics, analysts have raised concerns, as reflected in the anticipated sales decline and expected drop in net income for the current year.
InvestingPro Tips indicate that while Arrowhead's liquid assets exceed its short-term obligations, suggesting a degree of financial stability, the company operates with a moderate level of debt and has not been profitable over the last twelve months. This is further evidenced by a significant revenue decline of 34.71% in the last twelve months as of Q1 2024. Additionally, Arrowhead does not pay a dividend, which may influence investors seeking regular income streams from their investments.
Investors seeking a deeper dive into Arrowhead's financials and market potential can find additional insights on InvestingPro. There are currently six more InvestingPro Tips available, which could provide further guidance on the company's performance and outlook. For those interested in accessing these tips, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/ARWR.
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