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Citi maintains Neutral rating on Arrowhead shares with consistent target

EditorTanya Mishra
Published 03/09/2024, 18:18
ARWR
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Citi has reiterated a Neutral rating and a $27.00 price target on Arrowhead Pharmaceuticals (NASDAQ: NASDAQ:ARWR).

The reiteration follows Arrowhead's presentation at the European Society of Cardiology (ESC) Congress, where the company showcased data from its Phase 3 PALISADE study of plozasiran in patients with familial chylomicronemia syndrome (FCS).

The PALISADE study results were positive and indicate a likely approval for plozasiran, although the differences in trial designs make it difficult to compare plozasiran directly with olezarsen, a competing drug. These differences also pose challenges in forecasting the future competitive landscape for the drug.

Arrowhead has announced plans to submit a New Drug Application (NDA) for plozasiran for the treatment of FCS by the end of this year. If the submission is successful, the company anticipates potential approval of the drug in 2025.

The recent study outcomes also provide a promising outlook for plozasiran's use in treating larger indications. Arrowhead is currently conducting Phase 3 trials for severe hypertriglyceridemia (SHTG) and mixed hyperlipidemia, known as the SHASTA and MUIR programs, respectively. These ongoing trials could expand plozasiran's therapeutic reach pending successful results and subsequent approvals.

In other recent news, Arrowhead Pharmaceuticals is set to present new Phase 3 clinical data at the upcoming European Society of Cardiology Congress related to the PALISADE study of plozasiran, a treatment for familial chylomicronemia syndrome.

In financial developments, Arrowhead reported a net loss of $170.8 million for its fiscal 2024 third-quarter performance, with cash and investments totaling $436.7 million. To support its pipeline development, the company secured a $400 million loan from Sixth Street.

Piper Sandler maintained an Overweight rating for Arrowhead, reflecting confidence in the company's ongoing and future clinical programs. Arrowhead is advancing two RNA interference candidates, ARO-INHBE and ARO-ALK7, into the final stages of preclinical development for obesity and metabolic disease treatment. The company aims to expand its pipeline to at least 20 clinical stage or marketed products by next year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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