Arrowhead Pharmaceuticals (ARWR): Assessing Valuation After FDA Greenlight for First siRNA Therapy REDEMPLO

The U.S. Food and Drug Administration approval of REDEMPLO marks a significant milestone for Arrowhead Pharmaceuticals (ARWR). This is the company’s first FDA-cleared siRNA therapy and is intended for adults with familial chylomicronemia syndrome.

See our latest analysis for Arrowhead Pharmaceuticals.

Arrowhead Pharmaceuticals’ breakthrough with REDEMPLO has come amid renewed momentum in the stock, which boasts a 90-day share price return of nearly 88% and a total shareholder return of 108% over the past year. The FDA approval is seen as a catalyst for growth, following several major presentations and industry conferences that positioned Arrowhead on investors’ radars. However, the longer-term track record remains mixed.

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With Arrowhead’s valuation still below analyst price targets and a string of positive catalysts, investors now face a critical question: is this strong run just the beginning, or is future upside already accounted for?

Most Popular Narrative: 29.1% Undervalued

Arrowhead Pharmaceuticals’ most widely followed narrative points to a fair value estimate of $55 per share, a substantial premium compared to its last close at $38.97. This signals conviction among analysts that market pricing significantly lags expected upside, setting the stage for a deeper look at the rationale driving such optimism.

Arrowhead's advancing late-stage clinical pipeline, especially the expected launch of plozasiran for FCS and SHTG, plus pivotal studies for three other RNAi therapies targeting major unmet needs, positions the company to capitalize on rising demand for innovative treatments driven by an aging population and increasing prevalence of chronic and genetic diseases. This could significantly accelerate revenue growth as approvals and launches materialize.

Read the complete narrative.

What’s really fueling this bullish target? The secret lies in bold projections for both new therapy launches and dynamic margin expansion, but the complete set of financial leap assumptions stays just out of sight here. Want the full reveal? Don’t miss out to get the inside story behind the numbers powering this valuation call.

Result: Fair Value of $55 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, delays in key product launches or unexpected setbacks from major collaborators could quickly undermine Arrowhead’s growth story and analyst optimism.

Find out about the key risks to this Arrowhead Pharmaceuticals narrative.

Build Your Own Arrowhead Pharmaceuticals Narrative

Prefer to chart your own path? Dive into the numbers, challenge the consensus, and shape a personal narrative in just a few minutes: Do it your way.

A great starting point for your Arrowhead Pharmaceuticals research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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