Arrowhead Pharmaceuticals (ARWR) Nears FDA Decision on Plozasiran Following Key Novartis Licensing Deal

• Arrowhead Pharmaceuticals is approaching a key FDA decision on November 18, 2025, for its RNAi therapy Plozasiran targeting familial chylomicronemia syndrome, following strong efficacy in Phase 3 trials with substantial reduction in triglycerides and pancreatitis risk.
• Additionally, Novartis has announced a global licensing agreement for development of ARO-SNCA, bringing Arrowhead significant upfront payments and milestone opportunities that strengthen its financial position before potential commercialization.
• We'll assess how the anticipated FDA decision on Plozasiran could reshape Arrowhead's investment narrative and future outlook.

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Arrowhead Pharmaceuticals Investment Narrative Recap

To be a shareholder in Arrowhead Pharmaceuticals, one must have confidence that its late-stage RNAi therapy pipeline, particularly the potential approval of Plozasiran for FCS, can translate medical innovation into long-term revenue growth. The upcoming FDA decision is now an amplified short-term catalyst following strong late-stage data, but the primary risk persists around ongoing reliance on large partner milestone payments and unpredictable near-term cash flows if key collaborations shift or face delays.

The recently closed licensing agreement with Novartis, which brought Arrowhead US$200 million upfront and significant milestone potential, directly supports financial stability ahead of Plozasiran’s regulatory milestone. This boosts Arrowhead’s balance sheet at a crucial moment when clinical and regulatory achievements are set to shape the company’s near-term prospects and risk profile.

By contrast, while upcoming approvals could spur growth, the heavy dependence on external partnership milestones is a risk investors should not overlook if ...

Read the full narrative on Arrowhead Pharmaceuticals (it's free!)

Arrowhead Pharmaceuticals is projected to reach $398.8 million in revenue and $64.0 million in earnings by 2028. This outlook assumes an annual revenue decline of 11.4% and a $212.4 million increase in earnings from the current level of -$148.4 million.

Uncover how Arrowhead Pharmaceuticals' forecasts yield a $47.50 fair value, a 21% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community supplied 2 fair value estimates for Arrowhead Pharmaceuticals, ranging widely from US$0.33 to US$47.50 per share. With regulatory decisions looming, many contributors voice concern about the company’s reliance on unstable milestone revenue streams, highlighting the impact that partnership shifts or delays could have on future performance.

Explore 2 other fair value estimates on Arrowhead Pharmaceuticals - why the stock might be worth as much as 21% more than the current price!

Build Your Own Arrowhead Pharmaceuticals Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Arrowhead Pharmaceuticals research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Arrowhead Pharmaceuticals' overall financial health at a glance.

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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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