Patent Dispute Over Plozasiran Might Change The Case For Investing In Arrowhead Pharmaceuticals (ARWR)

• Earlier this month, Ionis Pharmaceuticals filed a patent infringement lawsuit against Arrowhead Pharmaceuticals in California alleging infringement related to Arrowhead’s investigational drug plozasiran, while Arrowhead had already filed its own lawsuit seeking to invalidate the patent in Delaware. This simultaneous legal action introduces a layer of uncertainty regarding the commercial prospects of Arrowhead’s plozasiran, a potential treatment for familial chylomicronemia syndrome.
• The dual lawsuits cast a spotlight on the importance of intellectual property protection for Arrowhead’s pipeline, particularly as it advances late-stage RNAi therapies and deepens partnerships to expand global reach.
• We'll examine how this new litigation risk facing Arrowhead’s lead program may alter the company’s near-term growth outlook and investment narrative.

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Arrowhead Pharmaceuticals Investment Narrative Recap

To be a shareholder in Arrowhead Pharmaceuticals, you need to believe in the potential value of its late-stage RNAi therapeutic pipeline and its partnerships with major pharmaceutical companies, even as it remains unprofitable. The recent dual lawsuits with Ionis Pharmaceuticals over plozasiran's patent inject legal risk into the near-term outlook for its lead program, which could potentially affect the company’s path to commercialization; for now, this remains the most material short-term risk, while the progress of pivotal clinical trials is still the primary catalyst driving sentiment.

Among recent announcements, Arrowhead’s new global licensing agreement with Novartis stands out, providing US$200 million upfront and possible future milestone payments worth up to US$2 billion. This collaboration further broadens Arrowhead’s partnership base beyond Sarepta and Sanofi while also highlighting the continued importance of intellectual property when forging cross-company deals at such scale.

But before assuming the latest patent disputes are easily resolved, investors should be aware of how unresolved IP litigation could...

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

Arrowhead Pharmaceuticals' outlook suggests $398.8 million in revenue and $64.0 million in earnings by 2028. This projection is based on an annual revenue decline of 11.4% and an earnings increase of $212.4 million from the current earnings of -$148.4 million.

Uncover how Arrowhead Pharmaceuticals' forecasts yield a $46.15 fair value, a 55% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community range from just US$0.33 up to US$46.15, reflecting wide differences in growth expectations. With legal disputes now a key focus for Arrowhead, these varied perspectives are a reminder to consider several alternative viewpoints about risks and opportunities impacting the company’s future.

Explore 2 other fair value estimates on Arrowhead Pharmaceuticals - why the stock might be worth as much as 55% 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 important warning signs 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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