Arrowhead Pharmaceuticals Plans $500M Convertible Notes and $200M Stock Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Should l Buy ARWR?
Source: Businesswire
- Financing Plan: Arrowhead Pharmaceuticals announced its intention to offer $500 million in convertible senior notes and $200 million in common stock, aimed at strengthening the company's capital structure and supporting future R&D and commercialization activities.
- Underwriting Arrangement: J.P. Morgan and Jefferies will act as joint book-running managers for both the note and stock offerings, ensuring a smooth financing process and enhancing market confidence.
- Use of Proceeds: A portion of the net proceeds is expected to fund capped call transactions, while the remainder will be allocated for general corporate purposes, including R&D, clinical trials, and preparations for potential product launches, indicating the company's focus on future growth.
- Market Reaction: The implementation of this financing plan will not be contingent on the completion of either offering, which may lead to short-term volatility in Arrowhead's stock price, but in the long run, it is expected to enhance the company's financial flexibility.
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Analyst Views on ARWR
Wall Street analysts forecast ARWR stock price to rise
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 62.380
Low
35.00
Averages
75.50
High
100.00
Current: 62.380
Low
35.00
Averages
75.50
High
100.00
About ARWR
Arrowhead Pharmaceuticals, Inc. develops medicines that treat intractable diseases by silencing the genes that cause them. The Company's therapies, using a broad portfolio of ribonucleic acid (RNA) chemistries and modes of delivery, trigger the RNA interference (RNAi) mechanism to induce rapid, deep and durable knockdown of target genes. The Company's Targeted RNAi Molecule (TRiMTM) platform utilizes ligand-mediated delivery and is designed to enable tissue-specific targeting while being structurally simple. It is focused on various therapeutic areas, such as cardiometabolic, pulmonary, liver, muscle and central nervous system. It has around 16 clinical-stage investigational medicines (wholly owned and partnered), which range in development stage from Phase I to Phase III. The Company's pipeline products include Plozasiran, Zodasiran, Olpasiran, ARO-RAGE, ARO-MMP7, GSK-4532990, Fazirsiran, GSK5637608, ARO-CFB, ARO-INHBE, ARO-C3, ARO-PNPLA3, ARO-DUX4, ARO-DM1 and ARO-ATXN2.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Optimistic Future Outlook: Management anticipates achieving positive cash flow through multiple independent and partnered product launches, emphasizing the commercial sales progress of REDEMPLO and upcoming key clinical data releases, indicating significant growth potential for the company in the coming years.
See More
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- Earnings Beat: Arrowhead Pharmaceuticals reported a Q1 GAAP EPS of $0.22, surpassing expectations by $0.37, indicating strong profitability that boosts investor confidence.
- Significant Revenue Growth: The company achieved Q1 revenue of $264.03 million, exceeding market expectations of $230.85 million, reflecting sustained demand for its products and further solidifying its market position.
- Stock Performance Volatility: Despite the earnings beat, Arrowhead's shares fell by 2%, indicating market caution regarding future growth, which may impact short-term investor sentiment.
- Expanded Financing Plans: Arrowhead upsized its convertible notes offering to $625 million and priced its stock offering at $64.50 per share, demonstrating a proactive approach to future expansion and R&D investments.
See More
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- Earnings Announcement: Arrowhead Pharmaceuticals is set to release its Q1 earnings on February 5th after market close, with consensus EPS estimate at -$0.37 and revenue expected at $230.85 million, a significant increase from $2.5 million in Q1 FY2025, indicating potential revenue growth for the company.
- Historical Performance Review: Over the past two years, Arrowhead has only beaten EPS estimates 13% of the time and revenue estimates 38% of the time, reflecting uncertainty in financial performance that may impact investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and three downward adjustments, while revenue estimates experienced two upward revisions and four downward changes, suggesting market divergence regarding the company's future performance.
- Financing and Product Approval: Arrowhead recently upsized its convertible notes offering to $625 million and conducted a stock offering at $64.50 per share, while also gaining approval for Redemplo in China for high triglycerides, demonstrating positive progress in financing and product development.
See More
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- Share Reduction Details: Privium Fund Management disclosed in a February 2 SEC filing that it reduced its position in Arrowhead Pharmaceuticals by 75,747 shares in Q4, with an estimated trade value of $3.71 million, reflecting a risk management strategy.
- Position Value Surge: Despite the reduction, the value of Arrowhead in Privium's portfolio surged by $10.09 million at quarter-end, indicating a strong stock price increase of 289.5% year-over-year, significantly outperforming the S&P 500's 15% gain.
- Financial Performance: Arrowhead's fiscal 2025 revenue is projected to reach $829 million, a substantial increase from $3.6 million the previous year, primarily driven by licensing and milestone payments, showcasing accelerated commercialization efforts.
- Investor Confidence Signal: After the sale, Arrowhead still represents 4.87% of Privium's 13F U.S. equity AUM, indicating sustained confidence in Arrowhead while locking in some gains to manage market volatility within a high-risk portfolio.
See More
Privium Fund Management Sells Arrowhead Shares
- Sale Overview: Privium Fund Management sold 75,747 shares of Arrowhead Pharmaceuticals in Q4, with an estimated transaction value of $3.71 million, demonstrating the fund's agility in navigating market fluctuations.
- Position Value Increase: Despite the sale, Privium's position in Arrowhead increased by $10.09 million, reflecting the stock's robust price appreciation and indicating strong market confidence in the company's future prospects.
- Position Proportion Analysis: Following the transaction, Arrowhead represents 4.87% of Privium's 13F U.S. equity AUM, highlighting the fund's continued optimism towards the company even after partial divestment.
- Financial Performance Highlights: Arrowhead's fiscal 2025 revenue is projected to surge to $829 million from just $3.6 million last year, showcasing the success of its commercialization efforts and strong market demand.
See More
