Arrowhead Pharmaceuticals Prices $625M Convertible Notes and 3.1M Shares Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22h ago
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Source: Businesswire
- Increased Offering Size: Arrowhead Pharmaceuticals raised the size of its convertible notes offering from $500 million to $625 million, estimating net proceeds of approximately $608.2 million, which reflects strong market support for its financing needs and enhances the company's capital strength for future R&D.
- Stock Offering Details: The company is concurrently offering 3,100,776 shares of common stock at a price of $64.50 per share, with expected net proceeds of about $188.3 million, further bolstering liquidity to support clinical trials and commercialization activities.
- Convertible Notes Terms: The initial conversion price for the notes is set at approximately $87.07 per share, representing a 35% premium over the stock offering price, which is likely to attract investor interest while providing the company with a flexible capital structure to navigate future market fluctuations.
- Planned Use of Proceeds: Arrowhead intends to allocate part of the proceeds for capped call transactions, with the remainder directed towards general corporate purposes, including R&D, clinical trials, and preparations for potential commercial launches, demonstrating the company's strategic positioning for future growth.
Analyst Views on ARWR
Wall Street analysts forecast ARWR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARWR is 61.63 USD with a low forecast of 48.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 65.690
Low
48.00
Averages
61.63
High
85.00
Current: 65.690
Low
48.00
Averages
61.63
High
85.00
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.
