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Morgan Stanley on Wednesday raised its price target on Arrowhead Pharmaceuticals (ARWR) to $48 from $45 while keeping an ‘Equal Weight’ rating on the shares.
Shares of the company traded 22% higher at the time of writing on Wednesday morning.
According to TheFly, the analyst noted that Redemplo's approval in familial chylomicronemia syndrome last week "importantly sets the stage for meaningful label expansion into SHTG (severe hypertriglyceridemia)." Severe hypertriglyceridemia refers to a medical condition where there are dangerously high levels of triglycerides in the blood.
Redemplo is Arrowhead’s first FDA-approved medicine. Its approval earlier this month as an adjunct to diet to reduce triglycerides in adults with familial chylomicronemia syndrome marked a milestone for Arrowhead as it evolves into a commercial-stage pharmaceutical company.
Familial chylomicronemia syndrome (FCS) is a rare, genetic disorder where the body cannot properly break down fat, leading to extremely high levels of triglycerides in the blood. Arrowhead estimates that about 6,500 people in the U.S. are living with FCS.
“Arrowhead is truly just getting started, and we are well-positioned to execute on our aggressive goals in discovery, clinical development, business development, and commercial to enable multiple potential new launches, both independently and with partners, over the coming years,” Arrowhead CEO Christopher Anzalone said on Tuesday.
The company also said it sees a “decent chance” that its new Redemplo trials will show statistical significance in treating patients at high risk of pancreatitis due to high triglyceride levels.
Arrowhead reported revenue of $829.4 million in fiscal 2025 (FY25), compared to $3.6 million in FY24, and above an analyst estimate of $757.44 million.
Net loss per share came in at $0.01, down from the loss of $5 reported in FY24, and lower than an analyst estimate of a loss of $0.03 per share.
On Stocktwits, retail sentiment around ARWR jumped from 'bullish' to 'extremely bullish' territory over the past 24 hours, while message volume remained at 'high' levels.
ARWR stock has more than tripled this year and risen by about 172% over the past 12 months.
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