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Shares of Arrowhead Pharmaceuticals (ARWR) rallied sharply on Wednesday, closing up 19%, after the company released positive topline results from two key late-stage studies of its experimental drug plozasiran.
The stock clocked its best day since late November and edged up further 1.5% after-hours.
Chardan analyst Keay Nakae raised the firm's price target on Arrowhead to $115 from $90 and kept a ‘Buy’ rating on the shares after the company reported that both the late-stage studies of plozasiran in severe hypertriglyceridemia met their primary endpoint. These data confirm the "central pillar of our Top Pick thesis" that plozasiran delivers best-in-class efficacy and safety in sHTG, the analyst told investors.
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Nakae’s new price target implies a 30% upside to the stock’s closing price on Wednesday.
The two studies tested plozasiran in patients with severe hypertriglyceridemia — a condition involving dangerously high levels of fats (called triglycerides) in the blood. This can lead to painful and serious inflammation of the pancreas (pancreatitis) as well as increased heart risks.
In both trials, patients received plozasiran as a simple injection under the skin every three months. After one year, the drug delivered major reductions in triglyceride levels: about 79% in one study and 81% in the other. By comparison, patients on placebo saw only a 27% drop.
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A combined look at the data also showed fewer cases of acute pancreatitis overall. In the patients at highest risk, the drug appeared to eliminate these events entirely compared with placebo.
The safety results were consistent with earlier studies, with no major new issues reported, the company said. Arrowhead now continues to advance the program toward potential regulatory approval in severe hypertriglyceridemia. It expects to submit a supplemental application for FDA approval for the condition by the end of 2026. A possible approval will place Arrowhead directly against Ionis Pharmaceuticals, whose Olezarsen was approved for the condition by the FDA last month.
The drug already has full approval for the treatment of Familial Chylomicronemia Syndrome (FCS), a rare genetic disorder that causes extremely high triglyceride levels and a serious risk of painful, potentially life-threatening pancreatitis.
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On Stocktwits, retail sentiment around ARWR stock improved from ‘bearish’ to ‘extremely bullish’ over the past 24 hours, while message volume increased from ‘normal’ to ‘extremely high’ levels.
“This isn't just a technical breakout it's a massive fundamental re-rate,” a Stocktwits user said about the new data.
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Another user contemplated buyout possibilities for the stock.
ARWR stock has gained 34% year-to-date.
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