Arrowhead Pharmaceuticals Reports $173.1 Million Net Loss and Decreased Revenue in Latest Quarter

Arrowhead Pharmaceuticals, Inc. reported a net loss of $173.1 million for the three months ended December 31, 2024, compared to a net loss of $132.9 million for the same period in 2023. The company's revenue decreased to $2.5 million from $3.6 million year-over-year, primarily due to reduced revenue recognition from collaboration agreements with GlaxoSmithKline (GSK) and Takeda. Operating expenses rose to $163.9 million, up from $140.1 million, driven by increased research and development costs associated with the advancement of its clinical pipeline.

The company's total assets decreased to $1.01 billion as of December 31, 2024, down from $1.14 billion at the end of the previous fiscal quarter. Cash, cash equivalents, and restricted cash fell to $53.9 million from $102.7 million, while available-for-sale securities also declined to $499.0 million from $578.3 million. The decrease in cash and investments was attributed to ongoing expenses related to research and development programs and general administrative costs, despite receiving $25 million from the sale of pre-funded warrants during the quarter.

In terms of strategic developments, Arrowhead submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for its product plozasiran on November 16, 2024, which was accepted for filing on January 17, 2025. The FDA has set a Prescription Drug User Fee Act (PDUFA) action date of November 18, 2025. Additionally, the company entered into a collaboration agreement with Sarepta Therapeutics, which included a $325 million equity investment and a $500 million upfront payment expected in the second quarter of fiscal 2025.

Operationally, Arrowhead's employee headcount has increased as the company expands its pipeline of drug candidates. The company is currently engaged in multiple clinical trials, including a Phase 1/2a trial for ARO-INHBE and a Phase 1/2a study of ARO-CFB, which has shown promising interim results. The company anticipates continued increases in research and development expenses as its pipeline progresses through clinical trials and commercialization efforts.

Looking ahead, Arrowhead expects to have sufficient liquidity to fund its operations for at least the next twelve months, supported by its current cash and investment resources. The company is eligible for up to $14.1 billion in potential milestone payments and royalties from its collaboration agreements, which could significantly enhance its financial position as its drug candidates advance through development stages.