Arrowhead Pharmaceuticals Reports $542.7 Million Revenue in Q2 2025, Significant Profit Turnaround

Arrowhead Pharmaceuticals, Inc. reported significant financial performance for the second quarter of fiscal 2025, with total revenue reaching $542.7 million, a substantial increase from zero revenue in the same period last year. For the six months ended March 31, 2025, revenue totaled $545.2 million, compared to $3.6 million for the same period in 2024. This growth was primarily driven by revenue recognition from the company's collaboration agreement with Sarepta Therapeutics, which contributed $542.7 million in the quarter. The company also reported a net income of $370.4 million for the three months ended March 31, 2025, compared to a net loss of $125.3 million in the prior year, marking a significant turnaround in profitability.

Arrowhead's operating expenses for the quarter were $161.5 million, up from $126.2 million in the same period last year, reflecting increased investment in research and development as the company expands its pipeline of RNA interference (RNAi) therapeutics. Research and development expenses rose to $133.1 million for the quarter, compared to $101.1 million in the prior year, driven by higher candidate costs associated with clinical trials. General and administrative expenses also increased to $28.4 million from $25.1 million, largely due to higher professional services costs related to commercialization efforts.

The company has made notable strategic advancements, including the completion of a global licensing and collaboration agreement with Sarepta Therapeutics, which closed on February 7, 2025. This agreement provided Arrowhead with $500 million in upfront payments and $325 million from the sale of common stock. Additionally, Arrowhead submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for one of its investigational therapies, with a PDUFA action date set for November 18, 2025. The company also announced progress in its clinical trials, including the dosing of subjects in several Phase 1 and Phase 2 studies.

As of March 31, 2025, Arrowhead reported $185.7 million in cash, cash equivalents, and restricted cash, alongside $911.7 million in available-for-sale securities, a significant increase from $102.7 million and $578.3 million, respectively, as of September 30, 2024. The company anticipates that its current financial resources will be sufficient to fund operations for at least the next twelve months. Looking ahead, Arrowhead expects continued growth in its pipeline and revenue as it advances its RNAi therapeutics through clinical development and commercialization efforts.