Arrowhead Pharmaceuticals Reports Fiscal 2021 First Quarter Results

Rhea-AI Summary

Arrowhead Pharmaceuticals (NASDAQ: ARWR) reported its fiscal first quarter results for the period ended December 31, 2020. The company generated $21.3 million in revenue, down from $29.5 million in the same quarter of 2019. Operating expenses increased to $45.4 million, leading to a net loss of $20.7 million or $0.20 per share, compared to a loss of $2.7 million or $0.03 per share in the previous year. The firm is advancing its clinical pipeline with ongoing trials and collaborations, including a significant agreement with Takeda.

Positive

• Agreement with Takeda includes $300 million upfront and potential milestone payments of $740 million.
• Reported clinical advancements for ARO-APOC3 and ARO-ANG3 at major medical meetings.
• Submission of IND for ARO-ANG3 to the FDA indicates progression in clinical development.

Negative

• Revenue decreased by 27% compared to the same quarter last year.
• Operating loss widened to $24.1 million, compared to $4.9 million in Q1 2019.
• Net loss increased significantly to $20.7 million from $2.7 million year over year.

Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR) today announced financial results for its fiscal first quarter ended December 31, 2020. The company is hosting a conference call at 4:30 p.m. EST to discuss results.

Conference Call and Webcast Details

Investors may access a live audio webcast on the Company's website at http://ir.arrowheadpharma.com/events.cfm. For analysts that wish to participate in the conference call, please dial 855-215-6159 or 315-625-6887 and provide Conference ID 1307499.

A replay of the webcast will be available on the company’s website approximately two hours after the conclusion of the call and will remain available for 90 days. An audio replay will also be available approximately two hours after the conclusion of the call and will be available for 3 days. To access the audio replay, dial 855-859-2056 or 404-537-3406 and provide Conference ID 1307499.

Selected Recent Events

• Submitted an Investigational New Drug Application (IND) to the U.S. Food and Drug Administration for a Phase 2b dose-finding clinical study of ARO-ANG3, the company’s investigational RNAi therapeutic being developed as a treatment for patients with mixed dyslipidemia
• Presented new clinical data from Phase 1/2 studies of both wholly owned cardiometabolic candidates, ARO-APOC3 and ARO-ANG3, at the American Heart Association meetings and subsequently hosted key opinion leader webinars to discuss the data and plans for future development of the product candidates
• Closed an agreement with Takeda to co-develop and co-commercialize ARO-AAT, which includes $300 million upfront, $740 million in potential milestone payments, a 50/50 profit sharing agreement in the U.S., and 20-25% royalty on net sales outside the U.S.
• Presented new clinical data at The Liver Meeting Digital Experience, the Annual Meeting of the American Association for the Study of Liver Disease (AASLD) on ARO-AAT, Arrowhead’s candidate against liver disease associated with alpha-1 antitrypsin deficiency, showing that ARO-AAT strongly reduced the production of mutant Z-AAT protein and led to improvements in multiple biomarkers of alpha-1 liver disease

Selected Fiscal 2021 First Quarter Financial Results

ARROWHEAD PHARMACEUTICALS, INC.
CONSOLIDATED CONDENSED FINANCIAL INFORMATION (unaudited)
(in thousands, except per share amounts)
		Three months ended December 31,
OPERATING SUMMARY		2020			2019
REVENUE		$ 21,303			$ 29,455
OPERATING EXPENSES
Research and development		36,555			23,374
General and administrative expenses		8,802			10,934
TOTAL OPERATING EXPENSES		45,357			34,308
OPERATING INCOME (LOSS)		(24,054	)		(4,853	)
OTHER INCOME/(EXPENSE)		3,322			2,180
NET INCOME (LOSS)		$ (20,732	)		$ (2,673	)
NET INCOME (LOSS) PER SHARE (DILUTED)		$ (0.20	)		$ (0.03	)
WEIGHTED AVERAGE SHARES OUTSTANDING (DILUTED)		102,757			97,090
FINANCIAL POSITION SUMMARY		December 31,			September 30,
		2020			2020
CASH AND CASH EQUIVALENTS		$ 139,921			$ 143,583
SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES		165,406			171,910
LONG-TERM INVESTMENTS		110,855			137,487
TOTAL CASH RESOURCES (CASH AND INVESTMENTS)		416,182			452,980
OTHER ASSETS		83,069			69,524
TOTAL ASSETS		499,251			522,504
TOTAL CURRENT DEFERRED REVENUE		6,744			19,291
OTHER LIABILITIES		38,035			41,434
TOTAL LIABILITIES		44,779			60,725
TOTAL STOCKHOLDERS' EQUITY		454,472			461,779
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$ 499,251			$ 522,504
SHARES OUTSTANDING		103,194			102,376

Source: Arrowhead Pharmaceuticals, Inc.

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FAQ

What were Arrowhead Pharmaceuticals' financial results for Q1 2021?

Arrowhead reported revenue of $21.3 million with a net loss of $20.7 million for Q1 2021.

How much did Arrowhead Pharmaceuticals lose per share in Q1 2021?

The company reported a net loss of $0.20 per diluted share in Q1 2021.

What significant agreements did Arrowhead Pharmaceuticals announce recently?

Arrowhead announced a collaboration with Takeda, which includes $300 million upfront and potential milestone payments.

How has Arrowhead Pharmaceuticals' revenue changed compared to last year?

Arrowhead's revenue for Q1 2021 decreased by 27% compared to Q1 2020.

What is the status of Arrowhead's clinical pipeline?

Arrowhead is advancing its pipeline, with recent IND submission for ARO-ANG3 and positive data presentations.