Analyst Conference Summary

biotechnology

conference date: May 7, 2026 @ 1:30 PM Pacific Time
for quarter ending: March 31, 2026 (fiscal Q2, second quarter fiscal 2026)

Forward-looking statements

Overview: Early in commercial sales, continues to develop pipeline.

Basic data (GAAP):

Revenue was $74 million, down sequentially from $264 million, and down from $543 million year-earlier.

Net income was negative $133 million, down sequentially from $31 million, way down from $370 million year-earlier.

Diluted EPS was negative $0.93 , down sequentially from $0.22, down from $2.75 year-earlier.

Guidance:

none

Conference Highlights:

CEO Christopher Anzalone said "Arrowhead continues to show strong execution in meeting and exceeding our commercial, R and D, and corporate goals. The company is on extremely strong footing to continue to drive growth in the near-term with numerous opportunities to create long-term shareholder value. We remain focused on a few key areas as being critical sources of sustainable growth for Arrowhead, and we have made tangible advancements across these areas. These include: strengthening our commercial presence to bring Redemplo and potentially other cardiometabolic products in the future to the many patients and physicians who need it; continuing to deliver best-in-class in discovery, development, and regulatory capabilities in support of a deep pipeline of RNAi therapeutics capable of silencing genes expressed throughout the body to treat various diseases; and, being strategic and disciplined around pipeline, portfolio, and financial management." Revenue in the quarter was mainly from Sarepta and Novartis for joint programs. Redemplo sales were about $1 million.

The comp with Q1 2025 was poor because in that quarter Arrowhead received $543 million in upfront payments and milestones (but no sales).

In November 2025 the FDA approved Redemplo (plozasiran) for FCS (familial chylomicronemia syndrome). This is Arrowhead's first approved medicine. Has built out the sales and marketing teams for plozasiran. Feedback has been favorable. Helps to prevent pancreatitis from FCS. Lowered to $45,000 annual price, dosing every 3 months. Priced for the larger severe hypertriglyceridemia market (SHTG), where it is in Phase 3 trials which should report results in Q3 2026. Believes is best in class. To date 180 patients treated, new prescription rate has increased to about 30 per week.

Redemplo was approved in Australia in Q1 2026. Canada approved. The CHMP recommended EU approval. China approved. It will be marketed in Greater China by Sanofi under an agreement between Sanofi and Arrowhead.

In Q1 2026 Arrowhead dosed the first subjects in a Phase 1/2a clinical trial of ARO-DIMER-PA, an investigational RNAi therapeutic for atherosclerotic cardiovascular disease (ASCVD) due to mixed hyperlipidemia. ARO-DIMER-PA is designed to silence expression of the proprotein convertase subtilisin kexin 9 (PCSK9) and apolipoprotein C3 (APOC3) genes. It is the first dual-functional clinical candidate to target two genes simultaneously in one molecule.

In Q1 2026, for obesity, announced interim clinical data for, ARO-INHBE and ARO-ALK7, showing weight loss in obese patients with diabetes and improved measures of body composition. In obese patients with type 2 diabetes mellitus, ARO-INHBE in combination with tirzepatide achieved -9.4% weight loss at week 16, representing an approximately two-fold improvement versus -4.8% on tirzepatide alone. ARO-INHBE drove robust fat reduction including -23.2% visceral fat, -15.4% total fat, and -76.7% liver fat reduction, representing an approximately three-fold improvement in all three measures versus tirzepatide alone in obese diabetic patients. ALK7 also showed positive results.

In Q1 2026, on October 17, licensed ARO-SNCA to Novartis, for Parkinson's Disease and other additional collaboration targets. Received $200 million upgront, potential milestones of $2 billion, plus potential royalties.

In Q2 2026 licensed ARO-PNPLA3 to Madrigal Pharmaceuticals for MASH. Receiving $25 million upfront, up to $975 million in milestone payments, and tiere royalties if commercialized.

Expects novel dual dimer candidates in the clinic in 2027.

See also the Arrowhead Pharmaceuticals pipeline page.

Cash and equivalents (including investments) ended at $1.78 billion, up sequentially from $916 million. $na million cash from operations. In Q1 fiscal 2026 had raised $930 million with a combined new issuance of convertible senior notes and stock. Debt of convertible notes is $682 million.

Operating expenses of $215 million included $173 million for R&D and $42 million for G&A. Leaving operating income of negative $141 million. Other income $5 million. Tax $0 million. Loss atributable to non-contolling interest $5 million.

Q&A selective summary:

SHTG pancreatitis data? Will pool for the two studies. Still blinded.

INHBE and ALK7 goals? We think the approach is to make part of combination therapy, for type 2 diabetics. We saw clear redistribution of fat to outside the liver. Focus is on liver fat data and changes in body composition.

Price lowering, payer interactions? Consistent and positive interactions. Diagnosis using clinical criteria. No guidance on gross-to-net. The lower price was not for the payers, it is in expectation of the larger SHTG market, in view of competitor pricing.

Redemplo switch patients? Diverse reasons, including efficacy, safety, and tolerability.

ASO MAPT Biogen and Ionis? We hope their data are good. That would be positive for Tau hypothesis and Arrowhead. Even if not positive, we can pursue other Tau driven diseases.

We believe our SHTG results will be superior to Ionis's, but we have to wait for the final data.

Discussed gene editing v. RNAi therapies.

Dimer platform for obesity? Yes, evaluating.

Ionis $40 K price and first mover advantage? We believe Redemplo is best in class, so deserves premium pricing. Only 4 injections per year.

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