PresentationBefore we kick off, I'll just remind folks that we will have time for Q&A at the end of the session. [Operator Instructions]Okay. Good morning. Welcome, everyone, to the 44th Annual JPMorgan Healthcare Conference. My name is Matt Bannon, and I'm a banker here at JPM. I am very pleased to be introducing our first presenting company of the day, Arrowhead Pharmaceuticals. And presenting on behalf of Arrowhead, we have the President and CEO, Chris Anzalone.Dr. Christopher AnzaloneChairman, CEO & Pre ...

Arrowhead Pharmaceuticals (NasdaqGS:ARWR) FY Conference January 12, 2026 10:30 AM ET Company ParticipantsMatthew Bannon - BankerChristopher Anzalone - President and CEOConference Call ParticipantsNone - Analyst 2None - Analyst 1None - Analyst 3None - Analyst 4Matthew BannonOkay. Good morning. Welcome, everyone, to the 44th Annual JPMorgan Healthcare Conference. My name is Matt Bannon, and I'm a banker here at JPM. I am very pleased to be introducing our first presenting company of the day, Arrowhead Pharmac ...

Investment Rating - The report indicates a positive investment outlook for the pharmaceutical sector, with the overall performance of the Shenwan Pharmaceutical and Biological Index increasing by 7.8% during the week, outperforming the Shanghai Composite Index which rose by 3.82% [2][3]. Core Insights - The pharmaceutical sector's overall valuation stands at 30.6 times earnings, ranking 10th among 31 Shenwan primary industries [5]. - The report highlights significant developments in the long-term care insurance system transitioning from pilot programs to full establishment during the 14th Five-Year Plan, with coverage reaching nearly 300 million people and fund expenditures exceeding 100 billion yuan by the end of 2025 [11]. - Notable advancements in drug commercialization include the launch of Novo Nordisk's oral GLP-1 weight loss drug Wegovy in the U.S., with monthly costs ranging from $149 to $299 for self-paying patients [13][14]. - Moderna has submitted a New Drug Application (NDA) for its seasonal flu vaccine mRNA-1010, showing promising efficacy results in clinical trials [15]. - Arrowhead has reported positive mid-stage results for its RNAi therapies ARO-INHBE and ARO-ALK7, demonstrating significant reductions in visceral and liver fat [16][17]. - GSK's hepatitis B drug Bepirovirsen has shown statistically significant functional cure rates in its Phase III trials [18]. - Recent approvals for innovative drugs in China include BeiGene's BCL-2 inhibitor and Sanofi's APOC3 siRNA drug, which addresses familial chylomicronemia syndrome [19][21]. Summary by Sections Market Performance - The Shenwan Pharmaceutical and Biological Index increased by 7.8%, ranking 6th among 31 Shenwan primary industries [2][3]. - Various sub-sectors showed positive growth, with medical devices and medical outsourcing leading with increases of 10.8% and 11.1%, respectively [5]. Industry Dynamics - The long-term care insurance system is set to expand significantly, with a focus on providing care for the elderly and disabled [11][12]. - The report emphasizes the importance of innovation in drug development, particularly in RNAi therapies and small nucleic acid drugs, which are gaining traction in clinical settings [16][18]. Company Developments - Significant partnerships and collaborations are highlighted, such as the $8.88 billion research collaboration between Insilico Medicine and Servier focusing on oncology [20]. - The report notes the successful commercialization of several new drugs, including BeiGene's and Sanofi's recent approvals, which are expected to impact market dynamics positively [19][21]. - The establishment of new companies and subsidiaries, such as the brain-computer interface subsidiary by Xinwei Medical, indicates a strategic shift towards innovative technologies in healthcare [22].

Investment Rating - The report maintains a positive outlook on the pharmaceutical industry, indicating a "Buy" rating based on recent market performance and emerging opportunities in innovative drug development [2][3]. Core Insights - The pharmaceutical sector saw a significant increase, with the Shenwan Pharmaceutical and Biological Index rising by 7.8%, outperforming the Shanghai Composite Index, which increased by 3.82% [2][3]. - The report highlights the ongoing commercialization of innovative drugs, including the oral GLP-1 medication Wegovy by Novo Nordisk, and the successful clinical trials of various RNAi therapies [11][13][18]. - The establishment of a comprehensive long-term care insurance system in China is expected to enhance the healthcare landscape, potentially benefiting the pharmaceutical sector [11][12]. Market Performance - The Shenwan Pharmaceutical and Biological Index ranked 6th among 31 Shenwan first-level sub-industries, with various sub-sectors showing positive growth, such as medical devices (+10.8%) and medical research outsourcing (+11.1%) [2][5]. - The overall valuation of the pharmaceutical sector stands at 30.6 times earnings, ranking 10th among 31 Shenwan first-level industries [5][10]. Recent Key Events - The report notes the successful approval and commercialization of several new drugs, including BeiGene's BCL-2 inhibitor and Sanofi's APOC3 siRNA drug, which address significant medical needs [20][22]. - Collaborations in drug development are highlighted, such as the $8.88 billion partnership between Insilico Medicine and Servier focusing on oncology [21]. - The report emphasizes the potential of the brain-computer interface industry, with companies like Mindray Medical and Lepu Medical making strides in this area [24]. Investment Opportunities - The report suggests focusing on domestic innovative drug companies and CROs, particularly those involved in the development of small nucleic acid drugs and brain-computer interface technologies [2][11]. - Specific companies to watch include Tigermed, WuXi AppTec, and Innovent Biologics, which are positioned to benefit from the recovery of the innovative drug sector [2][11].

智通财经APP获悉，2025年累计涨幅高达253%的Arrowhead Pharmaceuticals, Inc.(ARWR.US)是2025年美 股市场表现最好的20只股票之一，其涨幅远超"AI芯片霸主"英伟达(NVDA.US)，甚至全年涨幅小幅超 过当前全球股市最热门投资主题——存储芯片这一主题的市场份额与市值领军者美光(MU.US)。华尔街 知名投资机构Piper Sandler近日发布研报称，维持对于Arrowhead Pharmaceuticals, Inc.的"增持"股票评 级，同时还将该股的目标价格从70美元上调至100美元。截至上周美股收盘，该公司股价收于64.560美 元，意味着短期到中期潜在涨幅高达55%。 Piper Sandler予以Arrowhead Pharmaceuticals的100美元这一12个月内无比强劲的看涨目标价位，堪称对 于当前处于回调阶段的全球创新药领域的一针重磅强心剂。今年以来Arrowhead Pharmaceuticals股价表 现不佳，年内迄今跌近3%，大幅跑输标普500指数。 专注于"基因沉默"的Arrowhead Pharmaceuticals是何方神圣 ...

智通财经APP获悉，2025年累计涨幅高达253%的Arrowhead Pharmaceuticals, Inc.(ARWR.US)是2025年美 股市场表现最好的20只股票之一，其涨幅远超"AI芯片霸主"英伟达(NVDA.US)，甚至全年涨幅小幅超 过当前全球股市最热门投资主题——存储芯片这一主题的市场份额与市值领军者美光(MU.US)。华尔街 知名投资机构Piper Sandler近日发布研报称，维持对于Arrowhead Pharmaceuticals, Inc.的"增持"股票评 级，同时还将该股的目标价格从70美元上调至100美元。截至上周美股收盘，该公司股价收于64.560美 元，意味着短期到中期潜在涨幅高达55%。 Piper Sandler予以Arrowhead Pharmaceuticals的100美元这一12个月内无比强劲的看涨目标价位，堪称对 于当前处于回调阶段的全球创新药领域的一针重磅强心剂。今年以来Arrowhead Pharmaceuticals股价表 现不佳，年内迄今跌近3%，大幅跑输标普500指数。 专注于"基因沉默"的Arrowhead Pharmaceuticals是何方神圣 ...

2025年累计涨幅高达253%的Arrowhead Pharmaceuticals,Inc.(ARWR.US)是2025年美股市场表现最好的20 只股票之一，其涨幅远超"AI芯片霸主"英伟达(NVDA.US)，甚至全年涨幅小幅超过当前全球股市最热 门投资主题——存储芯片这一主题的市场份额与市值领军者美光(MU.US)。华尔街知名投资机构Piper Sandler近日发布研报称，维持对于Arrowhead Pharmaceuticals,Inc.的"增持"股票评级，同时还将该股的 目标价格从70美元上调至100美元。截至上周美股收盘，该公司股价收于64.560美元，意味着短期到中 期潜在涨幅高达55%。 Piper Sandler予以Arrowhead Pharmaceuticals的100美元这一12个月内无比强劲的看涨目标价位，堪称对 于当前处于回调阶段的全球创新药领域的一针重磅强心剂。今年以来Arrowhead Pharmaceuticals股价表 现不佳，年内迄今跌近3%，大幅跑输标普500指数。 Redemplo是一种非常新颖的创新药，属于创新的基于RNA干扰(RNAi)技术的首次或领先药物之一，在 ...

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is presented as a critical player in the AI energy sector, owning essential energy infrastructure assets that are poised to benefit from the increasing energy demands of AI [3][7] - This company is characterized as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and positioned to capitalize on the onshoring trend driven by tariffs [5][6] Financial Position - The company is noted for being debt-free and holding a significant cash reserve, amounting to nearly one-third of its market capitalization, which provides a strong financial foundation [8][10] - It also has a substantial equity stake in another AI-related venture, offering investors indirect exposure to multiple growth opportunities without the associated premium costs [9] Market Trends - The article discusses the broader trends of AI, energy, tariffs, and onshoring, emphasizing the interconnectedness of these sectors and the company's strategic positioning within them [6][14] - The influx of talent into the AI sector is mentioned, indicating a continuous stream of innovation and advancements that will drive future growth [12] Future Outlook - The potential for significant returns is highlighted, with projections suggesting a possible 100% return within 12 to 24 months for investors who act quickly [15][19] - The company is described as undervalued, trading at less than seven times earnings, which presents a compelling investment opportunity in the context of the AI and energy sectors [10][11]

Company Overview - Arrowhead Pharmaceuticals is a clinical-stage biotechnology company focused on developing RNA interference (RNAi) therapeutics targeting serious diseases, particularly liver disorders and cardiometabolic conditions [8][9] - The company has a robust clinical pipeline that includes drug candidates such as ARO-AAT, ARO-APOC3, and JNJ-3989, and generates revenue through licensing agreements, research collaborations, and milestone payments from pharmaceutical partners [8][9] - As of the most recent financial data, Arrowhead Pharmaceuticals has 609 employees, a total revenue of $829.45 million, and a net income of -$1.63 million for the trailing twelve months (TTM) [5] Recent Developments - On December 17, 2025, CEO Christopher Richard Anzalone sold 85,000 shares of Arrowhead Pharmaceuticals for approximately $5.44 million, which aligns with his historical trading activity [1][2][7] - The sale occurred during a period of significant stock performance, with a total return of 249.37% over the prior year, and the stock closing at $64.80 on the transaction date [2][12] - The timing of the sale suggests it was part of a tax-planning strategy related to performance awards that vested in December [4][11] Market Context - The stock price surged following the FDA approval of Arrowhead's first medicine, plozasiran (marketed as Redemplo), for treating familial chylomicronemia syndrome, reaching a 52-week high of $76.76 on January 6 [12] - The current elevated price-to-sales ratio indicates that while it may be a good time for shareholders to sell, waiting for a price drop before reinvesting could be a more strategic approach [13] Competitive Edge - Arrowhead Pharmaceuticals' competitive advantage lies in its proprietary RNAi delivery technologies, which enable the treatment of previously untreatable diseases [10]

Core Viewpoint - The article discusses the revolutionary shift in small nucleic acid drugs, highlighting their potential to transition from symptomatic treatment to addressing root causes, marking a significant advancement in the pharmaceutical industry [4]. Group 1: Small Nucleic Acid Drug Technology - Small nucleic acid drugs (siRNA, ASO, etc.) are considered the "third wave" of drug development, following small molecules and antibody drugs [4]. - These drugs are not limited by their molecular structure and can target a broader range of disease pathways, significantly increasing the probability of successful drug development [4]. - Current advancements in delivery technologies and chemical modifications have led to extended half-lives for these drugs, improving patient compliance in chronic disease management [4]. Group 2: Market Growth and Commercialization - The global small nucleic acid drug market is projected to reach $20.6 billion by 2029 and $54.9 billion by 2034, with a compound annual growth rate (CAGR) of 21.6% [5]. - Major players like Alnylam, Ionis, and Arrowhead are leading the market, with multinational corporations (MNCs) such as Novartis and Roche investing heavily in this sector [5]. - Alnylam's core product, Amvuttra, is expected to exceed $2 billion in sales by 2025, indicating strong market performance [6]. Group 3: Technological Breakthroughs - Arrowhead has developed RNAi therapies targeting various diseases through its TRiM platform, expanding the application of small nucleic acid drugs beyond liver diseases [7]. - Avidity Biosciences has made significant progress in muscle tissue delivery using antibody-oligonucleotide conjugates (AOC) technology, indicating a broader therapeutic potential [7]. Group 4: China's Small Nucleic Acid Drug Industry - The Chinese small nucleic acid drug industry is experiencing a qualitative leap, overcoming delivery patent barriers and demonstrating global competitiveness in target selection and molecular design [8]. - A complete industrial chain has emerged in China, with domestic raw materials achieving localization, thus reducing R&D costs [8]. - Significant business development (BD) transactions have occurred, including a record $5 billion deal between Wobang Pharmaceutical and Novartis, showcasing the global recognition of Chinese innovation [8].