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ARC-520 Tolerability and Mechanism - ARC-520 has been very well tolerated in 84 humans with single doses, showing no serious or severe adverse events or discontinuations due to AEs[15, 16] - Chimpanzee studies showed that ARC-520 leads to deep HBsAg reduction, with HBeAg(+) chimps showing a mean peak knockdown of 99% (2 log) and HBeAg(-) chimps showing 81% (0.7 log)[17] - The DPC platform is potent and consistent, de-risking ARC-520 and future candidates built on the same DPC, with HBeAg knockdown in HBeAg(+) patients reaching 92% (1.2 log) mean max KD and 98% (1.7 log) max KD after a single 4mg/kg dose[19] ARC-520 Efficacy and Target Population - ARC-520 achieved a 99% (1.9 log) maximum knockdown of HBsAg after a single dose, the highest ever reported in a human using RNAi[20] - In NUC-naïve HBeAg(+) patients, ARC-520 administration resulted in a mean max HBsAg knockdown of 1.05 log, with a maximum knockdown of 99% (1.9 log) through Day 15[21] - In the US, 95% of estimated CHB patients are NUC-naïve, with approximately 50% estimated to be HBeAg(+), making them an important target population for ARC-520[25] - In Western Europe, 90% of estimated CHB patients are NUC-naïve, with approximately 33% estimated to be HBeAg(+)[25] Integrated DNA and ARC-521 - Integrated DNA becomes an increasingly important source of HBsAg as cccDNA is reduced, influencing the response to ARC-520[19] - Two HBeAg neg chimps treated with siRNA targeting integrated DNA showed a mean nadir of HBsAg reduction of 99.8% after switching from ARC-520, representing an additional 2 log decline[77] - The company nominated an additional candidate, ARC-521, optimized to include integrant KD, with an IND or equivalent expected by mid-year 2016[29, 30]

Arrowhead Pharmaceuticals (ARWR) FY Conference Summary Company Overview - **Company**: Arrowhead Pharmaceuticals (ARWR) - **Event**: FY Conference held on June 09, 2025 - **Key Speakers**: James Hamilton (CMO and Head of R&D), Vince Ambulone (VP of Finance and IR) Key Points Industry Context - Arrowhead is positioned in the biotechnology sector, focusing on RNA interference (RNAi) therapeutics, particularly for rare diseases and metabolic disorders [5][6][8]. Financial Health - The company has successfully augmented its balance sheet, securing funding through 2028, which allows for multiple potential independent commercial launches [7][8][66]. Product Pipeline - **Plazasiran**: - First independent commercial launch anticipated with a PDUFA date set for November 18, 2025 [5][6]. - Targeting triglyceride lowering for familial chylomicronemia syndrome (FCS) and severe hypertriglyceridemia (SHTG) [6][20]. - Positive data from the PALISADE Phase III study supports its efficacy [6]. - **Ongoing Studies**: - Full enrollment for Phase III studies expected by mid-2025, with completion and subsequent launch into SHTG anticipated in 2026 [7][20]. - Additional studies targeting rare muscular diseases and obesity assets are also in the pipeline, with readouts expected later in 2025 [8]. Competitive Landscape - Arrowhead acknowledges the competitive market for triglyceride-lowering therapies, particularly with Ionis Pharmaceuticals' product, Olezarsen [19][20]. - The company believes that having multiple players in the market will enhance disease state education and patient access [18][20]. Regulatory and Market Strategy - Arrowhead is confident in its communications with the FDA regarding the approval process for Plazasiran, despite the uncertainties in the biotech sector [11][12]. - The company is preparing for potential pricing strategies, considering market dynamics and the competitive landscape [22][23]. Clinical Trials and Safety - The SHASTA-5 study is designed to assess pancreatitis risk in high-risk patients, which is crucial for payer acceptance, especially in European markets [27][28][36]. - Arrowhead is focused on demonstrating a material benefit in reducing acute pancreatitis events to enhance reimbursement prospects [28][37]. Future Developments - Arrowhead is exploring combination therapies with existing GLP-1 agents to enhance weight loss outcomes and improve patient adherence [60][62]. - The company is also advancing its CNS platform, targeting ATAXN2 and tau expression, with clinical trials expected to commence within the next 6-12 months [65]. Business Development - Arrowhead plans to pursue additional partnerships and collaborations to leverage its discovery engine and expand its pipeline [66][68]. - The company is open to product and discovery partnerships, particularly in the cardiometabolic space, to support its commercialization efforts [68]. Conclusion Arrowhead Pharmaceuticals is strategically positioned for growth with a robust pipeline and a strong financial foundation. The upcoming launch of Plazasiran and ongoing studies in various therapeutic areas highlight the company's commitment to addressing unmet medical needs in the biotechnology sector. The competitive landscape and regulatory environment will be critical factors influencing Arrowhead's market success in the coming years.

Arrowhead Pharmaceuticals (ARWR) 2025 Conference Summary Company Overview - Arrowhead Pharmaceuticals operates as a platform company with a hybrid model, focusing on multiple drug programs rather than a single product. The company anticipates having three to four drugs on the market by 2028, with two potentially in partnership and two owned by Arrowhead [5][6]. Key Drug Developments - **Plazasiran**: This drug is currently pending approval from the FDA and EMA for treating APOC3. The PDUFA date is set for November, and no advisory committee is expected [8][9]. The company is optimistic about its data and believes it has a strong package for approval [10][11]. - **Pricing Strategy**: In the U.S., pricing is expected to be competitive with Ionis, while the European market remains uncertain due to varying national payer assessments [15][16]. Clinical Trials and Market Opportunities - **FCS and SHTG Studies**: Arrowhead is conducting three Phase 3 studies for familial chylomicronemia syndrome (FCS) and severe hypertriglyceridemia (SHTG). Enrollment is expected to complete by summer 2025, with the last patient visit anticipated in summer 2026 [20][21]. The market for SHTG is significantly larger, estimated at around 3 million patients in the U.S. [18]. - **Statistical Significance**: The Phase 3 studies are designed to be overpowered, requiring minimal triglyceride reduction to achieve statistical significance [24][26]. The company aims for a 50-60% reduction based on Phase 2 results [24]. Safety and Efficacy - Arrowhead is focused on safety data collection as part of its Phase 3 program, which is crucial for regulatory compliance [26]. The company is also conducting a dedicated pancreatitis outcome study to address payer concerns [30]. CNS Programs - Arrowhead is developing a proprietary transferrin binding approach for subcutaneous delivery of siRNAs to cross the blood-brain barrier, targeting conditions like Alzheimer's and Parkinson's [48][50]. The first target is MAPT, which has been historically challenging for big pharma [51][52]. Obesity Programs - The company is advancing its Inhibin E and ALK7 programs, with initial data expected later this year. The focus is on achieving weight loss without muscle loss and improving long-term weight management [56][76]. The combination of Inhibin E with tirzepatide is also being explored [66]. Business Development and Future Outlook - Arrowhead anticipates more business development deals as the industry shifts towards siRNA technology. The company has a productive preclinical group and plans to partner with other firms for further drug development [78][79]. Key events for investors include upcoming data releases and potential partnerships [78][80].

Summary of Arrowhead Pharmaceuticals (ARWR) 2025 Conference Call Company Overview - Arrowhead Pharmaceuticals is focused on developing RNAi-based therapeutics with a strong pipeline aimed at addressing severe diseases, particularly in the areas of hypertriglyceridemia and alpha-1 antitrypsin deficiency [2][3] Key Developments - The company has solidified its balance sheet and has capital projected to last until 2028, which is crucial for upcoming drug launches [3][4] - Planned drug launches include: - **Plazasiran** for familial chylomicronemia syndrome (FCS) expected in late 2025 - **Fazisiran** for alpha-1 antitrypsin deficiency (AAT) in 2027-2028 - **Olpassiran** with Amgen also anticipated around the same timeframe [4] Drug Pipeline Insights - **Plazasiran**: - First drug from Arrowhead's pipeline expected to receive FDA approval with a PDUFA date set for November 18, 2025 - Demonstrated significant triglyceride reduction in clinical trials, with 100% of patients showing lowered triglycerides and an average reduction of around 80% from baseline [6][7] - Safety profile appears favorable, with no anticipated advisory committee meeting [6][7] - **Shasta Five Trial**: - A dedicated trial to assess the acute pancreatitis benefit of plazasiran, targeting patients with triglycerides above 1000 mg/dL and a history of pancreatitis [24][25] - This trial is not required for regulatory approval but is seen as beneficial for payer acceptance [25] Competitive Landscape - The market for severe hypertriglyceridemia is viewed as underserved, with Arrowhead positioned to be among the first to provide effective treatments [16][17] - The company acknowledges competition but believes that having multiple players will enhance market education and acceptance [19] Safety and Efficacy Considerations - Concerns regarding HbA1c levels were addressed, with the company viewing any increases as a biological signal rather than a safety issue [22][23] - The company is focused on ensuring that the drug's efficacy translates into meaningful clinical benefits for patients [22][23] Obesity Pipeline - Arrowhead is pursuing dual targets (inhibin E and ALK7) for obesity treatment, with the rationale that both pathways could induce lipolysis and fat burning [28][30] - The company plans to evaluate which target performs better in human trials before advancing one into later-stage development [35] Alpha-1 Antitrypsin Program - The collaboration with Takeda is seen as transformative, with expectations for full enrollment in the pivotal trial by the end of the year [74][75] - The drug is anticipated to significantly impact the treatment landscape for alpha-1 antitrypsin deficiency, with a profit-sharing model in place [78] Business Development Strategy - Arrowhead aims to pursue additional business development deals to extend its runway, with a focus on maintaining a balance between new partnerships and internal drug development [79][80] - The company is open to exploring discovery components in future deals to enhance its pipeline [80] Conclusion - Arrowhead Pharmaceuticals is strategically positioned with a robust pipeline and a clear focus on addressing significant unmet medical needs in hypertriglyceridemia and alpha-1 antitrypsin deficiency, while also exploring opportunities in obesity treatment and maintaining a proactive approach to business development [2][3][4][79]

Summary of Arrowhead Pharmaceuticals (ARWR) Conference Call Company Overview - **Company**: Arrowhead Pharmaceuticals (ARWR) - **Event**: BofA Annual Healthcare Conference - **Date**: May 14, 2025 Key Points Strategic Developments - The recent deal with Sarepta has significantly changed Arrowhead's strategic outlook, allowing the company to focus on core assets and reducing dependence on capital markets for a period of time [2][4][5] - The core assets from the Sarepta deal include two muscle assets, ARO DM1 and ARO DUX4, which Arrowhead is excited about due to Sarepta's expertise in drug approval [3][4] Pipeline and Research Focus - Arrowhead has a strong presence in cardiometabolic diseases, with ongoing projects targeting APOC3 and obesity [6][7] - The company is expanding its capabilities to address various tissue types, including adipocytes, and plans to introduce new metabolic targets in the clinic next year [8][9][10] FCS and SHTG Opportunities - The company views the FCS (Familial Chylomicronemia Syndrome) market as a gateway to the larger SHTG (Severe Hypertriglyceridemia) opportunity, with an estimated 3-4 million patients in the U.S. having triglyceride levels above 500 [12][14] - Arrowhead's Phase 3 data showed an 80% reduction in triglycerides from baseline, which is significantly higher than competitors [13][19] Competitive Landscape - Arrowhead believes it has a competitive edge over Ionis in the FCS market due to its superior triglyceride reduction capabilities and less frequent dosing [20][19] - The company is preparing for potential payer restrictions based on patient profiles but expects to address a broad patient population [23][24] Clinical Trials and Timelines - Arrowhead is currently enrolling patients for multiple Phase 3 studies, with expectations to launch in the SHTG market by 2027 [33][35] - The company has sufficient cash to sustain operations until 2028, allowing for multiple product launches around that time [35] Obesity Research - Arrowhead is exploring the ALK7 and Inhibin E pathways for obesity treatment, with promising animal data indicating high-quality weight loss without caloric restriction [42][43] - The company is considering combination therapies with existing GLP-1 drugs to enhance weight loss outcomes [51][52] Neuromuscular Programs - Arrowhead is advancing its neuromuscular programs, particularly ARO DM1 and ARO DUX4, with data disclosures expected this year [59][61] - The company anticipates triggering $300 million in milestone payments based on dosing in the DM1 study [62] Safety and Efficacy Considerations - Arrowhead emphasizes the importance of safety in drug development, aiming to use lower doses compared to competitors while maintaining efficacy [63][64] - The potential for subcutaneous administration of their drugs could be a significant advancement in the field [65][66] Additional Insights - Arrowhead is optimistic about the educational aspect of the market, believing that both it and Ionis can benefit from increased awareness of triglyceride management [18] - The company is open to exploring various avenues for funding future trials, including business development and partnerships [38] This summary encapsulates the key discussions and insights from the Arrowhead Pharmaceuticals conference call, highlighting the company's strategic direction, pipeline developments, and competitive positioning in the biotech landscape.

Financial Data and Key Metrics Changes - The net income for Q2 2025 was $370.4 million, or $2.75 per share, compared to a net loss of $125.3 million, or $1.02 per share, for Q2 2024 [49] - Revenue for Q2 2025 was $542.7 million, with no revenue recorded in Q2 2024, primarily due to the license and collaboration agreement with Sarepta [49][50] - Total operating expenses for Q2 2025 were $161.5 million, up from $126.2 million in Q2 2024, driven by increased costs associated with the clinical pipeline [53] Business Line Data and Key Metrics Changes - The company is preparing for the launch of Flodasiran, targeting severe hypertriglyceridemia (SHTG) with a PDUFA date set for November 18, 2025 [10][55] - Flodasiran has shown a reduction in triglycerides of about 80% from baseline in clinical studies, with 75% of patients achieving levels below 880 mg/dL [11][41] - The company is also advancing its obesity candidates ARO INHBE and ARO ALK7, with initial data expected by the end of 2025 [16][45] Market Data and Key Metrics Changes - The company has engaged with payers representing a significant number of US covered lives, delivering content on the clinical value of Flodasiran [39] - The market research indicates strong interest in Flodasiran's potential to reduce triglycerides and acute pancreatitis risk [40] Company Strategy and Development Direction - Arrowhead aims to transition from a development stage to a commercial stage with the planned launch of Flodasiran [8] - The company has a robust pipeline with multiple independent and partner launches expected over the next few years, supported by a strong balance sheet and access to non-dilutive capital [9][22] - The focus is on expanding its commercial presence while leveraging its RNAi technology platform for future drug development [21][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial strength and the potential for significant value creation despite current biotech market challenges [9][22] - The company anticipates that the approval of Flodasiran will mark a major advancement in treatment options for patients with familial chylomicronemia syndrome [26][43] Other Important Information - The company closed a significant collaboration agreement with Sarepta Therapeutics, bringing in $500 million upfront and additional potential milestone payments [22][23] - Arrowhead's cash and investments totaled $1.1 billion as of March 31, 2025, providing a strong financial foundation for future growth [54] Q&A Session Summary Question: What are the expectations for initial monotherapy and potential combo data for ARO INHBE and ARO ALK7? - Management indicated that they are not providing specific guidance on expectations but are looking forward to seeing data on weight loss and body composition [58][60] Question: How robust is the pancreatitis data for Flodasiran? - Management noted that they have not had labeling negotiations with the FDA yet and emphasized the importance of triglyceride reduction in relation to pancreatitis risk [66][70] Question: What are the expectations for acute pancreatitis rates in the SHTG population? - Management expects the baseline for acute pancreatitis to be around 2000 mg/dL, similar to the FCS population [80] Question: What is the potential for ARO C3 and ARO CFB in complement-mediated diseases? - Management is open to partnerships for these compounds but believes they could also build a commercial presence if necessary [84][86]

Arrowhead Pharmaceuticals (ARWR) Q2 2025 Earnings Call May 12, 2025 04:30 PM ET Speaker0 Ladies and gentlemen, welcome to the Arrowhead Pharmaceuticals Conference Call. Throughout today's recorded presentation, all participants will be in a listen only mode. After the presentation, there will be an opportunity to ask questions. I will now hand the conference over to Vince Anzalone, Vice President of Investor Relations for Arrowhead. Please go ahead, Vince. Speaker1 Thank you, and good afternoon, everyone. S ...

[Fiscal 2025 Second Quarter Results](index=1&type=section&id=Arrowhead%20Pharmaceuticals%20Reports%20Fiscal%202025%20Second%20Quarter%20Results) [Business and Strategic Overview](index=1&type=section&id=Business%20and%20Strategic%20Overview) Arrowhead is financially strong, anticipating plozasiran's 2025 launch, funded into 2028 by Sarepta, and leveraging TRiM™ technology - The company is on schedule to launch plozasiran this year for familial chylomicronemia syndrome (FCS), pending regulatory approval[2](index=2&type=chunk) - Following the agreement with Sarepta Therapeutics, Arrowhead is funded into 2028 with no current need for additional cash from equity raises[2](index=2&type=chunk) - The company's TRiM™ technology platform is considered a key asset, providing opportunities for additional capital from business development in areas outside its core commercial focus[2](index=2&type=chunk) [Key Operational Highlights](index=1&type=section&id=Selected%20Recent%20Events) Key operational highlights include the Sarepta collaboration, plozasiran NDA acceptance, positive pipeline data, and a CFO transition [Sarepta Therapeutics Collaboration](index=1&type=section&id=Sarepta%20Therapeutics%20Collaboration) The Sarepta Therapeutics collaboration involves substantial upfront and potential future payments Sarepta Therapeutics Agreement Financials | Payment Type | Amount | | :--- | :--- | | **Upfront Consideration** | **$825 million** ($500M cash, $325M equity) | | Future Payments | $250 million (over five years) | | Near-Term Payments | Up to $300 million | | Potential Milestones | Approximately $10 billion | [Plozasiran NDA for Familial Chylomicronemia Syndrome (FCS)](index=1&type=section&id=Plozasiran%20NDA%20for%20Familial%20Chylomicronemia%20Syndrome%20%28FCS%29) FDA accepted plozasiran NDA for FCS, with November 2025 PDUFA date, supported by positive Phase 3 data - The FDA has accepted the New Drug Application (NDA) for plozasiran for the treatment of familial chylomicronemia syndrome (FCS)[3](index=3&type=chunk) - The PDUFA action date is set for November 18, 2025, and the FDA is not currently planning to hold an advisory committee meeting[3](index=3&type=chunk) - The NDA submission is supported by positive findings from the Phase 3 PALISADE study, which met its primary and all key secondary endpoints, including significant reductions in triglycerides and pancreatitis incidence[3](index=3&type=chunk) [Pipeline and Preclinical Developments](index=2&type=section&id=Pipeline%20and%20Preclinical%20Developments) Positive preclinical data for obesity treatments and ARO-C3 Phase 1/2 results for IgA nephropathy were announced - Presented positive preclinical data for two potential obesity treatments, ARO-INHBE and ARO-ALK7, which may preserve lean muscle mass better than current therapies[4](index=4&type=chunk) - Announced positive topline results from a Phase 1/2 study of ARO-C3 in patients with IgA nephropathy, showing deep and sustained reductions in complement activity and a **41% mean reduction in proteinuria by week 24**[4](index=4&type=chunk) [Management Changes](index=2&type=section&id=Management%20Changes) CFO Ken Myszkowski will retire effective May 13, 2025, and will be succeeded by Daniel Apel - Effective May 13, 2025, CFO Ken Myszkowski will retire after 16 years and be succeeded by Daniel Apel[4](index=4&type=chunk) [Financial Performance](index=3&type=section&id=CONSOLIDATED%20CONDENSED%20FINANCIAL%20INFORMATION) Arrowhead reported Q2 FY2025 net income of **$370.4 million** from **$542.7 million** revenue, increasing cash and investments to **$1.1 billion** [Statement of Operations](index=3&type=section&id=Statement%20of%20Operations) The statement of operations reflects a significant increase in revenue and a turnaround to net income Operating Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Revenue** | **$542,709** | **$—** | | Research and development | $133,102 | $101,122 | | General and administrative | $28,405 | $25,069 | | **Operating income (loss)** | **$381,202** | **($126,191)** | | **Net income (loss) attributable to Arrowhead** | **$370,445** | **($125,300)** | | **Diluted Net income (loss) per share** | **$2.75** | **($1.02)** | [Financial Position](index=3&type=section&id=Financial%20Position) The company's financial position significantly strengthened, with total cash resources increasing to over **$1 billion** Financial Position Summary (in thousands) | Metric | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total cash resources (cash and investments)** | **$1,097,409** | **$680,961** | | Total Assets | $1,573,498 | $1,139,802 | | Total Liabilities | $889,273 | $948,739 | | **Total Arrowhead Stockholders' Equity** | **$683,321** | **$185,444** |

Part I [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The unaudited consolidated financial statements show significant asset growth and a shift to net income, primarily due to the Sarepta collaboration [Consolidated Financial Statements (Tables)](index=3&type=section&id=Consolidated%20Financial%20Statements) Key financial statements reveal a substantial increase in total assets, a shift to net income, and positive operating cash flow, largely driven by the Sarepta agreement Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and restricted cash | $185,709 | $102,685 | | Available-for-sale securities | $911,700 | $578,276 | | **Total Assets** | **$1,573,498** | **$1,139,802** | | Total current liabilities | $220,541 | $103,168 | | Total long-term liabilities | $668,732 | $845,571 | | **Total Liabilities** | **$889,273** | **$948,739** | | **Total Stockholders' Equity** | **$683,321** | **$185,444** | Consolidated Statement of Operations Highlights (in thousands, except per share amounts) | Metric | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Revenue | $545,209 | $3,551 | | Total operating expenses | $325,419 | $266,287 | | Operating income (loss) | $219,790 | $(262,736) | | Net income (loss) attributable to Arrowhead | $197,360 | $(258,164) | | Diluted net income (loss) per share | $1.52 | $(2.24) | Consolidated Statement of Cash Flows Highlights (in thousands) | Activity | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $313,781 | $(210,217) | | Net cash used in investing activities | $(343,303) | $(204,098) | | Net cash provided by financing activities | $113,016 | $431,044 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail significant financial events including the Sarepta collaboration revenue, debt prepayment, facility completion, and clinical pipeline advancements - The company's drug development pipeline includes multiple candidates, with **plozasiran, olpasiran (Amgen), and fazirsiran (Takeda)** in Phase 3 trials[20](index=20&type=chunk) - A global licensing and collaboration agreement with Sarepta resulted in a **$500 million upfront payment** and a **$325 million equity investment**, with eligibility for up to approximately **$10.0 billion** in future potential milestone payments[26](index=26&type=chunk)[54](index=54&type=chunk) - An NDA was submitted to the FDA and accepted for filing, with a PDUFA action date of **November 18, 2025**[26](index=26&type=chunk) - The company recognized **$542.7 million** in revenue from the Sarepta agreement, with the total transaction price estimated at **$904.9 million**, including an **$83.6 million** equity premium[60](index=60&type=chunk)[66](index=66&type=chunk) - The build-out of the manufacturing facility in Verona, Wisconsin was completed, reclassifying **$172.9 million** from construction in progress to buildings[68](index=68&type=chunk) - The company made prepayments of **$151.6 million** on its credit facility during the second quarter of fiscal 2025, following funds from the Sarepta agreement[119](index=119&type=chunk)[123](index=123&type=chunk) [Management's Discussion and Analysis (MD&A)](index=25&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the shift to profitability driven by Sarepta revenue, increased R&D and G&A expenses, and strong liquidity [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Results of operations show a significant revenue surge and shift to operating income, driven by the Sarepta agreement, alongside increased R&D and G&A expenses Financial Results Comparison (in thousands) | Metric | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Revenue | $545,209 | $3,551 | | R&D Expense | $270,104 | $217,613 | | G&A Expense | $55,315 | $48,674 | | Operating Income (Loss) | $219,790 | $(262,736) | | Net Income (Loss) Attributable to Arrowhead | $197,360 | $(258,164) | - R&D candidate costs increased by **$54.0 million (57%)** due to pipeline progression into and through clinical trials[157](index=157&type=chunk) - G&A professional and outside services expenses increased by **$9.4 million (82%)**, primarily due to commercialization and business development efforts[165](index=165&type=chunk)[166](index=166&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains a robust liquidity position, primarily bolstered by the Sarepta agreement, deemed sufficient to fund operations for at least the next twelve months - As of March 31, 2025, the company held **$185.7 million** in cash, cash equivalents, and restricted cash, and **$911.7 million** in available-for-sale securities[173](index=173&type=chunk) - The company received a **$500 million** upfront payment and **$325 million** from a stock purchase under the Sarepta agreement, which closed in February 2025[176](index=176&type=chunk) - Cash flow from operating activities was **$313.8 million**, a significant turnaround from a **$210.2 million** use of cash in the prior-year period, primarily due to the Sarepta payment[177](index=177&type=chunk) - The company believes its current financial resources are sufficient to fund operations for at least the next **twelve months**[177](index=177&type=chunk) [Market Risk Disclosures](index=32&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) There have been no material changes in the company's exposure to market risk since the last Annual Report on Form 10-K - There has been no material change in the Company's exposure to market risk from that described in its Annual Report on Form 10-K for the year ended September 30, 2024[180](index=180&type=chunk) [Controls and Procedures](index=32&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective at the reasonable assurance level as of the end of the quarter[182](index=182&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[183](index=183&type=chunk) Part II [Legal Proceedings & Risk Factors](index=33&type=section&id=Item%201.%20Legal%20Proceedings%20%26%20Item%201A.%20Risk%20Factors) No material developments in legal proceedings or changes to risk factors have occurred since the last Annual Report on Form 10-K - There have been no material developments in legal proceedings since the last annual report[186](index=186&type=chunk) - There have been no material changes from the risk factors identified in the Company's Annual Report on Form 10-K for the year ended September 30, 2024[187](index=187&type=chunk) [Other Information](index=33&type=section&id=ITEM%205.%20OTHER%20INFORMATION) The company entered into new executive severance agreements and established a transition plan for the retiring CFO - In May 2025, the company entered into Severance and Change of Control Agreements with executives **Christopher Anzalone, Daniel Apel, Patrick O'Brien, and James Hamilton**[191](index=191&type=chunk) - A transition agreement was signed with retiring CFO **Ken Myszkowski**, effective May 13, 2025, who will remain an employee through **January 31, 2026**, to assist with the transition[194](index=194&type=chunk)