Financial Data and Key Metrics Changes - The net loss for Q3 2025 was $175.2 million, or a loss of $1.26 per share, compared to a net loss of $170.8 million, or a loss of $1.38 per share in Q3 2024 [35] - Revenue for Q3 2025 was $27.8 million, primarily from the collaboration agreement with Sarepta, with $20 million from initial consideration and $7 million from reimbursement of collaboration costs [35][36] - Total operating expenses for Q3 2025 were $193.3 million, an increase from $176.1 million in the prior year, driven by higher R&D costs and SG&A expenses [37][38] - Cash and investments totaled $900.4 million as of June 30, 2025 [38] Business Line Data and Key Metrics Changes - The company achieved full enrollment in Phase 3 studies for clozaran, targeting severe hypertriglyceridemia, with approximately 2,200 patients enrolled across 24 countries [9][24] - The Phase 3 study for zodasiran began with the first patients enrolled in July 2025, targeting homozygous familial hypocholesterolemia [10][27] - The company is on track to meet its 2025 initiative of having 20 individual drug candidates in clinical studies or at market, with nine partnered and 11 wholly owned candidates [16] Market Data and Key Metrics Changes - The collaboration with Sarepta is expected to continue, providing capital to fund internal programs, despite Sarepta's recent setbacks [6] - The company is preparing for the US launch of clozaran, with a PDUFA date set for November 18, 2025, and has engaged with payers representing over 85% of US covered lives [29][30] Company Strategy and Development Direction - The company aims to create value through novel medicines, generate capital for development, and build a growth engine [7] - The focus is on expanding the cardiometabolic franchise and addressing unmet medical needs in various patient populations [14][31] - The company is building a commercial organization to support the launch of its products, particularly clozaran and zodasiran [21][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging biotech market but emphasized their commitment to serving patients and creating shareholder value [7] - The company is optimistic about the upcoming regulatory submissions and the potential for multiple product launches between late 2025 and 2028 [12][16] - Management expressed confidence in the collaboration with Sarepta and the potential for significant future milestones [6][36] Other Important Information - The company has made significant progress in sourcing new capital, including a $130 million upfront payment from Sanofi for rights to develop clozaran in Greater China [18][36] - The company expects to achieve a $100 million milestone payment from Sarepta and anticipates a second milestone of $200 million by the end of the year [36][38] Q&A Session Summary Question: How does the company view competitors' programs in triglyceride reduction? - Management stated that they focus on their own studies and have had positive data in their Phase 2 and Phase 3 studies, expecting to demonstrate best-in-class triglyceride reduction [44][46] Question: What are the baseline demographics for the Phase III studies? - Management confirmed that their baseline demographics are similar to those published by competitors, but emphasized the importance of focusing on adjudicated cases of pancreatitis rather than abdominal pain [52][56] Question: How does clozaran address unmet clinical needs? - Management highlighted that clozaran offers deep triglyceride reduction and is the only agent in a registrational Phase 3 study that has shown a statistically significant reduction in acute pancreatitis risk [61][62] Question: What is the expected pricing strategy for clozaran? - Management indicated that they expect clozaran to be priced higher than treatments for severe hypertriglyceridemia, but specific pricing details are still under consideration [65] Question: What is the expected timeline for the auto-injector for clozaran? - Management stated that the initial presentation will be a prefilled syringe, with development underway for an auto-injector expected to be available at launch or soon thereafter [88][89]

Financial Data and Key Metrics Changes - The net income for the quarter ended March 31, 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 the same quarter in 2024 [48] - Revenue for the quarter was $542.7 million, with no revenue recorded in the same quarter of the previous year, primarily due to the license and collaboration agreement with Sarepta [48][49] - Total operating expenses increased to $161.5 million from $126.2 million in the prior year, driven by increased costs associated with the clinical pipeline [51] Business Line Data and Key Metrics Changes - The company is preparing to launch Flodasiran, targeting severe hypertriglyceridemia (SHTG) with a PDUFA date set for November 18, 2025 [10][28] - Phase three studies for Flodasiran showed triglyceride reductions of about 80% from baseline in genetically defined patients, with significant results in reducing triglyceride levels below critical thresholds [11][41] - The company is also advancing obesity candidates ARO INHBE and ARO ALK7, with initial data expected by the end of 2025 [15][44] 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] - Market research indicates strong interest in Flodasiran's ability to reduce triglycerides and the risk of acute pancreatitis, with 75% of patients achieving triglyceride levels below 880 mg/dL [41] Company Strategy and Development Direction - Arrowhead Pharmaceuticals is transitioning from a development stage to a commercial stage, with plans for multiple product launches over the next few years [7][8] - The company aims to leverage its RNAi technology platform to address various diseases, including CNS disorders and obesity, while maintaining a strong pipeline of clinical assets [18][21] - The recent collaboration with Sarepta Therapeutics significantly strengthened the company's balance sheet, providing $500 million upfront and additional milestone payments [22][23] 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 market challenges in the biotech sector [9][24] - The company anticipates that the upcoming launches and ongoing clinical trials will drive substantial value for shareholders [53] Other Important Information - The company has a strong cash position of $1.1 billion as of March 31, 2025, providing funding through 2028 [52] - Arrowhead is actively pursuing regulatory approvals in multiple jurisdictions, including the US, Europe, Canada, and Japan [28] Q&A Session Summary Question: What are the expectations for initial monotherapy and potential combo data for ARO INHBE and ARO ALK7? - The company is not providing specific guidance on expectations but is optimistic based on compelling animal data showing weight loss and retention of lean muscle mass [56][57] Question: How robust is the pancreatitis data for Flodasiran? - Management indicated that they have not had labeling negotiations with the FDA yet, and the focus remains on how low triglycerides can be reduced in patients [64][66] Question: What are the expectations for acute pancreatitis rates in the SHTG population? - The baseline for acute pancreatitis is expected to be around 2000 mg/dL, similar to the FCS population [72][74]