Arrowhead Pharmaceuticals (ARWR) Climbed Today, What Is Behind The Move?

Arrowhead Pharmaceuticals (ARWR) just picked up a fresh regulatory catalyst, with the FDA allowing plozasiran into its STAR pilot program tied to an upcoming sNDA for severe hypertriglyceridemia.

Arrowhead Pharmaceuticals has packed a lot into 2026 already, from advancing multiple RNAi programs to securing this FDA STAR pilot entry for plozasiran. Yet the 1 month share price return is down about 24% and the 90 day share price return is lower by roughly 15%, even after a recent 1 day gain of just over 3% to US$62.75. That short term slide sits against a very different backdrop, with the 1 year total shareholder return around 77% and the 3 year total shareholder return close to 136%, while the 5 year total shareholder return is slightly negative. Overall, the picture is of strong recent momentum that has cooled sharply in the last month as investors reassess both the opportunity and the risks around Arrowhead’s pipeline and regulatory milestones.

Scan beyond Arrowhead Pharmaceuticals and see how other late stage biotech stories stack up in our hand picked 20 high quality undiscovered gems.

Arrowhead Pharmaceuticals now trades at a steep discount to both analyst targets and intrinsic value estimates after that sharp pullback. Is the market rightly cautious about the pipeline risk, or has it moved too far in the other direction?

Most Popular Narrative: 43% Undervalued

With Arrowhead Pharmaceuticals closing at $62.75 versus a widely followed fair value of about $110.18, the narrative framework sees a large gap that rests on how investors view plozasiran, the broader RNAi pipeline, and the use of higher growth and margin assumptions under a 7.59% discount rate.

Arrowhead's advancing late-stage clinical pipeline, especially the expected launch of plozasiran for FCS and SHTG, plus pivotal studies for three other RNAi therapies targeting major unmet needs, positions the company to capitalize on rising demand for innovative treatments driven by an aging population and increasing prevalence of chronic and genetic diseases, which could significantly accelerate revenue growth as approvals and launches materialize.

See why 14 investors see Arrowhead Pharmaceuticals as 43% undervalued.

Result: Fair Value of $110.18 (UNDERVALUED)

Still, a setback in late stage plozasiran or zodasiran trials, or weaker than expected partner milestone payments, would quickly challenge this view that the stock is 43% undervalued.

Find out about the key risks to this Arrowhead Pharmaceuticals narrative.

Next Steps

Mixed signals around Arrowhead Pharmaceuticals can be confusing, so move quickly, review the data, and weigh both sides by checking the 3 key rewards and 2 important warning signs.

Looking for more investment ideas beyond Arrowhead Pharmaceuticals?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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