Arrowhead Pharmaceuticals (ARWR) Q1 2026 earnings summary

Executive summary

• Achieved first regulatory approvals for REDEMPLO in the U.S., Canada, and China for FCS, marking transition to a commercial-stage company and the first FDA-approved product.

• Launched REDEMPLO in the U.S. with encouraging early prescription trends, positive payer feedback, and over 100 prescriptions received.

• Advanced cardiometabolic and CNS pipelines, including new clinical programs, proprietary delivery platforms, and promising early obesity program results.

• Strengthened financial position with $1.33 billion in gross proceeds from licensing, milestones, and financings, including major public offerings.

• Closed major licensing deals with Sarepta and Novartis, each providing substantial upfront and milestone payments.

Financial highlights

• Revenue for the quarter was $264.0 million, up from $2.5 million in the same quarter last year, primarily from licensing collaborations with Sarepta ($229.5M) and Novartis ($34.2M).

• Net income attributable to shareholders was $30.8 million, or $0.22 per share, reversing a net loss of $173.1 million, or $1.39 per share, in the prior year.

• Operating income was $40.8 million, compared to a loss of $161.4 million in the prior year.

• Operating expenses increased to $223 million, up $59 million year-over-year, driven by higher R&D and SG&A costs.

• Cash and investments totaled $917 million at quarter end, excluding additional milestone and financing proceeds received post-quarter.

Outlook and guidance

• Anticipates commercial sales growth for REDEMPLO and potential launches in Canada, EU, and the U.K. in 2026.

• Expects Q3 2026 readout of phase III SHASTA-3 and SHASTA-4 studies for plozasiran in SHTG, targeting a $3–4 billion opportunity.

• Interim data for ARO-DimerPA and additional obesity and CNS program data expected in the second half of 2026.

• Sufficient liquidity to fund operations for at least the next twelve months, supported by recent equity and convertible note offerings totaling $930 million in gross proceeds.

• Eligible to receive up to $15.3 billion in additional milestone payments from partnered programs.