Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR), based in Pasadena, California, focuses on developing RNA interference-based therapeutics for intractable diseases. The company continued its trajectory of growth in its fiscal 2025 second quarter, reporting a net income of $370.4 million or $2.75 per diluted share, compared to a net loss of $125.3 million or $1.02 per share in the same quarter last year. Revenue for Q2 2025 totaled $542.7 million, a significant increase from no revenue reported in Q2 2024, primarily attributed to a licensing agreement with Sarepta Therapeutics.

Arrowhead’s operating income for the quarter was $381.2 million. Its operating expenses increased to $161.5 million from $126.2 million in the prior year, largely due to escalating costs associated with the advancement of its clinical pipeline. The company recorded net cash provided by operating activities of $460.1 million in the recent quarter, compared to a net cash used of $92.4 million in Q2 2024.

As of March 31, 2025, Arrowhead reported cash and investments totaling $1.1 billion. The company ended the quarter with 138.1 million shares outstanding. Arrowhead anticipates generating $90 million to $125 million in revenue over the next 12 months, solely from the revenue recognition of its initial fixed contract revenue from the collaboration agreement, with additional milestone payments from the Sarepta collaboration expected.

The recently closed collaboration with Sarepta, which amounted to $825 million, includes a $500 million upfront cash payment and a $325 million equity investment. Arrowhead stands to receive further milestone payments totaling around $300 million and potential royalties on commercial sales.

Arrowhead’s pipeline features a focus on plozasiran, which targets familial chylomicronemia syndrome (FCS). The U.S. Food and Drug Administration (FDA) has accepted the New Drug Application (NDA) for plozasiran, with a Prescription Drug User Fee Act (PDUFA) action date set for November 18, 2025. This represents a potential first commercial launch for the company within a year, pending regulatory approval.

The Phase 3 clinical trial data for plozasiran showed a statistically significant reduction in triglycerides and risks associated with pancreatitis. There has been ongoing enrollment in related Phase 3 studies designed to expand plozasiran’s indications for treating severe hypertriglyceridemia (SHTG). Arrowhead expects to complete enrollment for these studies this summer.

During the earnings call, Arrowhead’s leadership noted the strengths of its TRiM™ technology platform and emphasized its intention to drive commercialization efforts effectively. The company remains well-funded into 2028 and stated that it currently has no plans to raise further equity capital. Arrowhead maintains a strong balance sheet, positioning it for future growth and development within the industry.