Arrowhead Pharmaceuticals (ARWR) Q2 2025 earnings summary

Executive summary

• Achieved net income of $370.4 million for Q2 FY2025, reversing a net loss of $125.3 million in Q2 FY2024, driven by $542.7 million in revenue from the Sarepta collaboration and milestone payments from GSK.

• Transitioning from development to commercial stage with anticipated Plozasiran launch in 2025, pending regulatory approval and a PDUFA date set for November 18, 2025.

• Strong financial position, bolstered by a transformative $1.375 billion deal with Sarepta, including $825 million upfront and equity investment, funding operations into 2028.

• Multiple late-stage and partnered programs progressing, including obesity, CNS, and cardiometabolic assets.

• Leadership transition: CFO Ken Myszkowski retiring, succeeded by Dan Apel effective May 13, 2025.

Financial highlights

• Revenue for Q2 FY2025 was $542.7 million, up from $0 in Q2 FY2024, mainly from Sarepta and GSK agreements.

• Net income for Q2 FY2025 was $370.4 million ($2.75/share), compared to a net loss of $125.3 million ($1.02/share) in Q2 FY2024.

• Cash, cash equivalents, and investments totaled $1.1 billion as of March 31, 2025.

• Operating expenses rose to $161.5 million from $126.2 million year-over-year, reflecting pipeline advancement and higher R&D and G&A costs.

• Net cash provided by operating activities was $460.1 million, up from net cash used of $92.4 million a year prior.

Outlook and guidance

• Plozasiran U.S. PDUFA date set for November 18, 2025; European and other global filings underway.

• Funding secured into 2028, with no current need for further cash infusions or equity raises.

• Anticipates full enrollment of SHTG phase 3 studies by summer 2025, with sNDA submission possible in 2026.

• Expects initial data from obesity programs (ARO-INHBE, ARO-ALK7) by end of 2025 and early 2026.

• Expects additional capital inflows from business development outside core commercial focus.