DealsMay 7, 2026, 04:09 PM
Arrowhead Secures $930M in Offerings, $975M MASH Deal; Q2 Net Loss $(132.7)M
AI Summary
Arrowhead Pharmaceuticals reported a fiscal 2026 second-quarter net loss of $132.7 million, a significant decrease from the prior year's net income. Despite the financial results, the company announced a major licensing agreement with Madrigal Pharmaceuticals for ARO-PNPLA3, including a $25 million upfront payment and potential milestones up to $975 million. Arrowhead also strengthened its balance sheet by raising $930 million through convertible senior notes and common stock offerings. The company highlighted strong commercial momentum for REDEMPLO® with over 400 prescriptions and multiple international regulatory approvals, alongside positive clinical data for its RNAi therapeutic pipeline.
Key Highlights
- Secured $930 million gross proceeds from public offerings ($700M convertible notes, $230M common stock).
- Signed exclusive license agreement for ARO-PNPLA3 with Madrigal, including $25 million upfront and up to $975 million in milestones.
- Reported Q2 fiscal 2026 net loss of $132.7 million, down from $370.4 million net income YoY.
- Q2 fiscal 2026 revenue was $73.7 million, a significant decrease from $542.7 million YoY.
- Diluted EPS was $(0.93) for Q2 fiscal 2026, compared to $2.75 in the prior year.
- REDEMPLO® prescriptions exceeded 400, with 40% growth in the last four weeks.
- REDEMPLO® received regulatory approvals in Australia, China, and Canada, plus a positive CHMP opinion in Europe.
- ARO-INHBE in combination with tirzepatide achieved -9.4% weight loss at week 16 in obese diabetic patients.