Arrowhead Pharmaceuticals Inc (NASDAQ: ARWR) is having a relatively strong start to the trading session this morning, and for good reason. The company announced that it has presented data with regard to its candidate known as ARC-520. Of course, the announcement excited investors, causing the stock to head upward. Today, we’ll talk about:
- The presentation of data;
- what we’re seeing from ARWR as a result;
- risks to consider;
- and what we’ll be watching for ahead.
ARWR Presents Clinical Data
As mentioned above, Arrowhead Pharmaceuticals is having a relatively strong start to the trading session this morning after announcing the presentation of clinical data. In a press release issued early this morning, the company announced that it recently presented data surrounding ARC-520, the company’s prior generation investigation medicine for the treatment of chronic hepatitis B infection. In the release, ARWR said that the presentation took place at The International Liver Congress 2018 (ILC), an annual meeting of the European Association for the Study of the Liver (EASL).
In the release, ARWR said that the presentation is available on its website. The presentation includes follow up data for patients enrolled in the Heparc-2001 multi-dose extension study. According to the release, 8 chronic hepatitis patients received up to 9 doses of 4 mg/kg ARC-520 once every 4 weeks in daily entecavir (ETV). From there, viral DNA, RNA, and antigen knockdown were measured at regular intervals. Patients in the study continued their daily ETV and were monitored for an additional 12 months following the last ARC-520 dose.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dabble in the market is that the news causes moves. In this particular case, Arrowhead Pharmaceuticals produced relatively positive news, informing investors of new data for a key clinical candidate. So, it’s no surprise to see the stock making its way for the top today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:28), ARWR is trading at $7.01 per share after a gain of $0.25 per share or 3.70% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
Consider The Risks
Any time you make an investment in any asset, you’re going to take on some risk. This is no different when it comes to an investment in ARWR. So, there are a few things that you should consider before investing. First and foremost, the company is a clinical stage biotechnology company, and early clinical stages at that. Considering the early stages the company’s candidates are in, it will likely be quite a while before the company has any approved treatments on the market.
In the meantime, Arrowhead Pharmaceuticals will be racking up expenses, not just from an administrative standpoint, but from an R&D and clinical standpoint, which could become pretty massive. If any any time investors and lenders decide that they are no longer willing to foot the bill for the company, it could fold like a piece a paper.
It’s also important to keep in mind that due to the high cost of clinical trials, current balance sheet, and current pipeline progress the company will have a need to raise funds in the relatively near future. Of course, this could mean that a dilutive transaction is on the horizon, which could push the value of the stock downward.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ARWR. In particular, we’re interested in following the story surrounding the company’s progress not only with ARC-520, but with the rest of its pipeline. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!