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How Is Arrowhead Pharmaceuticals Stock Positioned?

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Stock performance

On October 5, Arrowhead Pharmaceuticals (ARWR) stock closed at $14.74, falling ~3.85% from its prior day’s close of $15.33. On October 4, the stock fell ~17.4% to $15.33 from its prior day’s close of $18.56.

ARWR stock closed at $14.74 for the week ended October 5, which is a ~23% decline from its prior week’s closing of $19.17 on September 28.

When the market opened in 2018, Arrowhead Pharmaceuticals stock was selling at $3.69. By October 5, the price was $14.72, which is a rise of ~299%. On September 3, the stock hit its 52-week high of $22.39.

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Analyst recommendations

Cantor Fitzgerald has raised its target price for Arrowhead Pharmaceuticals to $24 from $18. In July, Chardan Capital raised its price target to $24.50 from $17.50. BidaskClub has upgraded its recommendation for the company from a “buy to a “strong buy.”

Of the six analysts tracking Arrowhead Pharmaceuticals in October, two of them have recommended a “strong buy,” and four have recommended a “buy.” On October 8, the company had a consensus 12-month target price of $23.30, which is a ~58.07% return on investment over the next 12 months.

Collaboration agreement

On October 4, Arrowhead Pharmaceuticals entered into a license and collaboration agreement with Janssen Pharmaceuticals, Johnson & Johnson’s (JNJ) wholly owned subsidiary, for the development and commercialization of ARO-HBV, a possible therapy for patients with chronic hepatitis B. The agreement includes collaboration for up to three additional RNAi (RNA[1. ribonucleic acid] interference) therapies for novel targets selected by Janssen Pharmaceuticals.

Arrowhead Pharmaceuticals estimates that the net transaction’s worth is ~$3.7 billion. According to the agreement, itls will receive an upfront payment of $175 million. Johnson & Johnson will also invest $75 million in Arrowhead Pharmaceuticals’ equity at a share price of $23.

Arrowhead Pharmaceuticals could also receive a milestone payment for the HBV[2. hepatitis B virus] license agreement of ~$1.6 billion. Janssen Pharmaceuticals could also pay Arrowhead Pharmaceuticals milestone and option payments of ~$1.9 billion for the collaboration associated with three additional targets. Jansen Pharmaceuticals will receive a worldwide exclusive license for the ARO-HBV clinical program. It will be responsible for clinical development and commercialization, while Arrowhead Pharmaceuticals will receive additional tiered royalties on product sales.

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