Arrowhead Pharmaceuticals

ARWR

Biotechnology · Healthcare

Also trades as: 0HI3.L

Price

$87.11

-0.36 (-0.41%)

Market Cap

$12.27B

Exchange

NASDAQ

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Weak

Stability

Weak

Valuation

Data not available

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Share count rising — dilution

+28.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 103.7M (2021) → 133.8M (2025)

Winston Score History

The full picture

Arrowhead Pharmaceuticals is a biotechnology company that develops medicines designed to silence specific genes inside the body. It uses a technology called RNA interference (RNAi) to essentially "turn off" genes that cause diseases like liver conditions, heart disease, and lung disorders. The company focuses on building a pipeline of these targeted therapies and has partnered with larger pharmaceutical companies to help develop and commercialize them.

Arrowhead earns money through a mix of licensing deals, collaboration agreements, and milestone payments from partners like Janssen, GSK, and Amgen — rather than selling drugs directly to patients at scale yet. It operates primarily in the United States and is a mid-sized biotech with a market cap around $12 billion. Its proprietary TRiM platform for delivering RNAi drugs is a key competitive advantage, but the company is not yet consistently profitable, and its financial performance depends heavily on clinical trial outcomes and whether partnered drugs successfully reach the market.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+171.0% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

-7.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$607M/ year

↑ Rising (+24% vs prior year)

73.2% of revenue

4.1x the sector average (18%)

Investing heavily in future products and technology

Insider Activity

12.8%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~2 years

$1.6B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

$1.6B cash & investments at current burn rate

Strong grower

Arrowhead Pharmaceuticals is growing revenue at 171% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

0.0%

Thin — 0.0% gross margin

Profit after running costs

Operating Margin

-226.0%

Losing money on operations — -226.0%

Return on the money invested

ROCE

-17.9%

Weak — -17.9% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

+16.8%

Fast-growing sales (+16.8% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-11.2%

Burning cash (-11.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

1.72

Elevated debt (1.72)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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