Over the past few weeks, plenty of pharmaceutical stocks have come into the picture for a variety of reasons, and one stock that perhaps needs a closer look is the Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR) stock. The stock has been subject to extensive speculative trading that saw its price go from massive highs to abysmal lows.
What to Expect Now?
The speculation has possibly been centered on the company’s main candidate ARO-HBV, which is supposed to combat the Hepatitis B virus. In this regard, it is important to point out that Hepatitis B is a serious liver ailment and affects hundreds of thousands of people in the United States.
As many as 850,000 people in the United States and 257 million people worldwide are affected by it. Analysts believe that the total addressable market could be valued at as much as $3 billion by 2024. There are vaccines available in the market, but if those vaccines are not administered at the correct time, they are ineffective. ABO-HBV medicine is unique since it is based on ribonucleic acid interference (RNAi) therapy. The vaccine is supposed to be injected into certain parts of the body in order to stop the growth of the virus.
The company has so far conducted Phase 1 clinical trials of the product, and the data suggests that the majority of patients who were part of the trial were functionally cured of the condition. That is a significant development, and more importantly, Arrowhead has also licensed the product to Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson’s. If there is a clinical success, then Arrowhead could be paid as much as $3.5 billion and mid-teen percentage of the sale that is generated. It is also important to point out that there is not a lot of chance of stock dilution since Arrowhead has $400 million in cash in order to take care of product development. As things stand, Arrowhead could be a compelling option for many investors.