Arrowhead Pharma slips after unveiling convertible, stock deals

Arrowhead Pharmaceuticals

07/01/2026 12:26

** Arrowhead Pharmaceuticals ARWR.O shares down 2.3% before the bell to $69.20 as co seeks capital

    ** Drug developer late Tues announced public offering of $500 mln 6-year convertible bonds (CBs) and $200 mln stock deal

** Co intends to use net proceeds from offerings for general purposes, including working capital, capex, R&D, commercialization activities for potential launches of late stage products, and may use a portion to prepay loans under credit facility with Sixth Street Lending Partners

** It also plans to use some proceeds from CBs to pay cost of capped calls, derivative transactions to offset dilution

** JP Morgan and Jefferies acting as joint bookrunners for both offerings

** ARWR shares on Tues ended up ~11% at $70.81 after promising early-stage data for its obesity treatments, including for ARO-INHBE in combination with Eli Lilly's LLY.N tirzepatide

** Pasadena, California-based ARWR has ~135.8 mln shares outstanding for nearly $10 bln market cap

** Stock has quadrupled over the past six months

** Avg rating among 13 analysts is "buy"; median PT $80, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))