Zacks analyst Grant Zeng was out pounding the table on Arrowhead Research Corp. (NASDAQ:ARWR), reiterating an Outperform rating and a $15 price target, which represents a potential upside of 137% from where the stock is currently trading.
Zeng noted, “We think ARC-520 is the primary value driver in near- and mid-term for Arrowhead. The successful development of ARC-520 is critical to Arrowhead because the HBV market offers opportunities for substantial revenues, and because validation of the Company s RNAi delivery technology opens broad opportunities both for other therapeutic programs and licensing opportunities.”
“In this regard, the completion of the Phase IIa study and the initiation of the Phase IIb of ARC-520 represent an important milestone for Arrowhead in achieving its long term growth goal. One of the attractive features of RNAi and of DPCs specifically is once the safety profile in man for the delivery system has been established; additional targets and candidates can be studied rapidly. Therefore the Phase II trials of ARC-520 will provide the company with the data needed to accelerate the development of its pipeline and bring additional candidates into the clinic.”
Arrowhead Research Corporation develops novel drugs to treat intractable diseases in the United States.