What’s going on with Arrowhead?
Two years ago, when the prospect of using RNA interference to treat disease looked a little shaky, a share of Arrowhead Pharmaceuticals went for a little over $3. A lot of positive data, from Arrowhead and others, propelled the company past the $3 billion mark this year.
But that doesn’t explain the past month.
Arrowhead is up more than 70% since October despite little in the way of major news. There haven’t been any notable spikes in volume or swings in analyst sentiment. In fact, Baird’s Madhu Kumar downgraded the company on Oct. 24, not because he doesn’t believe in Arrowhead’s promise but because “much of the near-term opportunity is currently priced in,” which are words you don’t commonly read on the sell side.
And yet here’s Arrowhead, at an all time high. As a few people on Twitter pointed out, a similar run-up happened at Kite Pharma in the days before Gilead Sciences acquired it for $12 billion, suggesting something similar could be in the offing for Arrowhead. That, or maybe people are just really into RNAi now.
But that doesn’t explain the past month.
Arrowhead is up more than 70% since October despite little in the way of major news. There haven’t been any notable spikes in volume or swings in analyst sentiment. In fact, Baird’s Madhu Kumar downgraded the company on Oct. 24, not because he doesn’t believe in Arrowhead’s promise but because “much of the near-term opportunity is currently priced in,” which are words you don’t commonly read on the sell side.
And yet here’s Arrowhead, at an all time high. As a few people on Twitter pointed out, a similar run-up happened at Kite Pharma in the days before Gilead Sciences acquired it for $12 billion, suggesting something similar could be in the offing for Arrowhead. That, or maybe people are just really into RNAi now.
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