Arrowhead Pharmaceuticals (NASDAQ: ARWR) is a development-stage biotech company focused on RNA interference (RNAi) therapeutics. The company has nine candidates in clinical trials, including three potential biologics developed jointly with Johnson & Johnson 's Janssen subsidiary. The stock had more than doubled year over year to $90 apiece in Junebut fell nearly 30% off its highs after the company announced on July 6 that it was pausing a phase 1/2 clinical trial to study ARO-ENaC for the treatment of cystic fibrosis.
The pause came after a preliminary toxicology report revealed lung inflammation in rats after treatment. What's more, recent phase 1 interim data for another drug candidate, ARO-HIF2, to treat clear cell renal cell carcinoma failed to excite investors. The experimental biologic demonstrated a partial response (at least 30% reduction in tumor diameter) in just 1 out of 17 patients in the investigation.
Investing in emerging biotechs and their drug development is usually a high-risk, high-reward venture, so can you count on Arrowhead to succeed?
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Arrowhead Pharmaceuticals: Buy the Dip?