However, the data suggests that the potential rewards could be

Sneaky Upside Present Over The Course Of 2018

Arrowhead Pharmaceuticals (ARWR) has a lot of sneaky upside built into it over the course of the rest of the year that investors might not be fully aware of. Even after the recent gains in the Canada Goose online stock from the latest canada goose coats good news, the stock continues to be a great buy at the uk canada goose low $7’s along with anytime it dips below that crucial $7 mark. The company continues to have multiple upcoming catalysts over 2018 that could easily give the stock the upward momentum it needs to generate the escape velocity to leave the $7 range behind it for good.

Arrowhead recently reported positive data on its lead candidate ARC 520 from its Heparc 2001 multi dose extension study that was presented at the International Liver Congress. This study was for 8 hepatitis B virus (HBV) patients who received doses of ARC 520 with daily entecavir that resulted in surface potential antigen reductions of up to a little over 99%. One e antigen negative patient even serocleared surface antigen (HBsAg) after ARC 520 doses. Seroclearance means simply the full removal of an antigen from Canada Goose sale the blood, which is what got the stock moving this last Wednesday even though Arrowhead still has a years to go before any commercialization possibilities.

ARWR Price data by YCharts

This latest data was well received by uk canada goose outlet the market. However, it wasn’t enough to drive the valuation of the stock up much more than where it has recently been, canada goose store which means that the stock might still be a great value for investors who like the company’s odds of further success in their clinical trials. Arrowhead has a lot more going for it though than this latest data.

Back in March of 2017 Arrowhead initiated a “poison pill” provision in an 8 K that gave shareholders a dividend that included the right to purchase 1/1,000th of a share of Series D Junior Participating Preferred Stock for $20 for each common share owned. This dividend essentially gave shareholders 2 votes instead of 1 in the case where an entity acquires at least a 15% stake in the company, or if Arrowhead received an outright bid for ownership. If it buy canada goose jacket received a qualifying offer, shareholders would be entitled to buy $40 worth of common stock for $20, thus making it canada goose black friday sale very difficult and expensive for a company like Amgen Inc. (AMGN) to try to take the company over.

Amgen currently has several collaborations with Arrowhead including ARO AMG1 and Amgen 890, which has passed the Pre IND stage according to Arrowhead’s webpage pipeline. However, the official announcement has not been cheap Canada Goose made yet with management saying the announcement should come sometime over 2018. Note that earlier in 2018, Arrowhead shares had a 26% surge on quadruple normal volume when Amgen merely mentioned Amgen 890 in a corporate presentation. The official pipeline Canada Goose Online announcement that Arrowhead is already showing on its webpage should come sometime over 2018 along with a potential nice pop in the buy canada goose jacket cheap stock, especially if it comes with a cash milestone payment along with other investor information.

Off of that tangent now and back to the poison pill provision, which officially expired on March 21, 2018. Arrowhead has not announced another poison pill provision since then meaning that it is not nearly as protected now from a buyout offer from the likes of Amgen Canada Goose Parka as it has been over the past year. With Arrowhead’s market cap sitting at a little over $600 million, it wouldn’t canada goose uk black friday be too big of a bite for a company like Amgen to make a lucrative buyout offer for the company Canada Goose Coats On Sale if it truly believed in the science, especially now that the poison pill provision has expired. Pure speculation of course, but just one of many things going right for Arrowhead that give it massive potential upside over the course of 2018.

Finally, I am looking forward to an upcoming investor day dedicated to the company’s “golden goose” which is its ARO Lung1 pre clinical program, which does not have a partner as of yet. The company thinks so much of the potential of this program that it has foreshadowed a special day devoted to this candidate exclusively somewhere hopefully around summer of 2018. If Arrowhead can get investors as interested in this program as they are implying, it could be a meaningful upcoming catalyst for the stock if the market gets excited about the possibilities as well.

Now, at the end of the day, Arrowhead remains a highly speculative company worth a small position of your portfolio if you are comfortable with the risks and the years it will take for the science to potentially be commercialized. Their new TRiM platform has extraordinary potential, but all it took cheap canada goose uk to dive bomb the company’s previous programs was a dead chimp and some safety issues.

As far as the company’s cash position, Arrowhead has easily been able to raise new cash when needed, as it did earlier this year in January when it raised cash with an equity offering priced at $5.25. As long as the science continues to be solid, capital raises should only be a short term concern as the company has also been very successful in setting up partnerships with big time health care companies like the Amgen collaboration canada goose from 2016. The Amgen collaboration by itself includes over $600 million in milestone https://www.topparka.ca and equity payments, which is pretty amazing since Arrowhead’s market cap sits canada goose coats on sale currently at a little over $600 million. It still has plenty of very nice candidates without partnerships (ARO Lung1 for example) if the company felt the need to form additional partnerships down canada goose factory sale the road also. According to the company’s latest earnings call, Arrowhead ended 2017 with $50.7 million in cash and short term investments and received $56.8 million from the equity raise mentioned earlier giving it over $100 million in liquid canadian goose jacket assets. Its last quarter canada goose uk shop it spent $17.3 million which means it should have enough cash to get it solidly into 2019 without even counting upcoming potential milestone payments from Amgen sometime in 2018. As long as the science continues to impress, the company should have no trouble keeping its liquidity situation in good standing.

Arrowhead Pharmaceuticals continues Canada Goose Jackets to put out great data canada goose uk outlet and results in its programs that continue to support its share price even though the company has a long ways to go until commercialization. However, the data suggests that the potential rewards could be huge if data and results continue to impress. The company’s expired poison pill provision canada goose clearance sale leaves canada goose clearance the company far more open to a potential lucrative buyout offer, especially when companies like Amgen are out there who have already materially bought into the company with Canada Goose canada goose uk Outlet further collaboration advancements foreshadowed for 2018. Arrowhead’s data and candidates continue to impress with an upcoming special event dedicated solely to its Lung candidate hopefully this summer. I continue to be long Arrowhead and love the prospects. Best of luck to all.

Disclosure: I am/we are long ARWR.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.