SerpApi.Org
Arrowhead Pharmaceuticals'ARWR triglyceride-buster hit the "best-case scenario" in two final-phase studies Wednesday, leading the stock to skyrocket.
The biotech company's drug, plozasiran, reduced triglycerides by 79% and 81% in the year-long studies, compared with just a 27% reduction in the placebo group. Patients also experienced what the company called an "unprecedented" 100% reduction in the risk of acute pancreatitis, a sudden inflammation of the pancreas often caused by high triglycerides.
"This is a best-case scenario for ARWR as they were able to hit the stats on (acute pancreatitis) despite a trial that was originally designed to just hit on (triglycerides)," RBC Capital Markets analyst Luca Issi said in a report. He noted Arrowhead had planned to test the potential benefits of plozasiran on acute pancreatitis in another study that's currently underway.
In morning trades on today's stock market, Arrowhead Pharmaceuticals stock soared more than 23% to 92.05. Shares opened above their 50-day moving average, according to IBD MarketSurge charts. Shares of Ionis PharmaceuticalsIONS, a key rival in the space, dropped more than 2% to 52.07.
Taking On Ionis's Tryngolza
Ionis, Arrowhead's longtime competitor, was the first to market with its triglyceride-lowering drug, Tryngolza.
In a broad population of patients with or without a history of acute pancreatitis, plozasiran reduced cumulative acute pancreatitis incidents by 78% compared to the placebo. That compares to a 100% reduction in patients with a history of acute pancreatitis.
By comparison, Ionis' Tryngolza led to an 85% reduction in acute pancreatitis for patients with or without a history of the condition. But RBC's Issi says doctors are likely to see the two drugs as being equally effective.
"Bottom line, IONS is first to market, but ARWR is posed to join the race with a drug that has shown a comparable benefit in AP and can offer a dosing advantage (IONS is monthly vs ARWR is quarterly), and potentially spare the liver fat signal," he said. Tryngolza can increase the level of fat stored in the liver.
Issi reiterated his outperform rating and 87 price target on Arrowhead stock.
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