RBC Capital Reiterates Outperform Rating on Arrowhead Research (ARWR)

RBC Capital maintained an Outperform Arrowhead Research (NASDAQ: ARWR) with a price target of $35. Analyst Michael J. Yee thinks Street interest in Hep B is just getting started, and upside should be significant.

"Investors are looking for the next big market after Hep C and that could be NASH (ICPT, GILD, GenFit) or Hep B. On the road w/ mgmt we learned 1) Phase I now through high dose 4mg is safe in healthy pts, 2) Phase II in HBV now dosing 3mg clearly shows knockdown including “long duration” effects after just one dose….could be "bi-phasic" reduction and immune system already starting to work (no ALT flair expected), 3) higher doses could get even better, 4) multiple doses could have more effect, 5) ARC-520 could be complementary to peg-interferon, or other approaches (KOLs say this will be a long-term combination just like Hep C….)," said Yee.

The company has many ways to win, continued Yee.

"They could have “cures” and/or ARC-520 could play a role in a future combination. We will continue to follow other very early-stage companies with a different approach that could be “complementary”: OnCore Biopharma (entering Phase I in 2015 – email us for poster), Novira (Phase I), Assembly Pharma (entering clinic 2015), Replicor (Canadian biotech). We like ARWR into AASLD and long-term not only because we believe Street interest is going to pick up in 2015 with these companies seeking the next big thing but also because we believe upside for ARWR should be quite significant if Phase IIB shows “cures”, and adding combos means many shots on goal. It’s not yet confirmed we'll get the key placebo-controlled Phase IIB data in ’15 (keep it blinded for a year), but many Phase II open-label studies will be going on with possible data."

For an analyst ratings summary and ratings history on Arrowhead Research click here. For more ratings news on Arrowhead Research click here.

Shares of Arrowhead Research closed at $15.56 yesterday.

You May Also Be Interested In

• RBC Capital Downgrades Range Resources (RRC) to Sector Perform
• Deutsche Bank Downgrades WNS Limited (WNS) to Hold
• Stifel Downgrades Knight Transportation (KNX) to Hold