Arrowhead Pharma slips after unveiling convertible, stock deals

Arrowhead Pharmaceuticals ARWR.O shares down 2.3% before the bell to $69.20 as co seeks capital

Drug developer late Tues announced public offering of $500 mln 6-year convertible bonds (CBs) and $200 mln stock deal

Co intends to use net proceeds from offerings for general purposes, including working capital, capex, R&D, commercialization activities for potential launches of late stage products, and may use a portion to prepay loans under credit facility with Sixth Street Lending Partners

It also plans to use some proceeds from CBs to pay cost of capped calls, derivative transactions to offset dilution

JP Morgan and Jefferies acting as joint bookrunners for both offerings

ARWR shares on Tues ended up ~11% at $70.81 after promising early-stage data for its obesity treatments, including for ARO-INHBE in combination with Eli Lilly's LLY.N tirzepatide

Pasadena, California-based ARWR has ~135.8 mln shares outstanding for nearly $10 bln market cap

Stock has quadrupled over the past six months

Avg rating among 13 analysts is "buy"; median PT $80, per LSEG