Arrowhead Pharma rises after upsized $825 mln raise

Arrowhead Pharmaceuticals ARWR.O shares up 3.2% early Thurs to $67.77 after co raises more capital than planned

Biotech firm late Weds announced pricing offering of $625 mln 0% 6-year convertible bonds (CBs)

It also sold 3.1 mln shares, including ~1.6 mln pre-funded warrants, at $64.50 for $200 mln gross proceeds

ARWR shares on Weds fell 7.2% to close at $65.69 after co late Tues unveiled public offerings of $500 mln CBs and $200 mln in stock

Initial conversion price on the CBs set at $87.07, 35% above the offering price of the stock deal

Co intends to use bulk of the 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

JP Morgan and Jefferies acting as joint bookrunners

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

Through Weds close, ARWR stock up about 260% over the past six months

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