Deaths Observed In Arrowhead Pharma's Clinical Study Don't Change Cantor's Buy Rating

While most eyes were on the election on Tuesday evening, Arrowhead Pharmaceuticals Inc ARWR provided an update on their Heparc-2004 clinical study of ARC-520. In an 8:05 p.m. press release, the company announced the study was verbally put on hold by the FDA following deaths in non-human primates.

In trading Wednesday, the share price dropped more than 25 percent following the news. Cantor Fitzgerald analyst Elemer Piros, however, reiterated a Buy rating and a $15 price target in a research note addressing the previous evening’s press release.

Piros’ key reasoning was the deaths occurred at the highest dose, and the carrier molecule, EX1, appeared to be the culprit. Thirdly, the study was placed on hold only in the United States.

“Six other trials in Europe, Asia and Australia are continuing to dose up to around 300 patients,” said Piros.

At last check, Arrowhead was down 28.15 percent at $4.39.