By Katherine Hamilton

Arrowhead Pharmaceuticals shares were higher after the company swung to a profit and beat Wall Street expectations.

Shares climbed 10% to $15.43 on Tuesday morning. The stock is still down 18% this year.

The Pasadena, Calif., biotechnology company, which uses RNA interference to develop treatments, said Monday it recorded a profit of $370.4 million, or $2.75 a share, during the fiscal second quarter, compared with a loss of $125.3 million, or $1.02 a share, the year before. Analysts polled by FactSet had been expecting a loss of $31.4 million.

It made $542.7 million in sales during the quarter, up from $0 the year before. Analysts polled by FactSet had been expecting $125.4 million in revenue.

Arrowhead closed a licensing and collaboration agreement during the fiscal second quarter with Sarepta Therapeutics. It received $825 million in the deal, and is eligible to receive an additional $300 million in near-term payments and $10 billion in potential milestone payments.

The company is now funded into 2028 with no need for further cash infusions from an equity raise or other sources, Chief Executive Christopher Anzalone said. He sees the potential for several commercial launches during the next three years, he said.

Tuesday morning, the Food and Drug Administration accepted the new drug application for investigational plozasiran for the treatment of the genetic disease familial chylomicronemia syndrome.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

May 13, 2025 09:59 ET (13:59 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.