Arrowhead Pharmaceuticals' (ARWR) drug candidate plozasiran, intended to treat severe hypertriglyceridemia, or SHTG, has a large market opportunity considering the inadequacy of current treatments, Morgan Stanley analysts said in a Wednesday note.

Recent data from Ionis Pharmaceuticals' (IONS) olezarsen highlight the potential of RNA-based therapies targeting the APOC3 gene to "meaningfully" reduce the risk of pancreatitis in SHTG, analysts said.

The analysts said that Ionis' data increases their conviction on the SHTG opportunity ahead of Arrowhead's phase 3 data expected to be released in fiscal Q3 2026.

"Given the size of the SHTG market we see room for multiple players that can meaningfully reduce the risk of pancreatitis," the analysts said.

Morgan Stanley increased the estimated price of plozasiran to $20,000 from $6,500, in line with their estimate for Ionis' Tryngolza.

Morgan Stanley increased the price target on Arrowhead to $45 from $29 and retained an equalweight rating.

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