Arrowhead Pharmaceuticals (ARWR) stock plummeted over 8% in pre-market trading on Tuesday, following the release of its fiscal Q1 2025 earnings results. The biopharmaceutical company reported a widening net loss and declining revenue, raising concerns among investors about its financial performance.

Arrowhead's net loss for the quarter expanded significantly to $173.1 million or $1.39 per share, compared to a net loss of $132.9 million in the prior-year period. Additionally, the company's revenue declined to $2.5 million from $3.6 million in the same quarter last year. This disappointing financial performance was primarily attributed to higher candidate costs and salaries as its pipeline of clinical candidates advanced.

Despite the influx of cash from a significant collaboration agreement with Sarepta Therapeutics, Arrowhead still requires additional capital to initiate a crucial cardiovascular outcomes trial (CVOT) for its lead candidate plozasiran. The need for further funding to support this critical study likely contributed to investor concerns, leading to the pre-market selloff.