Is ARROWHEAD PHARMACEUTICALS, INC. (ARWR) Halal?

NASDAQ Healthcare United States $8.1B
✓ HALAL
Confidence: 95/100
ARROWHEAD PHARMACEUTICALS, INC. (ARWR) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 4.4% against the AAOIFI threshold of 30%, ARROWHEAD PHARMACEUTICALS, INC. comfortably passes the key financial ratio tests. The company operates in the Healthcare sector (Biotechnology), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from September 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 4.4%
/ 30%
11.0%
/ 30%
0.1%
/ 30%
4.5%
/ 5%
✓ HALAL
DJIM 4.4%
/ 33%
11.0%
/ 33%
0.1%
/ 33%
4.5%
/ 5%
✓ HALAL
MSCI 26.4%
/ 33%
66.4%
/ 33%
0.5%
/ 33%
4.5%
/ 5%
✗ NOT HALAL
S&P 4.4%
/ 33%
11.0%
/ 33%
0.1%
/ 33%
4.5%
/ 5%
✓ HALAL
FTSE 26.4%
/ 33%
66.4%
/ 33%
0.5%
/ 50%
4.5%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
36.1
Forward: -13.4
EPS
$1.60
P/B Ratio
14.0
EV/EBITDA
24.2
EV: $7.9B
Revenue
$829M
Growth: 10461.3%
Beta
1.3
High volatility
Current Ratio
3.4

Profitability

Gross Margin 100.0%
Operating Margin 15.5%
Net Margin 18.5%
Return on Equity (ROE) 75.5%
Return on Assets (ROA) 14.4%

Cash Flow & Balance Sheet

Operating Cash Flow$180M
Free Cash Flow$157M
Total Debt$366M
Debt-to-Equity124.1
Current Ratio3.4
Total Assets$1.4B

Price & Trading

Last Close$60.77
50-Day MA$62.92
200-Day MA$42.45
Avg Volume2.9M
Beta1.3
52-Week Range
$9.57
$76.76

About ARROWHEAD PHARMACEUTICALS, INC. (ARWR)

CEO
Dr. Christopher R. Anzalone Ph.D.
Employees
711
Sector
Healthcare
Industry
Biotechnology
Country
United States
Exchange
NASDAQ
Market Cap
$8.1B
Currency
USD

Arrowhead Pharmaceuticals, Inc. develops medicines for the treatment of intractable diseases in the United States. Its pipeline includes Plozasiran to reduce production of apolipoprotein C-III in Phase 3 studies; Zodasiran to reduce production of angiopoietin-like protein 3 in Phase 3 clinical trials; ARO-DIMER-PA, a dual functional RNAi molecule in a Phase 1/2a clinical trials; and ARO-PNPLA3, an investigational RNAi therapeutic in Phase 1 clinical trials. The company also develops ARO-INHBE, to reduce the hepatic expression of the INHBE gene and its secreted gene product, Activin E in Phase 1/2a clinical trials; ARO-ALK7 to silence adipocyte expression of the ACVR1C gene in Phase 1/2a clinical trials; ARO-RAGE to reduce production of the receptor for advanced glycation end products in Phase 1/2a clinical trials; and ARO-MAPT, an investigational RNAi-based therapy. In addition, it is developing ARO-C3 to reduce production of C3 in Phase 1/2a clinical trials; and ARO-CFB to reduce hepatic expression of CFB in a Phase 1/2a clinical trials. The company has collaboration and license Agreements with Glaxosmithkline Intellectual Property (No. 3) Limited; Takeda Pharmaceutical Company Limited; Amgen Inc.; and Sarepta Therapeutics, Inc. Arrowhead Pharmaceuticals, Inc. was founded in 2003 and is headquartered in Pasadena, California.

Purification Calculator

As a halal stock with 4.50% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is ARROWHEAD PHARMACEUTICALS, INC. (ARWR) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), ARROWHEAD PHARMACEUTICALS, INC. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is ARROWHEAD PHARMACEUTICALS, INC.'s debt ratio?

ARROWHEAD PHARMACEUTICALS, INC.'s debt ratio is 4.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 26.4%.

Does ARROWHEAD PHARMACEUTICALS, INC. require dividend purification?

Yes, ARROWHEAD PHARMACEUTICALS, INC. has an impermissible income ratio of 4.50%, which means 4.50% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are ARROWHEAD PHARMACEUTICALS, INC.'s key financial metrics?

ARROWHEAD PHARMACEUTICALS, INC. has a market capitalization of $8.1B, trailing P/E ratio of 36.1, and revenue of $829M. The company maintains a gross margin of 100.0% and a net margin of 18.5%. Return on equity stands at 75.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.