Arrowhead Reports Fiscal 2015 First Quarter Financial Results

Conference Call Today at 4:30 p.m. EST

PASADENA, Calif.–(BUSINESS WIRE)–

Arrowhead Research Corporation (NASDAQ: ARWR), a biopharmaceutical

company developing targeted RNAi therapeutics, today announced financial

results for its fiscal 2015 first quarter ended December 31, 2014. The

company is hosting a conference call at 4:30 p.m. EST to discuss results.

Conference Call and Webcast Details

To participate in the conference call, please dial 855-215-6159 (toll

free from the US) or 315-625-6887 (for international callers) and enter

Conference ID 76024600. Investors may also access a live audio webcast

of this conference call on the Company’s website at http://ir.arrowheadresearch.com/events.cfm.

A replay of the webcast will be available approximately two hours after

the conclusion of the call and will remain available for 90 days. An

audio replay will also be available approximately two hours after the

conclusion of the call and will be available for 7 days. The audio

replay can be accessed by dialing 855-859-2056 (toll free from the US),

or 404-537-3406 (for international callers) and entering Conference ID

76024600.

Fiscal 2015 First Quarter and Recent Company Highlights

• Expanded the management team with the appointment of Susan Boynton as

  Vice President, Regulatory Affairs and Patrick O’Brien as General

  Counsel

• Presented initial data from the ongoing Phase 2a study of ARC-520, our

  RNAi therapeutic candidate for the treatment of chronic hepatitis B

  infection, in the late-breaking poster session at the 2014 American

  Association for the Study of Liver Diseases Meeting (AASLD)

• Delivered a plenary presentation at AASLD with new preclinical

  efficacy data on ARC-AAT, our RNAi therapeutic candidate for the

  treatment of liver disease associated with Alpha-1 antitrypsin

  deficiency

• Filed an application for approval to begin a Phase 1 clinical trial of

  ARC-AAT

• Submitted an IND application to the U.S. Food and Drug Administration

  to begin Phase 2b multiple dose studies

• Completed dosing of 3 & 4 mg/kg cohorts in Phase 2a study of ARC-520

Selected Fiscal 2015 First Quarter Financial Results

ARROWHEAD RESEARCH CORPORATION
CONSOLIDATED CONDENSED FINANCIAL INFORMATION
		Three Months Ended December 31,
OPERATING SUMMARY		2014		2013
REVENUE		$170,750		$43,750
OPERATING EXPENSES
Research and development		17,744,312		3,133,014
Salaries and payroll-related costs		3,150,617		2,081,791
General and administrative expenses		2,086,202		913,784
Stock-based compensation		2,014,856		521,138
Depreciation and amortization		290,039		403,405
TOTAL OPERATING EXPENSES		25,286,026		7,053,132
OPERATING LOSS		(25,115,276)		(7,009,382)
OTHER INCOME/(EXPENSE)		2,539,994		(3,676,350)
NET LOSS		$(22,575,282)		$(10,685,732)
EARNINGS PER SHARE (BASIC AND DILUTED):		$(0.41)		$(0.28)
WEIGHTED AVERAGE SHARES OUTSTANDING		54,692,392		37,741,743
		December 31,		September 30,
FINANCIAL POSITION SUMMARY		2014		2014
CASH AND CASH EQUIVALENTS		103,991,231		132,510,610
SHORT AND LONG-TERM INVESTMENTS		41,338,901		44,741,378
TOTAL CASH RESOURCES (CASH, CASH EQUIVALENTS AND INVESTMENTS)		145,330,132		177,251,988
OTHER ASSETS		16,806,629		5,564,768
TOTAL ASSETS		162,136,761		182,816,756
TOTAL LIABILITIES		16,427,090		16,831,501
TOTAL STOCKHOLDERS’ EQUITY		145,709,671		165,985,255
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		162,136,761		182,816,756
SHARES OUTSTANDING		54,715,714		54,656,936
PROFORMA SHARES OUTSTANDING (INCLUDING CONVERSION OF PREFERRED SHARES)		58,702,920		58,644,142

About ARC-520

Arrowhead’s RNAi-based candidate ARC-520 is being investigated in the

treatment of chronic HBV infection. The small interfering RNAs (siRNAs)

in ARC-520 intervene at the mRNA level, upstream of the reverse

transcription process where current standard of care nucleotide and

nucleoside analogues act. Arrowhead is investigating ARC-520

specifically, to determine if it can be used to achieve a functional

cure, which is an immune clearant state characterized by hepatitis B

s-antigen negative serum with or without sero-conversion. Arrowhead has

completed a Phase 1 single ascending dose study in normal volunteers and

the company is conducting a single dose Phase 2a study in chronic HBV

patients. Approximately 350-400 million people worldwide are chronically

infected with the hepatitis B virus, which can lead to cirrhosis of the

liver and is responsible for 80% of primary liver cancers globally.

About ARC-AAT

Arrowhead has developed ARC-AAT for the treatment of liver disease

associated with Alpha-1 Antitrypsin Deficiency (AATD), a rare genetic

disease that severely damages the liver and lungs of affected

individuals. ARC-AAT employs a novel unlocked nucleobase analog (UNA)

containing RNAi trigger molecule designed for systemic delivery using

the Dynamic Polyconjugate delivery system. ARC-AAT is highly effective

at knocking down the Alpha-1 antitrypsin (AAT) gene transcript and

reducing the hepatic production of the mutant AAT (Z-AAT) protein.

Reduction of liver production of the inflammatory Z-AAT protein, which

has been clearly defined as the cause of progressive liver disease in

AATD patients, is important as it is expected to halt the progression of

liver disease and potentially allow fibrotic tissue repair. The Company

filed with regulatory authorities in the fourth quarter of 2014 and

intends to initiate clinical studies shortly after receiving permission

to begin.

About Arrowhead Research Corporation

Arrowhead Research Corporation is a biopharmaceutical company developing

targeted RNAi therapeutics. The company is leveraging its proprietary

Dynamic Polyconjugate delivery platform to develop targeted drugs based

on the RNA interference mechanism that efficiently silences

disease-causing genes. Arrowhead’s pipeline includes ARC-520 for chronic

hepatitis B virus, ARC-AAT for liver disease associated with Alpha-1

antitrypsin deficiency, and partner-based programs in obesity and

oncology.

For more information please visit http://www.arrowheadresearch.com,

or follow us on Twitter @ArrowRes.

To be added to the Company’s email list and receive news directly,

please visit http://ir.arrowheadresearch.com/alerts.cfm.

Safe Harbor Statement under the Private Securities Litigation Reform

Act:

This news release contains forward-looking statements within the

meaning of the “safe harbor” provisions of the Private Securities

Litigation Reform Act of 1995. These statements are based upon our

current expectations and speak only as of the date hereof. Our actual

results may differ materially and adversely from those expressed in any

forward-looking statements as a result of various factors and

uncertainties, including our ability to finance our operations, the

future success of our scientific studies, our ability to successfully

develop drug candidates, the timing for starting and completing clinical

trials, rapid technological change in our markets, and the enforcement

of our intellectual property rights. Arrowhead Research Corporation’s

most recent Annual Report on Form 10-K and subsequent Quarterly Reports

on Form 10-Q discuss some of the important risk factors that may affect

our business, results of operations and financial condition. We assume

no obligation to update or revise forward-looking statements to reflect

new events or circumstances.

Source: Arrowhead Research Corporation

Company Contact:
Arrowhead Research Corporation
Vince

Anzalone, CFA
626-304-3400
ir@arrowres.com
or
Investor

Relations:
The Trout Group
Lauren Glaser
646-378-2972
ir@arrowres.com
or
Media:
Russo

Partners
Martina Schwarzkopf, Ph.D.
212-845-4292
martina.schwarzkopf@russopartnersllc.com

Source: Arrowhead Research Corporation

News Provided by Acquire Media