Arrowhead Reports Fiscal 2014 Second Quarter Financial Results

– Conference Call Today at 4:30 p.m. EDT

PASADENA, Calif.–(BUSINESS WIRE)–

Arrowhead Research Corporation (NASDAQ: ARWR), a biopharmaceutical

company developing targeted RNAi therapeutics, today announced financial

results for its fiscal 2014 second quarter ended March 31, 2014. The

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

results. 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 35127223. Investors may also access a live audio

webcast of this conference call on the Company’s website at http://www.arrowheadresearch.com/presentations.

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

35127223.

Fiscal 2014 Second Quarter and Recent Company Highlights

• Began dosing patients in a Phase 2a study of lead candidate ARC-520

  against chronic hepatitis B infection;

• Completed first dose cohort in ARC-520 Phase 2a study;

• Completed an equity financing with gross proceeds of $120 million;

• Scheduled an analyst and R&D Day for June 19 in New York City to

  discuss our next clinical candidate for a rare liver indication;

• Upgraded NASDAQ listing to the Global Select Market;

• Hired additional R&D staff in key areas, including manufacturing,

  toxicology, chemistry, biology, quality assurance, and regulatory and

  clinical operations to support rapid development of ARC-520 and

  additional clinical candidates.

Selected Fiscal 2014 Second Quarter Financial Results

Net loss attributable to Arrowhead for the quarter was $13.9 million, or

$0.31 per share based on 44.3 million weighted average shares

outstanding. This compares with a net loss attributable to Arrowhead of

$6.8 million, or $0.41 per share based on 16.5 million weighted average

shares outstanding, for the quarter ended March 31, 2013.

Total operating expenses for the quarter were $11.3 million, compared to

$5.4 million for the quarter ended March 31, 2013. Research and

development related expenses were $5.2 million and $1.3 million for

general and administrative expenses.

Net cash used in operating activities for the first six months of fiscal

2014 was $14.7 million, compared with $8.3 million in the prior year

period.

The company’s cash and investments of cash were $194.7 million at March

31, 2014, compared to $29.8 million at September 30, 2013. The increase

in the cash balance reflects financings completed in February and

October, plus cash inflow from exercise of warrants and stock options of

$8 million.

Common shares outstanding at March 31, 2014, were 51.9 million, and 57.5

million assuming conversion of preferred stock outstanding.

About ARC-520

Arrowhead’s RNAi-based candidate ARC-520 is designed to treat chronic

HBV infection by reducing the expression and release of new viral

particles and key viral proteins. The goal is to achieve a functional

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

s-antigen negative serum with or without sero-conversion. The siRNAs in

ARC-520 intervene at the mRNA level, upstream of where nucleotide and

nucleoside analogues act. In transient and transgenic mouse models of

HBV infection, a single co-injection of Arrowhead’s DPC delivery vehicle

with cholesterol-conjugated siRNA targeting HBV sequences resulted in

multi-log knockdown of HBV RNA, proteins and viral DNA with long

duration of effect. Arrowhead has completed enrollment in a Phase 1

single ascending dose study in normal volunteers. The company is

conducting a single dose Phase 2a study in chronic HBV patients, which

it expects to follow with a multi-dose, multi-national Phase 2b study.

Approximately 350 million people worldwide are chronically infected with

the hepatitis B virus. Chronic HBV infection can lead to cirrhosis of

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

About Arrowhead Research Corporation

Arrowhead Research Corporation is a biopharmaceutical company developing

targeted RNAi therapeutics. The company is leveraging its proprietary

drug delivery technologies to develop targeted drugs based on the RNA

interference mechanism that efficiently silences disease-causing genes.

Arrowhead technologies also enable partners to create peptide-drug

conjugates that specifically home to cell types of interest while

sparing off-target tissues. Arrowhead’s pipeline includes clinical

programs in chronic hepatitis B virus 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 to receive news directly, please

send an email to ir@arrowres.com.

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.

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

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