Arrowhead Pharmaceuticals, Inc.
Aug 4, 2015

Arrowhead Reports Fiscal 2015 Third Quarter Financial Results

- Conference Call and Webcast Today at 4:30 p.m. EDT

PASADENA, Calif.--(BUSINESS WIRE)-- Arrowhead Research Corporation (NASDAQ: ARWR) today announced financial results for its fiscal 2015 third quarter ended June 30, 2015. The company is hosting a conference call at 4:30 p.m. EDT to discuss results.

Conference Call and Webcast Details

Investors may access a live audio webcast on the Company's website at http://ir.arrowheadresearch.com/events.cfm. For analysts that wish to participate in the conference call, please dial 315-625-6887 and enter Conference ID 97375077.

A replay of the webcast will be available on the company's website 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 3 days. To access the audio replay, dial 404-537-3406 and enter Conference ID 97375077.

Fiscal 2015 Third Quarter and Recent Company Highlights

ARC-520

ARC-AAT

Platform and Early Pipeline

Selected Fiscal 2015 Third Quarter Financial Results

ARROWHEAD RESEARCH CORPORATION
CONSOLIDATED CONDENSED FINANCIAL INFORMATION (unaudited)
       
Three Months Ended June 30, Nine Months Ended June 30,

OPERATING SUMMARY

  2015     2014     2015     2014  

 

REVENUE $ 123,750

$

43,750

$ 338,250 $ $131,250
OPERATING EXPENSES
Research and development 7,490,400 6,392,200 36,877,925 14,719,739
Acquired in-process research and development - - 10,142,786 -
Salaries and payroll-related costs 3,570,531 2,454,449 10,262,799 7,634,142
General and administrative expenses 1,829,393 1,582,465 5,612,219 3,865,845
Stock-based compensation 2,486,074 2,038,682 6,706,009 3,758,264
Depreciation and amortization   741,058     276,054     1,480,656     1,075,238  
TOTAL OPERATING EXPENSES 16,117,456 12,743,850 71,082,394 31,053,228
OPERATING LOSS   (15,993,706 )   (12,700,100 )   (70,744,144 )   (30,921,978 )
OTHER INCOME/(EXPENSE)   57,653     1,073,649

 

  3,546,398     (5,372,902 )
NET LOSS $ (15,936,053 ) $ (11,626,451 ) $ (67,197,746 ) $ (36,294,880 )
 
EARNINGS PER SHARE (BASIC AND DILUTED): $ (0.27 ) $ (0.22 ) $ (1.19 ) $ (0.81 )
WEIGHTED AVERAGE SHARES OUTSTANDING   59,492,867     51,931,989     56,631,297     44,565,008  
 

FINANCIAL POSITION SUMMARY

June 30, March 31,
  2015     2015  
CASH AND CASH EQUIVALENTS $ 87,252,813 $ 96,447,301
SHORT AND LONG-TERM INVESTMENTS   24,365,922     31,922,240  
TOTAL CASH RESOURCES (CASH, CASH EQUIVALENTS, INVESTMENTS) 111,618,735 128,369,541
OTHER ASSETS   33,571,590     34,008,917  
TOTAL ASSETS $ 145,190,325   $ 162,378,458  
TOTAL LIABILITIES $ 14,445,931 $ 18,182,104
TOTAL STOCKHOLDERS' EQUITY   130,744,394     144,196,354  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 145,190,325   $ 162,378,458  
 
SHARES OUTSTANDING 59,498,362 59,435,862
PROFORMA SHARES OUTSTANDING (INCLUDING CONVERSION OF PREFERRED SHARES) 62,169,352 62,106,852

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 single dose Phase 2a studies and multiple dose Phase 2b studies 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's ARC-AAT is being investigated 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. The mean estimated prevalence of AATD in the U.S. is 1 per 3000-5000, or approximately 100,000 patients. AATD is also an important cause of pediatric liver disease with an estimated prevalence in children of approximately 20,000 patients, and 50-80% likely to manifest liver disease during childhood. It is a rare disease that appears to be frequently misdiagnosed or undiagnosed. ARC-AAT, which was granted orphan drug designation, 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 in animal models. Reduction of liver production of the inflammatory Z-AAT protein, which is believed to be 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. Arrowhead is conducting a single dose Phase 1 clinical study of ARC-AAT, with part A in healthy volunteers and part B in AATD patients.

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 and ARC-AAT for liver disease associated with Alpha-1 antitrypsin deficiency.

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.

DYNAMIC POLYCONJUGATES is a trademark of Arrowhead Research Corporation.

Source: Arrowhead Research Corporation

Arrowhead Research Corporation
Vince Anzalone, CFA
626-304-3400
ir@arrowres.com
or
Investor Relations:
The Trout Group
Todd James
646-378-2926
ir@arrowres.com
or
Media:
Russo Partners
Matt Middleman, M.D.
212-845-4272
matt.middleman@russopartnersllc.com

Source: Arrowhead Research Corporation

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