Arrowhead Pharmaceuticals, Inc.
May 10, 2016

Arrowhead Reports Fiscal 2016 Second Quarter Results

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

PASADENA, Calif.--(BUSINESS WIRE)-- Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR) today announced financial results for its fiscal 2016 second quarter ended March 31, 2016. 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.arrowheadpharma.com/events.cfm. For analysts that wish to participate in the conference call, please dial 855-215-6159 or 315-625-6887 and enter Conference ID 5054757.

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 5054757.

Fiscal 2016 Second Quarter and Recent Company Highlights

Corporate Events

ARC-520

ARC-521

ARC-AAT

Platform and Early Pipeline

Selected Fiscal 2016 Second Quarter Financial Results

ARROWHEAD PHARMACEUTICALS, INC.
CONSOLIDATED CONDENSED FINANCIAL INFORMATION (unaudited)
       
Three Months Ended Six Months Ended
March 31, March 31,

OPERATING SUMMARY

  2016     2015     2016     2015  
 
REVENUE $ 43,750 $ 43,750 $ 87,500 $ 214,500
OPERATING EXPENSES
Research and development 10,020,826 11,640,794 20,359,659 29,387,524
Acquired in-process research and development - 10,142,786 - 10,142,786
Salaries and payroll-related costs 4,248,693 3,541,652 8,168,579 6,692,268
General and administrative expenses 3,818,335 1,696,623 5,769,944 3,782,826
Stock-based compensation 2,416,839 2,205,079 4,797,182 4,219,935
Depreciation and amortization   803,912     449,559     1,598,261     739,598  
TOTAL OPERATING EXPENSES   21,308,605     29,676,493     40,693,625     54,964,937  
OPERATING LOSS (21,264,855 ) (29,632,743 ) (40,606,125 ) (54,750,437 )
OTHER INCOME/(EXPENSE), PROVISION FOR INCOME TAXES   448,995     948,750     525,851     3,488,743  
NET LOSS $ (20,815,860 ) $ (28,683,993 ) $ (40,080,274 ) $ (51,261,694 )
 
EARNINGS PER SHARE (BASIC AND DILUTED): $ (0.35 ) $ (0.51 ) $ (0.67 ) $ (0.93 )
WEIGHTED AVERAGE SHARES OUTSTANDING   59,779,128     55,719,923     59,663,270     55,200,512  
 

FINANCIAL POSITION SUMMARY

March 31, September 30,
  2016     2015  
CASH AND CASH EQUIVALENTS 50,300,847 81,214,354
SHORT-TERM INVESTMENTS   11,160,442     17,539,902  
TOTAL CASH RESOURCES (CASH, CASH EQUIVALENTS AND INVESTMENTS) 61,461,289 98,754,256
OTHER ASSETS   33,146,182     33,513,658  
TOTAL ASSETS   94,607,471     132,267,914  
TOTAL LIABILITIES 20,681,234 22,646,280
TOTAL STOCKHOLDERS' EQUITY   73,926,237     109,621,634  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   94,607,471     132,267,914  
 
SHARES OUTSTANDING 59,960,711 59,544,677
PROFORMA SHARES OUTSTANDING (INCLUDING CONVERSION OF PREFERRED SHARES) 62,631,701 62,215,667

About Arrowhead Pharmaceuticals

Arrowhead Pharmaceuticals develops medicines that treat intractable diseases by silencing the genes that cause them. Using a broad portfolio of RNA chemistries and efficient modes of delivery, Arrowhead therapies trigger the RNA interference mechanism to induce rapid, deep, and durable knockdown of target genes. RNA interference, or RNAi, is a mechanism present in living cells that inhibits the expression of a specific gene, thereby affecting the production of a specific protein. Arrowhead's RNAi-based therapeutics leverage this natural pathway of gene silencing. The company's pipeline includes ARC-520 and ARC-521 for chronic hepatitis B virus infection, ARC-AAT for liver disease associated with alpha-1 antitrypsin deficiency, ARC-F12 for hereditary angioedema and thromboembolic disorders, ARC-LPA for cardiovascular disease, and ARC-HIF2 for renal cell carcinoma.

For more information please visit www.arrowheadpharma.com, or follow us on Twitter @ArrowheadPharma. To be added to the Company's email list and receive news directly, please visit http://ir.arrowheadpharma.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. Our 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 Pharmaceuticals, Inc.

Source: Arrowhead Pharmaceuticals, Inc.

Arrowhead Pharmaceuticals, Inc.
Vince Anzalone, CFA
626-304-3400
ir@arrowheadpharma.com
or
Investor Relations:
The Trout Group
Chad Rubin
646-378-2947
ir@arrowheadpharma.com
or
Media:
Russo Partners
Matt Middleman, M.D.
212-845-4272
matt.middleman@russopartnersllc.com

Source: Arrowhead Pharmaceuticals, Inc.

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