|[May 06, 2014]
Arrowhead Reports Fiscal 2014 Second Quarter Financial Results
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
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 Arrowheadof
$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
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
Common shares outstanding at March 31, 2014, were 51.9 million, and 57.5
million assuming conversion of preferred stock outstanding.
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 (News - Alert) @ArrowRes.
To be added to the Company's email list to receive news directly, please
send an email to firstname.lastname@example.org.
Safe Harbor Statement under the Private Securities Litigation Reform
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.
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