Arrowhead and Shire Enter into Collaboration and License Agreement to Develop Peptide-Targeted Therapeutics

  Arrowhead and Shire Enter into Collaboration and License Agreement to
  Develop Peptide-Targeted Therapeutics

Business Wire

PASADENA, Calif. -- December 18, 2012

Arrowhead Research Corporation (NASDAQ: ARWR), a targeted therapeutics
company, today announced that it has signed a research collaboration and
license agreement with Shire AG, to develop and commercialize targeted
peptide-drug conjugates (PDCs) by utilizing Arrowhead’s human-derived Homing
Peptide platform and Shire’s therapeutic payloads. Arrowhead will receive
research funding and could be eligible for development, regulatory, and
commercialization milestone payments of up to $32.8 million for each
development candidate, plus additional milestone payments for a second
indication, and royalties on worldwide sales. Additional financial terms of
the agreement were not disclosed.

“Shire’s expertise in developing innovative medicines for rare diseases makes
them an ideal partner for Arrowhead as we advance our platform of
human-derived Homing Peptides,” said Dr. Chris Anzalone, President and Chief
Executive Officer of Arrowhead. “Our library of over 42,000 unique targeting
peptide sequences can potentially be used to deliver therapeutics to more than
30 tissue types while avoiding non-specific uptake. We view this collaboration
as a significant validation of our technology and discovery capabilities.
Moreover, this agreement underscores our strategy of building value by
developing an internal pipeline of PDCs and RNAi therapeutics and by working
with partners to improve their proprietary medicines with our peptide

“With this novel platform technology, Shire has the potential to move into a
wider range of orphan diseases,” said Dr. Phil Vickers, Head of R&D at Shire
HGT. “Our goal is to develop treatments that profoundly change the lives of
patients with a variety of rare life-altering and life-threatening conditions.
This collaboration with Arrowhead is evidence of Shire’s commitment to
patients with rare diseases and our intent to work with the best partners to
achieve this.”

Under the agreement, Arrowhead will identify peptides that selectively bind
and internalize in an undisclosed tissue type and that are capable of
delivering a therapeutic payload to that tissue. The company will receive
funding for its internal and external research program-related costs and Shire
will have an option to obtain an exclusive license to develop and
commercialize a therapeutic agent targeted by the designated peptides and be
responsible for clinical development and commercialization of products arising
from the collaboration.

About Homing Peptides

Arrowhead's Homing Peptides comprise the world's largest library of
human-derived peptide sequences that have been shown to localize to specific
tissues in the human body. This platform enables the creation of guided
therapeutics that specifically target tissues of interest while sparing
off-target issues. The vast and growing proprietary library of Homing Peptides
and numerous novel cell surface targets provide Arrowhead with building blocks
for its own internal pipeline of drug candidates as well as opportunities to
out-license or collaborate with partners. Our identification and screening
directly in human patients, under strict ethical guidelines, has discovered
peptide sequences that efficiently target known receptors, as well as novel,
tissue specific receptors. Importantly, the platform enriches for receptors
that rapidly internalize the peptide sequence and its associated payload.

About Arrowhead Research Corporation

Arrowhead Research Corporation is a clinical stage targeted therapeutics
company with development programs in oncology, obesity, and chronic hepatitis
B virus. The company is leveraging its platform technologies to design and
develop peptide-drug conjugates (PDCs) that specifically home to cell types of
interest while sparing off-target tissues, create targeted drugs based on the
gene silencing RNA interference (RNAi) mechanism, and work with partners to
create improved versions of traditional small molecule drugs.

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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
Vince Anzalone, CFA
The Trout Group
Lauren Glaser
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