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Arrowhead Induces 90% Reduction in Hepatitis B Antigens in Chimpanzee with Chronic Infection: Data Follow Previous Report of



  Arrowhead Induces 90% Reduction in Hepatitis B Antigens in Chimpanzee with
  Chronic Infection: Data Follow Previous Report of Reduction in Viral DNA

  * Through 29 days after initial treatment, maximal knock down of HBV DNA,
    e-antigen, and s-antigen were approximately 95%, 90%, and 90%,
    respectively
  * Results discussed today at an analyst event and webcast from 12:30 to 2:00
    p.m. EDT
  * Panel members for the event include Dr. Robert Gish, noted hepatologist
    and Arrowhead Clinical Advisory Board Chairman, and Joan Block, Executive
    Director and Co-founder of Hepatitis B Foundation

Business Wire

PASADENA, Calif. -- March 25, 2013

Arrowhead Research Corporation (NASDAQ: ARWR), a targeted therapeutics
company, will host an analyst event today in New York City to discuss ARC-520,
its RNAi-based candidate designed to treat chronic hepatitis B virus
infection. The company will discuss the program and describe new preclinical
data showing that a low dose of ARC-520 induced rapid and deep reductions in
viral particles and key viral antigens in a chimpanzee chronically infected
with hepatitis B virus. Arrowhead identified a well-tolerated dose of ARC-520
that lead to a 95% reduction in circulating viral DNA, and approximately 90%
reductions in hepatitis e-antigen (HBeAg) and s-antigen (HBsAg), which are
thought to be important in establishing a functional cure. These data support
previous findings in rodent models and may be predictive of a therapeutic dose
range to be identified in upcoming clinical trials expected to start in the
middle of this year.

“This is the first time I have tested an siRNA therapy that was efficiently
delivered to the liver and suppressed HBV infection including serum levels of
HBsAg, a marker that is not suppressed effectively using current therapies,”
said Dr. Robert Lanford of the Texas Biomedical Research Institute where the
study was conducted. “This was a proof-of-concept study with a novel approach
for curing HBV infection and this therapy provided highly promising results in
a very short trial.”

The study was designed to test tolerability of a low dose of ARC-520 and its
ability to reduce viral load and the key viral proteins, HBsAg and HBeAg,
after intravenous administration in a chimpanzee with chronic hepatitis B
infection. The animal being treated had exceptionally high titers of
circulating HBV DNA and HBsAg that measured 1,000 to 10,000-fold higher than
the average chronic hepatitis B patient. The HBV infection has been chronic
for over thirty years and has persisted despite prior therapy with multiple
anti-viral drugs and therapeutic vaccine exposures.

“Treating this animal represented a very difficult challenge,” said Dr. Chris
Anzalone, President and CEO of Arrowhead. “It was the first large primate to
be treated with ARC-520, and its viral and s-antigen loads were many orders of
magnitude higher than what we expect to see in humans. Even with this high
bar, we showed that a low dose was effective and extremely well tolerated.
There is currently no way to reliably knock down key HBV antigens, thought to
be critical to achieving a functional cure of the disease. Our data in
multiple rodent models and now in a chimpanzee with chronic HBV infection
suggest that ARC-520 may be able to provide this. We believe this is very
important and positions us well for our planned clinical trials this year.”

The company will host an analyst event today in New York City to discuss
ARC-520 in more detail. Panel members for the event include: Dr. Robert Gish,
noted hepatologist and Arrowhead Clinical Advisory Board Chairman; Joan Block,
Executive Director and Co-founder of the Hepatitis B Foundation; Dr. Bruce
Given, Arrowhead COO and Head of R&D; and Dr. Chris Anzalone, Arrowhead
President and CEO. Investors and analysts may access the live presentation
from 12:30 to 2:00 p.m. EDT on the Arrowhead Research website at
www.arrowheadresearch.com or by calling 1.888.771.4371 (US toll free) or
1.847.585.4405 (US toll) and using the confirmation number: 34474854. The
webcast will also be available for 90 days following the event.

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 infection. 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.

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.

Contact:

Arrowhead Research Corporation
Vince Anzalone, CFA, 626-304-3400
or
The Trout Group
Lauren Glaser, 646-378-2972
ir@arrowres.com
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