Arrowhead Reports Fiscal 2013 Third Quarter Financial Results
Conference Call Today at 4:30 p.m. Eastern Time
PASADENA, Calif. -- August 7, 2013
Arrowhead Research Corporation (NASDAQ: ARWR), a biopharmaceutical company
developing targeted RNAi therapeutics, today announced financial results for
its fiscal 2013 third quarter ended June 30, 2013. The company is hosting a
conference call at 4:30 p.m. Eastern time to discuss results. To participate,
please dial 877-300-8521 (toll free from the US), 855-669-9657 (toll free from
Canada), or 412-317-6026 (for international callers). Investors may also
access a live audio webcast of this conference call on the Company's website
Fiscal 2013 Third Quarter and Recent Company Highlights
*Strengthened the balance sheet with a $36 million financing from a
syndicate of high-quality biotech investors. This provided sufficient
capital to fund development into 2015;
*Successfully completed the Clinical Trial Notification regulatory process
in Australia for ARC-520; and
*Initiated dosing in a Phase 1 trial of ARC-520 with the second of six
planned dose cohorts scheduled to be completed today.
Selected Fiscal 2013 Third Quarter Financial Results
Total operating expenses for the three months ended June 30, 2013 were $6.4
million, compared to 6.9 million for the three months ended June 30, 2012.
Net loss attributable to Arrowhead for the three months ended June 30, 2013
was $6.1 million, or $0.23 per share based on 26.1 million weighted average
shares outstanding. This compares with a net loss attributable to Arrowhead of
$8.0 million, or $0.71 per share based on 11.2 million weighted average shares
outstanding, for the three months ended June 30, 2012.
Net cash used in operating activities for the first nine months of fiscal 2013
were $13.6 million, compared with $10.8 million in the prior year period. The
increase in cash used in operating activities reflects final pre-clinical
requirements, including GMP manufacturing and GLP toxicology, to enable our
HBV candidate, ARC-520, to enter clinical trials.
The company’s cash and short-term investments were $33.1 million at June 30,
2013, compared to $3.4 million at September 30, 2012. The increase in our cash
balance reflects the $36 million offering closed in May 2013. During the first
nine months of the fiscal year, cash outlays for R&D were $10.1 million, and
cash used in G&A were $4.4 million. Cash inflows during the first nine months
of the fiscal year included $42.5 million from the sale of equity securities,
$500,000 in revenue, and $1.2 million in proceeds related to the sale of our
former subsidiary, Unidym.
Shares outstanding at June 30, 2013, were 31.3 million up 17.7 million from
13.6 million at September 30, 2012.
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 globally. 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 point of DNA
transcription, 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. In a chimpanzee chronically
infected with HBV and high viremia and antigenemia, ARC-520 induced rapid
reductions of 90-95% in HBV DNA, e-antigen, and s-antigen. Arrowhead is
conducting a phase 1 single ascending dose study in normal volunteers, which
the company expects to follow with a phase 2a study in chronic HBV patients.
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
(RNAi) mechanism that efficiently and specifically silence target genes.
Arrowhead technologies also enable partners to create peptide-drug conjugates
(PDCs) that specifically home to cell types of interest while sparing
off-target tissues. Arrowhead’s pipeline includes programs in chronic
hepatitis B virus, obesity, and cancer.
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 email@example.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.
Arrowhead Research Corporation
Vince Anzalone, CFA
The Trout Group
Lauren Glaser, 646-378-2972
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