Post Earnings Coverage as Arrowhead Reported Annual Results; Announced Collaboration with Amgen

Upcoming AWS Coverage on Alcobra Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 23, 2016 / Active Wall St. announces its post-earnings coverage on Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR) (“Arrowhead”). The Company posted its financial results for the full year 2016 (FY16) on December 14, 2016. The Pasadena, California-based Company’s revenues declined; however its net losses narrowed down during the reported period. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Arrowhead Pharma’s competitors within the Biotechnology space, Alcobra Ltd (NASDAQ: ADHD), reported on November 15, 2016, its financial results for the three and nine months ended September 30, 2016. AWS will be initiating a research report on Alcobra in the coming days.

Today, AWS is promoting its earnings coverage on ARWR; touching on ADHD. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=ARWR

http://www.activewallst.com/registration-3/?symbol=ADHD

Earnings Reviewed

In FY16, Arrowhead reported revenue of $158.33 thousand, which was much below $382.00 thousand recorded at the end of FY15. Revenue numbers for the reported period marginally missed market expectations by $0.02 million. During the reported period, the Company’s R&D expenses declined to $41.45 million from $47.27 million, primarily due to the completion of Phase 2 manufacturing campaign and conscious decision to employ thoughtful spending controls over preclinical programs.

For the year ended September 30, 2016, the Company’s total operating expenses came in at $81.90 million compared to $96.36 million in the prior year’s comparable period. Furthermore, the Company reported operating loss of $81.74 million in FY16 versus operating loss of $95.97 million in the year ended September 30, 2015.

The pharmaceutical Company’s FY16 net loss narrowed down to $81.72 million, or $1.34 per diluted share, from net loss of $91.94 million, or $1.60 per diluted share, in FY15. However, the net loss during the reported period was wider than Wall Street’s net loss estimate by $0.03 per diluted share.

Clinical Trials

In November 2016, the Company discontinued development of ARC-520, ARC-521, and ARC-AAT and redeployed its resources and focus toward utilizing its new proprietary subcutaneous and extra-hepatic delivery systems. Furthermore, the Company informed the Wall-Street that it has reduced its workforce by approximately 30%, primarily due to discontinuation of its existing clinical programs. However, Arrowhead has necessary resources to support current and potential partner-based programs and its projects in the pipeline.

Collaboration with Amgen

On September 29, 2016, Arrowhead and Amgen (NASDAQ: AMGN) announced two license and collaboration agreements to develop and commercialize RNA interference (RNAi) therapies for cardiovascular disease. As per the terms of the agreement, Arrowhead will receive $35 million in upfront payments and $21.5 million in the form of an equity investment by Amgen in Arrowhead’s common stock. Arrowhead is also eligible for $617 million in further milestone and equity payments. Moreover, Amgen will be wholly responsible for funding and conducting all clinical development and commercialization of the therapies.

Cash Flow & Balance Sheet

In the year ended on September 30, 2016, the Company’s net cash used in operating activities was $64.43 million compared to $65.71 million in the prior year’s corresponding period. The Company had cash and cash equivalents balance of $85.37 million as on September 30, 2016, compared to $81.21 million at the close of books on September 30, 2015.

In September 2016, the Company received $14 million of the total $56.5 million upfront cash payments and equity investment from Amgen, while the remainder $42.5 million was received by the Company in November 2016. Apart from the above equity investment, Arrowhead sold 7.6 million shares of its common stock to certain institutional investors for net proceeds of approximately $43.2 million.

Stock Performance

At the close of trading session on December 22, 2016, Arrowhead Pharma’s stock price rose 7.87% to end the day at $1.37. A total volume of 2.02 million shares were exchanged during the session, which was above the 3-month average volume of 1.66 million shares. The stock currently has a market cap of $104.08 million.

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