Arrowhead has funded its extensive development program through a...

Arrowhead has funded its extensive development program through a combination of (i) capital raising, (ii) equity investment from pharmas as part of collaboration and licensing agreements and (iii) full funding of multiple programs secured as part of the same collaboration and licensing agreements.

Arrowhead’s total R & D expense for fiscal year 2017, 2018, 2019 and 2020 was (US) $51m, $53m, $81m and $128.9m respectively (Total $314m).

Revenue in 2017, 2018, 2019 and 2020 was (US) $31.4m, $16.1m, $168.8m and $88m respectively (Total $304m).

In fiscal year 2016, Arrowhead raised US$45m from a placement to select institutional investors. Approximately 7.63 million shares of common stock were issued at a price of $5.90 per share.

Also in fiscal year 2016, Arrowhead entered into two collaboration and license agreements with Amgen. The Company received $35 million in upfront payments and $21.5 million in the form of an equity investment by Amgen. The deal made Arrowhead eligible to receive up to $617 million in option payments and development, regulatory and sales milestone payments.

In October 2018, Arrowhead entered into a collaboration, license and option agreement with Janssen. It also entered into a Stock Purchase Agreement with Johnson & Johnson Innovation-JJDC.

Under the Global License Agreement, Janssen was to be wholly responsible for clinical development and commercialization beyond the Phase 1/2 study that Arrowhead was completing at the time.

Under the Collaboration Agreement, Janssen was able to select up to three new targets against which Arrowhead was to develop clinical candidates. Discovery, optimization and preclinical development on the selected targets was to be conducted by Arrowhead, entirely funded by Janssen, sufficient to allow the filing of an IND or equivalent, at which time Janssen was to have the option to take an exclusive license. If the option was exercised, Janssen was to be wholly responsible for clinical development and commercialization.

Under the terms of the agreements, Arrowhead received US $175m as an upfront payment, $75m in the form of an equity investment by JJDC @ $23 per share, and was entitled to up to $1.6bn in development and sales milestones payments for the License Agreement, and up to $1.9bn in development and sales milestone payments for the three additional targets covered under the Collaboration Agreement. Arrowhead was further eligible to receive tiered royalties up to mid teens under the License agreement and up to low teens under the Collaboration Agreement on product sales. During the year ended September 30, 2019, the Company received two $25m developmental milestones from Janssen.

In December 2019, Arrowhead priced a secondary offering, issuing 4 million shares @ $58, raising approximately $232m.

At fiscal year- end 2016, 2017, 2018, 2019 and 2020 there were 74.2m, 74.8m, 92.2m, 95.7m and 102.8m respectively in shares issued and outstanding.

Arrowhead now has 10 drug candidates targeting the liver (7 of which are partnered), 3 targeting the lung, 1 targeting tumour and 1 targeting muscle.