Post by dpc4u on Mar 10, 2016 10:54:33 GMT -5
Arrowhead Annual meeting 3-8-16
Derekiz meeting notes:
The meeting came to order and all items in the proxy were approved. From there on CA took questions from the attending shareholders for a little over an hour. My observation was that he was as upfront as he could be especially regarding further financing of Arrowhead’s programs. At least four individual investors including myself asked him questions and related our concerns about the funds we will need, when we will get them, and what type of financing that would entail. I will summarize that below.
First the lawsuit has no change in status. There have been no discussions regarding damages or settlement. It sounds like the parties haven’t interfaced and are waiting on the judge.
CA feels Arrowheads plate is full with the programs they have now and with the cash to move them forward. New programs will have to wait until ARWR has funds, the space, and the bodies to move them forward.
Only very recently have they decided to actively pursue partnerships/collaborations. Part of that reasoning is that he feels the programs are mature enough and the data robust enough to attract a collaboration. CA feels that his preferred mode of obtaining additional funds is through a DPC being used to test delivery of other pharma’s payloads especially to liver targets. He would like to create those types of deals which he feels are less dilutive.
Will they partner on their current indications HBV and AAT? It’s possible but he thinks that that could be quite dilutive at this juncture. As more positive data comes in coming months then their negotiating position could improve. He feels that at this juncture no one would step up and pay the company what the technology is worth. So more data will create leverage.
Audience participants reminded him multiple times that we are operating under time restraints at the same time we are expanding our plant and personnel. He is completely aware of that and said that his and top managements only job going forward is to obtain partners/ collaborators and the funds needed to move the programs forward. But he did say that he would not rule out funding from capital markets either if need be but it’s his least favorable choice. CA is very aware that macro economic problems have influenced the markets and that he has to take them into consideration when raising funds and that the suppression of stock prices does not help.
CA related that he believes that ARWR will be able to silence all aspects of the HBV genome. He related that because of our extensive experience he believes we have the most potent sequences to suppress the HBV genome. “I believe these sequences are by far the best on God’s green earth.”
He said that if he sees good data and functional cures with ARC 520/521 he would be more than willing to possibly build their own sales force in Western Europe and the U.S. Says they would not have a problem obtaining funds to do this with functional cures.
CA said that Merck, Gilead, and J&J were interested in HBV and if ARWR shows full cures he would expect to be pursued by companies like these.
The next question was about a relationship with Roche because of the proximity of their research facility with ours. It was a direct question but he became cagey about a relationship and said he couldn’t comment on vendor relationships.
As for our new facility we need that because we have outgrown our current facility. No bench space or ability to expand. Said he wouldn’t have pushed it off if he felt that they wouldn’t have the capital going forward to afford it. There are enough potential milestones coming up to obtain capital to pay for it. CA said obtaining capital, partnerships, and collaborations are “All on his shoulders going forward”.
ARC AAT- CA said this is a race with ALNY. Believes our timing is very good but we must move quickly and win this race. He said some nice things about ALNY’s therapeutic modality but again felt that DPCs are far more efficient and safe.
ARC- F12 CA was well aware of the potential size of the market above and beyond HAE. In fact, he was the one who brought it to our attention and discussed the potential.
In closing he sees Arrowhead as a drug factory working with other pharma rapidly churning out drug candidates. “We can allocate that machine to drug partners and that would create tremendous value for the company and shareholders.
My personal impression was that he wasn’t uncomfortable with any question and answered them in depth. It was very different than listening or watching him at conferences. He didn’t have to do the analyst song and dance and he had no time constraints. He appears to be very enthusiastic about the work they are doing and came across as quite confident and superbly knowledgeable. My opinion is that I love the science and what it might do for suffering patients but I won’t become a big CA fan until he delivers the scientific and financial goods that brings in the money.
Derekiz meeting notes:
The meeting came to order and all items in the proxy were approved. From there on CA took questions from the attending shareholders for a little over an hour. My observation was that he was as upfront as he could be especially regarding further financing of Arrowhead’s programs. At least four individual investors including myself asked him questions and related our concerns about the funds we will need, when we will get them, and what type of financing that would entail. I will summarize that below.
First the lawsuit has no change in status. There have been no discussions regarding damages or settlement. It sounds like the parties haven’t interfaced and are waiting on the judge.
CA feels Arrowheads plate is full with the programs they have now and with the cash to move them forward. New programs will have to wait until ARWR has funds, the space, and the bodies to move them forward.
Only very recently have they decided to actively pursue partnerships/collaborations. Part of that reasoning is that he feels the programs are mature enough and the data robust enough to attract a collaboration. CA feels that his preferred mode of obtaining additional funds is through a DPC being used to test delivery of other pharma’s payloads especially to liver targets. He would like to create those types of deals which he feels are less dilutive.
Will they partner on their current indications HBV and AAT? It’s possible but he thinks that that could be quite dilutive at this juncture. As more positive data comes in coming months then their negotiating position could improve. He feels that at this juncture no one would step up and pay the company what the technology is worth. So more data will create leverage.
Audience participants reminded him multiple times that we are operating under time restraints at the same time we are expanding our plant and personnel. He is completely aware of that and said that his and top managements only job going forward is to obtain partners/ collaborators and the funds needed to move the programs forward. But he did say that he would not rule out funding from capital markets either if need be but it’s his least favorable choice. CA is very aware that macro economic problems have influenced the markets and that he has to take them into consideration when raising funds and that the suppression of stock prices does not help.
CA related that he believes that ARWR will be able to silence all aspects of the HBV genome. He related that because of our extensive experience he believes we have the most potent sequences to suppress the HBV genome. “I believe these sequences are by far the best on God’s green earth.”
He said that if he sees good data and functional cures with ARC 520/521 he would be more than willing to possibly build their own sales force in Western Europe and the U.S. Says they would not have a problem obtaining funds to do this with functional cures.
CA said that Merck, Gilead, and J&J were interested in HBV and if ARWR shows full cures he would expect to be pursued by companies like these.
The next question was about a relationship with Roche because of the proximity of their research facility with ours. It was a direct question but he became cagey about a relationship and said he couldn’t comment on vendor relationships.
As for our new facility we need that because we have outgrown our current facility. No bench space or ability to expand. Said he wouldn’t have pushed it off if he felt that they wouldn’t have the capital going forward to afford it. There are enough potential milestones coming up to obtain capital to pay for it. CA said obtaining capital, partnerships, and collaborations are “All on his shoulders going forward”.
ARC AAT- CA said this is a race with ALNY. Believes our timing is very good but we must move quickly and win this race. He said some nice things about ALNY’s therapeutic modality but again felt that DPCs are far more efficient and safe.
ARC- F12 CA was well aware of the potential size of the market above and beyond HAE. In fact, he was the one who brought it to our attention and discussed the potential.
In closing he sees Arrowhead as a drug factory working with other pharma rapidly churning out drug candidates. “We can allocate that machine to drug partners and that would create tremendous value for the company and shareholders.
My personal impression was that he wasn’t uncomfortable with any question and answered them in depth. It was very different than listening or watching him at conferences. He didn’t have to do the analyst song and dance and he had no time constraints. He appears to be very enthusiastic about the work they are doing and came across as quite confident and superbly knowledgeable. My opinion is that I love the science and what it might do for suffering patients but I won’t become a big CA fan until he delivers the scientific and financial goods that brings in the money.
