EX-99.1 2 dex991.htm PRESENTATION MADE ON MARCH 26, 2009 BY DR. CHRISTOPHER ANZALONE Presentation made on March 26, 2009 by Dr. Christopher Anzalone
Exhibit 99.1

This
presentation
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,
without
limitation,
our
developmental
stage
and
limited
operating
history,
our
ability
to
successfully
develop
products,
rapid
technological
change
in
our
markets,
demand
for
our
future
products,
legislative,
regulatory
and
competitive
developments
and
general
economic
conditions.
Our
Annual
Report
on
Form
10-K,
recent
and
forthcoming
Quarterly
Reports
on
Form
10-Q,
recent
Current
Reports
on
Forms
8-K
and
8-K/A,
and
other
SEC
filings
discuss
some
of
the
important
risk
factors
that
may
affect
our
business,
results
of
operations
and
financial
condition.
We
undertake
no
obligation
to
revise
or
update
publicly
any
forward-looking
statements
for
any
reason.
Safe Harbor Statement

Arrowhead in the context of
Inspiration vs
Pragmatism
Inspiration
(Innovation)
Pragmatism
(Operations)
Building Value follows a transition from focus on
inspiration to pragmatism or operations
•
Natural transition for a maturing company
Transition is underlined by the
current economic environment
Today’s primary
focus

2008 Was A Challenging Year
•
Implemented Revised Business Models for some subsidiaries
•
Lowered Cash Burn
•
Reduced Cost Structure
•
Consolidated of Management of Subsidiaries
•
CEOs of all subsidiaries are ARWR management

Reducing Cost Structure
Jan ‘08
Mar ‘08
Jun ‘08
Sept ‘08
Dec ‘08
Mar ‘09
Further reductions
in process
Arrowhead and Subsidiaries’
Head Count

2009 -
We are Cautiously Optimistic
•
Further Reductions in Cost Structure
•
Extend Runway
•
Greater Focus on Nearer-term Unidym
Opportunities
•
Calando Partnership Focus
•
Off-load burn
•
Retain upside potential
•
Generate License Revenues from Other Subsidiaries
•
Establish New and Further Leverage Existing Partnerships

2008:
•
Sold high-end proprietary CNT materials commercially
•
Actively sampled CNT films with multiple major touch panel
manufacturers
•
Strategic investment from Entegris
•
Customer that used CNTs
for antistatic polymers
•
Development Agreement with Nippon Kayaku to integrate Unidym
CNTs
films into solar cells
•
Demonstrated world’s first active matrix LCD screen using CNT films
•
Samsung demonstrated first-ever CNT-based electrophoretic
display
using Unidym’s
films
•
Samsung demonstrated first-ever CNT-based color 14.3’
format
electrophoretic
display using Unidym’s
films 
•
Demonstrated CNT-based analog resistive touch panel
•
Strategic investment from Tokyo Electron

2009
Goals:
•
Continue to cut cost structure by focusing model
•
Leverage partnerships
•
Increase ARWR position in Unidym
via stock transaction
•
Believe in the company
•
Significant
downside
potential
in
ARWR
stock
if
Unidym
fails,
but
only 51% of upside if Unidym
succeeds
•
Exclusive supply contract for outsourced CNT production 
•
Film channel partnership in Asia for touch panel market
•
Development agreement with a second major LCD manufacturer
•
Purchase order for film or ink for a commercial touch screen device

2008:
•
Began Phase I clinical trial for CALAA-01
•
We believe the first use of siRNA
against cancer in humans
•
We
believe
the
first
clinical
trial
of
systemic
delivery
of
siRNA
using
a delivery vehicle
•
Launched Phase II clinical trial for IT-101 in Ovarian Cancer
2009 Goals:
•
Complete CALAA-01 Phase I
•
Thus far very well tolerated
•
Partner both the Cyclosert
and RONDEL platforms
•
Limit future expenditures
•
Retain upside potential via possible milestone
payments and royalties

2008:
•
Partnership with Amberwave
Systems
•
We believe they are well positioned and capitalized
to bring the technology to market
•
Eliminates all costs going forward
•
Retains upside potential via milestone payments
and royalties
2009
Goals:
•
Secure next milestone payment of $500k

2008:
•
Explored use of large fullerene patent position for:
•
MRI contrast agent
•
Treatment of macular degeneration
•
Ceased operational expenditures to create license model
•
Enable ARWR to capture upside potential of fullerene-
based therapeutics based on Tego
IP via possible
milestone payments and royalties
•
Assume no costs associated with clinical trials
2009 Goals:
•
Establish partnership/license agreement

2008:
•
Launched to roll-up key IP for CNT-enabled supercapacitors
•
Leverage ARWR experience and knowledge in CNTs
•
Established corporate partnership for testing/development
•
Identified hybrid electric vehicles and inventory management
on the power grid as key target markets
•
Began testing prototypes
•
Operates as a virtual company
2009 Goals:
•
No current operational costs
•
Compete for federal funds with corporate partner

Minority Positions

•
Progress on focus areas of spinal cord regeneration and wound healing
•
New potential breakthrough in cartilage regeneration

•
Progress on multistage drug delivery platform
•
Ferrari
receives
$7mm
Innovator
award
to
support
Leonardo-based
work 
•
New potential breakthrough in cancer diagnostics
Animal data suggest that the chips may be used to identify
responders versus non-responders to cancer therapies

Capital Sources discussed at
last earnings call
1.
A single or series of partnerships for Calando
2.
Direct investments into Calando from strategic and/or financial
investors
3.
Funded JDAs
and partnerships for Unidym;
4.
Revenue
generated
from
Unidym
sales;
5.
License fees to Unidym;
6.
Sale of Unidym’s
bulk material business;
7.
Direct
investments
into
Unidym
from
strategic
and/or
financial
investors
8.
Sale of Tego;
9.
Tego
license fees; and
10.
Continued
scheduled
pay-outs
from
the
2008
Aonex
sale;

In process of partnering:
•
Expenses to decrease
•
Upside potential retained
•
Expenses to virtually zero
•
Upside potential retained
•
Reduced Costs
•
Anticipated increased     
ARWR position
•
Near commercialization
•
Potentially breakthrough technologies
•
High growth markets
In Summary…