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Arrowhead Research Corp. F3Q10 (Qtr End 06/30/10) Earnings Call Transcript

This week, we announced an auction to license the new technology platform developed at MD Anderson Cancer Center to fight obesity. We have been exploring this market for quite some time in search for platforms that could address this very large set of markets in a new and powerful way. There may not be a market within medicine with larger direct and indirect economic costs. Hence obesity is an attractive target for us. We are very excited about the technology and we will continue to explore whether our license and potential new company will be a good opportunity for us.

Let’s now turn to science, the raw material used to address these large market opportunities. Our company’s initiatives must be based on world class science. There is simply no substitute. Calando has demonstrated its scientific bona fides on multiple occasions including through the Nature publication and most recently through its presentation of Phase I data at the American Society for Clinical Oncology 2010 annual meeting.

As we have discussed in the past, the trial is ongoing. It is progressing and we are continuing to enroll patients. As this common practice with clinical trials, we do not expect to be providing additional interim updates on data from the Phase I until it has been completed.

We expect the final data from this trial will be submitted for publication and appear in the new journal. Unidym has also demonstrated the power and breadth of its science on many occasions. We believe that the deep pattern portfolio puts us in a powerful position in the use of carbon nanotubes for electronic devices. Over the past quarter, Unidym's had key new patents granted by the US Patent Office to further build on its already substantial intellectual property base.

The nanotube technology has also move forward impressively over the past quarter but the publication in the prestigious journal proceedings of the National Academy of Scientist. The new data demonstrate cartilage regeneration in an established rapid model and we are very excited about continuing that development and addressing the large unmet need of medicine.

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