![]() 3/13/08 Creating Value by Building Nanobusiness from Nanoscience Exhibit 99.1 |
![]() 3/13/08 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 |
![]() 3/13/08 Market Opportunity: The Next Industrial Revolution Complexes between double-stranded DNA and the archaeal chromatin protein Protein ~ 2 – 100 nm long MicroElectroMechanical (MEMS) device 10 – 100 m wide Carbon Nanotube ~1.3 nm diameter Ant ~ 5mm Red blood cells ~1.-5 m Quantum Corral of 48 Iron Atoms ~1.-5 m Zone Plate x-ray “lens” spacing~35 nm •The US Government is investing over $1 billion a year to fund nanotechnology research •Dozens of new nano- research centers have started since 2000 •Paradigm-shifting technology that is applicable across multiple industries •Attractive new company and roll-up opportunities |
![]() 3/13/08 • Large Market Opportunity • Model that Exploits Inefficient Market • Execution • Scalability Arrowhead Key Value Drivers |
![]() 3/13/08 Arrowhead Capitalizes on Market Imbalances Search for monetization • Research • Patents Investment Capital and Acquisitions Entrepreneurs Arrowhead Search for yield |
![]() 3/13/08 Arrowhead Drop-in Solutions Initial management team Scientific thought leaders Finance Business Development Partnerships Acquisition Capital Raising We are not a hotel Clinical Trials Design Studies Preclinical Trials Design Studies Regulatory IP Protection Two Strategies: Build Companies de Novo and roll up |
![]() 3/13/08 Value Philosophy • CURRENT market opportunity • Market risk mitigated • Minimize technology risk • Technology roll-up • Platform • Multiple opportunities/entry points • Time to exit/market • Scalability • Barriers to Entry • Growth Potential • Can we be #1 or #2 • Not the 99 th telecom deal in 2000 We are a growth stock that operates like a value play We build fundamentally strong companies rather than chasing the next bubble |
![]() 3/13/08 Execution: Arrowhead Subsidiaries |
![]() 3/13/08 Improving Drug Performance Through Effective Delivery Phase I clinical trials underway using Cyclosert™ + off-patent compound, Camptothecin, and Phase II planned for later in 2008 O OH O H OH OH O O OH OH O O OH OH O O OH O OH O O H OH OH O H OH O O O H O O H O O H O O H O OH O H OH OH O O OH OH O O OH OH O O OH O OH O O H OH OH O H OH O O O H O O H O O H O O H O OH O H OH OH O O OH OH O O OH OH O O OH O OH O O H OHO OH O H OH O O H O O H O O H O O H O OH O H OH OH O O OH OH O O OH OH O O OH O OH O O H OH OH O H OH O O O H O O H O O H O O H Insert’s Cyclosert™ is a nano-engineered delivery system that delivers therapeutic agents Model: Make “super-generics” and rescue failed compounds for larger companies to sell |
![]() 3/13/08 Enhancing The Delivery and Therapeutic Uses of RNAi RNA interference (RNAi) is a natural mechanism to selectively turn off genes Calando’s delivery molecule self- assembles with siRNA and a targeting agent siRNA is protected and directed to target tissue IND Submitted • First Targeted siRNA • First Delivered siRNA • First in Oncology |
![]() 3/13/08 ROS Neutralized ROS ROS Neutralized ROS We believe Tego has a dominant patent portfolio for making and derivatizing fullerenes Fullerenes are powerful antioxidants Leveraging IP position and academic Partnerships to address: Next generation MRI imaging and Treatment for macular degeneration |
![]() 3/13/08 Engineered Nanomaterials For Solid State Lighting And Solar Cells Blue LED Market Exceeds $4B They offer higher efficiency and longer lifetimes than conventional light sources However, current production techniques limit manufacturing yield and device efficiencies needed for broader market |
![]() 3/13/08 Expensive gallium nitride source wafer Proprietary process for transfer of thin layers Highly optimized, inexpensive support wafer + Optimized wafer for LED, solar cell production Simplify production process Decrease costs Aonex Solution |
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![]() 3/13/08 Carbon Nanotubes Properties Carbon nanotube (CNT) CNT film Electrical Mechanical Thermal Processing Cost 1000x more current capacity than copper Faster transistors than silicon 20x stronger than steel Comparable to diamond Compatible with inexpensive coating processes Comparable to current materials and declining |
![]() 3/13/08 CNTs Across Industries Electronics Materials Medicine Energy |
![]() 3/13/08 Roll-up CNT Technologies & Capabilities Nanopolaris Incorporated Initial University IP Roll Up Complete Acquisition of Unidym’s Product Line Complete Merger with CNI May 2005 December 2005 June 2006 April 2007 Created the dominant player in CNT production and applications |
![]() 3/13/08 Build a Platform by Building a Product • Leverage materials business for early revenue and development cycle • Strong growth in flat panel displays, interactive touch film devices and printable/flexible electronics • CNTs provide a unique fit of solutions, cost and performance benefits in all of these areas • Replace ITO • Potential future markets: solar cells, fuel cells, printable electronics |
![]() 3/13/08 Unique Opportunity • Market Inertia • Robustness of Product • Cost to Incorporate • Cost of Goods Most disruptive technologies face adoption challenges associated with: Unidym’s CNT replacement of ITO stands favorably against these |
![]() 3/13/08 Where Are We Now • Talented core team • Maturing subsidiaries • Approaching monetization • March 12 close: $2.46 per share • We should naturally trade at a multiple of the aggregate value of subs • Scalable • Significant value in our space and model |
![]() 3/13/08 ARWR Driving Shareholder Value: 2008 •Taking larger roles in building subs • Consolidating more responsibilities at ARWR • Increasing capital efficiency • Increasing ability to scale our model • Streamlining subsidiaries • Maturing subs allow us to shift focus • from solely building new companies • to monetizing existing subs and building new • Building a world class team of nanoscientists • Ask every day what is our core competency? • What can we uniquely provide to shareholders? • New subsidiaries and balanced portfolio |
![]() 3/13/08 Enhancing Shareholder Value By Restructuring Calando/Insert • Economies of scale via the merger • Similar technologies • Cheaper and more efficient development • More efficient business development • ARWR absorbs management • Scaled back strategy • Consolidation within biopharma • Expense of drug launch • Greater value to ARWR shareholders if focus on clinic • Focus on core competency • Leverage existing channels via partnerships • Transfer marketing expenses • Transfer later stage risk |
![]() 3/13/08 Calando/Insert 2008 Targets • IND for CALAA-01: March • Merger: April • File with the FDA for Phase II IT-101: April • Partnership for Investigator-led 2 nd Phase II IT-101: May • Partnership for Investigator-led 3 d Phase II IT-101: June • Enter into industry partnership: Nov • File new IND: Dec |
![]() 3/13/08 Aonex & Tego 2008 Targets Aonex Sale: August Tego AMD lead compound selection: May Lead MRI contrast agent selection: July |
![]() 3/13/08 Unidym 2008 Targets • Life Sciences spin-out: March • JDA for thin film solar: March • Sample near production quality for analog-resistive touch panel customers: April • OLED JDA: July-Sept • License deal and/or JDA for CNT-enhanced carbon fiber: Sept-Oct • New JDA LCD supplier(s): Sept-Oct • Printed electronics JDA: Oct-Nov • Revenue from CNT-based film sales to analog-resistive touch panel customers: Nov-Dec |
![]() 3/13/08 Benet Acquisition |
![]() Central Issue for Therapeutics: Biological Barriers • Endothelial and Epithelial Barriers • Reticulo-Endothelial System (RES) • Enzymatic Degradation • Hemo-Rheology • Tumor-Associated Osmotic & Interstitial Fluid Pressures • Cell, Endosomal Membrane • Nuclear Membrane • Ionic & Molecular Pumps Reference: M. Ferrari, Cancer Nanotechnologies, Nature Reviews Cancer, March 2005 |
![]() Leonardo Biosystems • Focus: Cancer Therapy • Multi-Stage Vectors • Strong IP Position |
![]() 200 nm 1 µm Strategy and Development • Focus: Breast and Ovarian Cancer • MSV as platforms for Arrowhead’s Nanotechs 1 µm 20 nm 20 nm 20 nm Back Side Front Side Cross Section Nucleation Layer Pores Cross Section |
Competitive Advantages • Nanoporous Silicon as Platform Material – Fully Biodegradable, Harmless – Ability to Manufacture in Desired Shape, Size • Bio-Barrier Avoidance • Multi-Modal Targeting • “Personalizing” Therapy by Imaging • Multiple Waves of Therapy from Same Vector, With Different Subcellular Targets at Predesigned Times |
![]() 3/13/08 Opportunity: Transition from replacement to enabling regeneration |
Nanotope’s Nanofibers: Unique Capabilities Self Assembly • Liquid to solid • Replace surgery with injection Mechanical Support • Guide scaffolding Bioactivity Biodegradable • Targeted signals • Sequestered signals |
![]() 3/13/08 Spinal Cord Rationale • Unserved Market • Compelling Market • Faster FDA track relative to other treatments • Understandable and compelling human story Aggregated Market Capital already allocated by medical system Large but not requiring mass marketing |
![]() 3/13/08 8-Week Untreated |
![]() 3/13/08 8-Week Treated |
![]() 3/13/08 Wound Healing Market Diabetic Wounds • >50mm diabetics in major pharmaceutical markets • >3mm with foot ulcers • >15% of diabetics will have foot ulcers at some point • $1.5bn spent in US on diabetic foot ulcers annually Bariatric Surgery • >100,000 in U.S. annually Surgery for Chronically ill patients • In US, >1mm patients on hemodialysis, corticosteroids, chemotherapy, or radiation treatment requiring surgery Cosmetic Surgery • 11.5mm in US in 2006 • $12.2 bn in US in 2006 |
![]() 3/13/08 Healed: Nanotope Compound Non-healed: Control Wounds treated with Nanotope Compound Versus Control (12 days) |
![]() 3/13/08 Peripheral Artery Disease Market • 20mm in US have PAD • 20% of people >70yrs have PAD • Market for peripheral arterial stents is $3bn in US • PAD market increases by 43% by 2020 • Reintroducing lost microvasculature is problematic |
![]() 3/13/08 Growth Story: Other Target Tissues Reversal/Prevention of Paralysis Wound Healing Stroke/Neurodegenerative Treatment Bone Regeneration Retinal Regeneration Myocardial Regeneration Cartilage Regeneration Platform for Stem Cell Differentiation/Implantation |
![]() 3/13/08 Arrowhead Shareholder Value Unique exposure to growth opportunities Platform opportunities with focus World class nanoscientists on our team Efficient model |