Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) Q3 2023 Earnings Call Transcript

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Brendan Smith: Hi, guys. Thanks for taking my questions. Maybe a couple of quick ones from us. First, I just wanted to ask actually about some of the CNS programs that you alluded to that you’re going to kind of announce and bring it to the clinic over the next couple of years. Really, I guess, how are you kind of thinking about which indications to move there? Are you really thinking to focus more on final indications, given that the tissue is a little bit easier to get to or really what is kind of your strategy and deciding where to go there? Kind of just trying to understand, where you think is especially right for RNAi. And then if I could, just really quickly, I wanted to ask a little bit more about kind of your financing plan.

Obviously, you have a decent balance sheet for now. But I mean, to your point, you haven’t raised equity in a few years, but you have a fair number of important readouts coming up and a lot of studies going on. So as we’re kind of just looking at cash burn over the next few years, what really is kind of your strategy for the next 18, 24 months?

Chris Anzalone: Sure. I’ll take that, and then I’ll let Javier and James take a prior one. So look, as I mentioned in the prepared remarks, partnering is really a cornerstone of our financing strategy. And so we are exploring a number of different options really as we speak that are important for us. There are also other avenues. We are also exploring the possibility of doing some specific product financing for APOC3. We know that’s going to be a CBOT. We know that’s going to be expensive. And we are exploring the cost of capital for financing that in return for some royalties on that product for some period of time, things of that nature. And I think that we can get a long way to our financing needs through those levers and we are looking to pull those levers certainly in the near to mid-term, I think it’s important for us.

James Hamilton: And then in regards to the CNS targets, we’re interested in targets that may involve the spinal cord, as you mentioned, but also targets in the cortex, we can get good knockdown in various parts of the cortex and we’re looking at some targets in the deeper brain, although that can be a little bit more challenging to achieve the same level of knockdown. And then we like — as we do for other tissue types targets with a degree of genetic validation that are either genetically defined or have some level of genetic validation behind them and preferably a degree of clinical validation with other modalities that are out there that have shown success that we could follow-on.

Brendan Smith: All right. Thanks.

Operator: Thank you. I’m showing no further questions at this time. I would now like to turn the conference back to Chris Anzalone for closing remarks.

Chris Anzalone: Thanks everyone for joining us today and I hope you have an enjoyable summer, and we look forward to talking to you soon.

Operator: All right. This concludes today’s conference call. Thank you for participating. You may now disconnect.

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