| Company: | Arrowhead Research Corporation |
| Ticker Symbol: | ARWR |
| Class Period: | Aug-12-14 to Oct-8-14 |
| Date Filed: | Oct-23-14 |
| Lead Plaintiff Deadline: | Dec-22-14 |
| Court: | Central District of California |
| Allegations: | |
Arrowhead is a biopharmaceutical company whose main business is developing RNA Interference ("RNAi") therapeutics. RNAi is a process by which the RNA molecules prevent gene expression and thereby destroys specific micro-RNA ("mRNA") molecules. Arrowhead's focus is to develop drugs that target the RNAi mechanism that will suppress disease-causing genes.
The Complaint alleges that throughout the Class Period, Defendants materially misstated clinical trial information from its experimental hepatitis B therapy ARC-520 by falsely suggesting that the Company's therapy was more effective than it actually was. On October 8, 2014, Arrowhead released disappointing data from its experimental hepatitis B therapy ARC-520. On that same day, an article published on TheStreet.com reported that Arrowhead CEO Chris Anzalone and his team knew for months that ARC-520 dosed at 1 mg/kg and 2 mg/kg yielded 0.2-log and 0.3-log reductions in hepatitis B viral load. Yet, Arrowhead executives led investors to believe that ARC-520 was more potent and achieved viral load reductions in the range of 0.7 log or higher.
On August 12, 2014, Defendants held a conference call to report on Q3 2014 earnings and the progress of the Phase IIa study. During this call, Defendants made materially false and misleading statements and/or failed to disclose the true viral reduction level that ARC-520 can induce in humans, suggesting that its viral reduction was similar to the chimpanzee result (0.8 log reduction) and closer to 1 log (90% reduction).
On October 8, 2014, the Company announced the results of its Phase IIa study, revealing that ARC-520 dosed at 2 mg/kg only induced a 0.3 log reduction in HBsAG – far short of what Defendant previously suggested.
On this news, Arrowhead stock fell $5.48 per share, or almost 44%, on extraordinary volume from its previous closing price to close at $7.03 per share on October 8, 2014.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
