ARC-AAT

December 31, 2014 By Mark Terry , BioSpace.com Breaking News Staff Pasadena, Calif.-based Arrowhead Research Corporation stock took a big jump this week on rumors of a possible acquisition by Foster City, Calif.-based Gilead Sciences . Selling at $6.57 at start of trade on December 30, stock rose to a high of $8.44 but has dipped a bit in morning trading Wednesday. Arrowhead has a number of promising compounds in its pipeline, most notably ARC-520, a potential treatment for chronic hepatitis B. Earlier this month the company announced it had submitted an Investigational New drug (IND) application to the U.S. Food and Drug Administration (FDA) for ARC-520. It intends to submit applications in Europe and Asia as well. “As with our recent application to begin a Phase 1 study with ARC-AAT, this IND represents achievement of a key 2014 goal,” said Christopher Anzalone , Arrowhead president and chief executive, in a statement. “We look forward to beginning multi-dose studies with ARC-520.” ARC-520 is a small interfering RNAs (siRNAs) that works upstream of the reverse transcription process, intervening at the messenger RNA (mRNA) level. A Phase 1 single ascending dose study in normal volunteers has been completed and Arrowhead is currently conducting a single dose Phase 2a study in chronic HBV patients. Gilead Sciences has a cocktail drug for the treatment of Hepatitis C. Earlier this week Gilead announced it had expanded an agreement with Johnson & Johnson to develop two more cocktail pills to treat HIV. One of the compounds will utilize Gilead ’s tenofovir alafenamide (TAF) and Emtriva with J&J ’s Edurant. The second pill will combine Gilead ’s TAF, Emtriva and Tybost with Janssen ’s Prezista. At least one of the reasons behind this is Gilead is working to replace Viread with TAF in some of its compounds because Viread’s patent will expire earlier than TAF. The new drugs are also believed to be safer, with less tendency toward kidney failure and fewer problems with bone mineral density. Gilead stock recently took a hit after news that Express Scripts Holding Co. plans to block its U.S. patients from receiving Sovaldi and Harvoni. The stock, which sold for $108.45 on Friday, Dec. 19, dropped to $89.45 per share by Dec. 24. Pre-market price today is $95.28. Arrowhead has a lot of competition in the RNAi drug market, including Alnylam Pharmaceuticals , which is also working on an RNAi medication for hepatitis B. A Gilead acquisition would strengthen the company’s position in the Hepatitis treatment market, although to date it’s all just rumor. It has been noted, however, that Gilead has about $6.2 billion in cash available, indicating they have the resources for an acquisition if they choose to move forward.