Jan. 26, 2007 — Arrowhead Research Corporation announced that it will sponsor the continued research of Dr. Eric Davidson’s laboratory at the California Institute of Technology focused on the re-engineering of the internal control systems of cells. This field of inquiry is expected to have applications for the controlled differentiation of stem cells and could, in the longer-term, have therapeutic applications for the treatment of cancer and other diseases.

“Dr. Davidson and his colleagues have made recent breakthroughs in understanding the large networks of interacting regulatory genes that govern the development of cells,” said R. Bruce Stewart, Arrowhead’s Chairman in a prepared statement. “These advances could open up a whole new paradigm in applied nanomedicine-similar to the discovery of genetic engineering and RNAi. We are honored to be associated with Dr. Davidson, whose distinguished career in this field has spanned four decades.”

A better understanding of the genetic mechanisms of cell differentiation is expected to provide the basis for more precise manipulation of cell development. Dr. Davidson’s research employs a rational approach focused on understanding the control mechanisms of the cell.

The agreement between Arrowhead and the California Institute of Technology provides for $255,000 annually for three years and an exclusive right for Arrowhead to license the resultant technology.

In addition to funding Dr. Davidson’s research, Arrowhead operates two nanomedicine subsidiaries, Insert Therapeutics, Inc., now in clinical trials with its initial anti-cancer therapeutic, and Calando Pharmaceuticals, Inc., a leading developer of RNAi therapeutics.