Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2020 | Feb. 01, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ARWR | |
Entity Registrant Name | ARROWHEAD PHARMACEUTICALS, INC. | |
Entity Central Index Key | 0000879407 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 103,792,410 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-38042 | |
Entity Tax Identification Number | 46-0408024 | |
Entity Address, Address Line One | 177 E. Colorado Blvd | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Pasadena | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91105 | |
City Area Code | 626 | |
Local Phone Number | 304-3400 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, Par Value $0.001 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 139,921 | $ 143,583 |
Accounts receivable | 9,002 | 845 |
Prepaid expenses | 7,069 | 4,250 |
Other current assets | 2,318 | 1,782 |
Marketable securities | 86,012 | 85,020 |
Short term investments | 79,394 | 86,890 |
TOTAL CURRENT ASSETS | 323,716 | 322,370 |
Property and equipment, net | 33,730 | 30,881 |
Intangible assets, net | 14,938 | 15,363 |
Long term investments | 110,855 | 137,487 |
Right-of-use assets | 15,747 | 16,138 |
Other assets | 265 | 265 |
TOTAL ASSETS | 499,251 | 522,504 |
CURRENT LIABILITIES | ||
Accounts payable | 4,827 | 6,829 |
Accrued expenses | 9,570 | 5,389 |
Accrued payroll and benefits | 2,753 | 8,061 |
Lease liabilities | 1,183 | 1,095 |
Deferred revenue | 6,744 | 19,291 |
Other current liabilities | 17 | 16 |
TOTAL CURRENT LIABILITIES | 25,094 | 40,681 |
LONG-TERM LIABILITIES | ||
Lease liabilities, net of current portion | 19,685 | 20,044 |
TOTAL LONG-TERM LIABILITIES | 19,685 | 20,044 |
Commitments and contingencies (Note 7) | ||
Arrowhead Pharmaceuticals, Inc. stockholders' equity: | ||
Common stock, $0.001 par value; 145,000 shares authorized; 103,194 and 102,376 shares issued and outstanding as of December 31, 2020 and September 30, 2020, respectively | 195 | 195 |
Additional paid-in capital | 978,655 | 965,410 |
Accumulated other comprehensive income (loss) | 198 | 18 |
Accumulated deficit | (524,576) | (503,844) |
TOTAL STOCKHOLDERS’ EQUITY | 454,472 | 461,779 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 499,251 | $ 522,504 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Sep. 30, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 145,000,000 | 145,000,000 |
Common stock, shares issued | 103,194,000 | 102,376,000 |
Common stock, shares outstanding | 103,194,240 | 102,376,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
REVENUE | $ 21,303 | $ 29,455 |
Type of Revenue [Extensible List] | arwr:TechnologyLicensesCollaborativeResearchAndDevelopmentArrangementsResearchGrantAndProductSalesMember | arwr:TechnologyLicensesCollaborativeResearchAndDevelopmentArrangementsResearchGrantAndProductSalesMember |
OPERATING EXPENSES | ||
Research and development | $ 36,555 | $ 23,374 |
General and administrative expenses | 8,802 | 10,934 |
TOTAL OPERATING EXPENSES | 45,357 | 34,308 |
OPERATING INCOME (LOSS) | (24,054) | (4,853) |
OTHER INCOME (EXPENSE) | ||
Interest income (expense), net | 2,169 | 2,180 |
Other income (expense) | 1,153 | |
TOTAL OTHER INCOME (EXPENSE) | 3,322 | 2,180 |
INCOME (LOSS) BEFORE INCOME TAXES | (20,732) | (2,673) |
NET INCOME (LOSS) | $ (20,732) | $ (2,673) |
NET INCOME (LOSS) PER SHARE - BASIC | $ (0.20) | $ (0.03) |
NET INCOME (LOSS) PER SHARE - DILUTED | $ (0.20) | $ (0.03) |
Weighted average shares outstanding - basic | 102,757 | 97,090 |
Weighted average shares outstanding - diluted | 102,757 | 97,090 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||
Foreign currency translation adjustments | $ 180 | $ 196 |
COMPREHENSIVE INCOME (LOSS) | $ (20,552) | $ (2,477) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non-controlling Interest |
Beginning Balance, Amount at Sep. 30, 2019 | $ 244,035 | $ 187 | $ 664,086 | $ (392) | $ (419,291) | $ (555) |
Beginning Balance, Shares at Sep. 30, 2019 | 95,506,000 | |||||
Stock-based compensation | 4,491 | 4,491 | ||||
Exercise of stock options, Amount | 3,002 | $ 1 | 3,001 | |||
Exercise of stock options, Shares | 472,000 | |||||
Common stock - restricted stock units vesting, Amount | $ 1 | (1) | ||||
Common stock - restricted stock units vesting, Shares | 533,000 | |||||
Common stock - issued for cash, Amount | 250,478 | $ 5 | 250,473 | |||
Common stock - issued for cash, Shares | 4,600,000 | |||||
Foreign currency translation adjustments | 196 | 196 | ||||
Net income (loss) | (2,673) | (2,673) | ||||
Ending Balance, Amount at Dec. 31, 2019 | 499,529 | $ 194 | 922,050 | (196) | (421,964) | $ (555) |
Ending Balance, Shares at Dec. 31, 2019 | 101,111,000 | |||||
Beginning Balance, Amount at Sep. 30, 2020 | 461,779 | $ 195 | 965,410 | 18 | (503,844) | |
Beginning Balance, Shares at Sep. 30, 2020 | 102,376,000 | |||||
Stock-based compensation | 8,144 | 8,144 | ||||
Exercise of stock options, Amount | $ 5,101 | 5,101 | ||||
Exercise of stock options, Shares | 537,612 | 538,000 | ||||
Common stock - restricted stock units vesting, Shares | 280,000 | |||||
Foreign currency translation adjustments | $ 180 | 180 | ||||
Net income (loss) | (20,732) | (20,732) | ||||
Ending Balance, Amount at Dec. 31, 2020 | $ 454,472 | $ 195 | $ 978,655 | $ 198 | $ (524,576) | |
Ending Balance, Shares at Dec. 31, 2020 | 103,194,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (20,732) | $ (2,673) |
Stock-based compensation | 8,144 | 4,492 |
Depreciation and amortization | 1,848 | 1,260 |
Amortization/(accretion) of note premiums | (302) | 177 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,157) | (684) |
Prepaid expenses and other current assets | (3,193) | 1,378 |
Deferred revenue | (12,547) | (28,771) |
Accounts payable | (2,002) | 4,552 |
Accrued expenses | (1,126) | (4,214) |
Other | (855) | 953 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (38,922) | (23,530) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (4,271) | (4,320) |
Proceeds from sale of marketable securities | 34,429 | 13,600 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 30,158 | 9,280 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from the exercises of stock options | 5,102 | 3,001 |
Proceeds from the issuance of common stock | 250,477 | |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 5,102 | 253,478 |
NET INCREASE (DECREASE) IN CASH | (3,662) | 239,228 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 143,583 | 221,804 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 139,921 | $ 461,032 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization and Significant Accounting Policies | NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Nature of Business and Recent Developments Arrowhead Pharmaceuticals, Inc. develops medicines that treat intractable diseases by silencing the genes that cause them. Using a broad portfolio of RNA chemistries and efficient modes of delivery, Arrowhead therapies trigger the RNA interference mechanism to induce rapid, deep and durable knockdown of target genes. RNA interference (“RNAi”) is a mechanism present in living cells that inhibits the expression of a specific gene, thereby affecting the production of a specific protein. Arrowhead’s RNAi-based therapeutics leverage this natural pathway of gene silencing. The Company's pipeline includes ARO-APOC3 for hypertriglyceridemia, ARO-ANG3 for dyslipidemia, ARO-HSD for liver disease, ARO-ENaC for cystic fibrosis, ARO-HIF2 for renal cell carcinoma, ARO-LUNG2 as a candidate to treat chronic obstructive pulmonary disorder (“COPD”) and ARO-COV for treatment for the current novel coronavirus that causes COVID-19 and other possible future pulmonary-borne pathogens. -JNJ1, ARO-JNJ2 and ARO-JNJ3 are being developed for undisclosed liver-expressed targets under a collaboration agreement with Janssen Pharmaceuticals, Inc. (“Janssen”). for chronic hepatitis B virus was out-licensed to Janssen in October 2018. for cardiovascular disease was out-licensed to Amgen Inc. (“Amgen”) in 2016. Arrowhead operates lab facilities in Madison, Wisconsin and San Diego, California, where the Company’s research and development activities, including the development of RNAi therapeutics, are based. The Company’s principal executive offices are located in Pasadena, California. During the first quarter of fiscal year 2021, the Company continued to develop its pipeline and partnered candidates. The Company hosted a key opinion leader webinar on its cardiometabolic candidates, ARO-APOC3 and ARO-ANG3. The Company presented positive interim clinical data from AROAAT2002, an open-label Phase 2 clinical study of ARO-AAT, the Company’s second-generation investigational RNAi therapeutic being developed as a treatment for the rare genetic liver disease associated with AATD. The Company also announced positive clinical data on its cardiometabolic candidates, ARO-APOC3 and ARO-ANG3, at the American Heart Association (“AHA”) Scientific Session 2020. Finally, the Company announced a collaboration with Takeda to co-develop and co-commercialize ARO-AAT for alpha-1 antitrypsin-associated liver disease. See Note 2 for more information regarding the collaboration with Takeda. The Company’s partnered candidates under its collaboration agreements also continue to progress. Janssen began dosing patients in a Phase 2b triple combination study called REEF-1, designed to enroll up to 450 patients with chronic hepatitis B infection. In connection with the start of this study, Arrowhead earned a $25.0 million milestone payment under the Company’s License Agreement with Janssen (“Janssen License Agreement”). The Company is currently performing discovery, optimization and preclinical research and development for ARO-JNJ1, ARO-JNJ2 and ARO-JNJ3 for Janssen as part of the Company’s Research Collaboration and Option Agreement with Janssen (“Janssen Collaboration Agreement”). The Company’s collaboration agreement with Amgen for Olpasiran (previously referred to as AMG 890 or ARO-LPA), (the “Second Collaboration and License Agreement” or “Olpasiran Agreement”), In July 2020, Amgen initiated a Phase 2 clinical study, which resulted in a $20.0 million milestone payment to the Company. Olpasiran On October 7, 2020, the Company entered into an Exclusive License and Co-Funding Agreement with Takeda (the “Takeda License Agreement”) . Under the Takeda License Agreement, Takeda and the Company will co-develop the Company’s ARO-AAT program. Within the United States, ARO-AAT, if approved, will be co-commercialized under a 50 /50 profit sharing structure. Outside the United States, Takeda will lead the global commercialization strategy and receive an exclusive license to commercialize ARO-AAT with the Company eligible to receive tiered royalties of 20 % to 25 % on net sales. In January 2021, the Company received $ 300.0 million as an upfront payment and is eligible to receive potential development, regulatory and commercial milestones of up to $ 740.0 million. The revenue recognition for these collaboration agreements is discussed further in Note 2 below. The Company is actively monitoring the ongoing COVID-19 pandemic. The financial results for the three months ended December 31, 2020 were not significantly impacted by COVID-19. During fiscal year 2020, the Company had temporarily paused enrollment in its two ARO-AAT studies, SEQUOIA and the ARO-AAT 2002 study, but resumed the process of screening and enrolling patients. During the pause in enrollment, patients already enrolled in these studies continued to be dosed per protocol and continued to come in for their follow up visits. Additional delays have occurred in the Company’s earlier stage programs, but the Company does not expect a material impact to any program’s anticipated timelines. Additionally, the Company’s operations at its research and development facilities in Madison, Wisconsin and San Diego, California, and its corporate headquarters in Pasadena, California have continued to operate with limited impact, other than for enhanced safety measures, including work from home policies. However, the Company cannot predict the impact the progression of COVID-19 will have on future financial results due to a variety of factors including the ability of the Company’s clinical sites to continue to enroll subjects, the ability of the Company’s suppliers to continue to operate, the continued good health and safety of the Company’s employees, and ultimately the length of the COVID-19 pandemic. Liquidity The Consolidated Financial Statements have been prepared in conformity with the accounting principles generally accepted in the United States of America (“GAAP”), which contemplate the continuation of the Company as a going concern. Historically, the Company’s primary source of financing has been through the sale of its securities. Research and development activities have required significant capital investment since the Company’s inception. The Company expects its operations to continue to require cash investment to pursue its research and development goals, including clinical trials and related drug manufacturing. At December 31, 2020, the Company had $139.9 million in cash and cash equivalents (including $2.4 million in restricted cash), $79.4 million in short-term investments, $86.0 million in marketable securities and $110.9 million in long-term investments to fund operations. During the three months ended December 31, 2020, the Company’s cash and investments balance decreased by $36.8 million, which was primarily the result of funding its research and development operations. Summary of Significant Accounting Policies There have been no changes to the significant accounting policies disclosed in the Company’s most recent Annual Report on Form 10-K. Recent Accounting Pronouncements In November 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-18 Collaborative Arrangements (Topic 808). This update provides clarification on the interaction between Revenue Recognition (Topic 606) and Collaborative Arrangements (Topic 808) including the alignment of unit of account guidance between the two topics. ASU 2018-18 became effective for the Company on October 1, 2020 and did not have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-15 Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The new standard requires that certain implementation costs for cloud computing arrangements are capitalized and amortized over the term of the associated hosted cloud computing arrangement service. Capitalized implementation costs are classified in prepaid expenses and other assets. The amortization of the capitalized asset is presented in the same line on the statement of operations and comprehensive loss as the fees for the associated hosted cloud computing arrangement service and not included with depreciation or amortization expense related to property and equipment or intangible assets. Cash flows related to capitalized implementation costs are presented in cash flows used in operating activities. ASU 2018-15 became effective for the Company on October 1, 2020 and did not have a material impact on its Consolidated Financial Statements. |
Collaboration and License Agree
Collaboration and License Agreements | 3 Months Ended |
Dec. 31, 2020 | |
Collaboration And License Agreements [Abstract] | |
Collaboration and License Agreements | NOTE 2. COLLABORATION AND LICENSE AGREEMENTS Amgen Inc. On September 28, 2016, the Company entered into two Collaboration and License Agreements and a Common Stock Purchase Agreement with Amgen. Under one of the collaboration and license agreements (the “Second Collaboration and License Agreement” or “Olpasiran Agreement”), Amgen has received a worldwide, exclusive license to Arrowhead’s novel, RNAi Olpasiran (previously referred to as AMG 890 or ARO-LPA) program. These RNAi molecules are designed to reduce elevated lipoprotein(a), which is a genetically validated, independent risk factor for atherosclerotic cardiovascular disease. Under the other collaboration and license agreement (the “First Collaboration and License Agreement” or the “ARO-AMG1 Agreement”), Amgen received an option to a worldwide, exclusive license for ARO-AMG1, an RNAi therapy for an undisclosed genetically validated cardiovascular target. In both agreements, Amgen is wholly responsible for clinical development and commercialization. Under the terms of the agreements taken together, the Company has received $35.0 million in upfront payments, $21.5 million in the form of an equity investment by Amgen in the Company’s Common Stock, and $30.0 million in milestone payments, and may receive up to an additional $400.0 million in remaining development, regulatory and sales milestone payments. The Company is further eligible to receive up to low double-digit royalties for sales of products under the Olpasiran Agreement. In July 2019, Amgen informed the Company that it would not be exercising its option for an exclusive license for ARO-AMG1, and as such, there will be no further milestone or royalty payments under the ARO-AMG1 Agreement. The Company substantially completed its performance obligations under the Olpasiran Agreement and the ARO-AMG1 Agreement. Future milestones and royalties achieved will be recognized in their entirety when earned. In July 2020, Amgen initiated a Phase 2 clinical study, which resulted in a $20.0 million milestone payment to the Company. During the three months ended December 31, 2020 and 2019, the Company recognized $0 and $0, respectively. As of December 31, 2020, there were $0 in contract assets recorded as accounts receivable and $0 contract liabilities recorded as current deferred revenue on the Company’s Consolidated Balance Sheets. Janssen Pharmaceuticals, Inc. On October 3, 2018, the Company entered into the Janssen License Agreement and the Janssen Collaboration Agreement with Janssen, part of the Janssen Pharmaceutical Companies of Johnson & Johnson. The Company also entered into a Stock Purchase Agreement (“JJDC Stock Purchase Agreement”) with JJDC. Under the Janssen License Agreement, Janssen has received a worldwide, exclusive license to the Company’s JNJ-3989 (ARO-HBV) program, the Company’s third-generation subcutaneously administered RNAi therapeutic candidate being developed as a potential therapy for patients with chronic hepatitis B virus infection. Beyond the Company’s Phase 1/2 study of JNJ-3989 (ARO-HBV), Janssen is also wholly responsible for clinical development and commercialization of JNJ-3989. Under the Janssen Collaboration Agreement, Janssen will be able to select three new targets against which Arrowhead will develop clinical candidates. These candidates are subject to certain restrictions and do not include candidates that already were in the Company’s pipeline. The Company will perform discovery, optimization and preclinical research and development, entirely funded by Janssen, which on its own or in combination with Janssen development work, is sufficient to allow the filing of a U.S. Investigational New Drug application or equivalent, at which time Janssen will have the option to take an exclusive license. If the option is exercised, Janssen will be wholly responsible for clinical development and commercialization of each optioned candidate. Under the terms of the agreements taken together, the Company has received $175.0 million as an upfront payment, $75.0 million in the form of an equity investment by JJDC in Arrowhead Common Stock under the JJDC The Company has evaluated these agreements in accordance with the new revenue recognition standard that became effective for the Company on October 1, 2018. The adoption of the new revenue standard did not have a material impact on the balances reported when evaluated under the superseded revenue standard. At the inception of these agreements, the Company has identified one distinct performance obligation. Regarding the Janssen License Agreement, the Company determined that the key deliverables included the license and certain R&D services including the Company’s responsibility to complete the Phase 1/2 study of JNJ-3989 (ARO-HBV) and the Company’s responsibility to ensure certain manufacturing of JNJ-3989 (ARO-HBV) drug product is completed and delivered to Janssen (the “Janssen R&D Services”). Due to the specialized and unique nature of these Janssen R&D Services, and their direct relationship with the license, the Company determined that these deliverables represent one distinct bundle and thus, one performance obligation. The Company also determined that Janssen’s option to require the Company to develop up to three new targets is not a material right, and thus, not a performance obligation at the onset of the agreement. The consideration for this option is accounted for separately. The Company determined the transaction price totaled approximately $252.6 million which includes the upfront payment, the premium paid by JJDC for its equity investment in the Company, the two $25.0 million milestone payments earned and estimated payments for reimbursable Janssen R&D services to be performed. The Company has allocated the total $252.6 million initial transaction price to its one distinct performance obligation for the JNJ-3989 (ARO-HBV) license and the associated Janssen R&D Services. This revenue will be recognized using a proportional performance method (based on actual costs incurred versus total estimated costs incurred) beginning in October 2018 and ending as the Company’s efforts in overseeing the Phase 1/2 clinical trial are completed. During the three months ended December 31, 2020 and 2019, the Company recognized approximately $12.7 million and $28.8 million of Revenue associated with this performance obligation, respectively. As of December 31, 2020, there were $0 in contract assets recorded as accounts receivable, and $6.7 million of contract liabilities recorded as current deferred revenue on the Company’s Consolidated Balance Sheets. The $6.7 million of current deferred revenue is driven by the upfront payment, the premium paid by JJDC for its equity investment in the Company, and the two $25.0 million milestone payments earned, net of revenue recognized to date. The Company has begun to conduct its discovery, optimization and preclinical research and development of ARO-JNJ1, ARO-JNJ2 and ARO-JNJ3 under the Janssen Collaboration Agreement. All costs and labor hours spent by the Company will be entirely funded by Janssen. During the three months ended December 31, 2020 and 2019, the Company recognized $0.3 million and $0.7 million of Revenue associated with these efforts, respectively. As of December 31, 2020, there were $0.8 million of cont ract assets recorded as accounts t deferred revenue on the Company’s Consolidated Balance Takeda Pharmaceuticals U.S.A., Inc. On October 7, 2020, the Company entered into the Takeda License Agreement with Takeda. Under the Takeda License Agreement, Takeda and the Company will co-develop the Company’s ARO-AAT program, the Company’s second-generation subcutaneously administered RNAi therapeutic candidate being developed as a treatment for liver disease associated with alpha-1 antitrypsin deficiency. Within the United States, ARO-AAT, if approved, will be co-commercialized under a 50/50 profit sharing structure. Outside the United States, Takeda will lead the global commercialization strategy and receive an exclusive license to commercialize ARO-AAT with the Company eligible to receive tiered royalties of 20% to 25% on net sales. In January 2021, the Company received $300.0 million as an upfront payment and is eligible to receive potential development, regulatory and commercial milestones of up to $740.0 million. The Company has evaluated the Takeda License Agreement in accordance with the new revenue recognition requirements that became effective for the Company on October 1, 2018. The adoption of the new revenue standard will not have a material impact on the balances reported when evaluated under the superseded revenue standard. At the inception of the Takeda License Agreement, the Company has identified one distinct performance obligation. The Company determined that the key deliverables included the license and certain R&D services including the Company’s responsibilities to complete the initial portion of the SEQUOIA study, to complete the ongoing Phase 2 AROAAT2002 study and to ensure certain manufacturing of ARO-AAT drug product is completed and delivered to Takeda (the “Takeda R&D Services”). Due to the specialized and unique nature of these Takeda R&D services, and their direct relationship with the license, the Company determined that these deliverables represent one distinct bundle and thus, one performance obligation. Beyond the Takeda R&D Services, Takeda will be responsible for managing future clinical development and commercialization. The Company will co-fund certain of the development and commercialization costs that Takeda manages, and these co-funding amounts will be offset against amounts owed to Arrowhead, either from milestones or royalties earned, or profits earned under the 50/50 profit sharing structure for U.S. commercialization. The Company determined the initial transaction price totaled approximately $300.0 million, which includes the upfront payment. The Company will exclude any future estimated milestones, royalties, or profit-sharing payments from this transaction price to date. The Company will allocate the total $300.0 million initial transaction price to its one distinct performance obligation for the ARO-AAT license and the associated Takeda R&D Services. Revenue will be recognized using a proportional performance method (based on actual costs incurred versus total estimated costs incurred for the Takeda R&D Services). Revenue for the three months ended December 31, 2020 and 2019 were $8.2 million and $0, respectively. As of December 31, 2020, there were $8.2 million in contract assets recorded as accounts receivable. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 3. PROPERTY AND EQUIPMENT The following table summarizes the Company’s major classes of property and equipment: December 31, 2020 September 30, 2020 (In thousands) Computers, office equipment and furniture $ 662 $ 662 Research equipment 23,763 20,654 Software 356 631 Leasehold improvements 26,676 25,238 Total gross fixed assets 51,457 47,185 Less: Accumulated depreciation and amortization (17,727 ) (16,304 ) Property and equipment, net $ 33,730 $ 30,881 Depreciation and amortization expense for property and equipment for the three months ended December 31, 2020 and 2019 was $1.4 million and $0.8 million, respectively. |
Investments
Investments | 3 Months Ended |
Dec. 31, 2020 | |
Held To Maturity Securities Classified [Abstract] | |
Investments | NOTE 4. INVESTMENTS Investments at December 31, 2020 primarily consisted of corporate bonds that have maturities of less than 36 months and marketable equity securities. The Company’s corporate bonds consist of both short-term and long-term bonds and are classified as “held-to-maturity” on the Company’s Consolidated Balance Sheets. The Company’s marketable equity securities consist of mutual funds that invest in U.S. government bonds, U.S. government agency bonds, corporate bonds and other asset backed debt securities. Dividends from these funds are automatically reinvested. The Company may also invest excess cash balances in certificates of deposits, money market accounts, government-sponsored enterprise securities, corporate bonds and/or commercial paper. The Company accounts for its held to maturity investments in accordance with FASB ASC 320, Investments – Debt and Equity Securities and its marketable equity securities in accordance with ASC 321, Investments – Equity Securities. The following tables summarize the Company’s short-term and long-term investments and marketable securities as of December 31, 2020 and September 30, 2020 by measurement category. Held to Maturity As of December 31, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial notes (due within one year) $ 79,394 $ 1,203 $ - $ 80,597 Commercial notes (due within one through three years) $ 110,855 $ 3,634 $ (23 ) $ 114,466 Total $ 190,249 $ 4,837 $ (23 ) $ 195,063 As of September 30, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial notes (due within one year) $ 86,890 $ 1,590 $ - $ 88,480 Commercial notes (due within one through three years) $ 137,487 $ 4,573 $ (79 ) $ 141,981 Total $ 224,377 $ 6,163 $ (79 ) $ 230,461 Fair Value As of December 31, 2020 (In thousands) Cost Realized Gains/(Losses) Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable securities $ 85,095 $ 477 $ 440 $ - $ 86,012 Total $ 85,095 $ 477 $ 440 $ - $ 86,012 As of September 30, 2020 (In thousands) Cost Realized Gains/(Losses) Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable securities $ 85,000 $ 95 $ - $ (75 ) $ 85,020 Total $ 85,000 $ 95 $ - $ (75 ) $ 85,020 Realized gains for marketable securities recorded at fair value consist of dividends received and re-invested into the associated fund. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 5. INTANGIBLE ASSETS Intangible assets subject to amortization include patents and a license agreement capitalized as part of the Novartis RNAi asset acquisition in March 2015. The license agreement associated with the Novartis RNAi asset acquisition is being amortized over the estimated life remaining at the time of acquisition, which was 21 years, and the accumulated amortization of the asset is $0.9 million. The patents associated with the Novartis RNAi asset acquisition are being amortized over the estimated life remaining at the time of acquisition, which was 14 years, and the accumulated amortization of the assets is $9.1 million. Amortization expense for the three months ended December 31, 2020 and 2019 was $0.4 million and $0.4 million, respectively. Amortization expense is expected to be $1.3 million for the remainder of 2021, $1.7 million in 2022, $1.7 million in 2023, $1.7 million in 2024, $1.7 million in 2025 and $6.8 million thereafter. The following table provides details on the Company’s intangible asset balances: Intangible assets subject to amortization (in thousands) Balance at September 30, 2020 $ 15,363 Impairment - Amortization (425 ) Balance at December 31, 2020 $ 14,938 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 6. STOCKHOLDERS’ EQUITY At December 31, 2020, the Company had a total of 150,000,000 shares of capital stock authorized for issuance, consisting of 145,000,000 shares of Common Stock, par value $0.001 per share, and 5,000,000 shares of Preferred Stock, par value $0.001 per share. At December 31, 2020, 103,194,240 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 7. COMMITMENTS AND CONTINGENCIES Litigation From time to time, the Company may be subject to various claims and legal proceedings in the ordinary course of business. If the potential loss from any claim, asserted or unasserted, or legal proceeding is considered probable and the amount is reasonably estimable, the Company will accrue a liability for the estimated loss. There were no contingent liabilities recorded as of the three months ended December 31, 2020. Purchase Commitments In the normal course of business, the Company enters into various purchase commitments for the manufacture of drug components, for toxicology studies and for clinical studies. As of December 31, 2020, these future commitments were estimated at approximately $100.2 million, of which approximately $85.0 million is expected to be incurred in remaining fiscal year 2021. Technology License Commitments The Company has licensed from third parties the rights to use certain technologies for its research and development activities, as well as in any products the Company may develop using these licensed technologies. These agreements and other similar agreements often require milestone and royalty payments. Milestone payments, for example, may be required as the research and development process progresses through various stages of development, such as when clinical candidates enter or progress through clinical trials, upon a new drug application and upon certain sales level milestones. These milestone payments could amount to the mid to upper double-digit millions of dollars. During the three months ended December 31, 2020 and 2019, the Company did not reach any milestones. In certain agreements, the Company may be required to make mid to high single-digit percentage royalty payments based on a percentage of the sales of the relevant products. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | NOTE 8. LEASES Leases In April 2019, the Company entered into a lease for its corporate headquarters in Pasadena, California. The 91 month office building lease between the Company and 177 Colorado Owner, LLC is for approximately 24,000 square feet of office space located at 177 E. Colorado Blvd, Pasadena, California. The increased capacity of this new office space compared to the Company’s prior corporate headquarters will accommodate increased personnel as the Company’s pipeline of drug candidates expands and moves closer to market. Lease payments began on September 30, 2019 and are estimated to total approximately $8.7 million over the term. compared to the Company’s current corporate headquarters will accommodate increased personnel as the Company’s pipeline of drug candidates expands and moves closer to ma In January 2016, the Company entered into a lease for its research facility in Madison, Wisconsin. The lease was for approximately 60,000 square feet of office and laboratory space and had an expiration date of September 30, 2026. The lease was amended in January 2019 and May 2020 to expand the rentable square feet by an additional 40,000 total square feet and extended the lease expiration date to September 30, 2031. Lease payments are estimated to total approximately $26.2 million for the term. The lease contains two options to renew for two terms of five years. The exercise of these options were not determined to be reasonably certain and thus was not included in lease liabilities on the Company’s Consolidated Balance Sheet at December 31, 2020. In November 2020 and December 2020, two amendments were signed to expand the rentable square space by an additional 10,743 square feet and these amendments added a total of approximately $1.2 million of lease payments for the remainder of the term. In March 2020, the Company entered into a sublease agreement (the “Sublease”) with Halozyme, Inc. for additional research and development facility space in San Diego, California. The Sublease provides additional space needed to accommodate the recent growth of the Company’s personnel and discovery efforts. The sublease is for approximately 21,000 Operating lease cost during the three months ended December 31, 2020 and 2019 was $0.9 million and $0.5 million, respectively. Variable lease costs for the three months ended December 31, 2020 and 2019 was $0.2 million and $0.2 million, respectively. There was no short-term lease cost during the three months ended December 31, 2020 and 2019. The following table presents maturities of operating lease liabilities on an undiscounted basis as of December 31, 2020: (in thousands) 2021 (remainder of fiscal year) $ 2,379 2022 3,853 2023 3,406 2024 3,269 2025 3,358 2026 and thereafter 15,331 Total $ 31,596 Less imputed interest $ (10,728 ) Total operating lease liabilities (includes current portion) $ 20,868 Cash paid for the amounts included in the measurement of the operating lease liabilities on the Company’s Consolidated Balance Sheet and included in Other changes in operating assets and liabilities within cash flows from operating activities on the Company’s Consolidated Statement of Cash Flow for the three months ended December 31, 2020 and 2019 was $0.7 million and $0.3 million, respectively. The weighted-average remaining lease term and weighted-average discount rate for all leases as of December 31, 2020 was 9.2 years |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE 9. STOCK-BASED COMPENSATION Arrowhead has two plans that provide for equity-based compensation. Under the 2004 Equity Incentive Plan and the 2013 Incentive Plan, as of December 31, 2020, 509,210 and 5,102,360 shares, respectively, of Arrowhead’s Common Stock are reserved for the grant of stock options, stock appreciation rights, restricted stock awards and performance unit/share awards to employees, consultants and others. No further grants may be made under the 2004 Equity Incentive Plan. As of December 31, 2020, there were options granted and outstanding to purchase 509,210 and 2,320,640 shares of Common Stock under the 2004 Equity Incentive Plan and the 2013 Incentive Plan, respectively, and there were 2,385,200 restricted stock units granted and outstanding under the 2013 Incentive Plan. Also, as of December 31, 2020, there were 1,260,503 shares reserved for options and 762,950 shares reserved for restricted stock units issued as inducement grants to new employees outside of equity compensation plans. The following table summarizes information about stock options: Number of Options Outstanding Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Balance at September 30, 2020 4,539,403 $ 16.67 Granted 144,000 63.64 Cancelled (55,438 ) 24.48 Exercised (537,612 ) 9.49 Balance at December 31, 2020 4,090,353 $ 19.16 6.3 years $ 235,465,861 Exercisable at December 31, 2020 2,556,040 $ 9.56 4.8 years $ 171,695,135 Stock-based compensation expense related to stock options for the three months ended December 31, 2020 and 2019 was $3.1 million and $1.6 million, respectively. For non-qualified stock options, the expense creates a timing difference, resulting in a deferred tax asset, which is fully reserved by a valuation allowance. The grant date fair value of the options granted by the Company for the three months ended December 31, 2020 and 2019 was $6.8 million and $8.6 million, respectively. The intrinsic value of the options exercised during the three months ended December 31, 2020, and 2019 was $32.0 million and $21.6 million, respectively. As o f December 31 , 2020, the pre-tax compensation expense for all outstanding unvested stock options in the amount of $ million will be recognized in the Company’s results of operations over a weighted average period of 3.1 years . The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which do not have vesting restrictions and are fully transferable. The determination of the fair value of each stock option is affected by the Company’s stock price on the date of grant, as well as assumptions regarding a number of highly complex and subjective variables. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. The assumptions used to value stock options are as follows: Three Months Ended December 31, 2020 2019 Dividend yield - - Risk-free interest rate 0.4 – 0.6% 1.4 - 1.8% Volatility 90.0-90.4% 90.5-91.0% Expected life (in years) 6.25 6.25 Weighted average grant date fair value per share of options granted $ 47.34 $ 39.05 The dividend yield is zero as the Company currently does not pay a dividend. The risk-free interest rate is based on that of the U.S. Treasury bond. Volatility is estimated based on volatility average of the Company’s Common Stock price. Restricted Stock Units Restricted stock units (“RSUs”), including time-based and performance-based awards, were granted under the Company’s 2013 Incentive Plan and as inducements grants granted outside of the Plan. During the three months ended December 31, 2020, the Company issued 2,200 RSUs under the 2013 Incentive Plan and 116,000 RSUs as inducement awards. At vesting, each outstanding RSU will be exchanged for one share of the Company’s Common Stock. RSU recipients may elect to net share settle upon vesting, in which case the Company pays the employee’s income taxes due upon vesting and withholds a number of shares of Common Stock of equal value. RSU awards generally vest subject to the satisfaction of service requirements or the satisfaction of both service requirements and achievement of certain performance targets. The following table summarizes the activity of the Company’s RSUs: Number of RSUs Weighted- Average Grant Date Fair Value Unvested at September 30, 2020 3,524,025 $ 44.11 Granted 118,200 62.26 Vested (280,325 ) 22.92 Forfeited (213,750 ) 41.34 Unvested at December 31, 2020 3,148,150 $ 46.87 During the three months ended December 31, 2020 and 2019, the Company recorded $5.0 million and $2.9 million of expense related to RSUs, respectively. Such expense is included in stock-based compensation expense in the Company’s Consolidated Statement of Operations and Comprehensive Income (Loss). For RSUs, the expense creates a timing difference, resulting in a deferred tax asset, which is fully reserved by a valuation allowance. For RSUs, the grant date fair value of the award is based on the Company’s closing stock price at the grant date, with consideration given to the probability of achieving performance conditions for performance-based awards. As of December 31, 2020 , the pre-tax compensation expense for all unvested RSUs in the amount of $ 82.0 million will be recognized in the Company’s results of operations over a weighted average period of 3.0 years . Unvested RSUs that we have deemed not probable of vesting as of December 31, 2020 , have the potential of generating an additional $ million of pre-tax compensation expense if we deem them probable of vesting in a future reporting period. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 10. FAIR VALUE MEASUREMENTS The Company measures its financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., exit price) in an orderly transaction between market participants at the measurement date. Additionally, the Company is required to provide disclosure and categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation. Level 1 provides the most reliable measure of fair value while Level 3 generally requires significant management judgment. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. The fair value hierarchy is defined as follows: Level 1—Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2—Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly. Level 3—Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate of what market participants would use in valuing the asset or liability at the measurement date. The following table summarizes fair value measurements at December 31, 2020 and September 30, 2020 for assets and liabilities measured at fair value on a recurring basis. December 31, 2020: Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ 139,921 $ - $ - $ 139,921 Marketable securities $ 86,012 $ - $ - $ 86,012 Short-term investments (held to maturity) $ - $ 80,597 $ - $ 80,597 Long-term investments (held to maturity) $ - $ 114,466 $ - $ 114,466 Contingent consideration $ - $ - $ - $ - September 30, 2020 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ 143,583 $ - $ - $ 143,583 Marketable securities $ 85,020 $ 85,020 Short-term investments (held to maturity) $ - $ 88,480 $ - $ 88,480 Long-term investments (held to maturity) $ - $ 141,981 $ - $ 141,981 Contingent consideration $ - $ - $ - $ - |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-18 Collaborative Arrangements (Topic 808). This update provides clarification on the interaction between Revenue Recognition (Topic 606) and Collaborative Arrangements (Topic 808) including the alignment of unit of account guidance between the two topics. ASU 2018-18 became effective for the Company on October 1, 2020 and did not have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-15 Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The new standard requires that certain implementation costs for cloud computing arrangements are capitalized and amortized over the term of the associated hosted cloud computing arrangement service. Capitalized implementation costs are classified in prepaid expenses and other assets. The amortization of the capitalized asset is presented in the same line on the statement of operations and comprehensive loss as the fees for the associated hosted cloud computing arrangement service and not included with depreciation or amortization expense related to property and equipment or intangible assets. Cash flows related to capitalized implementation costs are presented in cash flows used in operating activities. ASU 2018-15 became effective for the Company on October 1, 2020 and did not have a material impact on its Consolidated Financial Statements. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | The following table summarizes the Company’s major classes of property and equipment: December 31, 2020 September 30, 2020 (In thousands) Computers, office equipment and furniture $ 662 $ 662 Research equipment 23,763 20,654 Software 356 631 Leasehold improvements 26,676 25,238 Total gross fixed assets 51,457 47,185 Less: Accumulated depreciation and amortization (17,727 ) (16,304 ) Property and equipment, net $ 33,730 $ 30,881 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Held To Maturity Securities Classified [Abstract] | |
Summary of Short-term and Long-term Investments and Marketable Securities | The following tables summarize the Company’s short-term and long-term investments and marketable securities as of December 31, 2020 and September 30, 2020 by measurement category. Held to Maturity As of December 31, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial notes (due within one year) $ 79,394 $ 1,203 $ - $ 80,597 Commercial notes (due within one through three years) $ 110,855 $ 3,634 $ (23 ) $ 114,466 Total $ 190,249 $ 4,837 $ (23 ) $ 195,063 As of September 30, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial notes (due within one year) $ 86,890 $ 1,590 $ - $ 88,480 Commercial notes (due within one through three years) $ 137,487 $ 4,573 $ (79 ) $ 141,981 Total $ 224,377 $ 6,163 $ (79 ) $ 230,461 Fair Value As of December 31, 2020 (In thousands) Cost Realized Gains/(Losses) Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable securities $ 85,095 $ 477 $ 440 $ - $ 86,012 Total $ 85,095 $ 477 $ 440 $ - $ 86,012 As of September 30, 2020 (In thousands) Cost Realized Gains/(Losses) Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable securities $ 85,000 $ 95 $ - $ (75 ) $ 85,020 Total $ 85,000 $ 95 $ - $ (75 ) $ 85,020 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table provides details on the Company’s intangible asset balances: Intangible assets subject to amortization (in thousands) Balance at September 30, 2020 $ 15,363 Impairment - Amortization (425 ) Balance at December 31, 2020 $ 14,938 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Maturities of Operating Lease Liabilities on an Undiscounted Basis | The following table presents maturities of operating lease liabilities on an undiscounted basis as of December 31, 2020: (in thousands) 2021 (remainder of fiscal year) $ 2,379 2022 3,853 2023 3,406 2024 3,269 2025 3,358 2026 and thereafter 15,331 Total $ 31,596 Less imputed interest $ (10,728 ) Total operating lease liabilities (includes current portion) $ 20,868 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summarized Information about Stock Options | The following table summarizes information about stock options: Number of Options Outstanding Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Balance at September 30, 2020 4,539,403 $ 16.67 Granted 144,000 63.64 Cancelled (55,438 ) 24.48 Exercised (537,612 ) 9.49 Balance at December 31, 2020 4,090,353 $ 19.16 6.3 years $ 235,465,861 Exercisable at December 31, 2020 2,556,040 $ 9.56 4.8 years $ 171,695,135 |
Assumptions Used to Value Stock Options | The assumptions used to value stock options are as follows: Three Months Ended December 31, 2020 2019 Dividend yield - - Risk-free interest rate 0.4 – 0.6% 1.4 - 1.8% Volatility 90.0-90.4% 90.5-91.0% Expected life (in years) 6.25 6.25 Weighted average grant date fair value per share of options granted $ 47.34 $ 39.05 |
Summary of Share Activity Related to RSUs | The following table summarizes the activity of the Company’s RSUs: Number of RSUs Weighted- Average Grant Date Fair Value Unvested at September 30, 2020 3,524,025 $ 44.11 Granted 118,200 62.26 Vested (280,325 ) 22.92 Forfeited (213,750 ) 41.34 Unvested at December 31, 2020 3,148,150 $ 46.87 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements for Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes fair value measurements at December 31, 2020 and September 30, 2020 for assets and liabilities measured at fair value on a recurring basis. December 31, 2020: Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ 139,921 $ - $ - $ 139,921 Marketable securities $ 86,012 $ - $ - $ 86,012 Short-term investments (held to maturity) $ - $ 80,597 $ - $ 80,597 Long-term investments (held to maturity) $ - $ 114,466 $ - $ 114,466 Contingent consideration $ - $ - $ - $ - September 30, 2020 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ 143,583 $ - $ - $ 143,583 Marketable securities $ 85,020 $ 85,020 Short-term investments (held to maturity) $ - $ 88,480 $ - $ 88,480 Long-term investments (held to maturity) $ - $ 141,981 $ - $ 141,981 Contingent consideration $ - $ - $ - $ - |
Organization and Significant _3
Organization and Significant Accounting Policies - Additional Information (Detail) | Oct. 07, 2020USD ($) | Oct. 03, 2018USD ($)Target | Sep. 28, 2016USD ($) | Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Jul. 31, 2020USD ($) |
Organization And Significant Accounting Policies [Line Items] | ||||||||
Proceeds from the issuance of common stock | $ 250,477,000 | |||||||
Cash and cash equivalents | $ 139,921,000 | $ 143,583,000 | ||||||
Restricted Cash | 2,400,000 | |||||||
Short term investments | 79,394,000 | 86,890,000 | ||||||
Marketable securities | 86,000,000 | |||||||
Long term investments | 110,855,000 | $ 137,487,000 | ||||||
Net increase (decrease) in cash and investments | $ (36,800,000) | |||||||
ASU No. 2018-18 | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Change in accounting principle, accounting standards update, adopted [true false] | true | |||||||
Change in accounting principle, accounting standards update, adoption date | Oct. 1, 2020 | |||||||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | |||||||
ASU No. 2018-15 | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Change in accounting principle, accounting standards update, adopted [true false] | true | |||||||
Change in accounting principle, accounting standards update, adoption date | Oct. 1, 2020 | |||||||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | |||||||
Takeda License Agreement | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Profit sharing structure ratio | 50.00% | |||||||
Development regulatory and commercial milestones payments | $ 740,000,000 | |||||||
Takeda License Agreement | Subsequent Event | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Cash received as due under agreement | $ 300,000,000 | |||||||
Janssen | JNJ-3989 (ARO-HBV) Agreement | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Milestone payment | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 | |||||
Janssen | Collaboration Agreement | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Number of additional targets for development and sales milestone payments | Target | 3 | |||||||
Janssen and JJDC | Collaboration and License agreements | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Cash received as due under agreement | $ 175,000,000 | |||||||
JJDC | Common Stock Purchase Agreement | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Proceeds from the issuance of common stock | 75,000,000 | |||||||
Amgen Incorporated | Olpasiran Agreement | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Milestone payment | $ 20,000,000 | |||||||
Milestone payments | $ 30,000,000 | |||||||
Amgen Incorporated | License Collaboration and Stock Purchase Agreement | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Cash received as due under agreement | 35,000,000 | |||||||
Proceeds from the issuance of common stock | $ 21,500,000 | |||||||
Maximum | Takeda License Agreement | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Tiered royalties received percentage | 25.00% | |||||||
Maximum | Janssen | License Agreement | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Development regulatory and sales milestones payments | 1,600,000,000 | |||||||
Maximum | Janssen | Collaboration Agreement | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Development regulatory and sales milestones payments | $ 1,900,000,000 | |||||||
Maximum | Amgen Incorporated | Olpasiran Agreement | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Development regulatory and sales milestones payments | $ 400,000,000 | |||||||
Minimum | Takeda License Agreement | ||||||||
Organization And Significant Accounting Policies [Line Items] | ||||||||
Tiered royalties received percentage | 20.00% |
Collaboration and License Agr_2
Collaboration and License Agreements - Amgen, Inc - Additional Information (Detail) | Sep. 28, 2016USD ($)Agreement | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Jul. 31, 2020USD ($) |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Proceeds from the issuance of common stock | $ 250,477,000 | ||||
Revenues | $ 21,303,000 | $ 29,455,000 | |||
Type of Revenue [Extensible List] | arwr:TechnologyLicensesCollaborativeResearchAndDevelopmentArrangementsResearchGrantAndProductSalesMember | arwr:TechnologyLicensesCollaborativeResearchAndDevelopmentArrangementsResearchGrantAndProductSalesMember | |||
Contract liabilities | $ 6,744,000 | $ 19,291,000 | |||
Collaboration and License agreements | Amgen Incorporated | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Agreement date | Sep. 28, 2016 | ||||
Number of agreements | Agreement | 2 | ||||
Cash received as due under collaboration agreement | $ 35,000,000 | ||||
Olpasiran Agreement | Amgen Incorporated | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Milestone payments | 30,000,000 | ||||
Olpasiran Agreement | Amgen Incorporated | Maximum | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Additional remaining development regulatory and sales milestones payments | 400,000,000 | ||||
License Collaboration and Stock Purchase Agreement | Amgen Incorporated | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Proceeds from the issuance of common stock | $ 21,500,000 | ||||
Olpasiran and ARO-AMG1 Agreement | Amgen Incorporated | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Milestone payments | $ 20,000,000 | ||||
Revenues | $ 0 | $ 0 | |||
Type of Revenue [Extensible List] | us-gaap:LicenseAndServiceMember | us-gaap:LicenseAndServiceMember | |||
Contract assets | $ 0 | ||||
Contract liabilities | $ 0 |
Collaboration and License Agr_3
Collaboration and License Agreements - Janssen Pharmaceuticals, Inc - Additional Information (Detail) | Oct. 03, 2018USD ($)TargetObligation | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Proceeds from the issuance of common stock | $ 250,477,000 | |||
Revenues | $ 21,303,000 | 29,455,000 | ||
Deferred revenue | 6,744,000 | $ 19,291,000 | ||
Collaboration and License agreements | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Initial transaction price | $ 252,600,000 | |||
JJDC | Common Stock Purchase Agreement | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Agreement date | Oct. 3, 2018 | |||
Proceeds from the issuance of common stock | $ 75,000,000 | |||
Janssen and JJDC | Collaboration and License agreements | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Cash received as due under collaboration agreement | $ 175,000,000 | |||
Janssen | License Agreement | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Agreement date | Oct. 3, 2018 | |||
Janssen | License Agreement | Maximum | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Development, regulatory and sales milestones payments | $ 1,600,000,000 | |||
Janssen | Research Collaboration and Option Agreement | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Agreement date | Oct. 3, 2018 | |||
Number of additional targets for development, regulatory and sales milestone payments | Target | 3 | |||
Janssen | Collaboration Agreement | Maximum | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Development, regulatory and sales milestones payments | $ 1,900,000,000 | |||
Janssen | JNJ-3989 (ARO-HBV) Agreement | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Milestone payment | $ 25,000,000 | 25,000,000 | 25,000,000 | |
Number of distinct performance obligations | Obligation | 1 | |||
Revenues | 12,700,000 | 28,800,000 | ||
Contract assets | 0 | |||
Deferred revenue | 6,700,000 | |||
Janssen | ARO-JNJ1 | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenues | 300,000 | $ 700,000 | ||
Contract assets | 800,000 | |||
Deferred revenue | $ 0 |
Collaboration and License Agr_4
Collaboration and License Agreements - Takeda Pharmaceuticals U.S.A., Inc - Additional Information (Detail) $ in Thousands | Oct. 07, 2020USD ($)ObligationBundle | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 31, 2021USD ($) |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenues | $ 21,303 | $ 29,455 | ||
Takeda License Agreement | License and Co-Funding Agreement | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Agreement date | Oct. 7, 2020 | |||
Ratio of Profit Sharing Structure for United States Commercialization | 50/50 profit sharing | |||
Number of distinct bundle | Bundle | 1 | |||
Number of distinct performance obligations | Obligation | 1 | |||
Initial transaction price | $ 300,000 | |||
Revenues | 8,200 | $ 0 | ||
Contract assets | $ 8,200 | |||
Takeda License Agreement | License and Co-Funding Agreement | Subsequent Event | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Cash received as due under collaboration agreement | $ 300,000 | |||
Takeda License Agreement | Minimum | License and Co-Funding Agreement | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Percentage of eligible to receive tiered royalties on net sales | 20.00% | |||
Takeda License Agreement | Maximum | License and Co-Funding Agreement | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Percentage of eligible to receive tiered royalties on net sales | 25.00% | |||
Development regulatory and sales milestones payments | $ 740,000 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Property Plant And Equipment [Abstract] | ||
Computers, office equipment and furniture | $ 662 | $ 662 |
Research equipment | 23,763 | 20,654 |
Software | 356 | 631 |
Leasehold improvements | 26,676 | 25,238 |
Total gross fixed assets | 51,457 | 47,185 |
Less: Accumulated depreciation and amortization | (17,727) | (16,304) |
Property and equipment, net | $ 33,730 | $ 30,881 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization expense for property and equipment | $ 1.4 | $ 0.8 |
Investments - Summary of Short-
Investments - Summary of Short-term and Long-term Investments and Marketable Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Schedule Of Held To Maturity Securities And Marketable Securities [Line Items] | ||
Held to Maturity, Amortized Cost | $ 190,249 | $ 224,377 |
Held to Maturity, Gross Unrealized Gains | 4,837 | 6,163 |
Held to Maturity, Gross Unrealized Losses | (23) | (79) |
Held to Maturity, Fair Value | 195,063 | 230,461 |
Marketable Securities, Amortized Cost | 85,095 | 85,000 |
Marketable Securities, Realized Gains/(Losses) | 477 | 95 |
Marketable Securities, Gross Unrealized Gains | 440 | |
Marketable Securities, Gross Unrealized Losses | (75) | |
Marketable Securities, Fair Value | 86,012 | 85,020 |
Commercial Notes Due Within One Year | ||
Schedule Of Held To Maturity Securities And Marketable Securities [Line Items] | ||
Held to Maturity, Amortized Cost | 79,394 | 86,890 |
Held to Maturity, Gross Unrealized Gains | 1,203 | 1,590 |
Held to Maturity, Fair Value | 80,597 | 88,480 |
Commercial Notes Due Within One Through Three Years | ||
Schedule Of Held To Maturity Securities And Marketable Securities [Line Items] | ||
Held to Maturity, Amortized Cost | 110,855 | 137,487 |
Held to Maturity, Gross Unrealized Gains | 3,634 | 4,573 |
Held to Maturity, Gross Unrealized Losses | (23) | (79) |
Held to Maturity, Fair Value | 114,466 | 141,981 |
Marketable Securities | ||
Schedule Of Held To Maturity Securities And Marketable Securities [Line Items] | ||
Marketable Securities, Amortized Cost | 85,095 | 85,000 |
Marketable Securities, Realized Gains/(Losses) | 477 | 95 |
Marketable Securities, Gross Unrealized Gains | 440 | |
Marketable Securities, Gross Unrealized Losses | (75) | |
Marketable Securities, Fair Value | $ 86,012 | $ 85,020 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 425 | $ 400 |
Amortization of license agreements remainder of fiscal year 2021 | 1,300 | |
Amortization of license agreements in 2022 | 1,700 | |
Amortization of license agreements in 2023 | 1,700 | |
Amortization of license agreements in 2024 | 1,700 | |
Amortization of license agreements in 2025 | 1,700 | |
Amortization of license agreements, thereafter | $ 6,800 | |
Novartis | Licensing Agreement | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization period of intangible assets | 21 years | |
Finite-lived intangible assets, accumulated amortization | $ 900 | |
Novartis | Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization period of intangible assets | 14 years | |
Finite-lived intangible assets, accumulated amortization | $ 9,100 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Intangible assets subject to amortization, beginning balance | $ 15,363 | |
Intangible assets subject to amortization, Amortization | (425) | $ (400) |
Intangible assets subject to amortization, ending balance | $ 14,938 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | Dec. 31, 2020 | Sep. 30, 2020 |
Class Of Stock [Line Items] | ||
Capital stock authorized for issuance | 150,000,000 | |
Common stock, shares authorized | 145,000,000 | 145,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | |
Preferred stock, par value | $ 0.001 | |
Common stock, shares outstanding | 103,194,240 | 102,376,000 |
2004 Equity Incentive Plan, 2013 Equity Incentive Plan, and Inducement Grants | ||
Class Of Stock [Line Items] | ||
Common Stock, Share reserve for issuance | 7,635,023 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Commitments [Line Items] | ||
Contingent liabilities | $ 0 | |
Future commitments | 100,200,000 | |
Commitments expected to be incurred in remaining fiscal year 2021 | 85,000,000 | |
Technology License Commitments | ||
Other Commitments [Line Items] | ||
Milestone payments | $ 0 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Detail) | Oct. 23, 2020USD ($)ft² | Mar. 31, 2020USD ($)ft² | Apr. 30, 2019USD ($)ft²Option | Jan. 31, 2016ft² | Dec. 31, 2020USD ($)ft²Option | Dec. 31, 2020USD ($)Option | Dec. 31, 2019USD ($) | May 31, 2020USD ($)ft² |
Lessee Lease Description [Line Items] | ||||||||
Estimated lease payments | $ 31,596,000 | $ 31,596,000 | ||||||
Operating lease cost | 900,000 | $ 500,000 | ||||||
Variable lease cost | 200,000 | 200,000 | ||||||
Short-term lease cost | 0 | 0 | ||||||
Operating lease cash payments | $ 700,000 | $ 300,000 | ||||||
Weighted-average remaining lease term | 9 years 2 months 12 days | 9 years 2 months 12 days | ||||||
Weighted-average discount rate | 8.40% | 8.40% | ||||||
California | Halozyme, Inc. | Sublease Agreement | ||||||||
Lessee Lease Description [Line Items] | ||||||||
Office space leases, in square feet | ft² | 21,000 | |||||||
Lease expiration date | Jan. 14, 2023 | |||||||
Estimated lease payments | $ 2,000,000 | |||||||
Sublease commencement date | Apr. 1, 2020 | |||||||
Corporate Headquarters In Pasadena | California | ||||||||
Lessee Lease Description [Line Items] | ||||||||
Office space leases, in square feet | ft² | 24,000 | |||||||
Lease commencement period | 2021-07 | |||||||
Lease expiration month and year | 2027-04 | |||||||
Estimated lease payments | $ 6,900,000 | |||||||
Expected leasehold improvements, net of tenant improvement allowances | $ 4,000,000 | |||||||
Corporate Headquarters In Pasadena | California | Colorado Owner, LLC | ||||||||
Lessee Lease Description [Line Items] | ||||||||
Lease term | 91 months | |||||||
Office space leases, in square feet | ft² | 24,000 | |||||||
Lease payments, commencement date | Sep. 30, 2019 | |||||||
Estimated lease payments | $ 8,700,000 | |||||||
Lease expiration date | Apr. 30, 2027 | |||||||
Payments for leasehold improvements, net of tenant improvement allowances | $ 3,500,000 | |||||||
Operating lease renewal term | 5 years | |||||||
Number of options to renew | Option | 1 | |||||||
Research Facility in Madison | Wisconsin | ||||||||
Lessee Lease Description [Line Items] | ||||||||
Office space leases, in square feet | ft² | 60,000 | |||||||
Lease expiration date | Sep. 30, 2026 | Sep. 30, 2031 | ||||||
Operating lease renewal term | 5 years | 5 years | ||||||
Number of options to renew | Option | 2 | 2 | ||||||
Estimated lease payments | $ 1,200,000 | $ 1,200,000 | $ 26,200,000 | |||||
Expected leasehold improvements, net of tenant improvement allowances | $ 11,000,000 | |||||||
Additional office space for lease | ft² | 10,743 | 40,000 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating Lease Liabilities on an Undiscounted Basis (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 (remainder of fiscal year) | $ 2,379 |
2022 | 3,853 |
2023 | 3,406 |
2024 | 3,269 |
2025 | 3,358 |
2026 and thereafter | 15,331 |
Total | 31,596 |
Less imputed interest | (10,728) |
Total operating lease liabilities (includes current portion) | $ 20,868 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options outstanding | 4,090,353 | 4,539,403 | |
RSU awards vesting, description | At vesting, each outstanding RSU will be exchanged for one share of the Company’s Common Stock. RSU recipients may elect to net share settle upon vesting, in which case the Company pays the employee’s income taxes due upon vesting and withholds a number of shares of Common Stock of equal value. RSU awards generally vest subject to the satisfaction of service requirements or the satisfaction of both service requirements and achievement of certain performance targets. | ||
Employee Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3.1 | $ 1.6 | |
Grant date fair value of the options granted | 6.8 | 8.6 | |
Intrinsic value of options exercised | 32 | 21.6 | |
Unrecognized pre-tax compensation expense | $ 39 | ||
Weighted average period to recognize pre-tax compensation expense | 3 years 1 month 6 days | ||
Dividend yield | 0.00% | ||
Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 5 | $ 2.9 | |
Weighted average period to recognize pre-tax compensation expense | 3 years | ||
Number of restricted stock units outstanding, granted | 118,200 | ||
Unrecognized pre-tax compensation expense | $ 82 | ||
Additional unrecognized pre-tax compensation expense | $ 38.1 | ||
2004 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares reserve for issuance | 509,210 | ||
2004 Equity Incentive Plan | Employee Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options outstanding | 509,210 | ||
2013 Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares reserve for issuance | 5,102,360 | ||
2013 Incentive Plan | Employee Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options outstanding | 2,320,640 | ||
2013 Incentive Plan | Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of restricted stock units outstanding | 2,385,200 | ||
Number of restricted stock units outstanding, granted | 2,200 | ||
Outside Of Equity Compensation Plans | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares reserve for issuance | 1,260,503 | ||
Outside Of Equity Compensation Plans | Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares reserve for issuance | 762,950 | ||
Number of restricted stock units outstanding, granted | 116,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summarize Information about Stock Options (Detail) | 3 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Options Outstanding, beginning balance | shares | 4,539,403 |
Number of Options Outstanding, Granted | shares | 144,000 |
Number of Options Outstanding, Cancelled | shares | (55,438) |
Number of Options Outstanding, Exercised | shares | (537,612) |
Number of Options Outstanding, ending balance | shares | 4,090,353 |
Number of Options Outstanding, Exercisable | shares | 2,556,040 |
Weighted-Average Exercise Price Per Share, beginning balance | $ / shares | $ 16.67 |
Weighted-Average Exercise Price Per Share, Granted | $ / shares | 63.64 |
Weighted-Average Exercise Price Per Share, Cancelled | $ / shares | 24.48 |
Weighted-Average Exercise Price Per Share, Exercised | $ / shares | 9.49 |
Weighted-Average Exercise Price Per Share, ending balance | $ / shares | 19.16 |
Weighted-Average Exercise Price Per Share, Exercisable | $ / shares | $ 9.56 |
Weighted-Average Remaining Contractual Term | 6 years 3 months 18 days |
Weighted-Average Remaining Contractual Term, Exercisable | 4 years 9 months 18 days |
Aggregate Intrinsic Value | $ | $ 235,465,861 |
Aggregate Intrinsic Value, Exercisable | $ | $ 171,695,135 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Value Stock Options (Detail) - $ / shares | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ||
Risk-free interest rate, minimum | 0.40% | 1.40% |
Risk-free interest rate, maximum | 0.60% | 1.80% |
Volatility, minimum | 90.00% | 90.50% |
Volatility, maximum | 90.40% | 91.00% |
Expected life (in years) | 6 years 3 months | 6 years 3 months |
Weighted average grant date fair value per share of options granted | $ 47.34 | $ 39.05 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of RSUs Activity (Detail) - Restricted Stock Units (RSUs) | 3 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of RSUs, Unvested, beginning of period | shares | 3,524,025 |
Number of RSUs, Granted | shares | 118,200 |
Number of RSUs, Vested | shares | (280,325) |
Number of RSUs, Forfeited | shares | (213,750) |
Number of RSUs, Unvested, End of period | shares | 3,148,150 |
Weighted-Average Grant Date Fair Value, beginning balance | $ / shares | $ 44.11 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 62.26 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 22.92 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 41.34 |
Weighted-Average Grant Date Fair Value, ending balance | $ / shares | $ 46.87 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements for Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments (held to maturity) | $ 195,063 | $ 230,461 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 139,921 | 143,583 |
Marketable securities | 86,012 | 85,020 |
Short-term investments (held to maturity) | 80,597 | 88,480 |
Long-term investments (held to maturity) | 114,466 | 141,981 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 139,921 | 143,583 |
Marketable securities | 86,012 | 85,020 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments (held to maturity) | 80,597 | 88,480 |
Long-term investments (held to maturity) | $ 114,466 | $ 141,981 |