Docoh
Loading...

ARWR Arrowhead Pharmaceuticals

Document and Entity Information

Document and Entity Information - shares6 Months Ended
Mar. 31, 2021Apr. 30, 2021
Cover [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Period End DateMar. 31,
2021
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ2
Trading SymbolARWR
Entity Registrant NameARROWHEAD PHARMACEUTICALS, INC.
Entity Central Index Key0000879407
Entity Current Reporting StatusYes
Current Fiscal Year End Date--09-30
Entity Filer CategoryLarge Accelerated Filer
Entity Common Stock, Shares Outstanding104,084,876
Entity Shell Companyfalse
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity File Number001-38042
Entity Tax Identification Number46-0408024
Entity Address, Address Line One177 E. Colorado Blvd
Entity Address, Address Line TwoSuite 700
Entity Address, City or TownPasadena
Entity Address, State or ProvinceCA
Entity Address, Postal Zip Code91105
City Area Code626
Local Phone Number304-3400
Document Quarterly Reporttrue
Document Transition Reportfalse
Title of 12(b) SecurityCommon Stock, Par Value $0.001 per share
Security Exchange NameNASDAQ
Entity Incorporation, State or Country CodeDE
Entity Interactive Data CurrentYes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in ThousandsMar. 31, 2021Sep. 30, 2020
CURRENT ASSETS
Cash and cash equivalents $ 372,377 $ 143,583
Accounts receivable955 845
Prepaid expenses6,639 4,250
Other current assets1,845 1,782
Marketable securities125,793 85,020
Short term investments (held to maturity)79,148 86,890
TOTAL CURRENT ASSETS586,757 322,370
Property and equipment, net39,400 30,881
Intangible assets, net14,513 15,363
Long term investments (held to maturity)97,490 137,487
Right-of-use assets18,370 16,138
Other assets265 265
TOTAL ASSETS756,795 522,504
CURRENT LIABILITIES
Accounts payable5,299 6,829
Accrued expenses12,862 5,389
Accrued payroll and benefits2,859 8,061
Lease liabilities1,272 1,095
Deferred revenue144,879 19,291
Other current liabilities17 16
TOTAL CURRENT LIABILITIES167,188 40,681
LONG-TERM LIABILITIES
Lease liabilities, net of current portion22,528 20,044
Deferred revenue, net of current portion121,530
TOTAL LONG-TERM LIABILITIES144,058 20,044
Commitments and contingencies (Note 7)
Arrowhead Pharmaceuticals, Inc. stockholders’ equity:
Common stock, $0.001 par value; 145,000 shares authorized; 104,020 and 102,376 shares issued and outstanding as of March 31, 2021 and September 30, 2020, respectively196 195
Additional paid-in capital996,645 965,410
Accumulated other comprehensive income102 18
Accumulated deficit(551,394)(503,844)
TOTAL STOCKHOLDERS’ EQUITY445,549 461,779
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 756,795 $ 522,504

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / sharesMar. 31, 2021Sep. 30, 2020
Statement Of Financial Position [Abstract]
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized145,000,000 145,000,000
Common stock, shares issued104,020,000 102,376,000
Common stock, shares outstanding104,019,546 102,376,000

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) - USD ($) shares in Thousands, $ in Thousands3 Months Ended6 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Income Statement [Abstract]
REVENUE $ 32,811 $ 23,529 $ 54,113 $ 52,983
Type of Revenue [Extensible List]arwr:TechnologyLicensesCollaborativeResearchAndDevelopmentArrangementsResearchGrantAndProductSalesMemberarwr:TechnologyLicensesCollaborativeResearchAndDevelopmentArrangementsResearchGrantAndProductSalesMemberarwr:TechnologyLicensesCollaborativeResearchAndDevelopmentArrangementsResearchGrantAndProductSalesMemberarwr:TechnologyLicensesCollaborativeResearchAndDevelopmentArrangementsResearchGrantAndProductSalesMember
OPERATING EXPENSES
Research and development $ 44,697 $ 29,443 $ 81,251 $ 52,817
General and administrative expenses16,346 16,326 25,147 27,260
TOTAL OPERATING EXPENSES61,043 45,769 106,398 80,077
OPERATING INCOME (LOSS)(28,232)(22,240)(52,285)(27,094)
OTHER INCOME (EXPENSE)
Interest income, net1,524 2,404 3,692 4,585
Other income (expense)(110)1,043
TOTAL OTHER INCOME (EXPENSE)1,414 2,404 4,735 4,585
INCOME (LOSS) BEFORE INCOME TAXES(26,818)(19,836)(47,550)(22,509)
NET INCOME (LOSS) $ (26,818) $ (19,836) $ (47,550) $ (22,509)
NET INCOME (LOSS) PER SHARE - BASIC $ (0.26) $ (0.20) $ (0.46) $ (0.23)
NET INCOME (LOSS) PER SHARE - DILUTED $ (0.26) $ (0.20) $ (0.46) $ (0.23)
Weighted average shares outstanding - basic103,867 101,653 103,303 99,359
Weighted average shares outstanding - diluted103,867 101,653 103,303 99,359
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation adjustments $ (96) $ (433) $ 84 $ (238)
COMPREHENSIVE INCOME (LOSS) $ (26,914) $ (20,269) $ (47,466) $ (22,747)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in ThousandsTotalCommon StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Accumulated DeficitNon-controlling Interest
Beginning Balance, Amount at Sep. 30, 2019 $ 244,036 $ 187 $ 664,086 $ (391) $ (419,291) $ (555)
Beginning Balance, Shares at Sep. 30, 201995,506,000
Stock-based compensation17,464 17,464
Exercise of stock options, Amount4,332 $ 1 4,331
Exercise of stock options, Shares686,000
Common stock - restricted stock units vesting, Amount $ 1 (1)
Common stock - restricted stock units vesting, Shares956,000
Common stock - issued for cash, Amount250,479 $ 5 250,474
Common stock - issued for cash, Shares4,600,000
Foreign currency translation adjustments(238)(238)
Net income (loss)(22,509)(22,509)
Ending Balance, Amount at Mar. 31, 2020493,564 $ 194 936,354 (629)(441,800)(555)
Ending Balance, Shares at Mar. 31, 2020101,748,000
Beginning Balance, Amount at Dec. 31, 2019499,529 $ 193 922,051 (196)(421,964)(555)
Beginning Balance, Shares at Dec. 31, 2019101,112,000
Stock-based compensation12,972 12,972
Exercise of stock options, Amount1,330 1,330
Exercise of stock options, Shares214,000
Common stock - restricted stock units vesting, Amount $ 1 (1)
Common stock - restricted stock units vesting, Shares422,000
Common stock - issued for cash, Amount2 2
Foreign currency translation adjustments(433)(433)
Net income (loss)(19,836)(19,836)
Ending Balance, Amount at Mar. 31, 2020493,564 $ 194 936,354 (629)(441,800) $ (555)
Ending Balance, Shares at Mar. 31, 2020101,748,000
Beginning Balance, Amount at Sep. 30, 2020461,779 $ 195 965,410 18 (503,844)
Beginning Balance, Shares at Sep. 30, 2020102,376,000
Stock-based compensation23,502 23,502
Exercise of stock options, Amount $ 7,734 7,734
Exercise of stock options, Shares819,668 820,000
Common stock - restricted stock units vesting, Amount $ 1 (1)
Common stock - restricted stock units vesting, Shares824,000
Foreign currency translation adjustments $ 84 84
Net income (loss)(47,550)(47,550)
Ending Balance, Amount at Mar. 31, 2021445,549 $ 196 996,645 102 (551,394)
Ending Balance, Shares at Mar. 31, 2021104,020,000
Beginning Balance, Amount at Dec. 31, 2020454,472 $ 195 978,655 198 (524,576)
Beginning Balance, Shares at Dec. 31, 2020103,194,000
Stock-based compensation15,359 15,359
Exercise of stock options, Amount2,632 2,632
Exercise of stock options, Shares282,000
Common stock - restricted stock units vesting, Amount $ 1 (1)
Common stock - restricted stock units vesting, Shares544,000
Foreign currency translation adjustments(96)(96)
Net income (loss)(26,818)(26,818)
Ending Balance, Amount at Mar. 31, 2021 $ 445,549 $ 196 $ 996,645 $ 102 $ (551,394)
Ending Balance, Shares at Mar. 31, 2021104,020,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands6 Months Ended
Mar. 31, 2021Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (47,550) $ (22,509)
Stock-based compensation23,502 17,464
Depreciation and amortization3,766 2,632
Amortization/(accretion) of note premiums/discounts193 419
Changes in operating assets and liabilities:
Accounts receivable(109)(604)
Prepaid expenses and other current assets(2,213)47
Deferred revenue247,118 (49,630)
Accounts payable(1,530)5,768
Accrued expenses2,271 (5,425)
Other(497)723
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES224,951 (51,115)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment(11,437)(7,929)
Purchases of investments(40,000)(180,523)
Proceeds from sale of investments47,545 19,603
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES(3,892)(168,849)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the exercises of stock options7,735 4,332
Proceeds from the issuance of common stock250,479
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES7,735 254,811
NET INCREASE (DECREASE) IN CASH228,794 34,847
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD143,583 221,804
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 372,377 $ 256,651

Organization and Significant Ac

Organization and Significant Accounting Policies6 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
Organization and Significant Accounting PoliciesNOTE 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-DUX4 for facioscapulohumeral muscular dystrophy, ARO-LUNG2 for chronic obstructive pulmonary disorder (“COPD”), and ARO-COV for the 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, take place. The Company’s principal executive offices are located in Pasadena, California. During the first half 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 Scientific Sessions 2020. The Company filed two Investigational New Drug Applications with the United States Food and Drug Administration to begin a Phase 2b clinical study of ARO-APOC3 in patients with severe hypertriglyceridemia and a Phase 2b clinical study of ARO-ANG3 in patients with mixed dyslipidemia. 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 continued 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. milestone payments. The Company is eligible to receive up to low double-digit royalties for sales of products under the Olpasiran Agreement. 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 and six months ended March 31, 2021 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 and severity 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 sources of financing have been through the sale of its securities and revenue from its collaboration agreements. 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 March 31, 2021, the Company had $372.4 million in cash and cash equivalents (including $2.4 million in restricted cash), $79.1 million in short-term investments, $125.8 million in marketable securities and $97.5 million in long-term investments to fund operations. During the six months ended March 31, 2021, the Company’s cash and investments balance increased by $221.8 million, which was primarily the result of the $300 million upfront payment from the Takeda License Agreement, partially offset by cash used to fund the Company’s research and development operations and general and administrative expenses. 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 Agreements6 Months Ended
Mar. 31, 2021
Collaboration And License Agreements [Abstract]
Collaboration and License AgreementsNOTE 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 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 and six months ended March 31, 2021 and 2020, the Company recognized $0 and $0 of revenue, respectively. As of March 31, 2021, there were $0 in contract assets recorded as accounts receivable and $0 of 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 with JJDC (“JJDC Stock Purchase Agreement”). 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 FASB Topic 606 - Revenue for Contracts from Customers, which became effective for the Company on October 1, 2018. At the inception of these agreements, the Company 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 $252.7 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 $252.7 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 March 31, 2021 and 2020, the Company recognized approximately $7.5 million and $22.2 million of revenue associated with this performance obligation, respectively. During the six months ended March 31, 2021 and 2020, the Company recognized approximately $20.2 million and $50.9 million of revenue associated with this performance obligation, respectively. As of March 31, 2021, there were $0.6 million in contract assets recorded as accounts receivable, and $0 of contract liabilities recorded as current deferred revenue on the Company’s Consolidated Balance Sheets. 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 March 31, 2021 and 2020, the Company recognized $0.1 million and $1.4 million of revenue associated with these efforts, respectively. During the six months ended March 31, 2021 and 2020, the Company recognized $0.3 million and $2.1 million of revenue associated with these efforts, respectively. As of March 31, 2021, there were $0.3 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 FASB Topic 606 - Revenue for Contracts from Customers, which became effective for the Company on October 1, 2018. At the inception of the Takeda License Agreement, the Company 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 March 31, 2021 and 2020 were $25.4 million and $0, respectively. Revenue for the six months ended March 31, 2021 and 2020 were $33.6 million and $0, respectively. As of March 31, 2021, there were $0 in contract assets recorded as accounts receivable, $144.9 million in contract liabilities recorded as deferred revenue and $121.5 million in contract liabilities recorded as deferred revenue, net of the current portion.

Property and Equipment

Property and Equipment6 Months Ended
Mar. 31, 2021
Property Plant And Equipment [Abstract]
Property and EquipmentNOTE 3. PROPERTY AND EQUIPMENT The following table summarizes the Company’s major classes of property and equipment:
March 31, 2021
September 30, 2020
(In thousands)
Computers, office equipment and furniture
$
1,022
$
662
Research equipment
23,894
20,654
Software
599
631
Leasehold improvements
33,107
25,238
Total gross fixed assets
58,622
47,185
Less: Accumulated depreciation and amortization
(19,222
)
(16,304
)
Property and equipment, net
$
39,400
$
30,881
Depreciation and amortization expense for property and equipment for the three months ended March 31, 2021 and 2020 was $1.5 million and $0.9 million, respectively. Depreciation and amortization expense for property and equipment for the six months ended March 31, 2021 and 2020 was $2.9 million and $1.8 million, respectively.

Investments

Investments6 Months Ended
Mar. 31, 2021
Held To Maturity Securities Classified [Abstract]
InvestmentsNOTE 4. INVESTMENTS Investments at March 31, 2021 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 primarily 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 March 31, 2021 and September 30, 2020 by measurement category.
Held to Maturity
As of March 31, 2021
(In thousands)
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Commercial notes (due within one year)
$
79,148
$
887
$
-
$
80,035
Commercial notes (due within one through three years)
$
97,490
$
2,655
$
(66
)
$
100,079
Total
$
176,638
$
3,542
$
(66
)
$
180,114
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 March 31, 2021
(In thousands)
Cost
Realized Gains/(Losses)
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Marketable securities
$
125,000
$
1,079
$
205
$
(491
)
$
125,793
Total
$
125,000
$
1,079
$
205
$
(491
)
$
125,793
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 Assets6 Months Ended
Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible AssetsNOTE 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 $9.4 million. Amortization expense for the three months ended March 31, 2021 and 2020 was $0.4 million and $0.4 million, respectively. Amortization expense for the six months ended March 31, 2021 and 2020 was $0.9 million and $0.9 million, respectively. Amortization expense is expected to be $0.9 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
(850
)
Balance at March 31, 2021
$
14,513

Stockholders' Equity

Stockholders' Equity6 Months Ended
Mar. 31, 2021
Equity [Abstract]
Stockholders' EquityNOTE 6. STOCKHOLDERS’ EQUITY At March 31, 2021, 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 March 31, 2021, 104,019,546

Commitments and Contingencies

Commitments and Contingencies6 Months Ended
Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and ContingenciesNOTE 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 six months ended March 31, 2021. 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 March 31, 2021, these future commitments were estimated at approximately $136.0 million, of which approximately $78.0 million is expected to be incurred during the remainder of 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 and six months ended March 31, 2021, the Company did not reach any milestones. During the three and six months ended March 31, 2020, the Company accrued a $0.9 million milestone payment related to the progression of the ARO-ENaC program. 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

Leases6 Months Ended
Mar. 31, 2021
Leases [Abstract]
LeasesNOTE 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 extend 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 additional 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 March 31, 2021. In November 2020 and December 2020, the Company entered into amendments 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 March 31, 2021 and 2020 was $1.1 million and $0.5 million, respectively. Operating lease cost during the six months ended March 31, 2021 and 2020 was $2.0 million and $0.9 million, respectively. Variable lease costs for the three months ended March 31, 2021 and 2020 was $0.2 million and $0.2 million, respectively. Variable lease costs for the six months ended March 31, 2021 and 2020 was $0.5 million and $0.3 million, respectively. There was no short-term lease cost during the three and six months ended March 31, 2021 and 2020. The following table presents maturities of operating lease liabilities on an undiscounted basis as of March 31, 2021:
(in thousands)
2021 (remainder of fiscal year)
$
1,740
2022
4,522
2023
4,624
2024
4,523
2025
4,649
2026 and thereafter
17,421
Total
$
37,479
Less imputed interest
$
(13,679
)
Total operating lease liabilities (includes current portion)
$
23,800
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 six months ended March 31, 2021 and 2020 was $1.4 million and $0.6 million, respectively. The weighted-average remaining lease term and weighted-average discount rate for all leases as of March 31, 2021 was 8.5 years

Stock-Based Compensation

Stock-Based Compensation6 Months Ended
Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based CompensationNOTE 9. STOCK-BASED COMPENSATION Arrowhead has three plans that provide for equity-based compensation. Under the 2004 Equity Incentive Plan and the 2013 Incentive Plan, as of March 31, 2021, 468,993 and 6,593,291 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 March 31, 2021, there were options granted and outstanding to purchase 468,993 and 2,229,852 shares of Common Stock under the 2004 Equity Incentive Plan and the 2013 Incentive Plan, respectively, and there were 3,177,950 restricted stock units granted and outstanding under the 2013 Incentive Plan. Also, as of March 31, 2021, there were 1,080,741 shares reserved for options and 676,200 shares reserved for restricted stock units issued as inducement grants to new employees outside of equity compensation plans. On March 18, 2021, the Company’s stockholders approved the Arrowhead Pharmaceuticals, Inc. 2021 Incentive Plan (“2021 Incentive Plan”), which authorizes 8,000,000 shares (subject to certain adjustments) to be awarded for grants of stock options, stock appreciation rights, restricted and unrestricted stock and stock units, performance awards, cash awards and other awards convertible into or otherwise based on shares of Arrowhead’s Common Stock. The maximum number of shares authorized under the 2021 Incentive Plan will be (i) reduced by any shares subject to awards made under the 2013 Incentive Plan after January 1, 2021, and (ii) increased by any shares subject to outstanding awards under the 2013 Incentive Plan as of January 1, 2021 that, after January 1, 2021, are canceled, expired, forfeited or otherwise not issued under such awards (other than as a result of being tendered or withheld to pay the exercise price or withholding taxes in connection with any such awards) or settled in cash. As of March 31, 2021, there had been no adjustments to the 8,000,000 authorized shares under the 2021 Incentive Plan, and 0 shares of Arrowhead’s Common Stock had been granted under the 2021 Incentive Plan. 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
168,000
65.41
Cancelled
(108,149
)
28.85
Exercised
(819,668
)
9.44
Balance at March 31, 2021
3,779,586
$
20.06
6.1 years
$
175,292,764
Exercisable at March 31, 2021
2,426,786
$
10.64
4.8 years
$
135,141,412
Stock-based compensation expense related to stock options for the three months ended March 31, 2021 and 2020 was $3.3 million and $2.5 million, respectively. Stock-based compensation expense related to stock options for the six months ended March 31, 2021 and 2020 was $6.4 million and $4.1 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 March 31, 2021 and 2020 was $1.4 million and $18.0 million, respectively. The grant date fair value of the options granted by the Company for the six months ended March 31, 2021 and 2020 was $8.1 million and $26.6 million, respectively. The intrinsic value of the options exercised during the three months ended March 31, 2021 and 2020 was $20.9 million and $8.6 million, respectively. The intrinsic value of the options exercised during the six months ended March 31, 2021 and 2020 was $52.8 million and $30.2 million, respectively. As of March 31, 2021, the pre-tax compensation expense for all outstanding unvested stock options in the amount of $35.7 million will be recognized in the Company’s results of operations over a weighted average period of 2.9 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:
Six Months Ended March 31,
2021
2020
Dividend yield
-
-
Risk-free interest rate
0.4 – 0.6%
0.5-1.8%
Volatility
86.6 – 90.4%
90.5 – 91.8%
Expected life (in years)
6.25
6.25
Weighted average grant date fair value per share of options granted
$
48.62
$
40.70
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 Company’s equity-based compensation plans. During the three months ended March 31, 2021, the Company issued 1,324,750 RSUs under the 2013 Incentive Plan and 0 RSUs as inducement awards. During the six months ended March 31, 2021, the Company issued 1,326,950 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 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
1,442,950
75.54
Vested
(823,575
)
30.11
Forfeited
(289,250
)
39.14
Unvested at March 31, 2021
3,854,150
$
59.24
During the three months ended March 31, 2021 and 2020, the Company recorded $12.1 million and $10.4 million of expense related to RSUs, respectively. During the six months ended March 31, 2021 and 2020, the Company recorded $17.1 million and $13.3 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. The grant date fair value of the RSUs granted by the Company for the three months ended March 31, 2021 and 2020 was $101.6 million and $122.0 million, respectively. The grant date fair value of the RSUs granted by the Company for the six months ended March 31, 2021 and 2020 was $109.0 million and $136.0 million, respectively. As of March 31, 2021, the pre-tax compensation expense for all unvested RSUs in the amount of $131.4 million will be recognized in the Company’s results of operations over a weighted average period of 3.1 years. Unvested RSUs that we have deemed not probable of vesting as of March 31, 2021, have the potential of generating an additional $76.4 million of pre-tax compensation expense if we deem them probable of vesting in a future reporting period.

Fair Value Measurements

Fair Value Measurements6 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value MeasurementsNOTE 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 March 31, 2021 and September 30, 2020 for assets and liabilities measured at fair value on a recurring basis. March 31, 2021
Level 1
Level 2
Level 3
Total
(in thousands)
Cash and cash equivalents
$
372,377
$
-
$
-
$
372,377
Marketable securities
$
125,793
$
-
$
-
$
125,793
Short-term investments (held to maturity)
$
-
$
80,035
$
-
$
80,035
Long-term investments (held to maturity)
$
-
$
100,079
$
-
$
100,079
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)6 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
Recent Accounting PronouncementsRecent 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)6 Months Ended
Mar. 31, 2021
Property Plant And Equipment [Abstract]
Summary of Property and EquipmentThe following table summarizes the Company’s major classes of property and equipment:
March 31, 2021
September 30, 2020
(In thousands)
Computers, office equipment and furniture
$
1,022
$
662
Research equipment
23,894
20,654
Software
599
631
Leasehold improvements
33,107
25,238
Total gross fixed assets
58,622
47,185
Less: Accumulated depreciation and amortization
(19,222
)
(16,304
)
Property and equipment, net
$
39,400
$
30,881

Investments (Tables)

Investments (Tables)6 Months Ended
Mar. 31, 2021
Held To Maturity Securities Classified [Abstract]
Summary of Short-term and Long-term Investments and Marketable SecuritiesThe following tables summarize the Company’s short-term and long-term investments and marketable securities as of March 31, 2021 and September 30, 2020 by measurement category.
Held to Maturity
As of March 31, 2021
(In thousands)
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Commercial notes (due within one year)
$
79,148
$
887
$
-
$
80,035
Commercial notes (due within one through three years)
$
97,490
$
2,655
$
(66
)
$
100,079
Total
$
176,638
$
3,542
$
(66
)
$
180,114
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 March 31, 2021
(In thousands)
Cost
Realized Gains/(Losses)
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Marketable securities
$
125,000
$
1,079
$
205
$
(491
)
$
125,793
Total
$
125,000
$
1,079
$
205
$
(491
)
$
125,793
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)6 Months Ended
Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Intangible AssetsThe 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
(850
)
Balance at March 31, 2021
$
14,513

Leases (Tables)

Leases (Tables)6 Months Ended
Mar. 31, 2021
Leases [Abstract]
Summary of Maturities of Operating Lease Liabilities on an Undiscounted BasisThe following table presents maturities of operating lease liabilities on an undiscounted basis as of March 31, 2021:
(in thousands)
2021 (remainder of fiscal year)
$
1,740
2022
4,522
2023
4,624
2024
4,523
2025
4,649
2026 and thereafter
17,421
Total
$
37,479
Less imputed interest
$
(13,679
)
Total operating lease liabilities (includes current portion)
$
23,800

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)6 Months Ended
Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summarized Information about Stock OptionsThe 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
168,000
65.41
Cancelled
(108,149
)
28.85
Exercised
(819,668
)
9.44
Balance at March 31, 2021
3,779,586
$
20.06
6.1 years
$
175,292,764
Exercisable at March 31, 2021
2,426,786
$
10.64
4.8 years
$
135,141,412
Assumptions Used to Value Stock OptionsThe assumptions used to value stock options are as follows:
Six Months Ended March 31,
2021
2020
Dividend yield
-
-
Risk-free interest rate
0.4 – 0.6%
0.5-1.8%
Volatility
86.6 – 90.4%
90.5 – 91.8%
Expected life (in years)
6.25
6.25
Weighted average grant date fair value per share of options granted
$
48.62
$
40.70
Summary of Share Activity Related to RSUsThe 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
1,442,950
75.54
Vested
(823,575
)
30.11
Forfeited
(289,250
)
39.14
Unvested at March 31, 2021
3,854,150
$
59.24

Fair Value Measurements (Tables

Fair Value Measurements (Tables)6 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements for Assets and Liabilities Measured at Fair Value on Recurring BasisThe following table summarizes fair value measurements at March 31, 2021 and September 30, 2020 for assets and liabilities measured at fair value on a recurring basis. March 31, 2021
Level 1
Level 2
Level 3
Total
(in thousands)
Cash and cash equivalents
$
372,377
$
-
$
-
$
372,377
Marketable securities
$
125,793
$
-
$
-
$
125,793
Short-term investments (held to maturity)
$
-
$
80,035
$
-
$
80,035
Long-term investments (held to maturity)
$
-
$
100,079
$
-
$
100,079
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 ($)Oct. 03, 2018USD ($)TargetSep. 28, 2016USD ($)Jan. 31, 2021USD ($)Mar. 31, 2021USD ($)Mar. 31, 2020USD ($)Sep. 30, 2020USD ($)Jul. 31, 2020USD ($)
Organization And Significant Accounting Policies [Line Items]
Proceeds from the issuance of common stock $ 250,479,000
Cash and cash equivalents $ 372,377,000 $ 143,583,000
Restricted Cash2,400,000
Short-term investments79,148,000 86,890,000
Marketable securities125,800,000
Long-term investments97,490,000 $ 137,487,000
Net increase (decrease) in cash and investments $ 221,800,000
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 dateOct. 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 dateOct. 1,
2020
Change in accounting principle, accounting standards update, immaterial effect [true false]true
Takeda License Agreement
Organization And Significant Accounting Policies [Line Items]
Cash received as due under agreement $ 300,000,000
Profit sharing structure ratio50.00%
Development regulatory and commercial milestones payments $ 740,000,000
Janssen | JNJ-3989 (ARO-HBV) Agreement
Organization And Significant Accounting Policies [Line Items]
Milestone payment $ 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 | Target3
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 stock75,000,000
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 agreement35,000,000
Proceeds from the issuance of common stock $ 21,500,000
Maximum | Takeda License Agreement
Organization And Significant Accounting Policies [Line Items]
Tiered royalties received percentage25.00%
Maximum | Janssen | License Agreement
Organization And Significant Accounting Policies [Line Items]
Development regulatory and sales milestones payments1,600,000,000
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 percentage20.00%

Collaboration and License Agr_2

Collaboration and License Agreements - Amgen, Inc - Additional Information (Detail)Sep. 28, 2016USD ($)AgreementMar. 31, 2021USD ($)Mar. 31, 2020USD ($)Mar. 31, 2021USD ($)Mar. 31, 2020USD ($)Sep. 30, 2020USD ($)Jul. 31, 2020USD ($)
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Proceeds from the issuance of common stock $ 250,479,000
Revenues $ 32,811,000 $ 23,529,000 $ 54,113,000 $ 52,983,000
Type of Revenue [Extensible List]arwr:TechnologyLicensesCollaborativeResearchAndDevelopmentArrangementsResearchGrantAndProductSalesMemberarwr:TechnologyLicensesCollaborativeResearchAndDevelopmentArrangementsResearchGrantAndProductSalesMemberarwr:TechnologyLicensesCollaborativeResearchAndDevelopmentArrangementsResearchGrantAndProductSalesMemberarwr:TechnologyLicensesCollaborativeResearchAndDevelopmentArrangementsResearchGrantAndProductSalesMember
Contract liabilities $ 144,879,000 $ 144,879,000 $ 19,291,000
Collaboration and License agreements | Amgen Incorporated
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Agreement dateSep. 28,
2016
Number of agreements | Agreement2
Cash received as due under collaboration agreement $ 35,000,000
Olpasiran Agreement | Amgen Incorporated
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Milestone payments30,000,000
Olpasiran Agreement | Amgen Incorporated | Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional remaining development regulatory and sales milestones payments400,000,000 400,000,000
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 $ 0 $ 0
Type of Revenue [Extensible List]us-gaap:LicenseAndServiceMemberus-gaap:LicenseAndServiceMemberus-gaap:LicenseAndServiceMemberus-gaap:LicenseAndServiceMember
Contract assets $ 0 $ 0
Contract liabilities $ 0 $ 0

Collaboration and License Agr_3

Collaboration and License Agreements - Janssen Pharmaceuticals, Inc - Additional Information (Detail)Oct. 03, 2018USD ($)TargetObligationMar. 31, 2021USD ($)Mar. 31, 2020USD ($)Mar. 31, 2021USD ($)Mar. 31, 2020USD ($)Sep. 30, 2020USD ($)
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Proceeds from the issuance of common stock $ 250,479,000
Revenues $ 32,811,000 $ 23,529,000 $ 54,113,000 52,983,000
Contract liabilities, current deferred revenue144,879,000 144,879,000 $ 19,291,000
Collaboration and License agreements
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Initial transaction price $ 252,700,000
JJDC | Common Stock Purchase Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Agreement dateOct. 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 dateOct. 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 dateOct. 3,
2018
Number of additional targets for development, regulatory and sales milestone payments | Target3
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 | Obligation1
Revenues7,500,000 22,200,000 20,200,000 50,900,000
Contract assets600,000 600,000
Contract liabilities, current deferred revenue0 0
Janssen | ARO-JNJ1
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Revenues100,000 $ 1,400,000 300,000 $ 2,100,000
Contract assets300,000 300,000
Contract liabilities, current deferred revenue $ 0 $ 0

Collaboration and License Agr_4

Collaboration and License Agreements - Takeda Pharmaceuticals U.S.A., Inc - Additional Information (Detail) $ in ThousandsOct. 07, 2020USD ($)ObligationBundleMar. 31, 2021USD ($)Mar. 31, 2020USD ($)Mar. 31, 2021USD ($)Mar. 31, 2020USD ($)Jan. 31, 2021USD ($)Sep. 30, 2020USD ($)
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Revenues $ 32,811 $ 23,529 $ 54,113 $ 52,983
Contract liabilities, current deferred revenue144,879 144,879 $ 19,291
Deferred revenue, net of current portion121,530 121,530
Takeda License Agreement | License and Co-Funding Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Agreement dateOct. 7,
2020
Ratio of Profit Sharing Structure for United States Commercialization50/50 profit sharing
Cash received as due under collaboration agreement $ 300,000
Number of distinct bundle | Bundle1
Number of distinct performance obligations | Obligation1
Initial transaction price $ 300,000
Revenues25,400 $ 0 33,600 $ 0
Contract assets0 0
Contract liabilities, current deferred revenue144,900 144,900
Deferred revenue, net of current portion $ 121,500 $ 121,500
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 sales20.00%
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 sales25.00%
Development regulatory and sales milestones payments $ 740,000

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in ThousandsMar. 31, 2021Sep. 30, 2020
Property Plant And Equipment [Abstract]
Computers, office equipment and furniture $ 1,022 $ 662
Research equipment23,894 20,654
Software599 631
Leasehold improvements33,107 25,238
Total gross fixed assets58,622 47,185
Less: Accumulated depreciation and amortization(19,222)(16,304)
Property and equipment, net $ 39,400 $ 30,881

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended6 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Property Plant And Equipment [Abstract]
Depreciation and amortization expense for property and equipment $ 1.5 $ 0.9 $ 2.9 $ 1.8

Investments - Summary of Short-

Investments - Summary of Short-term and Long-term Investments and Marketable Securities (Detail) - USD ($) $ in ThousandsMar. 31, 2021Sep. 30, 2020
Schedule Of Held To Maturity Securities And Marketable Securities [Line Items]
Held to Maturity, Amortized Cost $ 176,638 $ 224,377
Held to Maturity, Gross Unrealized Gains3,542 6,163
Held to Maturity, Gross Unrealized Losses(66)(79)
Held to Maturity, Fair Value180,114 230,461
Marketable Securities, Amortized Cost125,000 85,000
Marketable Securities, Realized Gains/(Losses)1,079 95
Marketable Securities, Gross Unrealized Gains205
Marketable Securities, Gross Unrealized Losses(491)(75)
Marketable Securities, Fair Value125,793 85,020
Commercial Notes Due Within One Year
Schedule Of Held To Maturity Securities And Marketable Securities [Line Items]
Held to Maturity, Amortized Cost79,148 86,890
Held to Maturity, Gross Unrealized Gains887 1,590
Held to Maturity, Fair Value80,035 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 Cost97,490 137,487
Held to Maturity, Gross Unrealized Gains2,655 4,573
Held to Maturity, Gross Unrealized Losses(66)(79)
Held to Maturity, Fair Value100,079 141,981
Marketable Securities
Schedule Of Held To Maturity Securities And Marketable Securities [Line Items]
Marketable Securities, Amortized Cost125,000 85,000
Marketable Securities, Realized Gains/(Losses)1,079 95
Marketable Securities, Gross Unrealized Gains205
Marketable Securities, Gross Unrealized Losses(491)(75)
Marketable Securities, Fair Value $ 125,793 $ 85,020

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Finite Lived Intangible Assets [Line Items]
Amortization expense $ 400 $ 400 $ 850 $ 900
Amortization of license agreements remainder of fiscal year 2021900 900
Amortization of license agreements in 20221,700 1,700
Amortization of license agreements in 20231,700 1,700
Amortization of license agreements in 20241,700 1,700
Amortization of license agreements in 20251,700 1,700
Amortization of license agreements, thereafter6,800 $ 6,800
Novartis | Licensing Agreement
Finite Lived Intangible Assets [Line Items]
Amortization period of intangible assets21 years
Finite-lived intangible assets, accumulated amortization900 $ 900
Novartis | Patents
Finite Lived Intangible Assets [Line Items]
Amortization period of intangible assets14 years
Finite-lived intangible assets, accumulated amortization $ 9,400 $ 9,400

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Intangible Assets Net Excluding Goodwill [Abstract]
Intangible assets subject to amortization, beginning balance $ 15,363
Intangible assets subject to amortization, Amortization $ (400) $ (400)(850) $ (900)
Intangible assets subject to amortization, ending balance $ 14,513 $ 14,513

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - $ / sharesMar. 31, 2021Sep. 30, 2020
Class Of Stock [Line Items]
Capital stock authorized for issuance150,000,000
Common stock, shares authorized145,000,000 145,000,000
Common stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized5,000,000
Preferred stock, par value $ 0.001
Common stock, shares outstanding104,019,546 102,376,000
2004 Equity Incentive Plan, 2013 Equity Incentive Plan, 2021 Equity Incentive Plan and Inducement Grants
Class Of Stock [Line Items]
Common Stock, Share reserve for issuance16,819,225

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)3 Months Ended6 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Other Commitments [Line Items]
Contingent liabilities $ 0 $ 0
Future commitments136,000,000 136,000,000
Commitments expected to be incurred during remainder of fiscal year 202178,000,000 78,000,000
Technology License Commitments
Other Commitments [Line Items]
Milestone payments $ 0 $ 900,000 $ 0 $ 900,000

Leases - Additional Information

Leases - Additional Information (Detail)Oct. 23, 2020USD ($)ft²Mar. 31, 2020USD ($)ft²Apr. 30, 2019USD ($)ft²OptionJan. 31, 2016ft²Dec. 31, 2020USD ($)ft²OptionMar. 31, 2021USD ($)Mar. 31, 2020USD ($)ft²Mar. 31, 2021USD ($)Mar. 31, 2020USD ($)ft²May 31, 2020USD ($)ft²
Lessee Lease Description [Line Items]
Estimated lease payments $ 37,479,000 $ 37,479,000
Operating lease cost1,100,000 $ 500,000 2,000,000 $ 900,000
Variable lease cost200,000 200,000 500,000 300,000
Short-term lease cost $ 0 $ 0 0 0
Operating lease cash payments $ 1,400,000 $ 600,000
Weighted-average remaining lease term8 years 6 months8 years 6 months
Weighted-average discount rate8.50%8.50%
California | Halozyme, Inc. | Sublease Agreement
Lessee Lease Description [Line Items]
Office space leases, in square feet | ft²21,000 21,000 21,000
Lease expiration dateJan. 14,
2023
Estimated lease payments $ 2,000,000 $ 2,000,000 $ 2,000,000
Sublease commencement dateApr. 1,
2020
Corporate Headquarters In Pasadena | California
Lessee Lease Description [Line Items]
Office space leases, in square feet | ft²24,000
Lease commencement period2021-06
Lease expiration month and year2027-04
Estimated lease payments $ 6,900,000
Expected leasehold improvements, net of tenant improvement allowances $ 4,200,000
Corporate Headquarters In Pasadena | California | Colorado Owner, LLC
Lessee Lease Description [Line Items]
Lease term91 months
Office space leases, in square feet | ft²24,000
Lease payments, commencement dateSep. 30,
2019
Estimated lease payments $ 8,700,000
Lease expiration dateApr. 30,
2027
Payments for leasehold improvements, net of tenant improvement allowances $ 3,500,000
Operating lease renewal term5 years
Number of options to renew | Option1
Research Facility in Madison | Wisconsin
Lessee Lease Description [Line Items]
Office space leases, in square feet | ft²60,000
Lease expiration dateSep. 30,
2026
Sep. 30,
2031
Operating lease renewal term5 years
Number of options to renew | Option2
Estimated lease payments $ 1,200,000 $ 26,200,000
Expected leasehold improvements, net of tenant improvement allowances $ 11,000,000
Additional office space for lease | ft²10,743 40,000

Leases - Summary of Maturities

Leases - Summary of Maturities of Operating Lease Liabilities on an Undiscounted Basis (Detail) $ in ThousandsMar. 31, 2021USD ($)
Leases [Abstract]
2021 (remainder of fiscal year) $ 1,740
20224,522
20234,624
20244,523
20254,649
2026 and thereafter17,421
Total37,479
Less imputed interest(13,679)
Total operating lease liabilities (includes current portion) $ 23,800

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions3 Months Ended6 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020Mar. 18, 2021Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of options outstanding3,779,586 3,779,586 4,539,403
RSU awards vesting, descriptionAt vesting, each outstanding RSU will be exchanged for one share of the Company’s Common Stock. 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 $ 3.3 $ 2.5 $ 6.4 $ 4.1
Grant date fair value of the options granted1.4 18 8.1 26.6
Intrinsic value of options exercised20.9 8.6 52.8 30.2
Unrecognized pre-tax compensation expense35.7 $ 35.7
Weighted average period to recognize pre-tax compensation expense2 years 10 months 24 days
Dividend yield0.00%
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense12.1 10.4 $ 17.1 13.3
Weighted average period to recognize pre-tax compensation expense3 years 1 month 6 days
Number of restricted stock units outstanding, granted1,442,950
Grant date fair value of other than options granted101.6 $ 122 $ 109 $ 136
Unrecognized pre-tax compensation expense $ 131.4 131.4
Additional unrecognized pre-tax compensation expense $ 76.4
2004 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserve for issuance468,993 468,993
2004 Equity Incentive Plan | Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of options outstanding468,993 468,993
2013 Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserve for issuance6,593,291 6,593,291
2013 Incentive Plan | Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of options outstanding2,229,852 2,229,852
2013 Incentive Plan | Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of restricted stock units outstanding3,177,950 3,177,950
Number of restricted stock units outstanding, granted1,324,750 1,326,950
Outside Of Equity Compensation Plans
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserve for issuance1,080,741 1,080,741
Outside Of Equity Compensation Plans | Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserve for issuance676,200 676,200
Number of restricted stock units outstanding, granted0 116,000
2021 Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized8,000,000 8,000,000 8,000,000
Shares of common stock granted0

Stock-Based Compensation - Summ

Stock-Based Compensation - Summarize Information about Stock Options (Detail) - USD ($)6 Months Ended
Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Options Outstanding, beginning balance4,539,403
Number of Options Outstanding, Granted168,000
Number of Options Outstanding, Cancelled(108,149)
Number of Options Outstanding, Exercised(819,668)
Number of Options Outstanding, ending balance3,779,586
Number of Options Outstanding, Exercisable2,426,786
Weighted-Average Exercise Price Per Share, beginning balance $ 16.67
Weighted-Average Exercise Price Per Share, Granted65.41
Weighted-Average Exercise Price Per Share, Cancelled28.85
Weighted-Average Exercise Price Per Share, Exercised9.44
Weighted-Average Exercise Price Per Share, ending balance20.06
Weighted-Average Exercise Price Per Share, Exercisable $ 10.64
Weighted-Average Remaining Contractual Term6 years 1 month 6 days
Weighted-Average Remaining Contractual Term, Exercisable4 years 9 months 18 days
Aggregate Intrinsic Value $ 175,292,764
Aggregate Intrinsic Value, Exercisable $ 135,141,412

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions Used to Value Stock Options (Detail) - $ / shares6 Months Ended
Mar. 31, 2021Mar. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]
Risk-free interest rate, minimum0.40%0.50%
Risk-free interest rate, maximum0.60%1.80%
Volatility, minimum86.60%90.50%
Volatility, maximum90.40%91.80%
Expected life (in years)6 years 3 months6 years 3 months
Weighted average grant date fair value per share of options granted $ 48.62 $ 40.70

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of RSUs Activity (Detail) - Restricted Stock Units (RSUs)6 Months Ended
Mar. 31, 2021$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of RSUs, Unvested, beginning of period | shares3,524,025
Number of RSUs, Granted | shares1,442,950
Number of RSUs, Vested | shares(823,575)
Number of RSUs, Forfeited | shares(289,250)
Number of RSUs, Unvested, End of period | shares3,854,150
Weighted-Average Grant Date Fair Value, beginning balance | $ / shares $ 44.11
Weighted-Average Grant Date Fair Value, Granted | $ / shares75.54
Weighted-Average Grant Date Fair Value, Vested | $ / shares30.11
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares39.14
Weighted-Average Grant Date Fair Value, ending balance | $ / shares $ 59.24

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Measurements for Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in ThousandsMar. 31, 2021Sep. 30, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Short-term investments (held to maturity) $ 180,114 $ 230,461
Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents372,377 143,583
Marketable securities125,793 85,020
Short-term investments (held to maturity)80,035 88,480
Long-term investments (held to maturity)100,079 141,981
Fair Value, Measurements, Recurring | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents372,377 143,583
Marketable securities125,793 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)80,035 88,480
Long-term investments (held to maturity) $ 100,079 $ 141,981