Investment in Subsidiaries	3 Months Ended
Dec. 31, 2013
Investment in Subsidiaries	NOTE 6. INVESTMENT IN SUBSIDIARIES In addition to 100% ownership interest in Arrowhead Madison Inc., Arrowhead also maintains majority ownership in Calando Pharmaceuticals, Ablaris Therapeutics, Inc., and a minority investment in Leonardo Biosystems, Inc. Calando Pharmaceuticals, Inc. Calando is a developer of polymer delivery systems for siRNA and small molecule based therapeutics. Calando’s current cash resources preclude additional development of its platform technology and therapeutic candidates. Arrowhead has determined that it will not provide substantial further investment to Calando based on Arrowhead evaluation of Calando’s development and business prospects and Calando has been unsuccessful in its efforts to obtain capital from other sources. Calando has ceased operations and terminated its technology license with the California Institute of Technology on which its siRNA therapeutic development efforts were based. In 2009, Calando outlicensed its small molecule program to Cerulean Pharma, Inc., a Boston, MA-based biotech company which has continued the development of the program. Under the license, as the development program progresses, Calando could collect partnership, milestone and royalty programs from Cerulean. Calando has an outstanding promissory note with a balance of principal and interest totaling $1,167,000 as of December 31, 2013. The promissory note became due November 26, 2013; see Note 7 for further information. As of December 31, 2013, Calando owed to Arrowhead $4.5 million under a series of 8% simple interest notes and advances. It is unclear whether these notes will be repaid or converted to equity in the future. The balance of the notes and advances is eliminated in consolidation. In fiscal 2013, the Calando patent estate was returned to Caltech, and the Calando technology is not being pursued. As of December 31, 2013, Arrowhead owned 79% of the outstanding shares of Calando and 76% on a fully diluted basis. Ablaris Therapeutics, Inc. Ablaris was formed and began operations in fiscal 2011, based on the license of certain anti-obesity technology developed at the MD Anderson Cancer Center at the University of Texas. During fiscal 2011, Ablaris raised $2.9 million in cash, of which $1.3 million was invested by Arrowhead and $1.6 million was invested by outside investors, through the issuance of Ablaris Series A Preferred stock. As of December 31, 2013, Arrowhead owned 64% of the outstanding shares of Ablaris and 64% on a fully diluted basis. Leonardo Biosystems, Inc. Leonardo, a privately-held drug-delivery company ceased operations in December 2013. Arrowhead’s investment in Leonardo and its receivable from Leonardo have been fully reserved.

Investment in Subsidiaries

3 Months Ended

Dec. 31, 2013

NOTE 6. INVESTMENT IN SUBSIDIARIES

In addition to 100% ownership interest in Arrowhead Madison Inc., Arrowhead also maintains majority ownership in Calando Pharmaceuticals, Ablaris Therapeutics, Inc., and a minority investment in Leonardo Biosystems, Inc.

Calando Pharmaceuticals, Inc.

Calando is a developer of polymer delivery systems for siRNA and small molecule based therapeutics. Calando’s current cash resources preclude additional development of its platform technology and therapeutic candidates. Arrowhead has determined that it will not provide substantial further investment to Calando based on Arrowhead evaluation of Calando’s development and business prospects and Calando has been unsuccessful in its efforts to obtain capital from other sources. Calando has ceased operations and terminated its technology license with the California Institute of Technology on which its siRNA therapeutic development efforts were based.

In 2009, Calando outlicensed its small molecule program to Cerulean Pharma, Inc., a Boston, MA-based biotech company which has continued the development of the program. Under the license, as the development program progresses, Calando could collect partnership, milestone and royalty programs from Cerulean.

Calando has an outstanding promissory note with a balance of principal and interest totaling $1,167,000 as of December 31, 2013. The promissory note became due November 26, 2013; see Note 7 for further information.

As of December 31, 2013, Calando owed to Arrowhead $4.5 million under a series of 8% simple interest notes and advances. It is unclear whether these notes will be repaid or converted to equity in the future. The balance of the notes and advances is eliminated in consolidation. In fiscal 2013, the Calando patent estate was returned to Caltech, and the Calando technology is not being pursued.

As of December 31, 2013, Arrowhead owned 79% of the outstanding shares of Calando and 76% on a fully diluted basis.

Ablaris Therapeutics, Inc.

Ablaris was formed and began operations in fiscal 2011, based on the license of certain anti-obesity technology developed at the MD Anderson Cancer Center at the University of Texas. During fiscal 2011, Ablaris raised $2.9 million in cash, of which $1.3 million was invested by Arrowhead and $1.6 million was invested by outside investors, through the issuance of Ablaris Series A Preferred stock.

As of December 31, 2013, Arrowhead owned 64% of the outstanding shares of Ablaris and 64% on a fully diluted basis.

Leonardo Biosystems, Inc.

Leonardo, a privately-held drug-delivery company ceased operations in December 2013. Arrowhead’s investment in Leonardo and its receivable from Leonardo have been fully reserved.

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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