Investment in Subsidiaries	3 Months Ended
Dec. 31, 2012
Investment in Subsidiaries	NOTE 4. *INVESTMENT IN SUBSIDIARIES* In addition to 100% ownership interest in Arrowhead Madison, Inc. and Alvos Therapeutics, Inc., Arrowhead also maintains majority ownership in Calando Pharmaceuticals, Ablaris Therapeutics, Inc., and minority investments in Nanotope, Inc. and Leonardo Biosystems, Inc. Calando Pharmaceuticals, Inc. Calando is a clinical stage RNAi therapeutics company. On April 17, 2008, Calando merged with and into Insert, with Insert as the surviving company. In January 2011, Arrowhead invested $9.1 million, through a cash investment of $1.0 million and the conversion of $8.1 million intercompany debt, acquiring newly issued Calando Series B and Series C preferred stock. As of December 31, 2012, Calando owed to Arrowhead $3.5 million under a series of 8% simple interest notes and advances. It is expected that these loans will either be repaid or converted to equity in the future. The balance of the notes and advances is eliminated in consolidation. As of December 31, 2012, 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 the first quarter of fiscal 2011, based on the license of certain anti-obesity technology developed at the MD Anderson Cancer Center at the University of Texas. During the year ended September 30, 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, 2012, Arrowhead owned 64% of the outstanding shares of Ablaris and 64% on a fully diluted basis. Nanotope, Inc. Nanotope has closed its R&D facility in Skokie, Illinois; any further research and development would take place at the laboratories of Northwestern University under the direction of Nanotope’s founder, Dr. Samuel Stupp. Arrowhead’s investment in Nanotope has been fully reserved, and Arrowhead maintains a full reserve against its receivable from Nanotope. Any further investments are expected to be minimal. Leonardo Biosystems, Inc. Leonardo is developing a drug-delivery platform technology based on novel methods of designing porous silicon microparticles that selectively accumulate in tumor vasculature. Arrowhead accounts for its investment in Leonardo using the cost method of accounting. As of December 31, 2012, Leonardo owed to Arrowhead $575,000, included in other receivables. The Company has provided a full reserve against the receivable from Leonardo. As of December 31, 2012, Arrowhead’s ownership interest in Leonardo was 3%.

Investment in Subsidiaries

3 Months Ended

Dec. 31, 2012

NOTE 4. INVESTMENT IN SUBSIDIARIES

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

Calando Pharmaceuticals, Inc.

Calando is a clinical stage RNAi therapeutics company. On April 17, 2008, Calando merged with and into Insert, with Insert as the surviving company.

In January 2011, Arrowhead invested $9.1 million, through a cash investment of $1.0 million and the conversion of $8.1 million intercompany debt, acquiring newly issued Calando Series B and Series C preferred stock.

As of December 31, 2012, Calando owed to Arrowhead $3.5 million under a series of 8% simple interest notes and advances. It is expected that these loans will either be repaid or converted to equity in the future. The balance of the notes and advances is eliminated in consolidation.

As of December 31, 2012, 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 the first quarter of fiscal 2011, based on the license of certain anti-obesity technology developed at the MD Anderson Cancer Center at the University of Texas. During the year ended September 30, 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, 2012, Arrowhead owned 64% of the outstanding shares of Ablaris and 64% on a fully diluted basis.

Nanotope, Inc.

Nanotope has closed its R&D facility in Skokie, Illinois; any further research and development would take place at the laboratories of Northwestern University under the direction of Nanotope’s founder, Dr. Samuel Stupp. Arrowhead’s investment in Nanotope has been fully reserved, and Arrowhead maintains a full reserve against its receivable from Nanotope. Any further investments are expected to be minimal. Leonardo Biosystems, Inc.

Leonardo is developing a drug-delivery platform technology based on novel methods of designing porous silicon microparticles that selectively accumulate in tumor vasculature. Arrowhead accounts for its investment in Leonardo using the cost method of accounting. As of December 31, 2012, Leonardo owed to Arrowhead $575,000, included in other receivables. The Company has provided a full reserve against the receivable from Leonardo. As of December 31, 2012, Arrowhead’s ownership interest in Leonardo was 3%.

- 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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