Company: ARWR
Filing Date: 2025-11-25
Form Type: 10-K
Source: 0000879407-25-000029
Chunk: 149

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-11-25
Form: 10-K
Item: Item 7
Chunk 149
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 does not separately allocate facilities-related costs, candidate costs, discovery costs, compensation expenses, depreciation and amortization expenses, and other expenses related to research and development activities. The Company does not separately track research and development expenses by individual research and development projects, or by individual drug candidates.

The following table provides details of research and development expenses for the period indicated: 

(in thousands)Year EndedSeptember 30, 2025% ofExpenseCategory Year EndedSeptember 30, 2024% ofExpenseCategory Increase (Decrease) $% Candidate costs$347,571 57 %$259,280 51 %$88,291 34 %R&D discovery costs66,788 11 %74,150 15 %(7,362)(10)%Salaries109,085 18 %96,418 19 %12,667 13 %Facilities related29,233 5 %25,782 5 %3,451 13 %Total research and development expense, excluding non-cash expense$552,677 91 %$455,630 90 %$97,047 21 %Stock compensation32,582 5 %33,586 7 %(1,004)(3)%Depreciation and amortization21,900 4 %16,654 3 %5,246 31 %Total research and development expense$607,159 100 %$505,870 100 %$101,289 20 %

Candidate costs increased $88.3 million, or 34%, for the year ended September 30, 2025 compared to the same period of 2024. The increase was primarily due to the additional progression of the Company’s pipeline of candidates into and through clinical trials, which resulted in higher manufacturing, outsourced clinical trial, and toxicity study costs.

R&D discovery costs decreased $7.4 million, or (10)%, for the year ended September 30, 2025 compared to the same period of 2024. This decrease was primarily driven by strategic shifts toward clinical development and commercial launch. R&D discovery costs are influenced by the Company’s ongoing discovery efforts, continued advancements into novel therapeutic areas and tissue types.

Salaries consist of salary, bonuses, payroll taxes, and related benefits for the Company’s R&D personnel. Salaries expense increased $12.7 million, or 13%, for the year ended September 30, 202