Company: ARWR
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001628280-25-024666
Chunk: 63

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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4% ofExpenseCategory Increase (Decrease)$%Candidate costs$148,087 55 %$94,085 43 %$54,002 57 %R&D discovery costs27,742 10 %39,102 18 %(11,360)(29)%Salaries54,052 20 %47,516 22 %6,536 14 %Facilities related14,487 5 %12,465 6 %2,022 16 %Total research and development expense, excluding non-cash expense$244,368 90 %$193,168 89 %$51,200 27 %Stock compensation15,437 6 %16,494 7 %(1,057)(6)%Depreciation and amortization10,299 4 %7,951 4 %2,348 30 %Total research and development expense$270,104 100 %$217,613 100 %$52,491 24 %

Candidate costs increased $30.1 million, or 73%, for the three months ended March 31, 2025 and $54.0 million, or 57%, for the six months ended March 31, 2025 compared to the same periods of 2024. This 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 $2.8 million, or 16%, for the three months ended March 31, 2025 and $11.4 million, or 29%, for the six months ended March 31, 2025 compared to the same periods 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, and increasing costs related to CNS studies and lab supplies.

Salaries consist of salary, bonuses, payroll taxes, and related benefits for the Company’s R&D personnel. Salaries expense increased $2.0 million, or 8%, for the three months ended March 31, 2025 and $6.5 million, or 14%, for the six months ended March 31, 2025 compared to the same periods of 2024. The increase was primarily