Company: ARWR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001628280-25-004634
Chunk: 46

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 and amortization expenses, and other expenses related to research and development activities. 

The following table provides details of research and development expenses: 

(in thousands)Three Months Ended December 31, 2024% ofExpenseCategory Three Months Ended December 31, 2023% ofExpenseCategory Increase (Decrease) $% Candidate costs$76,896 56 %$52,956 46 %$23,940 45 %R&D discovery costs12,936 9 %21,540 18 %(8,604)(40)%Salaries27,145 20 %22,595 19 %4,550 20 %Facilities related7,750 6 %6,542 6 %1,208 18 %Total research and development expense, excluding non-cash expense$124,727 91 %$103,633 89 %$21,094 20 %Stock compensation7,549 6 %9,007 8 %(1,458)(16)%Depreciation and amortization4,726 3 %3,851 3 %875 23 %Total research and development expense$137,002 100 %$116,491 100 %$20,511 18 %

Candidate costs increased $23.9 million, or 45%, for the three months ended December 31, 2024 compared to the same period of 2023. 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 $8.6 million, or 40%, for the three months ended December 31, 2024 compared to the same period of 2023. 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 $4.6 million, or 20%, for the three months ended December 31, 2024 compared to the same period of 2023. The increase was primarily due to an increase in R&D headcount that has occurred as the Company has