Company: ARWR
Filing Date: 2025-01-29
Form Type: ARS
Source: 0001628280-25-002866
Chunk: 123

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-01-29
Form: ARS
Chunk 123
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 candidates. The Company operates in a cross-functional manner across projects and 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 following table provides details of research and development expenses: (in thousands) Year Ended September 30, 2024 % of Expense Category Year Ended September 30, 2023 % of Expense Category Increase (Decrease) $ % Candidate costs $ 259,280 51 % $ 162,459 46 % $ 96,821 60 % R&D discovery costs 74,150 15 % 55,586 15 % 18,564 33 % Salaries 96,418 19 % 73,668 21 % 22,750 31 % Facilities related 25,782 5 % 16,267 5 % 9,515 58 % Total research and development expense, excluding non-cash expense $ 455,630 90 % $ 307,980 87 % $ 147,650 48 % Stock compensation 33,586 7 % 34,332 10 % (746) (2) % Depreciation and amortization 16,654 3 % 10,876 3 % 5,778 53 % Total research and development expense $ 505,870 100 % $ 353,188 100 % $ 152,682 43 % Candidate costs increased $96.8 million, or 60%, for the year ended September 30, 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 increased $18.6 million, or 33%, for the year ended September 30, 2024 compared to the same period of 2023. This increase was primarily driven by the growth of the Company’s discovery efforts and continued advancement into novel therapeutic areas and tissue types, along with rising costs associated with central nervous system (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 $22.8 million, or 31%, for the year ended September 30, 2024 compared to the same period of 2023