Company: DNLI
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001714899-25-000170
Chunk: 427

Company: Denali Therapeutics Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 427
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20252024$%External research and development expenses - TV programs, including cost sharing$84,052 $65,931 $18,121 27 %External research and development expenses - small molecule programs, including cost sharing11,641 25,717 (14,076)(55)Other research and development expenses42,706 30,386 12,320 41 Personnel related expenses(1)80,524 76,381 4,143 5 Total research and development expenses$218,923 $198,415 $20,508 10 %

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(1)Personnel related expenses include stock-based compensation expense of $30.3 million and $30.7 million for the six months ended June 30, 2025 and 2024, respectively, reflecting a decrease of $0.4 million.

The increase in research and development expenses of approximately $20.5 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, was primarily attributable to the following:

•an increase of $18.1 million in external research and development expenses, primarily attributable to increased spend on multiple preclinical programs. There was also an increase in expenditure in our clinical stage programs, including a $2.5 million increase in spend on our DNL126 programs;

•an increase of $12.3 million in other research and development expenses, including lab consumables, consultants and general facilities costs, driven by the commencement of operations at our large molecule manufacturing facility in Salt Lake City, Utah; and

•an increase of $4.1 million in personnel-related expenses, including salaries and stock-based compensation, primarily driven by higher headcount related to the commencement of operations at our large molecule manufacturing facility in Salt Lake City, Utah. 

These increases were partially offset by a $14.1 million decrease in small molecule external research and development expenses primarily attributable to the following: 

•a decrease of $8.7 million related to the winding down of activities related to DNL343 including the Phase 2/3 HEALEY ALS Platform Trial; 

•a decrease of $3.5 million related to offset R&D funding related to the Collaboration and Development Funding Agreement with an unrelated third party, under which, starting in the second quarter of 2024, funding earned offsets LRRK2 program expenses; and

•the divestiture of our preclinical small molecule programs in