Arrowhead Pharmaceuticals(ARWR) - 2025 Q1 - Quarterly Report

Financial Performance - Net loss attributable to Arrowhead Pharmaceuticals, Inc. was $173.1 million for the three months ended December 31, 2024, compared to$ 132.9 million for the same period in 2023, representing an increase of 30.3%[127] - Total revenue for the three months ended December 31, 2024, was $2.5 million, down from$ 3.6 million in the same period of 2023, a decrease of 30.6%[135] - Cash flow used in operating activities was $146.3 million for the three months ended December 31, 2024, primarily due to ongoing R&D and general administrative expenses[161] - Cash, cash equivalents, and restricted cash decreased to$ 53.9 million as of December 31, 2024, down from $102.7 million as of September 30, 2024[158] - The Company believes its current financial resources are sufficient to fund operations for at least the next twelve months[161] Research and Development - Research and development (R&D) expenses totaled$ 137.0 million for the three months ended December 31, 2024, an increase of 17.6% from $116.5 million in the same period of 2023[142] - Candidate costs within R&D expenses increased by$ 23.9 million, or 45%, for the three months ended December 31, 2024, primarily due to the progression of the pipeline into clinical trials[142] - R&D salaries increased by $4.6 million, or 20%, for the three months ended December 31, 2024, compared to the same period in 2023, primarily due to increased headcount and annual salary increases[144] - The Company presented interim results from a Phase 1/2a clinical study of ARO-CFB, showing up to 90% reduction in circulating CFB protein with greater than 3 months duration[129] - The Company filed a request for regulatory clearance to initiate a Phase 1/2a clinical trial of ARO-ALK7, targeting obesity[129] Expenses - General and administrative expenses, excluding non-cash expenses, increased by$ 6.2 million, or 50%, for the three months ended December 31, 2024, driven by higher salaries and professional services[150] - Professional, outside services, and other expenses surged by $4.9 million, or 94%, for the three months ended December 31, 2024, mainly due to costs associated with commercialization and business development efforts[151] - Facilities-related expenses rose by$ 1.2 million, or 18%, for the three months ended December 31, 2024, mainly due to property taxes for newly completed facilities in Verona, Wisconsin[145] - Stock compensation expense decreased by $1.5 million, or 16%, for the three months ended December 31, 2024, primarily due to the cancellation of awards upon employee departures[146] - Depreciation and amortization expense increased by$ 0.9 million, or 23%, for the three months ended December 31, 2024, attributed to the completion of facility build-outs in Verona, Wisconsin[147] - Other expense increased by $11.6 million for the three months ended December 31, 2024, primarily due to non-cash interest expense related to future royalties and the Credit Facility[155] Collaborations and Milestones - A global collaboration agreement with Sarepta Therapeutics, Inc. resulted in an equity investment of$ 325.0 million and an upfront payment of $500.0 million expected in the second quarter of fiscal 2025[129] - GSK dosed the fifth patient in a Phase 2 trial in December 2024, triggering a$ 2.5 million milestone payment to the Company[129] - The Company submitted a New Drug Application (NDA) to the FDA on November 16, 2024, with a PDUFA action date set for November 18, 2025[129]