What drove the surge in operating profit in Q3 2024?

The surge in operating profit in Q3 2024 for Portage Biotech is primarily driven by a strategic shift in focus and significant cost reductions rather than an increase in revenue. 1. **Strategic Shift and Cost Reductions**: Portage Biotech has been exploring strategic alternatives, including potential partnerships, a sale of the company, or restructuring. This strategic shift indicates a proactive approach to address financial challenges, which may involve divesting non-core assets or focusing on high-value projects. Such strategic initiatives often lead to a reduction in operating losses by eliminating unprofitable lines of business or optimizing resource allocation. 2. **Decrease in Clinical Trial Costs**: The company has reduced clinical trial costs, which decreased by $0.3 million. This reduction is a direct result of winding down certain clinical trials, which is a strategic decision to prioritize projects with higher potential returns. By discontinuing trials with lower expected outcomes, Portage Biotech is able to allocate resources more efficiently and decrease expenses associated with trial-related activities. 3. **General and Administrative Expenses Reduction**: Portage Biotech has also decreased general and administrative expenses, which were $5.0 million in Q3 2023 and decreased to $2.8 million in Q3 2024. This reduction of approximately $2.2 million indicates a tighter control on overheads and non-research related expenses, contributing to the improved operating profit. In conclusion, the surge in operating profit in Q3 2024 is primarily driven by strategic shifts, cost reductions, and a decrease in clinical trial costs, rather than an increase in revenue. These factors collectively contribute to a more favorable operating income position for the company during that quarter.