Why did Arrowhead's operating profit plummet in Q1 2024?

Arrowhead Pharmaceuticals' operating profit plummeted in Q1 2024 due to a combination of factors: 1. **Revenue Decline**: The company's total revenue decreased significantly, from $62.55 million in the same period last year to $3.55 million in Q1 2024. This substantial drop in revenue contributes directly to the operating profit's decline. 2. **Operating Loss Increase**: Arrowhead experienced an operating loss of $136.55 million in Q1 2024, a substantial increase from the $42.13 million loss reported in Q1 2023. This indicates that the company's operating expenses have not been adequately managed to offset the revenue shortfall. 3. **Strategic Focus**: The company is focusing on late-stage clinical development and commercial infrastructure, particularly in cardiometabolic and pulmonary areas. This strategic focus might be diverting resources away from more profitable activities, contributing to the operating profit's decline. In summary, Arrowhead's operating profit plummeted in Q1 2024 due to a combination of a significant revenue decline and an increase in operating losses.