Why did CMPS's operating expenses surge in Q4 2024?

The operating expenses of COMPASS Pathways plc increased significantly in Q4 2024, primarily due to the following reasons:

1. Clinical Trial Costs: The company's operating expenses were likely inflated by the costs associated with their clinical trials, particularly for the COMP360 psilocybin treatment. Clinical trials are a critical yet expensive phase in the development of any pharmaceutical or biotech drug, involving numerous aspects such as patient recruitment, trial monitoring, data analysis, and regulatory filings.
2. Research and Development (R&D) Activities: COMPASS Pathways is a biotechnology company deeply invested in R&D. The costs associated with advancing its investigational compounds, including the development of new formulations and delivery methods, would have contributed to the overall operating expenses.
3. Workforce and Infrastructure Expansion: The company's operating expenses may have risen due to an increase in workforce and infrastructure costs. This could include salaries, benefits, and overhead expenses related to a larger team size or new office spaces to support the company's growth and operational needs.

In summary, the surge in operating expenses for COMPASS Pathways in Q4 2024 can be attributed to a combination of clinical trial costs, R&D activities, and workforce and infrastructure expansion.