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

The operating expenses of DNTH surged in Q4 2024 primarily due to increased clinical trial costs and manufacturing expenses, which are common in the biotech sector as companies advance their pipeline candidates to later stages of development.

1. **Clinical Trial Costs**: The company's lead candidate, DNTH103, is being evaluated in several clinical trials:
- Phase 2 MaGic trial in gMG, with top-line results expected in 2H'25.
- Phase 3 CAPTIVATE trial in CIDP, with an interim responder analysis planned for 2H'26.
- Phase 2 MoMeNtum trial in MMN, with top-line results anticipated in 2H'26.
- The increase in R&D expenses was primarily driven by higher clinical costs, CMC costs, and other expenses related to advancing these trials.
2. **Manufacturing and CMC Costs**: The development of DNTH103 involves significant manufacturing and CMC costs, which are likely contributing to the increase in operating expenses.
3. **Headcount and Professional Services**: The company also reported an increase in General and Administrative (G&A) expenses, primarily due to increased headcount and higher professional services costs.

In summary, DNTH's operating expenses surged in Q4 2024 due to the company's ongoing and advancing clinical trials, which are natural peaks in the development phase of a biotech company's lifecycle. These expenses are essential for the long-term potential of the company's pipeline and are thus strategically justified despite the short-term impact on financials.