Why did ENGN's operating expenses surge in Q1 2025?

The operating expenses of enGene Holdings Inc. (ENGN) significantly increased in Q1 2025, primarily due to the following reasons:

1. **Increase in Research and Development (R&D) Expenses**: The most substantial increase in operating expenses was attributed to the advancement of clinical and manufacturing activities for their product candidate, detalimogene. The R&D expenses rose to $19,974,000 from $5,638,000 in the same quarter the previous year. This escalation is a direct result of the company's ongoing efforts to develop and refine their product pipeline.
2. **General and Administrative (G&A) Expenses**: Another contributing factor to the rise in operating expenses was the increase in G&A expenses, which climbed to $6,639,000 from $5,135,000. This growth was mainly driven by higher personnel-related expenses and stock-based compensation. These costs are common in the biotech sector as companies expand their teams and incentivize employees through equity grants.
3. **Enrollment Expansion in Clinical Trials**: ENGN expanded its LEGEND study sites into Europe and Asia, with all four cohorts now open for enrollment. This expansion likely led to increased expenses related to trial operations, monitoring, and administrative tasks. The company's proactive approach to clinical trial expansion is a positive sign for the future, but it does come with added costs.
4. **Maintenance Dosing Protocol**: The introduction of a new maintenance dosing protocol for detalimogene allows complete responders to continue treatment for up to three years. This innovation necessitated additional expenses for protocol development, training, and ongoing patient support.

In summary, the surge in ENGN's operating expenses in Q1 2025 is a result of increased investments in R&D, G&A, and clinical trial expansion, as well as the implementation of new treatment protocols. These expenses are critical for the long-term growth and potential of the company's product pipeline.