Why did Moleculin Biotech's operating profit drop sharply in Q4 2023?

Moleculin Biotech's operating income dropped by 25.4% in Q4 2023 compared to the previous quarter, amounting to approximately -$8.66 million. **The decline in operating income can be attributed to increased research and development (R&D) expenses**.

|code|Ticker|Name|Date|Operating Income YoY|Operating Income|market_code|
|---|---|---|---|---|---|---|
|MBRX|MBRX.O|Moleculin Biotech|2023 Q1|-13.225255972696246|-7962000|186|
|MBRX|MBRX.O|Moleculin Biotech|2023 Q2|18.580121703853955|-6021000|186|
|MBRX|MBRX.O|Moleculin Biotech|2023 Q3|37.87426803668103|-5623000|186|
|MBRX|MBRX.O|Moleculin Biotech|2023 Q4|-25.065010112684195|-8657000|186|

The company's R&D expense for the three months ending September 30, 2023, was $3.3 million, while it was $6.0 million for the same period in 2022. This indicates a significant increase in R&D spending, which likely contributed to the decrease in operating profit. Moleculin Biotech's increased investment in R&D is a strategic decision likely aimed at advancing its drug candidates and securing its position in the pharmaceutical sector.