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

Mereo BioPharma Group plc (MREO) experienced a significant increase in operating expenses in Q4 2024, primarily due to the following reasons:

1. **Foreign Currency Losses**: The company reported a foreign currency transaction loss of $6.4 million, which contributed to the overall increase in operating expenses. This loss was attributed to unfavorable currency movements.
2. **General and Administrative Expenses**: General and administrative expenses rose to $6.2 million from $5.7 million, mainly because of higher pre-commercial activities for setrusumab in Europe. This indicates that the company is investing more in preparation for potential commercialization of their product.
3. **Research and Development**: Despite a decrease in research and development expenses to $3.2 million from $3.6 million, the absolute amount suggests that the company continued to invest in its drug development programs, albeit at a lower intensity than before.

In summary, MREO's operating expenses surged in Q4 2024 due to foreign currency losses and increased general and administrative expenses, despite some reduction in research and development costs. These factors combined to lead to a higher overall operating expense figure for the quarter.