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

Zevra Therapeutics Inc.'s operating expenses surged in Q4 2024 due to several strategic initiatives and operational changes:

1. **Launch of Myle**: The company successfully launched Myle, the first FDA-approved therapy for Niemann-Pick disease type C, which required significant investment in manufacturing, distribution, and marketing.
2. **Aprova Underperformance**: The launch of Aprova, a treatment for urea cycle disorders, did not meet expectations, with only three prescription enrollment forms received in the third quarter. This underperformance led to challenges in raising patient awareness and overcoming reimbursement hurdles, resulting in additional costs.
3. **Discontinuation of Pro-Drug Discovery**: Zevra Therapeutics decided to discontinue in-house pro-drug discovery activities and close facilities in Iowa and Virginia, indicating a shift in strategy. This strategic shift likely incurred significant expenses related to restructuring and employee severance.
4. **Public Offering and Strategic Planning**: The company completed a public offering, raising approximately $64.5 million, which extended their cash runway into 2027. These financial activities, along with strategic planning for commercial excellence, pipeline and innovation, talent and culture, and corporate foundation, required substantial financial investments.

In conclusion, the surge in operating expenses in Q4 2024 was primarily driven by the launch of Myle, the underperformance of Aprova, the discontinuation of pro-drug discovery, and strategic planning activities, which together required significant financial investments from the company.