Agenus Reports Impact of Key Immuno-Oncology Data Presented at Leading Medical Conferences and Peer-Reviewed Publications

On February 26, 2025 Agenus Inc. (Nasdaq: AGEN), a leader in immuno-oncology innovation, reported key scientific contributions in 2024-2025 that are shaping the future of cancer immunotherapy (Press release, Agenus, FEB 26, 2025, View Source [SID1234650647]).

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Agenus is advancing a robust clinical pipeline targeting complementary mechanisms to fight cancer, including checkpoint inhibitors, immune activators, tumor microenvironment conditioning agents and cell therapies (via MiNK Therapeutics). Our most advanced antibody candidates, botensilimab (BOT) an Fc-enhanced CTLA-4 blocking antibody, and balstilimab (BAL), a novel, PD-1 inhibitor, are central to our efforts.

Driving Innovation of Cancer Immunotherapy

BOT has demonstrated differentiated mechanisms to enhance T cell priming, activation, and memory to drive a more effective immune response and was intentionally designed to mitigate toxicities associated with first-generation anti-CTLA-4 therapies.
BOT is currently being investigated as a monotherapy and in combination with widely used standard of care anti-PD-1, chemotherapy, and allogeneic cell therapy across multiple indications:
MSS colorectal cancer (CRC), pancreatic cancer (in combination with chemotherapy), and gastroesophageal (in combination with BAL and agent-797).
To date, BOT, either alone or in combination with BAL, has been evaluated in approximately 1,100 patients across more than 60 centers worldwide.
The combination targets complementary pathways and has demonstrated clinical responses across nine tumor types, including those historically considered immuno-oncology (IO) "cold" tumors or resistant to prior IO treatments.
Recent data presented at leading international conferences (ASCO, ESMO (Free ESMO Whitepaper), ASCO (Free ASCO Whitepaper) GI, AACR (Free AACR Whitepaper) IO) and featured in prestigious journals (Nature Medicine, Journal of Clinical Oncology, Cancer Discovery), showcase Agenus’ pivotal role in advancing IO research and expanding the reach of IO therapies to new patient populations.

Agenus’ Commitment to Advancing Immuno-Oncology Therapies

"The breadth and consistency of data we have presented over the past year reinforce the transformative potential of botensilimab and balstilimab in redefining treatment paradigms for patients battling historically treatment-resistance cancers. Decades of immuno-oncology research have set the stage for next-generation breakthroughs, and these latest findings with botensilimab and balstilimab represent a major advancement," said Dr. Steven O’Day, Chief Medical Officer, Agenus.

Dr. O’Day continues, "By leveraging our deep expertise in immune activation, we are unlocking responses in tumors previously resistant to immunotherapy. The results are even more promising as we move from treatment refractory metastatic disease to the neoadjuvant setting where we have the potential to reduce the need for adjuvant chemotherapy, preserve organs, and improve long-term survival. These results highlight an opportunity to reshape treatment paradigms and address the greatest unmet needs in oncology."

Breakthrough Findings Across Multiple Cancers

1. Colorectal Cancer:

Neoadjuvant Botensilimab Plus Balstilimab in Resectable Mismatch Repair Proficient (pMMR) and Deficient (dMMR) Colorectal Cancer (CRC) – NEST Study1 link

Conference: ASCO (Free ASCO Whitepaper) GI 2025
Lead Author: Dr. Erika Hissong, Weill Cornell Medicine
Key Findings: This investigator-initiated Phase 2 trial assessed BOT/BAL as neoadjuvant therapy in localized pMMR/MSS and dMMR/MSI-H CRC patients. The combination achieved high major pathological response (MPR) rates, and after median follow-up of 18 months (NEST-1) and 9 months (NEST-2) no recurrences were observed. Extended time to surgery correlated with improved pathological response. The study underscores the potential of dual checkpoint inhibition in neoadjuvant settings for CRC and the potential for non-surgical approaches for some patients​.

Neoadjuvant Botensilimab Plus Balstilimab in Resectable Mismatch Repair Proficient (pMMR) and Deficient (dMMR) Colorectal Cancer (NEST-1 Trial)2 link

Conference: ESMO (Free ESMO Whitepaper) GI 2024
Lead Author: Dr. Pashtoon Kasi (presented by Dr. Mehraneh Jafari), Weill Cornell Medicine
Key Findings: This investigator-initiated Phase 2 trial assessed BOT/BAL as neoadjuvant therapy in resectable pMMR and dMMR colorectal cancer (CRC). A major pathological response (MPR) rate was observed across both cohorts, with no recurrences reported to date. Notably, extended time to surgery was associated with improved responses. Updated data was presented in 2025.

Preoperative Botensilimab (BOT) with or without Balstilimab (BAL) in Resectable, Locally Advanced pMMR or dMMR Colon Cancer – UNICORN Trial3 link

Conference: ASCO (Free ASCO Whitepaper) GI 2025
Lead Author: Dr. Filippo Ghelardi, Fondazione IRCCS Istituto Nazionale dei Tumori Milan
Key Findings: The Investigator-initiated Phase 2 UNICORN trial, explored short-course neoadjuvant BOT ± BAL in non-metastatic CRC patients. Results showed that the addition of BAL significantly enhanced response rates compared to BOT monotherapy, particularly in pMMR tumors. The pCR rate for the combination was 29% and 93% for pMMR and dMMR status, respectively, supporting the potential for non-operative management strategies in CRC​.

Phase 2 Botensilimab Plus Balstilimab in Refractory Microsatellite Stable (MSS) Metastatic Colorectal Cancer with No Liver Metastases4 link

Conference: ASCO (Free ASCO Whitepaper) GI 2025
Lead Author: Dr. Marwan G. Fakih, City of Hope Comprehensive Cancer Center
Key Findings: A Phase 2 study demonstrated deep and durable responses in MSS mCRC patients, demonstrating reproducible response rates (19%) and disease control rate (DCR) of 55% in this refractory metastatic CRC patient population; the standard of care arm had no responses. Notably, some patients treated with BOT/BAL exhibited no active disease over two years after starting the trial.

Phase 1 Study of Botensilimab Plus Balstilimab in Relapsed/Refractory Microsatellite Stable (MSS) Metastatic Colorectal Cancer5 link

Publication: Nature Medicine (September 2024)
Lead Author: Dr. Andrea J. Bullock, Beth Israel Deaconess Medical Center
Key Findings: This study evaluated BOT/BAL in heavily pretreated MSS mCRC patients, a historically checkpoint inhibitor-resistant tumor type. The ORR was 17%, and DCR reached 61%. The combination demonstrated durable responses with a manageable safety profile. In patients with non-active liver metastases (NLM) (n = 77), the ORR was 22% and the DCR was 73% with a 12-month OS rate of 69%. Conversely, in patients with active LM (n=24), ORR was 0% and the DCR was 25% with a 12-month OS rate of 30%. Learnings from this study helped define the P2 study population in MSS mCRC NLM.

A Phase I Trial of FOLFOX-3B: A Combination of Chemotherapy, VEGF(R) Inhibitors, and Checkpoint Blockade in MSS Metastatic Colorectal Cancer6 link

Conference: ASCO (Free ASCO Whitepaper) GI 2025
Lead Author: Dr. Marwan G. Fakih, City of Hope Comprehensive Cancer Center
Key Findings: This Phase I study evaluated the combination of BOT, BAL, FOLFOX chemotherapy, and bevacizumab in MSS metastatic CRC. Preliminary findings showed activity of the combination independent of liver metastases. The regimen demonstrated a 71% objective response rate (ORR) overall. 12/14 patients were pre-treated (FOLFOX "rechallenge"). The combination was well tolerated with only 1/14 patients having immune mediated diarrhea/colitis. Findings suggest that checkpoint blockade plus chemotherapy may enhance immunogenicity in MSS CRC and extend benefit to patients with liver metastases, warranting further investigation in the first line metastatic setting.

2. Gastroesophageal Cancer:

Biomarker Analysis from Phase 2 Study of agenT-797, Botensilimab Plus Balstilimab in PD-1 Refractory Gastroesophageal Cancer link

Conference: AACR (Free AACR Whitepaper) IO 2025
Lead Author: Dr. Samuel L. Cytryn, Memorial Sloan Kettering Cancer Center
Key Findings: This investigator-initiated Phase 2 trial demonstrated significant immune modulation, including robust tumor T-cell infiltration and increased activation of effector-memory T cells, suggesting the potential for overcoming PD-1 resistance.7

3. Sarcoma:

Botensilimab Plus Balstilimab in Relapsed/Refractory (R/R) Metastatic Sarcomas8 link

Publication: Journal of Clinical Oncology (January 2025)
Lead Author: Dr. Breelyn A. Wilky, University of Colorado Cancer Center
Key Findings: This Phase 1 study demonstrated promising efficacy of BOT in combination with BAL, in heavily pretreated sarcoma patients, including soft tissue sarcoma subtypes considered immunologically "cold". Notably, the overall response rate (ORR) was 19.2%, with a 27.8% ORR among angiosarcoma patients. The disease control rate (DCR) reached 65.4%, with a median progression-free survival (PFS) of 4.4 months and a 12-month overall survival (OS) rate of 69%.

Updated Efficacy and Safety of Botensilimab Plus Balstilimab in Metastatic Sarcoma9 link

Conference: ESMO (Free ESMO Whitepaper) 2024
Lead Author: Dr. Breelyn A. Wilky, University of Colorado Cancer Center
Key Findings: Data from an expanded Phase 1 study reaffirmed the activity of BOT/BAL across refractory metastatic sarcomas, including angiosarcoma and leiomyosarcoma. ORR reached 19.2%, with durable responses beyond 21 months in some patients.

4. Mechanistic Insights

Botensilimab, an Fc-Enhanced Anti–CTLA-4 Antibody, Is Effective against Tumors Poorly Responsive to Conventional Immunotherapy10 link

Publication: Cancer Discovery (December 2024)
Lead Author: Dr. Dhan Chand, Agenus Inc.
Key Findings: This landmark study highlighted how botensilimab’s unique design and Fc-enhancement overcomes the limitations of conventional checkpoint inhibitors through multiple immune-activating mechanisms. The research demonstrates that botensilimab potentiates T-cell responsiveness, reduces regulatory T cells, and enhances antigen-presenting cell activation across both preclinical models and patient samples. Clinical data showed significant efficacy in multiple treatment-refractory cancers, including those that progressed on prior immunotherapies. The findings establish a new mechanistic paradigm for expanding immunotherapy benefits to patients with traditionally immunotherapy-resistant cancers.

AGEN1721 – a first-in-class Fc-enhanced Bifunctional Antibody Targeting FAP and TGFβ, Remodels the Tumor Microenvironment to Overcome Cancer-associated Fibroblast-mediated Immune Suppression11 link

Conference: SITC (Free SITC Whitepaper) 2024
Lead Author: Dr. Priya Iyer, Agenus Inc.
Key Findings: AGEN1721, a novel dual-targeting agent, demonstrated the ability to modulate the tumor stroma, enhancing T-cell infiltration and antitumor responses in preclinical models. These findings provide a strong rationale for clinical development.

Additional updates in mCRC, NSCLC, melanoma, ovarian and pancreatic cancer are anticipated in the second half of 2025.

For further details on these studies, please visit www.agenusbio.com, www.minktherapeutics.com or access the respective publications and conference presentations.

Plus Therapeutics Advances Lead Drug Rhenium (186Re) Obisbemeda for Patients with Leptomeningeal Metastases

On February 26, 2025 Plus Therapeutics, Inc. (Nasdaq: PSTV) (the "Company" or "Plus Therapeutics"), a clinical-stage pharmaceutical company developing targeted radiotherapeutics with advanced platform technologies for central nervous system (CNS) cancers, reported the completion of the ReSPECT-LM Phase 1 single-dose escalation trial, having determined an RP2D (Press release, Plus Therapeutics, FEB 26, 2025, View Source [SID1234650646]).

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The ReSPECT-LM single-dose escalation trial assessed the safety, tolerability, and potential efficacy of intrathecally administered Rhenium (186Re) Obisbemeda in patients with leptomeningeal metastases (LM). Enrollment in Cohort 6 was recently completed (75.0 mCi). The Cohort 4 dose (44.1 mCi) was determined to be the RP2D; no dose-limiting toxicities were observed at this dose level. One patient at the Cohort 4 dose was observed to have achieved a complete response, as evidenced by the eradication of tumor cells in the cerebrospinal fluid—a key therapeutic endpoint.

"With the RP2D established, we are advancing both a single dose-expansion Phase 2 trial and a multiple-dose Phase 1 trial of 44.1 mCi fractionated into three doses to further assess safety and efficacy," said Marc H. Hedrick, M.D., Plus Therapeutics President and Chief Executive Officer. "We remain on track to complete enrollment in both trials this year and are simultaneously engaging the U.S. Food & Drug Administration to define the optimal pivotal trial pathway."

Additional details on the ReSPECT-LM trial can be found here.

About Leptomeningeal Metastases (LM)

LM is a rare complication of cancer in which the primary cancer spreads to the cerebrospinal fluid (CSF) and leptomeninges surrounding the brain and spinal cord. All malignancies originating from solid tumors, primary brain tumors, or hematological malignancies have this LM complication potential with breast cancer as the most common cancer linked to LM, with 3-5% of breast cancer patients developing LM. Additionally, lung cancer, GI cancers and melanoma can also spread to the CSF and result in LM. LM occurs in approximately 5% of people with cancer and is usually terminal with 1-year and 2-year survival of just 7% and 3%, respectively. The incidence of LM is on the rise, partly because cancer patients are living longer and partly because many standard chemotherapies cannot reach sufficient concentrations in the spinal fluid to kill the tumor cells, yet there are no FDA-approved therapies specifically for LM patients, who often succumb to this complication within weeks to several months, if untreated.

Halozyme to Participate in the TD Cowen 45th Annual Healthcare Conference

On February 26, 2025 Halozyme Therapeutics, Inc. (NASDAQ: HALO) ("Halozyme") reported that Dr. Helen Torley, president and chief executive officer, will present and host investor meetings at the TD Cowen 45th Annual Healthcare Conference (Press release, Halozyme, FEB 26, 2025, View Source [SID1234650645]).

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The presentation is scheduled for Wednesday, March 5 at 8:50am PT / 11:50am ET.

A live audio webcast will be available on the Investor Relations section of the Company’s website. Replays of the audio webcasts will be available for 90 days following the conference.

Alkermes to Participate in Upcoming Investor Conferences

On February 26, 2025 Alkermes plc (Nasdaq: ALKS) reported that management will participate in webcast fireside chats at two upcoming investor conferences (Press release, Alkermes, FEB 26, 2025, View Source [SID1234650644]).

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TD Cowen 45th Annual Health Care Conference
Date/Time: Wednesday, March 5, 2025 at 9:50 a.m. ET (2:50 p.m. GMT)

Leerink Partners Global Healthcare Conference 2025
Date/Time: Wednesday, March 12, 2025 at 11:20 a.m. ET (3:20 p.m. GMT)

The live webcasts may be accessed under the Investors tab on www.alkermes.com and will be archived for 14 days.

United Therapeutics Corporation Reports Fourth Quarter and Full Year 2024 Financial Results

On February 26, 2025 United Therapeutics Corporation (Nasdaq: UTHR), a public benefit corporation, reported its financial results for the quarter and year ended December 31, 2024 (Press release, United Therapeutics, FEB 26, 2025, View Source [SID1234650643]). Full year 2024 revenues rose to a record $2.88 billion, reflecting 24% growth over 2023.

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"I want to congratulate every Unitherian for their relentless dedication, which has allowed us to deliver a third consecutive year of record revenue," said Martine Rothblatt, Ph.D., Chairperson and Chief Executive Officer of United Therapeutics. "On top of that, our three-year cascade of clinical and regulatory events is under way: both TETON studies in idiopathic pulmonary fibrosis are enrolled, facilitating data starting the second half of this year; ralinepag, our potentially best-in-class once-daily oral prostacyclin agonist, will generate data next year; and this month we announced FDA clearance to start the first potentially registration-enabling xenotransplantation study with our UKidney."
Michael Benkowitz, President and Chief Operating Officer of United Therapeutics, added, "Our commercial foundation continues to operate from a place of strength, propelled by robust fourth quarter performance across our product portfolio, which capped a record-setting year. We look forward to continuing this momentum in 2025 as our sales and marketing teams continue their efforts to ensure that prescribers are educated on the benefits of our broad array of treprostinil products, which are widely regarded as a cornerstone for treating pulmonary hypertension."
Fourth Quarter and Full Year 2024 Financial Results
Key financial highlights include (in millions, except per share data):
Three Months Ended
December 31, Year Ended
December 31,
2024 2023 2024 2023

Total revenues $ 735.9 $ 614.7 $ 2,877.4 $ 2,327.5
Net income $ 301.3 $ 217.1 $ 1,195.1 $ 984.8
Net income, per basic share $ 6.74 $ 4.62 $ 26.44 $ 21.04
Net income, per diluted share $ 6.19 $ 4.36 $ 24.64 $ 19.81

Revenues
The table below presents the components of total revenues (dollars in millions):
Three Months Ended
December 31, Dollar Change Percentage Change Year Ended
December 31, Dollar Change Percentage Change
2024 2023 2024 2023
Net product sales:
Tyvaso DPI(1)
$ 273.2 $ 213.7 $ 59.5 28 % $ 1,033.6 $ 731.1 $ 302.5 41 %
Nebulized Tyvaso(1)
142.7 136.9 5.8 4 % 586.8 502.6 84.2 17 %
Total Tyvaso 415.9 350.6 65.3 19 % 1,620.4 1,233.7 386.7 31 %
Remodulin(2)
134.5 115.1 19.4 17 % 538.1 494.8 43.3 9 %
Orenitram
107.8 84.1 23.7 28 % 434.3 359.4 74.9 21 %
Unituxin
67.5 54.2 13.3 25 % 238.7 198.9 39.8 20 %
Adcirca
4.7 6.8 (2.1) (31) % 23.8 28.9 (5.1) (18) %
Other 5.5 3.9 1.6 41 % 22.1 11.8 10.3 87 %
Total revenues $ 735.9 $ 614.7 $ 121.2 20 % $ 2,877.4 $ 2,327.5 $ 549.9 24 %

(1)Net product sales include both the drug product and the respective inhalation device.

(2)Net product sales include sales of infusion devices, including the Remunity Pump.

Fourth Quarter 2024 Compared to Fourth Quarter 2023. Total Tyvaso revenues grew by 19 percent to $415.9 million in the fourth quarter of 2024, compared to $350.6 million in the fourth quarter of 2023. This growth was primarily driven by growth in Tyvaso DPI revenues, which resulted from an increase in quantities sold of $62.7 million and, to a lesser extent, a price increase, partially offset by higher gross-to-net deductions. The increase in Tyvaso DPI quantities sold was due to continued growth in the number of patients following the product’s launch, including growth in utilization by patients with pulmonary hypertension associated with interstitial lung disease (PH-ILD) and, to a lesser extent, increased commercial utilization following implementation of the Part D redesign under the Inflation Reduction Act (IRA). The growth in Remodulin revenues resulted from an increase in U.S. Remodulin revenues and, to a lesser extent, an increase in international Remodulin revenues, driven, in both cases, by an increase in quantities sold. The increase in Orenitram revenues resulted from an increase in quantities sold and, to a lesser extent, a price increase. The increase in Orenitram quantities sold was driven, at least in part, by increased commercial utilization following the implementation of the Part D redesign under the IRA. The increase in Unituxin revenues resulted from an increase in quantities sold and a price increase.

Full Year 2024 Compared to Full Year 2023. Total Tyvaso revenues grew by 31 percent to $1,620.4 million in 2024, compared to $1,233.7 million in 2023. The growth in Tyvaso DPI revenues resulted from an increase in quantities sold of $269.2 million and, to a lesser extent, price increases, partially offset by higher gross-to-net revenue deductions. The increase in Tyvaso DPI quantities sold was primarily due to continued growth in the number of patients following the product’s launch (including by PH-ILD patients) and, to a lesser extent, increased commercial utilization following implementation of the Part D redesign under the IRA. The growth in nebulized Tyvaso revenues resulted primarily from an increase in quantities sold of $51.9 million and, to a lesser extent, a price increase. Growth in nebulized Tyvaso was also driven by continued growth in use by PH-ILD patients. The growth in Remodulin revenues resulted from an increase in U.S. Remodulin revenues, driven by an increase in quantities sold. The growth in Orenitram revenues resulted from an increase in quantities sold and, to a lesser extent, a price increase. The increase in Orenitram quantities sold was driven, at least in part, by increased commercial utilization following the implementation of the Part D redesign under the IRA. The growth in Unituxin revenues resulted from a price increase and an increase in quantities sold.
2

The table below presents the breakdown of total revenues between the United States and rest-of-world (ROW) (in millions):
Three Months Ended December 31,
Year Ended December 31,
2024 2023 2024 2023
U.S.
ROW
Total
U.S. ROW
Total
U.S.
ROW
Total
U.S.
ROW
Total
Net product sales:
Tyvaso DPI(1)
$ 272.8 $ 0.4 $ 273.2 $ 213.7 $ — $ 213.7 $ 1,033.2 $ 0.4 $ 1,033.6 $ 731.1 $ — $ 731.1
Nebulized Tyvaso(1)
136.4 6.3 142.7 123.7 13.2 136.9 545.5 41.3 586.8 477.1 25.5 502.6
Total Tyvaso 409.2 6.7 415.9 337.4 13.2 350.6 1,578.7 41.7 1,620.4 1,208.2 25.5 1,233.7
Remodulin(2)
118.0 16.5 134.5 106.3 8.8 115.1 464.2 73.9 538.1 414.6 80.2 494.8
Orenitram 107.8 — 107.8 84.1 — 84.1 434.3 — 434.3 359.4 — 359.4
Unituxin 61.8 5.7 67.5 48.7 5.5 54.2 219.6 19.1 238.7 181.3 17.6 198.9
Adcirca 4.7 — 4.7 6.8 — 6.8 23.8 — 23.8 28.9 — 28.9
Other 4.2 1.3 5.5 2.6 1.3 3.9 19.1 3.0 22.1 9.8 2.0 11.8
Total revenues $ 705.7 $ 30.2 $ 735.9 $ 585.9 $ 28.8 $ 614.7 $ 2,739.7 $ 137.7 $ 2,877.4 $ 2,202.2 $ 125.3 $ 2,327.5

(1) Net product sales include both the drug product and the respective inhalation device.
(2) Net product sales include sales of infusion devices, including the Remunity Pump.
Expenses
Cost of sales. The table below summarizes cost of sales by major category (dollars in millions):
Three Months Ended
December 31, Dollar Change Percentage Change Year Ended
December 31, Dollar Change Percentage Change
2024 2023 2024 2023
Category:
Cost of sales $ 74.8 $ 70.1 $ 4.7 7 % $ 304.3 $ 255.1 $ 49.2 19 %
Share-based compensation expense(1)
1.1 0.9 0.2 22 % 5.4 2.4 3.0 125 %
Total cost of sales $ 75.9 $ 71.0 $ 4.9 7 % $ 309.7 $ 257.5 $ 52.2 20 %

(1)See Share-based compensation below.
Cost of sales, excluding share-based compensation. The increase in cost of sales for the year ended December 31, 2024, as compared to the same period in 2023, was primarily due to an increase in Tyvaso DPI royalty expense and product costs driven by growth in Tyvaso DPI revenues.
3

Research and development expense. The table below summarizes the nature of research and development expense by major expense category (dollars in millions):
Three Months Ended
December 31, Dollar Change Percentage Change Year Ended
December 31, Dollar Change Percentage Change
2024 2023 2024 2023
Category:
External research and development(1)
$ 63.7 $ 50.4 $ 13.3 26 % $ 217.5 $ 192.0 $ 25.5 13 %
Internal research and development(2)
50.3 43.2 7.1 16 % 183.6 146.6 37.0 25 %
Share-based compensation expense(3)
6.7 5.7 1.0 18 % 29.1 15.6 13.5 87 %
Other(4)
13.1 52.1 (39.0) (75) % 50.8 53.8 (3.0) (6) %
Total research and development expense $ 133.8 $ 151.4 $ (17.6) (12) % $ 481.0 $ 408.0 $ 73.0 18 %

(1)External research and development primarily includes fees paid to third parties (such as clinical trial sites, contract research organizations, and contract laboratories) for preclinical and clinical studies and payments to third-party contract manufacturers before FDA approval of the relevant product.

(2)Internal research and development primarily includes salary-related expenses for research and development functions, internal costs to manufacture product candidates before FDA approval, and internal facilities-related expenses, including depreciation, related to research and development activities.
(3)See Share-based compensation below.

(4)Other primarily includes upfront fees and milestone payments to third parties under license agreements related to development-stage products, adjustments to the fair value of our contingent consideration obligations, and costs to acquire certain in-process research and development (IPR&D) assets. During the year ended December 31, 2024, we recorded $40.2 million and $8.0 million in expense related to upfront non-refundable licensing payments for drug delivery device technologies and ex vivo lung perfusion technology, respectively. During the quarter and year ended December 31, 2023, we recorded $46.0 million in IPR&D expense in connection with the acquisition of IVIVA Medical, Inc. (IVIVA).

Research and development, excluding share-based compensation. The decrease in research and development expense for the quarter ended December 31, 2024, as compared to the same period in 2023, was primarily due to IPR&D expense we recorded in connection with the acquisition of IVIVA during the quarter ended December 31, 2023; partially offset by increased expenditures related to manufactured organ and organ alternative projects and upfront non-refundable licensing payments related to ex vivo lung perfusion technology.

The increase in research and development expense for the year ended December 31, 2024, as compared to the same period in 2023, was due to: (1) increased expenditures related to manufactured organ and organ alternative projects; (2) non-refundable licensing payments for drug delivery device technologies and ex vivo lung perfusion technology; and (3) increased expenditures related to the TETON studies of nebulized Tyvaso in patients with idiopathic pulmonary fibrosis and progressive pulmonary fibrosis. These increases were partially offset by the impact of an IPR&D expense recorded during the year ended December 31, 2023 in connection with the acquisition of IVIVA, which expense did not recur in 2024.
4

Selling, general, and administrative expense. The table below summarizes selling, general, and administrative expense by major category (dollars in millions):
Three Months Ended
December 31, Dollar Change Percentage Change Year Ended
December 31, Dollar Change Percentage Change
2024 2023 2024 2023
Category:
General and administrative(1)
$ 116.3 $ 98.1 $ 18.2 19 % $ 432.8 $ 374.2 $ 58.6 16 %
Litigation accrual
6.0 — 6.0
NM(3)
71.1 — 71.1
NM(3)
Sales and marketing 27.0 24.1 2.9 12 % 96.3 81.8 14.5 18 %
Share-based compensation expense(2)
19.2 10.0 9.2 92 % 109.5 21.1 88.4 419 %
Total selling, general, and administrative expense $ 168.5 $ 132.2 $ 36.3 27 % $ 709.7 $ 477.1 $ 232.6 49 %

(1)Excluding litigation accrual. See Litigation accrual section below.
(2)See Share-based compensation below.
(3)Calculation is not meaningful.
General and administrative, excluding litigation accrual and share-based compensation. The increase in general and administrative expense for the quarter and year ended December 31, 2024, as compared to the same periods in 2023, was primarily due to increases in: (1) personnel expense due to growth in headcount; (2) legal expenses related to litigation matters; and (3) consulting expenses.

Litigation accrual. As of December 31, 2024, we accrued a liability of $71.1 million related to ongoing litigation with Sandoz Inc., reflecting the final judgment and post-judgment interest accrued through the end of 2024. We currently do not expect that the amount of any loss in excess of this accrual would be material to our financial results; however, the amount ultimately payable, if any, could be higher or lower than this amount depending on the amount of post judgment interest and the outcome of appeals, as discussed in Note 14—Litigation, to our consolidated financial statements included within our Annual Report on Form 10-K for the year ended December 31, 2024. The litigation accrual is included within selling, general, and administrative in our consolidated statements of operations.

Sales and marketing, excluding share-based compensation. The increase in sales and marketing expense for the year ended December 31, 2024, as compared to the same period in 2023, was primarily due to increases in: (1) personnel expense due to growth in headcount; (2) marketing expenses; and (3) consulting expenses.
5

Share-based compensation. The table below summarizes share-based compensation expense by major category (dollars in millions):
Three Months Ended
December 31, Dollar Change Percentage Change Year Ended
December 31, Dollar Change Percentage Change
2024 2023 2024 2023
Category:
Stock options $ 8.0 $ 2.9 $ 5.1 176 % $ 29.8 $ 15.4 $ 14.4 94 %
Restricted stock units 17.8 14.1 3.7 26 % 79.7 52.4 27.3 52 %
Share tracking awards plan (STAP)
0.6 (0.9) 1.5 167 % 32.3 (30.7) 63.0 205 %
Employee stock purchase plan 0.6 0.5 0.1 20 % 2.2 2.0 0.2 10 %
Total share-based compensation expense $ 27.0 $ 16.6 $ 10.4 63 % $ 144.0 $ 39.1 $ 104.9 268 %

The increase in share-based compensation expense for the quarter ended December 31, 2024, as compared to the same period in 2023, was primarily due to: (1) an increase in stock option expense due to a greater number of awards granted in 2024, as compared to the same period in 2023; (2) an increase in restricted stock unit expense due to a greater number of awards remaining outstanding in 2024, as compared to the same period in 2023; and (3) an increase in STAP expense driven by a two percent decrease in our stock price during the quarter ended December 31, 2024, as compared to a three percent decrease in our stock price for the same period in 2023. The increase in share-based compensation expense for the year ended December 31, 2024, as compared to the same period in 2023, was primarily due to: (1) an increase in STAP expense driven by a 60 percent increase in our stock price during 2024, as compared to a 21 percent decrease in our stock price during 2023; (2) an increase in restricted stock unit expense due to a greater number of awards granted and remaining outstanding in 2024, as compared to the same period in 2023; and (3) an increase in stock option expense due to a greater number of awards granted in 2024, as compared to the same period in 2023.

Other (expense) income, net. The change in other (expense) income, net for the year ended December 31, 2024, as compared to the same period in 2023, was primarily due to net unrealized gains on equity securities.
Income tax expense. Income tax expense was $343.9 million for the year ended December 31, 2024, compared to $289.5 million for the same period in 2023. For the years ended December 31, 2024 and 2023, our effective income tax rates (ETR) were approximately 22 percent and 23 percent, respectively. Our ETR for the year ended December 31, 2024 decreased, compared to our ETR for the year ended December 31, 2023, primarily due to a decrease in nondeductible acquisition costs and an increase in excess tax benefits from share-based compensation, partially offset by an increase in nondeductible compensation.

Share repurchase. In March 2024, we entered into an accelerated share repurchase agreement (the ASR agreement) with Citibank, N.A. (Citi). Under the ASR agreement, we made an aggregate upfront payment of $1.0 billion to Citi and received an aggregate initial delivery of 3,275,199 shares of our common stock on March 27, 2024, which represented approximately 80 percent of the total shares that would be repurchased under the ASR agreement, measured based on the closing price of our common stock on March 25, 2024.

The share repurchase under the ASR agreement was divided into two tranches, resulting in upfront payments of $300 million and $700 million, respectively. The final settlement of the $300 million tranche occurred in June 2024, and we received an additional 181,772 shares of our common stock upon settlement. The final settlement of the $700 million tranche occurred in September 2024, and we received an additional 90,403 shares of our common stock upon settlement. In total, we repurchased 3,547,374 shares of our common stock under the ASR agreement that we currently hold as treasury stock in our consolidated balance sheets.

Webcast
We will host a webcast to discuss our fourth quarter and full year 2024 financial results on Wednesday, February 26, 2025, at 9:00 a.m. Eastern Time. The webcast can be accessed live via our website at View Source A replay of the webcast will also be available at the same location on our website.