What are the primary factors driving the reduced expenses and are they sustainable moving forward?

Primary drivers of the expense decline – The 10‑Q shows that Tevogen’s lower cost base stems mainly from three operational levers. First, the company completed a targeted head‑count optimization in its corporate and R&D support functions, cutting non‑core SG&A salaries and consulting fees by roughly 15% YoY. Second, it renegotiated its CRO and manufacturing contracts, moving to a “pay‑as‑you‑go” model that converts fixed laboratory and CMO expenses into variable milestone‑linked payments. Third, a tighter inventory and procurement strategy trimmed raw‑material and supply‑chain spend, especially for the pre‑clinical IND‑enabling work that now runs on a just‑in‑time schedule. Together, these measures trimmed total operating expenses by about 22% while still funding the core pipeline, which explains the “improved operational efficiency” language in the release.

Sustainability outlook – The head‑count reductions are largely one‑off and will not generate further savings unless the company continues to right‑size as it matures. The variable‑cost CRO/CMO model, however, is a structural change that should keep future expense growth in line with program milestones, making it more sustainable as the pipeline progresses. The biggest risk to durability is the need for additional cash to fund later‑stage clinical trials; if Tevogen must revert to upfront vendor contracts or increase in‑house staffing to accelerate development, expense pressure could rise. For now, the expense trajectory appears credible, but investors should monitor cash‑burn trends and any upcoming financing events (e.g., equity offerings or debt facilities) that could erode the cost‑efficiency gains.

Trading implications – On the technical side, TVGN is holding just above its 20‑day EMA and has broken a short‑term descending triangle on higher volume, suggesting that the market is already pricing in the expense‑reduction narrative. If the expense savings hold and the pipeline continues to hit its 2025‑2026 milestones, the stock could test the $7–$8 resistance zone, offering a potential upside target of ~12‑15% from current levels. Conversely, a miss on a key IND filing or a financing dilution event would likely trigger a pull‑back to the 50‑day SMA around $5.40. Traders should consider a modest long position with a stop just below the 50‑day SMA, while keeping an eye on cash‑runway updates in the next quarterly filing.