Risk Factors Update Summary

• Added detailed risks related to financial services industry failures and liquidity issues. This could impact our business operations significantly.
• The company expects to rely on contract manufacturers for scaling manufacturing processes for apitegromab, with future commercial supply. This change might result in potential delays in scaling production and commercial supply.
• Addition of SRK-439 to future product candidates may impact clinical trials and regulatory approval timelines.
• Disclosed potential losses on securities due to interest rate increases or economic conditions. As of December 31, 2023, fair value of cash equivalents and investments was approximately $279.9 million.
• The company plans to continue growing its organization, including personnel, systems, and relationships, to develop product candidates. This change might result in challenges in managing growth effectively.
• Expansion into cardiometabolic disorders with SRK-439, initiating a Phase 2 trial in obesity.
• Increased disclosure requirements and compliance costs now that the company no longer qualifies as an Emerging Growth Company.
• The company anticipates increasing government regulation related to artificial intelligence, potentially increasing research, development, and compliance costs. This change might result in higher operational costs and regulatory burdens.
• Reliance on third-party manufacturing partners may lead to delays or disruptions in product supplies.
• The company highlights the potential impact of the EU's Artificial Intelligence Act, which imposes obligations on providers and deployers of high-risk AI systems. This change might result in increased compliance requirements and costs.
• The company mentions the potential impact of the UK Adequacy Decision on data transfers, ensuring unrestricted data flow from the EU to the UK. This change might result in streamlined data transfer processes.
• The company emphasizes the importance of implementing adequate safeguards for data transfers, including new standard contractual clauses. This change might result in increased data protection efforts and costs.
• The company discusses the potential risks associated with intellectual property, including patent infringement and loss of patent rights. This change might result in legal challenges and financial implications.