Risk Factors Update Summary

• Increased exposure to litigation risk due to potential acquisitions, including Kinnate, may lead to higher liability costs.
• Potential milestone and royalty providers may seek orphan drug designation, impacting revenue. This change might result in reduced milestone or royalty revenue.
• Acquisitions of potential future royalty and licensee agreements may be secured by up to $140.0 million.
• The Biologics Price Competition and Innovation Act may shorten exclusivity periods, impacting royalties. This change might result in earlier competition for biological products.
• The company may need to take various actions to avoid being considered an "investment company."
• HHS announced the first ten drugs subject to price negotiations, impacting future revenue streams.
• Unsuccessful attempts to acquire new royalties could result in significant costs and reputation damage.
• Potential acquisitions involve risks like competing offers, integration challenges, and regulatory hurdles.
• Potential legal challenges to the Medicare drug price negotiation program could affect the pharmaceutical industry.
• Approval of generic versions could affect sales and royalties. This change might result in decreased sales and royalties for product candidates.
• Quarterly dividends are expected to be an ongoing expenditure for the company.
• The company may need to raise additional funds to continue business operations.
• The lack of liquidity in acquisitions may result in realizing significantly less value than anticipated.
• Loss of patent protection may lead to competition and revenue loss. This change might result in decreased revenue and increased competition.
• Failure to protect intellectual property could hinder commercialization efforts. This change might result in delays in commercializing technologies and products.
• Litigation and arbitration proceedings may impact milestone and royalty payments. This change might result in financial implications and delays in payments.
• Data breaches and cybersecurity threats could lead to financial and reputational harm. This change might result in financial losses and reputational damage.