Precision BioSciences, Inc. is a publicly traded American clinical stage gene editing company headquartered in Durham, North Carolina. Founded in 2006, Precision is focused on developing both in vivo and ex vivo gene editing therapies using its proprietary "ARCUS" genome editing platform.3 Its shares trade on Nasdaq under the symbol DTIL.1Wikipedia text CC BY-SA 4.0
Precision BioSciences, Inc. is a publicly traded American clinical stage gene editing company headquartered in Durham, North Carolina. Founded in 2006, Precision is focused on developing both in vivo and ex vivo gene editing therapies using its proprietary "ARCUS" genome editing platform.3
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Out of $34.3M in revenue.9 The company lost money this year.
Financial statements
Revenue10111213149$34.3M in 2025+54% since 2019Operating income10111213149-$52.1M in 2025−40% since 2019Net income10111213149-$45.7M in 2025−51% since 2019
Revenue1516$0 in Q2 FY2026Operating income1516-$19.2M in Q2 FY2026+111% since Q1 FY2026Net income1516-$32.7M in Q2 FY2026+77% since Q1 FY2026
Every line of the income statement as filed: the last 2 fiscal years, latest first.9
Period ending
2025-12-31
2024-12-31
Revenue
$34.3M
$68.7M
Research and development
$54.2M
$59.6M
General and administrative
$32.2M
$35.3M
Total operating expenses
$86.4M
$94.9M
Operating loss
-$52.1M
-$26.2M
Loss from equity method investment
-$5.3M
-$1.1M
(Loss) gain on changes in other fair value adjustments
-$2.7M
$258.0K
Gain on change in fair value of warrant liability
$11.1M
$29.6M
Interest expense
$1.4M
$1.8M
Interest income
$4.2M
$6.8M
Loss on disposal of assets
-$421.0K
-$436.0K
Impairment charges
-$36.0K
$0
Total other income
$5.5M
$33.3M
(Loss) income from continuing operations
-$46.6M
$7.2M
Gain from discontinued operations
$885.0K
$0
Net (loss) income
-$45.7M
$7.2M
Basic (in USD per shares)
-$3.56
$1.05
Diluted (in USD per shares)
-$3.56
$1.04
Basic (in shares)
12.8M shares
6.8M shares
Diluted (in shares)
12.8M shares
6.9M shares
No quarter-by-quarter statement was filed.
Total assets10111213149$154.4M in 2025−34% since 2019Total liabilities10111213149$62.2M in 2025−36% since 2019Shareholders’ equity111213149$92.2M in 2025−33% since 2019Cash10111213149$110.8M in 2025−39% since 2019Long-term debt1213$22.2M in 2022+797% since 2021
Total assets1516$125.9M in Q2 FY2026−18% since Q1 FY2025Total liabilities1516$80.6M in Q2 FY2026+30% since Q1 FY2025Shareholders’ equity1516$45.3M in Q2 FY2026−51% since Q1 FY2025Cash1516$86.1M in Q2 FY2026−22% since Q1 FY2025
Every line of the balance sheet as filed: the last 3 fiscal years (annual) or 3 quarters (quarterly), latest first.9
Period ending
2025-12-31
2024-12-31
2023-12-31
Cash and cash equivalents
$110.8M
$85.9M
Accounts receivable
$0
$229.0K
Marketable securities
$4.8M
$413.0K
Prepaid expenses
$3.1M
$6.4M
Assets held for sale
$0
$169.0K
Contract asset
$0
$1.5M
Other current assets
$45.0K
$369.0K
Total current assets
$118.7M
$95.0M
Restricted cash
$26.3M
$22.6M
Property, equipment, and softwarenet
$1.4M
$3.1M
Intangible assetsnet
$1.2M
$622.0K
Right-of-use assetsnet
$5.8M
$7.1M
Investment in equity securities
$744.0K
$3.2M
Note receivablenet
$0
$4.6M
Other assets
$206.0K
$221.0K
Total assets
$154.4M
$136.4M
Accounts payable
$296.0K
$1.3M
Accrued compensation
$4.7M
$5.2M
Accrued research and development expenses
$1.7M
$2.0M
Deferred revenue
$0
$3.0M
Lease liabilities
$1.5M
$1.3M
Other current liabilities
$649.0K
$989.0K
Current liabilities of discontinued operations
$0
$1.2M
Total current liabilities
$8.9M
$15.0M
Loan payable
$22.4M
$22.3M
Deferred revenue
$0
$23.3M
Lease liabilities
$4.9M
$6.4M
Warrant liability
$15.7M
$2.8M
Contract liabilities
$10.0M
$10.0M
Other noncurrent liabilities
$259.0K
$194.0K
Total liabilities
$62.2M
$80.0M
Preferred stock: $0.0001 par value 10,000,000 shares authorized as of December 31, 2025 and December 31, 2024; no shares issued and outstanding as of December 31, 2025 and December 31, 2024
$0
$0
Common stock: $0.000005 par value 200,000,000 shares authorized as of December 31, 2025 and December 31, 2024; 24,115,346 shares issued and 24,088,425 shares outstanding as of December 31, 2025; 8,229,730 shares issued and 8,202,715 shares outstanding as of December 31, 2024
$1.0K
$1.0K
Additional paid-in capital
$621.4M
$539.8M
Accumulated deficit
-$528.2M
-$482.5M
Treasury stock
-$952.0K
-$952.0K
Total stockholders equity
$92.2M
$56.4M
$18.9M
Total liabilities and stockholders equity
$154.4M
$136.4M
Preferred stock, par value (in USD per shares)
$0.00
$0.00
Preferred stock, shares authorized (in shares)
10.0M shares
10.0M shares
Preferred stock, shares issued (in shares)
0 shares
0 shares
Preferred stock, shares outstanding (in shares)
0 shares
0 shares
Common stock, par value (in USD per shares)
$0.00
$0.00
Common stock, shares authorized (in shares)
200.0M shares
200.0M shares
Common stock, shares issued (in shares)
24.1M shares
8.2M shares
Common stock, shares outstanding (in shares)
24.1M shares
8.2M shares
Period ending
2025-12-31
2024-12-31
2023-12-31
Cash and cash equivalents
$110.8M
$85.9M
Accounts receivable
$0
$229.0K
Marketable securities
$4.8M
$413.0K
Prepaid expenses
$3.1M
$6.4M
Assets held for sale
$0
$169.0K
Contract asset
$0
$1.5M
Other current assets
$45.0K
$369.0K
Total current assets
$118.7M
$95.0M
Restricted cash
$26.3M
$22.6M
Property, equipment, and softwarenet
$1.4M
$3.1M
Intangible assetsnet
$1.2M
$622.0K
Right-of-use assetsnet
$5.8M
$7.1M
Investment in equity securities
$744.0K
$3.2M
Note receivablenet
$0
$4.6M
Other assets
$206.0K
$221.0K
Total assets
$154.4M
$136.4M
Accounts payable
$296.0K
$1.3M
Accrued compensation
$4.7M
$5.2M
Accrued research and development expenses
$1.7M
$2.0M
Deferred revenue
$0
$3.0M
Lease liabilities
$1.5M
$1.3M
Other current liabilities
$649.0K
$989.0K
Current liabilities of discontinued operations
$0
$1.2M
Total current liabilities
$8.9M
$15.0M
Loan payable
$22.4M
$22.3M
Deferred revenue
$0
$23.3M
Lease liabilities
$4.9M
$6.4M
Warrant liability
$15.7M
$2.8M
Contract liabilities
$10.0M
$10.0M
Other noncurrent liabilities
$259.0K
$194.0K
Total liabilities
$62.2M
$80.0M
Preferred stock: $0.0001 par value 10,000,000 shares authorized as of December 31, 2025 and December 31, 2024; no shares issued and outstanding as of December 31, 2025 and December 31, 2024
$0
$0
Common stock: $0.000005 par value 200,000,000 shares authorized as of December 31, 2025 and December 31, 2024; 24,115,346 shares issued and 24,088,425 shares outstanding as of December 31, 2025; 8,229,730 shares issued and 8,202,715 shares outstanding as of December 31, 2024
$1.0K
$1.0K
Additional paid-in capital
$621.4M
$539.8M
Accumulated deficit
-$528.2M
-$482.5M
Treasury stock
-$952.0K
-$952.0K
Total stockholders equity
$92.2M
$56.4M
$18.9M
Total liabilities and stockholders equity
$154.4M
$136.4M
Preferred stock, par value (in USD per shares)
$0.00
$0.00
Preferred stock, shares authorized (in shares)
10.0M shares
10.0M shares
Preferred stock, shares issued (in shares)
0 shares
0 shares
Preferred stock, shares outstanding (in shares)
0 shares
0 shares
Common stock, par value (in USD per shares)
$0.00
$0.00
Common stock, shares authorized (in shares)
200.0M shares
200.0M shares
Common stock, shares issued (in shares)
24.1M shares
8.2M shares
Common stock, shares outstanding (in shares)
24.1M shares
8.2M shares
Cash from operations10111213149-$65.8M in 2025−7% since 2019
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
Every line of the cash flow as filed: the last 2 fiscal years, latest first.9
Period ending
2025-12-31
2024-12-31
Net (loss) income
-$45.7M
$7.2M
Depreciation and amortization
$1.5M
$3.4M
Share-based compensation
$10.2M
$12.6M
Impairment charges
$36.0K
$0
(Gain) loss on disposal of assets
$421.0K
$436.0K
Issuance of common stock in exchange for services
$259.0K
$0
Non-cash interest expense
$186.0K
$249.0K
Amortization of right-of-use assets
$1.3M
$1.2M
Loss (gain) on changes in other fair value adjustments
$2.7M
-$258.0K
Loss from equity method investment
$5.3M
$1.1M
Gain from disposal of business
-$855.0K
$0
Amortization of discount on note receivable
-$682.0K
-$695.0K
Gain on change in fair value of warrant liability
-$11.1M
-$29.6M
Prepaid expenses
$3.3M
-$464.0K
Marketable securities
-$4.5M
$2.0M
Convertible note receivable
$0
$9.8M
Accounts receivable
$229.0K
$672.0K
Contract asset
$1.5M
-$1.5M
Other assets and other current assets
$339.0K
-$262.0K
Accounts payable
-$737.0K
-$2.1M
Other liabilities and other current liabilities
-$1.8M
-$2.1M
Deferred revenue
-$26.3M
-$58.9M
Lease liabilities
-$1.3M
-$1.1M
Net cash used in operating activities
-$65.8M
-$58.4M
Purchases of property, equipment and software
-$85.0K
-$250.0K
Purchases of intangibles assets
-$615.0K
-$25.0K
Proceeds from sale of equipment
$66.0K
$60.0K
Net cash used in investing activities
-$634.0K
-$215.0K
Proceeds from employee stock purchase plan
$218.0K
$249.0K
Proceeds from offering of common stock and warrants through underwritten offering, net of issuance costs
$70.0M
$37.0M
Proceeds from issuance of common stock through ATM facility, net of issuance cost
$23.9M
$12.3M
Proceeds from offering of common stock to collaboration partners and licensees
$1.0M
$905.0K
Repayment of revolving credit facility
$0
-$22.5M
Borrowings from term loan debt facility, net of issuance costs paid to lender
$0
$22.5M
Net cash provided by financing activities
$95.2M
$50.5M
Net increase (decrease) in cash, cash equivalents and restricted cash
$28.7M
-$8.2M
Property, equipment and software additions included in accounts payable, accrued expenses and other current liabilities
$0
$48.0K
Intangible asset additions included in accounts payable and accrued expenses and other current liabilities
Precision BioSciences sits at the top of its group. 1 entity, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.
Major holders of Precision BioSciences
Benjamin Weinstein Filed SCHEDULE 13G/A on Precision BioSciences, latest Aug 24, 2026 (2 filings since Mar 18, 2025)
Empery Asset Management, LPFiled SCHEDULE 13G/A on Precision BioSciences, latest Jul 29, 2026 (3 filings since Jan 22, 2026)
Lynx1 Capital Management LPFiled SCHEDULE 13G on Precision BioSciences, latest Jul 20, 2026 (4 filings since Feb 14, 2025)
TANG CAPITAL MANAGEMENT LLCFiled SCHEDULE 13G/A on Precision BioSciences, latest Feb 17, 2026 (3 filings since Nov 14, 2024)
Bleichroeder LPFiled SCHEDULE 13G/A on Precision BioSciences, latest Feb 13, 2026 (2 filings since Aug 14, 2025)
Janus Henderson Group Ltd.Filed SCHEDULE 13G/A on Precision BioSciences, latest Feb 14, 2025 (3 filings since Mar 11, 2024)
Precision BioSciencesDurham, North Carolina, United States
Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What Precision BioSciences reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
We currently occupy approximately 71,305 square feet of office and laboratory space, of which we have subleased approximately 18,000 square feet, at our corporate headquarters in Durham, North Carolina under a lease that expires in 2029.
Derek Jantz and Jeff Smith met as postdoctoral fellows at Duke University, and in March 2006, they founded Precision BioSciences along with Matt Kane, a student at the Duke Fuqua School of Business at the time. The company went through two rounds of early funding: a Series A round led by venBio to fund development of the genome editing platform, and Series B financing to fund product development efforts. The company completed its initial public offering in 2019, and trades under the Nasdaq ticker DTIL.
Precision entered into a partnership with Eli Lilly in November 2020 to use ARCUS editing for up to six in vivo targets connected to genetic disorders, beginning with Duchenne muscular dystrophy. In September 2021, Precision announced two more collaborations, with UK biotechnology company Tiziana Life Sciences to explore using foralumab to aid chimeric antigen receptor (CAR) T cell therapy, and with Philadelphia-based iECURE to advance candidates into clinical trials and investigate how ARCUS can help treat liver diseases. Michael Amoroso, the former CEO of cell and gene therapy developer Abeona Therapeutics, succeeded Matt Kane as President and CEO in October 2021. That December, Precision announced its entry into an agreement with a syndicate of investors led by ACCELR8 to spin off its subsidiary, Elo Life Systems, and create an independent company focused on food and agriculture business.
May 15, 2025Reported quarterly or annual results57
Mar 26, 2025Reported quarterly or annual results58
Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar
Filings
396 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 79 major events, 174 insider forms, 46 large holders, 77 other. The latest 20:
66 open-market trades by officers, directors and large owners since October 2021: 24 buys and 42 sales. Grants, option exercises and gifts are left out.
Derek JantzSC 13G/A, 2 filings Feb 10, 2022 to Aug 31, 202277
BlackRockSC 13G, 2 filings Feb 3, 2022 to Jul 8, 202278
Executive pay
What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.
Year
Executive
Age
Salary
Total pay
2025
Michael AmorosoPresident, Chief Executive Officer and Director
The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 94. Change is in shares since the quarter before.
13F reports cover disclosed long positions in U.S. stocks only.
SEC filer profile
How Precision BioSciences is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.
From the cover page of the 10-K filed Mar 12, 2026 (Section 12(b) of the Exchange Act).17
Risk factors and legal proceedings
The risks Precision BioSciences names in Item 1A of its 10-K filed Mar 12, 2026: 75 risks under these headings, as written.17
Risks Related to Our Financial Condition, Limited Operating History and Need for Additional Capital
We have incurred significant operating losses since our inception and expect to continue to incur losses for the foreseeable future. We have not been profitable and may not achieve or maintain profitability.
We will need substantial additional funding, and if we are unable to raise a sufficient amount of capital when needed on acceptable terms, or at all, we may be forced to delay, reduce or eliminate some or all of our research programs, product development activities and commercialization efforts.
Provisions of our debt instruments may restrict our ability to pursue our business strategies, and our ability to access credit on favorable terms, if necessary, for the funding of our operations, trials and programs may be limited due to changes in credit markets.
Raising additional capital may cause dilution to our stockholders, restrict our operations, or require us to relinquish rights to our technologies or product candidates.
We have a limited operating history, which makes it difficult to evaluate our current business and future prospects and may increase the risk of your investment.
We may expend our limited resources on pursuing particular research programs or product candidates that may be less successful or profitable than other programs or product candidates.
Risks Related to the Identification, Development and Commercialization of Our Product Candidates
ARCUS is a novel technology, making it difficult to predict the time, cost and potential success of product candidate development. We have not yet been able to assess the safety and efficacy of most of our product candidates in humans.
The genome editing field is relatively new and evolving rapidly, and other existing or future technologies may provide significant advantages over our ARCUS platform, which could materially harm our business.
We are heavily dependent on the successful development and translation of ARCUS, and due to the early stages of our product development operations, we cannot give any assurance that any product candidates will be successfully developed and commercialized.
Our research and development programs may not lead to the successful identification, development or commercialization of any products.
The other 63 risks
If our product candidates do not achieve projected development milestones or commercialization in the announced or expected timeframes, the further development or commercialization of such product candidates may be delayed, and our business will be harmed.
Adverse public perception of genome editing may negatively impact the developmental progress or commercial success of products that we develop alone or with collaborators.
We face significant competition in industries experiencing rapid technological change, and there is a possibility that our competitors may achieve regulatory approval before us or develop product candidates or treatments that are safer or more effective than ours, which may harm our financial condition and our ability to successfully market or commercialize any of our product candidates.
Product liability lawsuits against us could cause us to incur substantial liabilities and could limit commercialization of any products that we develop alone or with collaborators.
Additional Risks Related to the Identification, Development and Commercialization of Our Therapeutic Product Candidates
The regulatory landscape that will apply to development of therapeutic product candidates by us or our collaborators is rigorous, complex, uncertain and subject to change, which could result in delays or termination of development of such product candidates or unexpected costs in obtaining regulatory approvals.
We may not be able to submit INDs to the FDA or CTAs to comparable foreign authorities to commence clinical trials on the timelines we expect, and even if we are able to, the FDA or comparable foreign authorities may not permit us to proceed.
The regulatory approval processes of the FDA and comparable foreign authorities are lengthy, time consuming and inherently unpredictable, and if we are ultimately unable to obtain regulatory approval for our product candidates, our business will be substantially harmed.
Clinical trials are difficult to design and implement, expensive, time-consuming and involve an uncertain outcome, and the inability to successfully and timely conduct clinical trials and obtain regulatory approval for our product candidates would substantially harm our business.
Any product candidates that we or our collaborators may develop will be novel and may be complex and difficult to manufacture, and if we experience manufacturing problems, it could result in delays in development and commercialization of such product candidates or otherwise harm our business.
Any delays or difficulties in our or our collaborators’ ability to enroll patients in clinical trials could delay or prevent receipt of regulatory approvals.
Results of preclinical studies and early clinical trials of product candidates may not be predictive of results of later studies or trials. Our product candidates may not have favorable results in later clinical trials, if any, or receive regulatory approval.
Interim, “top-line” and initial data from studies or trials that we announce or publish from time to time may change as more data become available and are subject to audit and verification procedures that could result in material changes in the final data.
Our product candidates may not work as intended or cause undesirable side effects that could hinder or prevent receipt of regulatory approval or realization of commercial potential for them or our other product candidates and substantially harm our business.
We are subject to federal, state and foreign healthcare laws and regulations relating to our business, and could face substantial penalties if we are determined not to have fully complied with such laws, which would have an adverse impact on our business.
Actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards and other requirements, and the increasing use of social media, could adversely affect our business, results of operations, and financial condition.
Our business and operations may suffer in the event of information technology system failures, cyber-attacks or deficiencies in our security, which could materially affect our results.
We may seek orphan drug designation for our product candidates, but we may be unable to obtain such designations or to maintain the benefits associated with orphan drug designation, which may negatively impact our ability to develop or obtain regulatory approval for such product candidates and may reduce our revenue if we obtain such approval.
We have obtained a rare pediatric disease designation for PBGENE-DMD, however, there is no guarantee that FDA approval of PBGENE-DMD will result in issuance of a priority review voucher
A Fast Track Designation from the FDA, even if granted for any of our product candidates, may not lead to a faster development or regulatory review or approval process, and does not increase the likelihood that our product candidates will receive regulatory approval.
If the product candidates that we or our collaborators may develop receive regulatory approval in the United States or another jurisdiction, they may never receive approval in other jurisdictions, which would limit market opportunities for such product candidate and adversely affect our business.
Current and future legislation may increase the difficulty and cost for us to obtain marketing approval of and commercialize any product candidates we or our collaborators develop and may adversely affect the prices for such product candidates.
Even if we obtain regulatory approval for any products that we develop alone or with collaborators, such products will remain subject to ongoing regulatory requirements, which may result in significant additional expense.
The FDA and other regulatory agencies actively enforce the laws and regulations prohibiting the promotion of off-label uses. If we are found or alleged to have improperly promoted off-label uses, we may become subject to significant liability.
Disruptions at the FDA and other government agencies caused by funding shortages, staffing limitations, or policy changes could hinder their ability to hire, retain or deploy key leadership and other personnel, or otherwise prevent new or modified products from being developed, approved or commercialized in a timely manner or at all, which could negatively impact our business.
Even if any product we develop alone or with collaborators receives marketing approval, such product may fail to achieve the degree of market acceptance by physicians, patients, healthcare payors and others in the medical community necessary for commercial success.
If we are unable to establish sales and marketing capabilities or enter into agreements with third parties to sell and market any products we develop alone or with collaborators, the commercialization of such products may not be successful if and when they are approved.
If the market opportunities for any products we develop alone or with collaborators are smaller than our estimates, or if we are unable to successfully identify enough patients, our revenues may be adversely affected.
The successful commercialization of potential products will depend in part on the extent to which governmental authorities and health insurers establish coverage, and the adequacy of reimbursement levels and pricing policies, and failure to obtain or maintain coverage and adequate reimbursement for any potential products that may receive approval, could limit marketability of those products and decrease our ability to generate revenue.
Our product candidates for which we intend to seek approval as biologic products may face competition sooner than anticipated.
Risks Related to Our Organization, Structure and Operations
We may experience difficulties in managing the needs of our business, which could disrupt our operations.
We may engage in transactions that could disrupt our business, cause dilution to our stockholders or reduce our financial resources.
Our future success depends on our key executives, as well as attracting, retaining and motivating qualified personnel.
We are subject to increased costs as a result of operating as a public company, and our management will be required to devote substantial time to maintaining compliance initiatives and corporate governance practices, including establishing and maintaining proper and effective internal control over financial reporting.
Our insurance policies are expensive and protect us only from some business risks, which leaves us exposed to significant uninsured liabilities.
If we or any of our contract manufacturers or other suppliers fail to comply with environmental, health and safety laws and regulations, we could become subject to fines or penalties or incur significant costs.
Our business operations, including our current and future relationships with third parties, may expose us to penalties for potential misconduct or improper activity, including non-compliance with regulatory standards and requirements.
We are subject to complex tax rules relating to our business, and any audits, investigations or tax proceedings could have a material adverse effect on our business, results of operations and financial condition.
We may not be able to utilize all, or any, of our net operating loss carryforwards.
Risks Related to Our Reliance on Third Parties
We have entered into significant arrangements with collaborators and expect to depend on collaborations with third parties for certain research, development and commercialization activities, and if any such collaborations are not successful, it may harm our business and prospects.
If we are not able to establish collaborations on commercially reasonable terms, we may have to alter our research, development and commercialization plans.
We rely on third parties to conduct, supervise and monitor our clinical trials and some aspects of our research and preclinical testing, and if those third parties do not successfully carry out their contractual duties, comply with regulatory requirements, or otherwise perform in a satisfactory manner, we may not be able to obtain regulatory approval or commercialize product candidates, or such approval or commercialization may be delayed, and our business may be substantially harmed.
We rely on third parties to supply raw materials or manufacture product supplies that are necessary for the conduct of preclinical studies, clinical trials and manufacturing of our product candidates, and failure by third parties to provide us with sufficient quantities of products, or to do so at acceptable quality levels or prices and on a timely basis, could harm our business.
We rely on third parties for the manufacturing process of product candidates, and failure by those parties to adequately perform their obligations could harm our business.
Risks Related to Intellectual Property
Our ability to compete may decline if we do not adequately protect our proprietary rights, and if our proprietary rights do not provide a competitive advantage.
If we fail to comply with our obligations in the agreements under which we license intellectual property rights from third parties or otherwise experience disruptions to our business relationships with our licensors, we could lose license rights that are important to our business.
Some of our in-licensed intellectual property has been discovered through government funded research and thus may be subject to federal regulations such as “march-in rights”, certain reporting requirements and a preference for U.S.-based companies, and compliance with such regulations may limit our exclusive rights and our ability to contract with foreign manufacturers.
If we do not obtain patent term extension in the United States under the Hatch-Waxman Act and in foreign countries under similar legislation with respect to our product candidates, thereby potentially extending the term of marketing exclusivity for such product candidates, our business may be harmed.
Patents and patent applications involve highly complex legal and factual questions, which, if determined adversely to us, could negatively impact our patent position.
Third parties may assert claims against us alleging infringement of their patents and proprietary rights, or we may need to become involved in lawsuits to defend or enforce our patents, either of which could result in substantial costs or loss of productivity, delay or prevent the development and commercialization of product candidates, prohibit our use of proprietary technology or sale of potential products or put our patents and other proprietary rights at risk.
Developments in patent law could have a negative impact on our business.
If we were unable to protect the confidentiality of our trade secrets and enforce our intellectual property assignment agreements, our business and competitive position would be harmed.
We will not seek to protect our intellectual property rights in all jurisdictions throughout the world, and we may not be able to adequately enforce our intellectual property rights even in the jurisdictions where we seek protection.
We may not be successful in obtaining or maintaining necessary rights to product components and processes for our development pipeline through acquisitions and in-licenses.
If our trademarks and trade names are not adequately protected, then we may not be able to build name recognition in our markets of interest and our business may be adversely affected.
Risks Related to Owning Our Common Stock
We could be subject to securities class action litigation.
We do not currently intend to pay dividends on our common stock.
Provisions in our amended and restated certificate of incorporation and amended and restated bylaws or Delaware law might discourage, delay or prevent a change in control of our company or changes in our management and therefore depress the trading price of our common stock.
Our amended and restated certificate of incorporation and our amended and restated bylaws include exclusive forum provisions for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
We are a “smaller reporting company” and the reduced disclosure requirements applicable to smaller reporting companies may make our common stock less attractive to investors.
General Risk Factors
We or third parties with whom we have relationships may be adversely affected by natural or manmade disasters, public health emergencies and other natural catastrophic events, and our business continuity and disaster recovery plans may not adequately protect us from a serious disaster.
Unstable market and economic conditions may have serious adverse consequences on our business, financial condition and stock price.
The market price of our common stock may be volatile and fluctuate substantially, which could result in substantial losses for purchasers of our common stock.
Legal proceedings
From time to time we may be involved in claims and proceedings arising in the course of our business. The outcome of any such claims or proceedings, regardless of the merits, is inherently uncertain. We are not currently party to any material legal proceedings.
