Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 154

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 154
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 monetize its commercial products on a profitable basis if third-party payers refuse to cover its products or pay DiamiR low
levels of reimbursement, or if its costs of production increases faster than increases in reimbursement levels.

Additionally, third-party
payers are increasingly reducing reimbursement for medical products and services. In addition, the U.S. government, state legislatures,
and foreign governments have and may continue to implement cost-containment measures and more restrictive policies, including price controls
and restrictions on reimbursement. Government authorities and third-party payors have attempted to control costs by limiting coverage
and the amount of reimbursement for particular products. Further, the Budget Control Act of 2011 (the “Budget Control Act”)
established a process to reduce federal budget deficits through an automatic “sequestration” process if deficit reductions
targets are not otherwise reached. Under the terms of the Budget Control Act, sequestration imposes cuts to a wide range of federal programs,
including Medicare, which is subject to a two percent cut. The Bipartisan Budget Act of 2013 extended the two percent sequestration cut
for Medicare through fiscal year 2023, and a bill signed by President Obama on February 15, 2014 further extended this cut for an additional
year, through fiscal year 2024. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law in March 2020, included
critical relief from sequestration cuts as it applies to Medicare payments, exempting Medicare from the effects of sequestration from
May 1, 2020, through March 31, 2022. Cuts of 1% were imposed from April 1 through June 30, 2022. As of July 1, 2022, cuts of two percent
were reimposed and are set to remain in effect until 2031 unless additional Congressional action is taken. To offset the temporary suspension
during the COVID-19 pandemic, in 2030, the sequestration will be 2.25% for the first half of the year, and 3% in the second half of the
year.

While DiamiR cannot predict
whether third-party reimbursement to its customers will be adequate, cost-containment measures and similar efforts by third-party payers,
including government programs such as Medicare and Medicaid, could substantially impact the sales of its products and potentially limit
its net revenue and results.

If any of its product candidates are approved, DiamiR