Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 191

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 191
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C) strategy and our proposed clinical development plan for SACT-1 Phase
1/2 trials. Currently, ALS-4 and SACT-1 are Phase 2 clinical trials ready.

During the second quarter
of 2023, the Company made a decision to streamline its operations by terminating clinic services and suspending non-lead R&D projects.
This measure is aimed at optimizing the allocation of our resources and focusing our efforts on advancing our lead projects, which hold
the most promise for commercial success and beneficial impact. This decision aligns with our commitment to enhance shareholder value and
effectively drive our core objectives forward in the competitive landscape.

Prior to March 2017, the Company
had pursued passive healthcare related investments in early-stage companies primarily in the United States. However, we have since ceased
pursuing further passive investment operations and intend to exit all such portfolio investments over an appropriate timeframe to focus
resources on our current business.

Lead Projects

We are operating and managing
the development of our drug candidates through various subsidiaries. Each candidate is being researched in a subsidiary with a medical/scientific
area of focus related to the drug candidate in development. We refer to these as our “Project Companies” and their products
or areas of focus as our Lead Projects (i.e., ALS-4 and SACT-1). The selection of a drug candidate is based on our estimate of the market
potential for that candidate, the scientific expertise required to develop it, and our overall corporate strategy, including our ability
to commit personnel and future investment to that candidate.

To pursue a number of our
current projects, our Project Companies have entered into standard license agreements with various universities and licensing entities
customized to the nature of each project. These license agreements largely contain the same terms, as is typically seen in license agreements
for an early-stage life science invention; such terms include a worldwide license with licensed field comprising indications in the intended
treatment areas, having upfront payments, certain royalty rates, sublicensing royalties, as well as provisions for payments upon occurrence
of development and/or regulatory milestones. Under the license agreements, the Project Company must also adhere to certain diligence obligations
(which may include specific diligence) and the types of activities or achievements that will satisfy those diligence obligations. Additionally,
our Project Company may or may not be required to obtain prior consent from the licensor to sublicense the invention. The license terms
of our Lead Projects are discussed in detail below.

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Generally speaking