Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 4

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 4
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.2% of drug candidates entering phase 1 trials fails to achieve drug approval. (Wong C. H., Siah K. W. & Lo A.
W. (2019, April), “ Estimation of clinical trial success rates and related parameters,” retrieved from https://academic. oup. com/biostatistics/article/20/2/273/4817524).
Even after a drug is commercialized, there are just too many factors affecting the sales of pharmaceutical products, including unmet need/burden
of disease (68.2%), clinical efficacy (47.3%), comparator choice (36.4%), safety profile (36.4%), and price (35.5%) (Sendyona, S., Odeyemi,
I., & Maman, K. “ Perceptions and factors affecting pharmaceutical market access: Results from a literature review and survey
of stakeholders in different settings” Journal of Market Access & Health Policy, 4(1), 31660, 2016). In the end, on average,
only 20% of approved new drugs generate revenues that exceed the average R& D investment. (Rosenblatt, M. (2014, December 19) “ The
Real Cost of “ High-Priced” Drugs,” retrieved from https://hbr. org/2014/11/the-real-cost-of-high-priced-drugs). We may
determine that certain preclinical product candidates or programs do not have sufficient potential to warrant the allocation of resources
toward them. Accordingly, we may elect to terminate our programs for and, in certain cases, our licenses to, such product candidates or
programs. If we terminate a preclinical program in which we have invested significant resources, we will have expended resources on a
program that will not provide a full return on our investment and missed the opportunity to have allocated those resources to potentially
more productive uses.

Management has discretion to terminate the
development of any of our projects at any time.

In light of the costs, both
in time and expense, as well as the preclinical results and general business considerations, management may decide not to continue developing
a particular preclinical program without announcement. Management will always base its decision on what it believes to be the most efficient
use of the Company’s resources to provide the most value to its shareholders. As a result, investors may not always be aware of
the termination of a previously announced study or trial. The Company will continue to provide update