Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 97

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 97
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 into in the future may not be successful, which could adversely affect its ability to develop and commercialize its current and potential future product candidates.

Kadimastem may seek collaboration
arrangements with pharmaceutical or biotechnology companies for the development or commercialization of its current and potential future
product candidates. It may enter into these arrangements on a selective basis depending on the merits of retaining commercialization rights
for Kadimastem as compared to entering into selective collaboration arrangements with other pharmaceutical or biotechnology companies
for each product candidate, both in the United States and internationally. It will face, to the extent that Kadimastem decides to enter
into collaboration agreements, significant competition in seeking appropriate collaborators. Moreover, collaboration arrangements are
complex and time consuming to negotiate, document and implement. Kadimastem may not be successful in its efforts to establish and implement
collaborations or other alternative arrangements should Kadimastem so choose to enter into such arrangements. The terms of any collaborations
or other arrangements that Kadimastem may establish may not be favorable to itself.

Disagreements between parties
to a collaboration arrangement regarding clinical development and commercialization matters can lead to delays in the development process
or commercializing the applicable product candidate and, in some cases, termination of the collaboration arrangement. These disagreements
can be difficult to resolve if neither of the parties has final decision-making authority.

Collaborations with pharmaceutical
or biotechnology companies and other third parties often are terminated or allowed to expire by the other party. Any such termination
or expiration could adversely affect Kadimastem financially and could harm its business reputation.

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Kadimastem’s reliance on third parties requires it to share its trade secrets, which increases the possibility that a competitor will discover them or that its trade secrets will be misappropriated or disclosed.

Because Kadimastem relies
on third parties to develop and manufacture its product candidates, Kadimastem must, at times, share trade secrets with them. It seeks
to protect its proprietary technology in part by entering into confidentiality agreements and, if applicable, material transfer agreements,
collaborative research agreements, consulting agreements or other similar agreements with its collaborators, advisors, employees and consultants
prior to beginning research or disclosing proprietary information. These agreements typically limit the rights of the third parties to
use or disclose its confidential information, such as trade secrets. Despite the contractual provisions employed when working with third
parties, the need to share trade secrets and