Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2473

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2473
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    Potential
    for multiple products / applications

    ●
    Potential
    to address significant unmet medical needs

    ●
    Product
    advantages that are “must-haves” for patients, practitioners, and payors

    ●
    Manufacturing
    and scale-up feasibility

    ●
    Attractive
    market / competitive dynamics

    ●
    Favorable
    pricing and reimbursement with good gross margin potential

15

Step
Two: Executing License Agreements

After
a new program is selected via the process outlined above, or in some cases as part of the selection process, we endeavor to negotiate
and execute a license agreement with the relevant university or medical center. Our team has negotiated and executed dozens of such license
agreements, both as licensee and as licensor.

As
mentioned previously, we believe our business model may make us the ‘licensee of choice’ for institutions and researchers
because we aim to act with greater speed and to provide better potential upside when compared to the companies or spin-out startups to
whom the institution might also consider licensing. In particular, by housing each program in a subsidiary, we can grant a certain percentage
of that subsidiary’s ownership (targeting 20% in aggregate) to the institution and to the relevant researchers. We believe that
receiving such percentage of economic value, regardless of how it is derived, will be more attractive to the institution than relying
on the fixed milestone payments and single-digit royalties that are customary in other license agreements. Additionally, we believe that
individual researchers will find it more attractive to have a direct stake in a program’s economic value as opposed to receiving
a share (typically one third) of whatever economic value their institution would receive in customary license agreements. Lastly, we
believe institutions and their researchers will prefer our approach over launching a startup because we eliminate the challenge of raising
venture capital and securing a team, and because the percent equity ownership we can offer is likely to be higher than the single-digit
figures that usually result after the typical dilution in startups.

By
offering a percentage ownership in a program’s subsidiary in lieu of the alternative license fees, milestone payments and royalties,
we believe our license agreements (and the associated negotiation) will be greatly simplified while also being more attractive to our
licensors and their individual researchers.

Step
Three: Product Development, and Commercialization

We
are an asset-focused company with an operating model designed for agile, capital efficient, and