Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 72

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 72
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 to seek a Business Combination with a target business or businesses in the healthcare industry and whose principal business
operations are based in Asia (excluding China, Hong Kong and Macau), we expect our future operations to be subject to risks associated
with this industry.

While
we may pursue an acquisition or a target in any business or industry or across any geography, we intend to focus our search for a target
business in healthcare industry and with companies whose principal business operations are based in Asia (excluding China, Hong Kong
and Macau).

38

Life
science related companies (e.g., healthcare, biopharmaceuticals, and digital health) are typically subject to greater governmental regulation
than most other industries whether in the U.S. or global. Industries such as biopharmaceuticals are also the most research-intensive
industries. Many of the risks mentioned associated with these industries involve regulation around research and development (R&D)
of a product or technical risk factors. For example, a healthcare-related company must receive government approval before introducing
new drugs and medical devices or procedures. Drug development and the probability of success through the stages of development are key
concerns when considering pharmaceutical companies as most studies show that a drug development program’s probability of success
from Phase I trials to U.S. FDA approval was only 9.6% as of the time of our IPO, based on a study from BIO. Any potential regulatory
or policy changes can impact such success rates to even lower probabilities. Failure to obtain governmental approval of a key drug or
device or other regulatory action could have a material adverse effect on the business of a target company. Such changes may impact the
demand for or costs of certain products and services as changes may delay the introduction of these products and services to the marketplace,
resulting in increased development costs, delayed cost recovery and loss of competitive advantage to the extent that rival companies
have developed competing products or procedures, adversely affecting the company’s revenues and profitability. These types of risks
are unique to each company but typically found across most life science focused companies. Other risks can involve other areas of regulatory
compliance such as monitoring drug safety even after approval. Finally, expansion of facilities by healthcare related providers is subject
to “determinations of need” by the appropriate government authorities. This process not only increases the time and cost
involved in these expansions, but also makes expansion plans uncertain, limiting the revenue and profitability growth potential of healthcare
related facilities operators There also exists potential regulatory risk due to