Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2065

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 2065
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    ●
    We
    believe that our diversified pipeline approach provides us with meaningful advantages: Unlike biotechnology companies that are focused
    on a narrow set of assets, on a single platform, or on a particular therapeutic area, we are advancing a diverse portfolio of several
    programs in parallel. In so doing, we aim to avoid the duplication of resources, the extra costs and the lack of valuable cross-pollination
    that would likely exist if each program were pursued as independent assets. We are evidence-based and program agnostic, where deployment
    of program resources are driven strictly by program progress and milestone achievements. We believe that our diverse, multi-program
    business model and our access to a robust pipeline of opportunities helps us to remain focused on the most promising assets. We believe
    this focus differentiates us advantageously from biotech companies that, by purposely being focused, have bet their fortunes on a
    limited number of programs.

    ●
    We
    aim to create optionality for maximum impact and value creation in each program: Throughout the development of any program we continuously
    assess that program’s potential paths to market and monetization. We anticipate that such paths may include: (a) taking a candidate
    all the way through to potential approval and product launch via internal funding; (b) externalizing development with a strategic
    partner that we believe is better suited to progress a program; and (c) spinning out or taking a candidate’s subsidiary public.
    We believe that our structure and operational strategy enables us to objectively assess and choose the option that maximizes potential
    value for patients and for our shareholders.

Our
Structure: Supporting Innovation

We
are structured in a manner where Ocean Biomedical houses each program in a subsidiary. We currently house our programs in four wholly-owned
subsidiaries and intend to grant a certain percentage of the ownership in future subsidiaries, typically 20% in aggregate, to the institution
and to the relevant researchers. This anticipated organizational structure for future subsidiaries is unique in the market and we believe
it will make us the partner of choice for institutions and inventors.

Currently,
research universities and medical centers (institutions) have two primary options to commercialize their biomedical innovations and technologies:
licensing to pharma, or licensing to startups that are usually founded or co-founded by the researchers (the inventors) behind the innovations.
Most commonly, the IP policy of U.S. institutions specifies that economic value received from licenses is split equally among