# EDGAR Filing Document

**Accession Number:** 0002040807
**File Stem:** 0001193125-25-277530
**Filing Date:** 2025-11
**Character Count:** 748425
**Document Hash:** 002f70d59a252c4349f149f35c351f90
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-277530.hdr.sgml**: 20251112

**ACCESSION NUMBER**: 0001193125-25-277530

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 71

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251112

**DATE AS OF CHANGE**: 20251112

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Metsera, Inc.
- **CENTRAL INDEX KEY:** 0002040807
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42489
- **FILM NUMBER:** 251472621

**BUSINESS ADDRESS:**
- **STREET 1:** 3 WORLD TRADE CENTER
- **STREET 2:** 175 GREENWICH STREET
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10007
- **BUSINESS PHONE:** (212) 784-6595

**MAIL ADDRESS:**
- **STREET 1:** 3 WORLD TRADE CENTER
- **STREET 2:** 175 GREENWICH STREET
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10007

?xml version='1.0' encoding='ASCII'? 10-Q

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

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**FORM** 10-Q

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**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended** **September 30,** 2025

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from _______ to _______**

**Commission File Number:** 001-42489

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METSERA, INC.

**(Exact Name of Registrant as Specified in its Charter)**

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---

| | |
|:---|:---|
| Delaware | 92-0931552 |
| **(State or other jurisdiction of**<br>**incorporation or organization)** | **(I.R.S. Employer**<br>**Identification No.)** |
| <br>3 World Trade Center <br>175 Greenwich Street<br>New York**,** New York | 10007 |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code: (**212**)** 784-6595

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Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br>**Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, par value $0.00001 per share | MTSR | The Nasdaq Global Select Market |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
| Emerging growth company | ☒ |  |  |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 6, 2025, the registrant had 105,376,189 shares of common stock outstanding.

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**Table of Contents**

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| **PART I.** | [<u>FINANCIAL INFORMATION</u>](#part_i_financial_information) | 7 |
| Item 1. | [<u>Financial Statements (Unaudited)</u>](#item_1_financial_statements) | 7 |
|  | [<u>Condensed Consolidated Balance Sheets</u>](#consolidated_balance_sheets) | 7 |
|  | [<u>Condensed Consolidated Statements of Operations and Comprehensive Loss</u>](#stmtof_operations_and_comprehensive_loss) | 8 |
|  | [<u>Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit)</u>](#preferred_stock_and_stockholders_deficit) | 9 |
|  | [<u>Condensed Consolidated Statements of Cash Flows</u>](#cash_flows) | 10 |
|  | [<u>Notes to Condensed Consolidated Financial Statements</u>](#notes_to_the_unaudited_interim_condensed) | 11 |
| Item 2. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_2_managements_discussion) | 25 |
| Item 3. | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#item_3_quantitative_and_qualitative) | 38 |
| Item 4. | [<u>Controls and Procedures</u>](#item_4_controls_and_procedures) | 38 |
| **PART II.** | [<u>OTHER INFORMATION</u>](#part_ii_other_information) | 39 |
| Item 1. | [<u>Legal Proceedings</u>](#item_1_legal_proceedings) | 39 |
| Item 1A. | [<u>Risk Factors</u>](#item_1a_risk_factors) | 39 |
| Item 2. | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2_unregistered_sales_of_equity) | 92 |
| Item 3. | [<u>Defaults Upon Senior Securities</u>](#item_3_defaults_upon_senior_securities) | 92 |
| Item 4. | [<u>Mine Safety Disclosures</u>](#item_4_mine_safety_disclosures) | 92 |
| Item 5. | [<u>Other Information</u>](#item_5_other_information) | 92 |
| Item 6. | [<u>Exhibits</u>](#item_6_exhibits) | 92 |
| [<u>Signatures</u>](#signatures) | [<u>Signatures</u>](#signatures) | 94 |

---

i

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**INTRODUCTORY NOTE**

On September 21, 2025, we entered into an Agreement and Plan of Merger (the Original Merger Agreement) with Pfizer, Inc. (Pfizer), a Delaware corporation, and Mayfair Merger Sub, Inc. (Merger Sub), a Delaware corporation and a wholly owned subsidiary of Pfizer, pursuant to which, and on the terms and subject to the conditions thereof, at the effective time of the Merger (the Effective Time), Merger Sub will merge with and into Metsera, with Metsera surviving as a wholly owned subsidiary of Pfizer, which we refer to as the Merger. On November 7, 2025, we entered into Amendment No. 1 to the Original Merger Agreement (the Amendment) with Pfizer and Merger Sub, which amends the Original Merger Agreement (as amended, supplemented and otherwise modified from time to time, the Merger Agreement).

Under the terms of the proposed transaction, among other things, Pfizer has agreed to acquire all outstanding shares of Metsera for (A) $65.60 per share in cash plus (B) one contractual contingent value right representing the right to receive contingent payments (a CVR) in cash upon the achievement of certain specified milestones. The transaction values Metsera at a total equity value of approximately $10 billion. The boards of directors of both Metsera and Pfizer have approved the transaction. This transaction is expected to close in the last quarter of 2025, subject to regulatory approvals and other customary closing conditions.

The foregoing description of the Merger Agreement and the transactions contemplated thereunder is not complete and is qualified in its entirety by reference to the Original Merger Agreement, a copy of which is filed as an exhibit to the Current Report on Form 8-K, filed with the SEC on September 22, 2025, and incorporated herein by reference, and the Amendment, a copy of which is filed as an exhibit to the Current Report on Form 8-K, filed with the SEC on November 10, 2025, and incorporated herein by reference.

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**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

This Quarterly Report on Form 10-Q (Quarterly Report) contains forward-looking statements. We make such forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements are neither historical facts nor assurances of future performance. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "target," "should," "will," or "would" or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. The forward-looking statements include, but are not limited to, statements about:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the structure and timing of and ability to consummate the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any anticipated effects of the Merger's announcement, pendency or completion on the value of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our or Pfizer's ability to obtain any required regulatory approvals in connection with the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any potential future costs or benefits of the Merger, including relating to expenses, restrictions on the conduct of our business, diversion of our management's attention, ability to retain or hire employees, maintenance of relationships with collaborators, vendors and other business partners and payment of termination fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the outcome of any legal proceedings and/or regulatory actions that have been or may be instituted against us and others relating to the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing, progress and results of preclinical studies and clinical trials for our current and future product candidates and the reporting and interpretation of data from those studies and trials, including our product development plans and strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to successfully complete our preclinical studies and clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to finalize the design of any product candidate and advance our candidates as monotherapies or in combination with our other product candidates, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to leverage our platforms and peptide library to expand and pursue our discovery portfolio and deliver highly differentiated product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to progress additional programs and leverage our team's extensive track record to further develop our pipeline, including additional indications we may pursue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to establish scaled manufacturing prior to commercial launch of our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the prevalence of certain diseases and conditions we intend to treat and the size of the market opportunity for our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•expectations regarding the size, scope and design of our clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the likelihood of our clinical trials demonstrating safety and efficacy of our product candidates and other positive results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing of initiation and completion, and the progress of our drug discovery and research programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing of our planned Investigational New Drug application (IND) submissions to the U.S. Food and Drug Administration (FDA) or any comparable submissions to foreign regulatory authorities for our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing of announcement of interim, topline and preliminary results from clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our projected operating expenses and capital expenditure requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to leverage the clinical, regulatory, and manufacturing advancements to accelerate our clinical trials and approval of product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to meet future regulatory standards with respect to our product candidates, if approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our commercialization, marketing and manufacturing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the anticipated impact of geopolitical and macroeconomic factors on our business, including impacts from tariffs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the implementation of our strategic plans for our business, programs and platforms;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the scope of protection we are able to establish and maintain for intellectual property rights covering our programs and platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•developments related to our competitors and our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the success of competing therapies that are or may become available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to maintain compliance with our license agreements and maintain rights to our licensed technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to identify and enter into future license agreements and collaborations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our reliance on third parties to conduct clinical trials of our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our reliance on third parties for the manufacture of our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•developments related to our programs and platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•regulatory developments in the United States and foreign countries, including the potential impact of tariffs on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our expectations regarding the period during which we will qualify as an emerging growth company under the JOBS Act or a smaller reporting company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to attract and retain key scientific and management personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our use of proceeds from our initial public offering, our financial performance, estimates of our expenses, capital requirements and needs for additional financing.

We have based these forward-looking statements largely on our current expectations and projections about our business, the industry in which we operate and financial trends that we believe may affect our business, financial condition, results of operations and prospects, and these forward-looking statements are not guarantees of future performance or development. These forward-looking statements speak only as of the date of this Quarterly Report and are subject to a number of risks, uncertainties and assumptions described in the section titled "*Risk Factors*" and elsewhere in this Quarterly Report. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein for any reason after the date of this report to conform these statements to new information, future events or otherwise.

We may from time to time provide estimates, projections and other information concerning our industry, the general business environment, and the markets for certain diseases, including estimates regarding the potential size of those markets and the estimated incidence and prevalence of certain medical conditions. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties, and actual events, circumstances or numbers, including actual disease prevalence rates and market size, may differ materially from the information reflected in this Quarterly Report. Unless otherwise expressly stated, we obtained the industry, market and competitive position data from our internal estimates and research, as well as from independent market research, industry and general publications and surveys, governmental agencies and publicly available information in addition to research, surveys and studies conducted by third parties that have not been independently verified which may, in the future, prove not to have been accurate.

As used in this Quarterly Report, unless otherwise specified or the context otherwise requires, the terms "we," "our," "us," "Metsera," and the "Company" refer to Metsera, Inc. and its subsidiaries. All brand names or trademarks appearing in this Quarterly Report are the property of their respective owners. Metsera may use its website as a distribution channel of material information about the Company. Financial and other important information regarding the Company is routinely posted on and accessible through the Investors & News section of its website at investors.metsera.com. In addition, stockholders may sign up to automatically receive email alerts and other information about the Company by using the "Email Alerts" option on the Investors & Media page and submitting their email address.

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**SUMMARY OF MATERIAL RISKS ASSOCIATED WITH OUR BUSINESS** 

The risk factors summarized and detailed below could materially harm our business, operating results and/or financial condition, impair our future prospects and/or cause the price of our common stock to decline. A summary of the material risks that may affect our business, operating results and financial condition include, but are not necessarily limited to, those relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The conditions under the Merger Agreement to our and Pfizer's consummation of the Merger may not be satisfied at all or in the anticipated timeframe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The announcement of, or a failure to consummate, the Merger could negatively impact our business, financial condition, results of operations or our stock price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our stockholders may not receive any payment on the contingent value rights and the contingent value rights may otherwise expire valueless.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Merger Agreement contains provisions that could make it difficult for a third-party to acquire us prior to the completing of the Merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•While the Merger Agreement is in effect, we are subject to restrictions on our business activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Securities class action and derivative lawsuits in connection with the Merger could result in substantial costs and prevent or delay the consummation of the Merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We are a clinical-stage biotechnology company with a limited operating history and no history of commercializing products and have incurred significant operating losses since our inception and expect to incur significant losses for the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may never generate any revenue or become profitable or, if we achieve profitability, we may not be able to sustain it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•To the extent the Merger is not consummated on the timelines we expect or at all, we may require substantial additional capital to finance our operations, and a failure to obtain this necessary capital when needed on acceptable terms, or at all, could force us to delay, limit, reduce or terminate our development programs, commercialization efforts or other operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Raising additional capital may cause dilution to our stockholders, restrict our operations or require us to relinquish rights to our technologies or product candidates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We currently depend entirely on the success of our product candidates. Drug development is a highly uncertain undertaking and involves a substantial degree of risk. If we are unable to successfully develop any of our current or future product candidates, or experience significant delays in doing so, our business will be materially harmed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Preclinical development is uncertain. Our preclinical programs may experience delays or may never advance to clinical trials, which would adversely affect our ability to obtain regulatory approvals or commercialize these programs on a timely basis or at all, which would have an adverse effect on our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Clinical and preclinical development involves a lengthy and expensive process with an uncertain outcome, and the results of prior clinical trials and studies involving our product candidates are not necessarily predictive of our future results. Our product candidates may not show favorable results in preclinical studies or clinical trials or receive regulatory approval on a timely basis, if at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Any difficulties or delays in the commencement or completion, or the termination or suspension, of our current or planned clinical trials or preclinical studies could result in increased costs to us, delay or limit our ability to receive approval for and commercialize any product candidates and generate revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may find it difficult to enroll patients in our clinical trials. If we encounter difficulties or delays enrolling patients in our clinical trials, our clinical development activities could be delayed or otherwise adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Use of any of our current or future product candidates could be associated with side effects, adverse events or other properties or safety risks, which could delay or preclude regulatory approval, cause us to suspend or discontinue clinical trials, abandon any of our current or future product candidates, limit the commercial profile of an approved label or result in other significant negative consequences that could severely harm our business, financial condition, results of operations and prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The regulatory approval processes of the FDA and comparable foreign authorities are lengthy, time consuming and inherently unpredictable, and if we are ultimately unable to obtain regulatory approval for our product candidates, our

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business will be substantially harmed. Additional time may be required to obtain marketing authorizations for any product candidates that we develop as biologic-device combination products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We currently, and may in the future, conduct certain of our clinical trials for our product candidates outside of the United States. However, the FDA and foreign regulatory authorities may not accept data from such trials, which could materially harm our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We rely on third parties to conduct our clinical trials and preclinical studies. If these third parties do not successfully carry out their contractual duties, comply with applicable regulatory requirements, or meet expected deadlines, any of our current or future product candidates and our ability to seek or obtain regulatory approval for or commercialize any of our current or future product candidates may be delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We currently rely on third parties for the manufacture and shipping of our product candidates for clinical development, which subjects us to risks associated with international operations, including exposure to tariffs, and increases the risk that we will not have sufficient quantities of our current or future product candidates or such quantities at an acceptable cost, which could delay, prevent, or impair our development or commercialization efforts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We have entered into license and collaboration agreements, and may in the future enter into further strategic alliances, to maximize the potential of our product candidates, and we may not realize the anticipated benefits of such collaborations or alliances. We may continue to form collaborations or alliances in the future with respect to any of our current or future product candidates, but may be unable to do so or to realize the potential benefits of such transactions, which may cause us to alter or delay our development and commercialization plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We face significant competition from entities that have made substantial investments into developing novel treatment for patients with obesity and overweight, including large pharmaceutical companies with approved therapies in our current indications, and biopharmaceutical, specialty pharmaceutical and biotechnology companies developing novel treatments and technology platforms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Any product candidates for which we intend to seek approval as biologic products may face competition sooner than anticipated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our success is dependent on our ability to attract and retain highly qualified management and other clinical and scientific personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•If we or our licensors are unable to obtain, maintain, defend and enforce patent or other intellectual property protection for any of our current or future product candidates or technology, or if the scope of the patent or other intellectual property protection obtained is not sufficiently broad, our competitors or other third parties could develop and commercialize products similar or identical to ours, and our ability to successfully commercialize any of our current or future product candidates may be adversely affected.

The risks described above should be read together with the text of the full risk factors described below in the section entitled "*Risk Factors*" and the other information set forth in this Quarterly Report, including our condensed consolidated financial statements and the related notes, as well as in other documents that we file with the Securities Exchange Commission (SEC). The risks summarized above or described in full below are not the only risks that we face. Additional risks and uncertainties not precisely known to us, or that we currently deem to be immaterial may also materially adversely affect our business, financial condition, results of operations and future growth prospects.

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**PART I—FINANCIAL INFORMATION**

**Item 1. Financial Statements.**

**METSERA, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(In thousands, except share and per share data)**

***(Unaudited)***

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $448461 | $352447 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 12949 | 6686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 461410 | 359133 |
| Property and equipment, net | 228 | 57 |
| Operating lease right-of-use asset | 413 | 1385 |
| Intangible assets | 73249 | 68521 |
| Goodwill | 23402 | 21892 |
| Other assets | 8942 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $567644 | $450988 |
| **Liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $20226 | $20837 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 40301 | 17877 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable with related parties | 2406 | 8387 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due to related parties | 213 | 392 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, current | 367 | 714 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent consideration, current | 44981 | 19100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 108494 | 67307 |
| Deferred tax liabilities | 8316 | 7780 |
| Operating lease liabilities, noncurrent | 64 | 701 |
| Contingent consideration, noncurrent | 113580 | 87850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 230454 | 163638 |
| Redeemable convertible preferred stock, par value $0.00001 per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Series Seed redeemable convertible preferred stock: no shares and 36,599,998 shares authorized as of September 30, 2025 and December 31, 2024, respectively; no shares and 36,599,998 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively (Liquidation value of $54,900 at December 31, 2024) |  | 54815 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series A redeemable convertible preferred stock: no shares and 79,999,993 shares authorized as of September 30, 2025 and December 31, 2024, respectively; no shares and 79,999,993 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively (Liquidation value of $240,000 at December 31, 2024) |  | 239752 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series A-1 redeemable convertible preferred stock: no shares and 9,696,970 shares authorized as of September 30, 2025 and December 31, 2024, respectively; no shares and 9,696,970 shares issued and outstanding as of September 30, 2025 and December 31, 2024 (Liquidation value of $32,000 at December 31, 2024) |  | 31931 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series B redeemable convertible preferred stock: no shares and 42,658,718 shares authorized as of September 30, 2025 and December 31, 2024, respectively; no shares and 42,658,718 shares issued and outstanding as of September 30, 2025 and December 31, 2024 (Liquidation value of $215,000 at December 31, 2024) |  | 214359 |
| Commitments and contingencies (Note 7) |  |  |
| Stockholders' equity (deficit): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, par value $0.00001 per share: 10,000,000 shares and no shares authorized as of September 30, 2025 and December 31, 2024, respectively; no shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value $0.00001 per share: 800,000,000 and 72,348,953 shares authorized as of September 30, 2025 and December 31, 2024, respectively; 105,152,658 and 15,368,385 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively. | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 845316 | 2479 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | 10554 | 1160 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (518681) | (257146) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity (deficit) | 337190 | (253507) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $567644 | $450988 |

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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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**METSERA, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

**(In thousands, except share and per share data)**

***(Unaudited)***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months<br>ended September 30,** | **For the three months<br>ended September 30,** | **For the nine months<br>ended September 30,** | **For the nine months<br>ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquired in-process research and development | $— | $— | $— | $90 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 63684 | 29932 | 181381 | 68600 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 15034 | 7341 | 35119 | 17059 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration | 43365 | 73992 | 56515 | 74584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 122083 | 111265 | 273015 | 160333 |
| Loss from operations | (122083) | (111265) | (273015) | (160333) |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (8) | (79) | (148) | (106) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange gain (loss) | 1023 | (95) | (3524) | (113) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 4836 | 1401 | 15152 | 3357 |
| Loss before income taxes | (116232) | (110038) | (261535) | (157195) |
| Income tax benefit |  | 390 |  | 939 |
| Net loss | $(116232) | $(109648) | $(261535) | $(156256) |
| Net loss per share of common stock, basic and diluted | $(1.11) | $(7.56) | $(2.76) | $(10.98) |
| Weighted-average shares of common stock outstanding, basic and diluted | 105030422 | 14503372 | 94879307 | 14232399 |
| Comprehensive loss: |  |  |  |  |
| Net loss | $(116232) | $(109648) | $(261535) | $(156256) |
| Other comprehensive income (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | (3007) | 4345 | 9394 | 3820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) | (3007) | 4345 | 9394 | 3820 |
| Comprehensive loss | $(119239) | $(105303) | $(252141) | $(152436) |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**METSERA, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE** 

**PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)**

**(In thousands, except share data)**

***(Unaudited)***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Redeemable** | **Redeemable** |  |  |  | **Accumulated** |  |  |
|  | **convertible** | **convertible** |  |  | **Additional** | **other** |  | **Total** |
|  | **preferred stock** | **preferred stock** | **Common stock** | **Common stock** | **paid-in** | **comprehensive** | **Accumulated** | **stockholders'** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **capital** | **income (loss)** | **deficit** | **equity (deficit)** |
| Balance at December 31, 2024 | 168955679 | $540857 | 15368385 | $— | $2479 | $1160 | $(257146) | $(253507) |
| &nbsp;&nbsp;&nbsp;&nbsp;Conversion of redeemable convertible preferred stock | (168955679) | (540857) | 71904475 | 1 | 540856 |  |  | 540857 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock upon initial public offering, net of offering costs |  |  | 17569444 |  | 288411 |  |  | 288411 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock under equity incentive plans related to vesting of restricted stock units |  |  | 22610 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of common stock options |  |  | 5319 |  | 19 |  |  | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  |  |  | 2088 |  |  | 2088 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment |  |  |  |  |  | 4107 |  | 4107 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  |  |  |  | (76588) | (76588) |
| Balance at March 31, 2025 |  | $— | 104870233 | $1 | $833853 | $5267 | $(333734) | $505387 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock under equity incentive plans related to vesting of restricted stock units |  |  | 22608 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  |  |  | 4266 |  |  | 4266 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment |  |  |  |  |  | 8294 |  | 8294 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  |  |  |  | (68715) | (68715) |
| Balance at June 30, 2025 |  | $— | 104892841 | $1 | $838119 | $13561 | $(402449) | $449232 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock under equity incentive plans related to vesting of restricted stock units |  |  | 22609 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of common stock options |  |  | 237208 |  | 456 |  |  | 456 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  |  |  | 6741 |  |  | 6741 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment |  |  |  |  |  | (3007) |  | (3007) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  |  |  |  | (116232) | (116232) |
| Balance at September 30, 2025 |  | $— | 105152658 | $1 | $845316 | $10554 | $(518681) | $337190 |
|  | **Redeemable** | **Redeemable** |  |  |  | **Accumulated** |  |  |
|  | **convertible** | **convertible** |  |  | **Additional** | **other** |  | **Total** |
|  | **preferred stock** | **preferred stock** | **Common stock** | **Common stock** | **paid-in** | **comprehensive** | **Accumulated** | **stockholders'** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **capital** | **income (loss)** | **deficit** | **equity (deficit)** |
| Balance at December 31, 2023 | 66266662 | $143683 | 13831417 | $— | $85 | $2752 | $(48019) | $(45182) |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of Series A convertible preferred stock, net of issuance costs | 14499999 | 43387 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock under equity incentive plans related to vesting of restricted stock units |  |  | 478777 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  |  |  | 79 |  |  | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment |  |  |  |  |  | (631) |  | (631) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  |  |  |  | (19880) | (19880) |
| Balance at March 31, 2024 | 80766661 | $187070 | 14310194 | $— | $164 | $2121 | $(67899) | $(65614) |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock under equity incentive plans related to vesting of restricted stock units |  |  | 148510 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  |  |  | 381 |  |  | 381 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment |  |  |  |  |  | 106 |  | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  |  |  |  | (26728) | (26728) |
| Balance at June 30, 2024 | 80766661 | $187070 | 14458704 | $— | $545 | $2227 | $(94627) | $(91855) |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of Series A convertible preferred stock, net of issuance costs | 35833330 | 107497 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of Series A-1 convertible preferred stock, net of issuance costs | 9696970 | 31931 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock under equity incentive plans related to vesting of restricted stock units |  |  | 126344 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  |  |  | 449 |  |  | 449 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment |  |  |  |  |  | 4345 |  | 4345 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  |  |  |  | (109648) | (109648) |
| Balance at September 30, 2024 | 126296961 | $326498 | 14585048 | $— | $994 | $6572 | $(204275) | $(196709) |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**METSERA, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In thousands)**

***(Unaudited)***

---

| | | |
|:---|:---|:---|
|  | **For the nine months<br>ended September 30,** | **For the nine months<br>ended September 30,** |
|  | **2025** | **2024** |
| Operating activities: |  |  |
| Net loss | $(261535) | $(156256) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 28 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash interest expense | 8 | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 13095 | 909 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration | 56515 | 74584 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit |  | (939) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash lease expense | (12) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (6255) | (1775) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (8942) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (619) | 7195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 22232 | 12093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related parties | (125) | 411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of contingent consideration | (9444) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (195054) | (63665) |
| Investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (198) | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (198) | (42) |
| Financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of convertible preferred stock, net of offering costs paid |  | 182815 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of common stock in initial public offering, net of offering costs paid | 288411 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the exercise of common stock options | 474 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlement of deferred payment related to the acquisition of Zihipp, Ltd. |  | (515) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of contingent consideration | (1383) | (6264) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 287502 | 176036 |
| Effect of exchange rates on cash and cash equivalents | 3764 | 70 |
| Net increase in cash and cash equivalents | 96014 | 112399 |
| Cash and cash equivalents, beginning of the period | 352447 | 75195 |
| Cash and cash equivalents, end of the period | $448461 | $187594 |
| Supplemental cash flow disclosures: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $207 | $— |
| Supplemental non-cash financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock upon conversion of convertible preferred stock | $540856 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of related party note to settle contingent consideration | $2398 | $5925 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**METSERA, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**1. Organization, Liquidity and Risk**

Unless the context otherwise requires, references in these notes to "Metsera," "the Company," "we," "us" and "our" and any related terms are intended to mean Metsera, Inc. and its consolidated subsidiaries.

***Organization***

Metsera, Inc., a Delaware corporation, was incorporated in June 2022 and is a clinical-stage biotechnology company developing next-generation injectable and oral nutrient stimulated hormone (NuSH) analog peptides to treat obesity, overweight and related conditions. We have developed and are implementing proprietary methods and platform technologies to advance a broad, scalable and combinable portfolio of injectable and oral NuSH analog peptides with the potential to not only address the limitations of approved therapies, but also many of the anticipated limitations of next-generation therapies in development. We use our proprietary MINT peptide library of NuSH analog peptides alongside our Half-life Augmentation by Lipid Optimization (HALO) half-life extending platform and our MOMENTUM oral NuSH analog peptide delivery platform to deliver highly differentiated product candidates that we are advancing into clinical trials for obesity, overweight and other related conditions.

*Initial Public Offering (IPO)*

In February 2025, we completed our IPO in which we sold 17,569,444 shares of our common stock at a public offering price of $18.00 per share. We received net proceeds of $288.4 million after deducting underwriting discounts, commissions and other offering expenses.

*The Merger*

On September 21, 2025, we entered into an Agreement and Plan of Merger (the Original Merger Agreement) with Pfizer, Inc. (Pfizer), a Delaware corporation, and Mayfair Merger Sub, Inc. (Merger Sub), a Delaware corporation and a wholly owned subsidiary of Pfizer, pursuant to which, and on the terms and subject to the conditions thereof, at the effective time of the Merger (the Effective Time), Merger Sub will merge with and into Metsera, with Metsera surviving as a wholly owned subsidiary of Pfizer, which we refer to as the Merger. On November 7, 2025, we entered into Amendment No. 1 to the Original Merger Agreement (the Amendment) with Pfizer and Merger Sub, which amends the Original Merger Agreement (as amended, supplemented and otherwise modified from time to time, the Merger Agreement).

Under the terms of the proposed transaction, among other things, Pfizer has agreed to acquire all outstanding shares of Metsera for (A) $65.60 per share in cash plus (B) one contractual contingent value right representing the right to receive contingent payments (a CVR) in cash upon the achievement of certain specified milestones. The boards of directors of both Metsera and Pfizer have approved the transaction. This transaction is expected to close in the last quarter of 2025, subject to regulatory approvals and other customary closing conditions.

***Liquidity and Risk***

We incurred losses and negative operating cash flows since our inception and have an accumulated deficit of $518.7 million as of September 30, 2025. During the three and nine months ended September 30, 2025, we incurred a net loss of $116.2 million and $261.5 million, respectively, and for the nine months ended September 30, 2025, we had negative operating cash flows of $195.1 million. We anticipate incurring additional losses until such time, if ever, that we can generate significant sales of our product candidates currently in development. Substantial additional financing will be needed to fund our operations and to commercially develop our product candidates, if approved. No assurance can be given that any such financing will be available when needed or that our research and development efforts will be successful.

Since our inception in June 2022, we have funded our operations through the issuance of shares of our redeemable convertible preferred stock, convertible notes in private placements and common stock issued during our IPO completed in February 2025. As of September 30, 2025, we had cash and cash equivalents of $448.5 million. We believe the available cash and cash equivalents as of September 30, 2025, will enable us to fund our operating expense and capital expenditure requirements through at least 12 months from the issuance date of these financial statements.

------

**2. Basis of Presentation and Significant Accounting Policies**

***Basis of Presentation***

Our unaudited condensed consolidated financial statements include those of Metsera, Inc. and its wholly owned subsidiaries, Zihipp Ltd. and Zihipp Inc. (collectively, Zihipp) that were acquired in September 2023 (refer to Note 3, *Acquisition of Zihipp Ltd.*). All significant intercompany account balances and transactions have been eliminated upon consolidation.

The accompanying unaudited condensed consolidated financial statements and notes hereto have been prepared in conformity with the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial reporting and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) as set forth in the Financial Accounting Standards Board's (FASB) accounting standards codification.

These unaudited condensed consolidated financial statements have been prepared on the same basis as, and should be read in conjunction with, our audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2024 (our Annual Report), as filed with the SEC on March 26, 2025. In the opinion of management, our unaudited condensed consolidated financial statements include all normal and recurring adjustments that are considered necessary to present fairly our financial position, results of operations and cash flows for the interim periods presented. Operating results for the three and nine months ended September 30, 2025, are not considered necessarily indicative of the results that may be expected for the year ending December 31, 2025, for any other interim period or for any other future year.

Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification (ASC) and the Accounting Standards Updates (ASU) of the FASB and SEC.

*Reverse Stock Split*

In January 2025, our board of directors approved an amendment to our certificate of incorporation providing for a 2.349723-for-1 reverse stock split of our issued and outstanding common stock. The reverse stock split became effective on January 27, 2025. The accompanying unaudited condensed consolidated financial statements and notes herein give retroactive effect to the reverse stock split for all periods presented. Refer to Note 8, *Convertible Preferred Stock and Stockholders' Equity (Deficit)*, for additional details.

***Significant Accounting Policies***

There have been no significant changes to our significant accounting policies described in Note 2, *Basis of Presentation and Significant Accounting Policies*, of our audited consolidated financial statements within our Annual Report.

*Segment Information* 

We operate and manage our business as a single operating segment for the purposes of assessing performance and making operating decisions. Our current focus is on the development of clinical and preclinical product candidates focused on developing next-generation injectable and oral nutrient stimulated hormone, analog peptides to treat obesity, overweight and related conditions. We have one reportable segment. The determination of reportable segments is based on our chief operating decision maker's (CODM) use of financial information provided for the purpose of assessing performance and making operating decisions. Our CODM is our Chief Executive Officer.

The CODM assesses performance for the segment based on net loss. The measure of segment assets is reported on the accompanying condensed consolidated balance sheets as total assets.

To date, we have not generated any product revenue. We expect to continue to incur significant expenses and operating losses for the foreseeable future as we advance our product candidates through all stages of development and clinical trials and, ultimately, seek regulatory approval. As such, our CODM uses cash forecast models in deciding how to invest into the segment. Such cash forecast models are reviewed to assess the entity-wide operating results and performance. Net loss is used to monitor budget versus actual results. Monitoring budgeted versus actual results is used in assessing performance of the segment and in establishing management's compensation, along with cash forecast models.

------

The table below summarizes the significant expense categories regularly reviewed by our CODM for the three and nine months ended September 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months<br>ended September 30,** | **For the three months<br>ended September 30,** | **For the nine months<br>ended September 30,** | **For the nine months<br>ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Research and Development Programs: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MET-097i | $25618 | $11376 | $71080 | $20221 |
| &nbsp;&nbsp;&nbsp;&nbsp;MET-233i | 9884 | 4054 | 30449 | 10739 |
| &nbsp;&nbsp;&nbsp;&nbsp;Oral peptide platform | 4458 | 6570 | 22560 | 17919 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional key pipeline combinations with GLP-1 RA + amylin agonism | 3501 | 1310 | 11328 | 3174 |
| &nbsp;&nbsp;&nbsp;&nbsp;Development and discovery infrastructure | 20223 | 6622 | 45964 | 16547 |
| Personnel | 4516 | 1357 | 10075 | 2951 |
| Stock-based compensation included within general and administrative expenses | 3639 | 163 | 7258 | 318 |
| Professional fees and other | 6879 | 5821 | 17786 | 13790 |
| Acquired in-process research and development |  |  |  | 90 |
| Change in fair value of contingent consideration | 43365 | 73992 | 56515 | 74584 |
| Interest income | (4836) | (1401) | (15152) | (3357) |
| Other expense, net<sup>(a)</sup> | (1015) | 174 | 3672 | 219 |
| Loss before income taxes | 116232 | 110038 | 261535 | 157195 |
| Income tax benefit |  | (390) |  | (939) |
| Segment net loss | 116232 | 109648 | 261535 | 156256 |
| Reconciliation of profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments and reconciling items |  |  |  |  |
| Consolidated net loss | $116232 | $109648 | $261535 | $156256 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* Includes the change in interest expense and foreign exchange loss.

*Net Loss Per Share*

Basic net loss per share of common stock is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during each period. The weighted-average number of shares of common stock outstanding used in the basic net loss per share calculation does not include unvested restricted stock awards as these instruments are considered contingently issuable shares until they vest.

Diluted net loss per share of common stock includes the effect, if any, from the potential exercise or conversion of securities, such as convertible debt, redeemable convertible preferred stock, restricted stock awards and stock options, which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive. Our convertible preferred stock and unvested restricted stock entitles the holder to participate in our dividends and earnings, and, if we were to recognize net income, we would have to use the two-class method to calculate earnings per share. The two-class method is not applicable during periods with a net loss, as the holders of the convertible preferred stock and unvested restricted stock have no obligation to fund losses.

The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive:

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** | **As of September 30,** |
|  | **2025** | **2024** |
| Redeemable convertible preferred stock outstanding<sup>1</sup> |  | 126296961 |
| Unvested restricted stock awards outstanding | 140088 | 1267881 |
| Stock options outstanding | 12220686 | 6373042 |
|  | 12360774 | 133937884 |

---

<sup>1</sup>Amounts in the above table reflect redeemable convertible preferred stock outstanding as of September 30, 2024. These shares were converted on a 2.349723-for-1 basis immediately prior to the IPO. Refer to Note 8, *Convertible Preferred Stock and Stockholders' Equity (Deficit),* for additional information on conversion.

------

*Income Taxes*

We had no income tax benefit or expense for the three and nine months ended September 30, 2025. We had an income tax benefit of $0.4 million and $0.9 million for the three and nine months ended September 30, 2024, respectively. We continue to have a full valuation allowance for substantially all of our net deferred tax assets in the U.S. The tax benefit related to the three and nine months ended September 30, 2024, was the result of the net operating losses in the U.K. for the period for which a deferred tax asset was created and netted against the indefinite-lived deferred tax liability established upon the Zihipp acquisition in September 2023 as we expect the deferred tax liability will be a source of taxable income for purposes of determining the realization of the deferred tax asset related to net operating losses in the U.K. which have an unlimited carryforward.

The One Big Beautiful Bill Act (OBBBA) was enacted in the U.S. on July 4, 2025. The OBBBA legislation provides for the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, revisions to the international tax framework and the reinstatement of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented in future periods. Under U.S. GAAP, the effects of changes in tax laws are recognized in the period in which the new law is enacted. We are in the process of evaluating the legislation, however, it did not have a material impact on our condensed consolidated financial statements for the three and nine months ended September 30, 2025, as we maintain a valuation allowance against substantially all of our net deferred tax assets.

*Recently Issued Accounting Pronouncements*

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, we do not believe that the impact of recently issued standards that are not yet effective will have a material impact on our consolidated financial statements or related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, I*ncome Taxes (Topic 740): Improvements to Income Tax Disclosures* (ASU 2022-09). ASU No. 2023-09 is intended to improve income tax disclosure requirements by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) the disaggregation of income taxes paid by jurisdiction. The guidance makes several other changes to the income tax disclosure requirements. The guidance in ASU 2023-09 will be effective for annual reporting periods in fiscal years beginning after December 15, 2024. We currently evaluating the impact that the adoption of this pronouncement will have on our consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses* (ASU No. 2024-03). ASU No. 2024-03 is intended to improve expense disclosures by requiring disaggregation of specific expense categories in the notes to the financial statements and a qualitative description of the remaining expense amounts not separately disaggregated. The standard is effective for public business entities for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted, and entities may apply the standard prospectively or retrospectively. We are currently evaluating the impact of adopting this standard on our consolidated financial statements and related disclosures.

**3. Acquisition of Zihipp Ltd.**

On September 22, 2023 (the Closing Date), we entered into a share purchase agreement, as amended, with the selling shareholders holding the entire issued share capital of Zihipp, a biopharmaceutical company focused on the development of peptide hormones for use in novel therapeutics for the treatment of diabetes and obesity, pursuant to which we acquired 100% of the outstanding equity interests of Zihipp. Through Zhipp's exclusive licensing agreement with the Imperial College of London, Zihipp had rights to all patent applications and pre-clinical and clinical data packages for various programs associated with the license at the time of acquisition. The acquisition of Zihipp expanded our current pipeline of novel therapeutics for obesity and diabetes.

The acquisition of Zihipp involved upfront and deferred cash payments totaling $34.3 million and contingent consideration with an estimated fair value of $42.9 million at the time of acquisition. Contingent consideration is comprised of future potential development, regulatory, commercial and joint venture (JV) milestone payments as well as royalties on net product sales and out-licensed intellectual property. Under the terms of the agreement, we are obligated to make the following payments: (i) payments on the first achievement of certain development milestones of up to $52.5 million, with additional payment(s) of $27.5 million upon achieving certain other development milestones, in each case; (ii) payments on the first achievement of certain regulatory milestones of up to $30.0 million, plus (a) $30.0 million and/or (b) $10.0 million upon achieving certain other regulatory milestones, in each case, as applicable, provided that (a) and (b) occur within 15 years from the Closing Date; (iii) commercial milestone payment(s) of $5.0 million upon achieving certain commercial milestone events, in each case; and (iv) JV milestone payments of up to $35.0 million as a result of certain royalties, milestones, dividends, sales or other interests and irrevocable consideration payments received from SanPlena LLC. In September 2025 the sublicense agreement between Zihipp and SanPlena LLC was terminated and the members of SanPlena LLC have executed a written consent to wind down SanPlena LLC. Therefore, no JV milestone payments will be payable.

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In addition, the former Zihipp shareholders are entitled to low-single digit royalties on net product sales and low-single to mid-teen digit payment of net receipts on non-royalty license income at certain milestone events for out-licensed intellectual property. The royalty term shall terminate on a Licensed Product-by-Licensed Product and country-by-country basis on the latest of (i) the 10-year anniversary of the first commercial sale of such Licensed Product in such country, (ii) the expiration of any regulatory exclusivity period that covers such Licensed Product in such country, and (iii) the expiration of our last-to-expire licensed patent or a jointly owned patent that covers such the Licensed Product in such country.

As a result of certain development milestones being achieved in previous periods or in the current period under the agreement, we paid $2.5 million and $11.0 million during the three and nine months ended September 30, 2025, respectively. The payments related to the nine months ended September 30, 2025, were comprised of cash consideration of $2.5 million and notes payable to related parties with principal balances of $8.3 million and accrued interest through the payment date of $0.2 million. In addition, as of September 30, 2025, we had notes payable to former Zihipp Ltd. shareholders with principal balances of $2.4 million and accrued interest of $7.9 thousand. For additional information related to our acquisition of Zihipp, please refer to Note 4, *Acquisition of Zihipp Ltd.*, to our audited consolidated financial statements included in our Annual Report.

**4. Licensing Agreements**

***D&D Pharmatech Inc. License and Collaboration Agreement***

In April 2023, we entered into a license and collaboration agreement with D&D Pharmatech Inc. (D&D), which was amended in May 2023, and further amended in March 2024 (the License Agreement). We were granted an exclusive, worldwide, sublicensable license to exploit licensed compounds and products under the licensed technology.

Simultaneously with the License Agreement, we entered into a separate Research and Collaboration Agreement with D&D's affiliate, Neuraly Inc. (Neuraly). Under this arrangement, Neuraly is responsible for the preclinical development of certain Licensed Products, defined within the agreement, while we will manage all other development activities as specified in the Research Plans.

Upon execution of the agreement, we were required to pay D&D an upfront fee of $10.0 million. Additionally, we are also required to make payments to D&D up to an aggregate of $123.0 million upon the achievement of various development and regulatory milestones, up to an aggregate of $337.5 million in commercial milestones and low-single to low double digit royalties on net product sales of the licensed technology. We are eligible to receive non-royalty sublicense income and the contingent payments under the agreement are structured as loan notes with 12 months' interest.

During the three months ended September 30, 2025, we made no payments under the D&D agreements. During the nine months ended September 30, 2025, we made a payment of $2.0 million related to certain development milestones that were achieved under the D&D agreements in November 2024 that was previously recognized within research and development expense within our statement of operations and comprehensive loss for the year ended December 31, 2024, as well as within other current liabilities in our balance sheet as of December 31, 2024. No additional milestones were achieved under the License Agreement during the three and nine months ended September 30, 2025. No milestones were achieved or payments made during the three and nine months ended September 30, 2024.

During the three and nine months ended September 30, 2025, we recognized $1.1 million and $3.4 million, respectively, for full-time employee (FTE) expenses and the cost of reagents and raw materials related to Neuraly. During the three and nine months ended September 30, 2024, we recognized $2.0 million and $6.0 million, respectively, for full-time employee (FTE) expenses and the cost of reagents and raw materials related to Neuraly. In addition, during the nine months ended September 30, 2024, we recognized acquired in-process research and development expense of $0.1 million in connection with the upfront payments for the license acquired in the accompanying consolidated statements of operations and comprehensive loss. No amounts of acquired in-process research and development were recognized in the three and nine months ended September 30, 2025 or in the three months ended September 30, 2024.

For additional information related to our agreements with D&D, please refer to Note 8, *Licensing Agreements*, to our audited consolidated financial statements included in our Annual Report.

***Imperial College of Science, Technology and Medicine***

In connection with the acquisition of Zihipp in September 2023, we acquired an exclusive intellectual property license agreement with the Imperial College of Science, Technology and Medicine (Imperial), whereby Imperial granted us an exclusive license for the development and commercialization of the licensed products (the Imperial Agreement).

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Pursuant to the Imperial Agreement, Imperial is eligible to receive up to £20.5 million (approximately $27.5 million at an exchange rate of 1.34 as of September 30, 2025) upon the achievement of certain development and regulatory milestones primarily based on the initiation of clinical trial phases and regulatory approval. In addition, we are obligated to pay Imperial low-single digit percentage royalties on net sales on a country-by-country and product-by-product basis and mid-single digit to mid-teen percentage of net receipts from sublicenses. In addition, we are obligated to reimburse Imperial for annual patent related costs incurred related to the licensed technology.

No development milestones related to the Imperial Agreement were achieved during the three and nine months ended September 30, 2025 and 2024 and as such, no amounts were included in research and development or accrued expenses and other current liabilities for the comparative periods. For additional information related to our agreement with Imperial, please refer to Note 8, *Licensing Agreements*, to our audited consolidated financial statements included in our Annual Report.

***Amneal Agreements***

In September 2024, we executed two contracts (the Amneal Agreements) with affiliates of Amneal Pharmaceuticals Inc. (collectively, Amneal), including a license agreement and a development and supply agreement.

Under the license agreement, Amneal received an exclusive license to manufacture and commercialize our drug product candidate(s) (Product(s)) after our regulatory approval in certain emerging markets in South and Southeast Asia, North Africa and the Middle East (Territory). We will receive royalties calculated as a high single-digit percentage of Amneal's gross profits from Product(s) sales.

Under the development and supply agreement, Amneal will initially provide research services related to Product(s) development. The parties are constructing a new manufacturing facility in India (New Facility) that Amneal will own, operate, and control during the construction. We are required to finance the construction of the New Facility based on the percentage of the actual costs incurred and subject to an aggregate cap of $100.0 million. Under the development and supply agreement, our contribution to the New Facility construction costs is capped at $100.0 million unless we subsequently change the initial specifications for the New Facility.

During the three and nine months ended September 30, 2025, we recorded $7.3 million and $8.9 million related to the construction of the New Facility, which was included in other assets within our condensed consolidated balance sheets as of September 30, 2025. For additional information related to our agreements with Amneal, please refer to Note 8, *Licensing Agreements*, to our audited consolidated financial statements included in our Annual Report.

**5. Fair Value Measurements**

We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We determine fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Level 2 Inputs: Observable inputs other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

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The following table presents our assets and liabilities that are measured at fair value on a recurring basis:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of September 30, 2025** | **As of September 30, 2025** | **As of September 30, 2025** | **As of September 30, 2025** |
| ***(In thousands)*** | **Level 1** | **Level 2** | **Level 3** | **Total Fair Value** |
| Assets: |  |  |  |  |
| Cash equivalents: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Money Market Funds | $57769 | $— | $— | $57769 |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of Deposit |  | 25000 |  | 25000 |
| Total Assets | $57769 | $25000 | $— | $82769 |
| Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent consideration - current and noncurrent | $— | $— | $158561 | $158561 |
| Total liabilities | $— | $— | $158561 | $158561 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| ***(In thousands)*** | **Level 1** | **Level 2** | **Level 3** | **Total Fair Value** |
| Assets: |  |  |  |  |
| Cash equivalents: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market funds | $55954 | $— | $— | $55954 |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit |  | 100000 |  | 100000 |
| Total assets | $55954 | $100000 | $— | $155954 |
| Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent consideration - current and noncurrent | $— | $— | $106950 | $106950 |
| Total liabilities | $— | $— | $106950 | $106950 |

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We have not recognized any impairments of our assets measured and carried at fair value during the three and nine months ended September 30, 2025. There have been no changes in valuation techniques, inputs utilized or transfers between fair value measurement levels in the periods presented. Our certificates of deposit are held at amortized cost which approximate their fair value based on Level 2 inputs due to their short-term nature.

As of September 30, 2025, our contingent consideration liabilities represented our only Level 3 assets or liabilities carried at fair market value. Changes in the fair value remeasurement of our contingent consideration liabilities can result from changes in one or multiple inputs, including adjustments to discount rates, changes in the expected achievement or timing of any development, regulatory, commercial or royalty-based milestones, changes in the amount or timing of expected future net cash flows, changes in the probability or timing of certain events. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. The following table provides a roll forward of our total contingent consideration liabilities that are categorized within Level 3 of the fair value hierarchy for the nine months ended September 30, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **Contingent** |  |
| ***(In thousands)*** | **consideration** | **Total** |
| Balance at December 31, 2024 | $106950 | $106950 |
| Change in fair value | 56515 | 56515 |
| Settlements | (4904) | (4904) |
| Balance at September 30, 2025 | $158561 | $158561 |

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| | | |
|:---|:---|:---|
|  | **Contingent** |  |
| ***(In thousands)*** | **consideration** | **Total** |
| Balance at December 31, 2023 | $45800 | $45800 |
| Change in fair value | 74584 | 74584 |
| Settlements | (12189) | (12189) |
| Balance at September 30, 2024 | $108195 | $108195 |

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***Contingent Consideration***

Contingent consideration represents future potential milestone and royalty payment obligations in connection with the acquisition of Zihipp. At the time of achievement of certain milestones, payments of contingent consideration can be made in cash or notes payable can be issued for future payments that accrue interest based on the terms and conditions within the agreement. The fair value of the contingent consideration totaled $42.9 million at the time of acquisition and was estimated based on the probability of milestone achievement and an estimated discount rate. Refer to Note 3, *Acquisition of Zihipp Ltd.*, for additional information on the contingent consideration payments made during three and nine months ended September 30, 2025.

The change in fair value in contingent consideration during the three and nine months ended September 30, 2025, was primarily attributable to increases in the probability of achievement of various milestones. The change in fair value in contingent consideration during the year ended December 31, 2024, was primarily attributable to the pursuit of a new product, increase in the probability of success as well as the time value and related accretion.

The following table includes quantitative information about the significant unobservable inputs for the components of the our contingent consideration liabilities as of the periods indicated:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
| Development Milestones |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Probability of achievement | 17.9% - 100.0% | n/a - 75.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount rate | 9.4% - 9.6% | 9.0% - 9.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected years until payment | 0.2 - 3.7 | 0.8 - 4.1 |
| Regulatory Milestones |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Probability of achievement | 1.2% - 71.3% | 2.4% - 56.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount rate | 9.5% - 10.2% | 9.2% - 10.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected years until payment | 2.1 - 7.2 | 2.5 - 7.6 |
| Commercial Milestones |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Probability of achievement | 11.9% - 67.7% | 14.4% - 53.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount rate | 9.5% - 10.0% | 9.4% - 10.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected years until payment | 3.1 - 6.2 | 3.5 - 6.6 |
| Royalties on Net Sales |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Probability of achievement | 0.3% - 28.9% | 2.0% - 33.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount rate | 9.6% - 11.5% | 9.5% - 11.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected years until payment | 3.5 - 19.5 | 4.3 - 20.3 |

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**6. Balance Sheet Components**

Prepaid expenses and other current assets consist of the following:

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| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **September 30,** | **December 31,** |
| ***(In thousands)*** | **2025** | **2024**<sup>(a)</sup> |
| Prepaid research and development costs | $9712 | $1690 |
| Deferred financing fees |  | 3046 |
| Prepaid insurance | 509 | 63 |
| Other prepaid expenses | 437 | 303 |
| Other current assets | 2291 | 1584 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total prepaid expenses and other current assets | $12949 | $6686 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Certain prior period amounts have been reclassified to conform with current period presentation.

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Accrued expenses and other current liabilities consist of the following:

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| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **September 30,** | **December 31,** |
| ***(In thousands)*** | **2025** | **2024** |
| Employee compensation and related benefits | $11198 | $5815 |
| Research and development | 25253 | 9680 |
| Professional services and other general and administrative | 3440 | 1972 |
| Deferred tax credits | 410 | 410 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total accrued expenses and other current liabilities | $40301 | $17877 |

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**7. Commitments and Contingencies**

***Litigation***

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Except as described below, we were not subject to any material legal proceedings as of September 30, 2025, and, to the best of its knowledge, no material legal proceedings are currently pending or threatened.

*Litigation Related to the Merger*

As of the date hereof, Metsera has received demand letters from purported stockholders, and complaints have been filed in the New York Supreme Court by purported stockholders against Metsera, alleging deficiencies and/or omissions in the proxy statement that Metsera filed on October 17, 2025. *See Hamilton* v. *Metsera, Inc., et al.*, No. 659304/2025; *Johnson* v. *Metsera, Inc., et al.*, No. 659274/2025; *Lacoff* v. *Bernard, et al.*, No. 74603/2025. The complaints seek an injunction of the transaction, declaratory relief, actual and punitive damages, attorneys' fees and expenses, expert fees and other expenses, and other relief the Court may find just and proper. Metsera believes that the allegations in these demand letters and complaints are without merit.

Potential plaintiffs may file additional lawsuits or send additional demand letters in connection with the Merger. The outcome of any future litigation is uncertain. Such litigation, if not resolved, could prevent or delay consummation of the Merger and result in substantial costs to Metsera including any costs associated with the indemnification of directors and officers. One of the conditions to the consummation of the Merger is that no legal restraints preventing or prohibiting the consummation of the Merger shall be in effect at the time of Closing. Therefore, if a plaintiff were successful in obtaining an injunction prohibiting the consummation of the Merger on the agreed-upon terms, then such injunction may prevent the Merger from being consummated, or from being consummated within the expected time frame.

On October 31, 2025, Pfizer filed a five-count Complaint in the Delaware Court of Chancery against the Company, Novo Nordisk A/S (which we refer to as "Novo Nordisk"), NN US Invest, Inc., Novo Nordisk US Research Investment Holdings, Inc. (which we refer to together with Novo Nordisk and NN US Invest, Inc. as the "Novo Nordisk Defendants"), and our board of directors. *See Pfizer* v. *Metsera, Inc., et al.*, 2025-1259-MTZ. The Complaint seeks declaratory judgments regarding the interpretation of certain terms in the Merger Agreement. The Complaint asserts a claim for breach of the Merger Agreement against the Company; asserts a claim of tortious interference against the Novo Nordisk Defendants; and asserts a claim of breach of fiduciary duty by the Company's board of directors. The Complaint seeks declaratory relief, specific performance, injunctive relief, costs and expenses, and any other relief the Court deems just and proper. On the same day, Pfizer also filed a motion seeking a Temporary Restraining Order (which we refer to as the "TRO" or "TRO motion") to stop the termination of the Merger Agreement. On November 3, 2025, the Company and Novo Nordisk filed separate briefs opposing the TRO. On November 4 and 5, 2025, the Court held telephonic hearings regarding the TRO motion. At the conclusion of the November 5, 2025 hearing, the Court ruled from the bench in favor of the Company and denied the TRO. Metsera and our board deny the claims in this Complaint as to them, and believe that the allegations therein with respect to Metsera and our board are covered by releases contained in the Amendment.

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On November 3, 2025, Pfizer filed a four-count Complaint in the United States District Court for the District of Delaware against the Company, the Novo Nordisk Defendants, ARCH Venture Fund XII, L.P., ARCH Venture Fund XIII, L.P., Validae Health, L.P., and Population Health Partners GP, LLC. *See Pfizer Inc.* v. *Novo Nordisk A/S, et al.*, 25-cv-01339. The Complaint asserts claims against all defendants for unlawful conspiracy under Section 1 of the Sherman Act and for conspiracy to monopolize in violation of Section 2 of the Sherman Act for the Novo Nordisk transaction; asserts a claim for attempted monopolization in violation of Section 2 of the Sherman Act against the Novo Nordisk Defendants; and asserts a claim for unlawful merger in violation of Section 7 of the Clayton Act against the Novo Nordisk Defendants and the Company. The Complaint seeks injunctive relief and damages on all counts, treble damages, pre- and post-judgment interest, attorneys' fees and costs, and any other relief that the Court deems just and proper. Metsera and our board deny the claims in this Complaint as to them, and believe that the allegations therein with respect to Metsera, ARCH Venture Fund XII, L.P., ARCH Venture Fund XIII, L.P., Validae Health, L.P., and Population Health Partners GP, LLC are covered by releases contained in the Amendment.

***Indemnification***

In the ordinary course of business, we may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, we have entered into indemnification agreements with officers and members of the Board that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. As of September 30, 2025 and December 31, 2024, we had not experienced any losses related to these indemnification obligations and no claims with respect thereto were outstanding.

***Contingent Consideration***

In connection with the acquisition of Zihipp the Company is subject to contingent milestone payments and future royalty payments on net product sales. Refer to Note 3, *Acquisition of Zihipp Ltd.*, for additional information on the contingent consideration payments made during three and nine months ended September 30, 2025.

***Obligations Contingent upon the Merger*** 

We may be obligated to make significant contingent payments upon the consummation of the Merger. As the Merger was not deemed to be probable of being achieved as of September 30, 2025, we have not accrued any liabilities related to such contingent obligations in our condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024.

**8. Convertible Preferred Stock and Stockholders' Equity (Deficit)**

***Convertible Preferred Stock***

In May and June 2023, we sold an aggregate of 23,266,665 shares of Series Seed convertible preferred stock at a purchase price of $1.50 per share and received $34.8 million in net proceeds. In May 2023, we issued an additional 13,333,333 shares of our Series Seed convertible preferred stock related to the settlement and conversion of the outstanding principal balance of our promissory note.

In August and October 2023, we sold an aggregate of 29,666,664 shares of our Series A convertible preferred stock at a purchase price of $3.00 per share and received $88.9 million in net proceeds. Pursuant to the August 2023 Series A Stock Purchase Agreement, the Series A investors were required to purchase an additional 35,833,330 shares of Series A convertible preferred stock at the original purchase price of $3.00 per share.

During March 2024, we sold an additional 14,499,999 shares our Series A convertible preferred stock at a purchase price of $3.00 per share and received $43.4 million in net proceeds as part of an additional closing. During August 2024, we sold 35,833,330 shares of Series A convertible preferred stock, to existing Series A convertible preferred stock investors, at a purchase price of $3.00 per share and received $107.5 million in net proceeds in conjunction with a Second Tranche Closing of the Series A convertible preferred stock.

During August 2024, the Company sold 9,696,970 shares of its Series A-1 convertible preferred stock at a purchase price of $3.30 per share and received $31.9 million in net proceeds.

During November 2024, the Company sold 42,658,718 shares of its Series B convertible preferred stock at a purchase price of $5.04 per share and received $214.4 million in net proceeds.

Immediately prior to the closing of the IPO all of our outstanding shares of convertible preferred stock were converted on a 2.349723-for-1 basis into an aggregate of 71,904,475 shares of common stock. As of September 30, 2025, there were no shares of redeemable convertible preferred stock authorized, issued or outstanding. The following table depicts the conversion of convertible preferred stock to common stock prior to the closing of the IPO.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Authorized** | **Issued and<br>outstanding** | **Carrying<br>value** | **Liquidation<br>value** | **Common stock<br>issued upon<br>conversion** |
| **<u>Class</u>** |  |  |  |  |  |
| Series Seed | 36599998 | 36599998 | $54815 | $54900 | 15576298 |
| Series A | 79999993 | 79999993 | 239752 | 240000 | 34046558 |
| Series A-1 | 9696970 | 9696970 | 31931 | 32000 | 4126854 |
| Series B | 42658718 | 42658718 | 214359 | 215000 | 18154765 |
|  | 168955679 | 168955679 | $540857 | $541900 | 71904475 |

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***Preferred Stock***

Pursuant to the terms of the amended and restated certificate of incorporation, we have 10,000,000 authorized shares of preferred stock, par value $0.00001 per share, all of which shares of preferred stock are undesignated. Our board of directors or any authorized committee thereof is expressly authorized, without further action by our stockholders, to issue such shares of preferred stock from time to time on terms it may determine, to divide shares of preferred stock into one or more series and to fix the designations, preferences, privileges and restrictions of preferred stock. There were no issued and outstanding shares of preferred stock as of September 30, 2025 and December 31, 2024.

***Common Stock***

Pursuant to the terms of the amended and restated certificate of incorporation, we have 800,000,000 authorized shares of common stock, par value $0.00001 per share. There were 105,152,658 and 15,368,385 shares of common stock issued and outstanding as of September 30, 2025 and December 31, 2024, respectively.

The holders of the common stock are entitled to one vote for each share of common stock held of record by such holder on all matters voted upon by our stockholders. Except as otherwise required by law, holders of common stock are not entitled to vote on any amendment to the restated certificate of incorporation that relates solely to the rights, powers, preferences or other terms of one or more outstanding series of preferred stock if the holders of such affected series are entitled and there is no cumulative voting.

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, subject to the rights and preferences of any holders of any shares of any outstanding series of preferred stock, the funds and assets available for distribution to the stockholders will be distributed among the holders of shares of common stock, pro rata based on the number of shares of common stock held by each such holder.

&nbsp;&nbsp;&nbsp;&nbsp;**9. Stock-based Compensation** 

***Equity Incentive Plans***

In the first quarter of 2025, we adopted the 2025 Incentive Award Plan (the 2025 Plan), in order to facilitate the issuance of stock-based compensation awards and cash-based performance bonus awards to attract, retain and motivate selected employees, consultants and directors. Concurrently, we adopted and the stockholders approved the 2025 Employee Stock Purchase Plan (the ESPP), which became effective upon the day prior to the first public trading date of the Company's common stock. The ESPP provides employees with an opportunity to acquire shares of common stock at a discounted price. No awards have been granted under the ESPP as of September 30, 2025.

Prior to the 2025 Plan, we granted awards under the 2023 Stock Equity Incentive Plan (the 2023 Plan), which was adopted in May of 2023. Following the effective date of the 2025 Plan, no further awards will be granted under the 2023 Plan, however, the 2023 Plan continues to govern the terms and conditions of all outstanding awards granted under it.

***Stock-based Compensation***

We recorded stock-based compensation expense in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months<br>ended September 30,** | **For the three months<br>ended September 30,** | **For the nine months<br>ended September 30,** | **For the nine months<br>ended September 30,** |
| ***(In thousands)*** | **2025** | **2024** | **2025** | **2024** |
| Research and development | $3102 | $286 | $5837 | $591 |
| General and administrative | 3639 | 163 | 7258 | 318 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total stock-based compensation expense | $6741 | $449 | $13095 | $909 |

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*Stock Options*

Our stock options vest based on the terms in each award agreement, which is generally four years and have a contractual term of ten years. The following table summarizes the stock option activity for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Weighted** | **Weighted** |  |
|  |  | **average** | **average** |  |
|  | **Number** | **exercise** | **remaining** | **Aggregate** |
|  | **of** | **price** | **contractual** | **intrinsic value** |
|  | **shares** | **per share** | **term *(years)*** | ***(in millions)*** |
| Outstanding at December 31, 2024 | 8753069 | $4.50 | 9.4 | $32.2 |
| Granted | 3899809 | $26.81 |  |  |
| Exercised | (242527) | $1.96 |  |  |
| Forfeited | (189665) | $13.55 |  |  |
| Outstanding at September 30, 2025 | 12220686 | $11.53 | 9.0 | $498.6 |
| Vesting and exercisable at September 30, 2025 | 2870890 | $5.43 | 8.6 | $134.6 |

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The weighted-average grant date fair value of options granted was $20.05 and $2.87 per share for the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, the total unrecognized compensation expense related to unvested stock option awards was $88.7 million which we expect to recognize over a weighted-average period of approximately 3.3 years. Stock options granted during the nine months ended September 30, 2025, were inclusive of our annual long-term incentive awards, which were granted in May 2025.

The grant date fair value of each option grant was estimated using the Black-Scholes option-pricing model using the following weighted-average assumptions:

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| | | |
|:---|:---|:---|
|  | **For the nine months<br>ended September 30,** | **For the nine months<br>ended September 30,** |
|  | **2025** | **2024** |
| Expected term (in years) | 6.0 | 6.1 |
| Expected volatility | 87.0% | 81.5% |
| Risk-free interest rate | 4.1% | 3.9% |
| Expected dividend yield | 0.0% | 0.0% |

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*Performance-based Stock Options*

The table above includes 17,023 option awards that were forfeited during the nine months ended September 30, 2025, related to a non-employee. Vesting of the award was contingent upon meeting certain performance milestones that was not met during the vesting period. Compensation expense for performance-based stock options is only recognized when management determines it is probable that the awards will vest. As the award was never probable of vesting, no expense was recognized.

*Restricted Stock*

Upon approval by the board of directors, certain employees and advisors have purchased restricted shares of common stock. These shares of restricted stock are subject to repurchase rights. Accordingly, we have recorded the proceeds from the issuance of restricted stock as a liability in the balance sheets included as a component of accrued expenses or other long-term liabilities based on the scheduled vesting dates. The restricted stock liability is reclassified into stockholders' equity (deficit) as the restricted stock vests. A summary of the status of and changes in unvested restricted stock as of September 30, 2025, was as follows:

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| | | |
|:---|:---|:---|
|  |  | **Weighted** |
|  |  | **Average** |
|  | **Number** | **Grant Date** |
|  | **of** | **Fair Value** |
|  | **shares** | **Per Share** |
| Unvested Restricted Common Stock as of December 31, 2024 | 207915 | $0.0001 |
| Vested | (67827) | $0.0001 |
| Forfeitures |  | $— |
| Unvested Restricted Common Stock as of September 30, 2025 | 140088 | $0.0001 |

---

As of September 30, 2025 unrecognized stock-based compensation expense related to our unvested restricted stock awards was de minimis.

**10. Related Party Transactions**

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***Due to Validae Health, L.P. and Population Health Partners, L.P.***

We have a services arrangement with Validae Health, L.P., an Affiliate of Population Health Partners, L.P. (Validae Health) and significant stockholder of Metsera, pursuant to which Validae Health provides business development, clinical development, commercialization, strategic, administrative and related services to the Company in exchange for (i) the reimbursement of out-of-pocket expenses incurred by Validae Health in connection with the provision of such services and (ii) the reimbursement of allocable overhead costs incurred by Validae Health in connection with the provision of such services, including compensation costs of employees of Validae Health based on the percentage of business time and effort dedicated to us, in all cases plus an administrative margin of 10%. In addition, prior to October 2024, Validae Health also received a monthly administrative fee (the Validae Services Arrangement). The amounts due to Validae Health that are included within the caption due to related parties in our accompanying condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024 were $0.2 million and $0.4 million, respectively.

For the three months ended September 30, 2025, we recognized $0.6 million of general and administrative expense and $0.1 million of research and development expense in the accompanying condensed consolidated statements of operations and comprehensive loss. For the nine months ended September 30, 2025, we recognized $2.3 million of general and administrative expense and $0.3 million of research and development expense in the accompanying condensed consolidated statements of operations and comprehensive loss.

For the three and nine months ended September 30, 2024, we recognized $1.9 million and $5.9 million of general and administrative expense and $0.6 million and $1.9 million of research and development expense, respectively, in our accompanying condensed consolidated statements of operations and comprehensive loss.

***Services Agreement with Civia Health, LLC***

In August 2025, we entered into a service agreement with Civia Health, LLC, or Civia, pursuant to which Civia has agreed to provide clinical trial management and site management services to us. Civia is controlled by an affiliate of Validae. The services agreement will continue in effect until the later of August 20, 2030 or the completion date of all services agreed between the parties. We may terminate at any time upon 60 days' prior written notice. Civia may not terminate the agreement without cause. In connection with entering into this agreement, we were required to pay Civia an upfront payment of approximately $6.0 million, which is expected to be utilized in return for future services over the course of the agreement and $1.4 million of which is non-refundable. There were no amounts recognized in accompanying condensed consolidated statements of operations and comprehensive loss during the three and nine months ended September 30, 2025.

***Due to Zihipp Ltd. Shareholders***

As a result of certain development milestones being achieved in previous periods or in the current period under the agreement, we paid $2.5 million and $11.0 million during the three and nine months ended September 30, 2025, respectively. The payments related to the nine months ended September 30, 2025, were comprised of cash consideration of $2.5 million and notes payable to related parties with principal balances of $8.3 million and accrued interest through the payment date of $0.2 million. In addition, as of September 30, 2025, we had notes payable to former Zihipp Ltd. shareholders with principal balances of $2.4 million and accrued interest of $7.9 thousand. As of December 31, 2024, we had notes payable to former Zihipp shareholders with principal balances of $8.3 million and accrued interest of $0.1 million.

***ARCH Venture Partners***

During the nine months ended September 30, 2025, we received approximately $40.0 million in net proceeds upon issuing 2,222,222 shares of our common stock during our IPO to ARCH Venture Partners, a significant shareholder of the Company. There were no such issuances during the three months ended September 30, 2025. During the three and nine months ended September 30, 2024, we received $45.0 million upon issuing 15,000,000 shares of its Series A preferred stock to ARCH Venture Partners. These shares were converted on a 2.349723-for-1 basis immediately prior to the IPO. Refer to Note 8, *Convertible Preferred Stock and Stockholders' Equity (Deficit),* for additional information on conversion.

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**11. Subsequent Events**

***Amendment to the Merger Agreement***

On September 21, 2025, we entered into an Agreement and Plan of Merger (the Original Merger Agreement) with Pfizer, Inc. (Pfizer), a Delaware corporation, and Mayfair Merger Sub, Inc. (Merger Sub), a Delaware corporation and a wholly owned subsidiary of Pfizer, pursuant to which, and on the terms and subject to the conditions thereof, at the effective time of the Merger (the Effective Time), Merger Sub will merge with and into Metsera, with Metsera surviving as a wholly owned subsidiary of Pfizer, which we refer to as the Merger. On November 7, 2025, we entered into Amendment No. 1 to the Original Merger Agreement (the Amendment) with Pfizer and Merger Sub, which amends the Original Merger Agreement (as amended, supplemented and otherwise modified from time to time, the Merger Agreement). Under the terms of the proposed transaction, among other things, Pfizer has agreed to acquire all outstanding shares of Metsera for (A) $65.60 per share in cash plus (B) one contractual contingent value right representing the right to receive contingent payments (a CVR) in cash upon the achievement of certain specified milestones.

The foregoing description of the Merger Agreement and the transactions contemplated thereunder is not complete and is qualified in its entirety by reference to the Original Merger Agreement, a copy of which is filed as an exhibit to the Current Report on Form 8-K, filed with the SEC on September 22, 2025, and incorporated herein by reference, and the Amendment, a copy of which is filed as an exhibit to the Current Report on Form 8-K, filed with the SEC on November 10, 2025, and incorporated herein by reference.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

*The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q (Quarterly Report), as well as our audited consolidated financial statements and accompanying notes thereto and the related Management's Discussion and Analysis of Financial Condition and Results of Operations, included in our Annual Report on Form 10-K for the year ended December 31, 2024 (Annual Report) filed with the Securities and Exchange Commission (SEC) on March 26, 2025. Some of the information contained in this discussion and analysis contains forward-looking statements that involve risks and uncertainties. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. Our actual results and the timing of selected events could differ materially from those discussed in these forward-looking statements as a result of several factors including, but not limited to, those discussed in Part II, Item 1A, "Risk Factors" and elsewhere in this Quarterly Report. See also the section titled "Special Note Regarding Forward-Looking Statements."*

**Overview**

***Introduction***

We are a clinical-stage biopharmaceutical company accelerating the next generation of medicines for obesity and metabolic diseases. Metsera is advancing a broad portfolio of oral and injectable incretin, non-incretin and combination therapies with potential best-in-class profiles to address multiple therapeutic targets and meet the future needs of a rapidly evolving weight loss treatment landscape. Metsera was founded in 2022 and is based in New York City.

Obesity and overweight are among the fastest-growing and most prevalent chronic human conditions, affecting approximately 2.5 billion people worldwide and driving a broad range of severe diseases. Currently approved NuSH analog peptides are a promising treatment option for obesity and overweight. However, the current treatment landscape exhibits several key limitations, including impediments to chronic therapy in large populations, such as administration by weekly injection, prolonged titration and tolerability issues; insufficient weight loss; lack of effective, well-tolerated oral dosing alternatives; and challenges in scaling manufacturing. We have developed and are implementing proprietary methods and platform technologies that we believe will allow us to develop and advance a broad, scalable and combinable portfolio of injectable and oral NuSH analog peptides with the potential to not only address the limitations of approved therapies, but also many of the anticipated limitations of next-generation therapies in development. We use our proprietary MINT peptide library of NuSH analog peptides alongside our Half-life Augmentation by Lipid Optimization (HALO) half-life extending platform and our MOMENTUM oral NuSH analog peptide delivery platform to deliver highly differentiated product candidates that we are advancing into clinical trials for obesity or overweight.

***The Merger***

On September 21, 2025, we entered into an Agreement and Plan of Merger (the Original Merger Agreement) with Pfizer, Inc. (Pfizer), a Delaware corporation, and Mayfair Merger Sub, Inc. (Merger Sub), a Delaware corporation and a wholly owned subsidiary of Pfizer, pursuant to which, and on the terms and subject to the conditions thereof, at the effective time of the Merger (the Effective Time), Merger Sub will merge with and into Metsera, with Metsera surviving as a wholly owned subsidiary of Pfizer, which we refer to as the Merger. On November 7, 2025, we entered into Amendment No. 1 to the Original Merger Agreement (the Amendment) with Pfizer and Merger Sub, which amends the Original Merger Agreement (as amended, supplemented and otherwise modified from time to time, the Merger Agreement).

Under the terms of the proposed transaction, among other things, Pfizer has agreed to acquire all outstanding shares of Metsera for (A) $65.60 per share in cash plus (B) one contractual contingent value right representing the right to receive contingent payments (a CVR) in cash upon the achievement of certain specified milestones. The transaction values Metsera at a total equity value of approximately $10 billion. The boards of directors of both Metsera and Pfizer have approved the transaction. This transaction is expected to close in the last quarter of 2025, subject to regulatory approvals and other customary closing conditions. Following the Merger, if consummated, Metsera would no longer be a publicly-traded company.

***Key Business Developments***

Below is a summary of certain events during our third fiscal quarter ended September 30, 2025, and anticipated milestones. Additional information about our business, our products, and our product candidates is included in Part I. Item 1., "*Business*" included in our Annual Report on Form 10-K, filed with the SEC on March 26, 2025, and above under the section entitled "*Our Programs*."

*MET-097i: Delivered positive Phase 2b VESPER-1 and interim VESPER-3 results including 14.1% weight loss at 28 weeks and potentially class-leading tolerability with simplified titration; Phase 3 initiation on track for late 2025.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The VESPER program includes three ongoing Phase 2b trials designed to further evaluate the differentiated profile of MET-097i and enable rapid transition into Phase 3 clinical trials.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•In September, we presented positive topline data from VESPER-1 and positive data from a planned interim analysis for tolerability of VESPER-3, confirming the potential of MET-097i as a first- and best-in-class ultra-long acting nutrient-stimulated hormone analog, delivering competitive efficacy with category-leading scalability, tolerability, and convenience and enabling the advance of MET-097i into Phase 3 clinical trials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•In VESPER-1, MET-097i demonstrated mean placebo-subtracted weight loss up to 14.1% after 28 weeks. An exploratory analysis of the weekly dosing phase of the study extension of VESPER-1 at 36 weeks demonstrated substantial continued weight loss, highlighting that no plateau had been reached.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•MET-097i demonstrated placebo-like tolerability at a starting dose of 0.4 mg across multiple arms in both trials and the potential for class-leading tolerability with one- or two-step titration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•In the VESPER-3 trial arm that titrated from 0.4 mg to 0.8 mg to 1.2 mg over 12 weeks, there was no risk difference from placebo in diarrhea, a 13% risk difference from placebo for nausea, and 11% for vomiting.

***Business Overview***

Since our inception, we have devoted substantially all of our resources to building our organization, including an acquisition, raising capital, researching, discovering and developing potential drug candidates, establishing and maintaining our intellectual property portfolio, conducting preclinical studies and clinical trials, organizing and staffing our company, business planning and providing general and administrative support for these operations. During the three and nine months ended September 30, 2025, our net losses totaled $116.2 million and $261.5 million, respectively. As of September 30, 2025, we had an accumulated deficit of $518.7 million. Substantially all our net losses have resulted from costs incurred in connection with our research and development programs and, to a lesser extent, from general and administrative costs associated with our operations. Prior to our IPO, we historically funded our operations primarily with proceeds from the sale and issuance of shares of our convertible preferred stock and convertible notes in private placements. Through September 30, 2025, we raised aggregate net proceeds of approximately $824.3 million from the issuance and sale of shares of our Series Seed, Series A, Series A-1 and Series B convertible preferred stock, the issuance of a convertible promissory note and our IPO.

Based upon our current operating plan, we believe that our existing cash and cash equivalents as of the date of this Quarterly Report will be sufficient to fund our projected operating expenses, working capital and capital expenditure needs through at least 12 months from the issuance date of these financial statements. We have based this estimate on our current assumptions, which may prove to be wrong, and we may exhaust our available capital resources sooner than we expect.

We expect to continue to incur significant and increasing net operating losses for the foreseeable future as we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•advance our product candidates through clinical and preclinical development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•seek regulatory approval, prepare for and, if approved, proceed to commercialization of our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•continue our research and development efforts and expand our pipeline of product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•attract, hire and retain additional personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•maintain, expand and protect our intellectual property portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•operate as a public company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•implement operational, financial and management information systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•make royalty, milestone or other payments under current, and any future, license or collaboration agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•establish a sales, marketing and distribution infrastructure to commercialize any product candidate for which we may obtain marketing approval; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•establish manufacturing capacity to supply clinical trials in our pipeline and eventually for commercialization.

In addition, our net losses may fluctuate significantly from period to period, depending upon the timing of our expenditures on research and development activities. Cash used to fund operating expenses is impacted by the timing of when we pay these expenses, as reflected in the change in our prepaid expenses and other current assets, accounts payable and accrued and other current liabilities. In addition, we expect to incur additional costs associated with operating as a public company, including significant legal, audit, accounting, regulatory and tax-related services associated with maintaining compliance with an exchange listing and Securities and Exchange Commission (SEC) requirements, director and officer liability insurance costs, investor and public relations costs and other expenses.

We do not have any products approved for sale, and we do not expect to generate any revenue from product sales unless and until we successfully complete development and obtain regulatory approval for one or more product candidates, which will not be for

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many years, if ever. Because of the numerous risks and uncertainties associated with product development, we may never achieve or sustain profitability and, unless and until we are able to develop and commercialize our product candidates, we will need to continue to raise substantial additional capital. Accordingly, until such time as we can generate significant revenue from product sales, if ever, we plan to finance our operations through a combination of equity offerings, debt financings, collaborations, licensing arrangements and other similar arrangements. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders will be or could be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing and equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. We cannot assure you that we will be successful in obtaining additional financing as and when needed to finance our operations on terms acceptable to us, or at all. Any failure to raise capital as and when needed could have a negative impact on our financial condition and could force us to delay, reduce or terminate our research and development programs or other operations, or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves.

**Components of Results of Operations**

***Operating Expenses***

*Acquired In-Process Research and Development Expenses*

Acquired in-process research and development expenses consist of initial up-front payments incurred in connection with licenses acquired that do not meet the definition of a business and have no alternative future use.

*Research and Development Expenses*

Research and development expenses have primarily related to discovery efforts and preclinical and clinical development of our product candidates.

Research and development expenses include:

*Direct costs, including:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•external research and development expenses incurred under agreements with clinical research organizations (CROs) investigative sites, consultants and other third parties that conduct our preclinical and toxicology studies and clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•expenses related to manufacturing our product candidates for clinical trials and preclinical studies, including fees paid to contract manufacturing organizations (CMOs);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•expenses related to compliance with regulatory requirements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•laboratory supplies and materials used for internal research and development activities.

*Indirect costs, including:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Salaries, payroll taxes, employee benefits and stock-based compensation for those individuals involved in research and development efforts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Facilities, depreciation and other allocated expenses, which include direct and allocated expenses for rent, maintenance of facilities, utilities, insurance, equipment and other supplies.

We track external research and development expenses on a program-by-program basis. However, we do not track our internal research and development expenses on a program-by-program basis as they primarily relate to resources that are deployed across multiple projects under development.

Research and development activities are central to our business model. Product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development, primarily due to the increased size and duration of later-stage clinical trials. We expect our research and development expenses to increase significantly over the next several years as we continue to invest in research and development activities related to developing our product candidates, conduct our clinical trials, including later-stage clinical trials, and seek regulatory approvals for our product candidates that successfully complete clinical trials, as we expand our product pipeline and as we increase personnel to support our research and development efforts.

*General and Administrative Expenses*

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General and administrative expenses consist primarily of salaries and employee-related costs, including stock-based compensation, for personnel in executive, finance and other administrative functions. Other significant costs include facilities related expenses not included in research and development expense, legal fees related to intellectual property and corporate matters, expenses directly associated with the Merger, other professional fees for accounting and consulting services, insurance and other administrative expenses.

We expect that our general and administrative expense will increase for the foreseeable future as we continue to expand our headcount and operations to support the growth of our business, as we advance our product candidates through clinical development, and if any of our product candidates receive marketing approval, as we commence commercialization efforts. We also expect increased expenses related to audit, legal, regulatory and tax-related services associated with maintaining compliance with exchange listing and SEC requirements, director and officer insurance premiums, board of director fees, investor relations costs and other expenses.

*Change in Fair Value of Contingent Consideration*

Contingent consideration represents future potential milestone and royalty payment obligations in connection with the acquisition of Zihipp Ltd. (Zihipp). The fair value of the contingent consideration was estimated based on the probability of milestone achievement, estimated time to payment and an estimated discount rate.

***Other Income (Expense)***

*Interest Expense*

Interest expense primarily consists of interest payable on notes to the former shareholders of Zihipp related to the achievement of certain development milestones.

*Foreign Exchange Gain (Loss)*

Foreign exchange gain (loss) consists of gains or losses from exchange rate changes on transactions denominated in currencies other than the U.S. dollar.

*Interest Income*

Interest income consists of interest earned from our cash and cash equivalents.

**Results of Operations**

***Comparison of the three and nine months ended September 30, 2025 and 2024***

The following table sets forth our results of operations:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months<br>ended September 30,** | **For the three months<br>ended September 30,** |  | **For the nine months<br>ended September 30,** | **For the nine months<br>ended September 30,** |  |
| ***(In thousands)*** | **2025** | **2024** | **$ Change** | **2025** | **2024** | **$ Change** |
| Operating expenses: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquired in-process research and development | $— | $— | $— | $— | $90 | $(90) |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 63684 | 29932 | 33752 | 181381 | 68600 | 112781 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 15034 | 7341 | 7693 | 35119 | 17059 | 18060 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration | 43365 | 73992 | (30627) | 56515 | 74584 | (18069) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 122083 | 111265 | 10818 | 273015 | 160333 | 112682 |
| Loss from operations | (122083) | (111265) | (10818) | (273015) | (160333) | (112682) |
| Other income (expense): |  |  |  |  |  |  |
| Interest expense | (8) | (79) | 71 | (148) | (106) | (42) |
| Foreign exchange loss | 1023 | (95) | 1118 | (3524) | (113) | (3411) |
| Interest income | 4836 | 1401 | 3435 | 15152 | 3357 | 11795 |
| Loss before income taxes | (116232) | (110038) | (6194) | (261535) | (157195) | (104340) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit |  | 390 | (390) |  | 939 | (939) |
| Net loss | $(116232) | $(109648) | $(6584) | $(261535) | $(156256) | $(105279) |

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***Operating Expenses***

*Acquired In-Process Research and Development Expenses*

During the three and nine months ended September 30, 2025 and the three months ended September 30, 2024, we recognized no acquired in-process research and development. During the nine months ended September 30, 2024, we recognized $0.1 million of acquired in-process research and development expenses in connection with the licenses acquired from D&D Pharmatech Inc. (D&D).

For additional information related to the licenses acquired from D&D, please refer to Note 4, *Licensing Agreements*, to our condensed consolidated financial statements included in Part I, Item 1 in this Quarterly Report.

*Research and Development Expenses*

Research and development expenses increased by $33.8 million from $29.9 million during the three months ended September 30, 2024, to $63.7 million for the three months ended September 30, 2025. Research and development expenses increased by $112.8 million from $68.6 million during the nine months ended September 30, 2024, to $181.4 million for the nine months ended September 30, 2025. The increases for the three and nine months ended September 30, 2025, compared to the same periods in the prior year, were primarily driven by the ramp up in product candidate development and the related preclinical, clinical and contract manufacturing costs associated with our portfolio of injectable and oral development programs as well as increases in personnel-related expenses, including stock-based compensation, to support our ongoing research and development activities.

Research and development expenses by program during the three and nine months ended September 30, 2025 and 2024 are summarized in the table below:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months<br>ended September 30,** | **For the three months<br>ended September 30,** | **For the nine months<br>ended September 30,** | **For the nine months<br>ended September 30,** |
| **Strategy *(In thousands)*** | **2025** | **2024** | **2025** | **2024** |
| Fully biased, monthly GLP-1 RA | $25618 | $11376 | $71080 | $20221 |
| Amylin agonism + GLP-1 RA | 9884 | 4054 | 30449 | 10739 |
| Oral peptide platform | 4458 | 6570 | 22560 | 17919 |
| Additional key pipeline combinations with GLP-1 RA + amylin agonism | 3501 | 1310 | 11328 | 3174 |
| Development and discovery infrastructure, including personnel related | 20223 | 6622 | 45964 | 16547 |
| Total research and development expenses | $63684 | $29932 | $181381 | $68600 |

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*General and Administrative Expenses*

General and administrative expenses increased by $7.7 million from $7.3 million for the three months ended September 30, 2024, to $15.0 million for the three months ended September 30, 2025. The increase related to the three months ended September 30, 2025, compared to the same period in the prior year, was primarily driven by increases in personnel-related expenses of $3.2 million and stock-based compensation of $3.5 million as we continue to expand our operations to support our advancements in research and development.

General and administrative expenses increased by $18.1 million from $17.1 million for the nine months ended September 30, 2024, to $35.1 million for the nine months ended September 30, 2025. The increases related to the nine months ended September 30, 2025, compared to the same periods in the prior year, were primarily driven by increases in personnel-related expenses of $7.1 million and stock-based compensation of $6.9 million as we continue to expand our operations to support our advancements in research and development. The increase compared to the prior period also includes a $1.7 million increase in professional fees primarily associated with increased costs associated with being a public company as well as a $2.6 million increase in market research activities. These increases were partially offset by decreases in management fees of $2.6 million.

*Change in Fair Value of Contingent Consideration*

For the three months ended September 30, 2025, we recognized a $43.4 million benefit related to the change in fair value of contingent consideration associated with the Zihipp acquisition that occurred in 2023. For the three months ended September 30, 2024, we recognized a $74.0 million expense related to the change in fair value of contingent consideration associated with Zihipp. The change in fair value of contingent consideration during the three months ended September 30, 2025, was primarily attributable to increases in the probability of achievement of our milestones. The change in fair value of contingent consideration during the three

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months ended September 30, 2024, was primarily attributable to the pursuit of a new product and an increase in the probability of success.

For the nine months ended September 30, 2025, we recognized a $56.5 million expense related to the change in fair value of contingent consideration. For the nine months ended September 30, 2024, we recognized a $74.6 million expense related to the change in fair value of contingent consideration. The change in fair value of contingent consideration during the nine months ended September 30, 2025, was primarily attributable to an increase in the probability of achievement of our milestones. The change in fair value of contingent consideration during the nine months ended September 30, 2024, was primarily attributable to the pursuit of a new product and an increase in the probability of success.

***Other Income (Expense)***

*Interest Expense*

For the three months ended September 30, 2025 and 2024, we recognized interest expense of $8.0 thousand and $79.0 thousand, respectively, related to the notes payable to the former shareholders of Zihipp related to the achievement of certain development milestones. The decrease in interest expense related to the three months ended September 30, 2025, compared to the same period in the prior year, was primarily due to lower principal balances outstanding during the three months ended September 30, 2025.

For the nine months ended September 30, 2025 and 2024, we recognized interest expense of $148.0 thousand and $106.0 thousand, respectively. The slight increase related to the nine months ended September 30, 2025, compared to the same period in the prior year, was primarily due to higher principal balances outstanding during the nine months ended September 30, 2025.

*Foreign Exchange Gain (Loss)*

For the three months ended September 30, 2025 and 2024, we recognized a foreign exchange gain of $1.0 million and a foreign exchange loss of $0.1 million, respectively, from exchange rate changes on transactions denominated in currencies other than the U.S. dollar.

For the nine months ended September 30, 2025 and 2024, we recognized foreign exchange losses of $3.5 million and $0.1 million, respectively, from exchange rate changes on transactions denominated in currencies other than the U.S. dollar.

*Interest Income*

For the three months ended September 30, 2025 and 2024, we recognized $4.8 million and $1.4 million, respectively, of interest income. For the nine months ended September 30, 2025 and 2024, we recognized $15.2 million and $3.4 million, respectively, of interest income. The increases in interest income for the three and nine months ended September 30, 2025, compared to the same periods in 2024, were primarily driven by higher cash and cash equivalents balances.

**Liquidity and Capital Resources**

***Source of Liquidity***

We have incurred net losses and negative cash flows from operations since our inception and anticipate we will continue to incur net losses for the foreseeable future.

To date, we have funded our operations primarily with proceeds from the sale and issuance of shares of our convertible preferred stock, convertible notes in private placements and our initial public offering. Through December 31, 2024, we had raised aggregate net proceeds of approximately $535.9 million from sales of shares of our convertible preferred stock and the issuance of a convertible promissory note. In February 2025, we completed our IPO pursuant to which we issued and sold an aggregate of 17,569,444 shares of our common stock at a price to the public of $18.00 per share. We received gross proceeds of $316.2 million, or aggregate net proceeds of $288.4 million after deducting underwriting discounts and commissions of $22.1 million and other offering expenses of $5.7 million. As of September 30, 2025, we had cash and cash equivalents of $448.5 million and an accumulated deficit of $518.7 million.

We expect to continue to incur significant operating losses in the foreseeable future to support the planned continued development of our product candidates. Our future viability is dependent on our ability to generate cash from our operating activities or to raise additional capital to finance our operations. There is no assurance that we will succeed in obtaining sufficient funding on terms acceptable to us to fund continuing operations, if at all.

***Future Funding Requirements***

Our primary uses of cash are to fund our operations, which consist primarily of research and development expenditures related to our programs and, to a lesser extent, general and administrative expenditures. We anticipate that we will continue to incur

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significant and increasing expenses for the foreseeable future as we continue to advance our product candidates, expand our corporate infrastructure, including the costs associated with being a public company, further our research and development initiatives for our product candidates, incur costs associated with potential commercialization, attract, hire and retain personnel, maintain, expand and protect our intellectual property portfolio, implement operational, financial and management information systems, and make royalty, milestone or other payments. We are subject to all the risks typically related to the development of new drug candidates, and we may encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may adversely affect our business. We anticipate that we will need substantial additional funding in connection with our continuing operations.

We do not have any products approved for sale, and we do not expect to generate any revenue from product sales unless and until we successfully complete development and obtain regulatory approval for one or more product candidates, which will not be for many years, if ever. Because of the numerous risks and uncertainties associated with product development, we may never achieve or sustain profitability and, unless and until we are able to develop and commercialize our product candidates. If the Merger is not consummated on the timelines we anticipate or at all, we will need to continue to raise substantial additional capital. Accordingly, until such time as we can generate significant revenue from product sales, if ever, and if we remain a publicly-traded company, we plan to finance our operations through a combination of equity offerings, debt financings, collaborations, licensing arrangements and other similar arrangements. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders will be or could be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing and equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. We cannot assure you that we will be successful in obtaining additional financing if and when needed to finance our operations on terms acceptable to us, or at all. Any failure to raise capital if and when needed could have a negative impact on our financial condition and could force us to delay, reduce or terminate our research and development programs or other operations, or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves. Our ability to continue as a going concern is dependent upon our ability to successfully accomplish these plans and secure these sources of financing and ultimately attain profitable operations.

As a result of the numerous risks and uncertainties associated with research, development and commercialization of our products, we are unable to estimate the exact amount of our operating capital requirements. Our future funding requirements will depend on many factors, including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing of and ability to consummate the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the initiation, type, number, scope, progress, expansions, results, costs and timing of clinical trials and preclinical studies of any of our current and future product candidates we may choose to pursue, including the costs of modification to clinical development plans based on feedback that we may receive from regulatory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs and timing of manufacturing for any of our current or future product candidates, including commercial manufacturing at sufficient scale, if any product candidate is approved, including as a result of inflation, any supply chain issues or component shortages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs, timing and outcome of regulatory meetings and reviews of any of our current or future product candidates in any jurisdictions in which we or our current or any future collaborators may seek approval for any of our current or future product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs of obtaining, maintaining, enforcing and protecting our patents and other intellectual property and proprietary rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our efforts to enhance operational systems and hire additional personnel to satisfy our obligations as a public company, including enhanced internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs associated with hiring additional personnel and consultants as our business grows, including additional executive officers and clinical development, regulatory, chemistry, manufacturing and control, quality and commercial personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing and payment of milestone, royalty or other payments we must make pursuant to our existing and potential future license or collaboration agreements with third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs and timing of establishing or securing sales and marketing capabilities, if any of our current or future product candidates is approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to achieve sufficient market acceptance, coverage and adequate reimbursement from third-party payors and adequate market share and revenue for any approved products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability and strategic decision to develop future product candidates, and the timing of such development, if any;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•patients' willingness to pay out-of-pocket for any approved products in the absence of coverage and/or adequate reimbursement from third-party payors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the terms and timing of establishing and maintaining collaborations, licenses and other similar arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•costs associated with any products or technologies that we may in-license or acquire.

Based upon our current operating plan, we estimate that our existing cash and cash equivalents as of the date of this Quarterly Report will be sufficient to fund our projected operating expenses and capital expenditure requirements through at least 12 months from the issuance date of these financial statements. However, we have based this estimate on assumptions that may prove to be wrong, and our operating plan may change as a result of many factors currently unknown to us. In addition, we could utilize our available capital resources sooner than we expect. The announcement of, or a failure to consummate, the Merger could negatively impact our business, financial condition, results of operations or our stock price. For additional information on risks associated with our substantial capital requirements, please read the sections entitled "*Risk Factors*" included elsewhere in this Quarterly Report.

***Cash Flows***

The following table sets forth summary of our cash flow activity for the years indicated:

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| | | |
|:---|:---|:---|
|  | **For the nine months<br>ended September 30,** | **For the nine months<br>ended September 30,** |
| ***(In thousands)*** | **2025** | **2024** |
| Net cash used in operating activities | $(195054) | $(63665) |
| Net cash used in investing activities | (198) | (42) |
| Net cash provided by financing activities | 287502 | 176036 |
| Effect of exchange rate changes on cash | 3764 | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase in cash and cash equivalents | $96014 | $112399 |

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*Operating Activities*

During the nine months ended September 30, 2025, net cash used in operating activities was $195.1 million. Net cash used in operating activities reflected our net loss of $261.5 million, adjusted by a $3.2 million net change in our operating assets and liabilities and non-cash charges of $69.6 million. Our non-cash adjustments consisted primarily of $56.5 million related to the change in fair value of our contingent consideration and $13.1 million related to stock-based compensation expense. The net change in our operating assets and liabilities primarily reflects cash decreases associated with the payment of contingent consideration to Zihipp, payments related to the construction of the New Facility under the Amneal agreement and increases in prepaid payments associated with our research and development. These changes were partially offset by increases in accrued expenses primarily associated with research and development costs and employee compensation and related benefits.

During the nine months ended September 30, 2024, net cash used in operating activities was $63.7 million. Cash used in operating activities reflected our net loss of $156.3 million, adjusted by a $17.9 million net change in our operating assets and liabilities and non-cash charges of $74.7 million. The net change in our operating assets and liabilities primarily reflects an increase in accounts payable and accrued expenses and other liabilities driven by timing of invoices and payments as well as increases in accruals related to external research and development. Our non-cash adjustments consisted primarily of $74.6 million related to the change in fair value of our contingent consideration.

*Investing Activities*

During the nine months ended September 30, 2025, net cash used in investing activities was $0.2 million and related to the purchase of property and equipment.

During the nine months ended September 30, 2024, net cash used in investing activities was $42.0 thousand and related to the purchase of property and equipment.

*Financing Activities*

During the nine months ended September 30, 2025, net cash provided by financing activities was $287.5 million. Net cash provided by financing activities consisted primarily of $288.4 million of proceeds received from our IPO, net of offering costs paid, partially offset by contingent consideration payments of $1.4 million and $0.5 million proceeds from exercise of stock options.

During the nine months ended September 30, 2024, net cash provided by financing activities was $176.0 million. Net cash provided by financing activities consisted of $183.0 million received from the sale of our Series Seed and Series A convertible

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preferred stock, net of offering costs paid related to the sale of convertible stock, partially offset by contingent consideration payments of $6.3 million and a $0.5 million payment for the settlement of a deferred payment related to the acquisition of Zihipp.

**Contractual Obligations and Commitments**

We enter into contracts in the normal course of business with our CMOs, CROs and other third parties to support development activities. These contracts are generally cancelable by us.

As of September 30, 2025 we had future minimum lease commitments of $0.4 million related to a noncancelable operating leases for office space, under a long-term lease arrangement. In August 2025, we agreed to terminate one of our operating leases at located at 3 World Trade Center, 175 Greenwich Street, New York, New York 10007 without penalty, and as such, we have no remaining obligations of the original lease.

Under the Amneal Agreements, we are required to finance the construction of the New Facility based on the percentage of the actual costs incurred and subject to an aggregate cap of $100.0 million. See "*Key Agreements*" section below for additional information.

Payment obligations in connection with the acquisition of Zihipp and license agreements with D&D are contingent upon future events such as our achievement of pre-specified development, regulatory and commercial milestones, or royalties on net product sales. As of September 30, 2025, the timing and likelihood of achieving the milestones and generating future product sales are uncertain and therefore, any related payments are not included in the discussion above. See "*Key Agreements*" section below for additional information.

***Obligations Contingent upon the Merger*** 

We may be obligated to make significant contingent payments upon the consummation of the Merger. As the Merger was not deemed to be probable of being achieved as of September 30, 2025, we have not accrued any liabilities related to such contingent obligations in our condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024.

**Key Agreements** 

***Acquisition of Zihipp Ltd.*** 

On September 22, 2023 (the Closing Date), we entered into a share purchase agreement, as amended, with the selling shareholders holding the entire issued share capital of Zihipp, a biopharmaceutical company focused on the development of peptide hormones for use in novel therapeutics for the treatment of diabetes and obesity, pursuant to which we acquired 100% of the outstanding equity interests of Zihipp. Through Zhipp's exclusive licensing agreement with the Imperial College of London, Zihipp had rights to all patent applications and pre-clinical and clinical data packages for various programs associated with the license at the time of acquisition. The acquisition of Zihipp expanded our current pipeline of novel therapeutics for obesity and diabetes.

The acquisition of Zihipp involved upfront and deferred cash payments totaling $34.3 million and contingent consideration with an estimated fair value of $42.9 million at the time of acquisition. Contingent consideration is comprised of future potential development, regulatory, commercial and joint venture (JV) milestone payments as well as royalties on net product sales and out-licensed intellectual property. Under the terms of the agreement, we are obligated to make the following payments: (i) payments on the first achievement of certain development milestones of up to $52.5 million, with additional payment(s) of $27.5 million upon achieving certain other development milestones, in each case; (ii) payments on the first achievement of certain regulatory milestones of up to $30.0 million, plus (a) $30.0 million and/or (b) $10.0 million upon achieving certain other regulatory milestones, in each case, as applicable, provided that (a) and (b) occur within 15 years from the Closing Date; (iii) commercial milestone payment(s) of $5.0 million upon achieving certain commercial milestone events, in each case; and (iv) JV milestone payments of up to $35.0 million as a result of certain royalties, milestones, dividends, sales or other interests and irrevocable consideration payments received from SanPlena LLC. In September 2025 the sublicense agreement between Zihipp and SanPlena LLC was terminated and the members of SanPlena LLC have executed a written consent to wind down SanPlena LLC. Therefore, no JV milestone payments will be payable.

In addition, the former Zihipp shareholders are entitled to low-single digit royalties on net product sales and low-single to mid-teen digit payment of net receipts on non-royalty license income at certain milestone events for out-licensed intellectual property. The royalty term shall terminate on a Licensed Product-by-Licensed Product and country-by-country basis on the latest of (i) the 10-year anniversary of the first commercial sale of such Licensed Product in such country, (ii) the expiration of any regulatory exclusivity period that covers such Licensed Product in such country, and (iii) the expiration of our last-to-expire licensed patent or a jointly owned patent that covers such the Licensed Product in such country.

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For additional information regarding amounts incurred during the three and nine months ended September 30, 2025 and 2024 related to our acquisition of Zihipp, please refer to Note 3, *Acquisition of Zihipp Ltd.*, to our unaudited condensed consolidated financial statements included herein.

***D&D License Agreements*** 

In April 2023, we entered into a license and collaboration agreement with D&D Pharmatech Inc. (D&D), which was amended in May 2023, and further amended in March 2024 (the License Agreement). We were granted an exclusive, sublicensable, worldwide license under certain patent rights and know how to develop, manufacture, commercialize and otherwise exploit compounds and products containing certain peptide and modified peptide GLP-1 agonists and amylin/calcitonin agonists (Licensed Products). For certain Licensed Products, we may exploit such Licensed Products for oral use in any fields, and for other Licensed Products developed by us and formulated for oral delivery using D&D's platform technology, we may exploit such Licensed Products for oral use for the treatment, cure or control of diabetes, obesity, weight loss or nonalcoholic steatohepatitis (NASH). D&D also granted us a right of first refusal with respect to offers from third parties for D&D to assign, sell, or license certain injectable amylin agonist or GLP-1 agonist molecules for the treatment, cure or control of diabetes, obesity, weight loss or NASH.

Simultaneously with the License Agreement, we also entered into an Amended and Restated Research and Collaboration Agreement (the Collaboration Agreement) with D&D and its wholly-owned subsidiary, Neuraly, Inc. (Neuraly) pursuant to which we co-develop certain Licensed Products with D&D. Under the Collaboration Agreement, all inventions jointly-developed are owned jointly by the parties with D&D's interest therein exclusively licensed to us under the terms of the Collaboration Agreement and the License Agreement.

Under the License Agreement, we are obligated to use commercially reasonable efforts to develop through regulatory approval, in the applicable field in the United States and at least three specified major market countries, and commercialize in the countries in which regulatory approval is received, at least: (i) one Licensed Product that includes a compound from a specified group of GLP-1 agonists, (ii) one Licensed Product that includes a compound from a specified group of GLP-1/GIP/glucagon triple agonists, another GLP-1 agonist (including any peptide-based multi-agonist targeting GLP-1 receptors) developed by D&D, or an amylin agonist (including any peptide-based multi-agonist targeting amylin) developed by D&D, and (iii) one Licensed Product that includes either a GLP-1 agonist or an amylin agonist developed by us and formulated for oral delivery using D&D's platform technology. During the term of the License Agreement, D&D is restricted from developing, manufacturing or commercializing any (i) oral amylin agonist or oral GLP-1 agonist for the treatment, cure or control of diabetes, obesity, weight loss, or NASH by utilizing D&D's platform technology, or (ii) any compound that has the identical amino acid backbone sequence as a licensed compound under the License Agreement or any compound covered by a patent right obtained jointly by the parties under the License Agreement.

We paid D&D a one-time, upfront payment of $10 million upon entering the License Agreement. We are obligated to pay D&D, upon the achievement of specific development and regulatory milestones by Licensed Products: (i) up to $26 million in the aggregate for each GLP-1 agonist or amylin agonist Licensed Products that are developed by us and formulated for oral delivery using D&D's platform technology and that achieve such milestones, (ii) up to $52 million in the aggregate for each of the first Licensed Product that includes (a) a compound from a specified group of GLP-1 agonists, (b) a compound from a specified group of GLP-1/GIP/glucagon triple agonists, (c) another GLP-1 agonist developed by D&D using D&D's platform technology or (d) an amylin agonist developed by D&D using D&D's platform technology, to achieve such milestones, and (iii) up to $45 million in the aggregate for each subsequent Licensed Product for those categories in (ii) above, to achieve such milestones. We are also obligated to pay D&D up to $112.5 million in the aggregate upon the achievement of specific sales milestones by Licensed Products that include a GLP-1 agonist or an amylin agonist developed by us and developed for oral delivery using D&D's platform technology and up to $225 million in the aggregate upon the achievement of specific sales milestones by Licensed Products that include a GLP-1 agonist or amylin agonist developed by D&D using D&D's platform technology. We have also agreed to pay D&D, on a Licensed Product-by-Licensed Product and country-by-country basis during the royalty term (subject to customary reductions) on annual net sales of such Licensed Product in such country: (i) tiered low-single to mid-single digit percentage royalties on Licensed Products that include a GLP-1 agonist or an amylin agonist developed by us and formulated for oral delivery using D&D's platform technology and (ii) tiered mid-single digit to low double digit percentage royalties on Licensed Products that include a GLP-1 agonist or amylin agonist developed by D&D using D&D's platform technology. The royalty term commences on the date of first commercial sale of such Licensed Product in the applicable country and ends on the latest of (i) the expiration of the last valid claim within the licensed patent rights covering such Licensed Product in such country, (ii) the tenth anniversary of the first commercial sale of such Licensed Product in such country, (iii) the expiration of regulatory exclusivity for such Licensed Product in such country, and (iv) the first commercial sale of a generic product competitor of such Licensed Product in such country. We are also required to pay D&D a mid-single digit to mid-teen percentage of any non-royalty sublicense income received by us under a sublicense to exploit an Licensed Products with the percentage varying based on the development stage of the Licensed Product at the time the sublicense is granted. We are also obligated to pay D&D a fee upon undergoing any first change of control, if such change of control occurs after the initiation of a Phase 2 clinical trial for an Licensed Product or a Triple G Licensed Products (see "*—D&D Triple G License Agreement*" below), where such fee is equal to a mid-single digit percentage of any consideration received by us in connection with such change of control, subject to a cap of $35 million.

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For a more detailed description of the License Agreement refer to Part I, Item 1, "*Business—Licensing, Partnerships and Collaborations*" included in our Annual Report on Form 10-K for the year ended December 31, 2024. For additional information regarding amounts incurred during the three and nine months ended September 30, 2025 and 2024 related to the D&D License Agreement, please refer to Note 4, *License Agreements*, to our unaudited condensed consolidated financial statements included herein.

***D&D Triple G License Agreement*** 

In March 2024, we entered into a license agreement (the Triple G License Agreement), with D&D, pursuant to which D&D granted us an exclusive, sublicensable, worldwide license under certain patent rights and know how to develop, manufacture, commercialize and otherwise exploit compounds and products containing certain peptide-based triple agonists targeting the receptors for GLP-1, GIP, and glucagon (Triple G Licensed Products) administered by injection for the treatment, cure or control of all diseases and conditions (the Field).

Pursuant to our Collaboration Agreement with D&D and Neuraly, Neuraly is responsible for certain preclinical development of Triple G Licensed Products and all inventions that are jointly-developed are owned jointly by the parties to the Collaboration Agreement, with D&D's interest therein exclusively licensed to us. We have sole control over and are responsible for all other manufacturing, development, commercialization, and medical affairs for the Triple G Licensed Products in the Field. During the term of the Triple G License Agreement, D&D is restricted from developing, manufacturing or commercializing any injectable GLP-1 agonist, dual GLP-1/GIP agonist, or GLP-1/GIP/glucagon triple agonist that is developed or commercialized for the treatment, cure or control of diabetes, obesity, weight loss, or NASH, except for certain existing compounds. We paid D&D a one-time, upfront payment of $50,000 upon entering the Triple G License Agreement. We are obligated to pay D&D up to $52 million in aggregate upon the achievement of specific development and regulatory milestones by the first Triple G Licensed Product and up to $45 million in aggregate for each subsequent Triple G Licensed Product to achieve a subset of such milestones. We are also obligated to pay D&D up to $165 million in aggregate upon the achievement of specific sales milestones by Triple G Licensed Products. We also agreed to pay D&D, on a Triple G Licensed Product-by-Triple G Licensed Product and country-by-country basis during the royalty term (subject to customary reductions), tiered mid-single digit to low double digit percentage royalties on annual net sales of such Triple G Licensed Product in such country. The royalty term commences upon the first commercial sale of such Triple G Licensed Product in the applicable country and ends on the latest of (i) the expiration of the last valid claim within the licensed patent rights covering such Triple G Licensed Product in such country, (ii) the tenth anniversary of the first commercial sale of such Triple G Licensed Product in such country, (iii) the expiration of regulatory exclusivity for such Triple G Licensed Product in such country, and (iv) the first commercial sale of a generic product competitor of such Triple G Licensed Product in such country. We are also required to pay D&D a mid-single digit to mid-teen percentage of any non-royalty sublicense income received by us under a sublicense to exploit Triple G Licensed Products, with the percentage varying based on the development stage of the Triple G Licensed Product at the time the sublicense is granted.

For a more detailed description of the Triple G License Agreement, refer to Part I, Item 1, "*Business—Licensing, Partnerships and Collaborations*" included in our Annual Report on Form 10-K for the year ended December 31, 2024. For additional information regarding amounts incurred during the three and nine months ended September 30, 2025 and 2024 related to the Triple G License Agreement, please refer to Note 4, *License Agreements*, to our unaudited condensed consolidated financial statements included herein.

***Imperial License Agreement*** 

In September 2023, in connection with our acquisition of Zihipp Ltd., we acquired an exclusive intellectual property license agreement dated February 28, 2019, which was amended in December 2020, December 2021, February 2023, and June 2023 (the Imperial Agreement) with Imperial College of Science, Technology and Medicine. The Imperial Agreement was novated in February 2019 by Imperial College of Science, Technology and Medicine to Imperial Innovations Limited and Imperial Innovations Limited later changed its name to IP2IPO Innovations Limited (Imperial). Under the Imperial Agreement, Imperial granted us an exclusive, sublicensable worldwide license, subject to compliance with certain conditions, under certain licensed patents and know-how to develop, manufacture and commercialize certain products, including MET-097i and MET-233i (Imperial Licensed Products) for use in human and veterinary therapeutics.

Under the Imperial Agreement, we are required to use reasonable efforts to develop and commercially exploit the Imperial Licensed Products throughout the world as soon as reasonably practicable. We are also required to use diligent and reasonable efforts to supply Imperial Licensed Products in certain developing countries at a price that reflects the direct cost of manufacture plus a customary margin for a generic pharmaceutical product in such country. Imperial reserves the right for itself and its affiliates, employees, students and its other researchers to further research and develop the licensed intellectual property.

Pursuant to the Imperial Agreement, we are obligated to pay Imperial up to £20.5 million (approximately $27.5 million at an exchange rate of 1.34 as of September 30, 2025) in the aggregate upon the achievement of certain development, regulatory and financing milestones. Upon entering into the Imperial Agreement, Imperial also received an allotment of 333,333 ordinary shares of Zihipp. We are required to pay Imperial an annual license fee and, upon the achievement of certain funding, regulatory, and patent prosecution milestones, we are obligated to reimburse Imperial for certain patent related costs. We are obligated to pay Imperial tiered,

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low-single digit percentage royalties on net sales of the Imperial Licensed Products, subject to reductions if we require a license from a third party to its intellectual property in order to exploit an Imperial Licensed Product. We are also required to pay Imperial a mid-single digit to mid-teen percentage of net receipts from sublicenses where the percentage depends on the regulatory stage of the applicable Imperial Licensed Product at the time of such sublicense.

For a more detailed description of the Imperial Agreement, refer to Part I, Item 1, "*Business—Licensing, Partnerships and Collaborations*" included in our Annual Report on Form 10-K for the year ended December 31, 2024. For additional information regarding amounts incurred during the three and nine months ended September 30, 2025 and 2024 related to the Imperial Agreement, please refer to Note 4, *License Agreements*, to our unaudited condensed consolidated financial statements included herein.

***Amneal Supply Agreement*** 

In September 2024, we entered into a Development and Supply Agreement (the Supply Agreement) with Amneal Biopharma Solutions Private Limited, a subsidiary of Amneal Pharmaceuticals, Inc. (Amneal). Under the Supply Agreement, Amneal will develop, manufacture, and supply certain drug substances and oral and injectable drug products for us for clinical and commercial use worldwide (other than certain South and Southeast Asian, African, and Middle Eastern countries) (the Territory). We are also providing funding in support of the construction of a new Amneal facility for the manufacture of drug substances and drug products, which Amneal will use to manufacture peptide drug substances and injectable peptide products for us and drug substances and drug products for itself and its other customers.

Amneal is responsible for process development, manufacture and supply of drug substances and drug products designated by us. Amneal is designated as our preferred supplier for commercial products, and we are required to purchase an agreed upon percentage of our annual commercial drug substance and drug product needs, subject to certain conditions and price competitiveness for which we may reduce the supply thresholds.

Amneal is required to supply the agreed upon percentage of our annual needs, and use reasonable, diligent efforts to supply all of our requirements of drug product if requested, up to 100,000,000 cartridge-based injectable drug product units per year, and of drug substance, up to the maximum annual capacity of the new facility. Amneal is restricted from developing, manufacturing, supplying and/or marketing any competing GLP-1 and amylin agonist products for competitors, with limited exceptions for certain competitors and products already controlled by a third-party acquirer of Amneal in the event Amneal is acquired.

Amneal is responsible for constructing a new facility in India for the manufacture of injectable peptide drug products, a portion of which is required to have a maximum annual capacity of at least 100,000,000 units of injectable drug product that is dedicated to us. We are obligated to pay up to $100 million over four years for the construction of the facility, and we are entitled to receive an aggregate rebate of up to $100 million based on each unit of drug product manufactured by Amneal at the facility for us, Amneal and Amneal's other customers. Following the first commercial sale of the first injectable drug product, we are obligated to order a minimum number of units of injectable drug product annually, with any shortfall subject to a mid-single digit payment per unit not ordered, and excess orders carrying forward to the next year.

The supply price for commercial drug product and drug substance is a combination of a predetermined fixed price based on cost-of-goods plus a corresponding mark-up and an earn-out based on the gross profit of the products.

In the event of a supply failure, we may source the shortfall from alternate suppliers and receive credits against future orders from Amneal for a specified time period. Amneal must prioritize our orders to prevent or mitigate supply failures. Amneal must secure and maintain an adequate safety stock of drug products and key components to avoid supply shortfalls.

For a more detailed description of the Supply Agreement, refer to Part I, Item 1, "*Business—Licensing, Partnerships and Collaborations*" included in our Annual Report on Form 10-K for the year ended December 31, 2024. For additional information regarding amounts incurred during the three and nine months ended September 30, 2025 and 2024 related to the Supply Agreement please refer to Note 4, *License Agreements*, to our unaudited condensed consolidated financial statements included in Part I, Item 1 in this Quarterly Report.

**Critical Accounting Policies and Estimates**

We prepare our financial statements in accordance with accounting principles generally accepted in the United States of America. The preparation of financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from the estimates made and changes in estimates may occur.

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During the three and nine months ended September 30, 2025, there were no material changes to our critical accounting estimates or in the methodology used for estimates from those described in "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" included in our Annual Report on Form 10-K for the year ended December 31, 2024.

**JOBS Act and Smaller Reporting Company Status**

As an emerging growth company under the Jumpstart Our Business Startups Act of 2012 (the JOBS Act) we can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to use the extended transition period for complying with new or revised accounting standards and as a result of this election, our consolidated financial statements may not be comparable to companies that comply with public company effective dates. We intend to rely on other exemptions provided by the JOBS Act, including without limitation, not being required to comply with the auditor attestation requirements of Section 404(b) of Sarbanes-Oxley.

We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year following the fifth anniversary of the consummation of our initial public offering, or December 31, 2030, (ii) the last day of the fiscal year in which we have total annual gross revenue of at least $1.235 billion, (iii) the last day of the fiscal year in which we are deemed to be a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if, among other factors, the market value of our common stock held by non-affiliates exceeded $700.0 million as of the last business day of the second fiscal quarter of such year (subject to certain conditions), or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.

We are also a smaller reporting company as defined in the Exchange Act. We will lose our status as a smaller reporting company effective as of January 1, 2026. For our remaining periodic reports related to the fiscal year ending December 31, 2025, we may take advantage of certain of the scaled disclosures available to smaller reporting companies.

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**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

**Item 4. Controls and Procedures.**

***Limitations on Effectiveness of Controls and Procedures***

In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

***Evaluation of Disclosure Controls and Procedures***

As of September 30, 2025, management, with the participation and supervision of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that, as of September 30, 2025, our disclosure controls and procedures were effective at the reasonable assurance level.

***Changes in Internal Control Over Financial Reporting***

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control financial reporting.

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**PART II—OTHER INFORMATION**

**Item 1. Legal Proceedings.**

Except as described below, we were not subject to any material legal proceedings as of September 30, 2025, and, to the best of its knowledge, no material legal proceedings are currently pending or threatened.

*Litigation Related to the Merger*

For information regarding the litigation related to the Merger, please refer to Note 7, *Commitments and Contingencies—Litigation—Litigation Related to the Merger*, to our unaudited condensed consolidated financial statements included in Part I, Item 1 in this Quarterly Report.

**Item 1A. Risk Factors.**

*Investing in our securities involves a high degree of risk. You should carefully consider the risks and uncertainties described below, together with the other information in this Quarterly Report, including our condensed consolidated financial statements and the related notes included in this Quarterly Report and in the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations," before deciding whether to invest in our securities. The occurrence of one or more of the events or circumstances described in these risk factors, alone or in combination with other events or circumstances, may have a material adverse effect on our business, reputation, revenue, financial condition, results of operations and future prospects, in which event the market price of our common stock could decline, and you could lose part or all of your investment. Additional risks and uncertainties not presently known to us, or that we currently deem immaterial, may also impair our business operations.* 

**Risks Related to the Merger**

***The conditions under the Merger Agreement to our and Pfizer's consummation of the Merger may not be satisfied at all or in the anticipated timeframe.***

On September 21, 2025, we entered into the Original Merger Agreement with Pfizer, a Delaware corporation, and Merger Sub, a Delaware corporation and a wholly owned subsidiary of Pfizer, pursuant to which, and on the terms and subject to the conditions thereof, at the Effective Time, Merger Sub will merge with and into Metsera, with Metsera surviving as a wholly owned subsidiary of Pfizer, which we refer to as the Merger. On November 7, 2025, we entered into the Amendment with Pfizer and Merger Sub, which amends the Original Merger Agreement (as amended, supplemented and otherwise modified from time to time, the Merger Agreement).

The consummation of the Merger is subject to customary closing conditions, including, among other things, (i) adoption by the Company's stockholders of the Merger Agreement, (ii) the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (iii) the absence of injunctions or other legal restraints preventing or prohibiting the consummation of the Merger and (iv) certain other conditions set forth in the Merger Agreement. The Merger is expected to close as early as the fourth quarter of 2025. As a result, there can be no assurance that the Merger will be consummated. These conditions are described in more detail in the Merger Agreement, which is filed as an exhibit to the Current Report on Form 8-K, filed with the SEC on September 22, 2025, and incorporated herein by reference, and the Amendment, a copy of which is filed as an exhibit to the Current Report on Form 8-K, filed with the SEC on November 10, 2025, and incorporated herein by reference.

The Company intends to pursue all required approvals in accordance with the Merger Agreement. However, no assurance can be given that the required approvals will be obtained and, even if all such approvals are obtained, no assurance can be given to the terms, conditions and timing of the approvals or that they will satisfy the terms of the Merger Agreement.

***The announcement of, or a failure to consummate, the Merger could negatively impact our business, financial condition, results of operations or our stock price.***

Our announcement of having entered into the Merger Agreement could cause a material disruption to our business and there can be no assurance that the conditions to the consummation of the Merger will be satisfied. The Merger Agreement may also be terminated by us and/or Pfizer in certain specified circumstances, as described below. We are subject to several risks as a result of the announcement of the Merger Agreement, including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•if the Merger is not completed within the expected timeframe, or at all, the share price of our common stock will change to the extent that the current market price of our common stock reflects an assumption that the Merger will be consummated;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•certain costs related to the Merger, including the fees and/or expenses of our legal, accounting and financial advisors must be paid even if the Merger is not completed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•pursuant to the Merger Agreement, we are subject to certain restrictions on the conduct of our business prior to the completion of the Merger, which restrictions could adversely affect our ability to realize certain of our business strategies or take advantage of certain business opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the attention of our management may be directed towards the consummation of the Merger and related matters, and their focus may be diverted from the day-to-day business operations of our Company, including from other opportunities that might otherwise be beneficial to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our inability to retain existing key employees or hire new capable employees, given the uncertainty regarding our future, in order to execute on our continuing business operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a failure to complete the Merger within the proposed timeframe, or at all, may result in negative publicity and/or a negative impression of us in the investment community or business community generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•difficulties maintaining relationships with collaborators, vendors, and other business partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•third parties may determine to terminate and/or attempt to renegotiate their relationship with us as a result of the Merger, whether pursuant to the terms of their existing agreements with us or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•upon termination of the Merger Agreement by us or Pfizer under specified circumstances, we would be required to pay a termination fee of approximately $265 million; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we could be subject to litigation related to, as well as any failure to complete, the Merger.

***In addition, our executive officers and directors may have interests in the Merger that are different from, or are in addition to, those of our stockholders generally. These interests include without limitation the following:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•each of our directors and executive officers hold outstanding Company equity awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•stockholders associated with certain directors and executive officers hold shares of Company common stock and are subject to voting agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•certain officers may receive cash severance payments in the event their employment is terminated after the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•certain equity awards held by our executive officers and non-employee directors will vest in full at the Effective Time, under the terms of the applicable award agreement underlying such equity award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•certain other equity awards will convert into a right to receive a cash payment that is subject to continued vesting in accordance with the terms of the original equity award; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•certain executive officers may continue to provide employment or other services to Pfizer after the Effective Time and may enter into new agreements, arrangements or understandings with Pfizer to set forth the terms and compensation of such post-Effective Time service.

***Our stockholders may not receive any payment on the contingent value rights and the contingent value rights may otherwise expire valueless.***

The Merger Agreement contemplates that, upon consummation of the Merger, Pfizer will issue to eligible stockholders and securityholders a CVR pursuant to a CVR agreement (the CVR Agreement). Each CVR will represent a non-tradable contractual contingent right to receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•$4.60 per CVR in cash, without interest and less any applicable tax withholding on a dosing basis of on or around every twenty eight days payable upon the occurrence of the initiation of the first Phase 3 Clinical Trial for the injectable fixed dose combination of MET-233i and MET-097i (the Combination Product) for chronic weight management, on or prior to December 31, 2027;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•$6.40 per CVR in cash, without interest and less any applicable tax withholding payable upon the occurrence of the receipt from the U.S. Food and Drug Administration by Parent or any of its subsidiaries in the United States of approval of the injectable MET-097i on a dosing basis of on or around every twenty eight days for chronic weight management by the U.S. Food and Drug Administration, on or prior to December 31, 2029; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•$9.65 per CVR in cash without interest and less any applicable tax withholding payable upon for chronic weight management the occurrence of the receipt from the U.S. Food and Drug Administration by Parent or any of its

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subsidiaries of approval of the Combination Product by the U.S. Food and Drug Administration, on or prior to December 31, 2031.

The right of our stockholders to derive any value from the CVRs will be contingent solely upon the achievement of these milestones. We may not be able to achieve the milestones as described above, including for reasons described elsewhere in these Risk Factors, and there can be no assurance that payment will be required of Pfizer under the CVRs. If any of the milestones are not achieved for any reason within the time periods specified in the CVR Agreement, the corresponding payments will not be made under the CVRs, and if none of the milestones is achieved, then the CVRs will expire valueless.

***The Merger Agreement contains provisions that could make it difficult for a third-party to acquire us prior to the completing of the Merger.***

The Merger Agreement contains restrictions on our ability to obtain a third-party proposal for an acquisition of our Company, including a customary "no shop" provision that, in general, restricts the Company's ability to solicit third-party acquisition proposals or provide information to, or engage in discussions or negotiations with, third parties regarding or that could reasonably be likely to lead to any acquisition proposal. The no shop provision is subject to a customary "fiduciary out" provision that allows us, prior to receiving the approval of our stockholders, under certain circumstances and in compliance with certain obligations, to provide information and participate in discussions and negotiations with respect to unsolicited third-party acquisition proposals that could reasonably be expected to lead to a "Superior Company Proposal" (as defined in the Merger Agreement) and, subject to compliance with certain obligations, to terminate the Merger Agreement and accept a Superior Company Proposal upon payment to Pfizer of a termination fee of $265 million. The Merger Agreement includes customary termination provisions for both the Company and Pfizer and provides that, in connection with the termination of the Merger Agreement under specified circumstances, including termination by us to accept a Superior Company Proposal, we will be required to pay a fee equal to $265 million.

These provisions might discourage an otherwise-interested third-party from considering or proposing an acquisition of our Company, even one that may be deemed of greater value to our stockholders than the Merger. Furthermore, even if a third-party elects to propose an acquisition, the concept of a termination fee may result in that third-party offering a lower value to our stockholders than such third-party might otherwise have offered.

***While the Merger Agreement is in effect, we are subject to restrictions on our business activities.*** 

The Merger Agreement includes restrictions on the conduct of our business prior to the completion of the Merger, generally requiring us to use commercially reasonable efforts to conduct our business in the ordinary course consistent with past practice, including using commercially reasonable efforts to preserve our present relationships with suppliers, licensors, licensees, governmental entities and others having material business dealings with us, and maintain our material assets and business organization intact in all material respects. In addition, we are subject to a variety of specified restrictions. Unless we obtain Pfizer's prior written consent (which consent may not be unreasonably withheld, conditioned or delayed), except as specifically required by the Merger Agreement or required by applicable law, we may not, among other things and subject to certain exceptions, limitations and qualifications, declare dividends or make other distributions, incur additional indebtedness, issue additional shares of our common stock outside of our equity incentive plans, acquire or dispose of certain assets or securities, enter into contracts other than in the ordinary course of business, or make certain capital expenditures. We may find that these and other contractual restrictions in the Merger Agreement delay or prevent us from responding, or limit our ability to respond, effectively to competitive pressures, industry developments and future business opportunities that may arise during such period, even if our management believes they may be advisable. If any of these effects were to occur, it could materially and adversely impact our operating results, financial position, cash flows or the price of our common stock.

***Securities class action and derivative lawsuits in connection with the Merger could result in substantial costs and prevent or delay the consummation of the Merger.***

Securities class action lawsuits and derivative lawsuits are often brought against public companies that have entered into acquisition or merger agreements. Defending against and settling or otherwise resolving these types of claims can result in substantial costs, including costs associated with indemnification of directors and officers, and divert management time and resources. An adverse judgment in any such litigation relating to the Merger could result in monetary damages, which could have a negative impact on our financial condition. If a plaintiff is successful in obtaining an injunction prohibiting completion of the Merger, that injunction could delay or prevent the Merger from being completed, which could negatively impact our business, financial condition, results of operations or our stock price.

In connection with the Merger, we and our directors may be named as defendants in lawsuits or other legal proceedings, including those filed by stockholders alleging, among other things, breaches of fiduciary duty or inadequate disclosure in connection with the Merger. These proceedings could result in substantial costs to us, including expenses associated with defending the litigation, diversion of management's time and attention, potential damages, attorneys' fees or settlements.

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Adverse rulings or injunctions, including temporary restraining orders or other equitable relief, could delay or prevent consummation of the Merger or the payment of consideration to stockholders. Even if resolved without material liability, such litigation could negatively affect our reputation, our relationships with business partners and the market price of our common stock. Any of these outcomes could have a material adverse effect on us and our stockholders.

**Risks Related to Our Limited Operating History, Financial Position and Capital Requirements** 

***We are a clinical-stage biotechnology company with a limited operating history and no history of commercializing products and have incurred significant operating losses since our inception and expect to incur significant losses for the foreseeable future.*** 

Biopharmaceutical product development is a highly speculative undertaking and involves a substantial degree of risk. We are a clinical-stage biotechnology company with a limited operating history upon which you can evaluate our business and prospects. We commenced operations in June 2022, have no products approved for commercial sale and have not generated any revenue from product sales. Since our inception, we have devoted substantially all of our resources to building our organization, including an acquisition, raising capital, researching, discovering and developing potential drug candidates, establishing and maintaining our intellectual property portfolio, conducting preclinical studies and clinical trials, organizing and staffing our company, business planning and providing general and administrative support for these operations. We have not yet demonstrated the ability to successfully obtain regulatory approvals, manufacture products at commercial scale or conduct sales and marketing activities necessary for successful product commercialization. Consequently, any predictions made about our future success or viability may not be as accurate as they could be if we had a history of successfully developing and commercializing biopharmaceutical products.

We have incurred significant operating losses since our inception and expect to incur significant losses for the foreseeable future. We do not have any products approved for sale and have not generated any revenue from product sales. If we are unable to successfully develop, obtain requisite approval for and commercialize any of our current or future product candidates, we may never generate revenue. Our net losses totaled $261.5 million and $156.3 million for the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, we had an accumulated deficit of $518.7 million. Substantially all of our losses have resulted from expenses incurred in connection with our research and development activities and from general and administrative costs associated with our operations. Any of our current and future product candidates will require substantial additional development time and resources before we would be able to apply for or receive regulatory approvals and begin generating revenue from product sales. We expect to continue to incur significant and increasing losses for the foreseeable future as we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•advance our product candidates through clinical and preclinical development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•seek regulatory approval, prepare for and, if approved, proceed to commercialization of our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•continue our research and development efforts and expand our pipeline of product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•attract, hire and retain additional personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•maintain, expand and protect our intellectual property portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•operate as a public company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•implement operational, financial and management information systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•make royalty, milestone or other payments under current, and any future, license or collaboration agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•establish a sales, marketing and distribution infrastructure to commercialize any product candidate for which we may obtain marketing approval; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•establish manufacturing capacity to supply clinical trials in our pipeline and eventually for commercialization.

***We may never generate any revenue or become profitable or, if we achieve profitability, we may not be able to sustain it.*** 

To become and remain profitable, we must succeed in developing, obtaining regulatory approvals for, and eventually commercializing products that generate significant revenue. This will require us to be successful in a range of challenging activities, including completing clinical trials and preclinical studies and obtaining regulatory approval for one or more of our current and future product candidates, and manufacturing, marketing, and selling any products for which we may obtain regulatory approval. We are only in the preliminary stages of only a few of these activities. We may never succeed in these activities and, even if we do, may never generate revenue that is significant enough to achieve profitability. In addition, we have not yet demonstrated an ability to successfully overcome many of the risks and uncertainties frequently encountered by companies in new and rapidly evolving fields, particularly in the biopharmaceutical industry. Because of the numerous risks and uncertainties associated with biopharmaceutical product development, we are unable to accurately predict the timing or amount of increased expenses or when, or if, we will be able to achieve profitability. Even if we do achieve profitability, we may not be able to sustain or increase profitability on a quarterly or annual basis.

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Our failure to become and remain profitable may have an adverse effect on the value of our company and could impair our ability to raise capital, expand our business, maintain our research and development efforts, diversify our product candidates, achieve our strategic objectives or even continue our operations. A decline in the value of our company could also cause you to lose all or part of your investment.

***If the Merger is not consummated on the timeline we expect or at all, we will require substantial additional capital to finance our operations, and a failure to obtain this necessary capital when needed on acceptable terms, or at all, could force us to delay, limit, reduce or terminate our development programs, commercialization efforts or other operations.*** 

The development of biopharmaceutical product candidates, including conducting preclinical studies and clinical trials, is a very time-consuming, capital-intensive and uncertain process. Our operations have consumed substantial amounts of cash since inception. We expect our expenses to substantially increase in connection with our ongoing activities, particularly as we conduct our ongoing and planned clinical trials of our product candidates and potentially seek regulatory approval for any of our current and future product candidates we may develop. In addition, if we are able to progress any of our in-licensed product candidates through development and commercialization, we expect to be required to make milestone and royalty payments pursuant to various license or collaboration agreements with third parties. If we obtain regulatory approval for any of our current or future product candidates, we also expect to incur significant commercialization expenses related to product manufacturing, marketing, sales and distribution. Because the outcome of any clinical trial or preclinical study is highly uncertain, we cannot reliably estimate the actual amount of capital necessary to successfully complete the development and commercialization of any of our current or future product candidates. Furthermore, we expect to incur additional costs associated with operating as a public company.

We expect that our existing cash and cash equivalents will allow us to advance the clinical development of MET-097i, MET-233i and our selected lead oral candidate, and we expect that the remainder will be utilized to fund other research and development activities as well as working capital and other general corporate needs. We have based these estimates on assumptions that may prove to be wrong, and we could use our capital resources sooner or differently than we currently expect. Our operating plans and other demands on our cash resources may change as a result of many factors currently unknown to us, and we may need to seek additional funds sooner than planned. If the Merger is not consummated on the timelines we expect or at all, our existing cash and cash equivalents may not be sufficient to complete development of any of our current or future product candidates. We will require substantial capital in order to advance any of our current and future product candidates through clinical trials, regulatory approval and commercialization.

Our future capital requirements will depend on many factors, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing of and ability to consummate the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the initiation, type, number, scope, progress, expansions, results, costs and timing of clinical trials and preclinical studies of any of our current and future product candidates we may choose to pursue, including the costs of modification to clinical development plans based on feedback that we may receive from regulatory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs and timing of manufacturing for any of our current or future product candidates, including commercial manufacturing at sufficient scale, if any product candidate is approved, including as a result of inflation, any supply chain issues or component shortages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs, timing and outcome of regulatory meetings and reviews of any of our current or future product candidates in any jurisdictions in which we or our current or any future collaborators may seek approval for any of our current or future product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs of obtaining, maintaining, enforcing and protecting our patents and other intellectual property and proprietary rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our efforts to enhance operational systems and hire additional personnel to satisfy our obligations as a public company, including enhanced internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs associated with hiring additional personnel and consultants as our business grows, including additional executive officers and clinical development, regulatory, chemistry, manufacturing and control (CMC), quality and commercial personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing and payment of milestone, royalty or other payments we must make pursuant to our existing and potential future license or collaboration agreements with third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs and timing of establishing or securing sales and marketing capabilities, if any of our current or future product candidates is approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to achieve sufficient market acceptance, coverage and adequate reimbursement from third-party payors and adequate market share and revenue for any approved products;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability and strategic decision to develop future product candidates, and the timing of such development, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•patients' willingness to pay out-of-pocket for any approved products in the absence of coverage and/or adequate reimbursement from third-party payors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the terms and timing of establishing and maintaining collaborations, licenses and other similar arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•costs associated with any products or technologies that we may in-license or acquire.

Accordingly, if the Merger is not consummated on the timeline we expect or at all, we will need to obtain substantial additional funding in connection with our continuing operations. If we remain a publicly-traded company, we plan to finance our operations through a combination of equity offerings, debt financings, collaborations, licensing arrangements and other similar arrangements. Our ability to raise additional funds may be adversely impacted by global economic conditions, disruptions to, and volatility in, the credit and financial markets in the United States and worldwide, and diminished liquidity and credit availability. If the equity and credit markets deteriorate, it may make any necessary debt or equity financing more difficult, more costly and more dilutive. If we are unable to raise capital when needed or on attractive terms, we could be forced to delay, reduce or eliminate our research and development programs or any future commercialization efforts, or even cease operations. Attempting to secure additional financing may divert our management from our day-to-day activities, which may adversely affect our ability to develop any of our current or future product candidates.

***Raising additional capital may cause dilution to our stockholders, restrict our operations or require us to relinquish rights to our technologies or product candidates.*** 

Until such time, if ever, as we can generate substantial product revenue and if we remain a publicly-traded company, we expect to finance our operations through equity offerings, debt financings or other capital sources, including potential collaborations, licenses and other similar arrangements. We do not have any committed external source of funds. To the extent that we raise additional capital through the sale of equity or convertible debt securities, your ownership interest may be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect your rights as a common stockholder. Debt financing and preferred equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. Such restrictions could adversely impact our ability to conduct our operations and execute our business plan.

If we raise additional funds through future collaborations, licenses and other similar arrangements, we may be required to relinquish valuable rights to our future revenue streams, product candidates, research programs, intellectual property or proprietary technology, or grant licenses on terms that may not be favorable to us and/or that may reduce the value of our common stock. If we are unable to raise additional funds through equity or debt financings or other arrangements when needed or on terms acceptable to us, we would be required to delay, limit, reduce or terminate our product development or future commercialization efforts, or grant rights to develop and market product candidates that we might otherwise prefer to develop and market ourselves, or on less favorable terms than we would otherwise choose.

**Risks Related to the Development and Regulatory Approval of Our Product Candidates** 

***We currently depend entirely on the success of our product candidates. Drug development is a highly uncertain undertaking and involves a substantial degree of risk. If we are unable to successfully develop any of our current or future product candidates, or experience significant delays in doing so, our business will be materially harmed.*** 

We currently have no products approved for commercial sale or for which marketing approval has been sought. Our product candidates, including MET-097i, MET-233i and our oral candidates, are in clinical, preclinical or earlier stages of development. We have invested substantially all of our efforts and financial resources in developing our current product candidates, identifying potential product candidates and conducting preclinical studies and clinical trials. Our ability to generate product revenues, which we do not expect will occur for many years, if ever, will depend heavily on the successful development and eventual commercialization of our product candidates. The success of our product candidates will depend on several factors, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•successful initiation and completion of preclinical studies with favorable results, including toxicology and other studies designed to be compliant with good laboratory practice (GLP) requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•allowance to proceed with clinical trials under INDs by the FDA, or of similar regulatory submissions by comparable foreign regulatory authorities, for the conduct of clinical trials of our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•successful initiation, enrollment, and completion of clinical trials in accordance with good clinical practice (GCP) requirements and other applicable rules and regulations, and completion of clinical trials with favorable results;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•maintaining and establishing relationships with CROs and clinical sites for the clinical development of any of our current and future product candidates, and ability of such CROs and clinical sites to comply with clinical trial protocols, GCPs and other applicable requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•demonstrating the safety, purity, potency and efficacy of our product candidates to the satisfaction of the FDA and other applicable regulatory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•receipt of regulatory approvals from regulatory authorities, including approvals of Biologics License Applications (BLAs) from the FDA, or New Drug Applications (NDAs) and maintaining any such approvals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•maintaining relationships with our third-party manufacturers and their ability to comply with current Good Manufacturing Practices (cGMPs), as well as timely making arrangements with our third-party manufacturers for, or establishing our own, commercial manufacturing capabilities at a cost and scale sufficient to support commercialization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•establishing sales, marketing and distribution capabilities and launching commercial sales of our product candidates, if and when approved, either alone or in collaboration with others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•obtaining, maintaining, protecting and enforcing patent and any potential trade secret protection or regulatory exclusivity for our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•maintaining an acceptable safety profile of our product candidates following regulatory approval, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•maintaining and growing an organization of people who can develop and, if approved, commercialize, market and sell our product candidates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•acceptance of our product candidates, if approved, by patients, the medical community and third-party payors.

The success of our business, including our ability to finance our company and generate any revenue in the future, will depend on the successful development, regulatory approval and commercialization of our product candidates, which may never occur. In the future, we may also become dependent on other product candidates that we may develop or acquire; however, given our stage of development, it may be several years, if at all, before we have demonstrated the safety, purity, potency or efficacy of a product candidate sufficient to warrant approval for commercialization. If we are unable to develop, or obtain regulatory approval for, or, if approved, successfully commercialize our product candidates, we may not be able to generate sufficient revenue to continue our business.

***Preclinical development is uncertain. Our preclinical programs may experience delays or may never advance to clinical trials, which would adversely affect our ability to obtain regulatory approvals or commercialize these programs on a timely basis or at all, which would have an adverse effect on our business.*** 

Before we can commence clinical trials for any product candidate, we may be required to complete extensive preclinical studies to support an IND in the United States or a similar application in other foreign jurisdictions. Conducting preclinical testing is a lengthy, time-consuming, and expensive process and delays associated with product candidates for which we are directly conducting preclinical testing and studies may cause us to incur additional operating expenses. Although we have completed certain clinical trials and have additional clinical trials ongoing for our product candidates, we cannot be certain of the timely completion or outcome for any ongoing or future preclinical testing and studies for our other product candidates, whether the outcome of our preclinical testing will ultimately support the further development of our other product candidates or if the FDA or comparable foreign regulatory authorities will accept our proposed clinical programs. As a result, we cannot be sure that we will be able to submit INDs or similar applications for our preclinical programs on the timelines we expect, if at all, and we cannot be sure that submission of INDs or similar applications will result in the FDA or comparable foreign regulatory authorities allowing clinical trials to begin.

***Clinical and preclinical development involves a lengthy and expensive process with an uncertain outcome, and the results of prior clinical trials and studies involving our product candidates are not necessarily predictive of our future results. Our product candidates may not show favorable results in preclinical studies or clinical trials or receive regulatory approval on a timely basis, if at all.*** 

Drug and biologic product development is expensive and can take many years to complete, and its outcome is inherently uncertain. We cannot guarantee that any clinical trials or preclinical studies will be conducted as planned, including whether we are able to meet expected timeframes for data readouts, or completed on schedule, if at all, and failure can occur at any time during the trial or study process, including due to factors that are beyond our control. Despite promising preclinical or clinical results, any of our current or future product candidates can unexpectedly fail at any stage of clinical or preclinical development. The historical failure rate for product candidates in our industry is high.

The results from preclinical studies or clinical trials of any of our current and future product candidates, or a competitor's product candidate in the same class, may not predict the results of later clinical trials of any of our current or future product

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candidates. Any of our current or future product candidates in later stages of clinical trials may fail to show the desired characteristics despite having progressed through preclinical studies and initial clinical trials. It is not uncommon to observe results in clinical trials that are unexpected based on preclinical studies and early clinical trials, and many product candidates fail in later stage clinical trials despite very promising early results.

Moreover, preclinical and clinical data may be susceptible to varying interpretations and analyses. A number of companies in the biopharmaceutical and biotechnology industries have suffered significant setbacks in clinical development even after achieving promising results in earlier studies. Such setbacks have occurred and may occur for many reasons, including, but not limited to: clinical sites and investigators may deviate from clinical trial protocols, whether due to lack of training or otherwise and we may fail to detect any such deviations in a timely manner; patients may fail to adhere to any required clinical trial procedures, including any requirements for post-treatment follow-up; our product candidates may fail to demonstrate safety, purity, potency or efficacy in certain patient subpopulations, which has not been observed in earlier trials due to limited sample size, lack of analysis or otherwise; or our clinical trials may not adequately represent the patient populations we intend to treat, whether due to limitations in our trial designs or otherwise, such as where one patient subgroup is over-represented in the clinical trial. There can be no assurance that we will not suffer similar setbacks despite the data we observed in earlier or ongoing studies. Based upon negative or inconclusive results, we or any current or any future collaborator may decide, or regulators may require us, to conduct additional preclinical studies or clinical trials, which would cause us to incur additional operating expenses and delays and may not be sufficient to support regulatory approval on a timely basis or at all.

For the foregoing reasons, we cannot be certain that our ongoing and planned clinical trials and preclinical studies will be successful. Any safety concerns observed in any one of our clinical trials in our targeted indications could limit the prospects for regulatory approval of our product candidates in those and other indications, which could have a material adverse effect on our business, financial condition and results of operations.

***Any difficulties or delays in the commencement or completion, or the termination or suspension, of our current or planned clinical trials or preclinical studies could result in increased costs to us, delay or limit our ability to receive approval for and commercialize any product candidates and generate revenue.*** 

Before obtaining approval from regulatory authorities for the sale of any of our current or future product candidates, we must conduct extensive preclinical studies and clinical trials to demonstrate the safety, purity, potency and efficacy of our product candidates. In addition, before we can initiate clinical development for any future preclinical product candidates, we must submit the results of preclinical studies to the FDA or comparable foreign regulatory authorities along with other information, including information about product candidate CMC and our proposed clinical trial protocol, as part of an IND or similar regulatory submission to foreign regulatory authorities for clinical trials outside of the United States. The FDA or comparable foreign regulatory authorities may require us to conduct additional preclinical studies for any future product candidates before it allows us to initiate clinical trials under any IND or similar foreign regulatory submission, which may lead to delays or increase the costs of developing future product candidates.

Moreover, issues may arise that could cause regulatory authorities to suspend or terminate our ongoing or planned clinical trials. Any such delays in the commencement or completion, or the termination or suspension, of our ongoing and planned clinical trials or preclinical studies could significantly affect our product development timelines and product development costs.

We do not know whether our planned clinical trials or preclinical studies will begin on time or if our ongoing or future trials or studies will be completed on schedule, if at all. The commencement, data readouts and completion of clinical trials and preclinical studies can be delayed for a number of reasons, including delays related to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•inability to obtain animals or materials to initiate and generate sufficient preclinical, toxicology, or other *in vivo* or *in vitro* data to support the initiation or continuation of clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•obtaining authorization from regulatory authorities to commence a clinical trial or reaching a consensus with regulatory authorities on trial design;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the FDA or comparable foreign regulatory authorities disagreeing as to the design or implementation of our clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any failure or delay in reaching an agreement with CROs and clinical trial sites, the terms of which can be subject to extensive negotiation and may vary significantly among different CROs and trial sites;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•delays in identifying, recruiting and training suitable clinical investigators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•obtaining approval from one or more institutional review boards (IRBs) or ethics committees (ECs) at clinical trial sites;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•IRBs/ECs refusing to approve, suspending or terminating the trial at an investigational site, precluding enrollment of additional patients or withdrawing their approval of the trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes to the clinical trial protocol;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•clinical sites deviating from the trial protocol and dropping out of a trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure by our CROs to perform an accordance with GCP requirements or applicable regulatory requirements or guidelines in other countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•obtaining sufficient quantities of any of our current or future product candidates, including in respect of any combination product candidates, and related raw materials or obtaining sufficient quantities of other materials needed for use in clinical trials and preclinical studies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•patients failing to enroll or remain in our trials at the rate we expect or failing to return for post-treatment follow-up;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•patients choosing alternative treatments for the indications for which we are developing any of our current or future product candidates or participating in completing clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•lack of adequate funding to continue the clinical trials or preclinical studies or costs being greater than we anticipate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•patients experiencing severe or serious unexpected drug-related adverse effects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•occurrence of serious adverse events in trials of the same class of agents conducted by other companies that could be considered similar to any of our current or future product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•selection of clinical endpoints that require prolonged periods of clinical observation or extended analysis of the resulting data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•transfer of manufacturing processes to larger-scale facilities operated by third-party manufacturers, delays or failure by our third-party manufacturers or us to make any necessary changes to such manufacturing process, or failure of such third-party manufacturers to produce clinical trial materials in accordance with cGMP regulations or other applicable requirements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•third parties being unwilling or unable to satisfy their contractual obligations in a timely manner.

Clinical trials must be conducted in accordance with the FDA and other applicable regulatory authorities' legal requirements, regulations or guidelines, and are subject to oversight by these governmental agencies and ECs or IRBs at the medical institutions where the clinical trials are conducted. We could also encounter delays if a clinical trial is suspended or terminated by us, by the IRBs of the institutions in which such trials are being conducted, by a data safety monitoring board for such trial or by the FDA or comparable foreign regulatory authorities. Such authorities may impose such a suspension, including a clinical hold, or termination due to a number of factors, including, among other reasons, failure to conduct the clinical trial in accordance with GCP and other regulatory requirements or our clinical protocols, inspection of the clinical trial operations or trial site by the FDA or comparable foreign regulatory authorities resulting in the imposition of a clinical hold, unforeseen safety issues or adverse side effects, failure to demonstrate a benefit from using a drug, changes in governmental regulations or administrative actions or lack of adequate funding to continue the clinical trial. In addition, changes in regulatory requirements and policies may occur, and we may need to amend clinical trial protocols to comply with these changes. Amendments may require us to resubmit our clinical trial protocols to IRBs for reexamination, which may impact the costs, timing or successful completion of a clinical trial.

Further, we and our collaborators are currently conducting, and we, our collaborators and any future collaborators may in the future conduct, clinical trials in foreign countries, which presents additional risks that may delay completion of our clinical trials. For example, we and our collaborators are currently conducting clinical trials in Canada. These risks include the failure of enrolled patients in foreign countries to adhere to clinical protocols as a result of differences in healthcare services or cultural customs, managing additional administrative burdens associated with foreign regulatory schemes, and political and economic risks relevant to such foreign countries, including war. See — "*Risk Factors — We may conduct certain of our clinical trials for our product candidates outside of the United States. However, the FDA and foreign regulatory authorities may not accept data from such trials, which could materially harm our business.*"

In addition, we may make formulation or manufacturing changes to any of our current or future product candidates, in which case we may need to conduct additional preclinical studies or clinical trials to bridge our current versions of any of our current or future product candidates to earlier versions. If we are unable to conduct such studies or trials, or if we otherwise fail to adequately bridge the current versions of our product candidates to earlier versions, then we may be unable to utilize any data we have gathered

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from studies or trials that evaluated such earlier versions in our planned regulatory submissions, which could delay our programs. For example, in future studies of any of our current or future product candidates, we may utilize materials produced by a different third-party manufacturer than the third-party manufacturer that produced materials in our ongoing and planned studies, and we may be unable to demonstrate full comparability between lots produced by our current manufacturer and any future supplier. As a result, we may be required to gather additional data before we are able to submit a marketing application for our current or future product candidates, if ever.

Many of the factors that cause, or lead to, the termination or suspension of, or a delay in the commencement or completion of, clinical trials may also ultimately lead to the denial of regulatory approval of a product candidate. Any delays to our clinical trials that occur as a result could shorten any period during which we may have the exclusive right to commercialize any of our current or future product candidates. In such cases, our competitors may be able to bring products to market before we do, and the commercial viability of any of our current or future product candidates could be significantly reduced. Any of these occurrences may harm our business, financial condition, results of operations and prospects.

***We may find it difficult to enroll patients in our clinical trials. If we encounter difficulties or delays enrolling patients in our clinical trials, our clinical development activities could be delayed or otherwise adversely affected.*** 

Successful and timely completion of each clinical trial will require that we identify and enroll a specified and sufficient number of eligible patients to participate and remain in the trial until its conclusion. We may not be able to initiate or continue certain clinical trials if we are unable to identify and enroll a sufficient number of eligible patients to participate in these trials as required by the FDA or comparable foreign regulatory authorities outside the United States. Patient enrollment, a significant factor in the timing of clinical trials, is affected by many factors, including the size and characteristics of the patient population, the process for identifying patients, the proximity and availability of clinical trial sites for prospective patients, the inclusion and exclusion criteria for the trial, the design of the clinical trial, our ability to recruit clinical trial investigators with the appropriate competencies and experience, and competing clinical trials and clinicians' and patients' perceptions as to the potential advantages and risks of the product candidates being studied in relation to other available therapies, including any new products that may be approved for the indications we are investigating as well as any product candidates under development. We will be required to identify and enroll a sufficient number of patients for each of our clinical trials, obtain and maintain patient consent for each patient enrolled and monitor such patients adequately during and after treatment. Potential patients for any planned clinical trials may not be adequately diagnosed or identified with the diseases which we are targeting, which could adversely impact the outcomes of our trials and could have safety concerns for the potential patients. Potential patients for any planned clinical trials may also not meet the entry criteria for such trials.

Additionally, other pharmaceutical companies targeting obesity and overweight are recruiting clinical trial patients from these patient populations, which may make it more difficult to fully enroll our clinical trials. Our clinical trials will compete with marketed products that are available for use in the same disease areas as our product candidates and other clinical trials for investigational product candidates in the same disease areas as our product candidates. This competition could reduce the number and types of patients available to us, because some patients who might have opted to enroll in our clinical trials may instead opt to receive an approved therapy or enroll in a trial being conducted by one of our competitors. The eligibility criteria of our clinical trials, once established, may further limit the pool of available trial participants. If patients are unwilling or unable to participate in our trials for any reason, including the existence of concurrent clinical trials for similar target populations, the availability of approved therapies, or the fact that enrolling in our trials may prevent patients from taking a different product, or we otherwise have difficulty enrolling a sufficient number of patients, the timeline for recruiting patients, conducting trials and obtaining regulatory approval of any of our current or future product candidates may be delayed. Our inability to enroll a sufficient number of patients for any of our future clinical trials would result in significant delays or may require us to abandon one or more clinical trials altogether.

In addition, we rely on, and will continue to rely on, CROs and clinical trial sites to ensure proper and timely conduct of our clinical trials and preclinical studies. Though we have entered into agreements governing their services, we have limited influence over their actual performance. We cannot be certain that our assumptions used in determining expected clinical trial timelines are correct or that we will not experience delays or difficulties in enrollment, or be required by the FDA or other regulatory authority to increase our enrollment, which would result in the delay of completion of such trials beyond our expected timelines.

***Use of any of our current or future product candidates could be associated with side effects, adverse events or other properties or safety risks, which could delay or preclude regulatory approval, cause us to suspend or discontinue clinical trials, abandon any of our current or future product candidates, limit the commercial profile of an approved label or result in other significant negative consequences that could severely harm our business, financial condition, results of operations and prospects.*** 

Results of our, our collaborators' or any future collaborators' clinical trials could reveal a high and unacceptable severity and prevalence of expected or unexpected side effects or unexpected characteristics. Undesirable side effects caused by our product candidates when used alone or in combination with approved or investigational drugs could cause us or regulatory authorities or IRBs to interrupt, delay or halt clinical trials and could result in a more restrictive label, or lead to the delay or denial of regulatory approval by the FDA or comparable foreign regulatory authorities. The drug-related side effects could affect patient recruitment or the ability of

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enrolled patients to complete the trial or result in potential product liability claims. Any of these occurrences may harm our business, financial condition, results of operations and prospects significantly.

Moreover, if any of our current or future product candidates are associated with undesirable side effects in clinical trials or demonstrate characteristics that are unexpected, we may elect to abandon their development or limit their development to more narrow uses or subpopulations in which the undesirable side effects or other characteristics are less prevalent, less severe or more acceptable from a risk-benefit perspective, which may limit the commercial expectations for such product candidate, if approved. Additionally, adverse developments in clinical trials of product candidates conducted by others or adverse events associated with commercial products offered by others may cause the FDA or other regulatory oversight bodies to suspend or terminate our clinical trials or change the requirements for approval of any of our product candidates, or otherwise adversely affect the clinical and commercial development of our product candidates.

We may also be required to modify our development and clinical trial plans based on findings in our ongoing clinical trials or concerns of the FDA or other regulatory authorities. For example, the FDA has raised concerns regarding novel enteric coated absorption enhancing formulas for oral drugs, which could impact the development programs for our orally-administered product candidates.

It is possible that as we, our collaborators or any future collaborators test any of our current or future product candidates in larger, longer and more extensive clinical trials, including with different dosing regimens, or as the use of these product candidates becomes more widespread following any regulatory approval, more illnesses, injuries, discomforts and other adverse events than were observed in earlier trials, as well as new conditions that did not occur or went undetected in previous trials, may be discovered. If any such side effects become known later in development or upon approval, such findings may harm our business, financial condition, results of operations and prospects significantly.

In addition, we are currently and may in the future study any of our current or future product candidates in combination with other therapies, which may exacerbate adverse events associated with such product candidate. If significant adverse events or other side effects are observed in any of our ongoing or planned clinical trials, we may have difficulty recruiting patients to the clinical trials, or we may be required to abandon the trials or our development efforts of that product candidate altogether. We, the FDA, other comparable foreign regulatory authorities or an IRB may suspend clinical trials of a product candidate at any time for various reasons, including a belief that subjects in such trials are being exposed to unacceptable health risks or adverse side effects. Even if the side effects do not preclude the product candidate from obtaining or maintaining regulatory approval, undesirable side effects may inhibit market acceptance due to tolerability concerns as compared to other available therapies. Any of these developments could materially harm our business, financial condition and future prospects.

Additionally, if any of our product candidates receives regulatory approval, and we or others later identify undesirable side effects caused by such product, a number of potentially significant negative consequences could result. For example, the FDA could require us to adopt a Risk Evaluation and Mitigation Strategy (REMS) to ensure that the benefits of treatment with such product candidate outweigh the risks for each potential patient, which may include, among other things, a communication plan to health care practitioners, patient education, extensive patient monitoring or distribution systems and processes that are highly controlled, restrictive and more costly than what is typical for the industry. We or our collaborators may also be required to adopt a REMS or engage in similar actions, such as patient education, certification of health care professionals or specific monitoring, if we or others later identify undesirable side effects caused by any product that we develop alone. Other potentially significant negative consequences associated with adverse events include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•IRBs, ECs or safety monitoring committees may recommend that enrollment or dosing be placed on hold or that additional safety measures be implemented for ongoing clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may be required to suspend marketing of a product or we may decide to remove such product from the marketplace;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•regulatory authorities may withdraw or change their approvals of a product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•regulatory authorities may require additional warnings or contraindications on the label or limit access of a product to selective specialized centers with additional safety reporting and with requirements that patients be geographically close to these centers for all or part of their treatment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may be required to create a medication guide outlining the risks of a product for patients or to conduct post-marketing studies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may be required to change the way a product is dosed, distributed or administered, or conduct additional clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may be subject to limitations on how we may promote the product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we could be subject to fines, injunctions or the imposition of criminal or civil penalties, or be sued and held liable for harm caused to subjects or patients; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a product may become less competitive and our reputation may suffer.

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Any of these events could diminish the usage or otherwise limit the commercial success of our product candidates and prevent us from achieving or maintaining market acceptance of our product candidates, if approved by the FDA or other regulatory authorities.

If any of our current or future product candidates receive regulatory approval, they may be subject to stringent labeling requirements, including the potential imposition of a boxed warning. A boxed warning, also known as a "Black Box" warning, is ordinarily used to highlight for prescribers one of the following situations: (1) There is an adverse reaction so serious in proportion to the potential benefit from the drug (e.g., a fatal, life threatening or permanently disabling adverse reaction) that it is essential that it be considered in assessing the risks and benefits of using the drug; (2) or there is a serious adverse reaction that can be prevented or reduced in frequency or severity by appropriate use of the drug (e.g., patient selection, careful monitoring, avoiding certain concomitant therapy, addition of another drug or managing patients in a specific manner, avoiding use in a specific clinical situation); or (3) FDA approved the drug with restrictions to ensure safe use because the FDA concluded that the drug can be safely used only if distribution or use is restricted.

For example, the FDA has required the full prescribing information of other approved GLP-1 RAs, such as Wegovy and Zepbound, to carry a boxed warning regarding the risk of thyroid C-cell tumors. The boxed warnings state that semaglutide and tirzepatide, the active ingredients in Wegovy and Zepbound, respectively, cause thyroid C-cell tumors in rodents, but that it is unknown whether Wegovy and Zepbound cause thyroid C-cell tumors in humans. The boxed warnings for both drugs also indicate that they are contraindicated in patients with a personal or family history of medullary thyroid carcinoma or in patients with multiple endocrine neoplasia syndrome type 2. We expect that the label of our GLP-1 RA monotherapy or GLP-1 RA combination product candidates, if approved, may carry similar warnings.

If the FDA requires us to include a boxed warning in the prescribing information of any of our current or future product candidates, the inclusion of the boxed warning could adversely affect the market acceptance and commercial success of any of our current or future product candidates. The inclusion of a boxed warning could diminish the usage or otherwise limit the commercial success of our product candidates and prevent us from achieving or maintaining market acceptance of our product candidates, if approved by the FDA or other regulatory authorities.

***We currently, and may in the future, conduct certain of our clinical trials for our product candidates outside of the United States. However, the FDA and foreign regulatory authorities may not accept data from such trials, which could materially harm our business.*** 

We and our collaborators are currently conducting, and we, our collaborators and any future collaborators may in the future conduct clinical trials for any of our current or future product candidates outside the United States. The acceptance of study data from clinical trials conducted outside the United States or another jurisdiction by the FDA or comparable foreign regulatory authority may be subject to certain conditions or may not be accepted at all. For example, in cases where data from foreign clinical trials are intended to serve as the sole basis for regulatory approval in the United States, the FDA will generally not approve the application on the basis of foreign data alone unless the data are applicable to the U.S. population and U.S. medical practice; the trials were performed by clinical investigators of recognized competence and pursuant to GCP regulations; and the data may be considered valid without the need for an on-site inspection by the FDA, or if the FDA considers such inspection to be necessary, the FDA is able to validate the data through an on-site inspection or other appropriate means. In addition, even where the foreign study data are not intended to serve as the sole basis for approval, if the relevant study was not conducted pursuant to an IND, the FDA will not accept the data as support for a marketing application unless the study was conducted in accordance with GCP requirements and the FDA is able to validate the data from the study through an on-site inspection if deemed necessary. Many foreign regulatory authorities have similar requirements for clinical data gathered outside of their respective jurisdictions. In addition, such foreign trials would be subject to the applicable local laws of the foreign jurisdictions where the trials are conducted. There can be no assurance that the FDA or any comparable foreign regulatory authority will accept data from trials conducted outside of the United States or the applicable jurisdiction. If the FDA or any comparable foreign regulatory authority does not accept such data from our clinical trials of any of our current or future product candidates, we would need to conduct additional trials, which could be costly and time-consuming, and which may not ultimately support approval in the applicable jurisdiction.

Conducting clinical trials outside the United States also exposes us to additional risks, including risks associated with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•foreign regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•foreign exchange fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•compliance with foreign manufacturing, customs, shipment, and storage requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•inconsistent standards for reporting and evaluating clinical data and adverse events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•diminished protection of intellectual property in some countries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•public health concerns or political instability, civil unrest, war or similar events that may jeopardize our ability to commence, conduct or complete a clinical trial and evaluate resulting data.

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***Interim, topline and preliminary data from our clinical trials and preclinical studies that we announce or publish from time to time may change as more patient data become available and are subject to audit and verification procedures that could result in material changes in the final data.*** 

From time to time, we have and may in the future publicly disclose interim, topline or preliminary data from our clinical trials and preclinical studies, which is based on a preliminary analysis of then-available data, and the results and related findings and conclusions are subject to change following a more comprehensive review of the data related to the particular study or trial. We may also make assumptions, estimations, calculations and conclusions as part of our analyses of data, and we may not have received or had the opportunity to fully and carefully evaluate all data. As a result, the interim, topline or preliminary results that we report may differ from future results of the same studies or trials, or different conclusions or considerations may qualify such results once additional data have been received and fully evaluated. Topline and preliminary data also remain subject to audit and verification procedures that may result in the final data being materially different from the topline or preliminary data we previously published. As a result, topline and preliminary data should be viewed with caution until the final data are available. Interim data from clinical trials are further subject to the risk that one or more of the clinical outcomes may materially change as patient enrollment continues and more patient data become available. Adverse differences between interim, topline or preliminary data and final data could significantly harm our business prospects. Further, disclosure of interim data by us or by our competitors could result in volatility in the price of our common stock.

In addition, others, including regulatory authorities, may not accept or agree with our assumptions, estimates, calculations, conclusions or analyses or may interpret or weigh the importance of data differently, which could impact the value of the particular program, the approvability or commercialization of the particular product candidate or product, and our company in general. Moreover, the information we choose to publicly disclose regarding a particular study or clinical trial is based on what is typically extensive information, and you or others may not agree with what we determine is material or otherwise appropriate information to include in our disclosure, and any information we determine not to disclose may ultimately be deemed significant with respect to future decisions, conclusions, views, activities or otherwise regarding a particular drug, product candidate or our business. If the interim, topline or preliminary data that we report differ from actual results, or if others, including regulatory authorities, disagree with the conclusions reached, our ability to obtain approval for and commercialize any of our current or future product candidates may be harmed, which could harm our business, financial condition, results of operations and future prospects.

***The regulatory approval processes of the FDA and comparable foreign authorities are lengthy, time-consuming and inherently unpredictable, and if we are ultimately unable to obtain regulatory approval for our product candidates, our business will be substantially harmed.*** 

We are not permitted to market our product candidates in the U.S. until we receive regulatory approval of a BLA or an NDA from the FDA. The process of obtaining such regulatory approval is expensive, often takes many years following the commencement of clinical trials and can vary substantially based upon the type, complexity and novelty of the product candidates involved, as well as the target indications and patient population. Approval policies or regulations may change, and the FDA and comparable foreign regulatory authorities have substantial discretion in the approval process, including the ability to delay, limit or deny approval of a product candidate for many reasons. Despite the time and expense invested in clinical development of product candidates, regulatory approval of a product candidate is never guaranteed. Of the large number of drugs in development, only a small percentage successfully complete the FDA or foreign regulatory approval processes and are commercialized. We have not obtained regulatory approval for any product candidate, and it is possible that none of our existing product candidates or any product candidates we may seek to develop in the future will ever obtain regulatory approval.

Prior to obtaining approval to commercialize a product candidate in the U.S. or abroad, we must demonstrate with substantial evidence from adequate and well-controlled clinical trials, and to the satisfaction of the FDA or comparable foreign regulatory authorities, that such product candidates are safe, pure, potent and/or effective for their intended uses, and in the case of biological products in the U.S., that such product candidates are safe, pure and potent for their intended uses. Results from nonclinical studies and clinical trials can be interpreted in different ways. Even if we believe available nonclinical or clinical data support the safety, purity, potency or efficacy of our product candidates, such data may not be sufficient to obtain approval from the FDA and comparable foreign regulatory authorities. The FDA or comparable foreign regulatory authorities, as the case may be, may also require us to conduct additional preclinical studies or clinical trials for our product candidates either prior to or post-approval, or may object to elements of our clinical development program.

We are developing certain product candidates that we believe will be regulated as combination products by the FDA and comparable regulatory authorities. Combination products require coordination within the FDA and comparable regulatory agencies for review of each of their components (e.g., drug, device, and/or biologic components) that would ordinarily require review by different centers within the FDA for their authorization as standalone products. Although the FDA and comparable foreign agencies have systems in place for the review of combination products, we may experience additional delays in the development and commercialization of our product candidates due to regulatory timing constraints and uncertainties in the product development and approval process. Moreover, although we anticipate that the drug or device component of any product candidates we develop will be reviewed in connection with the review of the underlying biologic license application, and that no separate marketing application for the drug or device component of such product candidates will be required where those components are expected to be marketed with

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the underlying biologic, the FDA or comparable regulatory authorities may disagree and require that we obtain a separate marketing authorization of the drug or device component, which could further delay or prevent marketing approval of such combination product candidates.

The FDA or comparable foreign regulatory authorities can delay, limit or deny approval of a product candidate for many reasons, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•such authorities may disagree with the design or execution of our clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•negative or ambiguous results from our clinical trials or results may not meet the level of statistical significance, clinical significance, or persuasiveness required by the FDA or comparable foreign regulatory agencies for approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•serious and unexpected drug-related side effects may be experienced by participants in our clinical trials or by patients using drugs similar to our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the population studied in the clinical trial may not be sufficiently broad or representative to assure safety in the full population for which we seek approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•such authorities may not accept clinical data from trials that are conducted at clinical facilities or in countries where the standard of care is potentially different from that of their own country;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may be unable to demonstrate that a product candidate's clinical and other benefits outweigh its safety risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•such authorities may disagree with our interpretation of data from preclinical studies or clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•such authorities may disagree with us regarding the formulation, labeling and/or the product specifications of our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•approval may be granted only for indications that are significantly more limited than those sought by us, and/or may include significant restrictions on distribution and use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•such authorities may find deficiencies in the manufacturing processes or facilities of the third-party manufacturers with which we currently contract or which we may utilize in the future for clinical and commercial supplies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the approval policies or regulations of such authorities or the laws they enforce may significantly change in a manner rendering our clinical data insufficient for approval; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•such authorities may not accept a submission due to, among other reasons, the content or formatting of the submission.

With respect to foreign markets, approval procedures vary among countries and, in addition to the foregoing risks, may involve additional product testing, administrative review periods and agreements with pricing authorities. In addition, even if we were to obtain approval, regulatory authorities may approve our product candidates for fewer or more limited indications than we request, may not approve the price we intend to charge for our products, may grant approval contingent on the performance of costly post-marketing clinical trials or other commitments, or may approve a product candidate with a label that does not include the labeling claims necessary or desirable for the successful commercialization of that product candidate. Any of the foregoing scenarios could materially harm the commercial prospects for our product candidates.

***Additional time may be required to obtain marketing authorizations for any product candidates that we develop as biologic-device combination products.*** 

We expect our current injectable product candidates will be regulated as combination products, as our therapeutic candidates will be administered by the patient using a disposable injector device marketed together with the therapeutic candidate, if approved, and in at least one case, we anticipate combining a drug and biologic candidate together for administration using a device. Development of a product candidate as a combination product candidate requires close coordination within the FDA and within comparable regulatory agencies for review of each of the drug, biologic and device components that comprise the product and would typically be reviewed by different centers within the FDA if offered for use as standalone products. For example, the FDA's review of a marketing application for a biologic-device combination that has a primary mode of action as a biologic would likely be subject to a biologics license application with the Center for Biologics Evaluation and Research as the lead center, with coordination with the Center for Devices and Radiological Health for the review of the device component. Although the FDA and comparable foreign agencies have or may have systems in place for the review and approval of such combination products, we may experience additional delays in the development and commercialization of such product candidates due to regulatory timing constraints and uncertainties in the product development and approval process. Moreover, although we anticipate that the device component of any combination product candidates we develop will be reviewed within the usual time frames expected for the marketing authorization application for an underlying therapeutic candidate, and that no separate marketing application for the device components of such product candidates will be required in the United States, the FDA or comparable regulatory authorities may delay approval or require us to conduct additional studies with the device, which may delay the approval of the combination product.

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***Even if we obtain FDA approval for any of our product candidates in the United States, we may never obtain approval for or commercialize such candidates in any other jurisdiction, which would limit our ability to realize their full market potential.*** 

In order to market any products in any particular jurisdiction, we must establish and comply with numerous and varying regulatory requirements on a country-by-country basis regarding safety and efficacy. Approval by the FDA in the United States does not ensure approval by regulatory authorities in other countries or jurisdictions. However, the failure to obtain approval in one jurisdiction may negatively impact our ability to obtain approval elsewhere. In addition, clinical trials conducted in one country may not be accepted by regulatory authorities in other countries, and regulatory approval in one country does not guarantee regulatory approval in any other country.

Approval processes vary among countries and can involve additional product testing and validation, as well as additional administrative review periods. Seeking foreign regulatory approval could result in difficulties and increased costs for us and require additional preclinical studies or clinical trials which could be costly and time-consuming. Regulatory requirements can vary widely from country to country and could delay or prevent the introduction of our products in those countries. We do not have any product candidates approved for sale in any jurisdiction, including in international markets, and we do not have experience in obtaining regulatory approval in international markets. If we fail to comply with regulatory requirements in international markets or to obtain and maintain required approvals, or if regulatory approvals in international markets are delayed, our target market will be reduced and our ability to realize the full market potential of any product we develop will be adversely impacted.

***Even if we receive regulatory approval for any product candidate, we will be subject to ongoing regulatory obligations and continued regulatory review, which may result in significant additional expense, and we may be subject to penalties if we fail to comply with regulatory requirements.*** 

For any regulatory approvals that we may receive for our product candidates, the manufacturing processes, labeling, packaging, distribution, adverse event reporting, storage, advertising, promotion, sampling, import, export and recordkeeping for our product candidates will be subject to extensive and ongoing regulatory requirements. These requirements include submissions of safety and other post-marketing information and reports, registration, including both federal and state requirements in the United States and requirements of comparable foreign regulatory authorities, as well as ongoing compliance with cGMPs and GCPs for any clinical trials. The holder of an NDA or BLA also must submit supplemental applications and obtain prior approval for certain changes to the approved product, product labeling, or manufacturing process.

Manufacturers of drug and biological products and their facilities are subject to continual review and periodic, unannounced inspections by the FDA and other regulatory authorities for compliance with cGMPs and other applicable regulations and standards. Accordingly, we will need to continue to expend time, money, and effort in all areas of regulatory compliance, including manufacturing, production, and quality control. Manufacturers and other parties involved in the supply chain must also meet chain of distribution requirements and build electronic, interoperable systems for product tracking and tracing and for notifying the FDA of counterfeit, diverted, stolen, and intentionally adulterated products or other products that are otherwise unfit for distribution in the United States.

In addition, any regulatory approvals we may receive will require the submission of periodic reports to regulatory authorities and ongoing surveillance to monitor the safety and efficacy of the product. Such approvals may also contain significant limitations related to use restrictions for specified age groups, warnings, precautions or contraindications, and may include burdensome post-approval study or risk management requirements. For example, the FDA may require a REMS as a condition of approval of our product candidates, which could include requirements for a medication guide, physician training and communication plans or additional elements to ensure safe use, such as restricted distribution methods, patient registries and other risk minimization tools.

If we or a regulatory agency discover previously unknown problems with a product, such as adverse events of unanticipated severity or frequency, or problems with the facilities where the product is manufactured, a regulatory agency may impose restrictions on that product, the manufacturing facility or us, including requiring recall or withdrawal of the product from the market or suspension of manufacturing. This may also result in revisions to the approved labeling to add new safety information, imposition of post-marketing studies or clinical trials to assess new safety risks, or imposition of distribution restrictions or other restrictions under a REMS program. In addition, failure to comply with FDA and other comparable foreign regulatory requirements may subject our company to administrative or judicially imposed sanctions, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•restrictions on the marketing or manufacturing of our products, withdrawal of the product from the market or voluntary or mandatory product recalls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•restrictions on product distribution or use, or requirements to conduct post-marketing studies or clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fines, restitutions, disgorgement of profits or revenues, warning letters, untitled letters or holds on clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•refusal by the FDA to approve pending applications or supplements to approved applications submitted, or suspension or revocation of approvals;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•revisions to the labeling, including limitations of use or requirements for additional warnings, contraindications, or other safety information, including boxed warnings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•product seizures or detentions, or refusal to permit the import or export of our products; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•injunctions or the imposition of civil or criminal penalties.

The occurrence of any event or penalty described above may inhibit our ability to commercialize our product candidates and generate revenue and could require us to expend significant time and resources in response and could generate negative publicity.

The FDA's and other regulatory authorities' policies may change and additional government regulations may be promulgated that could prevent, limit or delay marketing authorization of any product candidates we develop. The U.S. Supreme Court's July 2024 decision to overturn prior established case law giving deference to regulatory agencies' interpretations of ambiguous statutory language has introduced uncertainty regarding the extent to which the FDA's regulations, policies and decisions may become subject to increasing legal challenges, delays and/or changes. We also cannot predict the likelihood, nature or extent of government regulation that may arise from future legislation or administrative action, either in the United States or abroad. If we are slow or unable to adapt to changes in existing requirements or the adoption of new requirements or policies, or if we are not able to maintain regulatory compliance, we may be subject to enforcement action and we may not achieve or sustain profitability.

***The FDA and other regulatory agencies actively enforce the laws and regulations prohibiting the promotion of off-label uses.*** 

The FDA and other regulatory agencies strictly regulate marketing, labeling, advertising and the promotional claims that may be made about prescription products, such as any of our current or future product candidates, if approved. In particular, a product may not be promoted for uses that are not approved by the FDA or other regulatory agencies as reflected in the product's approved labeling. If we receive regulatory approval for any of our current or future product candidates, physicians may prescribe, in their independent professional medical judgment, legally available products for uses that are not described in the product's labeling and that differ from those tested by us and approved by the FDA. Physicians may believe that such off-label uses are the best treatment for some patients in varied circumstances. The FDA does not regulate the behavior of physicians in their choice of treatments. The FDA does, however, restrict a manufacturer's communications about off-label use of their products. Similar requirements apply in foreign jurisdictions. If we are found to have promoted such off-label uses, we may become subject to significant liability. The U.S. federal government has levied large civil and criminal fines against companies for alleged improper promotion of off-label use and has enjoined several companies from engaging in off-label promotion. The government has also required companies to enter into consent decrees or imposed permanent injunctions under which specified promotional conduct is changed or curtailed. However, companies may share truthful and not misleading information that is otherwise consistent with a product's FDA-approved labeling. If we cannot successfully manage the promotion of any of our current or future product candidates, if approved, we could become subject to significant liability, which would materially adversely affect our business and financial condition.

***Disruptions at the FDA, the SEC, and other government agencies caused by funding shortages, staffing limitations or global health concerns could hinder their ability to hire and retain key leadership and other personnel, prevent new products and services from being developed or commercialized in a timely manner, or otherwise prevent those agencies from performing normal business functions on which the operation of our business may rely, which could have a negative impact on our business.*** 

The ability of the FDA or foreign regulatory authorities to review and approve new products can be affected by a variety of factors, including government budget and funding levels, ability to hire and retain key personnel and accept the payment of user fees, and statutory, regulatory, and policy changes. In addition, government funding of the SEC and other government agencies on which our operations may rely, including those that fund research and development activities, is subject to the political process, which is inherently fluid and unpredictable.

Disruptions at the FDA and other agencies may also prolong the time necessary for new drugs or biologics to be reviewed and/or approved by necessary government agencies, which would adversely affect our business. For example, in recent years, the U.S. government has shut down several times and certain regulatory agencies, such as the FDA and the SEC, have had to furlough critical FDA, SEC, and other government employees and stop critical activities. In addition, the current U.S. Presidential administration has issued certain policies and Executive Orders directed towards reducing, and subsequent reductions have occurred to, employee headcount and costs associated with U.S. administrative agencies, including the FDA, and it remains unclear the degree to which these efforts may limit or otherwise adversely affect the FDA's ability to conduct routine activities.

If a prolonged government shutdown were to occur, or if renewed global health concerns, funding shortages or staffing limitations hinder or prevent the FDA or other regulatory authorities from conducting their regular inspections, reviews, or other regulatory activities, such events could significantly affect the ability of the FDA to review and process our regulatory submissions in a timely manner, which could have a material adverse effect on our business.

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**Risks Related to Our Reliance on Third Parties** 

***We rely on third parties to conduct our clinical trials and preclinical studies. If these third parties do not successfully carry out their contractual duties, comply with applicable regulatory requirements, or meet expected deadlines, any of our current or future product candidates and our ability to seek or obtain regulatory approval for or commercialize any of our current or future product candidates may be delayed.*** 

We are dependent on third parties to assist us in conducting our clinical trials and preclinical studies. Specifically, we rely on, and intend to continue to rely on, medical institutions, clinical investigators, CROs and consultants to conduct our preclinical studies and clinical trials in accordance with our clinical protocols and applicable regulatory requirements. These CROs, investigators and other third parties play a significant role in the conduct and timing of these trials and subsequent collection and analysis of data. While we have and will have agreements governing the activities of our third-party contractors, we have limited influence over their actual performance. Nevertheless, we are responsible for ensuring that each of our clinical trials is conducted in accordance with the applicable protocol and legal, regulatory and scientific standards and requirements, and our reliance on our CROs and other third parties does not relieve us of our regulatory responsibilities. In addition, we and our CROs are required to comply with GLP requirements, as applicable, for certain preclinical studies, as well as GCP requirements, which are regulations and guidelines enforced by the FDA and comparable foreign regulatory authorities for any of our current and future clinical trials of product candidates. Regulatory authorities enforce these requirements through periodic inspections of laboratories conducting GLP studies, trial sponsors, principal investigators and trial sites. If we, our investigators, or any of our CROs or trial sites fail to comply with applicable GLP or GCP or other requirements, the clinical data generated in our preclinical studies or clinical trials may be deemed unreliable, the statistical analysis and robustness of our datasets could be compromised, and the FDA or comparable foreign regulatory authorities may require us to perform additional preclinical studies or clinical trials before approving our marketing applications, if ever. Further, our clinical trials must be conducted with investigational products produced in accordance with cGMP regulations. Failure to comply with these regulations may require us to repeat clinical trials, which would delay the development and regulatory approval process.

Furthermore, these CROs and investigators are not our employees, and we will not be able to control, other than by contract, the amount of resources, including time, which they devote to our product candidates and clinical trials. There is no guarantee that any of our CROs, investigators or other third parties will devote adequate time and resources to such trials or studies or perform as contractually required. If any of these third parties fail to meet expected deadlines, adhere to our clinical protocols or meet regulatory requirements, or otherwise perform in a substandard manner, our clinical trials may be extended, delayed or terminated. In addition, many of the third parties with whom we contract may also have relationships with other commercial entities, including our competitors, for whom they may also be conducting clinical trials or other development activities that could harm our competitive position.

Our CROs have the right to terminate their agreements with us in the event of an uncured material breach and under other specified circumstances. If any of our relationships with these third parties terminate, we may not be able to enter into arrangements with alternative third parties on commercially reasonable terms, in a timely manner or at all. Switching or adding additional CROs, investigators and other third parties involves additional cost and requires our management's time and focus. In addition, there is a natural transition period when a new CRO commences work. As a result, delays occur, which can materially impact our ability to meet our desired clinical development timelines. Though we work to carefully manage our relationships with our CROs, investigators and other third parties, there can be no assurance that we will not encounter challenges or delays in the future or that these delays or challenges will not have a material adverse impact on our business, financial condition, results of operations and prospects.

***We currently rely on third parties for the manufacture and shipping of our product candidates for clinical development, which subjects us to risks associated with international operations, including exposure to tariffs, and increases the risk that we will not have sufficient quantities of our current or future product candidates or such quantities at an acceptable cost, which could delay, prevent, or impair our development or commercialization efforts.*** 

We currently rely on third parties for the manufacture and shipping of our product candidates for clinical development, some of which operate outside of the United States. Reliance on third-party manufacturers may expose us to different risks than if we were to manufacture product candidates ourselves. The facilities used by our third-party manufacturers to manufacture any of our current or future product candidates must be approved for the manufacture of such product candidate by the FDA and any comparable foreign regulatory authority pursuant to inspections that will be conducted after we submit a marketing application to the FDA or any comparable submission to a foreign regulatory authority. We do not currently control the manufacturing process of, and are completely dependent on, third-party manufacturers for compliance with cGMP requirements for manufacture of products. There can be no assurance that our clinical product supplies will not be limited, interrupted, terminated, or will be of satisfactory quality or be available at acceptable prices. If we or these third-party manufacturers cannot successfully manufacture material that conforms to our specifications and the strict regulatory requirements of the FDA or any comparable foreign regulatory authority, we and these third-party manufacturers will not be able to secure and/or maintain regulatory approval for our manufacturing facilities.

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In addition, we have no control over the ability of third-party manufacturers to maintain adequate quality control, quality assurance and qualified personnel. If the FDA or any comparable foreign regulatory authority does not authorize the manufacture of any of our current or future product candidates at these facilities or if it withdraws any such authorization in the future, we may need to find alternative manufacturing facilities, which would significantly impact our ability to develop, obtain regulatory approval for or market any of our current or future product candidates, if approved. Our failure, or the failure of our third-party manufacturers, to comply with applicable regulations could result in sanctions being imposed on us, including clinical holds, fines, injunctions, civil penalties, delays, suspension or withdrawal of approvals, seizures or recalls of any of our current or future product candidates, operating restrictions and criminal prosecutions, any of which could significantly and adversely affect supplies of any of our current or future product candidates.

Our or a third party's failure to execute on our manufacturing requirements on commercially reasonable terms, in a timely manner and in compliance with cGMP or other regulatory requirements could adversely affect our business in a number of ways, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an inability to initiate or continue clinical trials of any of our current or future product candidates, or a hold on clinical trials of any of our current or future product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•delay in submitting marketing applications, or receiving regulatory approvals, for any of our current or future product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•subjecting third-party manufacturing facilities to additional inspections by regulatory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•requirements to cease development or to recall batches of any of our current or future product candidates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•in the event of approval to market and commercialize any of our current or future product candidates, an inability to meet commercial demands for any of our current or future product candidates.

In addition, we have entered into a supply agreement with Amneal Biopharma Solutions Private Limited, a subsidiary of Amneal Pharmaceuticals, Inc. (Amneal). Pursuant to the agreement, Amneal will serve as our preferred supply partner of certain product candidates for developed markets, including the United States and Europe, and will develop, manufacture and supply certain drug substances and oral and injectable drug products for us for clinical and commercial use. We believe this agreement will provide us with sufficient capacity to satisfy our initial commercialization efforts for such current or future product candidates, if approved. Pursuant to the agreement, we will provide funding in support of the construction of two new greenfield manufacturing facilities in India, one for the manufacture of drug substances (peptide synthesis) and one for drug products (sterile fill-finish manufacturing), which Amneal will use to manufacture peptide drug substances and injectable peptide products for us, itself and its other customers. There can be no assurance that the new facilities will be completed and if completed, that the facilities will provide us with sufficient capacity to satisfy our commercialization efforts, that we will recoup the extent of our funding and investment in the new facilities, or that we or a regulator will find the facility to be in compliance with applicable regulatory or product requirements. Further, the successful completion of the facilities is subject to financial and operational risks of Amneal which is beyond our control. See the section titled "*Business—Licensing, Partnerships and Collaborations*" within our Annual Report for additional information.

Other than our agreement with Amneal, we do not currently have any long-term commitments or commercial supply agreements with our third-party manufacturers. We may be unable to establish any other long-term supply agreements with third-party manufacturers or to do so on acceptable terms or at all, which increases the risk of failing to timely obtain sufficient quantities of our product candidates or such quantities at an acceptable cost. Even if we are able to establish agreements with third-party manufacturers, reliance on third-party manufacturers entails additional risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure of third-party manufacturers to comply with regulatory requirements and maintain quality assurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•breach of the manufacturing agreement by the third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure to manufacture our product according to our specifications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure to obtain adequate raw materials and other materials required for manufacturing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure to manufacture our product according to our schedule or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure to successfully scale up manufacturing capacity, if required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•misappropriation of our proprietary information, including our trade secrets and know-how;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•obligation to pay tariff duties for products imported from certain countries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•termination or nonrenewal of the agreement by the third party at a time that is costly or inconvenient for us.

Further, any of our current and future product candidates that we may develop may compete with other product candidates and products for access to manufacturing facilities.

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We currently use third-party vendors located in foreign countries to manufacture certain of our product candidates for clinical development. In 2025, the U.S. Presidential Administration announced new tariffs on certain products manufactured in China and announced and then paused, lifted or reduced tariffs on certain products manufactured in many other countries around the world. Additional tariffs may be announced in the future. In addition, the U.S. Presidential Administration has announced a 100% tariff on imported pharmaceutical products, effective October 1, 2025, although it is currently delayed. Certain major drug producers and manufacturers are in negotiations with the U.S. Presidential Administration to receive relief from such tariffs. As a result of these negotiations, certain manufacturers, such as Pfizer, have announced their participation in a new direct purchasing platform called "TrumpRx.gov," designed to offer discounts on their products and some specialty brands. Details regarding potential platform, as well as any potential impact on our business, offerings or the Merger, are unclear at this time. We intend to design our clinical supply arrangements and any commercial manufacturing arrangements, including with Amneal, to be diversified across suppliers and geographies to provide flexibility and mitigate risk, including the impact of tariffs on pharmaceutical products, if any. However, there can be no assurances that we will be successful in doing so. If the manufacturing of our product candidates or any approved products requires us to pay significant tariffs, our results of operations and financial condition could be adversely affected.

Any performance failure on the part of our existing or future manufacturers, suppliers or vendors could delay clinical development or regulatory approval, and any related remedial measures may be costly or time-consuming to implement. In addition, there are a limited number of manufacturers capable of manufacturing NuSH analog peptides, such as GLP-1 RAs, and therefore any need to switch third-party manufacturers may result in development and commercialization delays and increase our operating costs. For example, the high prevalence of obesity and overweight, and the high interest in approved NuSH analog peptides, has contributed to drug shortages for Wegovy and Zepbound. If our existing or future third-party manufacturers and suppliers cannot perform as agreed or cannot fulfill our commercial supply requirements, we may be required to replace such manufacturers or suppliers and we may be unable to replace them on a timely basis or at all. If we later switch third-party manufacturers, we may be unable to demonstrate comparability between lots produced previously and those produced by such new third-party manufacturers, in which case we may be required to gather additional data utilizing material produced by such new third-party manufacturers before we are able to submit a BLA, NDA or similar marketing application for our product candidates, if ever.

As a result, our current and anticipated future dependence upon others for the manufacture of any of our current or future product candidates may adversely affect our future profit margins and our ability to commercialize any products that receive regulatory approval on a timely and competitive basis.

***We have entered into license and collaboration agreements, and may in the future enter into further strategic alliances, to maximize the potential of our product candidates, and we may not realize the anticipated benefits of such collaborations or alliances. We may continue to form collaborations or alliances in the future with respect to any of our current or future product candidates, but may be unable to do so or to realize the potential benefits of such transactions, which may cause us to alter or delay our development and commercialization plans.*** 

We have entered into license and collaboration agreements, and may in the future seek to enter into collaborations, joint ventures, additional licenses and other similar arrangements for the development or, if approved, commercialization of any of our current and future product candidates due to capital costs required to develop or commercialize such product candidates or otherwise. For example, we have entered into a supply agreement with Amneal and license agreements with D&D Pharmatech Inc (D&D), and Imperial College of Science, Technology and Medicine (Imperial College) pursuant to which, for the latter two agreements, we have exclusive and worldwide rights to develop and commercialize our product candidates. For a more complete description of these agreements, see the section titled "*Business—Licensing, Partnerships and Collaborations*" within our Annual Report. We may not be successful in our efforts to establish or maintain collaborations because our research and development pipeline may be insufficient, future product candidates may be deemed to be at too early of a stage of development for collaborative effort or third parties may not view any of our current or future product candidates as having the requisite potential to demonstrate safety and efficacy, or significant commercial opportunity.

We may have conflicts with our current or future collaborators, such as conflicts concerning the interpretation of preclinical or clinical data, the achievement of milestones, the interpretation of contractual obligations, payments for services, development obligations, or the ownership of intellectual property developed during our collaboration. Moreover, a collaborator with marketing and distribution rights to one or more products may not commit sufficient resources to the marketing and distribution of such product or products. If any conflicts arise with any of our collaborators, such collaborator may act in a manner that is adverse to our best interests. Any such disagreement could result in one or more of the following, each of which could delay or prevent the development or commercialization of our product candidates, and in turn prevent us from generating revenue: disputes regarding milestone payments or royalties; uncertainty regarding ownership of intellectual property rights arising from our collaborative activities, which could prevent us from entering into additional collaborations; unwillingness by the collaborator to cooperate in the development or manufacture of a product candidate, including providing us with data or materials; unwillingness on the part of a collaborator to keep us informed regarding the progress of its development and commercialization activities or to permit public disclosure of the results of those activities; initiating of litigation or alternative dispute resolution options by either party to resolve the dispute; or attempts by either party to terminate the agreement.

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In addition, we face significant competition in seeking appropriate strategic partners, and the negotiation process can be time-consuming and complex. Even if we are successful in our efforts to establish or maintain such collaborations, the terms that we agree upon may not be favorable to us. As a result, we may need to relinquish valuable rights to our future revenue streams, research and development programs, intellectual property, any of our current or future product candidates, or grant licenses on terms that may not be favorable to us, as part of any such arrangement, and such arrangements may restrict us from entering into additional agreements with other potential collaborators. In addition, our current collaborations limit, and potential future collaborations may limit, our control over the amount and timing of resources that our collaborators will dedicate to the development or commercialization of any of our current or future product candidates. Our ability to generate revenue from these arrangements will depend on any current or future collaborators' abilities to successfully perform the functions assigned to them in these arrangements. We cannot be certain that, following a collaboration, license, or strategic transaction, we will achieve an economic benefit that justifies such transaction, and such transaction may not yield additional development product candidates for our pipeline. Furthermore, we may not be able to maintain such collaborations if, for example, the development or approval of any of our current or future product candidates are delayed, the safety of any such product candidate is questioned, or the sales of any of our current or future product candidates, if approved, are unsatisfactory.

In addition, future collaborations may be terminable by our collaborators and strategic partners, and we may not be able to adequately protect our rights under these agreements. Furthermore, strategic partners may negotiate for certain rights to control decisions regarding the development and, if approved, commercialization of any of our current or future product candidates, and may not conduct those activities in the same manner as we do. Any termination of our current collaborations or collaborations we enter into in the future, or any delay in entering into collaborations related to any of our current or future product candidates, could delay the development and, if approved, commercialization of such product candidates, and reduce their competitiveness if they reach the market, which could have a material adverse effect on our business, financial condition, results of operations and future prospects.

***Our reliance on third parties requires us to share our trade secrets, which increases the possibility that a competitor or other third party will discover them or that our trade secrets will be misappropriated or disclosed.*** 

Because we currently rely on third parties to manufacture our product candidates and to perform quality testing, we must, at times, share our proprietary technology and confidential information, including trade secrets, with them. We seek to protect our proprietary technology, in part, by entering into confidentiality agreements, and, if applicable, material transfer agreements, collaborative research agreements, service agreements, consulting agreements or other similar agreements with our 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 our confidential information. Despite the contractual provisions employed when working with third parties, the need to share trade secrets and other confidential information increases the risk that such trade secrets become known by our competitors or other third parties, are intentionally or inadvertently incorporated into the technology of others, or are disclosed or used in violation of these agreements. Given that our proprietary position is based, in part, on our know-how and trade secrets and despite our efforts to protect our trade secrets, a competitor's or other third party's discovery of our proprietary technology and confidential information or other unauthorized use or disclosure of such technology or information would impair our competitive position and may have a material adverse effect on our business, financial condition, results of operations and prospects.

**Risks Related to Commercialization of Our Product Candidates** 

***We face significant competition from entities that have made substantial investments into developing novel treatment for patients with obesity and overweight, including large pharmaceutical companies with approved therapies in our current indications, and biopharmaceutical, specialty pharmaceutical and biotechnology companies developing novel treatments and technology platforms.*** 

The development and commercialization of therapies for the treatment of obesity and overweight is highly competitive. Our product candidates, if approved, will face significant competition, including from well-established, currently marketed therapies that have been developed by large, well-known pharmaceutical companies, and our failure to demonstrate a meaningful improvement to the existing standard of care may prevent us from achieving significant market penetration. In particular, there is intense competition in the obesity and overweight field, especially with the advent of GLP-1 RAs, such as Wegovy, marketed by Novo Nordisk, and Zepbound, marketed by Eli Lilly. There are numerous other companies that have commercialized or are developing treatments for obesity and overweight that we will compete with, including Amgen, AstraZeneca, Boehringer Ingelheim, Merck, QL Biopharma, Roche, Structure Therapeutics, Viking Therapeutics, AbbVie and Zealand Pharma. While we believe that our platform and our knowledge, experience and scientific resources provide us with competitive advantages, we face competition from these companies and other major pharmaceutical and biotechnology companies, including specialty pharmaceutical companies, and academic institutions, governmental agencies and public and private research institutions, among others.

These aforementioned products have been marketed for several years and are well established among physicians, patients, guidelines and third-party payers, creating potential adoption challenges for new entrants, such as requiring demonstration of incremental value or benefits and/or reduction of healthcare system costs. These challenges will impact current and future products as they look to enter or expand the market.

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We anticipate that we will continue to face increasing competition as new therapies and combinations thereof, and related data, emerge. Competitors, independently or through collaboration, are developing products that potentially directly compete with our current of future product candidates and which may be longer lasting or more efficacious, or receive FDA or other applicable regulatory approval more rapidly than any of our current or future product candidates. Our commercial opportunity could be reduced or eliminated if our competitors develop and commercialize products that are more effective, have fewer or less severe side effects, are more convenient or are less expensive than any products that we may develop. Our competitors also may obtain FDA or other applicable regulatory approval for their products more rapidly than we may obtain approval for ours, which could result in our competitors establishing a strong market position before we are able to enter the market. In addition, our ability to compete may be affected in many cases by insurers or other third-party payors seeking to encourage the use of generic products. There are generic products currently on the market for certain of the indications that we are pursuing and additional products are expected to become available on a generic basis over the coming years. If our product candidates are approved, we expect that they will be priced at a significant premium over competitive generic products.

Many of our current or potential competitors, either alone or with their collaboration partners, have significantly greater financial resources and expertise in research and development, manufacturing, preclinical testing, conducting clinical trials, obtaining regulatory approvals and marketing approved products than we do. Mergers and acquisitions in the pharmaceutical and biotechnology industries may result in even more resources being concentrated among a smaller number of our competitors. Early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. These third parties compete with us in recruiting and retaining qualified management and other personnel and establishing clinical trial sites and participants registration for clinical trials, as well as in acquiring technologies complementary to, or necessary for, our programs.

***Any product candidates for which we intend to seek approval as biologic products may face competition sooner than anticipated.*** 

The Biologics Price Competition and Innovation Act of 2009 (BPCIA) established an abbreviated approval pathway for biological products that are biosimilar to or interchangeable with an FDA-licensed reference biological product. Under the BPCIA, an application for a biosimilar product may not be submitted to the FDA until four years following the date that the reference product was first licensed by the FDA. In addition, the approval of a biosimilar product may not be made effective by the FDA until 12 years from the date on which the reference product was first licensed. During this 12-year period of exclusivity, another company may still market a competing version of the reference product if the FDA approves a full BLA for the competing product containing the sponsor's own preclinical data and data from adequate and well-controlled clinical trials to demonstrate the safety, purity, potency and efficacy of its product.

We believe that certain of our product candidates, such as MET-097i, if approved as a biological product under a BLA, should qualify for the 12-year period of reference product exclusivity. However, there is a risk that this exclusivity could be shortened due to Congressional action or otherwise, or that the FDA will not consider our product candidates to be reference products for competing products, potentially creating the opportunity for biosimilar competition sooner than anticipated. Moreover, the extent to which a biosimilar, once approved, could be substituted for any one of our reference products in a way that is similar to traditional generic substitution for non-biological products will depend on a number of marketplace and regulatory factors continue to develop. In addition, we are developing MET-097i in combination with MET-233i, which we believe will be regulated as a combination drug-biologic product, given that MET-233i is regulated as a small molecule and would be subject to an NDA if we pursued approval for this product candidate as a monotherapy, and MET-097i is regulated as a biologic and would be subject to a BLA if we pursued approval for this product candidate as a monotherapy. Although we believe that the combination will be subject to a BLA, if our combination drug-biologic product is approved and is deemed not eligible for 12 years of exclusivity under the BPCIA, we will be subject to competition sooner than anticipated. If competitors are able to obtain marketing approval for biosimilars referencing our products, our products may become subject to competition from such biosimilars, with the attendant competitive pressure and consequences.

***The commercial success of any of our current or future product candidates will depend upon the degree of market acceptance of such product candidates by physicians, patients, healthcare payors and others in the medical community.*** 

Even if any of our current or future product candidates receive regulatory approval, they may not gain market acceptance among physicians, patients, healthcare payors or others in the medical community. The commercial success of any of our current or future product candidates will depend significantly on the broad adoption and use of the resulting product by these individuals and organizations for approved indications. The degree of market acceptance of our products will depend on a number of factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•demonstration of clinical efficacy and safety, including as compared to any more-established products or other alternative products that may later be approved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the indications for which any of our current or future product candidates are approved, if any;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the limitation of our targeted patient population and other limitations or warnings contained in any FDA-approved labeling;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•acceptance of a new drug for the relevant indication by healthcare providers and their patients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the pricing and cost-effectiveness of our products, as well as the cost of treatment with our products in relation to alternative treatments and therapies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to obtain and maintain sufficient third-party coverage and adequate reimbursement from government healthcare programs, including Medicare and Medicaid, private health insurers and other third-party payors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the price concessions required by third-party payors to obtain coverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the willingness of patients to pay all, or a portion of, out-of-pocket costs associated with our products in the absence of sufficient third-party coverage and adequate reimbursement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any restrictions on the use of our products, and the prevalence and severity of any adverse effects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•potential product liability claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing of market introduction of our products as well as availability, safety and efficacy of competitive drugs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the willingness of the target patient population to try new therapies and of physicians to prescribe these therapies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the effectiveness of our or any current or future collaborators' sales and marketing strategies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•unfavorable publicity relating to the product, or favorable publicity about competitive products.

If any of our current or future product candidates is approved but does not achieve an adequate level of acceptance by physicians, hospitals, healthcare payors or patients, we may not generate sufficient revenue from that product and may not become or remain profitable. Our efforts to educate the medical community and third-party payors regarding the benefits of our products may require significant resources and may never be successful.

***The successful commercialization of any of our current or future product candidates, if approved, will depend in part on the extent to which governmental authorities and health insurers establish coverage, adequate reimbursement levels and favorable pricing policies.*** 

The availability of coverage and the adequacy of reimbursement by governmental healthcare programs such as Medicare and Medicaid, private health insurers and other third-party payors are essential for most patients to be able to afford prescription medications such as any of our current or future product candidates, if approved. Our ability to achieve coverage and acceptable levels of reimbursement for our products by third-party payors will have an effect on our ability to successfully commercialize those products. Accordingly, we will need to successfully implement a coverage and reimbursement strategy for any approved product candidate. Even if we obtain coverage for a given product by a third-party payor, the resulting reimbursement payment rates may not be adequate or may require co-payments or other cost-sharing that patients find unacceptably high.

If we participate in the Medicaid Drug Rebate Program or other governmental pricing programs, in certain circumstances, our products would be subject to ceiling prices set by such programs, which could reduce the revenue we may generate from any such products. Participation in such programs would also expose us to the risk of significant civil monetary penalties, sanctions and fines should we be found to be in violation of any applicable obligations thereunder.

Third-party payors increasingly are challenging prices charged for biopharmaceutical products and services, and many third-party payors may refuse to provide coverage and reimbursement for particular drugs when an equivalent generic drug or a less expensive therapy is available. It is possible that a third-party payor may consider our products as substitutable and offer to reimburse patients only for a less expensive competitor product. Even if we are successful in demonstrating improved efficacy or improved convenience of administration with our products, pricing of existing drugs may limit the amount we will be able to charge for our products. These payors may deny or revoke the reimbursement status of a given product or establish prices for new or existing marketed products at levels that are too low to enable us to realize an appropriate return on our investment in product development. If reimbursement is not available or is available only at limited levels, we may not be able to successfully commercialize our products and may not be able to obtain a satisfactory financial return on products that we may develop.

There is significant uncertainty related to third-party payor coverage and reimbursement of newly approved products. In the United States, third-party payors, including private and governmental payors, such as the Medicare and Medicaid programs, play an important role in determining the extent to which new drugs will be covered. Some third-party payors may require pre-approval of coverage or implement prior authorization or step therapy programs for new or innovative devices or drug therapies before they will reimburse patients who use such therapies, which may be time-consuming or costly for patients and lead to a reduction in revenue. It is difficult to predict at this time what third-party payors will decide with respect to the coverage and reimbursement for any of our current or future product candidates.

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Net prices for drugs may be reduced by mandatory discounts or rebates required by government healthcare programs or private payors and by any future relaxation of laws that presently restrict imports of drugs from countries where they may be sold at lower prices than in the United States. Increasingly, third-party payors are requiring that drug companies provide them with predetermined discounts from list prices and are challenging the prices charged for medical products. We cannot be sure that reimbursement will be available for any product candidate that we commercialize and, if reimbursement is available, the level of reimbursement. In addition, many pharmaceutical manufacturers must calculate and report certain price reporting metrics to the government, such as average sales price and best price. Penalties may apply in some cases when such metrics are not submitted accurately and timely. Further, these prices for drugs may be reduced by mandatory discounts or rebates required by government healthcare programs.

Obtaining and maintaining reimbursement status is time-consuming, costly and uncertain. The Medicare and Medicaid programs increasingly are used as models for how private payors and other governmental payors develop their coverage and reimbursement policies for drugs. However, no uniform policy for coverage and reimbursement for products exists among third-party payors in the United States. Therefore, coverage and reimbursement for products can differ significantly from payor to payor. As a result, the coverage determination process is often a time-consuming and costly process that will require us to provide scientific and clinical support for the use of our products to each payor separately, with no assurance that coverage and adequate reimbursement will be applied consistently or obtained in the first instance. Furthermore, rules and regulations regarding reimbursement change frequently, and, in some cases, at short notice, and we believe that changes in these rules and regulations are likely. For products administered under the supervision of a physician, obtaining coverage and adequate reimbursement may be particularly difficult because of the higher prices often associated with such drugs. Additionally, separate reimbursement for the product itself or the treatment or procedure in which the product is used may not be available, which may impact physician utilization.

Outside the United States, international operations are generally subject to extensive governmental price controls and other market regulations, and we believe the increasing emphasis on cost-containment initiatives in Europe and other countries has and will continue to put pressure on the pricing and usage of any of our current or future product candidates, if approved in these jurisdictions. In many countries, the prices of medical products are subject to varying price control mechanisms as part of national health systems. Other countries allow companies to fix their own prices for medical products but monitor and control company profits. Additional foreign price controls or other changes in pricing regulation could restrict the amount that we are able to charge for our products. Accordingly, in markets outside the United States, the reimbursement for our products may be reduced compared with the United States and may be insufficient to generate commercially reasonable revenue and profits.

Moreover, increasing efforts by governmental and third-party payors in the United States and abroad to cap or reduce healthcare costs may cause such organizations to limit both coverage and the level of reimbursement for newly approved products and, as a result, they may not cover or provide adequate payment for our products. We expect to experience pricing pressures in connection with the sale of any of our products due to the trend toward managed healthcare, the increasing influence of health maintenance organizations and additional legislative and regulatory changes. The downward pressure on healthcare costs in general, and prescription drugs, surgical procedures and other treatments in particular, has become very intense. As a result, increasingly high barriers are being erected to the entry of new products. See "*Risks Related to Our Business Operations and Industry—Current and future U.S. healthcare reform legislation or regulation may increase the difficulty and cost for us to obtain coverage for and commercialize any of our current or future product candidates and may adversely affect the prices we may set*" below for additional related information.

***Economic uncertainty may reduce patient demand for any of our current or future product candidates, if approved, which may adversely affect our business, financial condition and results of operations.*** 

To the extent that any of our current or future product candidates are approved for indications that are not covered by or reimbursable through governmental authorities and health insurers, patients will bear the entire cost of our products. The decision to undergo therapy using our products for non-covered indications is thus driven by patient demand, which may be influenced by a number of factors, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the success of our sales and marketing programs, including our consumer marketing initiatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the extent to which physicians recommend our products, if approved, to their patients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•consumer sentiment about the benefits and risks of obesity and overweight drugs generally and our products, if approved, in particular, including satisfaction of patient expectations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the cost, safety and effectiveness of our products, if approved, in comparison to other obesity and overweight drugs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•general consumer confidence, which may be impacted by economic and political conditions. Economic downturns in the United States and international markets would likely have an adverse effect on demand for our products, if approved.

Our business, financial condition and results of operations will be adversely affected if we cannot generate significant patient demand for our products, if approved.

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***If we receive regulatory approvals for any of our current or future product candidates, we may face substantial competition from compounding pharmacies.*** 

Under the Federal Food, Drug, and Cosmetic Act (FDCA) the FDA has oversight over the compounding of human drug products without an approved drug application. Compounding is a practice in which a licensed pharmacist, a licensed physician, or, in the case of an outsourcing facility, a person under the supervision of a licensed pharmacist, combines, mixes or alters ingredients of a drug to create a medication tailored to the needs of an individual patient.

Section 503A of the FDCA establishes conditions under which compounded human drug products are exempt from certain requirements of the FDCA, including prior approval of an NDA, compliance with cGMPs, and labeling requirements, provided that the drug is compounded on the basis of receipt of valid patient-specific prescriptions and meets other requirements. Section 503B of the FDCA established conditions for a new category of compounders known as outsourcing facilities, which may compound a drug without marketing approval, but are subject to cGMP requirements and other obligations. Subject to these conditions, outsourcing facilities may distribute compounded drugs either pursuant to patient-specific prescriptions or in response to an order from a health care provider, such as a hospital, that is not for an identified individual patient (e.g., for office stock).

Section 503A of the FDCA restricts compounding drugs that are essentially copies of commercially available drugs, but certain amounts are permissible under the law as long as the compounding is not done "regularly or in inordinate amounts." However, all other conditions of Section 503A must be met, including that the compounding is done on the basis of a valid prescription for an individual patient. When a drug is on the FDA's drug shortage list, meaning that the demand or projected demand for the drug within the United States exceeds the supply of the drug, that drug is not considered to be "commercially available" such that the limitation on compounding "essentially copies" is lifted. The FDA intends to consider a compounded drug product to be essentially a copy of a commercially available drug if it has the same Active Pharmaceutical Ingredient (API), has the same, similar, or an easily substitutable dosage strength; and can be used by the same route of administration.

Outsourcing facilities registered under Section 503B are also restricted from making essentially a copy of an FDA-approved drug, but this limitation is lifted for identical or nearly identical copies of an FDA-approved drug if that drug is on the FDA's drug shortage list. When a drug is on the FDA's drug shortages list, an outsourcing facility regulated under Section 503B of the FDCA can use a bulk drug substance, also known as an API, to make that drug. The FDA considers a compounded drug to be essentially a copy of a commercially available drug under Section 503B if the compounded drug product and the FDA-approved drug have the same API, route of administration, dosage form, strength, and excipients.

A number of GLP-1 products were previously identified on the FDA shortage list, which then allowed for "essentially copies" of these drugs to be compounded by outsourcing facilities, and where applicable, 503A compounders, and sold to meet demand. For example, tirzepatide and semaglutide, the active ingredients in Zepbound and Wegovy, respectively, were included on the FDA's drug shortage list, which enabled compounding facilities to compound these drugs. These compounded formulations of GLP-1 products are generally less expensive than the branded, approved products, so could be a more attractive option for patients, particularly where not covered and reimbursed by third party payors.

The FDA has at times determined that shortages of tirzepatide and semaglutide have existed and at other times determined that such shortages have been resolved. Even where the FDA ultimately decides to remove a product from the shortage list, this action may not clear the market of compounded versions of the product, which could present a competitive threat to us if we obtain approval for our product candidates. Moreover, even though the FDCA does not allow for compounded versions of biologics, and we expect many of our product candidates to be regulated as biologics, we could nevertheless face competition from compounded, less expensive versions of other GLP-1 products, such as tirzepatide or semaglutide.

The potential availability of compounded versions of GLP-1 products may impact our pricing strategy and market penetration, and undermine our ability to establish a strong market position. Furthermore, any adverse events or quality issues associated with compounded versions of these products could negatively impact the perception of our product. These competitive pressures could materially and adversely affect our business and financial condition.

***If the market opportunities for any of our current or future product candidates are smaller than we believe they are, our revenue may be adversely affected, and our business may suffer.*** 

The precise incidence and prevalence for all the conditions we aim to address with our product candidates are unknown. Our projections of both the number of people who have these conditions and their associated diseases, as well as the subset of people with these diseases who have the potential to benefit from treatment with our product candidates, are based on our beliefs and estimates. These estimates have been derived from a variety of sources, including sales of our competitors, our own market insights, internal market intelligence and internally generated data and assumptions, scientific literature, surveys of clinics, patient foundations or market research. Market opportunity estimates, whether obtained or derived from third-party sources or developed internally, are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate. Further, new clinical trials may change the estimated incidence or prevalence of these diseases. The total addressable market across all of our product candidates will ultimately depend upon, among other things, the diagnosis criteria included in the final label for each of our product

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candidates approved for sale for these indications, the ability of our product candidates to improve on the safety, convenience, cost and efficacy of competing therapies or therapies in development, acceptance by the medical community and patients, drug pricing and reimbursement. The number of patients in the United States and other major markets and elsewhere may turn out to be lower than expected, patients may not be otherwise amenable to treatment with our product candidates or new patients may become increasingly difficult to identify or gain access to, all of which would adversely affect our business, financial condition, results of operations and prospects. Further, even if we obtain significant market share for our product candidates, because some of our potential target populations are very small, we may never achieve profitability despite obtaining such significant market share.

***We currently have no marketing and sales organization and have no experience as a company in commercializing products, and we may need to invest significant resources to develop these capabilities.*** 

We have no internal sales, marketing or distribution capabilities, nor have we ever commercialized a product. If any of our current or future product candidates ultimately receive regulatory approval, we must build a marketing and sales organization with technical expertise and supporting distribution capabilities to commercialize each such product in major markets, which will be expensive and time-consuming, or collaborate with third parties that have direct sales forces and established distribution systems, either to augment our own sales force and distribution systems or in lieu of our own sales force and distribution systems.

We have no prior experience as a company with the marketing, sale or distribution of biopharmaceutical products and there are significant risks involved in the building and managing of a sales organization, including our ability to hire, retain and incentivize qualified individuals, generate sufficient sales leads, provide adequate training to sales and marketing personnel and effectively manage a geographically dispersed sales and marketing team. Any failure or delay in the development of our internal sales, marketing and distribution capabilities would adversely impact the commercialization of these products. We may not be able to enter into collaborations or hire consultants or external service providers to assist us in sales, marketing and distribution functions on acceptable financial terms, or at all. In addition, our product revenue and our profitability, if any, may be lower if we rely on third parties for these functions than if we were to market, sell and distribute any products that we develop ourselves; such third parties may fail to devote the necessary resources and attention to sell and market our products effectively. There can be no assurance that we will be able to develop in-house sales and distribution capabilities or establish or maintain relationships with third-party collaborators to commercialize any product in the United States or overseas. If we are not successful in commercializing our products, either on our own or through arrangements with one or more third parties, we may not be able to generate any future product revenue and we would incur significant additional losses.

***Our future growth may depend, in part, on our ability to operate in foreign markets, where we would be subject to additional regulatory burdens and other risks and uncertainties.*** 

Our future growth may depend, in part, on our ability to develop and commercialize any of our current or future product candidates in foreign markets. We are not permitted to market or promote any of our current or future product candidates before we receive regulatory approval from applicable regulatory authorities in foreign markets, and we may never receive such regulatory approvals for any of our current or future product candidates. To obtain separate regulatory approval in many other countries we must comply with numerous and varying regulatory requirements regarding safety and efficacy and governing, among other things, clinical trials, commercial sales, pricing and distribution of any of our current or future product candidates. Approval procedures may be more onerous than those in the United States and may require that we conduct additional preclinical studies or clinical trials. If we obtain regulatory approval of any of our current or future product candidates and ultimately commercialize our products in foreign markets, we would be subject to additional risks and uncertainties, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•different regulatory requirements for approval of drugs in foreign countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•reduced protection for intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the existence of additional third-party patent rights of potential relevance to our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•compliance with export control and import laws and regulations and changes in tariffs, trade barriers and regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•economic weakness, including inflation, or political instability in particular foreign economies and markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•compliance with tax, employment, immigration and labor laws for employees living or traveling abroad;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•foreign currency fluctuations, which could result in increased operating expenses and reduced revenue, and other obligations incident to doing business in another country;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•foreign reimbursement, pricing and insurance regimes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•workforce uncertainty in countries where labor unrest is common;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•production shortages resulting from any events affecting raw material supply or manufacturing capabilities abroad; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•business interruptions resulting from geopolitical actions, including war and terrorism, public health pandemics or epidemics, or natural disasters including earthquakes, typhoons, floods and fires.

**Risks Related to Our Business Operations and Industry** 

***Our operating results may fluctuate significantly, which makes our future operating results difficult to predict and could cause our operating results to fall below expectations or any guidance we may provide.*** 

Our quarterly and annual operating results may fluctuate significantly, which makes it difficult for us to predict our future operating results. These fluctuations may occur due to a variety of factors, many of which are outside of our control, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing of and ability to consummate the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing and cost of, and level of investment in, research, development, regulatory approval, and commercialization activities relating to any of our current or future product candidates, which may change from time to time, including the need to conduct unanticipated clinical trials or trials that are larger or more complex than anticipated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to enroll patients in clinical trials and the timing of enrollment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing and success or failure of preclinical studies or clinical trials for any of our current or future product candidates or competing product candidates, or any other change in the competitive landscape of our industry, including consolidation among our competitors or partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•coverage and reimbursement policies with respect to any of our current or future product candidates, if approved, and potential future drugs that compete with our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the cost of manufacturing any of our current or future product candidates, which may vary depending on the quantity of production and the terms of our agreements with third-party manufacturers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•expenditures that we may incur to acquire, in-license, develop or commercialize additional product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the level of demand for any approved products, which may vary significantly and be difficult to predict;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to commercialize any of our current or future product candidates, if approved, inside and outside of the United States, either independently or working with third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to establish and maintain collaborations, licensing or other arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•potential unforeseen business disruptions that increase our costs or expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•future accounting pronouncements or changes in our accounting policies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing and amount of any milestone, royalty or other payments payable by us or due to us under any collaboration, licensing or other similar agreement.

The cumulative effects of these factors could result in large fluctuations and unpredictability in our quarterly and annual operating results. As a result, comparing our operating results on a period-to-period basis may not be meaningful. Investors should not rely on our past results as an indication of our future performance.

This variability and unpredictability could also result in our failing to meet the expectations of industry or financial analysts or investors for any period. If our revenue or operating results fall below the expectations of analysts or investors or below any forecasts we may provide to the market, or if the forecasts we provide to the market are below the expectations of analysts or investors, the price of our common stock could decline substantially. Such a stock price decline could occur even when we have met any previously publicly stated revenue or earnings guidance we may provide.

***Our success is dependent on our ability to attract and retain highly qualified management and other clinical and scientific personnel.*** 

Our success depends in part on our continued ability to attract, recruit, retain, manage and motivate highly qualified management, clinical, and scientific personnel, and we face significant competition for experienced personnel. We are highly dependent upon our senior management, as well as our senior scientists and other members of our management team. The loss of services of any of these individuals could delay or prevent the successful development of our product pipeline, initiation or completion of our clinical trials and preclinical studies, regulatory approvals or the commercialization of any of our current or future product candidates. Although we have executed offer letters with certain key members of our senior management team, these agreements are terminable at will, with or without notice and, therefore, we may not be able to retain their services as expected. We do not currently

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maintain "key person" life insurance on the lives of our executives or any of our employees. This lack of insurance means that we may not have adequate compensation for the loss of the services of these individuals.

In addition, employment candidates and existing employees often consider the value of the stock awards they receive in connection with their employment. If the perceived benefits of our stock awards decline, either because we are a public company or for other reasons, it may harm our ability to recruit and retain highly skilled employees. Our employees may be more likely to leave us if the shares they own have significantly appreciated in value relative to the original purchase prices of the shares, or if the exercise prices of the options that they hold are significantly below the market price of our common stock, particularly after the expiration of the lock-up agreements entered into in connection with our IPO, which expired at the close of business on July 29, 2025.

We will need to expand and effectively manage our managerial, operational, financial and other resources in order to successfully pursue our clinical development and commercialization efforts. We may not be successful in maintaining our unique company culture and continuing to attract or retain qualified management, clinical, and scientific personnel in the future due to the intense competition for qualified personnel among biopharmaceutical, biotechnology and other businesses. Our industry has experienced a high rate of turnover of management personnel in recent years. If we are not able to attract, integrate, retain and motivate necessary personnel to accomplish our business objectives, we may experience constraints that will significantly impede the achievement of our development objectives, our ability to raise additional capital and our ability to implement our business strategy.

***We will need to grow our organization, and we may experience difficulties in managing our growth and expanding our operations, which could adversely affect our business.*** 

As of November 6, 2025, we had 125 full-time and 7 part-time employees. As our development and commercialization plans and strategies develop, and if we continue to operate as a public company, we expect to expand our employee base for managerial, operational, financial and other resources. In addition, we have limited experience in manufacturing and commercialization. As our product candidates enter and advance through preclinical studies and clinical trials, we will need to expand our development and regulatory capabilities and may enter into additional collaborations or strategic partnerships with third parties that bring late-stage clinical development and commercialization expertise, infrastructure and the resources as we enter pivotal trials for any of our current or future product candidates. In the future, we expect to have to manage additional relationships with collaborators or partners, suppliers and other organizations. Our ability to manage our operations and future growth will require us to continue to improve our operational, financial and management controls, reporting systems and procedures. We may not be able to implement improvements to our management information and control systems in an efficient or timely manner and may discover deficiencies in existing systems and controls. Our inability to successfully manage our growth and expand our operations could adversely affect our business, financial condition, results of operations and prospects.

***We may expend our limited resources to pursue a particular product candidate in specific indications and fail to capitalize on product candidates or indications that may be more profitable or for which there is a greater likelihood of success.*** 

Because we have limited financial and managerial resources, we focus our development efforts on certain selected product candidates in certain selected indications. As a result, we may forgo or delay pursuit of opportunities with other product candidates or other indications for our existing product candidates that later prove to have greater commercial potential. Our resource allocation decisions may cause us to fail to capitalize on viable commercial products or profitable market opportunities. Our spending on current and future development programs and product candidates for specific indications may not yield any commercially viable product candidates. At any time, we may decide to discontinue the development or commercialization of any of our products or product candidates for a variety of reasons, including the appearance of new technologies that render our product obsolete, competition from a competing product, or changes in or inability to comply with applicable regulatory requirements. If we terminate a program in which we have invested significant resources, we will not receive any return on our investment and we will have missed the opportunity to allocate those resources to potentially more productive uses. In addition, if we do not accurately evaluate the commercial potential or target market for a particular product candidate, we may relinquish valuable rights to that product candidate through collaboration, licensing or other royalty arrangements in cases in which it would have been more advantageous for us to retain sole development and commercialization rights to such product candidate.

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***We are subject to various U.S. federal, state and foreign healthcare laws and regulations, which could increase compliance costs, and our failure to comply with these laws and regulations could harm our reputation, subject us to significant fines and liability or otherwise adversely affect our business.*** 

Our business operations and current and future arrangements with investigators, healthcare professionals, consultants, marketing personnel, third-party payors, patient organizations and customers expose us to broadly applicable foreign, federal and state fraud and abuse and other healthcare laws and regulations. These laws may constrain the business or financial arrangements and relationships through which we conduct our operations, including how we research, market, sell and distribute any products for which we obtain regulatory approval. Such laws include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the federal Anti-Kickback Statute, which prohibits, among other things, persons or entities from knowingly and willfully soliciting, offering, receiving or providing any remuneration (including any kickback, bribe or certain rebates), directly or indirectly, overtly or covertly, in cash or in kind, in return for, either the referral of an individual or the purchase, lease, or order, or arranging for or recommending the purchase, lease, or order of any good, facility, item or service, for which payment may be made, in whole or in part, under a federal healthcare program such as Medicare and Medicaid. A person or entity does not need to have actual knowledge of the federal Anti-Kickback Statute or specific intent to violate it in order to have committed a violation. Violations are subject to civil and criminal fines and penalties for each violation, plus up to three times the remuneration involved, imprisonment, and exclusion from government healthcare programs. In addition, the government may assert that a claim including items or services resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the federal False Claims Act or federal civil monetary penalties (discussed below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the federal false claims laws, including the civil False Claims Act, and civil monetary penalties laws, which prohibit, among other things, individuals or entities from knowingly presenting, or causing to be presented, to the federal government, claims for payment or approval that are false or fraudulent, knowingly making, using or causing to be made or used, a false record or statement material to a false or fraudulent claim, or from knowingly making or causing to be made a false statement to avoid, decrease or conceal an obligation to pay money to the federal government. Manufacturers can be held liable under the federal False Claims Act even when they do not submit claims directly to government payors if they are deemed to "cause" the submission of false or fraudulent claims. The federal False Claims Act also permits a private individual acting as a "whistleblower" to bring actions on behalf of the federal government alleging violations of the federal False Claims Act and to share in any monetary recovery;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) which imposes criminal and civil liability for, among other things, knowingly and willfully executing, or attempting to execute, a scheme to defraud any healthcare benefit program, or knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false statement, in connection with the delivery of, or payment for, healthcare benefits, items or services. Similar to the federal Anti-Kickback Statute, a person or entity does not need to have actual knowledge of the statute or specific intent to violate it in order to have committed a violation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the federal Physician Payments Sunshine Act, which requires certain manufacturers of drugs, devices, biologics and medical supplies for which payment is available under Medicare, Medicaid or the Children's Health Insurance Program (with certain exceptions) to report annually to the Centers for Medicare & Medicaid Services (CMS) information related to payments and other "transfers of value" made to physicians (defined to include doctors, dentists, optometrists, podiatrists and chiropractors), certain non-physician practitioners (physician assistants, nurse practitioners, clinical nurse specialists, certified nurse anesthetists, anesthesiology assistants and certified nurse-midwives), and teaching hospitals and other healthcare providers, as well as ownership and investment interests held by physicians and their immediate family members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•federal price reporting laws, which require manufacturers to calculate and report complex pricing metrics to government programs, where such reported prices may be used in the calculation of reimbursement and/or discounts on approved products; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•analogous state and foreign laws and regulations, such as state anti-kickback and false claims laws, which may apply to sales or marketing arrangements and claims involving healthcare items or services reimbursed by non-governmental third-party payors, including private insurers; some state laws require biopharmaceutical companies to comply with the biopharmaceutical industry's voluntary compliance guidelines and the relevant compliance guidance promulgated by the federal government and may require drug manufacturers to report information related to payments and other transfers of value to physicians and other healthcare providers or marketing expenditures; some state laws that require biopharmaceutical companies to report information on the pricing of certain drug products; and some state and local laws that require the registration or pharmaceutical sales representatives.

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Efforts to ensure that our current and future business arrangements both internally and with third parties will comply with applicable healthcare and privacy laws and regulations will involve ongoing substantial costs. It is possible that governmental authorities will conclude that our business practices, including certain consulting agreements we have entered into with physicians who are paid, in part, in the form of stock or stock options, may not comply with current or future statutes, regulations or case law involving applicable fraud and abuse or other healthcare laws and regulations. Due to the breadth of these laws, the narrowness of statutory exceptions and regulatory safe harbors available, and the range of interpretations to which they are subject, it is possible that some of our current or future practices might be challenged under one or more of these laws. If our operations are found to be in violation of any of these laws or any other governmental regulations that may apply to us, we may be subject to significant penalties, including civil, criminal and administrative penalties, damages, fines, disgorgement, imprisonment, exclusion from participation in government-funded healthcare programs, such as Medicare and Medicaid, integrity oversight and reporting obligations, contractual damages, reputational harm, diminished profits and future earnings and the curtailment or restructuring of our operations. Defending against any such actions can be costly and time-consuming and may require significant financial and personnel resources. Therefore, even if we are successful in defending against any such actions that may be brought against us, our business may be impaired. Further, if any of the physicians or other healthcare providers or entities with whom we expect to do business are found not to be in compliance with applicable laws or regulations, they may be subject to significant criminal, civil or administrative sanctions, including exclusions from government-funded healthcare programs.

***Current and future U.S. healthcare reform legislation or regulation may increase the difficulty and cost for us to obtain coverage for and commercialize any of our current or future product candidates and may adversely affect the prices we may set.*** 

In the United States and some foreign jurisdictions, there have been, and we expect there will continue to be, a number of legislative and regulatory changes to the healthcare system, including cost-containment measures that may reduce or limit coverage and reimbursement for newly approved drugs and affect our ability to profitably sell any of our current or future product candidates for which we obtain regulatory approval. In particular, there have been and continue to be a number of initiatives at the U.S. federal and state levels that seek to reduce healthcare costs and improve the quality of healthcare.

For example, in March 2010, the Patient Protection and Affordable Care Act (ACA), as amended by the Health Care and Education Reconciliation Act of 2010 was enacted in the United States. The ACA established an annual, nondeductible fee on any entity that manufactures or imports specified branded prescription drugs and biologic agents; extended manufacturers' Medicaid rebate liability to covered drugs dispensed to individuals who are enrolled in Medicaid managed care organizations; expanded eligibility criteria for Medicaid programs; expanded the entities eligible for discounts under the 340B drug pricing program; increased the statutory minimum rebates a manufacturer must pay under the Medicaid Drug Rebate Program; established a new Patient-Centered Outcomes Research Institute to oversee, identify priorities in and conduct comparative clinical effectiveness research, along with funding for such research; and established a Center for Medicare & Medicaid Innovation at CMS to test innovative payment and service delivery models to lower Medicare and Medicaid spending.

Since its enactment, there have been executive, judicial and Congressional challenges to certain aspects of the ACA. On June 17, 2021, the U.S. Supreme Court dismissed the most recent judicial challenge to the ACA brought by several states without specifically ruling on the constitutionality of the ACA.

In addition, other legislative changes have been proposed and adopted since the ACA was enacted. For example, beginning April 1, 2013, Medicare payments to providers were reduced under the sequestration required by the Budget Control Act of 2011, which will remain in effect through the 2032 fiscal year, unless additional Congressional action is taken. Due to the Statutory Pay-As-You-Go Act of 2010, estimated budget deficit increases resulting from the American Rescue Plan Act of 2021, and subsequent legislation, Medicare payments to providers will be further reduced starting in 2025 absent further legislation. Additionally, on January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law, which, among other things, further reduced Medicare payments to several types of providers, including hospitals, imaging centers and cancer treatment centers, and increased the statute of limitations period for the government to recover overpayments to providers from three to five years. On March 11, 2021, the American Rescue Plan Act of 2021 was signed into law, which eliminated the statutory cap on the Medicaid drug rebate, beginning January 1, 2024. The rebate was previously capped at 100% of a drug's average manufacturer price. Further, there has been heightened governmental scrutiny in the United States of pharmaceutical pricing practices in light of the rising cost of prescription drugs. Such scrutiny has resulted in several recent congressional inquiries and proposed and enacted federal and state legislation designed to, among other things, bring more transparency to product pricing, review the relationship between pricing and manufacturer patient assistance programs, and reform government program reimbursement methodologies for products.

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On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (the IRA) into law. This statute marks the most significant action by Congress with respect to the pharmaceutical industry since adoption of the ACA in 2010. Among other things, the IRA (i) directs the Department of Health and Human Services (HHS) to negotiate the price of certain high-expenditure, single-source drugs and biologics covered under Medicare; (ii) imposes rebates under Medicare Part B and Medicare Part D to penalize price increases that outpace inflation; (iii) reduces the out-of-pocket cap for Medicare Part D beneficiaries to $2,000 starting in 2025. The IRA permits the Secretary of HHS to implement many of these provisions through guidance, as opposed to regulation, for the initial years. HHS has and will continue to issue and update guidance as these programs are implemented. CMS has published the negotiated prices for the initial ten drugs, which will first be effective in 2026, and the list of the subsequent 15 drugs that will be subject to negotiation. The implementation of the IRA is currently subject to ongoing litigation that challenges the constitutionality of the IRA's drug price negotiation program provisions. The outcome of this litigation as well as the effects of the IRA on the pharmaceutical industry cannot yet be fully determined but is likely to be significant. Additional drug pricing proposals could appear in future legislation. In July 2025, President Trump enacted the One Big Beautiful Bill Act (the OBBBA), which included reforms to programs such as Medicaid and restrictions for certain groups to access the ACA Marketplace. These changes may result in an increase in the number of individuals who are unable to access health insurance benefits and medical care, and their ability to receive prescriptions and certain prescribed medications. The impact of the IRA and OBBBA on our business and the pharmaceutical industry cannot yet be fully determined, but may be significant.

At the state level, state governments have increasingly passed legislation and implemented regulations designed to control pharmaceutical and biological product pricing, including price or reimbursement constraints, discounts, restrictions on certain product access and marketing cost disclosure and transparency measures, and, in some cases, designed to encourage importation from other countries and bulk purchasing. Legally mandated price controls on payment amounts by third-party payors or other restrictions could harm our business, financial condition, results of operations and prospects. In addition, regional healthcare authorities and individual hospitals are increasingly using bidding procedures to determine what pharmaceutical products and which suppliers will be included in their prescription drug and other healthcare programs. These measures could reduce the ultimate demand for any of our current and future product candidates, if approved, or put pressure on our product pricing, which could negatively affect our business, financial condition, results of operations and prospects.

We expect that these existing laws and other healthcare reform measures both at the federal and state level that may be adopted in the future may result in additional reductions in Medicare and other healthcare funding, more rigorous coverage criteria, new payment methodologies and additional downward pressure on the price that we receive for any approved product. Any reduction in reimbursement from Medicare or other government programs may result in a similar reduction in payments from private payors.

Our revenue prospects could be affected by changes in healthcare spending and policy in the United States and abroad. We operate in a highly regulated industry and new laws, regulations or judicial decisions, or new interpretations of existing laws, regulations or decisions, related to healthcare availability, the method of delivery or payment for healthcare products and services could negatively impact our business, operations and financial condition. The continuing efforts of the government, insurance companies, managed care organizations and other payors of healthcare services to contain or reduce costs of healthcare and/or impose price controls may adversely affect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the demand for our current or future product candidates, if we obtain regulatory approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to set a price that we believe is fair for our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to obtain coverage and reimbursement approval for a product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to generate revenue and achieve or maintain profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the level of taxes that we are required to pay; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the availability of capital.

***If product liability lawsuits are brought against us, we may incur substantial liabilities and may be required to limit, delay or cease commercialization of our products.*** 

We face an inherent risk of product liability as a result of the clinical trials of any of our current and future product candidates and will face an even greater risk if we commercialize any of our current or future product candidates, if approved. For example, we may be sued if any of our current or future product candidates allegedly cause injury or are found to be otherwise unsuitable during product testing, manufacturing, marketing or sale. Any such product liability claims may include allegations of defects in manufacturing, defects in design, a failure to warn of dangers inherent in the product candidate, negligence, strict liability and a breach of warranties. Claims may be brought against us by clinical trial participants, patients or others using, administering or selling products that may be approved in the future. Claims could also be asserted under state consumer protection acts.

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If we cannot successfully defend ourselves against product liability claims, we may incur substantial liabilities or be required to limit, delay or cease the commercialization of our products. Even a successful defense would require significant financial and management resources. Regardless of the merits or eventual outcome, liability claims may result in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•decreased demand for our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•injury to our reputation and significant negative media attention;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•withdrawal of clinical trial participants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•costs to defend the related litigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a diversion of our management's time and our resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•substantial monetary awards to trial participants or product recipients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•product recalls, withdrawals or labeling, marketing or promotional restrictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•significant negative financial impact;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the inability to commercialize any of our current or future product candidates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a decline in our stock price.

We may need to increase our insurance coverage as we expand our clinical trials or if we commence commercialization of any of our current or future product candidates. Insurance coverage is increasingly expensive. Our inability to obtain and retain sufficient product liability insurance at an acceptable cost to protect against potential product liability claims could prevent or inhibit the commercialization of any of our current or future product candidates. Although we will maintain such insurance, any claim that may be brought against us could result in a court judgment or settlement in an amount that is not covered, in whole or in part, by our insurance or that is in excess of the limits of our insurance coverage. Our insurance policies will also have various exclusions, and we may be subject to a product liability claim for which we have no coverage. We may have to pay any amounts awarded by a court or negotiated in a settlement that exceed our coverage limitations or that are not covered by our insurance, and we may not have, or be able to obtain, sufficient capital to pay such amounts.

***Our insurance policies are expensive and protect us from only some business risks, which will leave us exposed to significant uninsured liabilities.*** 

We do not carry insurance for all categories of risk that our business may encounter. Some of the policies we currently maintain include property, general liability, employee benefits liability, commercial automobile, workers' compensation, transportation and storage, cyber liability, clinical trials, directors' and officers' and employment practices insurance. We do not know, however, if we will be able to maintain insurance with adequate levels of coverage. No assurance can be given that an insurance carrier will not seek to cancel or deny coverage after a claim has occurred. Any significant uninsured liability may require us to pay substantial amounts, which would adversely affect our business, financial condition, results of operations and future prospects.

***We and our service providers may be subject to a variety of data protection, privacy and security obligations, including laws, regulations, standards and contractual provisions, which could increase compliance costs, and our actual or perceived failure to comply with such laws and obligations could subject us to potentially significant liability, fines or penalties and otherwise harm our business.*** 

We and our service providers maintain a large quantity of sensitive information, including confidential business, employee and health-related information, and are subject to laws and regulations governing the privacy and security of such information. The global data protection landscape is rapidly evolving, and we and our service providers may be affected by or subject to existing, amended, or new laws and regulations in the future, as our operations continue to expand or if we operate in foreign jurisdictions. These laws and regulations may be subject to differing interpretations, thus creating potentially complex compliance issues for us and our service providers, strategic partners and future customers. The cost of compliance with these laws, regulations and standards is high and is likely to increase in the future. Any failure or perceived failure by us to comply with federal, state or foreign laws or regulations, our internal policies and procedures or our contracts governing our processing of personal information could result in negative publicity, government investigations and enforcement actions, claims by third parties and damage to our reputation, any of which could have a material adverse effect on our business, financial condition, results of operations and prospects.

As our operations and business grow, we may become subject to or affected by new or additional data protection laws and regulations and face increased scrutiny or attention from regulatory authorities. In the United States, numerous federal and state laws and regulations, including health information privacy laws, data breach notification laws and consumer protection laws, that govern the collection, use, storage, transfer, disclosure, protection and other processing of health-related and other personal information could apply to our operations or the operations of our collaborators and third-party providers. In addition, we may obtain health information from third parties (including research institutions from which we obtain clinical trial data and CROs) that are subject to privacy and security requirements under HIPAA. Consequently, depending on the facts and circumstances, we could be subject to significant

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penalties if we knowingly receive individually identifiable health information from a HIPAA-covered healthcare provider, research institution, or CRO that has not satisfied HIPAA's requirements for disclosure of individually identifiable health information.

In addition, certain state laws govern the privacy and security of health-related and other personal information, many of which may differ from each other and from HIPAA, thus complicating compliance efforts. Failure to comply with these laws, where applicable, can result in the imposition of significant civil and/or criminal penalties and private litigation. By way of example, the California Consumer Privacy Act, as amended by the California Privacy Rights Act, collectively, the CCPA, requires covered businesses that process the personal information of California residents to, among other things: (i) provide certain disclosures to California residents regarding the business's collection, use, and disclosure of their personal information; (ii) receive and respond to requests from California residents to access, delete, and correct their personal information, or to opt out of certain disclosures of their personal information; and (iii) enter into specific contractual provisions with service providers that process California resident personal information on the business's behalf. Additional compliance investment and potential business process changes may be required. Similar laws have been passed in other states, and are continuing to be proposed at the state and federal level, reflecting a trend toward more stringent privacy legislation in the United States. In addition to these comprehensive consumer privacy laws and proposals, a number of other states have passed or proposed more limited privacy laws that focus on specific privacy issues such as biometric data and the privacy of health and medical information, such as Washington state's My Health My Data Act, which has a private right of action that further increases the relevant compliance risk. Connecticut and Nevada have also passed similar laws regulating consumer health data. These various privacy and security laws may impact our business activities, including our identification of research subjects, relationships with business partners and ultimately the marketing and distribution of our products. State laws are changing rapidly and there is discussion in the U.S. Congress of a new comprehensive federal data privacy law to which we may likely become subject, if enacted. In the event that we are subject to or affected by HIPAA, the CCPA or other domestic privacy and data protection laws, any liability from failure to comply with the requirements of these laws could adversely affect our financial condition.

We are subject to the United Kingdom General Data Protection Regulation (the UK GDPR) and may in the future be subject to the European Union equivalent of the same (the EU GDPR) together with the UK GDPR, the GDPR. The GDPR, together with national legislation, regulations and guidelines of the European Economic Area (EEA) member states and the UK governing the processing of personal data, impose strict obligations and restrictions on the ability to collect, analyze and transfer personal data. The GDPR is wide-ranging in scope and imposes numerous requirements on companies that process personal data, including providing notice to the individuals to whom the personal data relates regarding data processing activities, implementing safeguards to protect the privacy and security of personal data, implementing processes to handle requests from individuals to exercise their data protection rights, maintaining records of our processing activities and to document data protection impact assessments where there is high risk processing, providing notification of data breaches in certain circumstances, and taking certain measures when engaging third-party processors or sub-processors. Companies that are subject to the GDPR face compliance obligations and risk, including regulatory enforcement and potential fines for noncompliance of up to £17.5 million (€20 million) or 4% of the annual global revenues of the noncompliant company, whichever is greater.

Among other requirements, the GDPR regulates transfers of personal data subject to the GDPR to third countries that have not been found to provide adequate protection to such personal data, including the United States, and the efficacy and longevity of current transfer mechanisms between the EEA, and the United States remains uncertain. Case law from the Court of Justice of the European Union (the CJEU) states that reliance on the standard contractual clauses—a standard form of contract approved by the European Commission as an adequate personal data transfer mechanism—alone may not necessarily be sufficient in all circumstances and that transfers must be assessed on a case-by-case basis. On July 10, 2023, the European Commission adopted its Adequacy Decision in relation to the new EU-US Data Privacy Framework (the DPF) rendering the DPF effective as a GDPR transfer mechanism to U.S. entities self-certified under the DPF. The DPF can be used for transfers outside of the UK through its UK Extension. We expect the existing legal complexity and uncertainty regarding international personal data transfers to continue. In particular, the DPF Adequacy Decision has already been challenged and international data transfers to the United States and to other jurisdictions may continue to be subject to enhanced scrutiny by regulators. As a result, we may need to make certain operational changes and implement revised EU standard contractual clauses and other relevant documentation for those data transfers within required time frames, particularly if we decided to conduct clinical trials in the EU. As supervisory authorities issue further guidance on personal data export mechanisms, including circumstances where the standard contractual clauses cannot be used, and/or start taking enforcement action, we could suffer additional costs, complaints and/or regulatory investigations or fines, and/or if we are otherwise unable to transfer personal data between and among countries and regions in which we operate, it could affect the manner in which we provide our services, the geographical location or segregation of our relevant systems and operations, and could adversely affect our financial results.

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Compliance with U.S. and international data protection laws and regulations could require us to take on more onerous obligations in our contracts, restrict our ability to collect, store, use, transfer, disclose and otherwise process data, update our data privacy and security policies and procedures, or in some cases, impact our ability to operate in certain jurisdictions. Failure by us or our collaborators and our service providers to comply with U.S. and international data protection laws and regulations could result in government enforcement actions (which could include civil or criminal penalties), private litigation and/or adverse publicity and could negatively affect our operating results and business. Moreover, clinical trial subjects about whom we or our potential collaborators obtain information, as well as the providers who share this information with us, may contractually limit our ability to use and disclose such information. Claims that we have violated individuals' privacy rights, failed to comply with data protection laws, or breached our contractual obligations, even if we are not found liable, could be expensive and time-consuming to defend, could result in adverse publicity and adversely affect our business, financial condition, results of operations and future prospects.

***Our information technology systems, or those of any of our third-party service providers, may fail or suffer security incidents, breaches, or compromises and other disruptions, which could result in a material disruption of our development programs, compromise sensitive information related to our business or prevent us from accessing critical information, potentially exposing us to liability or otherwise adversely affecting our business.*** 

In the ordinary course of business, we collect, store and transmit confidential information (including but not limited to intellectual property, proprietary and confidential business information and personal information). Our information technology systems and those of our third-party service providers, strategic partners and other contractors or consultants are vulnerable to attack, damage and interruption from computer viruses and malware (e.g. ransomware), malicious code, natural disasters, terrorism, war, telecommunication and electrical failures, hacking, cyberattacks, phishing attacks and other social engineering schemes, employee theft or misuse, human error, fraud, denial or degradation of service attacks, sophisticated nation-state and nation-state-supported actors or unauthorized access or use by persons inside our organization, or persons with access to systems inside our organization. In addition, attacks upon information technology systems are increasing in their frequency, levels of persistence, sophistication and intensity, and are being conducted by sophisticated and organized groups and individuals with a wide range of motives and expertise. Furthermore, because the techniques (including artificial intelligence) used to obtain unauthorized access to, or to sabotage, systems change frequently and often are not recognized until launched against a target, we may be unable to anticipate these techniques or implement adequate preventative measures. We may also experience security incidents that may remain undetected for an extended period. Even if identified, we may be unable to adequately investigate or remediate incidents or breaches due to attackers increasingly using tools and techniques that are designed to circumvent controls, to avoid detection, and to remove or obfuscate forensic evidence.

We and certain of our service providers are from time to time subject to cyberattacks, security incidents, breaches or compromises. While we do not believe that we have experienced any material system failure, accident or security breach to date, if any such event, whether actual or perceived, were to occur, it could impact our reputation and/or operations, cause us to incur significant costs, including legal expenses, harm customer confidence, hurt our expansion into new markets, cause us to incur remediation costs, or cause us to lose existing customers. For example, the loss of clinical trial data from clinical trials could result in delays in our regulatory approval efforts and significantly increase our costs to recover or reproduce the data. We also currently rely on a third party to manufacture our product candidates, and similar events relating to their computer systems could also have a material adverse effect on our business. To the extent that any actual or perceived disruption or security incident affects our systems (or those of our third-party collaborators, service providers, contractors or consultants) or were to result in a loss of or accidental, unlawful or unauthorized access to, use of, release of, or other processing of personally identifiable information, or damage to, our confidential or proprietary data or applications, or inappropriate disclosure of confidential or proprietary information, we could incur liability, the further development and commercialization of any of our current or future product candidates could be delayed, and we could be subject to significant fines, penalties or liabilities for any noncompliance to certain privacy and security laws.

We have also outsourced elements of our information technology infrastructure, and as a result a number of third-party vendors may or could have access to our confidential information. If our third-party vendors fail to protect their information technology systems and our confidential and proprietary information, we may be vulnerable to disruptions in service and unauthorized access to our confidential or proprietary information and we could incur liability and reputational damage. If the information technology systems of our third-party vendors and other contractors and consultants become subject to disruptions or security breaches, incidents, or compromises, we may have insufficient recourse against such third parties and we may have to expend significant resources to mitigate the impact of such an event, and to develop and implement protections to prevent future events of this nature from occurring. Some of the federal, state and foreign government requirements include obligations of companies to notify individuals of security breaches involving particular categories of personally identifiable information, which could result from incidents experienced by us or by our vendors, contractors, or organizations with which we have formed strategic relationships. Our contracts may not contain limitations of liability, and even where they do, there can be no assurance that limitations of liability in our contracts are sufficient to protect us from liabilities, damages, or claims related to our data privacy and security obligations. Although we currently hold cybersecurity insurance, the costs related to significant security breaches or disruptions could be material and cause us to incur significant expenses and we cannot guarantee that such insurance will continue to be available on acceptable terms or in amounts sufficient to cover the potentially significant losses that may result for a security incident or breach.

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***Our business is subject to risks arising from pandemics and epidemic diseases.*** 

The COVID-19 worldwide pandemic presented substantial public health and economic challenges and affected our employees, patients, physicians and other healthcare providers, communities and business operations, as well as the U.S. and global economies and financial markets. Any future pandemic or epidemic disease outbreaks, if they were to occur, could disrupt the supply chain and the manufacture or shipment of drug substances and finished drug products for any of our current or future product candidates for use in our, our collaborators' or any future collaborators' clinical trials and research and preclinical studies and, delay, limit or prevent our employees and CROs from continuing research and development activities, impede our clinical trial initiation and recruitment and the ability of patients to continue in clinical trials, alter the results of the clinical trial based on participants contracting the disease or otherwise increasing the number of observed adverse events, impede testing, monitoring, data collection and analysis and other related activities, any of which could delay our preclinical studies and clinical trials and increase our development costs, and have a material adverse effect on our business, financial condition, results of operations and prospects. Any future pandemic or epidemic disease outbreak could also potentially further affect the business of the FDA or other foreign regulatory authorities, which could result in delays in meetings related to our planned clinical trials, as well have an adverse impact on global economic conditions which could have an adverse effect on our business and financial condition, including impairing our ability to raise capital when needed.

***Our business could be affected by litigation, government investigations and enforcement actions.*** 

We currently operate in a number of jurisdictions in a highly regulated industry and we could be subject to litigation, government investigation and enforcement actions on a variety of matters in the United States or foreign jurisdictions, including, without limitation, intellectual property, regulatory, product liability, environmental, whistleblower, false claims, privacy, anti-kickback, anti-bribery, securities, commercial, employment and other claims and legal proceedings that may arise from conducting our business. Any determination that our operations or activities are not in compliance with existing laws or regulations could result in the imposition of fines, civil and criminal penalties, exclusion from participation in government-funded healthcare programs, such as Medicare and Medicaid, equitable remedies, including disgorgement, injunctive relief and/or other sanctions against us, and remediation of any such findings could have an adverse effect on our business operations.

Legal proceedings, government investigations and enforcement actions can be expensive and time-consuming. An adverse outcome resulting from any such proceedings, investigations or enforcement actions could result in significant damages awards, fines, penalties, exclusion from the federal healthcare programs, healthcare debarment, injunctive relief, product recalls, reputational damage and modifications of our business practices, which could have a material adverse effect on our business, financial condition, results of operations and future prospects. Even if such a proceeding, investigation or enforcement action is ultimately decided in our favor, the investigation and defense thereof could require substantial financial and management resources.

***Our employees and independent contractors, including collaborators, principal investigators, CROs, consultants and vendors, may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements.*** 

We are exposed to the risk that our employees and independent contractors, including collaborators, principal investigators, CROs, consultants and vendors may engage in misconduct or other illegal activity. Misconduct by these parties could include intentional, reckless and/or negligent conduct or disclosure of unauthorized activities to us that violate: (i) the laws and regulations of the FDA and other comparable foreign regulatory requirements, including those laws that require the reporting of true, complete and accurate information to such authorities, (ii) manufacturing standards, including cGMP requirements, (iii) federal and state data privacy, security, fraud and abuse and other healthcare laws and regulations in the United States and abroad, (iv) laws that require the true, complete and accurate reporting of financial information or data, or (v) laws that prohibit insider trading. Activities subject to these laws also involve the improper use or misrepresentation of information obtained in the course of clinical trials, the creation of fraudulent data in our or our collaborators' preclinical studies or clinical trials, or illegal misappropriation of drug product, which could result in regulatory sanctions and cause serious harm to our reputation. It is not always possible to identify and deter misconduct by employees and other third parties, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to be in compliance with such laws or regulations. In addition, we are subject to the risk that a person or government could allege such fraud or other misconduct, even if none occurred. If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights, those actions could have a significant impact on our business and financial results, including, without limitation, the imposition of significant civil, criminal and administrative penalties, damages, monetary fines, disgorgements, possible exclusion from participation in Medicare, Medicaid and other federal healthcare programs, imprisonment, contractual damages, reputational harm, diminished profits and future earnings, additional reporting requirements and oversight if we become subject to a corporate integrity agreement or similar agreement to resolve allegations of non-compliance with these laws and curtailment of our operations, any of which could adversely affect our business, financial condition, results of operations and future prospects.

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***We may engage in strategic transactions that could impact our liquidity, increase our expenses and present significant distractions to our management.*** 

We have in the past, and may in the future consider strategic transactions, such as acquisitions of companies, asset purchases, and out-licensing or in-licensing of intellectual property, products or technologies. Additional potential transactions that we may consider in the future include a variety of business arrangements, including spin-offs, strategic partnerships and collaborations, joint ventures, restructurings, divestitures, business combinations, and investments. We may not be able to find suitable partners or acquisition candidates, and we may not be able to complete such transactions on favorable terms, if at all.

Any future transactions could increase our near and long-term expenditures, result in potentially dilutive issuances of our equity securities, including our common stock, or the incurrence of debt, contingent liabilities, amortization expenses or acquired in-process research and development expenses, any of which could affect our financial condition, liquidity and results of operations. Future acquisitions may also require us to obtain additional financing, which may not be available on favorable terms or at all. These transactions may never be successful and may require significant time and attention of our management. For example, in September 2023, we acquired 100% of the equity interests in Zihipp Ltd., a biopharmaceutical company developing peptide hormones for diabetes and obesity treatments. In addition, the integration of any business that we may acquire in the future may disrupt our existing business and may be a complex, risky and costly endeavor for which we may never realize the full benefits. Furthermore, we may experience losses related to investments in other companies, including as a result of failure to realize expected benefits or the materialization of unexpected liabilities or risks, which could have a material negative effect on our results of operations and financial condition. Accordingly, although there can be no assurance that we will undertake or successfully complete any additional transactions of the nature described above, any additional transactions that we do complete could have a material adverse effect on our business, financial condition, results of operations and future prospects.

***Public opinion and scrutiny of treatments for obesity and overweight may impact public perception of our company and product candidates, or may adversely affect our ability to conduct our business and our business plans.*** 

Public perception may be influenced by claims, such as claims that our product candidates are unsafe, unethical or immoral and, consequently, our approach may not gain the acceptance of the public or the medical community. Negative public reaction to treatments for obesity and overweight in general could result in greater government regulation and stricter labeling requirements of products to treat these chronic conditions, including our product candidates, if approved, and could cause a decrease in the demand for any product candidates we may develop. For example, severe adverse events observed with GLP-1 RAs include, but are not limited to, acute pancreatitis, acute gallbladder disease, acute kidney injury and worsening of diabetic retinopathy. Such side effects associated with GLP-1 receptor or GLP-1/GIP receptor targeting treatments may negatively impact public perception of us or our incretin-based product candidates. Adverse public attitudes may also adversely impact our ability to enroll clinical trials. Moreover, our success will depend upon physicians specializing in the treatment of those diseases that our product candidates target prescribing, and their patients being willing to receive, treatments that involve the use of our product candidates in lieu of, or in addition to, existing treatments they are already familiar with and for which greater clinical data may be available. Adverse events in our clinical trials, even if not ultimately attributable to our product candidates, and the resulting publicity could result in withdrawal of clinical trial participants, increased governmental regulation, unfavorable public perception, potential regulatory delays in the testing or approval of our product candidates, stricter labeling requirements for those product candidates that are approved and a decrease in demand for any such product candidates. More restrictive government regulations or negative public opinion could have an adverse effect on our business, financial condition, results of operations and prospects, and may delay or impair the development and, if approved, commercialization of our product candidates or demand for any products we may develop.

***Our ability to use net operating loss carryforwards and other tax attributes may be limited.*** 

We have incurred substantial losses during our history, do not expect to become profitable in the near future and may never achieve profitability. As of December 31, 2024 and 2023, we had $31.0 million and $13.0 million, respectively, in gross federal net operating loss (NOL) carryforwards and as of December 31, 2024 and 2023, we had $52.8 million and $0.4 million in foreign NOL carryforwards, respectively. NOL carryforwards may be available to offset our future taxable income, if any. Our NOL carryforwards and other tax attributes are subject to expiration, review and possible adjustment by the Internal Revenue Service (IRS) and state tax authorities.

In addition, under Section 382 of the U.S. Internal Revenue Code of 1986, as amended (the Code) our federal NOL carryforwards may be or become subject to an annual limitation in the event we have had or have in the future an "ownership change." For these purposes, an "ownership change" generally occurs if one or more stockholders or groups of stockholders who own at least 5% of a company's stock increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. Similar rules may apply under state tax laws. Although we believe there have been one or more ownership changes resulting from past transactions, we have not determined the amount of the cumulative change in our ownership resulting from our initial public offering or other transactions, or any resulting limitations on our ability to utilize our NOL carryforwards and other tax attributes. However, we believe that our ability to utilize our NOL carryforwards and other tax attributes to offset future taxable income or tax liabilities may be limited as a result of ownership changes, including potential changes that resulted from our

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initial public offering. If we earn taxable income, such limitations could result in increased future income tax liability to us and our future cash flows could be adversely affected.

As of December 31, 2024, we concluded that a full valuation allowance was necessary for substantially all of our U.S. net deferred tax assets, including our U.S. net operating losses. As of December 31, 2024, we recorded a partial valuation allowance related to our U.K. net deferred tax assets due to the indefinite-lived acquired in-process research and development in the U.K.

**Risks Related to Our Intellectual Property** 

***If we or our licensors are unable to obtain, maintain, defend and enforce patent or other intellectual property protection for any of our current or future product candidates or technology, or if the scope of the patent or other intellectual property protection obtained is not sufficiently broad, our competitors or other third parties could develop and commercialize products similar or identical to ours, and our ability to successfully commercialize any of our current or future product candidates may be adversely affected.*** 

We rely, and may in the future rely, upon a combination of patent, trade secret and know-how for any of our current and future product candidates, and proprietary technologies to prevent third parties from exploiting our achievements, thus eroding our competitive position in our market. These legal measures afford only limited protection, and competitors or others may gain access to or use our intellectual property and proprietary information. Our success depends in large part on our ability to obtain, maintain, expand, enforce, and defend the scope, ownership or control, validity and enforceability of our intellectual property protection in the United States and other countries with respect to any of our current and future product candidates and other proprietary technologies we may develop. We generally seek, and may in the future seek, to protect our proprietary position, in part, by filing patent applications in the United States and abroad relating to any of our current and future product candidates and technology, manufacturing processes and methods of use. We may also seek to protect our proprietary position by acquiring or further in-licensing relevant issued patents or pending patent applications from third parties. We will endeavor to seek additional patent protection to cover proprietary features of our product candidates and novel discoveries that are important to our business. Some of our in-licensed patent families were drafted, filed, and prosecuted by our licensors and even where we now control the right to prosecution under the applicable license agreements, we are still required to solicit input and consider comments from such licensors. Additionally, some of our patent families are in an early stage of prosecution and cannot be enforced against third parties practicing the technology claimed in such applications unless, and until, patents are issued from such applications, and then only to the extent the issued claims cover the third parties' activities. If we are unable to obtain, maintain, expand, enforce and defend the scope, ownership or control, validity and enforceability of our intellectual property protection, our business, financial condition, results of operations and prospects could be materially harmed.

Changes in either the patent laws or their interpretation in the United States and other jurisdictions may diminish our ability to protect our intellectual property, obtain, maintain, expand, enforce and defend our intellectual property rights and, more generally, could affect the value of our intellectual property or narrow the scope of our protection. We cannot predict whether the patent applications we currently or may in the future pursue or may in-license will issue as patents in any particular jurisdiction, whether the claims of any issued patents will provide sufficient protection against competitors or other third parties, or if these patents are challenged by our competitors, whether the patents will be found to be invalid, unenforceable, or not infringed or not owned or controlled by us. The patent prosecution process is expensive, time-consuming, and complex, and we may not be able to file, prosecute, maintain, enforce, defend or license all necessary or desirable patent applications or patents at a reasonable cost or in a timely manner or in all jurisdictions. It is also possible that we or our licensors will fail, or previously failed, to identify patentable aspects of research and development output in time to obtain patent protection. Although we enter into non-disclosure and confidentiality agreements with parties who have access to confidential or patentable aspects of our research and development output, such as our employees, licensees, third-party collaborators, CROs, contract manufacturers, consultants, advisors and other third parties, any of these parties may breach the agreements and disclose such output before a patent application is filed, thereby jeopardizing our ability to seek patent protection. Consequently, we may not be able to prevent any third party from using any of our technology that is in the public domain to compete with any of our current or future product candidates or technologies. In addition, our ability to obtain and maintain valid and enforceable patents depends on whether the differences between our inventions and the prior art allow our inventions to be patentable in light of the prior art. Furthermore, publications of discoveries in the scientific literature often lag behind the actual discoveries, and patent applications in the United States and other jurisdictions are typically not published until 18 months after filing, or in some cases not at all. Therefore, we cannot be certain that we or our licensors were the first to invent the inventions claimed in any of our owned or licensed patents or pending patent applications, or that we or our licensors were the first to file for patent protection of such inventions. If a third party can establish that we or our licensors were not the first to invent or the first to file for patent protection of such inventions, our patents and patent applications may not issue as patents and even if issued, may be challenged and invalidated or rendered unenforceable.

The patent position of biopharmaceutical companies generally is highly uncertain, involves complex legal and factual questions, and has been the subject of much litigation in recent years. As a result, the issuance, scope, validity, enforceability and commercial

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value of our owned and in-licensed patent rights are highly uncertain. Our current and future patent applications may not result in patents being issued.

Further, even if patents are granted, they may not afford sufficient protection of any of our current or future product candidates or their intended uses against competitors, nor can there be any assurance that the issued patents cannot be designed around, invalidated by third parties, or effectively prevent others from commercializing any of our current or future product candidates. Furthermore, even if granted, the resulting patents may be difficult to enforce. Obtaining and maintaining our owned and in-licensed patent protection depends on compliance with various procedural, document submission, information disclosure, fee payment and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated if we fail to comply with these requirements. If we experience noncompliance events that cannot be corrected and we lose our patent rights, competitors could enter the market, which would have a material adverse effect on our business. Further, any issued patents that we own or license or may own or license in the future covering any of our current or future product candidates could be narrowed or found invalid or unenforceable if challenged in court or before administrative bodies in the United States or other countries, including the U.S. Patent and Trademark Office (USPTO). Grounds for a validity challenge could be an alleged failure to meet any of several statutory requirements, including lack of novelty, obviousness, lack of written description or non-enablement. In addition, patent validity challenges may, under certain circumstances, be based upon non-statutory obviousness-type double patenting, which, if successful, could result in a finding that the claims are invalid for obviousness-type double patenting. In certain circumstances, the finding could be cured by filing a retroactive terminal disclaimer over unexpired reference patent(s), which would result in a reduction of patent term, including a reduction or loss of a patent term adjustment granted by the USPTO. Grounds for an unenforceability assertion could be an allegation that someone connected with prosecution of the patent withheld information material to patentability from the USPTO, or made a misleading statement, during prosecution. Also, patent terms, including any extensions or adjustments that may or may not be available to us, may not protect our competitive position on any of our current or future product candidates for an adequate amount of time, and we may be subject to claims challenging the inventorship, ownership, validity, enforceability of our owned or in-licensed patents and/or other intellectual property. Changes in U.S. patent law, or laws in other countries, could diminish the value of patents in general, thereby impairing our ability to protect any of our current or future product candidates. Further, if we encounter delays in our development and testing, clinical trials or regulatory review and approval of any of our current or future product candidates, the period of time during which we could market such product candidates under patent protection may be reduced (*i.e.,* patents protecting such product candidates might expire before or shortly after such product candidates are commercialized). Thus, our owned and in-licensed patents may not provide us with sufficient rights to exclude others from commercializing products similar or identical to ours or afford us any meaningful competitive advantage.

Moreover, the claim coverage in a patent application can be significantly reduced before the corresponding patent is granted. Even if patent applications issue as patents, they may not issue in a form that will provide us with any meaningful protection, prevent competitors or other third parties from competing with us or otherwise provide us with any competitive advantage. Any patents issuing from our owned and in-licensed patent applications may be challenged, narrowed, circumvented or invalidated by third parties. Consequently, we do not know whether any of our current or future product candidates and other proprietary technology will be protectable or remain protected by valid and enforceable patents. Even if a patent is granted, our competitors or other third parties may be able to circumvent the patent by developing similar or alternative technologies or products in a non-infringing manner which could materially adversely affect our business, financial condition, results of operations and prospects. Furthermore, our competitors or other third parties may avail themselves of safe harbors under the Drug Price Competition and Patent Term Restoration Act of 1984 (the Hatch-Waxman Amendments) to conduct research and clinical trials.

The issuance of a patent is not conclusive as to its inventorship, ownership, scope, validity, or enforceability, and our patent rights may be challenged in the courts or patent offices in the United States and abroad. We may be subject to post-grant proceedings at the USPTO challenging the validity of one or more claims of our owned and in-licensed patents. Third-party submissions may also be made prior to a patent's issuance, precluding the granting of a patent based on our pending patent application. A third party may also claim that our owned and in-licensed patent rights are invalid or unenforceable in a litigation. The outcome following legal assertions of invalidity and unenforceability is unpredictable. In addition, we may become involved in opposition, derivation, revocation, reexamination, reissue, interference, *inter partes* review, post-grant review proceedings or other similar proceedings in the United States and/or foreign jurisdictions challenging our patent rights. An adverse determination in any such submission, proceeding or litigation could reduce the scope of, or invalidate or render unenforceable, our patent rights, and may allow third parties, including generic drug companies, to commercialize any of our current or future product candidates and use any other proprietary technologies we may develop to compete directly with us.

Moreover, some of our owned and in-licensed patent rights may in the future be co-owned with third parties. In the United States, each co-owner has the freedom to license and exploit the technology. If we are unable to obtain an exclusive license to any such third-party co-owners' interest in such patent rights, such co-owners may be able to license their rights to other third parties, including our competitors, and our competitors could market competing products and technology. In addition, we may need the cooperation of any such co-owners of such patent rights in order to enforce such patent rights against third parties, and such cooperation may not be provided to us. Any of the foregoing could have a material adverse effect on our competitive position, business, financial condition, results of operations and prospects.

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***If we fail to comply with our obligations in the agreements under which we license intellectual property rights from third parties or otherwise experience disruptions to our business relationships with our licensors, or if any of our material license agreements are terminated, we could lose our rights to key intellectual property and components enabling our technologies.*** 

Our commercial success will heavily depend on the maintenance of our license agreements. We are a party to license agreements with Imperial College and D&D Pharmatech that are important to our business. If, for any reason, our license agreements are terminated or we otherwise lose some or all of the rights under such agreements, it would adversely affect our business. For example, our license agreements with Imperial College and D&D Pharmatech impose, and future agreements may impose, various development, diligence, commercialization, milestone payment, royalty and other obligations on us and require us to meet development timelines, or to exercise commercially reasonable efforts to develop and commercialize licensed products, in order to maintain the licenses. If we breach any obligations under such license agreements, the applicable licensor may terminate our license, which could have a material adverse effect on us.

The agreements under which we license intellectual property or technology from third parties are complex, and certain provisions in such agreements may be susceptible to multiple interpretations. The resolution of any contract interpretation disagreement that may arise could narrow what we believe to be the scope of our rights to the relevant intellectual property or technology or increase what we believe to be our financial or other obligations under the relevant agreement, either of which could have a material adverse effect on our business, financial condition, results of operations, and future prospects. For example, disputes may arise regarding the payment of the royalties or other payments due to licensors in connection with the rights we license from them. Licensors may contest the basis of such payments, including the royalties we retained and claim that we are obligated to make payments under a broader basis. In addition, disputes may arise between us and our current or future licensors regarding intellectual property subject to a license agreement, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the scope of rights granted under the license agreement and other interpretation-related issues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•whether and the extent to which our technology and processes infringe, misappropriate or otherwise violate intellectual property of the licensor that is not subject to the licensing agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our right to sublicense patents and other rights to third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our right to transfer or assign the license;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our diligence obligations under the license agreement and what activities satisfy those diligence obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our financial or other obligations under the license agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the priority of invention of patented technology; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the inventorship and ownership of inventions and know-how resulting from the joint creation or use of intellectual property by our current or future licensors and us and our partners.

Such disputes may be costly to resolve and may divert management's attention away from day-to-day activities. In addition to the costs of any litigation we may face, any legal action against us could increase our payment obligations under the respective agreement and require us to pay interest and potentially damages to such licensors. If disputes over intellectual property that we have licensed, or license in the future, prevent or impair our ability to maintain our licensing arrangements on commercially acceptable terms, we may be unable to successfully develop and commercialize the affected product candidates, which could have a material adverse effect on our business, financial condition, results of operations, and future prospects.

Despite our best efforts, our current or future licensors might conclude that we materially breached our license agreements and might therefore terminate the license agreements, thereby removing our ability to develop and commercialize products, if approved, and technology covered by these license agreements. Such termination would result in the ability of the prior licensor to assert the prior licensed patents against us, or the prior licensor could license the patents to a competitor who could assert the prior licensed patents against us. As a result, we may be required to cease our development, manufacture and commercialization of our product candidates and use of our proprietary technologies covered by the patent rights owned by the licensors, which could have a material adverse effect on us. Alternatively, the prior licensor could abandon the patent rights, which would reduce the barrier to entry into the market. If these in-licenses are terminated, or if the licensed patents fail to provide the intended exclusivity, and if competitors circumvent any regulatory exclusivity, competitors would have the freedom to market products identical to ours. These events could have a material adverse effect on our competitive position, business, financial condition, results of operations, and future prospects.

Termination of these agreements or reduction or elimination of our rights under these agreements may result in our having to negotiate new or reinstated agreements with less favorable terms or cause us to lose our rights under these agreements, including our rights to important intellectual property or technology. For example, we may agree to terms that could enable third parties (potentially including our competitors) to receive licenses to a portion of the intellectual property that is subject to our existing licenses. Any of these events could have a material adverse effect on our competitive position, business, financial conditions, results of operations, and prospects, and we may be required to identify and license replacement technology from third parties, which may not be available on reasonable terms, if at all.

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Further development of our proprietary technology and product candidates may require us to enter into additional license or collaboration agreements. Our future licenses may not provide us with exclusive rights to use the licensed intellectual property and technology, or may not provide us with exclusive rights to use such intellectual property and technology in all relevant fields of use and in all territories in which we may wish to develop or commercialize our product candidates and proprietary technology in the future.

For a more complete description of these agreements, see Part I, Item 1A, "*Business—Licensing, Partnerships and Collaborations*" in our Annual Report.

***We may not be able to protect our intellectual property and proprietary rights throughout the world.*** 

Filing, prosecuting, maintaining, enforcing and defending patents on any of our current or future product candidates in all countries throughout the world is expensive, and the laws of foreign countries may not protect our intellectual property rights to the same extent as the laws of the United States. Prosecution of foreign patent applications is often a longer process, and patents may grant at a later date, and with a shorter term, than in the United States. The requirements for patentability differ in certain jurisdictions and countries. Additionally, the patent laws of some countries do not afford intellectual property protection to the same extent as the laws of the United States. For example, other countries may impose substantial restrictions on the scope of claims, including limiting patent protection to specifically disclosed embodiments. Consequently, we may not be able to prevent third parties from practicing our inventions in all countries outside the United States, or from selling or importing products made using our intellectual property in and into the United States or other jurisdictions. Competitors may use our intellectual property in jurisdictions where we have not pursued and obtained patent protection to develop their own products and, further, may export infringing products to territories where we have patent protection, but enforcement is not as strong as that in the United States. These products may compete with our products, and our owned and in-licensed patents or other intellectual property rights may not be effective or sufficient to prevent them from competing. Many companies have encountered significant problems in protecting and defending intellectual property rights in foreign jurisdictions. The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents, trade secrets and other intellectual property protection, particularly those relating to biopharmaceutical products, which could make it difficult for us to stop the infringement of our owned and in-licensed patents or marketing of competing products in violation of our intellectual property and proprietary rights generally. In addition, some jurisdictions, such as Europe, Japan and China, may have a heightened standard for patentability than in the United States, including, for example, the requirement of claims having literal support in the original patent filing and the limitation on using supporting data that is not in the original patent filing. Under those heightened patentability requirements, we may not be able to obtain sufficient patent protection in certain jurisdictions even though the same or similar patent protection can be secured in the United States and other jurisdictions.

Proceedings to enforce our owned and in-licensed intellectual property and proprietary rights in the United States or other jurisdictions could result in substantial costs and divert our efforts and attention from other aspects of our business, could put our patents and any patents we may own or license in the future at risk of being invalidated or interpreted narrowly, could put our owned and in-licensed patent applications at risk of not issuing, and could provoke third parties to assert claims against us. We may not prevail in any lawsuits that we initiate, and the damages or other remedies awarded, if any, may not be commercially meaningful. Accordingly, our efforts to enforce our owned and in-licensed intellectual property and proprietary rights around the world may be inadequate to obtain a significant commercial advantage from the intellectual property that we develop.

Many countries have compulsory licensing laws under which a patent owner or exclusive licensee may be compelled to grant licenses to third parties, including governmental agencies. In addition, many countries limit the enforceability of patents against government agencies or government contractors. In these countries, the patent owner or exclusive licensee may have limited remedies, which could materially diminish the value of such patent. If we are forced to grant a license to third parties with respect to any patents relevant to our business, our competitive position may be impaired, and our business, financial condition, results of operations and prospects may be adversely affected. In addition, geopolitical actions in the United States and in foreign countries (such as the Russia and Ukraine conflict) could increase the uncertainties and costs surrounding the prosecution or maintenance of our patent applications or those of any licensors and the maintenance, enforcement or defense of our issued patents which could impair our competitive intellectual property position.

***Obtaining and maintaining our owned and in-licensed patent protection depends on compliance with various procedural, document submission, fee payment, and other requirements imposed by government patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements.*** 

The USPTO and various non-U.S. government agencies require compliance with several procedural, documentary, fee payment and other similar provisions during the patent application process. In some circumstances, we may be dependent on licensors to take the necessary action to comply with these requirements with respect to any licensed intellectual property. For example, periodic maintenance fees, renewal fees, annuity fees, and various other government fees on patents and applications will be due to be paid to the USPTO and various government patent agencies outside of the United States over the lifetime of our owned and in-licensed patents and applications. In certain circumstances, we may rely on licensing partners to pay these fees due to the U.S. and non-U.S. patent agencies. In some cases, an inadvertent lapse can be cured by payment of a late fee or by other means in accordance with the

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applicable rules. There are situations, however, in which non-compliance can cause abandonment or lapse of the patent or patent application, resulting in a partial or complete loss of patent rights in the relevant jurisdiction. In such an event, potential competitors might be able to enter the market with similar or identical products or technology, which could have a material adverse effect on our business, financial condition, results of operations and prospects.

The USPTO and various non-U.S. government agencies require compliance with certain foreign filing requirements during the patent application process. For example, in some countries, including the United States, China, India and some European countries, a foreign filing license is required before certain patent applications are filed. The foreign filing license requirements vary by country and depend on various factors, including where the inventive activity occurred, citizenship status of the inventors, the residency of the inventors and the invention owner, the place of business for the invention owner and the nature of the subject matter to be disclosed (e.g., items related to national security or national defense). In some, but not all cases, for example in China and India, a foreign filing license cannot be obtained retroactively in accordance with the applicable rules. There are situations, however, in which non-compliance can result in abandonment of a pending patent application or can be grounds for revoking or invalidating an issued patent, resulting in the loss of patent rights in the relevant jurisdiction. Non-compliance events that could result in abandonment or lapse of a patent or patent application include, but are not limited to, failure to respond to official actions within prescribed time limits, non-payment of fees and failure to properly legalize and submit formal documents. In such an event, potential competitors might be able to enter the relevant markets with similar or identical products or technology, which could have a material adverse effect on our business, financial condition, results of operations and prospects. We may also be dependent on licensors to take the necessary actions to comply with these requirements with respect to the intellectual property license.

Public health pandemics (such as the COVID-19 pandemic), geopolitical instability (war and terrorism), natural disasters, or similar events may impair our and our licensors' ability to comply with these procedural, document submission, fee payment, and other requirements imposed by government patent agencies, which may materially and adversely affect our ability to obtain or maintain patent protection for any of our current and future product candidates.

***Changes in patent laws or their interpretations could diminish the value of patents in general, thereby impairing our ability to protect our products.*** 

Changes in either the patent laws or interpretation of the patent laws in the United States or in other countries could increase the uncertainties and costs surrounding the prosecution of patent applications and the enforcement or defense of issued patents. Assuming that other requirements for patentability are met, prior to March 2013, in the United States, the first to invent the claimed invention was entitled to the patent, while outside the United States, the first to file a patent application was entitled to the patent. After March 2013, under the Leahy-Smith America Invents Act (the America Invents Act) enacted in September 2011, the United States transitioned to a first inventor to file system in which, assuming that other requirements for patentability are met, the first inventor to file a patent application will be entitled to the patent on an invention regardless of whether a third party was the first to invent the claimed invention. A third party that files a patent application in the USPTO after March 2013, but before us or our licensors could therefore be awarded a patent covering an invention of ours or our licensors even if we or our licensors had made the invention before it was made by such third party. This requires us to be cognizant of the time from invention to filing of a patent application. Since patent applications in the United States and most other countries are confidential for a period of time after filing or until issuance, we cannot be certain that we or our licensors are the first to either (i) file any patent application related to any of our current or future product candidates and other proprietary technologies we may develop or (ii) invent any of the inventions claimed in our patents or patent applications.

The America Invents Act also included a number of significant changes that affect the way patent applications are prosecuted and also affect patent litigation. These include allowing third party protests and submission of prior art to the USPTO during patent prosecution and additional procedures to attack the validity of a patent by USPTO-administered post-grant proceedings, including post-grant review, *inter partes* review and derivation proceedings. Because of a lower evidentiary standard in USPTO proceedings compared to the evidentiary standard in U.S. federal courts necessary to invalidate a patent claim, a third party could potentially provide evidence in a USPTO proceeding sufficient for the USPTO to hold a claim invalid even though the same evidence would be insufficient to invalidate the claim if first presented in a district court action. Accordingly, a third party may attempt to use the USPTO procedures to invalidate our patent claims or any patent claims we may license in the future that would not have been invalidated if first challenged by the third party as a defendant in a district court action.

In addition, the patent positions of companies in the development and commercialization of pharmaceuticals are particularly uncertain. Recent U.S. Supreme Court rulings have narrowed the scope of patent protection available in certain circumstances and weakened the rights of patent owners in certain situations. We cannot predict how decisions by the courts, the U.S. Congress or the USPTO may impact the value of our owned and in-licensed patent rights. For example, the U.S. Supreme Court held in *Amgen v. Sanofi (2023)* that a functionally claimed genus was invalid for failing to comply with the enablement requirement of the Patent Act. As such, our owned and in-licensed patent rights with functional claims may be vulnerable to third party challenges seeking to invalidate these claims for lacking enablement or adequate support in the specification. Depending on future actions by the U.S. Congress, the federal courts and the USPTO, the laws and regulations governing patents could change in unpredictable ways that could have a material adverse effect on our existing patent portfolio and our ability to protect and enforce our intellectual property in

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the future. In addition to heightened patentability requirements, the Supreme Court and Federal Circuit's interpretation of biosimilar product approval under the BPCIA, has evolved in recent years, affecting the "patent dance" provisions of the statute, which are intended to resolve any patent infringement issues before the approval of a biosimilar. Similarly, changes in patent law and regulations in other countries or jurisdictions or changes in the governmental bodies that enforce them or changes in how the relevant governmental authority enforces patent laws or regulations may weaken our ability to obtain new patents or to enforce patents that we have or may obtain or license in the future.

In 2012, the European Union Patent Package (EU Patent Package) regulations were passed with the goal of providing a single pan-European Unitary Patent and a new European Unified Patent Court (UPC) for litigation involving European patents. The EU Patent Package was implemented on June 1, 2023. As a result, all European patents, including those issued prior to ratification of the EU Patent Package, now by default automatically fall under the jurisdiction of the UPC, unless otherwise opted out. It is uncertain how the UPC will impact granted European patents in the biotechnology and pharmaceutical industries. Our European patents and patent applications, if issued, could be challenged in the UPC. During the first seven years of the UPC's existence, the UPC legislation allows a patent owner to opt its European patents out of the jurisdiction of the UPC. We may decide to opt out our future European patents from the UPC, but doing so may preclude us from realizing the benefits of the UPC. Moreover, if we do not meet all of the formalities and requirements for opt-out under the UPC, our future European patents could remain under the jurisdiction of the UPC. The UPC will provide our competitors with a new forum to centrally revoke our European patents and allow for the possibility of a competitor to obtain pan-European injunction. Such a loss of patent protection could have a material adverse impact on our business and our ability to commercialize our technology and any of our current and future product candidates due to increased competition and, resultantly, on our business, financial condition, results of operations and prospects. The UPC and Unitary Patent are significant changes in European patent practice. As the UPC is a new court system, there is limited precedent for the court, increasing the uncertainty of any litigation in the UPC.

***Issued patents covering any of our current or future product candidates could be found invalid or unenforceable if challenged in court or before administrative bodies in the United States or abroad.*** 

Our owned and in-licensed patent rights may be subject to priority, validity, inventorship, ownership and enforceability disputes. Legal proceedings relating to intellectual property claims, with or without merit, are unpredictable and generally expensive and time-consuming and likely to divert significant resources from our core business, including distracting our management and scientific personnel from their normal responsibilities and generally harm our business. If we or any licensors are unsuccessful in any of these proceedings, such patents and patent applications may be narrowed, invalidated or held unenforceable. Any of the foregoing could have a material adverse effect on our business, financial condition, results of operations and prospects.

If we initiate legal proceedings against a third party to enforce a patent covering any of our current or future product candidates, the defendant could counterclaim that such patent is invalid or unenforceable. In patent litigation in the United States, defendant counterclaims alleging invalidity or unenforceability are commonplace. Grounds for a validity challenge could include an alleged failure to meet any of several statutory requirements, including lack of novelty, obviousness, non-enablement, lack of sufficient written description, failure to claim patent-eligible subject matter or obviousness-type double patenting. Grounds for an unenforceability assertion could be an allegation that someone connected with prosecution of the patent withheld relevant information from the USPTO, or made a misleading or inconsistent statement, during prosecution. Third parties may raise claims challenging the validity or enforceability of a patent before administrative bodies in the United States or abroad, even outside the context of litigation. Such mechanisms include re-examination, post-grant review, *inter partes* review, interference proceedings, derivation proceedings, and equivalent proceedings in foreign jurisdictions (e.g., opposition proceedings). Such proceedings could result in the revocation of, cancellation of, shortening the term of or amendment to our owned or in-licensed patent rights or any patent rights we may obtain or license in the future in such a way that they no longer cover any of our current or future product candidates or prevent third parties from competing with our product candidates. The outcome following legal assertions of invalidity and unenforceability is unpredictable. With respect to the validity question, for example, we cannot be certain that there is no invalidating prior art, of which we and the patent examiner were unaware during prosecution. If a third party were to prevail on a legal assertion of invalidity or unenforceability, we would lose at least part, and perhaps all, of the patent protection for any of our current or future product candidates. There is also a risk that, even if the validity of such patents is upheld, the court will construe the patent's claims narrowly or decide that we do not have the right to stop the other party from using the invention at issue on the grounds that our owned and in-licensed patent claims do not cover the invention, or decide that the other party's use of our patented technology falls under the safe harbor to patent infringement under 35 U.S.C. § 271(e). Such a loss of patent protection would have a material adverse impact on our business, financial condition, results of operations and prospects.

***Patent terms may be inadequate to protect the competitive position of any of our current or future product candidates for an adequate amount of time.*** 

Patents have a limited lifespan. In the United States, if all maintenance fees are paid timely, the natural expiration of a patent is generally 20 years from its earliest U.S. non-provisional or international patent application filing date. Various extensions may be available, but the life of a patent, and the protection it affords, is limited. Even if patents covering any of our current or future product

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candidates are obtained, once the patent has expired, we may be vulnerable to competition from competitive products, including generics. Given the amount of time required for the development, testing and regulatory review of any of our current or future product candidates, patents protecting such product candidates might expire before or shortly after such product candidates are commercialized. As a result, our intellectual property may not provide us with sufficient rights to exclude others from commercializing products similar or identical to our product candidates. If we do not have sufficient patent life to protect our products, our business, financial condition, results of operations and future prospects will be adversely affected.

***If we do not obtain patent term extension and equivalent extensions outside of the United States for any of our current or future product candidates, our business may be materially harmed.*** 

Depending upon the timing, duration and specifics of any FDA regulatory approval of any of our current or future product candidates, one or more of our owned or in-licensed U.S. patents may be eligible for limited patent term extension under the Hatch-Waxman Amendments. The Hatch-Waxman Amendments permit a patent term extension of up to five years as compensation for patent term lost during the FDA regulatory review process. A patent term extension cannot extend the remaining term of a patent beyond a total of 14 years from the date of product approval, only one patent may be extended, and only those claims covering the approved drug, a method for using it or a method for manufacturing it may be extended. Similar patent term restoration provisions to compensate for commercialization delay caused by regulatory review are also available in certain foreign jurisdictions, such as in Europe under Supplemental Protection Certificate. However, we may not be granted an extension for various reasons, including failing to exercise due diligence during the testing phase or regulatory review process, failing to apply within applicable deadlines, failing to apply prior to expiration of relevant patents, or failing to satisfy other applicable requirements. Moreover, the applicable time period afforded could be less than we request. In addition, to the extent we wish to pursue patent term extension based on a patent that we may license from a third party in the future, we may need the cooperation of that third party. If we are unable to obtain patent term extension, or the foreign equivalent, or if the term of any such extension is less than we request, our competitors may obtain approval of competing products following our patent expiration, and our business, financial condition, results of operations and prospects could be materially harmed.

***We or our licensors may be subject to claims challenging the inventorship or ownership of our owned and in-licensed patents and other intellectual property.*** 

We or our licensors may be subject to claims that former employees, consultants, licensees, collaborators or other third parties have an interest in our owned or in-licensed patent rights, trade secrets, or other intellectual property as an inventor, co-inventor or owner of trade secrets. For example, we or our licensors may have inventorship or ownership disputes arise from conflicting obligations of consultants or others who are involved in developing any of our current or future product candidates and other proprietary technologies we may develop. We or our licensors may have relied on third-party consultants or collaborators or on funds from third parties, such as from a government entity, such that we or our licensors are not the sole and exclusive owners of the patents we in-licensed. The failure to name the proper inventors on a patent application can result in the patents issuing therefrom being unenforceable. Inventorship disputes may arise from conflicting views regarding the contributions of different individuals named as inventors, the effects of foreign laws where foreign nationals are involved in the development of the subject matter of the patent, conflicting obligations of third parties involved in developing our product candidates or as a result of questions regarding co-ownership of potential joint inventions. Litigation may be necessary to defend against these and other claims challenging inventorship or ownership of our owned or in-licensed patent rights, trade secrets or other intellectual property. If we or our licensors fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights, such as ownership of, or the right to use intellectual property that is important to any of our current or future product candidates and other proprietary technologies we may develop. Even if we are successful in defending against such claims, litigation could result in substantial costs and be a distraction to our management and other employees. Any of the foregoing could have a material adverse effect on our business, financial condition, results of operations and future prospects.

***If we are unable to protect the confidentiality of our and our licensors' trade secrets, our business and competitive position would be harmed.*** 

In addition to seeking patent protection for any of our current or future product candidates and proprietary technologies, we may rely on trade secret protection and confidentiality agreements to protect our unpatented know-how, technology, and other proprietary information and to maintain our competitive position. We seek to protect these trade secrets and other proprietary technology, in part, by entering into non-disclosure and confidentiality agreements with parties who have access to them, such as our employees, licensees, third-party collaborators, CROs, contract manufacturers, consultants, advisors and other third parties. We also enter into confidentiality and invention or patent assignment agreements with our employees and consultants. Trade secrets and know-how can be difficult to protect. We cannot guarantee that we have entered into applicable agreements with each party that may have or have had access to our trade secrets or proprietary technology and processes. Despite these efforts, any of these parties may breach the agreements and disclose our proprietary information, including our trade secrets, and we may not be able to obtain adequate remedies for such breaches. Monitoring unauthorized uses and disclosures is difficult, and we do not know whether the steps we have taken to protect our proprietary technologies will be effective. We cannot guarantee that any potential trade secrets and other proprietary and

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confidential information will not be disclosed or that competitors will not otherwise gain access to trade secrets. Enforcing a claim that a party illegally disclosed or misappropriated a trade secret (such as through a cybersecurity breach) is difficult, expensive and time-consuming, and the outcome is unpredictable. In addition, some courts inside and outside the United States are less willing or unwilling to protect trade secrets. If any of our trade secrets were to be lawfully obtained or independently developed by a competitor or other third party, we would have no right to prevent them from using that technology or information to compete with us. Furthermore, others may independently discover similar trade secrets and proprietary information. If any of our trade secrets were to be disclosed or misappropriated or if any such information were to be independently developed by a competitor or other third party, our competitive position would be materially and adversely harmed. Additionally, we may need to share our proprietary information, including trade secrets, with future business partners, collaborators, contractors and others located in countries at heightened risk of theft of trade secrets, including through direct intrusion by private parties or foreign actors, and those affiliated with or controlled by state actors.

We may be subject to claims that third parties have an ownership interest in our trade secrets. For example, we may have disputes arise from conflicting obligations of our employees, consultants or others who are involved in developing any of our current or future product candidates. Litigation may be necessary to defend against these and other claims challenging ownership of our trade secrets. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable trade secret rights, such as exclusive ownership of, or right to use, trade secrets that are important to any of our current or future product candidates and other proprietary technologies we may develop. Such an outcome could have a material adverse effect on our business. Even if we are successful in defending against such claims, litigation could result in substantial costs and be a distraction to our management and other employees. Any of the foregoing could have a material adverse effect on our business, financial condition, results of operations and future prospects.

***We may be subject to claims that our employees, consultants or advisors have wrongfully used or disclosed alleged trade secrets of their current or former employers or claims asserting ownership of what we regard as our own intellectual property.*** 

Some of our employees, consultants and advisors are currently or were previously employed at universities or other biotechnology or pharmaceutical companies, including our competitors or potential competitors. Although we try to ensure that our employees, consultants and advisors do not use the proprietary information or know-how of others in their work for us, we may be subject to claims that we or these individuals have used or disclosed intellectual property, including trade secrets or other proprietary information, of any such individual's current or former employer, or that we caused an employee to breach the terms of his or her non-competition or non-solicitation agreement. Litigation may be necessary to defend against these claims. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights or personnel. Even if we are successful in defending against such claims, litigation could result in substantial costs and be a distraction to our management.

In addition, while it is our policy to require our employees and contractors who may be involved in the conception or development of intellectual property to execute agreements assigning such intellectual property to us, we may be unsuccessful in executing such an agreement with each party who, in fact, conceives or develops intellectual property that we regard as our own. The assignment of intellectual property rights may not be self- executing, or the assignment agreements may be breached, and we may be forced to bring claims against third parties, or defend claims that they may bring against us, to determine the ownership of what we regard as our intellectual property. Such claims could have a material adverse effect on our business, financial condition, results of operations and future prospects.

***We may not identify relevant third-party patents or may incorrectly interpret the relevance, scope or expiration of a third-party patent, which might adversely affect our ability to develop and market any of our current or future product candidates.*** 

We cannot guarantee that any of our patent searches or analyses, including the identification of relevant patents, the scope of patent claims or the expiration of relevant patents, are or will be complete or thorough, nor can we be certain that we have identified or will identify each and every third-party patent and pending patent application in the United States and abroad that is relevant to or necessary for the commercialization of any of our current or future product candidates in any jurisdiction. Patent applications in the United States and elsewhere are not published until approximately 18 months after the earliest filing for which priority is claimed, with such earliest filing date being commonly referred to as the priority date. Therefore, patent applications covering any of our current or future product candidates could have been filed by others without our knowledge.

The scope of a patent claim is determined by the interpretation of the law, the words of a patent claim, the written disclosure in a patent and the patent's prosecution history. Our interpretation of the relevance or the scope of a patent or a pending patent application may be incorrect, which may negatively impact our ability to market our products. We may incorrectly determine that any of our current or future product candidates are not covered by a third-party patent or may incorrectly predict whether a third party's pending patent application will issue with claims of relevant scope. Alternatively, we may incorrectly determine that the Hatch-Waxman Amendments are a defense for a safe harbor to infringement of a patent we consider relevant to the research or clinical development of any of our current or future product candidates. Our determination of the expiration date of any patent in the United States or abroad that we consider relevant may be incorrect, and we may incorrectly conclude that a third-party patent is invalid and unenforceable or not infringed. Our failure to identify and correctly interpret relevant patents may negatively impact our ability to develop and market

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any of our current or future product candidates. If we fail to identify and correctly interpret relevant patents, we may be subject to infringement claims. Also, because the claims of published patent applications can change between publication and patent grant, there may be published patent applications that may ultimately issue with claims that we infringe.

As the number of competitors in the market grows and the number of patents issued in this area increases, the possibility of patent infringement claims escalates. Moreover, in recent years, individuals and groups that are non-practicing entities, commonly referred to as "patent trolls," have purchased patents and other intellectual property assets for the purpose of making claims of infringement in order to extract settlements. From time to time, we may receive threatening letters, notices or "invitations to license," or may be the subject of claims that our products and business operations infringe or violate the intellectual property rights of others. We cannot guarantee that we will be able to successfully settle or otherwise resolve such infringement claims. If we fail in any such dispute, in addition to being forced to pay damages, we may be temporarily or permanently prohibited from commercializing any of our current or future product candidates that are held to be infringing. We might, if possible, also be forced to redesign any of our current or future product candidates or services so that we no longer infringe the third-party intellectual property rights. Any of these events, even if we were ultimately to prevail, could require us to divert substantial financial and management resources that we would otherwise be able to devote to our business.

***Third-party claims of intellectual property infringement, misappropriation, or other violations against us or our collaborators could be expensive and time-consuming and may prevent or delay the development and commercialization of any of our current or future product candidates.*** 

Our commercial success depends in part on our and our collaborators' ability to avoid infringing, misappropriating and otherwise violating the patents and other intellectual property rights of third parties. There is a substantial amount of complex litigation involving patents and other intellectual property rights in the biotechnology and pharmaceutical industries, as well as administrative proceedings for challenging patents, including interference, derivation, *inter partes* review, post-grant review, and reexamination proceedings before the USPTO or oppositions and other comparable proceedings in foreign jurisdictions.

Numerous U.S. and foreign-issued patents and pending patent applications owned by third parties exist in the fields in which we plan to commercialize our programs (including obesity, weight loss and maintenance programs) and in which we are developing other proprietary technologies. As the biotechnology and pharmaceutical industries expand and more patents are issued, and as we gain greater visibility and market exposure as a public company, the risk increases that our programs and commercializing activities may give rise to claims of infringement of the patent rights of others. We cannot guarantee that our programs and other proprietary technologies we develop will not infringe existing or future patents owned by third parties. We may not be aware of patents that have already been issued for which a third party, such as a competitor in the fields in which we are developing our programs, might assert as infringed by us. It is also possible that patents owned by third parties of which we are aware, but which we do not believe we infringe or that we believe we have valid defenses to any claims of patent infringement, could be found to be infringed by us. It is not unusual that corresponding patents issued in different countries have different scopes of coverage, such that in one country a third-party patent does not pose a material risk, but in another country, the corresponding third-party patent may pose a material risk to any of our current or future product candidates. In addition, because patent applications can take many years to issue, there may be currently pending patent applications that may later result in issued patents that we may infringe. For example, pending patent applications that have been published can, subject to certain limitations, be later amended in a manner that could cover any of our current or future product candidates or the use of any of our current or future product candidates.

If any third-party claims that we infringe their patents or that we are otherwise employing their proprietary technology without authorization and initiates litigation against us, even if we believe such claims are without merit, a court could hold that such patents are valid, enforceable and infringed by us. Defense of infringement claims, regardless of their merit, would involve substantial litigation expense and would be a substantial diversion of management and other employee resources from our business, and may impact our reputation. If a successful claim of infringement against us, we may be enjoined from further developing or commercializing the infringing products or technologies. In addition, we may be required to pay substantial damages, including treble damages and attorneys' fees for willful infringement, obtain one or more licenses from third parties, pay royalties and/or redesign our infringing products or technologies, which may be impossible or require substantial time and monetary expenditure. Such licenses may not be available on commercially reasonable terms or at all. Even if we are able to obtain a license, the license would likely obligate us to pay license fees or royalties or both, and the rights granted to us might be nonexclusive, which could result in our competitors gaining access to the same intellectual property. If we are unable to obtain a necessary license to a third-party patent on commercially reasonable terms or at all, we may be unable to commercialize the infringing products or technologies or such commercialization efforts may be significantly delayed, which could in turn significantly harm our business. In addition, we may in the future pursue patent challenges with respect to third-party patents, including as a defense against the foregoing infringement claims. The outcome of such challenges is unpredictable.

Even if resolved in our favor, the foregoing proceedings could be very expensive, particularly for a company of our size, and time-consuming. Such proceedings could substantially increase our operating losses and reduce the resources available for development activities or any future sales, marketing or distribution activities. We may not have sufficient financial or other resources to conduct such proceedings adequately. Some of our competitors may be able to sustain the costs of litigation or administrative

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proceedings more effectively than we can because of greater financial resources. Such proceedings may also absorb significant time of our technical and management personnel and distract them from their normal responsibilities. Uncertainties resulting from such proceedings could impair our ability to compete in the marketplace. In addition, there could be public announcements of the results of hearings, motions or other interim proceedings or developments and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of our common stock. The occurrence of any of the foregoing could have a material adverse effect on our business, financial condition, results of operations and prospects.

We may in the future pursue invalidity proceedings with respect to third-party patents. The outcome following legal assertions of invalidity is unpredictable. Even if resolved in our favor, these legal proceedings may cause us to incur significant expenses and could distract our technical and management personnel from their normal responsibilities. In addition, there could be public announcements of the results of hearings, motions or other interim proceedings or developments and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of our common stock. Such proceedings could substantially increase our operating losses and reduce the resources available for development activities or any future sales, marketing or distribution activities. We may not have sufficient financial or other resources to conduct such proceedings adequately. Some of these third parties may be able to sustain the costs of such proceedings more effectively than we can because of their greater financial resources. Uncertainties resulting from the initiation and continuation of patent proceedings could compromise our ability to compete in the marketplace. If we do not prevail in the patent proceedings the third parties may assert a claim of patent infringement directed at any of our current or future product candidates.

***We may become involved in lawsuits to protect or enforce our owned and in-licensed patents and other intellectual property rights, which could be expensive, time-consuming and unsuccessful.*** 

Third parties, such as competitors, may infringe our owned or in-licensed patent rights. In an infringement proceeding, a court may decide that a patent we own or license is invalid or unenforceable or may refuse to stop the other party from using the invention at issue. In addition, our owned or in-licensed patent rights may become involved in inventorship, ownership, priority, enforceability, or validity disputes. To counter or defend against such claims can be expensive and time-consuming. An adverse result in any litigation proceeding could put our patent rights at risk of being invalidated, held unenforceable or interpreted narrowly. Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation and proceedings, there is a risk that some of our confidential information could be compromised by disclosure during such litigation and proceedings.

Even if resolved in our favor, litigation or other legal proceedings relating to intellectual property claims may cause us to incur significant expenses and could distract our personnel from their normal responsibilities. In addition, there could be public announcements of the results of hearings, motions or other interim proceedings or developments, and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of our common stock. Such litigation or proceedings could substantially increase our operating losses and reduce the resources available for development activities or any future sales, marketing or distribution activities. We may not have sufficient financial or other resources to conduct such litigation or proceedings adequately. Some of our competitors may be able to sustain the costs of such litigation or proceedings more effectively than we can because of their greater financial resources and more mature and developed intellectual property portfolios. Uncertainties resulting from the initiation and continuation of patent litigation or other proceedings could have a material adverse effect on our ability to compete in the marketplace.

***If our trademarks and trade names are not adequately protected, then we may not be able to build name recognition in our markets of interest and our business may be adversely affected.*** 

Our registered or unregistered trademarks or trade names may be challenged, infringed, diluted, circumvented or declared generic or determined to be infringing, misappropriating or violating other marks. We may not be able to protect our rights to these trademarks and trade names, which we need to build name recognition among potential partners or customers in the markets of interest. During trademark registration proceedings, we may receive rejections of our applications by the USPTO or in other foreign jurisdictions. Although we are given an opportunity to respond to such rejections, we may be unable to overcome them. If our trademarks are successfully challenged or determined to be infringing, misappropriating or violating other marks, we could be forced to rebrand our products, which could result in loss of brand recognition, and could require us to devote resources to advertising and marketing new brands. In addition, in the USPTO and in comparable agencies in many foreign jurisdictions, third parties are given an opportunity to oppose pending trademark applications and to seek to cancel registered trademarks. Opposition or cancellation proceedings may be filed against our trademarks, which may not survive such proceedings. Moreover, any name we may propose to use with any of our current or future product candidates in the United States must be approved by the FDA, regardless of whether we have registered it, or applied to register it, as a trademark. Similar requirements exist in Europe. The FDA typically conducts a review of proposed product names, including an evaluation of potential for confusion with other product names. If the FDA or an equivalent administrative body in a foreign jurisdiction objects to any of our proposed proprietary product names, we may be required to expend significant additional resources to identify a suitable substitute name that would qualify under applicable trademark laws, not infringe, misappropriate or otherwise violate the existing rights of third parties and be acceptable to the FDA. Furthermore, in many countries,

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owning and maintaining a trademark registration may not provide an adequate defense against a subsequent infringement claim asserted by the owner of a senior trademark.

We may not be able to obtain, protect or enforce our rights to these trademarks and trade names, which we need to build name recognition among potential partners or customers in our markets of interest. At times, competitors or other third parties may adopt trade names or trademarks similar to ours, thereby impeding our ability to build brand identity and possibly leading to market confusion. In addition, there could be potential trade name or trademark infringement, misappropriation, dilution or other claims brought by owners of other registered trademarks or trademarks that incorporate variations of our registered or unregistered trademarks or trade names. Over the long term, if we are unable to establish name recognition based on our trademarks and trade names, then we may not be able to compete effectively, and our business may be adversely affected. Our efforts to obtain, enforce or protect our proprietary rights related to trademarks, trade names, domain name, or other intellectual property may be ineffective and could result in substantial costs and diversion of resources and could adversely affect our business, financial condition, results of operations and prospects.

***Intellectual property rights do not necessarily address all potential threats.*** 

The degree of future protection afforded by our intellectual property rights is uncertain because intellectual property rights have limitations and may not adequately protect our business or permit us to maintain our competitive advantage. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•others may be able to make products that are similar to any of our current or future product candidates or utilize similar technology but that are not covered by the claims of the patents that we own or may license in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we or our licensors or collaborators might not have been the first to make the inventions covered by our current or future patent applications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we or our licensors or collaborators might not have been the first to file patent applications covering our or their inventions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•others may independently develop similar or alternative technologies or duplicate any of our technologies without infringing our intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•it is possible that our pending and future patent applications that we own or may license will not lead to issued patents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any issued patent that we own or license in the future may be held invalid or unenforceable, including as a result of legal challenges by our competitors or other third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•others may have access to the same intellectual property rights licensed to us in the future on a non-exclusive basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our competitors or other third parties might conduct research and development activities in countries where we or our licensors do not have patent rights and then use the information learned from such activities to develop competitive products for sale in our major commercial markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may not develop additional proprietary technologies that are patentable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may fail to identify potential patentable subject matter and/or may fail to file on it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the patents or other intellectual property rights of others may harm our business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may choose not to file for patent protection to maintain certain trade secrets or know-how, and a third party may subsequently file a patent application covering such intellectual property or disclose information resulting in a loss of protection for such trade secret.

Should any of the foregoing occur, it could adversely affect our business, financial condition, results of operations and prospects.

***We may not be successful in obtaining or maintaining necessary rights to product components and processes for our development pipeline through acquisitions and in-licenses.*** 

The growth of our business may depend in part on our ability to acquire, in-license or use third-party intellectual property and proprietary rights. For example, any of our current or future product candidates may require specific formulations to work effectively and efficiently, we may develop product candidates containing our compounds and pre-existing pharmaceutical compounds, we may develop combination therapies with our compounds and third-party compounds, any of which could require us to obtain rights to use intellectual property held by third parties. In addition, with respect to any patent or other intellectual property rights we may co-own with third parties, we may require licenses to such co-owners' interest to such patents. We may be unable to acquire or in-license any compositions, methods of use, processes or other third-party intellectual property rights from third parties that we identify as necessary or important to our business operations. In addition, we may fail to obtain any of these licenses at a reasonable cost or on reasonable

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terms, if at all. Were that to happen, we may need to cease use of the compositions or methods covered by those third-party intellectual property rights and may need to seek to develop alternative approaches that do not infringe, misappropriate or otherwise violate those intellectual property rights, which may entail additional costs and development delays, even if we were able to develop such alternatives, which may not be feasible. Even if we can obtain a license, it may be non-exclusive, which means that our competitors may also receive access to the same technologies licensed to us. In that event, we may be required to expend significant time and resources to develop or license replacement technology.

Additionally, we may collaborate with academic institutions to accelerate our research and development under written agreements with these institutions. In certain cases, these institutions provide us with an option to negotiate a license to any of the institution's rights in technology resulting from the collaboration. Even if we hold such an option, we may be unable to negotiate a license from the institution within the specified timeframe or under terms that are acceptable to us. If we are unable to do so, the institution may offer the intellectual property rights to others, potentially blocking our ability to pursue our program. Even if we can obtain a license, it may be non-exclusive, and our competitors may also receive access to the same technologies licensed to us.

The licensing and acquisition of third-party intellectual property rights is a competitive area, and companies that may be more established or have greater resources than we do may also be pursuing strategies to license or acquire third-party intellectual property rights that we may consider necessary or attractive to commercialize any of our current or future product candidates. More established companies may have a competitive advantage over us due to their size, cash resources or greater clinical development and commercialization capabilities. In addition, companies that perceive us to be a competitor may be unwilling to assign or license rights to us. There can be no assurance that we will be able to successfully complete these types of negotiations and ultimately acquire the rights to the intellectual property surrounding any of our current or future product candidates that we may seek to develop or market. If we are unable to successfully obtain rights to required third-party intellectual property or to maintain the existing intellectual property rights we have, we may have to abandon development of certain programs and our business, financial condition, results of operations, and prospects could suffer.

**Risks Related to the Ownership of Our Common Stock** 

***We may fail to satisfy the continued listing requirements of Nasdaq.*** 

If we fail to satisfy the continued listing requirements of Nasdaq, such as the corporate governance requirements or the minimum closing bid price requirement, Nasdaq may take steps to delist our common stock. Such a delisting would likely have a negative effect on the price of our common stock and would impair your ability to sell or purchase our common stock when you wish to do so. In the event of a delisting, we can provide no assurance that any action taken by us to restore compliance with listing requirements would allow our common stock to become listed again, stabilize the market price or improve the liquidity of our common stock, prevent our common stock from dropping below the Nasdaq minimum bid price requirement or prevent future non-compliance with the listing requirements of Nasdaq.

***The trading price of the shares of our common stock is volatile and purchasers of our common stock could incur substantial losses.*** 

Our stock price has been and is likely to remain volatile. The stock market in general and the market for stock of biopharmaceutical companies in particular have experienced extreme volatility that has often been unrelated to the operating performance of particular companies. As a result of this volatility, you may not be able to sell your common stock at a price that you consider attractive or satisfactory. The market price for our common stock may be influenced by many factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing of and ability to consummate the Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•results of our clinical trials and preclinical studies, and the results of trials of our competitors or those of other companies in our market sector;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to enroll patients in our future clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to obtain and maintain regulatory approval of any of our current or future product candidates or additional indications thereof, or limitations to specific label indications or patient populations for its use, or changes or delays in the regulatory review process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•regulatory or legal developments in the United States and foreign countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in the structure of healthcare payment systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the success or failure of our efforts to develop, acquire, or license any of our current or future product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•innovations, clinical trial results, product approvals and other developments regarding our competitors;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•announcements by us or our competitors of significant acquisitions, strategic partnerships, joint ventures, or capital commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•manufacturing, supply, or distribution delays or shortages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any changes to our relationship with any manufacturers, suppliers, collaborators or other strategic partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•achievement of expected product sales and profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•variations in our financial results or development timelines or those of companies that are perceived to be similar to us, including variations from expectations of securities analysts or investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•market conditions in the biopharmaceutical sector and issuance of securities analysts' reports or recommendations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•trading volume of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an inability to obtain additional funding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•sales of our stock by us, our insiders or our stockholders, as well as the anticipation of lock-up releases or expiration of market stand-off or lock-up agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•general economic, industry, geopolitical and market conditions, such as military conflict or war, inflation and financial institution instability, or pandemic or epidemic disease outbreaks, many of which are beyond our control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•additions or departures of senior management, directors or key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•intellectual property, product liability or other litigation against us or our inability to enforce our intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in our capital structure, such as future issuances of securities and the incurrence of additional debt; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in accounting standards, policies, guidelines, interpretations or principles.

In addition, in the past, stockholders have initiated class action lawsuits against biopharmaceutical companies following periods of volatility in the market prices of these companies' stock. Such litigation, if instituted against us, could cause us to incur substantial costs, divert our management's attention and resources and damage our reputation, which could have a material adverse effect on our business, financial condition, results of operations and future prospects.

***Our executive officers, directors, and principal stockholders, if they choose to act together, have the ability to significantly influence all matters submitted to stockholders for approval.*** 

As of November 6, 2025, our executive officers, directors and greater than 5% stockholders, in the aggregate, beneficially owned approximately 59.2% of our outstanding common stock. In computing the number of shares beneficially owned, shares of common stock subject to options, warrants or other rights held by this group that are currently exercisable or will become exercisable within 60 days of November 6, 2025, are considered outstanding, although these shares are not considered outstanding for purposes of computing the percentage ownership of any other person. As a result, such persons, to the extent they act together, will have the ability to significantly influence all matters submitted to our board of directors or stockholders for approval, including the approval of the Merger Agreement, the appointment of our management, the election and removal of directors and approval of any significant transaction, as well as our management and business affairs. This concentration of ownership may have the effect of delaying, deferring or preventing a change in control, impeding a merger, consolidation, takeover or other business combination involving us, or discouraging a potential acquirer from making a tender offer or otherwise attempting to obtain control of our business, even if such a transaction would benefit other stockholders.

***We do not currently intend to pay dividends on our common stock, so any returns on your investment will be limited to the value of our common stock.*** 

We have never declared or paid any cash dividend on our common stock. We currently anticipate that we will retain future earnings for the development, operation, and expansion of our business and do not anticipate declaring or paying any cash dividends for the foreseeable future. In addition, any future debt agreements may preclude us from paying dividends. Any return to stockholders will therefore be limited to the appreciation of their stock. There is no guarantee that shares of our common stock will appreciate in value or even maintain the price at which stockholders have purchased their shares.

***Sales of a substantial number of shares of our common stock in the public market could cause our common stock price to fall.***

The holders of approximately 71.9 million shares, or 68.4% of our total outstanding common stock, have rights, subject to some conditions, to require us to file registration statements covering the sale of their shares or to include their shares in registration statements that we may file for ourselves or our other stockholders, subject to the lock-up agreements described above. Registration of

------

these shares under the Securities Act would result in the shares becoming freely tradable without restriction under the Securities Act, except for shares purchased by affiliates. Any sales of securities by these stockholders could have a material adverse effect on the market price of our common stock.

In addition, in the future, we may issue additional shares of common stock, or other equity or debt securities convertible into common stock, in connection with a financing, acquisition, employee arrangement, or otherwise. Any such issuance could result in substantial dilution to our existing stockholders and could cause the price of our common stock to decline.

***We are currently an emerging growth company and a smaller reporting company, and the reduced disclosure requirements applicable to emerging growth companies and smaller reporting companies may make our common stock less attractive to investors.*** 

We are an emerging growth company, as defined in the JOBS Act, and may remain an emerging growth company until the last day of the fiscal year following the fifth anniversary of the completion of our initial public offering, or December 31, 2030. However, if certain events occur prior to the end of such five-year period, including if we become a "large accelerated filer," as defined under the Exchange Act, our annual gross revenue exceeds $1.235 billion or we issue more than $1.0 billion of non-convertible debt in any three-year period, we will cease to be an emerging growth company prior to the end of such five-year period.

For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•not being required to comply with the auditor attestation requirements in the assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements, unless the SEC determines the new rules are necessary for protecting the public;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•reduced disclosure obligations regarding executive compensation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

We are also a smaller reporting company as defined in the Exchange Act for the fiscal year ending December 31, 2025. We will lose our status as a smaller reporting company effective as of January 1, 2026. For our remaining periodic reports related to the fiscal year ending December 31, 2025, we may take advantage of certain of the scaled disclosures available to smaller reporting companies.

We have taken advantage of reduced reporting burdens in this Quarterly Report. For example, in this Quarterly Report, we have taken advantage of some of the scaled disclosures permitted, such as excluding quantitative and qualitative disclosures about market risk that would be required if we were not a smaller reporting company. We cannot predict whether investors will find our common stock less attractive if we rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be reduced or more volatile.

In addition, the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of these accounting standards until they would otherwise apply to private companies. We have elected to avail ourselves of this exemption and, therefore, we may not be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. We intend to rely on other exemptions provided by the JOBS Act, including without limitation, not being required to comply with the auditor attestation requirements of Section 404(b) of Sarbanes-Oxley.

***Provisions in our charter documents and under Delaware law could discourage a takeover that stockholders may consider favorable and may lead to entrenchment of management.*** 

Our amended and restated certificate of incorporation and our amended and restated bylaws contain provisions that could significantly reduce the value of our shares to a potential acquiror or delay or prevent changes in control or changes in our management without the consent of our board of directors. The provisions in our governing documents include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a classified board of directors with three-year staggered terms, which may delay the ability of stockholders to change the membership of a majority of our board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•no cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the required approval of at least 66-2/3% of the shares entitled to vote to remove a director for cause, and the prohibition on removal of directors without cause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability of our board of directors to authorize the issuance of shares of preferred stock and to determine the price and other terms of those shares, including preferences and voting rights, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquiror;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability of our board of directors to alter our amended and restated bylaws without obtaining stockholder approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the required approval of at least 66-2/3% of the shares entitled to vote to adopt, amend or repeal our amended and restated bylaws or repeal the provisions of our amended and restated certificate of incorporation regarding the election and removal of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a prohibition on stockholder action by written consent, which forces stockholder action to be taken at an annual or special meeting of our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an exclusive forum provision providing that the Court of Chancery of the State of Delaware will be the exclusive forum for certain actions and proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the requirement that a special meeting of stockholders may be called only by the board of directors, which may delay the ability of our stockholders to force consideration of a proposal or to take action, including the removal of directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•advance notice procedures that stockholders must comply with in order to nominate candidates to our board of directors or to propose matters to be acted upon at a stockholders' meeting, which may discourage or deter a potential acquiror from conducting a solicitation of proxies to elect the acquiror's own slate of directors or otherwise attempting to obtain control of us.

We are also subject to the anti-takeover provisions contained in Section 203 of the Delaware General Corporation Law. Under Section 203, a corporation may not, in general, engage in a business combination with any holder of 15% or more of its capital stock unless the holder has held the stock for three years or, among other exceptions, the board of directors has approved the transaction.

***Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware is the exclusive forum for substantially all disputes between us and our stockholders and that the federal district courts are the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.*** 

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**General Risk Factors** 

***We incur significant increased costs as a result of operating as a public company, and our management is required to devote substantial time to compliance initiatives.*** 

As a public company, we incur significant legal, accounting and other expenses that we did not incur as a private company. We are subject to the reporting requirements of the Exchange Act, which requires, among other things, that we file with the SEC annual, quarterly and current reports with respect to our business and financial condition. In addition, Sarbanes-Oxley, as well as rules subsequently adopted by the SEC and Nasdaq to implement provisions of Sarbanes-Oxley, impose significant requirements on public companies, including requiring establishment and maintenance of effective disclosure and financial controls and certain corporate governance practices. Further, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the SEC has adopted additional rules and regulations in these areas, such as mandatory "say on pay" voting requirements that will apply to us when we cease to be an emerging growth company. Stockholder activism, the current political environment and the current high level of government intervention and regulatory reform may lead to substantial new regulations and disclosure obligations, which may lead to additional compliance costs and impact the manner in which we operate our business in ways we cannot currently anticipate.

The rules and regulations applicable to public companies have substantially increased and are expected to continue to increase our legal and financial compliance costs and to make some activities more time-consuming and costly. The increased costs will decrease our net income or increase our net loss and may require us to reduce expenditures in other areas of our business. For example, we expect these rules and regulations to make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required to incur substantial costs to maintain the same or similar coverage. We cannot predict or estimate the amount or timing of additional costs we may incur to comply with these requirements. The impact of these requirements could also make it more difficult for us to attract and retain qualified persons to serve on our board of directors, our board committees or as executive officers. If these requirements divert the attention of our management and personnel from other business concerns, they could have a material adverse effect on our business, financial condition, results of operations and future prospects.

***We are subject to U.S. and certain foreign export and import controls, sanctions, embargoes, anti-corruption laws and anti-money laundering laws and regulations. We could face criminal liability and other serious consequences for violations, which could harm our business.*** 

We are subject to export control and import laws and regulations, including the U.S. Export Administration Regulations, U.S. Customs regulations, and various economic and trade sanctions regulations administered by the U.S. Treasury Department's Office of Foreign Assets Controls and anti-corruption and anti-money laundering laws and regulations, including the U.S. Foreign Corrupt Practices Act of 1977, as amended, the U.S. domestic bribery statute contained in 18 U.S.C. § 201, the U.S. Travel Act, the USA PATRIOT Act and other state and national anti-bribery and anti-money laundering laws in the countries in which we conduct activities. Anti-corruption laws are interpreted broadly and prohibit companies and their employees, agents, CROs, contractors and other collaborators and partners from authorizing, promising, offering, providing, soliciting or receiving, directly or indirectly, improper payments or anything else of value to or from recipients in the public or private sector. We may engage third parties for clinical trials outside of the United States, to sell our products abroad if and when we enter a commercialization phase, and/or to obtain necessary permits, licenses, patent registrations and other regulatory approvals. We have direct or indirect interactions with officials and employees of government agencies or government-affiliated hospitals, universities and other organizations. We can be held liable for the corrupt or other illegal activities of our employees, agents, CROs, contractors and other collaborators and partners, even if we do not explicitly authorize or have actual knowledge of such activities, and any training or compliance programs or other initiatives we undertake to prevent such activities may not be effective.

Any violations of the laws and regulations described above may result in substantial civil and criminal fines and penalties, imprisonment, the loss of export or import privileges, debarment, tax reassessments, breach of contract and fraud litigation, reputational harm and other consequences.

Furthermore, U.S. export control laws and economic sanctions prohibit the provision of certain products and services to countries, governments, and persons targeted by U.S. sanctions. U.S. sanctions that have been or may be imposed may impact our ability to continue activities at future clinical trial sites within regions covered by such sanctions. If we fail to comply with export and import regulations and such economic sanctions, penalties could be imposed, including fines and/or denial of certain export privileges. These export and import controls and economic sanctions could also adversely affect our supply chain.

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***We and any of our third-party manufacturers or suppliers may use potent chemical agents and hazardous materials, and any claims relating to improper handling, storage, or disposal of these materials could be time-consuming or costly.*** 

We and any of our third-party manufacturers or suppliers and our current or any future collaborators may use biological materials, potent chemical agents and hazardous materials, including chemicals and biological agents and compounds that could be dangerous to human health and safety of the environment. Our operations and the operations of our third-party manufacturers and suppliers also produce hazardous waste products. Federal, state and local laws and regulations govern the use, generation, manufacture, storage, handling and disposal of these materials and wastes. Compliance with applicable environmental laws and regulations may be expensive, and current or future environmental laws and regulations may impair our product development efforts. In addition, neither we or our third-party manufacturers and suppliers can eliminate the risk of accidental injury or contamination from these materials or wastes. We do not carry specific biological or hazardous waste insurance coverage, and our property, casualty and general liability insurance policies specifically exclude coverage for damages and fines arising from biological or hazardous waste exposure or contamination. In the event of contamination or injury at our, our manufacturers' or our suppliers' sites, we could be held liable for damages or be penalized with fines in an amount exceeding our resources, and our clinical trials or regulatory approvals could be suspended. Although we maintain workers' compensation insurance for certain costs and expenses we may incur due to injuries to our employees resulting from work-related injuries, this insurance may not provide adequate coverage against potential liabilities. We do not maintain insurance for toxic tort claims that may be asserted against us in connection with the storage or disposal of biologic, hazardous or radioactive materials.

In addition, we may incur substantial costs in order to comply with current or future environmental, health, and safety laws and regulations, which have tended to become more stringent over time. These current or future laws and regulations may impair our research, development or production efforts. Failure to comply with these laws and regulations also may result in substantial fines, penalties or other sanctions or liabilities, which could materially adversely affect our business, financial condition, results of operations and future prospects.

***Business disruptions could seriously harm our future revenue and financial condition and increase our costs and expenses.*** 

Our operations and the operations of our manufacturers, suppliers, collaborators, CROs and clinical sites could be subject to earthquakes, power shortages, telecommunications or infrastructure failures, cybersecurity incidents, physical security breaches, water shortages, floods, hurricanes, typhoons, blizzards and other extreme weather conditions, fires, public health pandemics or epidemics (including, for example, the COVID-19 pandemic) and other natural or manmade disasters, geopolitical actions or business interruptions, for which we are predominantly self-insured. We rely on third-party manufacturers or suppliers in various countries to produce our current or future product candidates and its components and on CROs and clinical sites to conduct our clinical trials, and do not have a redundant source of supply for all components of any of our current or future product candidates. Our ability to obtain clinical or, if approved, commercial, supplies of any of our current or future product candidates could be disrupted if the operations of these suppliers were affected by a man-made or natural disaster, geopolitical action or other business interruption, and our ability to commence, conduct or complete our clinical trials in a timely manner could be similarly adversely affected by any of the foregoing. The occurrence of any of these business disruptions could seriously harm our operations and financial condition and increase our costs and expenses.

***Unstable market and economic conditions and adverse developments with respect to financial institutions and associated liquidity risk may have serious adverse consequences on our business, financial condition and stock price.*** 

From time to time, the global credit and financial markets have experienced extreme volatility and disruptions, including severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability. The financial markets and the global economy may also be adversely affected by the current or anticipated impact of military conflict, including the conflicts between Russia and Ukraine and in the Middle East, terrorism or other geopolitical events, such as new tariffs or proposed tariffs between the U.S. and other nations. Sanctions imposed by the United States and other countries in response to conflicts, including the one in Ukraine, may also adversely impact the financial markets and the global economy, and any economic countermeasures by the affected countries or others could exacerbate market and economic instability. In addition, in 2023 the closures of financial institutions and their placement into receivership with the FDIC created bank-specific and broader financial institution liquidity risk and concerns. Future adverse developments with respect to specific financial institutions or the broader financial services industry may lead to market-wide liquidity shortages, impair the ability of companies to access near-term working capital needs, and create additional market and economic uncertainty. There can be no assurance that future credit and financial market instability and a deterioration in confidence in economic conditions will not occur.

Our general business strategy may be adversely affected by any such economic downturn, liquidity shortages, volatile business environment or continued unpredictable and unstable market conditions. If the equity and credit markets deteriorate, or if adverse developments are experienced by financial institutions, it may cause short-term liquidity risk and also make any necessary debt or equity financing more difficult, more costly, more onerous with respect to financial and operating covenants and more dilutive. Failure to secure any necessary financing in a timely manner and on favorable terms could have a material adverse effect on our growth strategy, financial performance and stock price and could require us to delay, limit, reduce or abandon product development or future

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commercialization efforts or grant rights to develop and market our product candidates even if we would otherwise prefer to develop and market such product candidates ourselves. In addition, there is a risk that one or more of our current service providers, financial institutions, manufacturers and other partners may be adversely affected by the foregoing risks, which could directly affect our ability to attain our operating goals on schedule and on budget.

***If securities or industry analysts publish unfavorable research or reports about our business, our stock price and trading volume could decline.*** 

The trading market for our common stock will depend in part on the research and reports that securities or industry analysts publish about us, our business, our market or our competitors. If one or more of the analysts who covers us downgrades our stock, or if we fail to meet the expectations of one or more of these analysts, our stock price would likely decline. If one or more of these analysts ceases to cover us or fails to regularly publish reports on us, interest in our stock could decrease, which could cause our stock price or trading volume to decline.

***If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired, investors may lose confidence in our financial reporting and the trading price of our common stock may decline.*** 

Pursuant to Section 404 of Sarbanes-Oxley, our management will be required to report upon the effectiveness of our internal control over financial reporting beginning with our second annual report. When we lose our status as an "emerging growth company" and do not otherwise qualify as a non-accelerated filer, our independent registered public accounting firm will be required to attest to the effectiveness of our internal control over financial reporting. The rules governing the standards that must be met for our management to assess our internal control over financial reporting are complex and require significant documentation, testing and possible remediation. To comply with the requirements of being a reporting company under the Exchange Act, we may need to upgrade our information technology systems; implement additional financial and management controls, reporting systems and procedures; and hire additional accounting and finance staff. If we or, if required, our auditors are unable to conclude that our internal control over financial reporting is effective, investors may lose confidence in our financial reporting and the trading price of our common stock may decline.

We cannot assure you that there will not be material weaknesses or significant deficiencies in our internal control over financial reporting in the future. Any failure to maintain internal control over financial reporting could severely inhibit our ability to accurately report our financial condition, results of operations or cash flows. If we are unable to conclude that our internal control over financial reporting is effective, or if our independent registered public accounting firm determines we have a material weakness or significant deficiency in our internal control over financial reporting once that firm begins its Section 404 reviews, investors may lose confidence in the accuracy and completeness of our financial reports, the market price of our common stock could decline, and we could be subject to sanctions or investigations by Nasdaq, the SEC or other regulatory authorities. Failure to remedy any material weakness in our internal control over financial reporting, or to implement or maintain other effective control systems required of public companies, could also restrict our future access to the capital markets.

***We could be subject to securities class action litigation.*** 

In the past, securities class action litigation has often been brought against a company following a decline in the market price of its securities. This risk is especially relevant for us because biotechnology and biopharmaceutical companies have experienced significant stock price volatility in recent years. If we face such litigation, even if ultimately decided in our favor, it could result in substantial costs and a diversion of our management's attention and resources, which could harm our business.

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**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

***Recent Sales of Unregistered Equity Securities*** 

None.

***Use of Proceeds from our Public Offering of Common Stock***

On February 3, 2025, we completed the initial public offering (IPO) of our common stock pursuant to which we issued and sold 17,569,444 shares of our common stock at a price to the public of $18.00 per share.

All shares issued and sold in the initial public offering were registered under the Securities Act pursuant to a Registration Statement on Form S-1 (File No. 333-284225), as amended (the Registration Statement), declared effective by the SEC on January 30, 2025.

There has been no material change in the expected use of the net proceeds from our IPO as described in our Registration Statement. The remaining net proceeds from our IPO have been invested primarily in savings and money market accounts. There has been no material change in the expected use of the net proceeds from our initial public offering as described in our last periodic report.

***Issuer Purchases of Equity Securities***

None.

**Item 3. Defaults Upon Senior Securities.**

Not applicable.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item 5. Other Information.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) During the quarter ended September 30, 2025, none of our directors or officers (as defined in Rule 16a-1 under the Exchange Act) adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" (as those terms are defined in Item 408 of Regulation S-K).

**Item 6. Exhibits.**

Furnish the exhibits required by Item 601 of Regulation S-K (§ 229.601 of this chapter).

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Exhibit**<br>**Number** | **Description** | **Form** | **File No.** | **Exhibit** | **Filing Date** |
| 2.1<sup>†</sup><br>| [<u>Agreement and Plan of Merger, dated as of September 21, 2025, among Pfizer Inc., Mayfair Merger Sub, Inc. and Metsera, Inc.</u>](https://www.sec.gov/Archives/edgar/data/2040807/000119312525210030/d921605dex21.htm) | 8-K | 001-42489 | 2.1 | 9/22/25 |
| 2.2<sup>†</sup> | [<u>Amendment No. 1 to the Agreement and Plan of Merger by and among Metsera, Inc., Pfizer Inc., and Mayfair Merger Sub, Inc.</u>](https://www.sec.gov/Archives/edgar/data/2040807/000119312525273292/d50740dex21.htm) | 8-K | 001-42489 | 2.1<br>| 11/10/25 |
| 2.3 | [<u>Third Deed of Amendment to the Share Purchase Agreement, dated September 22, 2023, by and between the Registrant and the selling shareholders of Zihipp Ltd., as amended.</u>](mtsr-ex2_2.htm) |  |  |  | \* |
| 2.4 | [<u>Voting and Support Agreement, dated as of September 21, 2025, by and between Pfizer Inc., Metsera, Inc., ARCH Venture Fund XII, L.P., ARCH Venture Partners XII, L.P., ARCH Venture Partners</u>](https://www.sec.gov/Archives/edgar/data/2040807/000119312525210030/d921605dex22.htm) | 8-K | 001-42489 | 2.2 | 9/22/25 |

---

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---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | [<u>XII, LLC, ARCH Venture Fund XIII, L.P., ARCH Venture Partners XIII, L.P. and ARCH Venture Partners XIII, LLC.</u>](https://www.sec.gov/Archives/edgar/data/2040807/000119312525210030/d921605dex22.htm) |  |  |  |  |  |
| 2.5 | [<u>Voting and Support Agreement, dated as of September 21, 2025, by and between Pfizer Inc., Metsera, Inc., Validae Health, L.P. and Population Health Partners GP, LLC</u>](https://www.sec.gov/Archives/edgar/data/2040807/000119312525210030/d921605dex23.htm) | 8-K | 001-42489 | 2.3 | 9/22/25 |  |
| 10.1 | [<u>Form of Letter Agreement, dated September 22, 2025</u>](https://www.sec.gov/Archives/edgar/data/2040807/000119312525210030/d921605dex101.htm) | 8-K | 001-42489 | 10.1 | 9/22/25 |  |
| 31.1 | [<u>Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](mtsr-ex31_1.htm) |  |  |  |  | \* |
| 31.2 | [<u>Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](mtsr-ex31_2.htm) |  |  |  |  | \* |
| 32.1 | [<u>Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](mtsr-ex32_1.htm) |  |  |  |  | \*\* |
| 32.2 | [<u>Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](mtsr-ex32_2.htm) |  |  |  |  | \*\* |
| 101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL Document. |  |  |  |  | \* |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Linkbase Document. |  |  |  |  | \* |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |  |  |  |  | \* |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |  |  |  |  | \* |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |  |  |  |  | \* |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |  |  |  |  | \* |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |  |  |  |  | \* |

---

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\* Filed herewith.

\*\* Furnished herewith.

† Schedules omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted schedule to the SEC upon request.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **METSERA, INC.** | **METSERA, INC.** |
| Date: November 12, 2025 | By: | /s/ Christopher Whitten Bernard |
|  |  | **Christopher Whitten Bernard** |
|  |  | **President and Chief Executive Officer** |
|  |  | ***(Principal Executive Officer)*** |
| Date: November 12, 2025 | By: | /s/ Christopher J. Visioli |
|  |  | **Christopher J. Visioli** |
|  |  | **Chief Financial Officer** |
|  |  | ***(Principal Financial Officer)*** |

---

------

## Exhibit 2.2

**Exhibit 2.2**

Execution Version

[\*\*\*] Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10). Such excluded information is not material and would likely cause competitive harm to the registrant if publicly disclosed.

Dated

3 July 2025 between

SELLERS' REPRESENTATIVE

and

METSERA, INC.

THIRD DEED OF AMENDMENT

to the share purchase agreement relating to Zihipp Ltd originally entered into on 22 September 2023 as amended on 4 March 2024

and as further amended on 24 May 2024

![img215183358_0.jpg](img215183358_0.jpg)

------

THIS DEED is made on 3 <u>July</u> 2025

BETWEEN

(1) DR. GEORGE DUNSTAN COOKE, of [\*\*\*] in his capacity as Sellers' Representative pursuant to the SPA (as defined below) ("Sellers' Representative"); and

&nbsp;&nbsp;&nbsp;&nbsp;(2) METSERA, INC., Delaware corporation, whose principal office is at 3 World Trade Center, 175 Greenwich St, New York, NY 10007, USA (the

"Buyer").

WHEREAS:

(A) On 22 September 2023, the Sellers (as defined therein) and the Buyer entered into a share purchase agreement (the "Original SPA") pursuant to which, among other things, the Sellers agreed to sell and the Buyer agreed to buy the entire issued share capital of Zihipp Ltd, as amended by way of a first deed of amendment dated 4 March 2024 and a second deed of amendment dated 24 May 2024, each between the Sellers' Representative and the Buyer (the "SPA").

&nbsp;&nbsp;&nbsp;&nbsp;(B) The parties have agreed to amend Schedule 5 (Contingent Consideration) in the SPA on and subject to the terms of this Deed in respect of the

[\*\*\*] Development Milestones and the [\*\*\*] Development Milestones.

IT IS AGREED as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. THIS DEED

&nbsp;&nbsp;&nbsp;&nbsp;1.1 This Deed is supplemental to, and should be read in conjunction with, and construed as one document with, the SPA.

&nbsp;&nbsp;&nbsp;&nbsp;1.2 Except where this Deed expressly states otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1 the capitalised terms used in this Deed shall, unless otherwise defined herein or the context otherwise requires, have the respective meanings ascribed to them in the SPA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2 the principles of construction set out in clause 1 (Definitions and Interpretations) of the SPA apply also (where relevant to this Deed);

and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3 unless the contrary intention is expressed, references in this Deed to a schedule, clause or paragraph will be a reference to that schedule, clause or paragraph in this Deed.

1.3 The parties agree and declare that this Deed shall constitute a "Transaction Document" for the purposes of, and in accordance with the definition of "Transaction Documents" in, the SPA.

&nbsp;&nbsp;&nbsp;&nbsp;2. AMENDMENT

&nbsp;&nbsp;&nbsp;&nbsp;2.1 It is hereby irrevocably agreed and declared with effect from the date of this Deed that the SPA shall be amended in accordance with clause

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2.1 of the SPA by the modifications set out in the blackline attached hereto as Schedule 1, where deletions to the Original SPA are shown in struck through text and additions are shown in underlined text, whereupon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1 the SPA as amended by this Deed shall remain in full force and effect and each of the parties agrees it continues to be bound by the terms of the SPA as amended by this Deed;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2 any reference in the SPA to "this Agreement" shall, unless the context requires otherwise, be construed as a reference to the SPA as amended by this Deed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.3 the rights and obligations of the parties thereto shall be governed by and construed in accordance with the provisions of the SPA as amended by this Deed.

2.2 The Buyer and the Sellers' Representative acknowledge and agree that the modifications set out in Schedule 1 affect all Sellers equally and, in particular, do not adversely and disproportionately affect the rights, preferences and privileges of the Fund Sellers for the purposes of clause

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2.1 of the SPA.

&nbsp;&nbsp;&nbsp;&nbsp;3. WARRANTIES

&nbsp;&nbsp;&nbsp;&nbsp;3.1 The Buyer warrants to the Sellers' Representative as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1 it has the requisite power and authority to enter into and perform its obligations under this Deed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2 this Deed constitutes binding obligations on it in accordance with its terms; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3 the execution and delivery of, and performance by it of its obligations under this Deed will not result in a breach of any provision of its memorandum or articles of association (or equivalent constitutional documents in any other jurisdiction) or require the consent of any third party or parties.

&nbsp;&nbsp;&nbsp;&nbsp;3.2 The Sellers' Representative warrants to the Buyer as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1 he is the current Sellers' Representative duly appointed pursuant to clause 16 of the SPA and that the appointment has not been revoked as at the date of this Deed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2 he is authorised to enter into this Deed in his capacity as Sellers' Representative under the SPA.

&nbsp;&nbsp;&nbsp;&nbsp;4. INCORPORATION OF TERMS

&nbsp;&nbsp;&nbsp;&nbsp; The provisions of clauses 18 (General), 19 (Notices) and 20 (Applicable Law and Jurisdictions) of the SPA will be deemed to be incorporated in this Deed as if set out in full in this Deed and as if references in those clauses to "this Agreement" were references to this Deed.

------

IN WITNESS of which this document has been executed and delivered as a deed on the date which first appears on page 1 above.

EXECUTED and DELIVERED

as a DEED by METSERA, INC.

/s/ Chris Visioli

Name: Chris Visioli

Title: CFO and CBO

(Deed of Amendment to Share Purchase Agreement)

------

SIGNED as a DEED by GEORGE DUNSTAN COOKE in the presence of a witness:))) /s/ George Dunstan Cooke

Witness Signature: /s/ Sumitra Sarma Witness Name: Sumitra Sarma Witness Address: [\*\*\*]

Witness Occupation: [\*\*\*]

(Deed of Amendment to Share Purchase Agreement)

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SCHEDULE 1

AMENDED SHARE PURCHASE AGREEMENT

------

Private & Confidential

Execution Version

Amendments pursuant to third deed of amendment

[\*\*\*] Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10). Such excluded information is not material and would likely cause competitive harm to the registrant if publicly disclosed.

Dated 2023

Between

THE PERSONS LISTED IN PART B OF SCHEDULE 1

as Sellers and

METSERA, INC.

as Buyer

SHARE PURCHASE AGREEMENT FOR THE SALE AND PURCHASE OF

THE ENTIRE ISSUED SHARE CAPITAL OF ZIHIPP LTD

------

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;**TABLE OF CONTENTS** | <br>Page |
| 1. | DEFINITIONS AND INTERPRETATIONS |  | 1 |
| 2. | SALE OF SHARES |  | 20 |
| 3. | CONSIDERATION |  | 21 |
| 4. | RETAINED WARRANTY CONSIDERATION |  | 23 |
| 5. | ALLOCATION SCHEDULE |  | 26 |
| 6. | COMPLETION STATEMENT |  | 27 |
| 7. | COMPLETION |  | 29 |
| 8. | TERMINATION OF INVESTMENT AGREEMENT |  | 31 |
| 9. | WARRANTIES AND COVENANT |  | 31 |
| 10. | PROTECTION OF GOODWILL |  | 33<u>34</u> |
| 11. | CONFIDENTIALITY |  | 37 |
| 12. | ANNOUNCEMENTS |  | 38 |
| 13. | POST-COMPLETION ARRANGEMENTS |  | 39 |
| 14. | SET-OFF |  | 38<u>39</u> |
| 15. | COSTS, EXPENSES AND TAXES |  | 42 |
| 16. | SELLERS' REPRESENTATIVE |  | 43 |
| 17. | PAYMENTS |  | 44 |
| 18. | GENERAL |  | 45 |
| 19. | NOTICES |  | 48 |
| 20. | APPLICABLE LAW AND JURISDICTIONS |  | 51 |
| SCHEDULE 1 THE COMPANY, THE SUBSIDIARY AND SANPLENA | SCHEDULE 1 THE COMPANY, THE SUBSIDIARY AND SANPLENA | SCHEDULE 1 THE COMPANY, THE SUBSIDIARY AND SANPLENA | 51<u>52</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part A The Company, the Subsidiary and SanPlena | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part A The Company, the Subsidiary and SanPlena | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part A The Company, the Subsidiary and SanPlena | 51<u>52</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part B The Sellers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part B The Sellers | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part B The Sellers | 54<u>53</u> |
| SCHEDULE 2 COMPLETION OBLIGATIONS | SCHEDULE 2 COMPLETION OBLIGATIONS | SCHEDULE 2 COMPLETION OBLIGATIONS | 56<u>54</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part A Sellers' Obligations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part A Sellers' Obligations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part A Sellers' Obligations | 56<u>54</u> |

---

------

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part B Buyer's Obligations | 58<u>56</u> |
| SCHEDULE 3 FUNDAMENTAL TITLE WARRANTIES | 59<u>57</u> |
| SCHEDULE 4 LIMITATIONS ON LIABILITY | 61<u>59</u> |
| SCHEDULE 5 CONTINGENT CONSIDERATION | 65<u>63</u> |
| SCHEDULE 6 COMPLETION STATEMENT | 89<u>81</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part A Left Deliberately Blank | 89<u>81</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part B Preparation of the Completion Statement | 90<u>82</u> |
| &nbsp;&nbsp; <br>i |  |

---

------

AGREED FORMS

Agreed Form "A" Agreed Protocol

Agreed Form "B" Allocation Schedule Template

Agreed Form "C<u>B</u>" Board Minutes of the Company and the Subsidiary

Agreed Form "D<u>C</u>" Bonus Letters Agreed Form "E<u>D</u>" Comfort Letters Agreed Form "F<u>E</u>" Data Room Index Agreed Form "G<u>F</u>" Disclosure Letter

Agreed Form "H<u>G</u>" Employment Agreements

Agreed Form "I<u>H</u>" Escrow Agreement

Agreed Form "JI" Estimated Completion Statement

Agreed Form "K<u>J</u>" Imperial Agreements

Agreed Form "L<u>K</u>" Indemnity for Lost Share Certificates Agreed Form "M<u>L</u>" JV Change of Control Consent Agreed Form "N<u>M</u>" JV Operating Agreement

Agreed Form "O<u>N</u>" JV Operating Agreement Amendment

Agreed Form "P<u>O</u>" Letters of Resignation Agreed Form "Q<u>P</u>" Loan Note Instrument Agreed Form "RQ" Stock Transfer Forms

Agreed Form "S<u>R</u>" Synthetic Executive Option Agreement

Agreed Form "T<u>S</u>" Warranty Deed

Agreed Form "U<u>T</u>" W&I Policy

ii

------

THIS AGREEMENT is made on 2023 between:

&nbsp;&nbsp;&nbsp;&nbsp;(1) EACH OF THE PERSONS LISTED IN PART B OF SCHEDULE 1 (each a "Seller" and, collectively, the "Sellers"); and

&nbsp;&nbsp;&nbsp;&nbsp;(2) METSERA, INC. a Delaware corporation, whose principal office is at 1200 Morris Turnpike, Suite 3005, Short Hills, NJ 07078, USA (the

"Buyer"),

(together, the "parties" and each a "party").

BACKGROUND

&nbsp;&nbsp;&nbsp;&nbsp;(A) The Company is a private company limited by shares. Details of the Company are set out in Schedule 1.

&nbsp;&nbsp;&nbsp;&nbsp;(B) Each Seller has agreed to sell and the Buyer has agreed to buy the Shares on the terms and subject to the conditions of this Agreement. (C) It is intended that the Buyer will buy the entire issued and to be issued share capital of the Company pursuant to the terms set out in this

Agreement.

IT IS AGREED as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. DEFINITIONS AND INTERPRETATIONS

&nbsp;&nbsp;&nbsp;&nbsp;1.1 In this Agreement, the following words and expressions have the following meanings:

"Accounting Policies" means the requirements, accounting policies and accounting methods set out in Part B of Schedule 6; "Affiliate" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of a Person that is a body corporate, any subsidiary or parent company of that Person and any subsidiary of any such parent company, in each case, from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of a Person who is an individual, any Family Member or persons acting in its or their capacity as trustee or trustees of a trust of which such individual is a settlor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the case of a Person who is a limited partnership or Fund (i) any partner, general partner, trustee, nominee, custodian, operator or manager of, or investment adviser to such limited partnership or Fund; (ii) any Fund that has the same general partner, trustee, nominee, operator, manager or investment adviser as such limited partnership or Fund; (iii) any Fund that is advised, or the assets of which (or some material part thereof) are managed (whether solely or jointly with others), by such limited partnership or Fund; (iv) any Fund in respect of which such person or its general partner, investment advisers, manager, operator, nominee is a general partner, manager or investment adviser; or (v) any investors in a Fund that directly or indirectly hold an interest in such limited partnership or Fund;

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&nbsp;&nbsp;&nbsp;&nbsp;(d) in the case of [\*\*\*], means [\*\*\*];

"Agreed Form" means a form agreed between the Sellers' Representative and the Buyer on or prior to the date of this Agreement, and for the purposes of identification initialled (or signed) or otherwise acknowledged in writing (including by email) as agreed form by or on behalf of the Sellers' Representative and the Buyer or their respective legal advisers;

"Allocation Schedule" means an allocation schedule in the form of the Allocation Schedule Template; "Allocation Schedule Template" means the pro forma "Allocation Schedule" in the Agreed Form; "Announcement" has the meaning given to the term in Clause 12.1;

"Annual JV Payment" has the meaning set out in Paragraph 2.5(b)(iii) of Schedule 5; "Annual JV Payment Date" has the meaning set out in Paragraph 2.5(b) of Schedule 5; "Articles" means the Articles of Association of the Company, as adopted on 12 December 2019; "Attorney" has the meaning given to such term in Clause 7.5;

"Balance Sheet Assets/Liabilities" means any assets and liabilities required to be set out on a balance sheet prepared in accordance with the Accounting Policies by any member of the Target Group provided, that, for clarity, for purposes of this definition the Balance Sheet Assets/Liabilities shall not include any External Indebtedness;

"Base Consideration" means US$30,000,000;

"Bonus Letters" means the bonus letters between the Company and each of the Bonus Recipients in the Agreed Form, dated on or around the date of this Agreement;

"Bonus Recipients" means [\*\*\*];

"Business" means the businesses conducted by the Target Group and/or proposed to be conducted by the Target Group as of the date hereof; "Business Day" means any day other than a Saturday, Sunday or any day on which the Federal Reserve Bank of New York is closed or that is a

public or bank holiday in England or Abu Dhabi;

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"Business Warranties" means the representations and warranties given by the Warrantors pursuant to clause 2 of the Warranty Deed and set out in Schedule 2 of the Warranty Deed that, for the avoidance of doubt, includes the Tax Warranties;

"Buyer's Group" means the Buyer and any other body corporate which is from time to time a holding company of the Buyer, a subsidiary of the Buyer or a subsidiary of a holding company of the Buyer and references to "Buyer's Group Company" and to "any member of the Buyer's Group" shall be construed accordingly;

"Buyer's Solicitors" means Ropes & Gray International LLP, 60 Ludgate Hill, London EC4M 7AW, UK;

"Cash" means all cash held by any Target Group Company and all balances of any Target Group Company with any bank or other financial institution but excluding:

&nbsp;&nbsp;&nbsp;&nbsp;(a) any amounts required to satisfy drawn but not presented cheques or equivalent; and

(b) cash held as a result of (i) creditors of any Target Group Company not being paid in the Ordinary Course of Trading or (ii) debt collections having been collected in advance of when they would otherwise have been collected in the Ordinary Course of Trading due to actions by the Target Group;

"C.F.R." means the US Code of Federal Regulations, as amended;

"Change of Control Payment" means: (a) any bonus, severance or other payment or other form of compensation that is created, accelerated, accrues or becomes payable by any Target Group Company to any present or former shareholder (subject to Clause 9.1.4), director, officer, employee or independent contractor thereof, including pursuant to any employment agreement, benefit plan, any other Contractual Obligation, the Bonus Letters or the Synthetic Executive Option Agreement and including any Taxes payable on or triggered by any such payment which is the liability of a Target Group Company and not deducted from an amount taken into account in (a); and (b) without duplication of any amount included within the definition of Company Transaction Expenses, any other payment, expense or fee that accrues or becomes payable by any Target Group Company to any Governmental Authority or other Person under any Legal Requirement or Contractual Obligation, including in connection with the making of any filings, the giving of any notices or the obtaining of any consents, authorizations or approvals, in the case of each of (a) and (b), as a result of the execution and delivery of this Agreement or any ancillary document or the consummation of the transactions contemplated by the Transaction Documents that is paid or payable by any Target Group Company and, together with any Tax incurred, paid or payable by a Target Group Company in respect of such amounts, but excluding in all circumstances any amount that is created, accelerated, accrues or becomes payable as a result of any action or omission of the Buyer or the Buyer's Group or, after Completion, any member of the Target Group;

------

"Claim" means any claim by the Buyer pursuant to Clause 9 or clause 2 of the Warranty Deed in connection with or arising from a Business

Warranty, but excluding a Fundamental Warranty Claim or a Tax Warranty Claim, or a Tax Covenant Claim; "Comfort Letters" means the OC Comfort Letter and the Zihipp Comfort Letter;

"Companies Act" means the Companies Act 2006;

"Company" means Zihipp Ltd, details of which are set out in Part A of Schedule 1;

"Company In-Licensed IP Rights" has the meaning set out in the definition of Inbound IP Contracts;

"Company IP Rights" means all Intellectual Property Rights owned, licensed, purported to be owned or licensed, used or held for use by or on behalf of the Target Group Companies or used by the Target Group Companies in the Business, including all Company Owned IP Rights and all Company In-Licensed IP Rights;

"Company Owned IP Rights" means the Intellectual Property Rights solely or jointly owned by the Target Group Companies; "Company Peptides" means [\*\*\*];

"Company Product" means [\*\*\*];

"Company Transaction Expenses" means all costs, fees, expenses and liabilities (including indemnities) incurred by any Seller or, prior to Completion, any member of the Target Group in connection with or in anticipation of the negotiation, execution and delivery of this Agreement and the Transaction Documents or the consummation of the transactions contemplated by the Transaction Documents or in connection with or in anticipation of any alternative transactions considered by the Company (including any legal costs, or Financial Advisor Fee) to the extent such costs, fees, expenses and liabilities are legally required to be paid or are incurred or owing (but unpaid) by any Target Group Company, together with any irrecoverable VAT incurred, paid or payable in respect of such amounts, but excluding any Change of Control Payments;

"Completion" means completion of the sale and purchase of the Shares in accordance with this Agreement;

"Completion Balance Sheet Assets/Liabilities" the amount of Balance Sheet Assets/Liabilities of the Target Group as at the Completion Date as shown in the Completion Statement;

"Completion Cash" the amount of Cash as at the Completion Date as shown in the Completion Statement;

"Completion Change of Control Payments" the amount of Change of Control Payments of the Target Group as at the Completion Date as shown in the Completion Statement;

------

"Completion Company Transaction Expenses" the amount of Company Transaction Expenses as at the Completion Date as shown in the

Completion Statement;

"Completion Date" means the date on which Completion occurs, being the date of this Agreement (or such other date as the Buyer and the

Sellers' Representative may agree in accordance with Clause 7 or otherwise in writing);

"Completion External Indebtedness" the amount of External Indebtedness of the Target Group as at the Completion Date as shown in the

Completion Statement;

"Completion Payment" has the meaning given to such term in Clause 3.7;

"Completion Statement" the statement prepared in accordance with Clause 6 and Schedule 6 (Completion Statement), which shall include the items set out in Clause 5.1, and agreed, deemed agreed or determined (as the case may be) pursuant to Clause 6;

"Completion Statement Release Date" means the [\*\*\*] after the date on which the Completion Statement is agreed, deemed agreed, or finally determined under Clause 6 (as the case may be);

"Confidential Information" means all information that is used in or otherwise relates to the Target Group, its Business, financial or other affairs, including information relating to:

(a) its financial or other affairs, including information relating to the prospective marketing of products, including market share statistics, prices, market research reports and surveys;

(b) Know-How (including trade secrets and all technical information in relation to products and processes) included in the Company IP Rights;

&nbsp;&nbsp;&nbsp;&nbsp;(c) future projects, business development or planning, commercial relationships and negotiations; or

&nbsp;&nbsp;&nbsp;&nbsp;(d) the Transaction Documents, the terms thereof, or the transactions contemplated herein;

"Confidentiality Agreement" means the mutual confidential disclosure agreement dated May 13, 2023 between the Buyer and the Company, pursuant to which the parties made available certain Confidential Information available to each other in connection with the proposed Transaction;

"Consideration" has the meaning given in Clause 3.1; "Contingent Consideration" means:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the Development Milestone Payments; (b) the Regulatory Milestone Payments;

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&nbsp;&nbsp;&nbsp;&nbsp;(c) the Commercial Milestone Payments; (d) the Net Sales Payments;

&nbsp;&nbsp;&nbsp;&nbsp;(e) the Net Receipts Payments; and

&nbsp;&nbsp;&nbsp;&nbsp;(f) the JV Milestone Payments;

"Contingent Consideration Deductions" means (i) any applicable Executive Tax Amounts, (ii) any Tax, (iii) any Synthetic Executive Option Deduction, (iv) any Change of Control Payments or (v) any Company Transaction Expenses, in each case in respect of such Consideration and arising in respect of the payment of the relevant Contingent Consideration and as has not been otherwise recovered from or paid by or on behalf of any Seller (whether by deduction, set-off or otherwise);

"Contractual Obligation" means with respect to any Person, any written or oral contract, agreement, deed, mortgage, lease, sublease, license, sublicense or other legally enforceable commitment, promise, undertaking, obligation, arrangement, instrument or understanding, whether written or oral, to which or by which such Person is a party or otherwise subject or bound or to which or by which any property, asset, business, operation or right of such Person is subject or bound;

"Control" (including the terms "Controlling", "Controlled by" and "under Common Control") means the power to direct the management and policies of a person, directly or indirectly, whether through ownership of voting securities, by contract or otherwise;

"Covenantors" means [\*\*\*];

"Data Room" means the electronic data room hosted on Microsoft SharePoint by the Company under the name "Metsera data room", made available as at [\*\*\*], the contents of which are set out in the Data Room Index and are contained on a USB stick to be delivered to the Buyer on or about the date of this Agreement, and references to "Folders" and "Documents" shall be construed as references to the folders of the data room and documents uploaded to the data room;

"Data Room Index" means the index of the contents of the Data Room in the Agreed Form; "DC Consultancy Agreement" means the consultancy agreement between [\*\*\*];

"Disclosed" means fully, fairly and accurately disclosed (in the absence of any fraud, dishonesty or deliberate misstatement or concealment on the part of the Sellers or any of their agents, officers or employees) in such a manner and in such detail as to enable the Buyer to make an informed and accurate assessment of the matter concerned and "Disclose" and "Disclosure" shall be construed accordingly;

"Disclosure Letter" means the letter dated the date of this Agreement from the Warrantors to the Buyer, making Disclosures against [\*\*\*] (other than as set out in paragraphs 1 and 2 of Schedule 2 of the Warranty Deed), receipt of which has been acknowledged by the Buyer;

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"Draft Allocation Schedule" has the meaning set out in Clause 5.1;

"Effective Time" has the meaning set out in Paragraph 2.3 of Part B of Schedule 6;

"EMA" means the European Medicines Agency (or any successor Governmental Authority having substantially the same functions); "Employment Agreements" means the employment agreements between the Company and [\*\*\*] in the Agreed Form;

"Encumbrance" means a mortgage, pledge, charge (whether fixed or floating), lien, option, restriction, right of first refusal, right of pre- emption, third party right or interest, license, covenant, option, right of first offer or refusal, collateral security arrangement, conditional or instalment sales agreement, lien, encumbrance or other restriction of any kind (other than those created under applicable securities laws), other encumbrance or security interest of any kind, or another type of preferential arrangement (including a title transfer or retention arrangement) having similar effect or any agreement, whether conditional or otherwise to create any of the foregoing;

"Escrow Account" means the deposit account operated by the Escrow Agent in accordance with the Escrow Agreement;

"Escrow Agent" means Shieldpay Trustee Services Limited;

"Escrow Agreement" means the agreement in the Agreed Form between the Escrow Agent, the Buyer and the Sellers' Representative concerning the setting up and operation by the Escrow Agent of the Escrow Account;

"Estimated Balance Sheet Assets/Liabilities" means the estimate of the Completion Balance Sheet Assets/Liabilities set out in the Estimated

Completion Statement;

"Estimated Cash" means the estimate of the Completion Cash set out in the Estimated Completion Statement;

"Estimated Change of Control Payments" means the estimate of the Completion Change of Control Payments set out in the Estimated

Completion Statement;

"Estimated Company Transaction Expenses" means the estimate of the Completion Company Transaction Expenses set out in the Estimated

Completion Statement;

"Estimated Completion Statement" means an estimate of the Completion Statement in the Agreed Form which shall include the Estimated

Consideration and the items set out in Clause 3.6;

"Estimated Consideration" as the meaning set out in Clause 3.6;

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"Estimated External Indebtedness" means the estimate of the Completion External Indebtedness set out in the Estimated Completion

Statement;

"Excess Coverage Claim" means any Claim, Fundamental Warranty Claim, Tax Warranty Claim, Tax Covenant Claim (other than an Executive Tax Indemnity Claim) or any other claim by the Buyer against the Sellers under this Agreement or the Warranty Deed that would be covered by the W&I Policy to the extent it is not covered by the W&I Policy solely because the amount of such Claim, Fundamental Warranty Claim, Tax Warranty Claim, Tax Covenant Claim (other than an Executive Tax Indemnity Claim) or claim under this Agreement or the Warranty Deed when aggregated with all other Claim, Fundamental Warranty Claim, Tax Warranty Claim, Tax Covenant Claim (other than an Executive Tax Indemnity Claim) or claims under this Agreement or the Warranty Deed (as applicable) which are covered by the W&I Policy, is in excess of US$ [\*\*\*];

"Excluded Warranties" means the Warranties and/or Tax Warranties to the extent they are excluded or any part of the Warranties and/or Tax

Warranties that is partially excluded pursuant to the W&I Policy, in each case under the Exclusions;

"Excluded Warranty Claim" means any claim(s) and/or Claim(s) (as applicable) by the Buyer arising from any breach of the Excluded

Warranties;

"Excluded Tax Claim" means a claim arising from any breach of any provision of the Tax Covenant which is excluded or any part of the Tax

Covenant which is partially excluded pursuant to the W&I Policy, in each case under the Exclusions;

"Excluded Claim" means an Excluded Warranty Claim or Excluded Tax Claim;

"Exclusions" means any exclusions (i) under clause 6 of the W&I Policy, and/or (ii) the exclusions or amendments in Appendix 2 (Cover Spreadsheet) of the W&I Policy and/or (iii) otherwise pursuant to the terms of the W&I Policy, other than (in respect of (iii)) any exclusion which arises as a direct result of any act or omission of the Buyer in breach of the W&I Policy, including without limitation non-payment of the

premium or any failure by the Buyer to comply with any terms of the W&I Policy (including the provisions relating to non-disclosure in clause 7 of the W&I Policy and claims notifications in Part E of the W&I Policy);

"Executive Tax Amount" means the amount of any income Tax, payroll Tax (including for the avoidance of doubt, and in each case only to the extent permitted by applicable law, Medicare tax or healthcare contributions, employee and employer's social security contributions or pension, or their equivalent in the relevant jurisdiction (including but not limited to, in the United Kingdom and Germany, national insurance contributions and apprenticeship levy)) for which a Target Group Company is required by applicable law to account on behalf or in respect of: (i) a Seller in connection with a payment of Consideration or (ii) a Synthetic Executive Optionholder in connection with the payment of a Synthetic Executive Option Deduction;

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"Executive Tax Indemnity Claim" means a Tax Covenant Claim or Tax Warranty Claim in respect of any Executive Tax Amount, including arising under paragraph 2.1(h) of Schedule 3 (Tax Matters) of the Warranty Deed;

"External Indebtedness" means the aggregate amount of the Financial Indebtedness owed by the Target Group Companies (together with the termination value of such Financial Indebtedness, any accrued interest and the marked to market value of any derivative transaction entered into for protection against any rate or, as applicable, the amount due as a result of termination or close-out of that derivative transaction) to a third party (other than another Target Group Company);

"Event" means any transaction, event, circumstance, action or omission, including, without limitation, any change in the residence of any person for the purposes of any Tax and shall also include Completion;

"Family Member" means, with respect to any individual: (a) such Person's spouse or civil partner; (b) each parent, brother, sister or child of such Person or such Person's spouse; (c) the spouse of any Person described in limb (b) above; (d) each child of any Person described in limbs (a), (b) or (c) above; (e) each trust created for the benefit of one or more of the Persons described in limbs (a) through (d) above; and (f) each custodian or guardian of any property of one or more of the Persons described in limbs (a) through (e) above in his or her capacity as such custodian or guardian;

"FDA" means the United States Food and Drug Administration (or any successor Governmental Authority having substantially the same functions);

"Final Allocation Schedule" has the meaning set out in Clause 5.3;

"Financial Advisor Fee" means the amount payable by the Target Group to any financial advisor or any strategic advisor in the form of commissions, bonuses or any incentive or performance payments in connection with the Transaction;

"Financial Indebtedness" means any indebtedness of any member of the Target Group, including (without limitation) for or in respect of: (a) moneys borrowed and debit balances at banks or other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;(b) any liability in respect of finance leases, hire purchase agreements or asset purchase agreements;

&nbsp;&nbsp;&nbsp;&nbsp;(c) the issue of bonds, notes, debentures, loan notes or other instruments with a debt-like return or any other interest bearing liabilities; (d) any liability or any counter-indemnity obligation in respect of any guarantee, letter of credit, bond or indemnity;

(e) the marked to market value of any derivative transaction entered into for protection against any rate or, as applicable, the amount due as a result of termination or close-out of that derivative transaction;

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(f) any amount raised under any other transaction (including, without limitation, any forward sale or purchase, sale and sale back or sale and leaseback) which has the commercial effect of a borrowing; or

&nbsp;&nbsp;&nbsp;&nbsp;(g) receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis),

and shall include, in each case, all interest, fees, penalties and costs associated with the relevant indebtedness but, for the avoidance of doubt, shall exclude (i) all trade credit incurred from suppliers in the Ordinary Course of Trading, (ii) all Change of Control Payments and (iii) all Company Transaction Expenses;

"Fund" means any fund, bank, company, unit trust, investment trust, investment company, limited, general or other partnership, industrial provident or friendly society, collective investment scheme, investment professional, pension fund, insurance company, authorised person under the Financial Services and Markets Act 2000 or body corporate or other entity, in each case the assets of which are managed professionally for investment purposes;

"Fundamental Business Warranties" means the representations and warranties contained in paragraphs 1.4 (Capacity and Authority of the Warrantors), 2.1, 2.3, 2.4 (The Shares and Share Capital), 3.2 (Statutory Books), 4.4 (Subsidiaries and Associated Companies), 4.12, 7 (Accounts), 11.1 (Material Agreements) and 14 (Intellectual Property) of Schedule 2 of the Warranty Deed;

"Fundamental Business Warranty Claim" means a claim by the Buyer pursuant to Clause 9 or clause 2 of the Warranty Deed in connection with or arising from: (i) the Fundamental Business Warranties; and (ii) any other Business Warranties to the extent that the claim arises in connection with any agreement or arrangement relating to any Target Group Company or the Business between (a) any Target Group Company or any current or former director, officer, employee, consultant, independent contractor or shareholder of a Target Group Company and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Imperial College and/or its current or former Affiliates, including (but not limited to) the Imperial Agreements;

"Fundamental Title Warranties" means the representations and warranties given by each Seller pursuant to Clause 9.1 and as set out in

Schedule 3;

"Fundamental Title Warranty Claim" means a claim by the Buyer pursuant to Clause 9 in connection with or arising from the Fundamental

Title Warranties;

"Fundamental Warranties" means the Fundamental Title Warranties and the Fundamental Business Warranties;

"Fundamental Warranty Claim" means a claim by the Buyer pursuant to Clause 9 or clause 2 of the Warranty Deed or in connection with or arising from the Fundamental Warranties, including any Fundamental Title Warranty Claim and any Fundamental Business Warranty Claim;

"Fund Seller" means each of [\*\*\*] and [\*\*\*];

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"Governmental Authority" means any United Kingdom, European Union, United States federal, state or local or any foreign government, or political subdivision thereof, or any multinational organization or authority, or any other authority, agency, body, department, board or commission entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, any court or tribunal (or any department, bureau or division thereof), or any mediator, arbitrator or arbitral body, or such Governmental Authorities as FDA, the EMA, or the MHRA;

"Governmental Order" means any order, writ, judgment, injunction, decree, stipulation, ruling, decision, verdict, determination or award made, issued or entered by or with any Governmental Authority;

"Gross Sum" has the meaning set out in Clause 3.3;

"Imperial Agreements" means the Imperial Novation Agreement, Imperial Data Access Agreement, Imperial Option Agreement and the

Imperial Licence Agreement;

"Imperial College" means Imperial College of Science, Technology and Medicine incorporated in England and Wales by Royal Charter

RC000231;

"Imperial Data Access Agreement" means the data access agreement between (1) the Company and (2) Imperial College originally dated

6 June 2019 and as varied on 28 July 2022 in the Agreed Form;

"Imperial Licence Agreement" means the amended and restated licence agreement between (1) the Company and (2) IP2IPO Innovations

Limited, dated 7 June 2023 in the Agreed Form;

"Imperial Novation Agreement" means the novation agreement between (1) the Company, (2) Imperial Innovations Limited and (3) Imperial

College, dated 28 February 2019 in the Agreed Form;

"Imperial Option Agreement" means the amended and restated option agreement between (1) the Company and (2) IP2IPO Innovations

Limited, dated 10 August 2023 in the Agreed Form;

"Inbound IP Contracts" means each written Contractual Obligation under which a Target Group Company is granted a license or other right to use any Company IP Rights by any Person besides a Target Group Company (such Intellectual Property Rights, the "Company In-Licensed IP Rights");

"Indemnity for Lost Share Certificates" has the meaning set out in Paragraph 1.1(a), Part A of Schedule 2; "Initial Set-Off Amount" has the meaning set out in Clause 14.1;

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"Intellectual Property Rights" means all rights, title and interests in and to all intellectual property rights of every kind and nature however denominated and rights in confidential information, throughout the world, including:

(a) Patent Rights, copyrights, mask work rights, confidential information, Know-How, database rights, rights in designs, invention disclosures and all other proprietary rights in embodiments;

(b) trademarks, trade names, service marks, service names, brands, trade dress and logos, and the goodwill and activities associated therewith;

&nbsp;&nbsp;&nbsp;&nbsp;(c) domain names and social media accounts;

&nbsp;&nbsp;&nbsp;&nbsp;(d) rights of privacy and publicity and moral rights; and

(e) any and all registrations, applications, recordings, licenses, common-law rights, statutory rights, administrative rights, and contractual rights in any of the foregoing (a)-(d);

"Investment Agreement" means the investment agreement in respect of the Company dated 12 December 2019, as amended, varied, supplemented or replaced from time to time;

[\*\*\*]

"Know-How" means any and all trade secrets and other proprietary information, ideas, know-how, inventions and materials, including records, discoveries, improvements, modifications, processes, techniques, methods, assays, chemical or biological materials, designs, protocols, formulas, data (including physical data, chemical data, toxicology data, animal data, raw data, clinical data and analytical and quality control data), dosage regimens, control assays, product specifications, formulations, formulae and manufacturing information, information regarding research

materials and reagents and compositions of matter, marketing, pricing and distribution costs, algorithms, technology, forecasts, profiles strategies, plans, and results in any form whatsoever (in each case, patentable, copyrightable or otherwise), including any tangible embodiment of the foregoing;

"Lead Product" means [\*\*\*];

"Legal Requirement" means any United Kingdom or United States federal, state or local or any foreign law, statute, standard, ordinance, code, rule, regulation, resolution or promulgation, or any Governmental Order, or any Permit granted under any of the foregoing, or any similar provision having the force or effect of law;

"Letters of Resignation" has the meaning set out in Paragraph 1.2, Part A of Schedule 2; "Loan Notes" means the loan notes issued pursuant to a Loan Note Instrument;

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"Loan Note Instrument" means a loan note instrument in the Agreed Form, as may be amended, supplemented or restated from time to time with the prior written agreement of the Buyer and the Sellers' Representative;

"Loss" or "Losses" means all losses, liabilities, damages, interest, fines, penalties and any reasonably and properly incurred costs (including reasonable legal and other professional costs, fees and expenses, including fees and expenses incurred in enforcing the relevant party's rights under this Agreement), charges, expenses, actions, proceedings, claims and demands, together with any irrecoverable VAT thereon;

"Material Contracts" means: (i) any Contractual Obligation to which the Company or any member of the Target Group is a party and that is material to the continued operation of the Business, including but not limited to (a) the Imperial Agreements or any other Contractual Obligations with Imperial College or its current or former Affiliates, and (b) as set out in paragraph 11.1(f) of Schedule 2 of the Warranty Deed; and (ii) any Contractual Obligations to which the Company or any member of the Target Group is a party with SanPlena, including the JV Operating Agreement and the JV License Agreement;

"Maximum Uninsured Liability Amount" means US$ [\*\*\*];

"MHRA" means the United Kingdom's Medicines and Healthcare products Regulatory Agency (or any successor agency having substantially the same functions);

"Milestone Payments" has the meaning set out in Schedule 5;

"Negative Adjustment" means the amount (if any) by which the Estimated Consideration exceeds the Upfront Payment; "Net Receipts Payments" has the meaning set out in Paragraph 3.2 of Schedule 5;

"Net Sales Payments" has the meaning set out in Paragraph 3.1 of Schedule 5; "Non-Rollover Seller" means any Seller that is not a Rollover Seller;

"Notified Claim" has the meaning set out in Clause 4.3; "Notified Claim Amount" has the meaning set out in Clause 4.3;

"OC Comfort Letter" means the letter dated on or around the date of this Agreement from Osborne Clarke to the Buyer in the Agreed Form;

"Ordinary Course of Trading" means an action taken by any Person in the ordinary course of such Person's trading that is consistent with the past customs and practices of such Person;

"Ordinary Shares" means the 1,077,994 ordinary shares of £0.0001 each in the capital of the Company; "Other Product" means [\*\*\*];

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"Patent Rights" means, in any jurisdiction, any and all issued patents and pending patent applications, including all issued letter and design patents, reissued or re-examined patents, revivals of patents, utility models, certificates of invention, registrations of patents and extensions thereof, all published and unpublished non-provisional and provisional patent applications, reissue applications, re-examinations, invention disclosures and records of invention, international (PCT) applications, substitutions, continuation applications, continuation-in-part applications, requests for continued examination, divisional applications and patent term extension applications (including supplementary protection certificates);

"Paying Agent"means Shieldpay Trustee Services Limited;

"Paying Agent Bank Account" means the bank or building society account set up by the Paying Agent in connection with Completion, as set out in the applicable Allocation Schedule delivered in connection with the Completion or any other bank or building society accounts otherwise identified by the Sellers' Representative in writing to the Buyer;

"Permit" means a permit, authorisation, licence, consent, approval, certificate, qualification, specification, registration, declaration, listing, waiver, order, application, clearance, Review Board opinion or other similar authorisation and/or a filing of a notification, report or assessment necessary in any jurisdiction for the proper and efficient operation of any Target Group Company's business, its ownership, possession, occupation or use of an asset;

"Person" has the meaning given in Clause 1.2.5;

"Positive Adjustment" means the amount (if any) by which the Upfront Payment exceeds the Estimated Consideration; "Proportionate Share" means a Seller's proportionate allocation of Consideration as set out against such Seller's name in column

&nbsp;&nbsp;&nbsp;&nbsp;(4) (Proportionate Share (%)) of Part B of Schedule 1;

"R&D Claim" means any Relief (other than a R&D Tax Credit) claimed in respect of expenditure on research and development under Part 13

Corporation Tax Act 2009;

"R&D Tax Credits" means any amount paid or payable by any Tax Authority (whether by way of actual payment or set-off) in respect of research and development tax credits under Part 13 Corporation Tax Act 2009 or R&D expenditure credits under Chapter 6A of Part 3

Corporation Tax Act 2009;

"Relief" means any loss, right to a repayment of Tax, relief, allowance or credit in respect of any Tax and any deduction in computing Income, Profits or Gains for the purposes of any Tax;

"Representative" means, with respect to any Person, any director, officer, employee, agent, manager, independent contractor, advisor, or other duly appointed representative of such Person, including legal counsel, accountants, and financial advisors;

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"Retained Completion Statement Consideration" means the portion of the Upfront Payment retained on Completion in an amount equal to

[\*\*\*] and then payable in accordance with Clause 6.1;

"Retained Warranty Consideration" means an amount equal to the Maximum Uninsured Liability Amount; "Retained Warranty Consideration Payment Date" means the date occurring [\*\*\*] from the Completion Date;

"Review Board" means any domestic or foreign institutional review board, privacy board or research ethics committee responsible for providing an opinion on the ethics of any clinical trial involving the Company Products;

"Review Period" has the meaning given to such term in Clause 6.3; "Revised Amount" has the meaning set out in Clause 3.3;

"Rollover Seller" means any Seller identified as a "Rollover Seller" in Schedule 1;

"SanPlena" means SanPlena, LLC, the joint venture constituted by the JV Operating Agreement;

"SanPlena Qualified Warranties" means the Warranties set out in paragraphs 1.5, 1.6, 4.3, 4.5, 4.10, 5.1, 11.1(a – e), 13, 17.4(a) and (b), 19.3,

19.4, 19.5 and 20 of Schedule 2 of the Warranty Deed;

"SanPlena Title Warranty" means the Warranty set out in paragraph 4.12 of Schedule 2 of the Warranty Deed;

"SanPlena Warranties" means the SanPlena Qualified Warranties and the SanPlena Title Warranty;

"Second Product" means [\*\*\*];

"Sellers" has the meaning set out in the parties Paragraph (1);

"Seller's Group" means in respect of a Seller, its Affiliates from time to time (excluding any Target Group Company) and reference to a "a member of the Seller's Group" shall be construed accordingly;

"Sellers' Representative" means [\*\*\*] or any other representative of the Sellers appointed from time to time pursuant to Clause 16; "Sellers' Solicitors" means Osborne Clarke LLP, 3 Forbury Place, 23 Forbury Road, Reading, RG1 3JH, UK;

"Settled Claim"has the meaning set out in Clause 4.2;

"Set-Off Claim" has the meaning set out in Clause 14.1;

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"Set-Off Objection Notice" has the meaning set out in Clause 14.2; "Set-Off Objection Period" has the meaning set out in Clause 14.3;

"Shares" means the Ordinary Shares and any other shares in the capital of the Company from time to time;

"Statutory Register" means the statutory registers of the Company, including the register of members recording all of the holders of all of the

Shares in the Company as set out in Folder 1(b) in the Data Room;

"Stock Transfer Form" has the meaning set out in Paragraph 1.1(a), Part A of Schedule 2;

"Subsidiary" means the direct subsidiary of the Company, namely Zihipp, Inc., details of which are set out in Part A of Schedule 1;

"Synthetic Executive Optionholder" means the person who is entitled to receive a payment as a result of a payment of Consideration pursuant to the Synthetic Executive Option Agreement, being [\*\*\*];

"Synthetic Executive Option Agreement" means the agreement between the Company and the Synthetic Executive Optionholder in respect of the payment of the applicable portion of the Synthetic Executive Option Deduction in the Agreed Form;

"Synthetic Executive Option Deduction" means an amount equal to the amount payable to the Synthetic Executive Optionholder pursuant to the Synthetic Executive Option Agreement;

"Target Group" means the Company and the Subsidiary and references to "Target Group Company", "Target Group Companies" and

"member of the Target Group" shall be construed accordingly; "Tax", "Taxes" or "Taxation" means:

(a) all taxes, levies, duties and imposts and any charges, deductions or withholdings in the nature of tax including taxes on gross or net Income, Profits or Gains and taxes on receipts, sales, use, occupation, development, franchise, employment and social security contributions (including Medicare tax), national insurance contributions (including for the avoidance of doubt in the United Kingdom apprenticeship levy), value added and personal property tax, regardless of whether any such taxes, levies, duties, imposts, charges, deductions, withholdings, penalties, fines and interest are chargeable directly or primarily against, or attributable directly or primarily to, a Target Group Company or any other person and of whether any amount in respect of any of them is recoverable from any other person; and

(b) any payment which a Target Group Company is liable to make to a Tax Authority as a result of having claimed a credit in relation to any Tax falling within paragraph (a) which was in excess of the amount properly claimable or in order to appeal or contest any Tax Claim and any other payment on account of Tax falling within paragraph (a), together with all penalties, charges and interest relating to any of them;

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"Tax Authority" means any taxing, revenue or other authority (whether within or outside the United Kingdom) competent to impose any liability to, or assess or collect, any Tax falling with paragraph (a) of the definition of Tax;

"Tax Claim" means the issue of any notice, letter or other document by or on behalf of any Tax Authority or other person or the taking of any other action by or on behalf of any Tax Authority or other person or the occurrence of any other Event from which notice, letter, document, action or Event it appears either that a Tax Liability or other liability for which the Sellers are liable under this Agreement, the Tax Warranties or the Warranty Deed may be imposed on a Target Group Company or for breach of the Tax Warranties;

"Tax Covenant" means the covenant given under paragraph 2 of Schedule 3 to the Warranty Deed;

"Tax Covenant Claim" means a claim under the Tax Covenant and which shall include any claim against a Seller as a result of the operation of

Clause 9.4;

"Tax Liability" has the meaning given in paragraph 1.2 of Schedule 3 of the Warranty Deed;

"Tax Warranty" means any Warranty in so far as it relates to Tax, including those Warranties set out at paragraphs 23 and 24 of Schedule 2 of the Warranty Deed;

"Tax Warranty Claim" means a claim under the Tax Warranties; "Third Parties" has the meaning set out in Clause 18.9.1;

"Transaction" means the transactions contemplated by the Transaction Documents;

"Transaction Documents" means this Agreement, the Warranty Deed, the Disclosure Letter and the Agreed Form documents; "Uninsured Claim" means an Excluded Claim and/or an Excess Coverage Claim (as applicable);

"United Kingdom" or "UK" means the United Kingdom of Great Britain and Northern Ireland; "Upfront Payment" has the meaning set out in Clause 3.8;

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"VAT" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any United Kingdom value added tax imposed pursuant to the Value Added Tax Act 1994; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other Tax of a similar nature, whether imposed by the United Kingdom or a member state of the European Union in substitution for, or levied in addition to, such Taxes referred to in paragraphs (a) and (b) above, or imposed elsewhere;

"Warranties" means the Fundamental Warranties and the Business Warranties; "Warrantors" [\*\*\*];

"Warranty Deed" means the deed in the Agreed Form to be entered into by the Warrantors and the Buyer on or around the date hereof; "W&I Excess Insurer" means Markel International Insurance Company Limited;

"W&I Insurer" means Icen Risk Limited;

"W&I Policy" means (i) the warranty and indemnity liability policy of insurance in the Agreed Form with policy number [\*\*\*] issued by the W&I Insurer and (ii) the excess warranty and indemnity liability policy of insurance in the Agreed Form with policy number [\*\*\*] issued by the W&I Excess Insurer, in favour of the Buyer on the date of this Agreement and relating to claims under this Agreement or the Warranty Deed;

"W&I Policy Seller Cost" means all costs, expenses and taxes associated with the W&I Policy less US$ [\*\*\*], being an amount equal to US$ [\*\*\*];

"Withholding Taxes" has the meaning set out in Clause 15.3;

[\*\*\*]; and

"Zihipp Comfort Letter" means the comfort letter dated on or around the date of this Agreement from the Company to the Buyer in respect of the Data Room in the Agreed Form.

&nbsp;&nbsp;&nbsp;&nbsp;1.2 In this Agreement (unless the context requires otherwise):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1 words and expressions that are defined in the Companies Act shall have the same meanings as are given to them in the Companies Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2 the expression "body corporate" shall have the meaning given in section 1173 Companies Act;

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1.2.3 the words "company", "subsidiary", "subsidiary undertaking", "parent undertaking" and "holding company" have the meanings given to them in the Companies Act, except that where a holding company creates security over the shares of a subsidiary (including the Subsidiary) that subsidiary shall not cease to be such solely as a result of the creation of the security;

1.2.4 a document is a reference to that document as amended, novated, supplemented, extended or restated from time to time (other than in breach of the provisions of this Agreement);

1.2.5 a "person" includes an individual, body corporate, trust, partnership, joint venture, unincorporated association or governmental, quasi- governmental, judicial, regulatory entity (or any department, agency or political subdivision of such an entity) in each case whether or not having a separate legal personality and any reference to a "company" includes any company, corporation or other body corporate, wherever and however incorporated or established;

1.2.6 any statute or statutory provision shall be deemed to include any instrument, order, regulation or direction made or issued under it and shall be construed as a reference to the same as it may have been, or may from time to time be, amended, modified, consolidated re- enacted or replaced, except to the extent that any amendment or modification made after the date of this Agreement would increase any liability or impose any additional obligation under this Agreement;

1.2.7 a clause, paragraph or schedule are, unless indicated to the contrary, to a clause, paragraph or schedule of this Agreement, and references to this Agreement include the schedules;

&nbsp;&nbsp;&nbsp;&nbsp;1.2.8 the singular includes a reference to the plural and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;1.2.9 any gender includes a reference to the other genders;

&nbsp;&nbsp;&nbsp;&nbsp;1.2.10 any time or date shall be construed as a reference to the time or date prevailing in London, United Kingdom;

&nbsp;&nbsp;&nbsp;&nbsp;1.2.11 references to writing shall include any modes of reproducing words in a legible and non-transitory form;

&nbsp;&nbsp;&nbsp;&nbsp;1.2.12 references to "period" are to a period of time and not to an accounting period unless the phrase "accounting period" is used;

1.2.13 any phrase introduced on the terms "including", "includes" or "in particular" shall be construed as illustrative and shall not limit the sense of the words preceding those terms;

&nbsp;&nbsp;&nbsp;&nbsp;1.2.14 the term "or" will be interpreted in the inclusive sense commonly associated with the term "and/or", unless used with "either";

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concept or thing shall, in respect of any jurisdiction other than that of England, be deemed to include what most nearly approximates in that jurisdiction to the English legal term; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.16 references to "Income, Profits or Gains" shall include any income, profits or gains which are deemed to be earned, accrued or received for the purposes of any relevant Tax.

1.3 Where this Agreement or the Warranty Deed provides for an amount to be calculated on an after-Tax basis, the relevant amount shall be increased by such amount (if any) as is necessary to take account of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.1 the amount of any Tax required to be deducted or withheld from the relevant amount (including on the increased amount);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.2 any liability to Tax that will arise for the Buyer (or a member of the Buyer's Group) in respect of the relevant amount (otherwise than on the net income, profits, or gains of the Buyer or relevant member of the Buyer's Group),

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

![gfx215183358_0.gif](gfx215183358_0.gif)

1.2.15 any English legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official or any legal

but shall be decreased to take account of any Relief that arises to the relevant Target Group Company as a result of the matter giving rise to the payment of the relevant amount; and provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.3 any Tax which would not have arisen but for the Buyer not being tax resident in the jurisdiction of its incorporation or but for an assignment by the Buyer of its rights under the Warranty Deed or this Agreement shall not be taken into account under sub-clause 1.3.1 or 1.3.2 in calculating an amount on an after-Tax basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.4 in the event that the Buyer receives a tax credit for an amount deducted or withheld which is taken into account under sub-clause 1.3.1 which is received as a refund of Tax or which is set off against a Tax liability within [\*\*\*] from the date of receipt of the tax credit (a "Tax Saving"), it shall repay to the Sellers the amount of such Tax Saving less any costs or expenses properly incurred in obtaining the Tax Saving within [\*\*\*] of obtaining that Tax Saving.

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2. SALE OF SHARES

2.1 At Completion, each Seller shall sell the Shares that are set out opposite its name in Part B of Schedule 1 and the Buyer shall buy the Shares on the terms and subject to the conditions of this Agreement.

2.2 Each Seller shall sell its Shares with full title guarantee free from any Encumbrance and any other third party rights and the Buyer shall purchase the Shares with effect from Completion, to the intent that as from such time all rights and advantages accruing to the Shares as existing at, or arising on or after Completion, including any dividends or distributions declared, made or paid in respect of such Shares after such time (but excluding any Consideration and any other amount due or payable to any Seller or the Sellers' Representative pursuant to any Transaction Document), shall belong to the Buyer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

![gfx215183358_0.gif](gfx215183358_0.gif)

1.2.15 any English legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official or any legal

2.3 Each Seller: (a) irrevocably waives or agrees to procure the waiver of any rights of pre-emption or restrictions conferred upon it or any other person that may exist in relation to the Shares under the Articles, the Investment Agreement or otherwise; and (b) hereby consents to the transfer of all of the Shares to the Buyer for the purposes of the Articles or the Investment Agreement (including, for the avoidance of doubt, the provisions set out in Article 7 and Article 10 of the Articles), as at the date of this Agreement.

2.4 Any payment due to the Buyer in respect of any claim pursuant to this Agreement shall for all purposes be deemed to be and shall take effect as a reduction in Consideration paid to the person making such payment, to the extent legally possible.

3. CONSIDERATION

3.1 The aggregate consideration payable by the Buyer for the sale and purchase of all the Shares under this Agreement (the "Consideration") shall be an aggregate amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1 the Upfront Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2 plus the Development Milestone Payments, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3 plus the Regulatory Milestone Payments, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.4 plus the Commercial Milestone Payments, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.5 plus the Net Sales Payments, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.6 plus the Net Receipts Payments, if any; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.7 plus the JV Milestone Payments, if any,

in all cases, subject to the adjustment in Clause 3.3.

3.2 All Contingent Consideration payable to a Rollover Seller shall be paid in the form of Loan Notes.

3.3 The Consideration shall be apportioned between the Sellers in accordance with their respective Proportionate Share save that in respect of Contingent Consideration that is payable to a Rollover Seller (the "Gross Sum") the amount calculated as a Rollover Seller's Proportionate Share of the relevant Contingent Consideration shall be adjusted down to an amount (the "Revised Amount") which, when taken together with an amount equal to [\*\*\*] interest on such amount (based on the rate used in the relevant Loan Note at the date the Loan Note is issued pursuant to Paragraph 4.3 of Schedule 5), results in the relevant Gross Sum. The Revised Amount shall be the Consideration paid, provided that the Gross Sum shall be the applicable Consideration amount for the purposes of such Seller's aggregate liability pursuant to Schedule 4.

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the Sellers in relation to the apportionment of the applicable Consideration as determined by the Sellers' Representative and set out in the applicable Allocation Schedule or the applicable Final Allocation Schedule.

3.5 The Milestone Payments (if any), the Net Sales Payments (if any), the Net Receipts Payments (if any) and the JV Milestone Payments (if any)

shall each be calculated and become payable in accordance with the provisions of Schedule 5.

3.6 The "Estimated Consideration" shall be an aggregate amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6.1 the Base Consideration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6.2 plus the Estimated Cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6.3 plus or less the Estimated Balance Sheet Assets/Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6.4 less the Estimated External Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6.5 less the Estimated Change of Control Payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6.6 less the Estimated Company Transaction Expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6.7 less the applicable Executive Tax Amounts (if any) which is due and payable at Completion.

3.7 The "Completion Payment" that shall be paid in accordance with Clause 3.9 shall be an aggregate amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7.1 the Estimated Consideration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7.2 less the Retained Completion Statement Consideration; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7.3 less the Retained Warranty Consideration.

3.8 The "Upfront Payment" shall be an aggregate amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.1 the Base Consideration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.2 plus the Completion Cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.3 plus or less the Completion Balance Sheet Assets/Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.4 less the Completion External Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.5 less the Completion Change of Control Payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.6 less the Completion Company Transaction Expenses; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

![gfx215183358_1.gif](gfx215183358_1.gif)

3.4![gfx215183358_2.gif](gfx215183358_2.gif)

The Buyer shall not have any responsibility in respect of, and shall have no liability to any Seller in connection with, the arrangements between

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.7 less the applicable Executive Tax Amounts (if any) which is due and payable as a result of Completion.

3.9 At Completion, the Buyer shall pay:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.1 the Completion Payment for the benefit of each Seller in accordance with their respective Proportionate Share in cash in United States

Dollars in immediately available federal funds to the Paying Agent Bank Account; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.2 the Retained Warranty Consideration in cash in United States Dollars in immediately available federal funds to the Escrow Account, the payment of which in accordance with this Clause 3.9 shall discharge the Buyer from any further obligation to make such payment (without

prejudice to the Buyer's obligations in respect of the release of the Retained Warranty Consideration in accordance with Clause 4).

3.10 Any amount that is paid in respect of a breach of the Warranties or under the Warranty Deed or otherwise under any provision of this Agreement providing indemnification, reimbursement or compensation for loss shall be treated, to the extent possible (but not so as to limit the amount payable where not wholly possible), as adjusting the Consideration.

3.11 The amount payable by any Seller under this Agreement, the Warranty Deed or other Transaction Documents shall be calculated on an after-Tax basis.

3.12 The parties intend and expect that no Executive Tax Amounts shall arise in respect of a payment to a Seller of any part of the Consideration, although payments of Consideration shall be made subject to withholding or deduction on account of Executive Tax Amounts or any other withholding or deduction to the extent required by applicable law. In the event that the Buyer considers that it or any Target Group Company is or will be liable to account for an Executive Tax Amount in respect of a payment of Consideration under applicable law, the Buyer shall promptly notify the Sellers' Representative providing reasonable details of the relevant Consideration and the basis and quantum of such Executive Tax Amount thereon, and shall consult in good faith with and take account of the reasonable representations of the Sellers' Representative to determine whether such obligations to account for Executive Tax Amounts arise and (if so) the amount thereof.

3.13 The Buyer shall procure that any deduction of Executive Tax Amounts under this Clause 3 or as part of the Contingent Consideration Deductions shall be made by the relevant Target Group Company (as applicable) and that such Target Group Company shall promptly account for such amounts to the relevant Tax Authority where required by applicable law.

4. RETAINED WARRANTY CONSIDERATION

4.1 The Retained Warranty Consideration shall be paid by the Buyer in accordance with the provisions of this Clause 4 (Retained Warranty

Consideration).

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Settled Claims

4.2 If a Tax Covenant Claim, a Tax Warranty Claim or a Fundamental Business Warranty Claim (in each case which is an Uninsured Claim) is either settled in writing between the Buyer and the Sellers' Representative (on behalf of the Sellers) or finally determined by a court of competent jurisdiction (either from which there is no further right of appeal or the appealing party has not indicated reasonably promptly that it intends to appeal) ("Settled Claim") before the Retained Warranty Consideration Payment Date then, to the extent that such amount has not been

otherwise recovered from or paid by or on behalf of any Seller (whether by deduction, set-off or otherwise), the amount so agreed or determined in favour of the Buyer in respect of the Settled Claim shall be deducted from the Retained Warranty Consideration and the Buyer and the Sellers' Representative shall instruct the Escrow Agent to pay such amount to the Buyer in satisfaction of such Settled Claim and deducted from the amount that would otherwise be paid to the Sellers on the Retained Warranty Consideration Payment Date.

Notified Claims

4.3 If written notice of a Tax Covenant Claim, a Tax Warranty Claim or a Fundamental Business Warranty Claim (in each case which is an Uninsured Claim) has been validly given by the Buyer, acting reasonably, in accordance with Schedule 4 and including the Buyer's reasonable, good faith estimate of the amount of the claim, before the Retained Warranty Consideration Payment Date but it has not then become a Settled Claim (a "Notified Claim") then the amount of such Notified Claim (a "Notified Claim Amount") shall be deducted from the amount of the Retained Warranty Consideration that would otherwise be paid to the Sellers on the Retained Warranty Consideration Payment Date and shall continue to be held in the Escrow Account pending settlement or final determination of such Notified Claim in accordance with this Clause 4.

&nbsp;&nbsp;&nbsp;&nbsp;4.4 The liability of the Sellers in respect of any Notified Claim shall (if it has not become a Settled Claim) determine:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1 where the Notified Claim arises by reason of a liability of the Buyer or a member of the Target Group, that at the time of service of the relevant notice, is contingent only or otherwise not capable of being quantified, if legal proceedings in respect of such Notified Claim have not been commenced within [\*\*\*] of such Notified Claim ceasing to be contingent or becoming capable of being quantified; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2 where the Notified Claim does not fall within Clause 4.4.1, if legal proceedings have not been commenced within [\*\*\*] of the service of such notice,

and, for the purposes of Clause 4.6, such Notified Claim shall be a Settled Claim.

Payment

4.5 On the Retained Warranty Consideration Payment Date, the Buyer and the Sellers' Representative shall instruct the Escrow Agent to pay out of the Escrow Account to the Paying Agent Bank Account:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5.1 if there are no Settled Claims or Notified Claims, the whole of the Retained Warranty Consideration; or

4.5.2 if there are any Settled Claims or Notified Claims: (a) the Retained Warranty Consideration; less

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the aggregate amount of any amounts due to the Buyer in respect of any Settled Claims; less

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the aggregate amount of any Notified Claim Amounts,

and the Sellers' Representative will instruct the Paying Agent to send payment in respect of the amount paid by the Buyer in accordance with this Clause 4.5 above to the Sellers in accordance with their Proportionate Share of such Retained Warranty Consideration (as adjusted as the case may be).

4.6 After the Retained Warranty Consideration Payment Date, upon a Notified Claim becoming a Settled Claim then the following amounts shall be paid in respect of the amount that has been agreed or determined in favour of the Buyer in respect of the Settled Claim (the "Settled Claim Amount"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.1 if the Settled Claim Amount is more than the Notified Claim Amount, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Buyer and the Sellers' Representative shall instruct the Escrow Agent to pay the Notified Claim Amount to the Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Sellers shall, to the extent that they are liable in accordance with the provisions of Schedule 4 of this Agreement, remain liable to the Buyer for the excess in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.2 if the Settled Claim Amount is the same as the Notified Claim Amount, then the Buyer and the Sellers' Representative shall instruct the

Escrow Agent to pay the Notified Claim Amount to the Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.3 if the Settled Claim Amount is less than the Notified Claim Amount, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an amount equal to the difference between the Settled Claim Amount and the Notified Claim Amount shall be paid to the Sellers in accordance with their Proportionate Share by the Buyer and the Sellers' Representative and the Buyer shall instruct the Escrow Agent to pay the Notified Claim Amount to the Paying Agent Bank Account and the Sellers' Representative will instruct the Paying Agent to send payment in respect of the amount paid by the Buyer in accordance with this Clause 4.6.1 to the Sellers in accordance with their Proportionate Share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an amount equal to the Settled Claim Amount shall be paid to the Buyer by the Buyer and the Sellers' Representative instructing the Escrow Agent to make such payment in satisfaction of the Settled Claim.

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&nbsp;&nbsp;&nbsp;&nbsp;5. ALLOCATION SCHEDULE

5.1 The Sellers' Representative shall deliver to the Buyer a draft schedule consistent with the Allocation Schedule Template (a "Draft Allocation Schedule") setting out in respect of each payment of or on account of the Consideration as adjusted by Clause 3.3 and/or Paragraph 4.3 of Schedule 5:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.1 each Sellers' Proportionate Share of such Consideration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.2 the amounts of such Consideration to be paid:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in respect of the Upfront Payment, in cash in United States Dollars; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in respect of any Contingent Consideration payable, (i) in cash in United States Dollars for any Non-Rollover Seller and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) through the issue of Loan Notes by the Buyer for any Rollover Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.3 in respect of the Upfront Payment, setting out the Completion Company Transaction Expenses, together with supporting evidence or invoices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.4 any applicable Contingent Consideration Deductions, save where already deducted under Clause 3.8.

&nbsp;&nbsp;&nbsp;&nbsp;5.2 The Sellers' Representative shall deliver the Draft Allocation Schedule as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.1 in respect of the Completion Payment on the Completion Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.2 in respect of any amount payable pursuant to Clause 6, on the date payable in accordance with Clause 6;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.3 in respect of any Milestone Payment on the date no later than [\*\*\*] after the Buyer notifies the Sellers' Representative of the applicable amounts pursuant to Paragraph 4.1 of Schedule 5, or such longer period as the Buyer and the Sellers' Representative may ag<u>ree</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.4 in respect of any Net Sales Payment on the date no later than [\*\*\*] after the Buyer notifies the Sellers' Representative of the applicable amounts pursuant to Paragraph 4.1 of Schedule 5<u>, or such longer period as the Buyer and the Sellers' Representative may agree</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.5 in respect of any Net Receipts Payment on the date no later than [\*\*\*] after the Buyer notifies the Sellers' Representative of the applicable amounts pursuant to Paragraph 4.1 of Schedule 5, or such longer period as the Buyer and the Sellers' Representative <u>may agree</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.6 in respect of any JV Milestone Payment on the date no later than [\*\*\*] after the Buyer notifies the Sellers' Representative of the applicable amounts pursuant to Paragraph 4.1 of Schedule 54.1 of Schedule 5, or such longer period as the Buyer and the Sellers' Representative may agree.

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5.3 The Sellers' Representative shall consult with the Buyer in good faith in respect of any comments of the Buyer, subject to Clause 3.3, in relation to the applicable Allocation Schedule(s) delivered pursuant to Clause 5.2 within the required period for such calculation. Following such consultation and in any event within [\*\*\*] of delivering the Draft Allocation Schedule (or such longer period as the Buyer and the Sellers' Representative may agree), the Sellers' Representative shall deliver to the Buyer the relevant Final Allocation Schedule agreed with the Buyer (each a "Final Allocation Schedule").

5.4 A Seller may request, on reasonable notice, to receive from the Sellers' Representative a summary of the information relevant to such Seller set out in such Final Allocation Schedule.

5.5 If Completion is deferred beyond the date of this Agreement in accordance with the terms of this Agreement, the parties shall comply with the process set out in this Clause 5 (including the obligation to consult on such Draft Allocation Schedule) and the applicable Allocation Schedule previously submitted shall cease to apply for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;6. COMPLETION STATEMENT

&nbsp;&nbsp;&nbsp;&nbsp;6.1 On the Completion Statement Release Date, either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1 if there is a Positive Adjustment, the Buyer shall pay an amount equal to such Positive Adjustment to the Sellers together with the Retained Completion Statement Consideration, and the Buyer shall not be under any obligation to pay any additional amounts to the Sellers, and payment of such amount in cash in accordance with Clause 3.9 shall be an absolute discharge of the Buyer's obligations, in respect of this Clause 6.1.1; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2 if there is a Negative Adjustment, an amount equal to the difference between the Retained Completion Statement Consideration and such Negative Adjustment shall be released from the Retained Completion Statement Consideration and paid to the Sellers and the Buyer shall not be under any obligation to pay any additional amounts to the Sellers, and payment of such amount in cash in accordance with Clause 3.9 shall be an absolute discharge of the parties' obligations, in respect of this Clause 6.1.2; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3 if the value of the Upfront Payment is equal to the Estimated Consideration, the Retained Completion Statement Consideration shall be released and paid to the Sellers and the Buyer shall not be under any obligation to pay any additional amounts to the Sellers, and payment of such amount in cash in accordance with Clause 3.9 shall be an absolute discharge of the Buyer's obligations, in respect of this Clause 6.1.3.

6.2 As soon as practicable following Completion but in any event within [\*\*\*] after the Completion Date, the Buyer shall procure the preparation of a draft Completion Statement on the basis of the Accounting Policies and in the same (or substantially the same) format as the Estimated Completion Statement.

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6.3 When the draft Completion Statement has been prepared, the Buyer shall deliver a copy thereof to the Sellers' Representative. The Sellers' Representative and their accountants shall then have a period of [\*\*\*] after the date on which the Buyer delivered the draft Completion Statement to the Sellers' Representative (the "Review Period") within which to review the draft Completion Statement and to satisfy themselves that it has been duly prepared in accordance with this Agreement. The Sellers' Representative shall, before the expiry of the Review Period, either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.1 confirm in writing to the Buyer that it agrees that the draft Completion Statement has been duly prepared; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.2 give notice in writing to the Buyer explaining, in reasonable detail, why it is unable so to confirm and setting out details of its proposed amendments to the draft Completion Statement and to the value of the Consideration.

6.4 If the Sellers' Representative fail to provide such confirmation or to give such notice in accordance with Clause 6.3, the draft Completion Statement and the certificate of Consideration shall, upon expiry of the Review Period, be deemed to have been finally accepted and agreed by all parties.

&nbsp;&nbsp;&nbsp;&nbsp;6.5 If the Sellers' Representative serves a valid notice in accordance with Clause 6.3.2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.1 the Sellers' Representative (on behalf of the Sellers) and the Buyer shall endeavour to resolve all matters in dispute as soon as practicable. If they fail to resolve such matters within [\*\*\*] of the date on which the Buyer received such notice from the Sellers' Representative (or such longer period as the Buyer and the Sellers' Representative shall agree) (the "Resolution Period"), either the Buyer or the Sellers' Representative may refer any matter in dispute to an appropriate firm of chartered accountants of international repute for a resolution. The identity of such accountant (who shall be based in the United Kingdom) shall be agreed between the Buyer and the Sellers' Representative and he shall be appointed within [\*\*\*] of the expiry of the Resolution Period (the "Appointment Period"). If the Buyer and the Sellers' Representative fail to make such appointment within the Appointment Period, the appointment shall be made by the President for the time being of the Institute of Chartered Accountants in England and Wales within [\*\*\*] of the expiry of the Appointment Period, on the application of both the Buyer and the Sellers' Representative who shall act together. Such accountant shall be instructed to produce a reasoned determination of the matters still in dispute in accordance with the provisions of this Clause 6 and to make such reasoned determination as soon as practicable and in any event within [\*\*\*] of his being instructed. In making such reasoned determination, such accountant shall act as an expert and not as an arbitrator and his decision shall (in the absence of fraud and manifest error) be final and binding on the parties. Such accountant shall make their determination when both the Buyer and Sellers' Representatives have had the opportunity to make submissions, and the accountant shall provide the Buyer and the Sellers' Representative with copies of the others submissions after receipt of both submissions. The costs of such accountant shall be borne by the parties in such proportions as he may direct or, in the absence of any such direction, as to one half by the Buyer and as to the other half by the Sellers' Representative on behalf of the Sellers; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.2 the parties shall bear their own costs in connection with the resolution of the matters in dispute.

6.6 The Buyer and the Sellers' Representative (on behalf of the Sellers) hereby waive the right to object to any court order to give effect to any such nomination by the Institute of Chartered Accountants in England and Wales. In any case, such independent firm of chartered accountants shall owe a duty of care to both the Buyer and the Sellers' Representative.

6.7 For the avoidance of doubt, any line items not identified in the notice served in accordance with Clause 6.3.2 as being in dispute will be deemed to be agreed for the purposes of this Agreement and will therefore (in the absence of fraud or manifest error) be final and binding upon the parties, save where such line item should be changed as a direct consequence of the agreement or determination of a disputed line item.

6.8 The Sellers' Representative and their accountants shall be entitled to examine the working papers relating to the draft Completion Statement for the purposes of their review under Clause 6.3, subject to the Sellers' Representative complying with any reasonable confidentiality, hold harmless or similar requirements of the Buyer or its accountants in connection with the release of such working papers to the Sellers' Representative. Subject thereto, the Buyer and the Sellers' Representative (on behalf of the Sellers) agree that they will promptly provide each other and their respective advisers with all information in their respective possession or control relating to the operations of the Target Group as

may be relevant for the purposes of the Completion Statement, and with all good faith co-operation and assistance as may reasonably be required to facilitate the production, review and agreement of the Completion Statement.

&nbsp;&nbsp;&nbsp;&nbsp;7. COMPLETION

7.1 Completion shall take place at the offices of the Buyer's Solicitors on the Completion Date when the Sellers and the Buyer shall each perform their respective obligations in accordance with and as set out in Part A and Part B, respectively, of Schedule 2 (Completion Requirements).

7.2 The Buyer will not be obliged to complete this Agreement until each of the Sellers complies in full with its respective obligations under Part A of

Schedule 2 (Completion Requirements).

7.3 The Buyer will not be obliged to complete the sale and purchase of any of the Shares unless the sale and purchase of all of the Shares is completed simultaneously, but completion of the purchase of some only of the Shares will not affect the rights of the Buyer with respect to the purchase of the remainder.

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7.4 If Completion does not take place on the Completion Date because any of the Sellers fails to comply with any of its respective material obligations under this Clause 7 and Schedule 2 (Completion Requirements), then the Buyer may by written notice to the Sellers' Representative and the Fund Sellers elect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.1 proceed to Completion to the extent reasonably practicable (including, at the option of the Buyer, completion of the purchase of some only of the Shares), which will not affect the rights of the Buyer with respect to the purchase of the remainder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.2 defer Completion in relation to some or all of the Shares to such date as the Buyer and the Sellers' Representative may agree (and so that the provisions of Clause 6, apart from this Clause 7.4.2, shall apply to Completion deferred pursuant to this Clause); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.3 terminate this Agreement (whether or not such failure by the Sellers amounts to a repudiatory breach), without prejudice to any other remedies or accrued rights that any party may have against any other party, following which the provisions of this Agreement shall cease to have effect, other than Clauses 1 (Definitions and Interpretations), this Clause 7, 11 (Confidentiality), 12 (Announcements), 15 (Costs and Expenses), 18 (General), 19 (Notices) and 20 (Applicable Law and Jurisdictions).

&nbsp;&nbsp;&nbsp;&nbsp;7.5 Seller's Power of Attorney

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.1 With effect from Completion and until such time as the transfer of the Shares has been registered in the Statutory Register in the name of the Buyer (and the Buyer undertakes to the Sellers to use reasonable endeavours to procure the due submission of such registration promptly following Completion), each Seller irrevocably appoints the Buyer as their attorney ("Attorney") with full power to exercise all or any of the voting and other rights, powers and privileges attached to their respective Shares or otherwise capable of being exercised solely in the capacity of the registered holder of the Shares as the Buyer shall in its absolute discretion see fit, including (but not limited to):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) receiving notice of, attending and voting at any general meeting of or class meeting of the Company, and all or any adjournments of such meetings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) execute any consent to short notice proxy or written resolution capable of being executed by a shareholder of the Company; (c) dealing with and giving directions as to any moneys, securities, benefits, documents, notices or other communications (in

whatever form) arising by right of the Shares or received in connection with the Shares from the Company or any other person

but excluding any Consideration or other payments, documents, notices or other communications (in whatever form) arising pursuant to this Agreement or any other Transaction Document; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) otherwise executing, delivering and doing all deeds, instruments and act in the Sellers' name insofar as may be done solely in the Sellers' capacity as registered holder of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.2 The Buyer may delegate one or more of the powers conferred on the Buyer by this Clause 7.5 to an officer or officers appointed for that purpose by the board of directors of the Buyer, by resolution or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.3 With effect from Completion and until such time as the transfer of the Shares has been registered in the Statutory Register in the name of the Buyer each Seller undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not to exercise any of the voting and other rights, powers and privileges attached to its Shares without the consent of the

Attorney;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to hold on trust for the Buyer all dividends and other distributions received by such Seller in respect of its Shares (excluding any Consideration or other payments (in whatever form) arising pursuant to this Agreement or any other Transaction Document) and promptly notify the Buyer of anything so received by such Seller in that Seller's capacity as registered holder of its Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to act promptly in accordance with the Buyer's reasonable instructions in relation to any rights exercisable or anything received by such Seller in the Seller's capacity as registered holder of the Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to ratify on request anything the Attorney shall lawfully do or cause to be done by virtue of this Clause 7.5.3.

&nbsp;&nbsp;&nbsp;&nbsp;8. TERMINATION OF INVESTMENT AGREEMENT

&nbsp;&nbsp;&nbsp;&nbsp;8.1 With effect from Completion each of the Sellers agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1 the Investment Agreement is terminated and shall cease to have effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.2 each of them shall with effect from such termination stand released and discharged from all obligations (past, present and future) arising under or resulting from the Investment Agreement including, without limitation, the provisions of clause 17.2 (Continuing obligations); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.3 none of them shall be entitled to exercise any rights or make any claim against any Target Group Company or against any of the other

Sellers under or in relation to the Investment Agreement or its termination.

&nbsp;&nbsp;&nbsp;&nbsp;9. WARRANTIES AND COVENANT

&nbsp;&nbsp;&nbsp;&nbsp;9.1 The Fundamental Title Warranties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.1 Subject to Clause 9.1.3, each Seller severally represents and warrants to the Buyer in respect of his, her or its own Shares and his, her or its own position only that each of the Fundamental Title Warranties is true and accurate in all respects and is not misleading at the date of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.2 To the extent Completion is deferred beyond the date of this Agreement, each Seller and Warrantor will procure that each Fundamental Title Warranty given pursuant to Clause 9.1.1 is true and accurate and not misleading at Completion, and for this purpose, each Seller and Warrantor shall be deemed to repeat each such Fundamental Title Warranty at Completion with references to the "date of this Agreement" being substituted by references to the "Completion Date".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.3 Save as set out in Schedule 4 (Limitation on Liability), the Fundamental Warranties shall not be qualified in any way.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.4 Each Seller hereby releases and forever discharges (on behalf of itself and its Affiliates, and each Seller represents, warrants, indemnifies (on an after-Tax basis) and undertakes to the Buyer that it is authorised to provide such release and discharge on behalf of such other person) all or any actions, claims, rights, demands and set-offs whether in this jurisdiction or any other, whether or not presently known to the parties or to the law, and whether in law or equity, that such person ever had, may have, or hereafter can, shall or may have against any Target Group Company or any of their respective directors, officers or employees arising in respect of any such actions, claims, rights, demands and set-offs that relate to any act, matter or thing occurring prior to Completion, save for any payments due under any Transaction Document.

&nbsp;&nbsp;&nbsp;&nbsp;9.2 Patent Rights

On Completion, the Warrantors shall deliver to the Buyer an updated version of Schedule 4 of the Warranty Deed setting out all Patent Rights included in the Company IP Rights as at the Completion Date.

&nbsp;&nbsp;&nbsp;&nbsp;9.3 General

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.1 No information relating to the Target Group of which the Buyer or any of its agents or advisers has knowledge (whether actual, imputed or constructive or any of them) other than that contained in or referred to in this Agreement or that has been Disclosed in the Disclosure Letter, and no investigation by or on behalf of the Buyer shall prejudice any claim that the Buyer shall be entitled to bring under this Agreement or shall operate to reduce any amount recoverable by the Buyer under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.2 Each of the Warranties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) are separate and independent and, unless expressly provided to the contrary, are not limited or restricted by reference to or inference from the terms of any other provision of this Agreement or any other Warranty;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) apply to the Subsidiary and, to the extent they are SanPlena Warranties, SanPlena as well as to the Company, as if reference to "the Company" included a corresponding reference to the Subsidiary and, to the extent they are SanPlena Warranties, to SanPlena (and each of them severally);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the extent they are SanPlena Qualified Warranties, apply to SanPlena as well as to the Company, subject to the deemed addition of "so far as the Warrantor(s) is/are aware" in respect of such Warranty; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) shall not in any respect be extinguished or affected by Completion (and for the avoidance of doubt, the remedies of the Buyer in respect of any breach of the Warranties shall continue to subsist notwithstanding Completion);

9.3.3 For the avoidance of doubt, no claim against a Seller or a Warrantor under the Warranties shall be limited in the case of any fraud, dishonesty or deliberate misstatement or deliberate concealment on the part of such Seller, Warrantor or any of their respective agents, officers or employees acting on behalf of such Seller or Warrantor.

9.3.4 Each Seller undertakes to the Buyer that in the event of any claim being made against it arising out of or in relation to this Agreement, the Warranty Deed or the Transaction Documents, it will not bring any claim against any member of the Target Group (or any of their directors, officers, employees, agents or advisors, save in the case of any fraud, dishonesty or deliberate misstatement or deliberate concealment on the part of any such person) on which or on whom it may have relied before agreeing to the terms of this Agreement, the Warranty Deed or the Transaction Documents or authorising any statement in the Disclosure Letter. To the extent that any such claim exists, each Seller irrevocably waives the right to bring any such claim against or recover any sums from any member of the Target Group (or any of their directors, officers, employees, agents or advisors) in relation to such claim. Each member of the Target Group and any of their directors, officers, employees, agents or advisors may enforce the terms of this Clause 9.3.4 in accordance with the Contracts (Rights of Third Parties) Act 1999, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any such third party shall obtain the written consent of the Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any such third party shall not be entitled to assign its rights under this Clause 9.3.4.

9.3.5 Each Seller severally and not jointly shall indemnify and hold the Buyer harmless on an after-Tax basis from and against, and pay on demand an amount equal to, their Proportionate Share (save in respect of an Executive Tax Indemnity Claim which is made by way of a Tax Warranty Claim where the relevant Seller in respect of which the claim is made shall pay the total amount) of any and all Losses suffered or incurred by the Buyer, to the extent arising from any Claim, Fundamental Warranty Claim or Tax Warranty Claim (notwithstanding whether the relevant Warranty was given by a Warrantor), provided that any and all claims by the Buyer under this Clause 9.3.5 shall be subject to the limitations applying to the Claim, Fundamental Warranty Claim or Tax Warranty Claim set out in Schedule 4 (Limitation on Liability) or the Warranty Deed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.6 The liability of each of the Sellers (whether in such capacity or in the capacity of Warrantor or otherwise) in respect of any claim under this Agreement and/or the Warranty Deed (including any Claim, Fundamental Warranty Claim, Tax Warranty Claim or Tax Covenant Claim) shall be limited as provided in Schedule 4 (Limitation on Liability).

&nbsp;&nbsp;&nbsp;&nbsp;9.4 Tax Matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.1 The parties agree that the terms of Schedule 3 (Tax Matters) of the Warranty Deed shall apply to the Sellers and that all parties shall comply with the terms of such Schedule as if the Sellers were a party to the Warranty Deed as a Warrantor and which shall include the giving of the covenant in paragraph 2 of Schedule 3 of the Warranty Deed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.2 All the provisions of Schedule 3 of the Warranty Deed, including all the limitations, shall apply to any Tax Covenant Claim made against a Seller.

&nbsp;&nbsp;&nbsp;&nbsp;10. PROTECTION OF GOODWILL

10.1 Each Covenantor undertakes to the Buyer and each of the Buyer's Group Companies following Completion that he will not, and will procure so far as it is within such Covenantor's reasonable power to do so, that no member of the Seller's Group of such Covenantor will, directly or indirectly (save in accordance with his duties (if any) as an employee, consultant, director or officer of any Buyer's Group Company after Completion):

10.1.1 at any time during the period of [\*\*\*] from the Completion Date: (a) engage in; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) carry on; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) be a shareholder in; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) be a consultant to; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) be concerned or interested in any other way in, any business, as separate covenants, within each of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the United Kingdom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the European Economic Area; (h) the United States of America;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) northern America outside of the United States of America; (j) southern and central America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Africa and the Middle East;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the Association of Southeast Asian Nations; and (m) any other country not covered by the foregoing, competing with the Business.

10.2 Subject to the ongoing consent of the Buyer (which consent can be withdrawn at the Buyer's discretion at any time with written notice to [\*\*\*] and [\*\*\*] during the period of [\*\*\*] from the Completion Date, until the valid execution of the JV Operating Agreement Amendment after the date of this Agreement), nothing in Clause 10.1 shall prevent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1 [\*\*\*] from continuing in his role as a board observer to SanPlena pursuant to the JV Operating Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.2 [\*\*\*] from continuing in his role as a consultant to SanPlena pursuant to the DC Consultancy Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.3 [\*\*\*] from continuing in his role as manager on the board of managers of SanPlena pursuant to the JV Operating Agreement,

and if such consent is so withdrawn, [\*\*\*] and [\*\*\*] both agree: (i) SanPlena and its Affiliates (at the applicable time) shall be competitors of the Business for the purposes of this Clause 10; and (ii) [\*\*\*] and [\*\*\*] will be in breach of Clause 10.1 unless they terminate their respective roles with SanPlena effective immediately (subject to any applicable notice periods) upon such Buyer consent being withdrawn.

10.3 Each Seller (excluding the Fund Sellers) undertakes to the Buyer and each of the Buyer's Group Companies following Completion that it will not, and it will, so far as it is within such Seller's reasonable power to do so, procure that no member of such Seller's Group will, directly or indirectly at any time prior to or during the period of [\*\*\*] from the Completion Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.1 Solicit the services of, or endeavour to entice away from the Target Group any director, employee or consultant of the Target Group who at Completion or at any time during the period of [\*\*\*] prior to Completion occupied a senior or managerial position in relation to the Company or any member of the Target Group or who was likely (in the opinion of the Company) to be in possession of Confidential Information relating to any member of the Target Group (whether or not such person would commit any breach of his contract of employment or engagement by reason of leaving the service of such company);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.2 interfere with or seek to interfere with contractual or other trade relations between the Company, the Subsidiary or SanPlena and any person who is or, at any time during the period of [\*\*\*] prior to the Completion Date, was one of their respective contractual counterparties or persons with whom the Company or any of the Target Group Companies is, or was, in negotiations with, in respect of such an arrangement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.3 do or say anything that is reasonably likely to be harmful to a Target Group Company's goodwill or that is reasonably likely to lead a person who has dealt with a Target Group Company at any time during the [\*\*\*] prior to the date of this Agreement to cease to deal with a Target Group Company on substantially equivalent terms to those previously offered or at all.

10.4 Nothing contained in Clause 10.1, 10.2 or 10.3 shall preclude or restrict any Seller from holding not more than [\*\*\*] percent ([\*\*\*]%) of the issued share capital of any company whose shares are listed on a recognised stock exchange.

10.5 Each of the undertakings contained in Clause 10.1 or 10.2 is a separate undertaking by each relevant Seller and shall be enforceable by the Buyer

(on its own behalf and on behalf of the Company and each Target Group Company and Buyer's Group Company) separately and independently of its right to enforce any one or more of the other covenants contained in Clause 10.1 or 10.2 and if one or more of the undertakings is held to be against the public interest or unlawful or in any way an unreasonable restraint of trade, the remaining undertakings shall continue to bind the relevant Sellers.

10.6 The relevant Sellers agree (having, in the case of each Seller holding [\*\*\*]% or more of the issued share capital of the Company at Completion, taken legal advice) that the undertakings contained in Clause 10.1 or 10.2 are reasonable and necessary for the protection of the legitimate interests of the Buyer, the Company and any other Target Group Company or Buyer's Group Company and that these restrictions do not work harshly on it.

10.7 The parties further agree that, without prejudice to any other remedy that may be available to the Buyer, the Buyer shall be entitled to injunctive or other equitable relief without posting a bond or other undertaking in relation to any breach or prospective breach of the undertakings in Clause

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 or 10.2, it being acknowledged that an award of damages would not be an adequate remedy for such a breach.

10.8 For the purposes of this Clause 10.1 or 10.2, the expression "directly or indirectly" shall mean the relevant Seller or any member of such Seller's Group acting either alone or jointly with or on behalf of any other person whether as principal, partner, manager, employee, contractor, director, consultant, investor or otherwise.

10.9 Each Seller (excluding the Fund Sellers) agrees with the Buyer, so far as it is within such Seller's reasonable power to do so, to procure that all members of such Seller's Group is made aware of and complies with each of the applicable undertakings contained in Clause 10.1 or 10.2.

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&nbsp;&nbsp;&nbsp;&nbsp;11. CONFIDENTIALITY

11.1 Each Seller undertakes to the Buyer and to each member of the Target Group following Completion that it will (and will procure that each member of such Seller's Group and each of their respective Representatives (to the extent that it has received Confidential Information from such Seller)) will keep confidential:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.1 the provisions and subject matter of, and the negotiations relating to this Agreement and the Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.2 all Confidential Information and any other information received or obtained as a result of entering into or performing this Agreement that relates to Buyer's Group and the business carried on by, and the affairs of, the Buyer's Group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.3 all Confidential Information and any other information received or obtained as a result of being a Seller, director, officer, employee or consultant of the Target Group in respect of the Target Group.

11.2 The Buyer undertakes to each Seller and to each member of each Seller's Group following Completion that it will (and will procure that each member of the Buyer's Group after Completion and each of their respective Representatives (to the extent that it has received Confidential Information from the Buyer)) will keep confidential:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.1 the provisions and subject matter of, and the negotiations relating to this Agreement and the Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.2 all Confidential Information and any other information received or obtained as a result of entering into or performing this Agreement that relates to such Seller or such Seller's Group.

&nbsp;&nbsp;&nbsp;&nbsp;11.3 Clauses 11.1 and 11.2 shall not apply to any disclosure of any information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3.1 if and to the extent that such disclosure is required by law or regulation or by any stock exchange or any regulatory, governmental or antitrust body having applicable jurisdiction, including any Tax Authority, whether or not the requirement has the force of law provided that, in such circumstances, the disclosing entity will, unless prohibited by law or by any securities exchange or regulatory or governmental body to which that entity is subject, first inform the Buyer of its intention to disclose such information and take into account the reasonable comments of the Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3.2 if and to the extent required for the purpose of any proceedings arising out of or in connection with this Agreement or the Transaction Documents, including in connection with any clearances submitted to any Tax Authority which disclose the details of the transaction contemplated by this Agreement or the Transaction Documents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3.3 if and to the extent that the Confidential Information concerned has come into the public domain other than through the fault of the party to this Agreement that is the recipient of the relevant Confidential Information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3.4 if the disclosure is to its professional advisers, auditors or bankers subject in each case to binding obligations of confidentiality either in a form approved by the Buyer or the Sellers' Representative (in consultation with the Fund Sellers) (as the case may be) or that are not less onerous, including pursuant to professional obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3.5 if and to the extent the Buyer or the Sellers' Representative (in consultation with the Fund Sellers) (as the case may be) has given prior written consent (such consent not to be unreasonably withheld, delayed or made subject to unreasonable conditions); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3.6 if and to the extent the disclosure is to professional advisers, auditors, bankers, potential buyers of or investors only to the extent necessary or reasonably required in relation to a sale of or investment into any member of the Buyer's Group or any part of their business or assets.

11.4 Each member of the Buyer's Group (and each member of the Target Group) and, in respect of the provisions of Clause 11.2 given in favour of each member of each Seller's Group, each such member of a Seller's Group to the extent affected, may enforce the terms of this Clause 11 subject to and in accordance with the provisions of the Contracts (Rights of Third Parties) Act 1999.

11.5 Each Seller shall on request from the Buyer procure the assignment to the Buyer of the benefit of the confidentiality provisions of all confidentiality agreements and undertakings given by any other potential buyer of or investor in the Target Group to such Seller (and not any member of the Target Group).

11.6 The Sellers' Representative will on request from the Buyer send a letter in a form reasonably requested by the Buyer to the other parties to such agreements and undertakings referred to in Clause 11.5 authorising the Buyer to recover all information (as defined in such agreements or undertakings) or requesting certification of its destruction to the Buyer, in each case in accordance with the terms of such agreements and undertakings.

&nbsp;&nbsp;&nbsp;&nbsp;12. ANNOUNCEMENTS

12.1 Save to the extent any disclosure or announcement is required by law or regulation or by any stock exchange or any regulatory, governmental or antitrust body having applicable jurisdiction, no party shall make or issue any public announcement, communication or circular (an "Announcement") concerning the sale of the Shares or any ancillary matter (including the Consideration) unless it has first obtained the Buyer's and the Sellers' Representative's and, to the extent a Fund Seller is named in such Announcement, the named Fund Seller's written consent (in each case such consent not to be unreasonably withheld, delayed or made subject to unreasonable conditions).

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&nbsp;&nbsp;&nbsp;&nbsp;13. POST-COMPLETION ARRANGEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;13.1 Records

Following Completion, each Seller shall procure that all records, papers, documents and data (in whatever form they may exist) in the possession, custody or control of, or kept or made by or on behalf of, the Sellers or any member of the Seller's Group that they are aware relate to any matters that include the Business or affairs of any member of the Target Group and that constitute the property of such member of the Target Group:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.1 shall on the reasonable request of the Buyer be sent to the Buyer to the extent that such records, paper, documents and data relate wholly to any member of the Target Group and are not already required to be delivered under Schedule 2; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.2 to the extent that such records, papers, documents and data also relate to the Sellers or any member of the Seller's Group, shall be properly maintained and preserved by the Sellers and the relevant member of the Seller's Group and the information in such records, papers, documents and data relating to the Business affairs of any Target Group Company shall be made available (at reasonable times and on reasonable advance notice) to the Buyer or any of its officers, employees, agents or advisers.

&nbsp;&nbsp;&nbsp;&nbsp;13.2 Bonus Letters and Synthetic Executive Option Agreement

Following Completion, the Buyer shall procure:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2.1 that each of the payments due to the Bonus Recipients under the Bonus Letters are made by the Company to each Bonus Recipient in accordance with the terms of the relevant Bonus Letter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2.2 that each of the payments due to the Synthetic Executive Optionholder under the Synthetic Executive Option Agreement are made by the Company (or, if the Company ceases to exist or otherwise fails to make the payments, by another entity) to the Synthetic Executive Optionholder.

&nbsp;&nbsp;&nbsp;&nbsp;14. SET-OFF

&nbsp;&nbsp;&nbsp;&nbsp;14.1 The Buyer may set-off or withhold:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.1 in the case of any Fundamental Title Warranty Claim, after the aggregate Consideration payments made to the Sellers exceed $[\*\*\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.2 in the case of any Uninsured Claim that is a Fundamental Business Warranty Claim made after the Retained Warranty Consideration

Payment Date; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.3 in the case of any Uninsured Claim that is a Tax Warranty Claim, a Tax Covenant Claim (other than an Executive Tax Indemnity Claim), or any other claim under this Agreement (save for a claim described in either Clause 14.1.1, Clause 14.1.2 or Clause 14.1.5) after the earlier of (i) the Retained Warranty Consideration Payment Date and (ii) the aggregate Consideration payments made to the Sellers exceed $[\*\*\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.4 in the case of any Uninsured Claim that is a Claim or any other claim pursuant to this Agreement or the Warranty Deed (save for a

claim described in any of Clauses 14.1.1 to 14.1.3 or 14.1.5 (inclusive)) after the aggregate Consideration payments made to the Sellers exceed $[\*\*\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.5 in the case of an Executive Tax Indemnity Claim,

from any relevant payment due to a Seller pursuant to the Transaction Documents (subject as set out above, including any Milestone Payments, any Net Sales Payments, any Net Receipts Payments or any JV Milestone Payments) to the extent that such Seller owes any liability, loss, damages, expenses or costs to the Buyer (a "Set-Off Claim") pursuant to the Transaction Documents (the "Initial Set-Off Amount").

14.2 If the Sellers' Representative (in consultation with the Fund Sellers), acting reasonably and in good faith having taken appropriate advice with the written instruction from each of the relevant affected Sellers, does not believe the Initial Set-Off Amount to be a reasonable or good faith estimate of the relevant Set-Off Claim by the Buyer, the Sellers' Representative may submit a written notice to the Buyer setting out the basis for its objection to the Initial Set-Off Amount (the "Set-Off Objection Notice").

14.3 For a period of [\*\*\*] (or such longer period as the Buyer and the Sellers' Representative may agree) following receipt of a Set-Off Objection Notice (the "Set-Off Objection Period"), the Buyer and the Sellers' Representative shall discuss in good faith the basis for the Set-Off Objection Notice.

14.4 If the Buyer and the Sellers' Representative (in consultation with the Fund Sellers) do not reach agreement during the Set-Off Objection Period, the matter shall be referred by the Buyer to an independent counsel in England and Wales of at least 10 years' relevant experience, mutually agreeable to the Buyer and the Sellers' Representative (in consultation with the Fund Sellers), for an opinion as to whether the applicable Set-Off Claim is, on the balance of probabilities, likely to succeed and whether the Initial Set-Off Amount is a reasonable estimate of the liability, loss, damages, expenses or costs to the Buyer relating to such Set-Off Claim.

14.5 If the Buyer and the Sellers' Representative cannot agree on the appointment of the counsel within [\*\*\*] following either party notifying the other in writing that they do not agree with the choice of counsel in good faith, the Buyer and the Sellers' Representative shall request the President of the Bar Council to make an appropriate appointment given the quantum of the Initial Set-Off Amount.

14.6 The following provisions shall apply to the counsel's determination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6.1 the Buyer and the Sellers' Representative may provide the counsel with reasonable evidence or information relating to the matters in dispute (proportionate to the quantum of the Initial Set-Off Amount) and the counsel will be entitled (to the extent it considers appropriate) to base its determination on such information and on the accounting and other records of the Target Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6.2 if the counsel's determination is either that the applicable Set-Off Claim is not, on the balance of probabilities, likely to succeed, or that the Initial Set-Off Amount is in excess of a reasonable estimate of the liability, loss, damages, expenses or costs to the Buyer relating to such Set-Off Claim, the Buyer shall bear the counsel's costs and expenses, otherwise the relevant Sellers shall bear such costs and expenses in proportion to their respective Proportionate Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6.3 the counsel shall act as an expert and not as an arbitrator; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6.4 the counsel's opinion shall not be a determination of the actual liability, loss, damages, expenses or costs to the Buyer pursuant to the

Transaction Document, (if any) only a determination of the Buyer's ability to set-off pursuant to this Clause 14.

14.7 In the event that, in accordance with Clause 14.3, the Buyer and the Sellers' Representative agree or, in accordance with Clauses 14.4 to 14.6 (inclusive), the counsel's opinion is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.7.1 that the applicable Set-Off Claim is not, on the balance of probabilities, likely to succeed, the Initial Set-Off Amount shall be released

by the Buyer within [\*\*\*] of such agreement or the receipt of such opinion and paid to the relevant Seller or Sellers in accordance as far as possible with the relevant Transaction Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.7.2 that the applicable Set-Off Claim is, on the balance of probabilities, likely to succeed and that the Initial Set-Off Amount is in excess of a reasonable estimate of the liability, loss, damages, expenses or costs of the Buyer relating to Set-Off Claim, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the excess amount shall be released by the Buyer within [\*\*\*] of such agreement or the receipt of such opinion and paid to the relevant Seller or Sellers in accordance as far as possible with the relevant Transaction Document; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the balance of the Initial Set-Off Amount shall be retained by the Buyer until the liability of the relevant Sellers in respect of such Set-Off Claim has been determined in accordance with the Transaction Documents and the Buyer shall serve a Notice in accordance with paragraph 2 of Schedule 4 as soon as is reasonably practicable after receipt of the counsel's opinion; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.7.3 that the applicable Set-Off Claim is, on the balance of probabilities, likely to succeed, and that the Initial Set-Off Amount is equal to or less than a reasonable estimate of the liability, loss, damages, expenses or costs of the Buyer relating to such Set-Off Claim, then the Initial Set-Off Amount shall by retained by the

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Buyer until the liability of the Sellers in respect of such Set-Off Claim has been determined in accordance with the Transaction Documents

and the Buyer shall serve a Notice in accordance with paragraph 2 of Schedule 4 as soon as is reasonably practicable after receipt of the counsel's opinion.

14.8 To the extent applicable, the provisions of Schedule 4 shall apply to all Set-Off Claims.

15. COSTS, EXPENSES AND TAXES

15.1 Each party shall pay its own costs and expenses incurred in connection with the preparation, negotiation, execution and performance of this Agreement, the Transaction Documents and each document referred to therein, except as set out in Clause 15.2. The Buyer shall pay all stamp and transfer taxes arising from the acquisition of the Shares.

15.2 The Sellers agree that any cost, expenses, liabilities or associated Taxes incurred by the Target Group in connection with the Transaction shall be a deduction in the Consideration as Company Transaction Expenses in accordance with Clause 3 or pursuant to the Contingent Consideration Deductions.

15.3 Save where already provided for in a Transaction Document and subject to Clauses 3.12 and 3.13, in the event that any payments due to a party are subject to any Taxes, duties, levies, imposts, assessments, deductions, or withholdings required by applicable laws to be remitted by the payer to a Governmental Authority ("Withholding Taxes"), the paying party may deduct the amount of such Withholding Taxes from the applicable payment otherwise payable to the other party.

15.4 In such event, the paying party will, on a timely basis, notify the other party of such obligation, pay the Withholding Taxes to the proper Governmental Authority and send evidence of the payment of such obligation to the other party following that payment. Any amount of Withholding Taxes withheld and remitted by a paying party to a relevant Governmental Authority constitutes payment to the other party in satisfaction of the paying party's obligations, as if the amount were paid directly to the other party.

15.5 In the event that any payment due to a party is subject to such Withholding Taxes, the paying party will not, except where this Agreement or the Warranty Deed provides for an amount to be calculated on an after-Tax basis, have any obligation to pay to such party any amount exceeding the amount of such payment minus the amount of such Withholding Taxes. Each party will use reasonable efforts to assist the other party in claiming exemptions from, or reductions in, such deductions or withholdings as permitted by applicable laws.

15.6 If Clause 15.5 applies, and save in respect of any Executive Tax Amount, such that a paying party is not obligated to pay any additional amount, and a Governmental Authority retroactively determines that a payment made without deduction of Withholding Taxes by a party to the other party pursuant to a Transaction Document should have been subject to Withholding Taxes, and the paying party remits such Withholding Taxes to the Governmental Authority, then the paying party will have the right (a) to offset such amount, including any interest and penalties that may be imposed thereon (except to the extent any such interest or penalties result from the negligence of the paying party), against future payment obligations of the paying party under this Agreement, or (b) to invoice the other party for such amount (which will be payable by the other party within [\*\*\*] following its receipt of such invoice).

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16. SELLERS' REPRESENTATIVE

16.1 Each of the Sellers who are a party to this Agreement (excluding the Fund Sellers) hereby irrevocably appoints the Sellers' Representative as the representative of the Sellers to act on their behalf for all purposes under or in connection with this Agreement and the Transaction Documents, including without limitation for the purposes of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.1 accepting notices on behalf of the Sellers in accordance with Clause 19;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.2 delivering payment instructions to the Buyer in connection with the payment of the Consideration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.3 determining the Proportionate Share payable to each Seller, including pursuant to Clause 3.1.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.4 agreeing with the Buyer on the final Completion Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.5 agreeing with the Buyer on any Claims, Tax Warranty Claims, Tax Covenant Claims, Fundamental Warranty Claims or other claims pursuant to the Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.6 delivering to and consulting with the Buyer on any Allocation Schedule or Final Allocation Schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.7 granting any consent or approval, or signing any amendment or settlement, on behalf of the Sellers under or relating to this Agreement and the Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.8 taking any and all actions that may be necessary or desirable, as determined by the Sellers' Representative in its sole discretion, in connection with the payment of the costs and expenses incurred with respect to the transaction contemplated by this Agreement and the Transaction Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.9 generally taking any and all other actions and doing any and all other things provided in or contemplated by this Agreement to be performed by the Sellers or the Sellers' Representative on behalf of the Sellers.

16.2 Each Seller hereby irrevocably (by way of security for the performance of its obligations under this Agreement) appoints the Sellers' Representative as its attorney with full authority on its behalf and in the Seller's name or otherwise to do all acts and to execute and deliver such documents or deeds as required by law or as may, in the reasonable opinion of the Sellers' Representative, be required to give effect to the matters described in Clause 16.1.

16.3 The Buyer and each Seller acknowledge that in exercising the powers and authorities conferred by this Clause 16 or the Transaction Documents upon the Sellers' Representative, the Sellers' Representative shall not be acting, or be construed as acting, as the agent or trustee on behalf of any Seller.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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16.4 Each Seller agrees that the Sellers' Representative shall have no liability whatsoever to any Seller in relation to the exercise of those powers and

authorities, and each Seller severally agrees to pay, indemnify and hold harmless the Sellers' Representative pro rata to their respective Consideration in respect of any actions taken pursuant to this Clause 16, save in the case of fraud or bad faith on the part of the Sellers' Representative. The Sellers' Representative shall not be liable to any Seller for any actions or omissions taken or occurring pursuant to legal or other professional advice.

16.5 The Buyer shall be entitled to rely on the exercise of the powers and authorities conferred on the Sellers' Representative as if the relevant Seller is exercising such powers and authorities.

16.6 The provisions of this Clause 16 are intended to be for the express benefit of, and will be enforceable by, the Sellers' Representative, in each case as a third party beneficiary in accordance with this Clause 16, and the Buyer.

16.7 The provisions of this Clause 16 shall apply mutatis mutandis in respect of any persons so appointed. If the Sellers' Representative appointed in accordance with this Clause 16 determines that he is, or he is otherwise, unable to act as the Sellers' Representative for any reason (such as death, incapacity or any other circumstances in which it would be unreasonable to expect him to continue) or is deemed unable to act as the

Sellers' Representative by a majority of the Sellers (excluding the Fund Sellers), a majority of the Sellers (excluding the Fund Sellers) may elect, pro rata to the number of Shares held by them, to substitute as the Sellers' Representative another Seller who is willing to act as the Sellers' Representative in accordance with this Clause 16. Each Seller agrees that the Buyer shall, acting in good faith, be entitled to rely on the instruction of the Sellers' Representative.

17. PAYMENTS

17.1 Save as expressly provided to the contrary in this Agreement, the Warranty Deed or the Loan Note Instrument:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1 any payment to be made pursuant to this Agreement, the Warranty Deed or the Loan Note Instrument by the Buyer (including the

Consideration) shall be made to the Paying Agent Bank Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.2 any payment to be made pursuant to this Agreement or the Warranty Deed by the Sellers shall be made to such bank account of the

Buyer as it shall notify to the Sellers' Representative in writing at least [\*\*\*] prior to the relevant payment obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.3 payment under sub-clauses 17.1.1 and/or 17.1.2 shall be in immediately available funds by electronic transfer on the due date for payment and receipt of the amount due shall be an effective discharge of the relevant payment obligation; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.4 any Loan Notes due to any Rollover Seller under this Agreement shall be issued in accordance with the Loan Note Instrument and delivered by the Buyer to the Sellers' Representative for further distribution in accordance with the relevant Allocation Schedule. The Buyer shall also procure the entry of the relevant Rollover Seller in the register of Loan Note holders maintained by the Buyer.

17.2 If any party defaults in the payment when due of any sum payable under this Agreement, the Warranty Deed or the Loan Note Instrument (whether payable by agreement or by an order of a court or otherwise), the liability of that party shall be increased to include interest on that sum from the date when such payment was due until the date of actual payment at a rate per annum of [\*\*\*]% above the base rate from time to time

of Bank of England and such interest shall accrue from day to day and shall be compounded annually.

18. GENERAL

18.1 Entire Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.1 This Agreement (together with any documents referred to in or required to be entered into pursuant to this Agreement) contains the entire and only agreement and understanding between the parties and supersedes all prior agreements, understandings or arrangements (both oral and written) relating to the subject matter of this Agreement and any such document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.2 This Agreement shall supersede the Confidentiality Agreement at Completion.

18.2 Variations and Waivers

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2.1 No variation of this Agreement shall be effective unless made in writing signed by or on behalf of the Buyer, the Sellers' Representative and the Fund Sellers, provided that the written consent of the Fund Sellers shall only be required to the extent such variation would adversely and disproportionately affect the rights, preferences and privileges of the Fund Sellers, and expressed to be such a variation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2.2 No failure or delay by any party or time or indulgence given in exercising any remedy or right under or in relation to this Agreement shall operate as a waiver of the same nor shall any single or partial exercise of any remedy or right, power or privilege preclude any further exercise of the same or the exercise of any other remedy or right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2.3 No waiver by any party of any requirement of this Agreement, or of any remedy or right under this Agreement, shall have effect unless given in writing and signed by such party. No waiver of any particular breach of the provisions of this Agreement shall operate as a waiver of any repetition of such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2.4 No waiver, release or compromise or any other arrangement of any kind whatsoever that any party gives or enters into with any other party in connection with this Agreement shall affect any right or remedy of such party as regards any other parties or the liabilities of any other such parties under or in relation to this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;18.3 Invalidity

If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3.1 the validity, legality and enforceability under the law of that jurisdiction of any other provision; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3.2 the validity, legality and enforceability under the law of any other jurisdiction of that or any other provision, shall not be affected or impaired in any way.

&nbsp;&nbsp;&nbsp;&nbsp;18.4 Assignment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4.1 This Agreement is personal to the parties and, accordingly, subject to Clause 18.4.2 or 18.4.3, no party shall be entitled to assign, transfer or create any trust in respect of the benefit or burden of any provision of this Agreement, without the prior written consent of the Buyer and the Sellers' Representative in consultation with the Fund Sellers (as applicable) (such consent not to be unreasonably withheld, delayed or made subject to unreasonable conditions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4.2 All or any of the Buyer's rights under this Agreement (including in respect of the Warranties) or any other Transaction Document to which the Sellers are a party (but not any of the Buyer's obligations or liabilities, save pursuant to Paragraph 6.4 of Schedule 5) may (notwithstanding any other provisions contained in this Agreement or such other Transaction Document) be assigned or transferred by the Buyer to any third party, or made the subject of a trust created in favour of any third party, in any case including (without limitation):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to or in favour of any other member of the Buyer's Group (or by any such member to or in favour of any other member of the

Buyer's Group); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to or in favour of any person by way of security for borrowings of the Buyer's Group or by any liquidator, administrator or receiver of the Buyer or by any other person entitled to enforce such security,

provided, in the case of third parties that are not members of the Buyer's Group, either (i) the Buyer has obtained the prior written consent of the Sellers' Representative in consultation with the Fund Sellers (such consent not to be unreasonably withheld, delayed or made subject to conditions) or (ii) such consent shall not be required if undertaken in accordance with Paragraph 6.4 of Schedule 5.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4.3 In the case of [\*\*\*], it may assign all or any of its rights (but not any of the [\*\*\*]'s obligations or liabilities) under this Agreement (including in respect of the Warranties) or any other Transaction Document to which the Sellers are a party may (notwithstanding any other provisions contained in this Agreement or such other Transaction Document) be assigned or transferred by [\*\*\*] to any third party, or made the subject of a trust created in favour of any third party, provided that the Buyer shall not be obliged to make any payment or take any action in breach of law or regulation or by rules or requirements of any stock exchange or any regulatory, governmental or antitrust body.

&nbsp;&nbsp;&nbsp;&nbsp;18.5 Effect of Completion

Except to the extent that they have been performed and except where this Agreement provides otherwise, the obligations contained in this

Agreement remain in full force and effect after Completion.

&nbsp;&nbsp;&nbsp;&nbsp;18.6 Counterparts

This Agreement may be executed in any number of counterparts, each of which when executed and delivered is an original and all of which together evidence the same agreement. This Agreement shall not take effect until it has been executed by all parties.

&nbsp;&nbsp;&nbsp;&nbsp;18.7 Further Assurance

Each of the parties agrees to perform (or procure the performance of) all such acts or to execute and deliver (or procure the execution and delivery of) all such documents, as may be required by law or as may be necessary for the purpose of vesting in the Buyer the full legal and beneficial title to the Shares and/or otherwise giving the parties the full benefit of this Agreement. Unless otherwise agreed, each party shall be responsible for its own costs and expenses incurred in connection with the provisions of this Clause 18.7.

&nbsp;&nbsp;&nbsp;&nbsp;18.8 Other Remedies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.8.1 Any remedy or right conferred upon any party for breach of this Agreement shall be in addition to and without prejudice to all other rights and remedies available to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.8.2 Save as set out in Clause 7.4.3, the Buyer shall not be entitled to terminate or rescind this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;18.9 Third Party Rights

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.9.1 Any provision of this Agreement that confers a benefit upon any member of the Buyer's Group (the "Third Parties") is intended to be enforceable by the Third Parties under the Contracts (Rights of Third Parties) Act 1999. For the avoidance of doubt, such provisions shall include Clauses 9 (Warranties), 10 (Protection of Goodwill) and 11 (Confidentiality) of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.9.2 No other provisions of this Agreement that confer benefits upon any third party shall be enforceable pursuant to Contracts (Rights of

Third Parties) Act 1999 by any such third party (except the Sellers' Representative in their capacity as Sellers' Representative).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.9.3 Subject to Clause 18.2.1, the parties may amend, vary or terminate this Agreement in such a way as may affect any rights or beliefs of any Third Party, that are directly enforceable against the parties under the Contracts (Rights of Third Parties) Act 1999, without the consent of such Third Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.9.4 Any Third Party entitled pursuant to the Contracts (Rights of Third Parties) Act 1999 to enforce any rights or benefits conferred on it by this Agreement may not veto any amendment, variation or termination of this Agreement, that is proposed by the parties and that may affect the rights or benefits of the Third Party.

&nbsp;&nbsp;&nbsp;&nbsp;18.10 Binding on Successors, Representatives and Permitted Assignees

This Agreement shall be binding on, and enure to the benefit of, the parties to this Agreement and their respective personal representatives, successors and permitted assignees, and references to any party shall include that party's representatives, successors and permitted assignees.

&nbsp;&nbsp;&nbsp;&nbsp;19. NOTICES

&nbsp;&nbsp;&nbsp;&nbsp;19.1 Form of Notice

Any notice or other communication to be given or made under or in connection with this Agreement (each a "Notice") must be given in writing to the party due to receive such Notice and must be signed by or on behalf of the person giving it.

&nbsp;&nbsp;&nbsp;&nbsp;19.2 Agent for Service

With effect from Completion, (i) the Buyer irrevocably appoints the Company at its registered address from time to time and (ii) [\*\*\*] irrevocably appoints [\*\*\*] as their respective agent to receive on its behalf in England and Wales service of any legal proceedings to settle any dispute or claim arising out of or in connection with any Transaction Document or their subject matter or formation. Such service shall be deemed completed on delivery to such agent (whether or not it is forwarded to and received by Buyer or [\*\*\*] (as applicable)) and shall be valid until such time as (i) in the case of the Buyer, the Sellers' Representative and the Fund Sellers or (ii) in the case of [\*\*\*], the Sellers' Representative and the Buyer, have received prior written notice that such agent has ceased to act as agent. If for any reason such agent ceases to be able to act as agent or no longer has an address in England, (i) in the case of the Buyer, shall forthwith appoint a substitute acceptable to the Sellers' Representative (in consultation with the Fund Sellers) and deliver to the Sellers' Representative and the Fund Sellers the new agent's name and address within England and Wales or (ii) in the case of [\*\*\*], shall forthwith appoint a substitute acceptable to the Sellers' Representative and the Buyer and deliver to the Sellers' Representative and the Buyer the new agent's name and address within England and Wales.

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&nbsp;&nbsp;&nbsp;&nbsp;19.3 Method of Service

A Notice must be served in one of the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3.1 by hand – by hand to the relevant address specified in Clause 19.6; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3.2 by post – by prepaid UK first-class post to the relevant UK address specified in Clause 19.6; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3.3 by airmail – by prepaid international airmail to the relevant address specified in Clause 19.6; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3.4 by e-mail – to the address specified in Clause 19.6.

&nbsp;&nbsp;&nbsp;&nbsp;19.4 Deemed Delivery

Unless there is evidence that it was received earlier, a Notice is deemed given, as follows, either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.4.1 by hand – upon delivery, if delivered during a Business Day or at the start of the next Business Day, if delivered at any other time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.4.2 by post – at the start of the second Business Day after the date of posting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.4.3 by airmail – at the start of the fourth Business Day after posting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.4.4 by email – at the time of transmission by the sender, if such time is during a Business Day, or at the start of the next Business Day, if delivered at any other time, provided that the sender does not receive a message that the email was unable to be sent.

19.5 In Clause 19.3, "during a Business Day" means any time between 9.30am and 5.30pm on a Business Day based on the local time where the recipient of the Notice is located. References to "the start of [a] Business Day" and "the end of [a] Business Day" shall be construed accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;19.6 Address for Service

Notices shall be addressed as follows:

19.6.1 to the Buyer: [\*\*\*]

Email Address: [\*\*\*]

For the attention of: [\*\*\*]

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with a copy (which shall not constitute notice) to: Ropes & Gray

[\*\*\*]

Email Address: [\*\*\*]

For the attention of: [\*\*\*]

Ropes & Gray International LLP [\*\*\*] Email Address: [\*\*\*]

For the attention of: [\*\*\*]

19.6.2 to the Sellers' Representative: [\*\*\*]

Email Address: [\*\*\*]

For the attention of: [\*\*\*]

with a copy (which shall not constitute notice) to: Osborne Clarke LLP

[\*\*\*]

Email Address: [\*\*\*]

For the attention of: [\*\*\*]

19.6.3 to the Sellers (other than the Fund Sellers) at the addresses that are set out in column (2) of Schedule 1 with a copy (which shall not constitute notice) to:

Osborne Clarke LLP [\*\*\*]

Email Address: [\*\*\*]

For the attention of: [\*\*\*]

19.6.4 to [\*\*\*]: [\*\*\*]

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Email Address: [\*\*\*]

For the attention of: [\*\*\*]

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with a copy (which shall not constitute notice) to: White & Case LLP

[\*\*\*]

Email Address: [\*\*\*]

For the attention of: [\*\*\*]

19.6.5 to [\*\*\*]: [\*\*\*]

Email Address: [\*\*\*]

For the attention of: [\*\*\*]

with a copy (which shall not constitute notice) to: Email Address: [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;19.7 Change of Details

A party may change its address for service provided that, in the case of the Buyer, it gives the Sellers' Representative and, in the case of a Seller and the Company, it gives the Buyer and the Sellers' Representative, such other party prior notice in accordance with this Clause 19. Until the end of such notice period, service on either address shall remain effective.

20. APPLICABLE LAW AND JURISDICTIONS

20.1 This Agreement and the rights and obligations of the parties including all non-contractual obligations arising under or in connection with it shall be governed by English law.

20.2 The parties submit to the exclusive jurisdiction of the Courts of England and Wales to settle any dispute (a "Dispute") arising out of or in connection with this Agreement or any non-contractual obligation arising in connection with this Agreement.

20.3 The parties agree that the Courts of England and Wales are the most appropriate and convenient Courts to settle any Dispute, and, accordingly, that they will not argue to the contrary.

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THE COMPANY, THE SUBSIDIARY AND SANPLENA

Part A

The Company, the Subsidiary and SanPlena

[\*\*\*]

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![gfx215183358_5.gif](gfx215183358_5.gif)

SCHEDULE 1

Part B The Sellers

[\*\*\*]

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

1. Delivery Obligations

COMPLETION OBLIGATIONS

Part A Sellers' Obligations

At Completion, the Sellers shall, and such obligation may be satisfied on their behalf by the Sellers' Representative, deliver to the Buyer or the

Buyer's Solicitors:

1.1 Share Transfers, Statutory Books, and Documents of Title etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) duly executed transfers in the Agreed Form in favour of the Buyer or its nominee(s) in respect of the Shares (the "Stock Transfer Forms"), together with either, the certificates for the Shares or an indemnity for lost share certificate in the Agreed Form (the "Indemnity for Lost Share Certificates");

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SCHEDULE 2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as evidence of the authority of each person executing a document referred to in this Schedule 2 on a Seller's behalf (as applicable), either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a copy of the minutes of a duly held meeting of the directors of each Seller that is a body corporate (as applicable) authorising the execution by such Seller of the document, certified to be a true copy by a director or the secretary of such Seller; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a copy of the power of attorney conferring the authority, certified to be a true copy by a director or the secretary by such Seller;

or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such other evidence to the Buyer's reasonable satisfaction of the authority of any person to sign on behalf of such Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the certificate of incorporation and all certificates of incorporation on change of name, the common seal (if any), the statutory books and other record books of each Target Group Company written up to Completion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) certificates for all of the issued shares of the Subsidiary and SanPlena registered in the name of the Company or the Subsidiary, together with duly executed transfers in favour of the Buyer (or its nominee(s)) in respect of any shares in the Subsidiary or SanPlena that are

not registered in the name of the Company or another of the Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a statement of all of the Target Group's bank accounts and of the credit and debit balances on such accounts as at a date not more than seven days before Completion.

1.2 Resignation Letters and Associated Matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) resignation letters in the Agreed Form executed as deeds by [\*\*\*] and [\*\*\*] as directors of the Company and [\*\*\*] as a director and officer of the Subsidiary, (the "Letters of Resignation") in each case acknowledging that the officer in question has no claim against the Company or the Subsidiary for compensation for loss of office or otherwise;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all credit cards in the name or for the account of the Company or the Subsidiary together with any property in the possession of any officer or employee of the relevant Company resigning at Completion; and

1.3 Agreed Form Documents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Agreed Protocol;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (b) Allocation Schedule Template;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (c) Board Minutes of the Company and the Subsidiary; <u>(c)</u> (d) Bonus Letters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (e) Comfort Letters; (e) (f) Data Room Index; <u>(f)</u> (g) Disclosure Letter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (h) Employment Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) (i) Escrow Agreement executed by the Sellers' Representative; <u>(i)</u> (j) Estimated Completion Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) (k) Imperial Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) (l) Indemnity for Lost Share Certificates; <u>(l)</u> (m) JV Change of Control Consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) (n) JV Operating Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) (o) JV Operating Agreement Amendment; <u>(o)</u> (p) Letters of Resignation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) (q) Loan Note Instrument; (q) (r) Stock Transfer Forms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(r)</u> (s) Synthetic Executive Option Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) (t) Warranty Deed executed by the Warrantors; (t) (u) W&I Policy;

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&nbsp;&nbsp;&nbsp;&nbsp;2. Further Obligations

The Sellers shall ensure, to the extent practicable in their capacity as directors or shareholders, (with the cooperation of the Buyer, as required) that at Completion a meeting of the board of directors of the Company and, as the case may be, each other Target Group Company, is held at which board resolutions in the Agreed Form are passed (prior to the resignations referred to at Paragraph 1.1(a) above taking effect):

&nbsp;&nbsp;&nbsp;&nbsp;2.1 to sanction for registration (subject, where necessary, to due stamping) the transfers in respect of the Shares and any shares referred to in Clause

1.1(a) above;

2.2 to appoint [\*\*\*] to be directors of the Company and [\*\*\*] to be a director and officer of the Subsidiary and accepting the resignations of the directors referred to above;

&nbsp;&nbsp;&nbsp;&nbsp;2.3 to amend all mandates to bankers to reflect the appointments and removals of the directors referred to above;

&nbsp;&nbsp;&nbsp;&nbsp;2.4 to change the registered office of the Company and each other Target Group Company to [\*\*\*].

Part B Buyer's Obligations

Upon compliance by the Sellers with their obligations set out in Part A of this Schedule 2 the Buyer shall:

&nbsp;&nbsp;&nbsp;&nbsp;1. pay to the Paying Agent Bank Account the Completion Payment in accordance with Clause3.9.1;

&nbsp;&nbsp;&nbsp;&nbsp;2. pay to the Escrow Account the Retained Warranty Consideration in accordance with Clause 3.9.2;

3. deliver to the Sellers' Representative or the Sellers' Solicitors: (a) the Escrow Agreement executed by the Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Loan Note Instrument executed by the Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Warranty Deed and Disclosure Letter executed by the Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reasonable evidence of the authority of each person executing a document referred to in this Schedule 2 on the Buyer's behalf.

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SCHEDULE 3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

1. Capacity and Authority of the Sellers

FUNDAMENTAL TITLE WARRANTIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

1.1 Each Seller has full power and authority (without requiring the consent of any other person) and has taken all necessary corporate (or other) actions, to enter into and exercise its rights and perform its obligations to enter into this Agreement and (to the extent such Seller is a Warrantor) the Warranty Deed.

1.2 This Agreement and each of the Transaction Documents that are to be entered into by each of the Sellers will, when executed, constitute lawful, valid and binding obligations of such Seller in accordance with their respective terms.

1.3 The execution and delivery of this Agreement and (to the extent such Seller is a Warrantor) the Warranty Deed and the performance of and compliance with their respective terms and provisions by a Seller will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conflict with or result in a breach of, or constitute a default under, the Articles or any agreement or instrument to which such Seller is a party or by which such Seller is bound; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) conflict with or result in a breach of any law, regulation, order, writ, injunction or decree of any court or agency by which such Seller is bound.

1.4 Each Seller is not a party to any agreement or bound by any obligation, the terms of which will prevent the Buyer from enjoying the full benefit of this Agreement.

1.5 Each Seller is not subject to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an order for the winding up, administration, bankruptcy of or for a provisional liquidator or equivalent officer in its relevant jurisdiction and no petition has been presented for the purpose of winding up or bankruptcy of such Seller (or notice of intention so to appoint filed in court);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a receiver (which expression will include an administrative receiver or equivalent or analogous officer in its relevant jurisdiction)

appointed in respect of all or any material part of such Seller's assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a voluntary arrangement and no such arrangement has been proposed under section 1 of the Insolvency Act 1986 (or equivalent law in its relevant jurisdiction).

2. The Shares and Share Capital

2.1 Each Seller is the legal and beneficial owner of the Shares set out opposite such Seller's name in Part B of Schedule 1 and such Shares are free from all Encumbrances or any agreement, arrangement or obligation to create any of the same, in favour of any other person (other than at Completion).

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3. Commission and Finder's Fee

3.1 No Seller is entitled to receive from any Target Group Company any finder's fee, brokerage or other commission in connection with the purchase of the Shares and the other transactions contemplated by this Agreement or the Transaction Documents.

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![gfx215183358_5.gif](gfx215183358_5.gif)

SCHEDULE 4

LIMITATIONS ON LIABILITY

1. Monetary Limits on Claims

1.1 Subject to 2.4 below, the total aggregate liability of each Seller:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for all Fundamental Title Warranty Claims shall not exceed an amount equal to the amounts paid (which shall be deemed to include any amounts which have been, or but for the provisions of this paragraph 1.1(a) would have been, set-off and retained by the Buyer in accordance with Clause 14) to that Seller pursuant to this Agreement, and the Buyer's rights of recovery (if any) shall be, at the sole discretion of the Buyer, either: (i) against each of the relevant of the Sellers directly pursuant to this Agreement (including but not limited to the set-off procedure set out in Clause 14); or (ii) pursuant to the W&I Policy, provided that the election of either (i) or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall not limit the ability to bring a claim in respect of the other;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for all Fundamental Business Warranty Claims, all Tax Warranty Claims or Tax Covenant Claims:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in respect of any such claims that are not an Uninsured Claim, shall not exceed the amount of US$1.00, and the Buyer's sole right of recovery (if any) in excess of such US$1.00 cap on liability shall be pursuant to the W&I Policy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in respect of any such claims that are an Uninsured Claim, shall not exceed an amount equal to the Seller's Proportionate Share of the Maximum Uninsured Liability Amount, and the Buyer's right of recovery (if any) shall be; (i) if on or before the Retained Warranty Consideration Payment Date against the Retained Warranty Consideration, or (ii) if after the Retained Warranty Consideration Payment Date directly against the Sellers pursuant to the set-off procedure set out in Clause 14;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) for all Claims:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in respect of any Claims that are not an Uninsured Claim, shall not exceed the amount of US$1.00, and the Buyer's sole right of recovery (if any) in excess of the US$1.00 cap on liability shall be under the W&I Policy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in respect of any Claims that are an Uninsured Claim, shall not exceed an amount equal to the Seller's Proportionate Share of the Maximum Uninsured Liability Amount, and the Buyer's sole right of recovery (if any) in excess of the coverage under the W&I Policy shall be directly against the Sellers pursuant to the set-off procedure set out in Clause 14.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

![gfx215183358_6.gif](gfx215183358_6.gif)

(d)![gfx215183358_7.gif](gfx215183358_7.gif)

for any other claim against the Sellers pursuant to this Agreement or the Warranty Deed not otherwise captured in paragraphs 1.1(a) to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) above, shall not exceed an amount equal to the amounts paid to that Seller pursuant to this Agreement (which shall be deemed to include any amounts which have been or, but for the provisions of this paragraph 1.1(d) would have been, set-off and retained by the Buyer in accordance with Clause 14), and the Buyer's rights of recovery (if any) shall be against each of the Sellers directly pursuant to the set-off procedure set out in Clause 14, and/or directly against the relevant Seller in respect of an Executive Tax Indemnity Claim.

1.2 The Sellers shall not be liable in respect of a Claim unless and until the aggregate amount of all Claims against the Sellers exceeds US$ [\*\*\*] (including interest, costs, fines, penalties and surcharges) (the "Threshold"), in which event the Sellers' liability shall be for the total amount of all Claims and shall not be limited to the amount in excess of the Threshold.

1.3 The Sellers shall not be liable in respect of a Claim unless the amount of such Claim exceeds US$ [\*\*\*] (including interest, costs, fines, penalties and surcharges).

1.4 For the purposes of calculating the Claims that count towards the Threshold, there shall be included in any Claim the amount of any costs, expenses and other liabilities incurred by the Buyer and any Target Group Company in connection with the making of any such Claim.

1.5 Without prejudice to any other provision of the Transaction Documents or this Schedule 4, the aggregate liability of each of the Sellers (whether in such capacity or in the capacity of Warrantor or otherwise) in respect of any claim under this Agreement and/or the Warranty Deed and/or any other Transaction Document (including any Claim, Fundamental Warranty Claim, Tax Warranty Claim or Tax Covenant Claim) shall not in aggregate exceed the amount of Consideration paid (which shall be deemed to include any amounts which have been, or but for the provisions of this paragraph 1.5 would have been, set-off and retained by the Buyer in accordance with Clause 14) to that Seller in cleared funds in accordance with this Agreement.

1.6 All provisions of paragraphs 1.1 and 1.2 of this Schedule 4 are subject to any adjustment specifically provided for in paragraph 3.2 of Schedule 3 of the Warranty Deed.

2. Time Limits for Claims

2.1 The Sellers shall not be liable in respect of a claim under the Warranties and Tax Covenant unless written Notice of such claim is served upon the

Sellers' Representative (who shall promptly notify the Fund Sellers):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of a Fundamental Warranty Claim on or before the date [\*\*\*] after the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of a Claim which is not a Tax Warranty Claim or Tax Covenant Claim on or before the date [\*\*\*] after the date of this

Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the case of a Tax Warranty Claim or Tax Covenant Claim (other than an Executive Tax Indemnity Claim) on or before the date [\*\*\*]

after the date of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in the case of an Executive Tax Indemnity Claim on or before the later of the date [\*\*\*] after the date of this Agreement and the date

[\*\*\*] after the date of the payment triggering the relevant Executive Tax Amount.

2.2 The Notice shall provide reasonable details (to the extent that such details are known to the Buyer) of the nature of any Claim, the circumstances that have given rise to it and, if practicable, the amount claimed (provided that any failure by the Buyer to provide any of such details shall not prejudice the Claim in question).

2.3 Following the giving of Notice under Paragraph 2.1(b), either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) where the Claim arises by reason of a liability of the Buyer or a member of the Target Group, that at the time of service of the notice, is contingent only or otherwise not capable of being quantified, the liability of the Sellers shall determine, if legal proceedings in respect of such Claim have not been commenced within [\*\*\*] of such Claim ceasing to be contingent or becoming capable of being quantified; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where the Claim does not fall within Paragraph 2.3(a) above, the liability of the Sellers shall determine, if legal proceedings have not been commenced within [\*\*\*] of the service of such notice.

2.4 Nothing in this Schedule 4 shall have the effect of limiting or restricting any liability for any Seller in respect of a claim pursuant to this Agreement, the Warranty Deed or the Transaction Documents to the extent such liability results from fraud, fraudulent misrepresentation, deliberate non-disclosure or wilful concealment.

3. Double Claims

If the same fact, subject matter, event or circumstance gives rise to more than one claim for breach of any Warranties, a claim under the Tax Covenant or to a claim under this Agreement, the Warranty Deed, or any other Transaction Document, the Buyer shall not be entitled to recover more than once in respect of such fact, subject matter, event or circumstance.

4. Changes and/or after Completion

The Sellers shall not be liable for any Claim or to the extent that it arises, or is increased or extended by:

4.1 any change to legislation, any increase in rates of Taxation or any change in the published practice of a Tax Authority, in each case made on or after Completion with retrospective effect;

4.2 any change in the accounting reference date of the Buyer or any Target Group Company made on or after Completion;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

![gfx215183358_1.gif](gfx215183358_1.gif)

4.3![gfx215183358_8.gif](gfx215183358_8.gif)

any act or omission of the Buyer (or any persons deriving title from it) or the Target Group after Completion, save where such act or omission of

the Buyer is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) pursuant to a legally binding obligation entered into by Target Group prior to Completion; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in order to comply with any Applicable Law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) at the written request of, or with the written consent of, the Sellers' Representative in consultation with the Fund Sellers;

4.4 the subject matter of the Claim gives rise to a corresponding benefit of any kind;

4.5 it would not have arisen or would have been reduced or eliminated but for any claim, election, surrender or disclaimer made or notice or consent given or any other thing done after Completion by the Company or any other Target Group Company or the Buyer or any person connected with them;

4.6 any diminution in the value of any Target Group Company arises or is increased as a result of or in or connection with any delay or failure to deal with any matter in a proper and efficient manner at the time when such facts became known or reasonably ought to have become known to the Buyer or any of its officers; or

4.7 any change in any accounting policy or practice of any Target Group Company made on or after Completion, save where such change is required to conform such policy or practice with relevant accounting standards, or where such change is necessary to correct an improper policy or practice.

5. Reimbursement of Claims

If, after the Sellers have made any payment in respect of a Claim or a Fundamental Business Warranty Claim, the Buyer recovers from a third party a cash sum that is directly referable to that payment (the "Recovery Amount"), then the Buyer shall forthwith repay (or procure the repayment of) to the Sellers so much of the Recovery Amount (less all reasonable costs, charges and expenses incurred in making such recovery) as does not exceed the sum paid by the Sellers.

6. Disclosure

The Sellers shall not be liable for any Claim, Fundamental Business Warranty Claim (other than as set out in paragraphs 1 and 2 of Schedule 2 of the Warranty Deed) and Tax Warranty Claim if, and to the extent that, the fact, matter, circumstance or event giving rise to such Claim, Fundamental Business Warranty Claim and Tax Warranty Claim has been Disclosed in the Disclosure Letter.

7. Mitigation

The Buyer and any other member of the Buyer's Group will take or otherwise procure that reasonable steps are taken to avoid or mitigate any Losses which it and/or they may suffer in consequence of the fact(s) or matter(s) giving rise to any claim, other than in respect of the Tax Covenant which shall be governed by the terms set out therein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

![gfx215183358_1.gif](gfx215183358_1.gif)

4.3![gfx215183358_8.gif](gfx215183358_8.gif)

any act or omission of the Buyer (or any persons deriving title from it) or the Target Group after Completion, save where such act or omission of

SCHEDULE 5

CONTINGENT CONSIDERATION

1. Definitions

1.1 In this Schedule 5, the following words and expressions have the following meanings. Capitalized terms used in this Schedule 5 but not defined herein have the meaning set forth in the Agreement.

"Agreed Protocol" means the clinical trial protocol of Imperial College at the date of this Agreement, as set out in Folder 3.Technical (ZHP-GLP06) (Regulatory Submission) (2.GLP06 GNA CLEAN) of the Data Room, which has received a positive Review Board opinion and been approved by the relevant Governmental Authority;

"Calendar Year" means a consecutive period of twelve months commencing on January 1 and ending on December 31;

"Change of Control" means a transaction or series of transactions pursuant to which a person or connected persons acquire, directly or directly, a majority of the voting rights of the Buyer or any of its Affiliates;

"Combination Product" means [\*\*\*];

"Commercial Milestone Event" has the meaning set out in Paragraph 2.4; "Commercial Milestone Payment" has the meaning set out in Paragraph 2.4;

"Commercialize" means the marketing, advertising, promotion, distribution, or sale of any Product;

"Commercially Reasonable Efforts" means[\*\*\*] Commercially Reasonable Efforts will be determined on an indication-by-indication basis for the applicable Company Product, and it is anticipated that the level of effort will change over time, reflecting changes in the status of such Company Product and the market or country involved. The Sellers expressly understand and accept that the use of Commercially Reasonable Efforts may result in Buyer ceasing the development or commercialization of a Company Product (in whole or in part), and that once development or commercialization for a Company Product has ceased in compliance with this Agreement, Commercially Reasonable Efforts does not require the continued re-evaluation of whether development or commercialization must be re-initiated for such Company Product;

"Cover" means, with respect to a product, technology, process, method, or mode of administration that, in the absence of ownership of or a license granted under a particular Patent Right, the manufacture, use, offer for sale, sale, or importation of such product or the practice of such technology, process, method, or mode of administration would infringe such Patent Right or, in the case of a patent application that has not yet issued, would infringe such claim if it were to issue without change.

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"Development Milestone Events" has the meaning set out in Paragraph 2.2; "Development Milestone Payments" has the meaning set out in Paragraph 2.2;

"FFDCA" means the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., as amended from time to time, together with any rules, regulations and requirements promulgated thereunder (including all additions, supplements, extensions, and modifications thereto);

"First Commercial Sale" means, on a Company Product-by-Company Product basis, the first applicable sale of a given Company Product under this Schedule 5 by the Buyer, its Affiliates, or its or their Licensees to either (a) a distributor for onward sale or (b) a healthcare institution for prescription to an end user for use, consumption, or resale of such product where Regulatory Approval and any necessary reimbursement approval of the product has been obtained and where the sale results in a recordable Net Sale, including named patient sales or expanded access program sales for commercial use. "First Commercial Sale" will not include: (a) any distribution or other sale of investigational new drugs, compassionate or emergency use sales, or pre-Regulatory Approval sales made for non-commercial, compassionate purposes (or the like) or other similar non-commercial uses or sales, or named patient sales or expanded access program sales for non-commercial use; or (b) sale of a Company Product by the Buyer to an Affiliate or a Licensee of the Buyer, unless such Affiliate or such Licensee is the end user of such Company Product and such sale results in a Net Sale;

"First FDA Approval Milestone" has the meaning as defined in Table 2.3;

"First FDA Filing Acceptance Milestone" has the meaning as defined in Table 2.3;

"GAAP" as used in this Schedule 5 means United States generally accepted accounting principles, which principles are currently used at the relevant time and consistently applied by the applicable party;

"GIP Receptor" means the member of the class B family of G protein coupled receptors that in humans is encoded by the GIPR gene that serves as the receptor for the hormone gastric inhibitory polypeptide (GIP);

"Gross JV Receipt" and "Gross JV Receipts" have the meaning set out in Paragraph 2.5(a). "Lead Product Phase I MAD Study" means [\*\*\*];

"Lead Product Phase I SAD Study" means [\*\*\*]; "Lead Product Phase I Studies" <u>means</u> [\*\*\*]; "Lead Product Phase II Study" means [\*\*\*];

"License" and "Licensee" have the meaning set out in the definition of Non-Royalty License Income;

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"MAA" or "Marketing Authorization Application" means any: (a) Biologics License Application submitted under Section 351(a) of the PHSA; (b) New Drug Application as defined in the FFDCA; (c) a marketing authorization application submitted to the EMA pursuant to the centralized approval procedure; (d) a marketing authorization application submitted to the applicable Regulatory Authority of a country in the EU/EEA with respect to the mutual recognition or any other national procedure; (e) a marketing authorization application submitted to the MHRA; or (f) substantially similar application or submission to those set out in clauses (a) to (e) filed with a Regulatory Authority in a country or group of countries to obtain Regulatory Approval to commercialize a biopharmaceutical or diagnostic product in that country or in that group of countries in each case ((a) through (e)), including any amendments thereto, and supplemental applications;

"Medicare" means Medicare (Title XVIII of the Social Security Act);

"Medicare Reimbursement Milestone" has the meaning as defined in Table 2.3;

"Milestone Events" means the Development Milestone Events, the Regulatory Milestone Events and the Commercial Milestone Events; "Milestone Payments" means the Development Milestone Payments, the Regulatory Milestone Payments, and the Commercial Milestone

Payments (if applicable);

"Net JV Consideration Amount" and "Net JV Consideration Amounts" have the meaning set out in Paragraph 2.5(a). "Net Receipts Payments" has the meaning set out in Paragraph 3.2 of this Schedule 5;

"Net Sales" means with respect to a Company Product, [\*\*\*]

Such amounts will be determined consistent with a Selling Party's customary practices and in accordance with GAAP. It is understood that any accruals for individual items reflected in Net Sales are periodically (at least quarterly) trued up and adjusted by each Selling Party consistent with its customary practices and in accordance with GAAP.

Notwithstanding any provision to the contrary set forth in this Agreement, [\*\*\*] "Net Sales Term" means, [\*\*\*];

"Non-Obesity Regulatory Milestones" has the meaning as defined in Table 2.3;

"Non-Royalty License Income" means payments received by the Buyer or its Affiliates from a Third Party to whom Buyer or any of its

Affiliates [\*\*\*]

"Obesity" means a medical condition in which an individual has a body mass index (BMI)—a person's weight divided by the square of the person's height— over 30 kg/m2;

"Other Component" has the meaning set out in the definition of Combination Product;

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"Other Product Phase I Development Milestones" has the meaning as defined in Table 2.2; "Other Products Cap" has the meaning as defined in Paragraph 2.2(e) of this Schedule 5 "Phase I MAD Development Milestone" has the meaning as defined in Table 2.2;

"Phase I SAD Development Milestone" has the meaning as defined in Table 2.2;

"Phase I Study" means the first testing in humans, whether healthy volunteers or patients, of a pharmaceutical or biological investigational medicinal product conducted under a valid and effective investigational new drug application ("IND") or comparable foreign regulatory authorization, with the primary objective of determining the safety, metabolism, pharmacokinetic properties, clinical pharmacology, side effects, dose and dosing schedule of such product, and secondary objective of gaining early evidence of effectiveness, in a manner that is generally consistent with 21 C.F.R. § 312.21(a), as amended (or its successor regulation), or, with respect to any other country or region, the equivalent of such a clinical trial in such other country or region. Notwithstanding anything to the contrary set forth in this Agreement, treatment of patients as part of an expanded access program, compassionate sales or use program (including named patient program or single patient program), or an indigent program, in each case, will not be included in determining whether or not a clinical trial is a Phase I Study or whether a patient has been dosed thereunder;

"Phase II Study" means a clinical trial in humans that is intended to explore the feasibility, safety, dose ranging, or efficacy of a pharmaceutical biological investigational medicinal product conducted under a valid and effective IND or comparable foreign regulatory authorization that is prospectively designed to generate sufficient data (if successful) to commence a Phase III Study for such product, in a manner that meets the requirements of 21 C.F.R. § 312.21(b), as amended (or its successor regulation), or, with respect to any other country or region, the equivalent of such a clinical trial in such other country or region. Notwithstanding anything to the contrary set forth in this Agreement, treatment of patients as part of an expanded access program, compassionate sales or use program (including named patient program or single patient program), or an indigent program, in each case, will not be included in determining whether or not a clinical trial is a Phase II Study or whether a patient has

been dosed thereunder;

"Phase III Study" means a clinical trial in humans of a pharmaceutical or biological investigational medicinal product conducted under a valid and effective IND or comparable foreign regulatory authorization that is performed after preliminary evidence of efficacy has been generated for a particular indication(s) in patients with the disease or condition for which the product is intended, to gain evidence with statistical significance of the efficacy of such product for such indication(s), and to obtain expanded evidence with statistical significance of the efficacy of such

product that is needed to evaluate the overall benefit-risk relationship of such product, to form the basis for approval of a MAA by a Governmental Authority, and to provide an adequate basis for physician labelling, in a manner generally consistent with 21 C.F.R. § 312.21(c), as amended (or its successor regulation), or with respect to any other

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country or region, the equivalent of such clinical trial in such other country or region. Notwithstanding anything to the contrary set forth in this Agreement, treatment of patients as part of an expanded access program, compassionate sales or use program (including named patient program or single patient program), or an indigent program, in each case, will not be included in determining whether or not a clinical trial is a Phase III Study or whether a patient has been dosed thereunder;

"Phase III Development Milestones" has the meaning as defined in Table 2.2;

"PHSA" means the Public Health Service Act, 42 U.S.C. § 201 et seq., as amended from time to time, together with any rules, regulations and requirements promulgated thereunder (including all additions, supplements, extensions, and modifications thereto);

"Pivotal Phase III Study" means a Phase III Study designed to demonstrate the investigational medicinal product's safety and efficacy in terms of its specific use within a specific patient population, the results of which are reasonably expected to be sufficient to obtain Regulatory Approval for the medicinal product in question;

"PK and Safety Data" means data concerning the relevant investigational medicinal product's pharmacokinetics and safety data;

"Regulatory Approval" means, with respect to a particular country or other regulatory jurisdiction, any approval of an MAA or other approval, product, or establishment license, registration, listing or authorization required by applicable law for the commercial sale of a pharmaceutical, diagnostic, or biologic product in such country or other regulatory jurisdiction, excluding any decisions regarding pricing or reimbursement;

"Regulatory Authority" means, in a particular country or jurisdiction, any applicable Governmental Authority involved in granting Regulatory Approval in such country or jurisdiction, including the FDA, European Commission and EMA, MHRA and any other applicable Governmental Authority involved in granting Regulatory Approval;

"Regulatory Milestone Event" has the meaning set out in Paragraph 2.3; "Regulatory Milestone Payment" has the meaning set out in Paragraph 2.3; "Selling Party" has the meaning set out in the definition of Net Sales;

"Subsequent FDA Approval Milestones" has the meaning as defined in Table 2.3; "Territory" means worldwide; and

"Valid Claim" means, with respect to a particular country, (a) a claim of any issued and unexpired patent in such country whose validity, enforceability, or patentability has not been terminated by any of the following: (i) irretrievable lapse, abandonment, revocation, dedication to

the public, or disclaimer; or (ii) a holding, finding, or decision of invalidity, unenforceability, or non-patentability, from which decision no appeal can be further taken, or (b) a claim within a patent application in such country that has not been pending for more than [\*\*\*] from the earliest

date to which such claim or the applicable patent application is entitled to claim priority and which claim has not been revoked, cancelled, withdrawn, held invalid, or abandoned.

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&nbsp;&nbsp;&nbsp;&nbsp;2. Milestone Payments.

&nbsp;&nbsp;&nbsp;&nbsp;2.1 Overview

(a) The Buyer shall use Commercially Reasonable Efforts to achieve: (i) the Development Milestone Events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Regulatory Milestone Events; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Commercial Milestone Event,

in respect of (i) the Lead Product and (ii) either the Second Product or one Other Product (as determined in Buyer's sole discretion), in each case in respect of Obesity only, and excluding the Non-Obesity Regulatory Milestones.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as expressly set forth herein, for the purposes of determining whether any Milestone Payment is payable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in respect of a Milestone Event, the applicable Milestone Payment shall only be payable once on the first occurrence of such applicable Milestone Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in respect of a Company Product that contains a combination of two or more Company Peptides, then such Milestone Payment shall only be paid once in respect of each particular combination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in respect of any Combination Product that contains the same single Company Peptide or combination of Company Peptides as any Company Product that is not a Combination Product, then such Milestone Payment shall only be paid once in respect of each particular Company Peptide or combination of Company Peptides.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Exhibit A to this Schedule 5 contains worked examples of the Milestone Payments payable in respect of Company Products under this

Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;2.2 Development Milestones

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Buyer will pay to the Sellers the milestone payments set out in Table 2.2, in each case, less any applicable Contingent Consideration Deductions (the "Development Milestone Payments"), in accordance with the procedure set out in Paragraph 4 (Payments and Reports), upon the first achievement (subject to Paragraph 2.2(c)) of the corresponding milestone event set out in Table 2.2 (the "Development Milestone Events") by the Buyer or its Affiliates or its or their Licensees.

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(b) The parties acknowledge and agree that the maximum aggregate amount payable to the Sellers pursuant to this Paragraph 2.2 (Development Milestones) (subject to Paragraph 2.2(c)), excluding the Phase III Development Milestones, will not exceed fifty-two million, five hundred thousand United States Dollars (US$52,500,000).

(c) The Other Product Phase I Development Milestones (subject to the Other Products Cap) and the Phase III Development Milestones may be paid more than once (but only once with respect to any particular Other Product), otherwise all other Development Milestone Payments shall be paid only once.

TABLE 2.2: Development Milestones

<u>Development Milestone Event</u> <u>Development Milestone Payment</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [\*\*\*] US$ [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. [\*\*\*] US$ [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. [\*\*\*] US$ [\*\*\*]

4. [\*\*\*] [\*\*\*] in respect of each occurrence, subject to the Other Products Cap; and

[\*\*\*] in respect of each occurrence, subject to the Other Products Cap

5. [\*\*\*] For the avoidance of doubt the Phase III Development Milestone is not subject to a maximum or minimum number of Company Products for which it is payable, nor is there an estimate which can vary

up and down. US$27,500,000 (d) If the results required to trigger the [\*\*\*].

(e) The maximum aggregate amount payable in respect of the [\*\*\*] (the "Other Products Cap"). No further amounts shall be payable in excess of the Other Products Cap [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to Paragraph 2.2(e), for the purposes of determining whether multiple Milestone Payments are payable in respect of the [\*\*\*]. <u>(g)</u> <u>Subject to Paragraph 2.2(e), only for the purposes of determining whether [\*\*\*] has been achieved, [\*\*\*].</u>

&nbsp;&nbsp;&nbsp;&nbsp;(h) For the avoidance of doubt, in [\*\*].

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&nbsp;&nbsp;&nbsp;&nbsp;2.3 Regulatory Milestones

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Buyer will pay to the Sellers the milestone payments set out in Table 2.3, in each case, less any applicable Contingent Consideration Deductions (the "Regulatory Milestone Payments"), in accordance with the procedure set out in Paragraph 4 (Payments and Reports), upon the first achievement (subject to Paragraph 2.3(b)) of the corresponding milestone event set out in Table 2.3 (the "Regulatory Milestone Events") by the Buyer or its Affiliates or its or their Licensees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Subsequent FDA Approval Milestones and the Non-Obesity Regulatory Milestones may be paid more than once, otherwise all other Regulatory Milestone Payments shall be paid only once.

TABLE 2.3: Regulatory Milestones

Regulatory Milestone Event Regulatory Milestone Payment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [\*\*\*] US$ [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. [\*\*\*] US$ [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. [\*\*\*] US$ [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. [\*\*\*], provided that such [\*\*\*] occurs not later than fifteen (15) years following Completion [\*\*\*] For the avoidance of doubt the Subsequent FDA Approval Milestone is not subject to a maximum or minimum number of Company Products for which it is payable, nor

is there an estimate which can vary up and down. US$30,000,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. [\*\*\*] provided that such Regulatory Approval occurs not later than fifteen (15) years following Completion [\*\*\*] For the avoidance of doubt the Non-Obesity Regulatory Milestone is not subject to a maximum or minimum number of Company Products for which it is payable, nor

is there an estimate which can vary up and down. US$10,000,000 (c) The Buyer shall not be required to use Commercially Reasonable Efforts in respect of [\*\*\*].

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&nbsp;&nbsp;&nbsp;&nbsp;2.4 Commercial Milestone

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Buyer will pay to the Sellers US$5,000,000 upon the First Commercial Sale of each Company Product in the United States of America (a "Commercial Milestone Event"), in each case less any applicable Contingent Consideration Deductions (the "Commercial Milestone Payments"), in accordance with the procedure set out in Paragraph 4 (Payments and Reports), upon the first achievement of such event by the Buyer or its Affiliates. For the avoidance of doubt the First Commercial Sale of each Company Product Milestone is not subject to a maximum or minimum number of Company Products for which it is payable, nor is there an estimate which can vary up and down.

&nbsp;&nbsp;&nbsp;&nbsp;2.5 JV Milestone

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Paragraphs 2.5(b) and 2.5(c) of this Schedule 5, in respect of each Calendar Year ending on or after Completion the Buyer will pay to the Sellers on the relevant Annual JV Payment Date an amount equal to the total royalties, milestones, dividends, proceeds of sale of units or other interests and other irrevocable consideration payments (but excluding any intra-group payments or repayments of liabilities) received by the Subsidiary or the Company from SanPlena or, in the case of the sale of units or other interests in

SanPlena, from the buyer of those units or other interests in the course of such Calendar Year (each amount received being a "Gross JV Receipt" and together the "Gross JV Receipts")) less:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Tax incurred or that will be incurred as a result of or otherwise in respect of the receipt by the Subsidiary or the Company of a Gross JV Receipt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any withholding or deduction on account of Tax incurred by SanPlena on the payment of a Gross JV Receipt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) where a Gross JV Receipt is passed or otherwise conveyed or transferred, by whatever means and whether directly or through the group structure, including by way of dividend distribution of distributable reserves directly attributable to the Gross JV Receipt, to the Buyer (and a reference to "passed" or "passing" in this Paragraph 2.5 shall be construed accordingly) in the Calendar Year in which it is received, any Tax, including any withholding or deduction on account of Tax, incurred or that will be incurred by SanPlena, the Company or the Subsidiary on the passing of the Gross JV Payment to the Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) where a Gross JV Receipt has not been passed to the Buyer or has been passed to the Buyer by way of loan, in each case by the end of the Calendar Year in which it is received, a reasonable estimate of the Tax that will be incurred, including any withholding or deduction on account of Tax, on the passing, whether in that Calendar Year or in future, of that Gross JV Receipt to the Buyer,

and for the purposes of each of Paragraphs 2.5 (a)(i) to (iv) above all amounts of Tax shall be calculated ignoring the availability of any Relief of the Subsidiary, the Company and/or the Buyer;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any royalties or other amounts payable to IP2IPO Innovations Limited in connection with such milestone, royalty and other payments received by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any deduction under Paragraph 2.5(e).

(each a "Net JV Consideration Amount" and all the "Net JV Consideration Amounts").

(b) Each payment under Paragraph 2.5(a), 2.5(c) or 2.5(d) shall be due and payable by the Buyer on the date [\*\*\*] following the end of the relevant Calendar Year (the "Annual JV Payment Date"), where the relevant Calendar Year shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of any Net JV Consideration Amount payable under Paragraph 2.5(a), the Calendar Year in which Gross JV Receipts are received from SanPlena by the Subsidiary or the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of an amount under Paragraph 2.5(d), the Calendar Year in which in which the Tax amount is finally determined (and for the avoidance of doubt not the Calendar Year in respect of which such Tax arose); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of an amount under Paragraph 2.5(c), the Calendar Year in which such refund or repayment is received from the Tax

Authority or such Tax liability would have been payable to the Tax Authority but for the availability of such Tax credit;

(the aggregate amount, if any, payable by the Buyer under Paragraphs 2.5(a), 2.5(c) and 2.5(d) on a given Annual JV Payment

Date being the "Annual JV Payment").

(c) Where Tax which was taken into account by reducing a Net JV Consideration Amount payable under Paragraph 2.5(a) is subsequently repaid or refunded to, or credited against a cash Tax liability of (other than any liability in respect of which a Tax Covenant Claim or Tax Warranty Claim arises, or would arise but for the W&I Policy), the Buyer or any member of the Buyer's Group (in each case at no cost to any Buyer's Group Company), then the Buyer shall pay the Sellers an amount equal to such repaid, refunded or saved Tax.

&nbsp;&nbsp;&nbsp;&nbsp;(d) The Buyer shall make a further payment to the Sellers equal to the difference, if any, between any amount deducted under Paragraph

2.5(a)(iv) on account of estimated Tax and the actual Tax liability due and payable with respect to such Tax determined after filing the requisite Tax returns.

(e) The Buyer may make a further deduction against any payment arising under Paragraph 2.5(a) equal to the difference, if any, between any amounts previously deducted under Paragraph 2.5(a)(iv) on account of Tax and the actual Tax (if greater) due and payable determined after filing the requisite Tax returns.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Buyer shall keep the Sellers' Representative reasonably informed in writing of the basis of the determination of the Tax pursuant to Paragraphs 2.5(a) (i) to (iii), the proposals in relation to passing the Gross JV Receipt to the Buyer, the actual Tax that will arise and any material repayment/credit arising in respect of Tax that has been deducted under Paragraph 2.5(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Buyer's rights, obligations and liabilities under each of Paragraphs 2.5(c), 2.5(d), 2.5(e) and 2.5(f) are limited to, and shall terminate on the expiry of, the period of [\*\*\*] following the payment of the underlying Net JV Consideration Amount to which such right or liability relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Buyer shall not be obliged to make an Annual JV Payment unless it [\*\*\*] (i) The JV Milestone Payments shall be payable to the Sellers as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [\*\*\*] shall be paid to the Sellers in their entirety; (ii) [\*\*\*] shall be paid to the Sellers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The total amount of JV Milestone Payments payable to the Sellers under this Paragraph 2.5 shall not, in aggregate, exceed thirty-five million United States Dollars (US$35,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Buyer shall not, and shall procure that the Company and the Subsidiary shall not, take any steps (i), prior to the valid execution of the JV Operating Agreement Amendment, for the primary purpose of or with the sole intention to materially breach or (ii), following the valid execution of the JV Operating Agreement Amendment, that would result in a material breach the terms of the JV Licence Agreement or the JV Operating Agreement. For clarity, the foregoing will not limit the Buyer's, the Company's or Zihipp. Inc.'s exercise of their respective rights of termination, amendment, assignment, buy-out, dissolution of SanPlena, or otherwise, under the JV License Agreement or the JV Operating Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;3. Net Sales Payments and Net Receipts Payments

&nbsp;&nbsp;&nbsp;&nbsp;3.1 Net Sales Payments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms of this Agreement, including any deductions permitted pursuant to Paragraph 6.1 of this Schedule 5, the Buyer will pay to the Sellers tiered payments on aggregate, [\*\*\*] in accordance with the procedure set out in Paragraph 4 (Payments and Reports):

TABLE 3.1: Net Sales Rates

Annual Net Sales

Payment

Rates

[\*\*\*] [\*\*\*]% [\*\*\*] [\*\*\*]% [\*\*\*] [\*\*\*]%

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For example, [\*\*\*]

3.2 Net Receipts Payments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms of this Agreement, the Buyer will pay to the Sellers, [\*\*\*] (the "Net Receipts Payments") of the applicable Company Products in the Territory in a Calendar Year during the applicable Net Sales Term at the applicable rates set out in Table 3.2 (Non-Royalty License Income):

TABLE 3.2: Non-Royalty License Income

Time of grant of applicable License

% of Non-Royalty

License Income

[\*\*\*] [\*\*\*]% [\*\*\*] [\*\*\*]% [\*\*\*] [\*\*\*]%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Buyer or any of its Affiliates receives any Non-Royalty License Income from a Licensee in connection with the achievement of any Milestone Event set out herein or any event that is substantially the same as such Milestone Event, [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;4. Payments and Reports

&nbsp;&nbsp;&nbsp;&nbsp;4.1 The Buyer will provide the Sellers' Representative with prompt written notice (who shall promptly notify the Fund Sellers) (a "Payment

Notice"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) upon the achievement of any of the Development Milestone Events set out in Paragraph 2.2 (Development Milestones); (b) upon the achievement of any of the Regulatory Milestone Events set out in Paragraph 2.3 (Regulatory Milestones);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) upon the achievement of any of the Commercial Milestone Events set out in Paragraph 2.4 (Commercial Milestone); (d) upon receipt of any Non-Royalty License Income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in respect of any Net Sales Payments due, no later than [\*\*\*] after the end of each Calendar Year to which they relate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) in respect of any Annual JV Payment no later than [\*\*\*] after the end of the relevant Calendar Year.

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4.2 The Payment Notice shall set out (as applicable): (a) the corresponding Milestone Payments; (b) any Net Receipts Payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Net Sales Payments; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Annual JV Payment,

due to the Sellers in accordance with this Agreement, and in respect of the Net Receipts Payments and the Net Sales Payments the Payment

Notice shall contain the information set out in Paragraphs 4.8 and 4.9 respectively.

4.3 Except as otherwise provided for in this Agreement (including in respect of the [\*\*\*]), the Buyer shall pay or issue Loan Notes in respect of, as the case may be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Milestone Payments no later than [\*\*\*] after delivery of the relevant Payment Notice; (other than the Milestone Payments in respect of the [\*\*\*] or the [\*\*\*], which the Buyer shall pay or issue Loan Notes in respect of, as the case may be, no later than [\*\*\*] after delivery of the relevant Final Allocation Schedule in accordance with Clause 5.3);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Net Receipts Payments no later than [\*\*\*] after delivery of the relevant Payment Notice; (c) any Net Sales Payments no later than [\*\*\*] after the end of the applicable Calendar Year; and (d) the Annual JV Payment on the Annual JV Payment Date,

or, if later, the Buyer shall pay or issue Loan Notes in respect of, as the case may be, any such amounts following any withholding by the Buyer

and subsequent release pursuant to Clause 14 (Set-Off).

4.4 The Buyer will calculate the Net Sales Payments payable to the Sellers pursuant to Paragraph 3.1 at the end of each Calendar Year and deliver a Payment Notice in accordance with Paragraphs 4.1, 4.8 and 4.9; except that if, in any Calendar Year, no Net Sales Payments are due, then no such notice will be due.

4.5 The Sellers' Representative shall deliver to the Buyer a Draft Allocation Schedule in accordance with Clause 5 of this Agreement relating to the allocation of any amounts payable to the Sellers pursuant to the Payment Notice delivered by the Buyer under Paragraph 5.1.Clause 5.1, and, in the event that any Draft Allocation Schedule is not delivered in a relevant [\*\*\*] period as specified in Clause 5.2, the applicable time periods in Paragraph 4.3 shall be extended as reasonably necessary to allow the Buyer to comply with its obligations to make payments or issue Loan Notes, such extension being for up to a maximum period of the number of Business Days between the expiry of the relevant [\*\*\*] period as specified in Clause 5.2 and the day on which the Draft Allocation Schedule is delivered to the Buyer.

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&nbsp;&nbsp;&nbsp;&nbsp;4.6 The Buyer will pay such amounts to the Sellers pursuant to the Final Allocation Schedule in accordance with Clause 5.3 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;4.7 The Buyer shall pay any amounts due pursuant to Paragraph 4.6 to each Seller in accordance with their respective Proportionate Share:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in respect of a Non-Rollover Seller, in cash in United States Dollars in immediately available federal funds to the Paying Agent Bank

Account, the instruction of which shall discharge the Buyer from any further obligation to make such payment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in respect of a Rollover Seller, through the issue of Loan Notes by the Buyer in accordance with the Loan Note Instrument and Clause

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.4 .

4.8 Each Payment Notice in respect of Net Receipts Payments shall be accompanied by a statement setting out for each Selling Party and each Company Product in the relevant Calendar Year, any Non-Royalty License Income received and a calculation of the aggregate Net Receipts Payments payable to the Sellers.

4.9 Each Payment Notice in respect of Net Sales Payments shall be accompanied by a statement setting out for each Selling Party and each Company Product in the relevant Calendar Year, (i) Net Sales in the currency for which such Company Product was sold (and, if the currency of sale was not United States Dollars, also in United States Dollars), (ii) a calculation of the aggregate Net Sales Payments payable to the Sellers, (iii) any adjustments made in respect of Combination Products, (iv) any deductions permitted pursuant to Paragraph 6.1 of this Schedule 5, and (v) the amount of any Contingent Consideration Deductions made.

&nbsp;&nbsp;&nbsp;&nbsp;5. Reports, records and audit rights

5.1 The Buyer shall provide, not less than once every Calendar Year after Completion (with delivery to occur in the final [\*\*\*] of each Calendar Year), a written report to the Sellers' Representative (who shall promptly notify the Fund Sellers) setting forth a high-level summary of all material events, occurrences and developments concerning the development and commercialisation of the Company Products during such Calendar Year (each such report, a "Status Report").

5.2 The information provided by the Buyer in each Status Report shall be provided in good faith, but without representation, warranty or other assurance.

5.3 If, within [\*\*\*] after delivery of a Status Report by the Buyer to the Sellers' Representative (or at any time during which the Buyer persists in any failure to deliver a Status Report when due under Paragraph 5.1), the Sellers' Representative requests (in writing to the Buyer) a meeting (at such time and date as the Sellers' Representative may reasonably request and as may include, if so specified by the Sellers' Representative, a meeting by way of telephone or video conference) with representatives of the Buyer to discuss the matters described in Paragraph 5.1, then the

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Buyer and its Affiliates shall make available for such a meeting one or more of its officers and employees as have oversight of, and management responsibility concerning, the development and commercialisation of Company Products (and development activities that may give rise new Company Products), and the Buyer shall procure that such persons respond appropriately and to the best of their ability to any queries raised at the meeting by the Sellers' Representative with respect to the matters described in Paragraph 5.1. Such responses shall be provided in good faith, but without representation, warranty or other assurance.

5.4 The Buyer shall make reasonably available (and inform the Sellers' Representative of the contact details of) a suitably qualified employee of the Buyer or its Affiliates who shall have a good knowledge of the development and commercialisation activities undertaken with respect to the Company Products (and development activities that may give rise new Company Products) and who shall promptly respond appropriately and to the best of their ability by telephone or by e-mail to such reasonable queries as may be posed by the Sellers' Representative concerning any matters described in Paragraph 5.1. Such responses shall be provided in good faith, but without representation, warranty or other assurance.

5.5 The Buyer and its Affiliates shall keep, and with respect to clauses (i) and (ii), will use reasonable efforts to require that their Licensees keep, at their normal place of business detailed, up to date records and accounts, in accordance with the requirements of GAAP, showing: (i) the quantity and invoiced price or non-cash consideration for all Company Products sold by it or its Affiliates or on its or its Affiliates' behalf broken down on a country-by-country basis, (ii) the invoiced amounts, deductions from such amounts and Net Sales of all Company Products in local currencies broken down on a country-by-country basis, and (iii) the amounts received by Buyer and its Affiliates giving rise to Non-Royalty License Income and the associated Non-Royalty License Income, in each case of (i), (ii) and (iii) during the previous [\*\*\*].

5.6 The Buyer and its Affiliates shall make such records and accounts available, on reasonable notice, not more than once in any Calendar Year for inspection during business hours by an independent chartered accountant nominated by Sellers' Representative for the purpose of verifying the accuracy of any statement or report given by the Buyer under Paragraph 4. No records or accounts will be audited more than once during the [\*\*\*] period that Buyer and its Affiliates are required to maintain such records and accounts pursuant to Paragraph 5.5. The Buyer and its Affiliates shall co-operate reasonably with any such accountant and shall promptly provide all information and assistance reasonably requested by such accountant (provided, that with respect to Net Sales of any Licensee, Buyer and its Affiliates will only be required to provide the information that such Licensee is required to provide to Buyer or its Affiliates). The accountant shall be required to keep confidential all information learnt during any such inspection, and to disclose to Sellers' Representative only such details as may be necessary to report on the accuracy of the Buyer's statement or report. Sellers' Representative shall be responsible for the accountant's charges unless the accountant certifies that there is an inaccuracy of more than [\*\*\*]% ([\*\*\*] percent) in any royalty statement, in which case the Buyer shall pay the charges

in respect of that inspection. Buyer may credit any overpayments revealed by the accountant's inspection against any future Milestone Payments, Net Sales Payments or Net Receipts Payments payable by the Buyer to the Sellers.

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5.7 The Buyer and the Sellers shall co-operate in good faith to resolve any discrepancies identified during any inspection under Paragraph 5.6. The Buyer shall pay any shortfall in the amounts paid to Sellers under this Agreement within [\*\*\*] following receipt of a copy of the independent chartered accountant's report. The Sellers shall pay any overpayment in the amounts paid to Sellers under this Agreement within [\*\*\*] following receipt of a copy of the independent chartered accountant's report. Any underpayment shall be paid together with interest on any such amount at a rate equivalent to [\*\*\*] percent ([\*\*\*]%) per annum above the Bank of England base rate from time to time from the date upon which such deficit arose to the date upon which the deficit was paid.

&nbsp;&nbsp;&nbsp;&nbsp;6. Miscellaneous

&nbsp;&nbsp;&nbsp;&nbsp;6.1 Third Party Payments

If, after Completion, Buyer or any of its Affiliates or Licensees enters into any agreement or other arrangement with a Third Party with respect to [\*\*\*], then the Buyer may credit up to [\*\*\*] percent ([\*\*\*]%) of any royalty payments made under such agreement against any Net Sales Payments payable by the Buyer to the Sellers, subject to a maximum deduction under this Paragraph of [\*\*\*] percent ([\*\*\*]%) of the Net Sales Payments that would otherwise be payable in any Calendar Year; provided, that Buyer may carry forward any such reductions permitted under this Paragraph 6.1 that are incurred or accrued in a Calendar Year but are not applied against Net Sales Payments due to Sellers in such Calendar Year as a result of the foregoing maximum deduction and apply such amounts against Net Sales Payments due to Sellers in any subsequent Calendar Year until the amount of such reduction has been fully applied against Net Sales Payments due to Sellers. Notwithstanding the foregoing, Buyer may not credit against any Net Sales Payments payable by the Buyer to the Sellers, any payments made to Imperial College or its Affiliates in consideration for a grant of rights to any clinical or pre-clinical data that exists at Completion and is licensed after Completion by any Target Group Company from Imperial College or Imperial College Innovations Limited.

&nbsp;&nbsp;&nbsp;&nbsp;6.2 Currency Conversion

All payments to a party hereunder will be made in United States Dollars. For the purpose of calculating any sums due under, or otherwise reimbursable pursuant to, this Agreement (including the calculation of Net Sales or Non-Royalty License Income expressed in currencies other than United States Dollars), Buyer will convert any amount expressed in a foreign currency into United States Dollar equivalents, calculated using its internal method of currency conversion for its regularly prepared financial statements.

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&nbsp;&nbsp;&nbsp;&nbsp;6.3 Interest on late payment

If any party defaults in the payment when due of any sum payable under this Schedule 5 the liability of that party shall be increased to include interest on that sum in accordance with Clause 17.2.

&nbsp;&nbsp;&nbsp;&nbsp;6.4 Assumption of Buyer's Obligations by Assignees

If the Buyer or any of its Affiliates assign, novate, transfer or otherwise dispose of to any third party ("Assignee") any of the Company IP Rights or any of their rights to manufacture and Commercialize any Company Product or Company Peptide, whether by a direct disposal of assets or by a disposal of the Company or other owner of the Company IP Rights, ("Assignment") during the period between Completion and the end of the Net Sales Term, the Buyer or its Affiliates, as applicable, will make it a condition of any such Assignment that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Assignee enters into a binding legal contract, directly enforceable by the Sellers against the Assignee instead of the Buyer (either as a party to such contract or pursuant to express third party rights granted to the Sellers under such contract), pursuant to which the Assignee agrees to pay the Milestone Payments, Net Sales Payments and Net Receipts Payments due to the Sellers under this Agreement in respect of the relevant Company Products ("Payment Obligations") and to comply with the other obligations of the Buyer under this Schedule in full in respect of those Company Products; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Assignee assumes and becomes liable for the Payment Obligations and the other obligations of the Buyer under this Schedule in full, such that on Assignment they become directly enforceable by the Sellers against the Assignee, whether by the operation of law or contract, for such obligations of the Buyer under this Schedule, including (but not limited to) upon a merger, consolidation or other business combination transaction of the Buyer with or into a third party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at the time of such Assignment the Assignee is not listed on the UK's consolidated list of persons subject to financial sanctions maintained by HM Treasury, or the U.S. list of Specially Designated Nationals and Blocked Persons and/or any other list of restricted parties maintained by the U.S. Department of the Treasury's Office of Foreign Assets Control.

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Exhibit A: Worked Milestone Examples

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| | | |
|:---|:---|:---|
| <u>Product development assumption</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Milestones achieved</u> | &nbsp;&nbsp;&nbsp;&nbsp;<u>Payments due</u> |
| [\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;[\*\*\*] |
| <br>[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[\*\*\*] | &nbsp;&nbsp;&nbsp; <br>[\*\*\*] |
| [\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;[\*\*\*] |
| <br>[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[\*\*\*] | &nbsp;&nbsp;&nbsp; <br>[\*\*\*] |
| [\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;[\*\*\*] |
| <br>[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[\*\*\*]<br>[\*\*\*] (provided not more than 15 years after completion) [\*\*\*] | &nbsp;&nbsp;&nbsp; <br>[\*\*\*] |
| [\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]<br>[\*\*\*] (provided not more than 15 years after completion) [\*\*\*] | &nbsp;&nbsp;&nbsp; <br>[\*\*\*] |
| <br>[\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>[\*\*\*] (provided not more than 15 years after completion) | &nbsp;&nbsp;&nbsp; <br>[\*\*\*] |
| [\*\*\*] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*] | &nbsp;&nbsp;&nbsp;[\*\*\*] |

---

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SCHEDULE 6

COMPLETION STATEMENT

Part A

Left Deliberately Blank

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Part B

Preparation of the Completion Statement

[\*\*\*]

------

IN WITNESS of which this Agreement has been executed and delivered as a deed on the date that first appears on page 1 above.

EXECUTED and DELIVERED as a DEED by

METSERA, INC.

acting by:))))

Name: Title:

------

EXECUTED and DELIVERED as a DEED by [SELLER'S) NAME] in the presence of:)

Signature of witness

Name Address Occupation

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Christopher Whitten Bernard, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Metsera, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)[Omitted];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: November 12, 2025 | By: | /s/ Christopher Whitten Bernard |
|  |  | **Christopher Whitten Bernard** |
|  |  | **President and Chief Executive Officer** |

---

------

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Christopher J. Visioli, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Metsera, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)[Omitted];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: November 12, 2025 | By: | /s/ Christopher J. Visioli |
|  |  | **Christopher J. Visioli** |
|  |  | **Chief Financial Officer** |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report on Form 10-Q of Metsera, Inc. (the "Company") for the period ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: November 12, 2025 | By: | /s/ Christopher Whitten Bernard |
|  |  | **Christopher Whitten Bernard** |
|  |  | **President and Chief Executive Officer** |

---

------

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report on Form 10-Q of Metsera, Inc. (the "Company") for the period ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: November 12, 2025 | By: | /s/ Christopher J. Visioli |
|  |  | **Christopher J. Visioli** |
|  |  | **Chief Financial Officer** |

---

------