What changed in this filing

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Item 1. Business

2021-03-31 compared with 2020-03-26 · 1875 added, 705 removed, 34 unchanged (99% of the section changed)

is an Israeli company formed on March 3, 2015.

It is a clinical stage microbiome product discovery company developing products

using both natural and engineered phage technologies designed to target and destroy bacteria that affect the appearance of skin,

as well as harmful bacteria in chronic diseases, such as inflammatory bowel disease (“IBD”), liver disease and cancer.

Bacteriophage or phage are viruses that target bacteria and are considered inert to mammalian cells.

By utilizing proprietary

combinations of naturally occurring phage and by creating novel phage using synthetic biology, BiomX develops phage-based therapies

intended to address large-market and orphan diseases.

BiomX’s

approach is driven by the convergence of several factors:

rapidly increasing understanding of phage, including the links between

phage behaviors and their genomes;

growing evidence that harmful bacteria are present and involved in chronic diseases, such as

IBD, that could, in principle, be treated with phage;

as well as by a growing number of anecdotal reports from different academic

centers of successful compassionate use administration of phages to seriously ill patients who were unresponsive to other therapies.

BiomX believes its phage therapeutic product candidates have the ability to treat conditions and diseases by precisely targeting

pathogenic bacteria without disrupting other bacteria or the healthy microbiota.

BiomX’s

goal is to develop multiple products based on the ability of phage to precisely target components of the microbiome and on BiomX’s

ability to screen, identify and combine different phage, both naturally occurring and created using synthetic engineering, to

develop these treatments.

is developing BX001, its lead product candidate, to modify the appearance of skin in a range of skin types, including in oily

and acne-prone skin.

BX001 is a topical gel that includes a combination of naturally occurring phage that specifically target

Cutibacterium acnes ( C.

acnes , formerly taxonomically classified as Propionibacterium acnes , or P.

acnes is thought to be associated with acne vulgaris (“acne”), and the local inflammation of

cells surrounding hair follicles in this condition.

In October 2019, BiomX has initiated clinical testing to demonstrate the safety

and tolerability of BX001 in 75 individuals with acne.

Enrollment was completed in December 2019.

BiomX is also examining exploratory

endpoints of reduction of C.

acnes and effects on the skin microbiome under this trial.

An additional smaller single blinded,

single application, placebo-controlled clinical trial to evaluate alternative methods of topical application of BX001 is also

being conducted in parallel.

BiomX expects results from these trials in the first quarter of 2020.

is BiomX’s therapeutic phage product candidate designed to treat IBD, targeting bacterial strains isolated from IBD patients

that were shown to be pro-inflammatory in animal models and may have a role in the onset and aggravation of the disease.

is a therapeutic phage cocktail product candidate targeting strains of Klebsiella pneumoniae , (“

pneumoniae ”),

that are associated with the development of IBD.

In BiomX’s BMX-IBD-006 study, BX002 led to rapid reductions in levels of

pneumoniae strains in a mouse model colonized with high titers (“levels”) of K.

There are up to 1.6 million patients in the United States with IBD.

While there are multiple therapies that can relieve symptoms

and induce remission in IBD, not all patients respond, and most of those who do respond experience periods of disease flares.

BiomX expects to file an IND for BX002 in 2020.

is BiomX’s therapeutic phage product candidate targeting bacteria associated with PSC, a rare inflammatory liver disease.

BX003 is a therapeutic phage cocktail product candidate that targets K.

pneumoniae strains associated with the development

of PSC, which is characterized by chronic inflammation leading to scarring of the bile ducts both inside and outside the liver

and the accumulation of toxic levels of bile acids.

PSC is a progressive disease for which there are no approved therapies, and

which often eventually leads to liver failure.

PSC is an underdiagnosed orphan disease with an estimated prevalence in the United

States of approximately 30,000.

BiomX expects to file an IND for BX003 in 2021.

is also developing synthetically engineered phage designed to target strains of bacteria found in CRC tumors.

BiomX’s CRC

program incorporates its expertise in identifying and validating associations of specific strains of bacteria with human disease

with BiomX’s synthetic biology capabilities designed to deliver phage with therapeutic potential to tumors.

percentage of the 141,000 new cases of CRC in the United States each year respond to immunotherapy.

This lack of response is believed

to be due to the lack of novel tumor antigens and scarcity of immune cells in colorectal tumors.

BiomX has observed in vitro

and in vivo that it can use phage to target strains of Fusobacterium nucleatum , a bacterial species that is

highly enriched in colorectal tumors and is believed to be pathogenic.

BiomX plans to use phage to deliver payload genes, such

as those encoding immunostimulatory proteins, directly to tumors while also leading to eradication of these bacteria.

to optimize the insertion and expression of these genes using synthetic engineering.

BiomX then intends to examine the activity

of the engineered phage in preclinical models.

BiomX believes that this approach of using phage to deliver therapeutic payloads

has the potential to deliver therapeutic benefit in additional cancer types as well as in a broad range of other diseases.

of BiomX’s therapeutic product candidates derive from its proprietary platform, which is first used to discover and validate

the association of specific bacterial strains with human disease and is then used to develop rationally designed phage combinations

(“cocktails”), that target these pathogenic bacteria.

In BiomX’s therapeutic discovery efforts, BiomX uses its

proprietary platform both to identify naturally occurring phage and to create synthetically engineered phage that target pathogenic

BiomX then designs cocktails containing multiple phage with complementary functions and test these product candidates

in vitro and in vivo .

The use of specific combinations of phage is a critical and proprietary aspect of BiomX’s

approach, which is designed to maximize efficacy while minimizing the potential emergence of resistant bacterial strains.

has observed that these therapeutic product candidates are able to selectively kill specific strains of bacteria, leading to alterations

in the microbiome composition that BiomX believes will confer therapeutic benefit by impacting the patient’s inflammatory

BiomX believes that with appropriate and stringent phage selection and testing, BiomX can endow its therapeutic product

candidates with disease-fighting properties that go well beyond those of any individual phage.

to published studies, between 10 and 100 trillion symbiotic microorganisms, including bacteria and viruses, collectively referred

to as the microbiome, are essential components of the human body.

The microbiome contributes to metabolism, protects against pathogens

and interacts with the immune system.

Imbalance of the microbiome on the skin is associated with effects on the appearance of

Imbalance of the microbiome within the body is associated with multiple diseases.

BiomX seeks to become a leader in restoring

health to the microbiome by deploying phage to remove potentially harmful bacteria.

combines multiple technologies developed by its scientific founders and described in leading scientific journals.

BiomX’s

scientific founder Rotem Sorek, a Professor in the Department of Molecular Genetics at the Weizmann Institute of Science, is a

world leader in phage genomics and bacterial defense mechanisms.

BiomX’s scientific founder Eran Elinav, a Professor in

the Department of Immunology at the Weizmann Institute of Science, is an expert in investigating the link between the microbiome

and human health and disease.

BiomX’s scientific founder, Professor Timothy K.

Lu, is a world leader in synthetic biology

approaches to engineering gene circuits and phage, leading the Synthetic Biology Group in the Department of Electrical Engineering

and Computer Science and the Department of Biological Engineering at the MIT.

In addition, through the acquisition of the privately

held Israel-based company, RondinX Ltd., in 2017, BiomX gained access to high throughput genomic analyses techniques developed

Eran Segal, a leading computational biologist from the Department of Computer Science and Applied Mathematics at the

Weizmann Institute of Science.

The combination of the technologies and expertise from these leaders in each of their respective

fields is critical in enabling BiomX to focus on treating complex human diseases and conditions by precise manipulation of the

of December 31, 2019, BiomX had an accumulated deficit of $44.6 million and expects that for the foreseeable future BiomX will

continue to incur significant expenses as BiomX advances its product candidates from discovery through preclinical development

and clinical trials and seeks regulatory approval of BiomX’s product candidates.

BiomX does not have any products approved

or available for sale, BiomX’s products are still in the preclinical and clinical development stages, and BiomX has not

generated any revenue from product sales.

BiomX’s

goal is to develop multiple products based on the ability of phage to precisely target components of the microbiome and on BiomX’s

ability to screen, identify and combine different phage, both naturally occurring and created using synthetic engineering, to

develop these treatments.

BiomX intends to:

the safety, tolerability and effect of BX001 and advance BX001 through clinical testing conducted with a leading multinational

cosmetics company using the available regulatory pathways in the relevant jurisdictions and then commercialize BX001 with

BX002 and BX003 for the treatment of microbiome-related gastrointestinal immune disorders like IBD and PSC;

the preclinical efficacy of BiomX’s synthetic engineering approach for delivering therapeutic payloads to bacteria that

are resident within tumors followed by evaluation through clinical testing;

new targets for the indications BiomX is pursuing by expanding its internal database of clinical microbiome samples and its

bioinformatics capabilities;

and partner microbiome-based biomarker tests, based on BiomX’s proprietary XMarker platform, that can be used for disease

diagnosis or as companion diagnostics.

chart below identifies each of product candidates and BiomX’s biomarker test and their current status.

We are a clinical stage microbiome product

discovery company developing products using both natural and engineered phage technologies designed to target and kill specific

harmful bacteria that affect the appearance of skin, as well as bacteria associated with chronic diseases, such as inflammatory

bowel disease IBD, primary sclerosing cholangitis, or PSC, cystic fibrosis, or CF, atopic dermatitis and colorectal cancer, or

Bacteriophage or phage are bacterial, species-specific, strain-limited viruses that infect, amplify and kill the target bacteria

and are considered inert to mammalian cells.

By utilizing proprietary combinations of naturally occurring phage and by creating

novel phage using synthetic biology, we develop phage-based therapies intended to address both large-market and orphan diseases.

The microbiome refers to the collection

of microorganisms, including phage, that reside on the skin, line the gastrointestinal tract and reside elsewhere in the body.

The vast majority of these microorganisms are not pathogenic and instead exist in a symbiotic state with the human host, enabling

the body to function normally by protecting against proliferation of pathogenic strains, educating the immune system and assisting

in digestion.

Imbalances in the composition of the microbiome have been found in multiple diseases.

Our approach in our therapeutic programs

is based on targeting those specific strains of pathogenic bacteria in the microbiome that are strongly associated with diseases

while leaving the rest of the microbiome intact.

Our goal is to restore the natural, healthy balance of the microbiome with rationally

designed phage cocktails.

Using our proprietary methods, we can generate and screen large libraries of phage, prioritizing potential

candidates based on selectivity and potency as well as a number of other parameters, that are important for drug development such

as safety, stability and manufacturability.

Our goal is to develop multiple products

based on the ability of phage to precisely target components of the microbiome and on our ability to screen, identify and combine

different phage, both naturally occurring and created using synthetic engineering, to develop these treatments.

Our Product Pipeline

The chart below identifies our product candidates

pipeline, their current status and expected timing for the upcoming milestones.

We do not have any products approved or available

for sale, our product candidates are still in the preclinical and clinical development stages, and we have not generated any revenue

from product sales.

We are developing BX001, our lead product

candidate, to modify the appearance of skin in a range of skin types, including in oily and acne-prone skin.

BX001 is a topical

gel that includes a combination of naturally occurring phage that specifically target Cutibacterium acnes, or C.

acnes is thought to be associated with acne vulgaris (acne), and the local inflammation of cells surrounding hair follicles

in this condition.

In preclinical in vitro studies, BX001 has been shown to be active on antibiotic resistant C.

strains and not to target other bacteria found on the skin.

Furthermore, it has been observed that the C.

are able to target bacteria found within biofilm, a matrix secreted by the bacteria which surrounds them and makes them less accessible

to substances such as antibiotics.

On March 31, 2020, we announced positive

topline results from a 4-week randomized, double-blind, dose-finding, placebo-controlled single center Phase 1 cosmetic clinical

study of BX001.

The 75 enrolled individuals with mild-to-moderate acne were randomized into one of three cohorts:

cohort, a low dose cohort, and a placebo cohort (vehicle).

The study met its primary endpoints of safety and tolerability for

both doses of BX001, in addition to demonstrating a statistically significant (p=0.036) reduction of C.

acnes levels for

the high dose of BX001 compared to placebo.

On March 2, 2021, we announced the initiation

of our Phase 2 cosmetic clinical study of BX001.

The study is a 12-week randomized, single center, double-blind, placebo-controlled

trial with 140 individuals with mild-to-moderate acne vulgaris.

Subjects enrolled are randomized into two cohorts:

BX001 or placebo

(vehicle) in a 1:1 ratio and will self-administer BX001 or placebo twice daily.

The key endpoints will evaluate the safety, tolerability

and efficacy of BX001.

Results from the 8-week time point are expected to be available in the third quarter of 2021 and the full

analysis including the 12-week time point is expected to be available in the fourth quarter of 2021.

On February 2, 2021, we announced positive

results of a randomized, single-blind, multiple-dose, placebo-controlled Phase 1a pharmacokinetic study of BX002, our product candidate

for IBD and PSC, conducted under an investigational new drug, or IND, application submitted to the FDA.

The study evaluated the

safety and tolerability of orally administered BX002 in 18 healthy volunteers.

Subjects were randomized to receive orally either

BX002 or placebo, twice daily for three days.

Subjects were monitored for safety for seven days in a clinical unit, with follow-up

for safety assessments done at 14 and 28 days after completion of dosing.

BX002 was demonstrated to be safe and well-tolerated,

with no serious adverse events and no adverse events leading to discontinuation.

In addition, the study met its objective of delivering

high concentrations of viable phage to the gastrointestinal tract of approximately 10 10 PFU, or plaque forming units.

This equals approximately 1,000 times more viable phage compared to the bacterial burden of K.

pneumoniae in IBD and PSC

patients as measured in stool.

Based on the Phase 1a study results, we plan to advance to a Phase 1b/2a study evaluating the efficacy

of BX003 for the reduction of K.

pneumoniae in individuals that carry the target bacteria.

Results from the Phase 1b/2a

study are expected by mid-2022.

On November 12, 2020, we announced consolidation

of our IBD and PSC programs into a single broad host range product candidate, named BX003, under development for both indications.

Prior to November 2020, we had two separate phage product candidates for IBD and for PSC, with our IBD product candidate named

BX002 and PSC product candidate named BX003.

After the consolidation, the BX003 product candidate is now under development to treat

both IBD and PSC, targeting bacterial strains of Klebsiella pneumoniae , (“

pneumoniae ”), a potential

pathogen implicated in both diseases.

pneumoniae strains isolated from IBD patients were shown to be pro-inflammatory

in animal models and may have a role in the onset and aggravation of the disease.

Strains of K.

pneumoniae isolated from

PSC patients were shown to cause an inflammatory response in the liver of animal models and were shown to induce the formation

of pores through monolayer colonic organoid cultures.

Prior to the consolidation, our Phase 1a clinical study was conducted only

on BX002, and future clinical studies are planned to be conducted on BX003.

BX004 is our therapeutic phage product candidate

under development for chronic respiratory infections caused by Pseudomonas aeruginosa, or P.

aeruginosa, a main contributor

to morbidity and mortality in patients with CF.

Enhanced resistance to antibiotics develops, particularly in CF patients, due to

extensive drug use consisting of prolonged and repeated broad-spectrum antibiotic courses often beginning in childhood, and leading

to the appearance of multidrug-resistant strains.

In preclinical in vitro studies, BX004 was shown to be active against

antibiotic resistant strains of P.

aeruginosa and demonstrated the ability to penetrate biofilm, an assemblage of surface-associated

microbial cells enclosed in an extracellular polymeric substance and one of the leading causes for antibiotic resistance.

31, 2021, we announced the selection of the phage cocktail for BX004.

Phase 2 results of a proof of concept clinical study evaluating

safety and efficacy of BX004 administered through a nebulizer in CF patients are expected in the fourth quarter of 2021.

BX005 is our topical phage product candidate

targeting Staphylococcus aureus , or S.

aureus , a bacterium associated with the development and exacerbation of inflammation

in atopic dermatitis.

aureus is more abundant on the skin of atopic dermatitis patients than on the skin of healthy

individuals and on lesional skin than non-lesional skin.

It also increases in abundance, becoming the dominant bacteria, when patients

experience flares.

By reducing the load of S.

aureus , BX005 is designed to shift the skin microbiome composition to

its ‘pre-flare’

state and potentially provide a clinical benefit.

In preclinical in vitro studies, BX005 was

shown to eradicate over 90% of strains, including antibiotic resistant strains, from a panel of S.

aureus strains (120 strains

isolated from skin of subjects from the U.S.

On March 31, 2021, we announced the selection of the phage cocktail for

We expect to initiate a Phase 2 proof-of-concept clinical study evaluating the safety and efficacy of BX005 in atopic dermatitis

patients in the second half of 2021, with results expected in the first half of 2022.

We are also developing synthetically engineered

phage designed to target strains of bacteria found in CRC tumors.

Our CRC program integrates expertise in identifying and validating

associations of specific strains of bacteria with human disease and synthetic biology capabilities enabling design of phage that

are expected to deliver therapeutic payloads to tumors.

Only a small percentage of the new cases of CRC respond to immunotherapy.

This lack of response is believed to be due to the lack of novel tumor antigens and scarcity of immune cells in colorectal tumors.

We have observed in vitro and in vivo that phage can be used to target strains of Fusobacterium nucleatum ,

a bacterial species that is highly enriched in colorectal tumors and is believed to be pathogenic.

We plan to use phage intravenously

to deliver payload genes, such as those encoding immunostimulatory proteins, to tumors while also leading to eradication of these

We have successfully engineered an IL-15 gene payload into F.

nucleatum phage.

Preclinical results from animal

studies evaluating use of our phage therapy in this program in combination with checkpoint inhibitors are expected in the second

and third quarters of 2021.

Our goal is to develop multiple products

based on the ability of phage to precisely target components of the microbiome and on our ability to screen, identify and optimally

combine different phage, both naturally occurring and generated using synthetic engineering, to develop these treatments.

to continue to:

Investigate the clinical efficacy and safety of BX001 in a Phase 2 cosmetic clinical study and advance BX001 using the available regulatory pathways in the relevant jurisdictions in order to commercialize BX001 with a cosmetic partner;

Investigate clinical safety and efficacy of

our phage-based product candidates in IBD/PSC, CF and atopic dermatitis;

Evaluate the preclinical efficacy of our synthetic

engineering approach for delivering therapeutic payloads to bacteria that are resident within CRC tumors followed by evaluation

through clinical testing;

Identify new pathogenic bacteria to be targeted

by phage therapy for our existing indications and possible new indications;

Develop and partner microbiome-based biomarker

tests, based on our proprietary XMarker platform, that can be used for disease diagnosis or as companion diagnostics.

Our phage discovery platform

Our approach is driven by the convergence

of several factors:

a rapidly increasing understanding of phage, including the links between phage behaviors and their genomes;

growing evidence that the presence of specific harmful bacteria may impact chronic diseases, such as IBD, making them in principle,

amenable to treatment with phage;

and by a growing number of anecdotal reports from different academic centers of successful compassionate

use of phage to treat seriously ill patients who were unresponsive to other therapies.

We believe our phage therapeutic product

candidates have the potential to treat conditions and diseases by precisely targeting pathogenic bacteria without disrupting elements

of the healthy microbiota.

Our phage-based product candidates are

developed utilizing our proprietary research and development platform named BOLT.

The BOLT platform is unique, employing cutting

edge methodologies and capabilities across disciplines including computational biology, microbiology, synthetic engineering of

phage and their production bacterial hosts, bioanalytical assay development, manufacturing and formulation, to allow agile and

efficient development of natural or engineered phage combinations, or cocktails.

BOLT is designed to allow parallel phage

cocktail development under two optional paths:

A personalized approach aimed at conducting a rapid initial clinical proof of concept study in patients (Phase 2 results) within approximately 12-18 months of project initiation.

In certain indications the time to clinical proof of concept may be longer depending on the indication, identity of target bacteria, recruitment rate, cohort size and other factors.

Under this path we develop an initial phage cocktail or cocktails of naturally-occurring phage designed to target the bacterial strains isolated from each study subject participating in the clinical proof of concept study.

This phage cocktail or cocktails may differ from the final optimized phage cocktail to be commercialized, if approved.

The ability to move quickly into clinical development is also driven by the strong safety profile of naturally-occurring phage, which we believe will allow us to bypass GLP toxicity studies and safety studies in healthy volunteers based on feedback from the FDA in connection with our IBD development program, and to proceed directly to Phase 2 proof of concept.

Development of the final optimized fixed phage cocktail to be commercialized –

the optimized cocktail targets a broad patient population and may be comprised of naturally-occurring or synthetically engineered phage.

The cocktail contains phage with complementary features and is further optimized for multiple characteristics such as broad target host range, ability to prevent resistance, biofilm penetration, stability and ease of manufacturing.

Development of the optimized phage cocktail is anticipated to require 1-2 years and will be conducted in parallel to developing the personalized product candidates and executing the clinical proof of concept studies described above.

We combine multiple technologies that originate

from the laboratories of our scientific founders and that were developed internally.

Technologies that were developed by its scientific

founders are described in leading scientific journals.

One of our scientific founders, Professor Rotem Sorek, a Professor in the

Department of Molecular Genetics at the Weizmann Institute of Science, or WIS, is a world leader in phage genomics and bacterial

defense mechanisms.

Another scientific founder, Professor Eran Elinav, a Professor in the Department of Immunology at the WIS,

is an expert in investigating the link between the microbiome and human health and disease.

Our third scientific founder, Professor

Lu, is a world leader in synthetic biology approaches to engineering gene circuits and phage, leading the Synthetic

Biology Group in the Department of Electrical Engineering and Computer Science and the Department of Biological Engineering at

the Massachusetts Institute of Technology, or MIT.

In addition, through the acquisition of the privately held Israel-based company,

in 2017, we gained access to high throughput genomic analyses techniques developed by Professor Eran Segal, a leading

computational biologist from the Department of Computer Science and Applied Mathematics at the WIS.

The combination of the technologies

and expertise from these leaders in each of their respective fields is critical in enabling us to focus on treating complex human

diseases and conditions by precise manipulation of the microbiome.

Manufacturing

and a CRO have jointly developed a manufacturing process that utilizes state of the art industrial methods for the manufacture

of BiomX’s product candidates.

This cGMP compliant process is designed to be scalable to meet BiomX’s clinical study

needs, and to fulfill the requirements of regulators for human studies.

BiomX currently operates a manufacturing model that combines

an in-house process development and manufacturing suite with outsourced third-party manufacturing services for the large scale

production of BiomX’s therapeutic phage cocktails for clinical use.

As such, for BX001, BiomX has engaged one vendor to

provide purified active ingredients (bacteriophages) and another to provide formulation and fill-finish services of BiomX’s

product candidates for clinical testing.

For BX002, BiomX has also engaged an additional third-party provider to supplement BiomX’s

We have developed a manufacturing process

that utilizes state of the art industrial methods for the manufacture of our product candidates.

This process is designed to comply

with current Good Manufacturing, or cGMP, to be scalable to meet our clinical study needs, and to fulfill the requirements of regulators

for human studies.

We currently operate a manufacturing model that combines an in-house process development and manufacturing suite

with the flexibility to outsource to third-party manufacturing organizations when needed.

As such, for BX001, we have engaged a

vendor to provide purified active ingredients (phage) and established in house capabilities for formulation and fill-finish of

our product candidates for clinical testing.

For BX002, we have also engaged an additional third-party provider to supplement our

in-house process development activities.

BiomX has selected these organizations based on their experience, capability, capacity

and regulatory status.

Projects are managed by a specialist team of BiomX’s internal staff, which is designed to promote

compliance with the technical aspects and regulatory requirements of the manufacturing process.

maintains services agreements with multiple manufacturers.

These services agreements generally are short-term in nature and capable

of being extended or renewed.

The production amounts identified in BiomX’s current services agreements are sufficient to

support BiomX’s current clinical study needs.

the third quarter of 2019, BiomX opened its own 550 square foot manufacturing facility at its headquarters in Ness Ziona, Israel.

This facility has been designed with the capacity to produce clinical quantities of BiomX’s product candidates required

for future early stage clinical development of BX002.

BiomX does not have a current need for commercial scale manufacturing capacity, at the appropriate time BiomX intends to evaluate

building large scale cGMP internal manufacturing capabilities, which may include expansion of its operations.

strives to protect the proprietary technology that BiomX believes is important to its business, including seeking and maintaining

patent protection in the United States and internationally for its product candidates and discovery platform.

BiomX also relies

on trademarks, trade secrets, know-how, continuing technological innovation and in-licensing opportunities to develop and maintain

its proprietary position.

seeks to obtain U.S.

and international patent protection, and endeavors to promptly file patent applications for new commercially

valuable inventions.

BiomX also relies on trade secrets and know-how to protect aspects of its business that are not amenable

to, or that BiomX does not consider appropriate for, patent protection.

BiomX plans to continue to expand its intellectual property

estate by filing patent applications directed to formulations, related methods of treatment, methods of manufacture or identified

from BiomX’s ongoing development of its product candidates, as well as discovery based on BiomX’s proprietary product

BiomX’s success will depend on its ability to obtain and maintain patent and other proprietary protection for

commercially important technology, inventions and know-how related to its business, defend and enforce any patents that BiomX

may obtain, preserve the confidentiality of its trade secrets and know-how and operate without infringing the valid and enforceable

patents and proprietary rights of third parties.

The patent positions of life sciences companies like BiomX’s are generally

uncertain and involve complex legal, scientific and factual questions.

In addition, the coverage claimed in a patent may be challenged

in courts after issuance.

Moreover, many jurisdictions permit third parties to challenge issued patents in administrative proceedings,

which may result in further narrowing or even cancellation of patent claims.

BiomX cannot guarantee that its pending patent applications,

or any patent applications that BiomX may in the future file or license from third parties, will result in the issuance of patents.

BiomX cannot predict whether the patent applications it is currently pursuing will issue as patents in any particular jurisdiction

or at all, whether the claims of any patent applications, should they issue, will cover its product candidates, or whether the

claims of any issued patents will provide sufficient protection from competitors or otherwise provide any competitive advantage.

BiomX cannot predict the scope of claims that may be allowed or enforced in its patents.

In addition, the coverage claimed in

a patent application can be significantly reduced before the patent is issued, and its scope can be reinterpreted after issuance.

Consequently, BiomX may not obtain or maintain adequate patent protection for any of its programs and product candidates.

patent applications in the United States and certain other jurisdictions are maintained in secrecy for 18 months or potentially

even longer, and because publication of discoveries in the scientific or patent literature often lags behind actual discoveries

and patent application filings, BiomX cannot be certain of the priority of inventions covered by pending patent applications.

Accordingly, BiomX may not have been the first to invent the subject matter disclosed in some of its patent applications or the

first to file patent applications covering such subject matter, and BiomX may have to participate in interference proceedings

or derivation proceedings declared by the USPTO, to determine priority of invention.

For more information regarding the risks

related to BiomX’s intellectual property, see “

We have selected these organizations based on their experience, capability, capacity and

regulatory status.

Projects are managed by a specialist team of our internal staff, who assure compliance with the technical aspects

and regulatory requirements of the manufacturing process.

We maintain service agreements with multiple

manufacturers.

These service agreements generally are short-term in nature and capable of being extended or renewed.

The production

amounts identified in our current service agreements are sufficient to support our current clinical study needs.

We currently operate our own 550 square

foot manufacturing facility at our headquarters in Ness Ziona, Israel.

During the second quarter of 2021, we are planning to move

into a new 6,500 square foot manufacturing facility at our new headquarters, which will also be based in Ness Ziona, Israel.

facility has been designed with the capacity to produce clinical quantities of our product candidates required for future early-stage

clinical development.

The new facility will consist of two suites for drug substance phage production/development as well as formulation

and final drug product production rooms to support topical, oral, inhaled and injectable phage-based products in a liquid or dry

While we do not have a current need for

a commercial scale manufacturing capacity, at the appropriate time we intend to evaluate building large scale cGMP internal manufacturing

capabilities, which may include expansion of our operations.

Intellectual Property

We strive to protect the proprietary technology

that we believe is important to our business, including seeking and maintaining patent protection in the United States and internationally

for its product candidates and discovery platform.

We also rely on trademarks, trade secrets, know-how, copyrights, continuing

technological innovation and in-licensing opportunities to develop and maintain its proprietary position.

For more information

regarding the risks related to our intellectual property, see “

Risk Factors —

Risks Related to BiomX’s Licensed and

Risks Related to our Licensed and

Co-Owned Intellectual Property.

BiomX’s

licensed and co-owned technology is focused on microbiome product discovery to develop phage therapies to target and destroy harmful

bacteria involved with chronic diseases.

BiomX uses its licensed and proprietary platform technology to develop phage therapies

that incorporate both naturally occurring phage and novel engineered phage created using synthetic biology.

These phage therapies

are directed to acne, IBD, PSC and CRC.

BiomX then designs cocktails containing multiple phage (both naturally occurring and synthetic)

with complementary functions.

BiomX’s

patent portfolio consists of owned patent applications, as well as both licensed and co-owned patent applications (that are also

Risk Factors —

Risks Related to BiomX’s Licensed and Co-Owned Intellectual Property.

For some of these applications, prosecution has not started, and others are in the early stages of prosecution in the United States

and in selected jurisdictions outside of the United States.

BiomX solely owns one U.S.

provisional patent application.

BiomX co-owns

provisional patent application and one Patent Cooperation Treaty (“PCT”) application with Keio University

(“Keio”), one U.S.

provisional, one PCT application and six national phase applications (US, Europe, Australia, Canada,

China and Japan) with Yeda Research and Development Company Limited (“Yeda”), and one U.S.

provisional application

and one PCT application with both Keio and Yeda.

BiomX has an exclusive license from Yeda and Keio for these co-owned applications.

BiomX has exclusive licenses from Yeda, Keio, or the Massachusetts Institute of Technology (“MIT”) for the rest of

the patents and patent applications in its portfolio.

significant portion of BiomX’s portfolio is directed to its key product candidates, specifically:

acne, IBD, PSC and CRC,

as well as to BiomX’s bacterial target discovery and bacteriophage discovery technology platforms.

Prosecution has yet to

commence for most of the pending patent applications covering BiomX’s product candidates.

Prosecution is a lengthy process,

during which the scope of the claims initially submitted for examination by the USPTO are often significantly narrowed by the

time they issue, if they issue at all.

BiomX expects this to be the case with respect to its licensed and co-owned patent applications,

described briefly below.

co-owns with Yeda one U.S.

provisional and one PCT application containing claims directed to pharmaceutical compositions and formulations

comprising combinations of bacteriophage useful to treat acne, methods of use for these bacteriophage combinations, and methods

of identifying patients who will respond to these bacteriophage combinations.

patents issuing from the pending application

covering BiomX’s lead bacteriophage combination in this program are expected to expire in 2038.

Patent term adjustments

or patent term extensions could result in later expiration dates.

co-owns with one U.S.

provisional application and one PCT application and co-owns with Keio and Yeda one U.S.

provisional application,

one PCT application and six national phase applications (US, Europe, Australia, Canada, China, Japan), containing claims directed

to pharmaceutical compositions comprising combinations of bacteriophage useful to treat IBD and other diseases of the gastrointestinal

tract, methods of use for these bacteriophage combinations, methods of identifying patients who will respond to these bacteriophage

combinations, and methods of treating IBD by targeting a bacterial strain discovered to cause or contribute to that disease.

co-owns, solely with Keio, one U.S.

provisional application with similar claims.

also has an exclusive license from Keio for a patent family including applications in the United States, Australia, Canada, China,

Europe and Japan.

These applications are directed to methods of use for these bacteriophage combinations, methods of identifying

patients who will respond to these bacteriophage combinations, and methods of treating IBD by targeting a bacterial strain discovered

to cause or contribute to that disease.

patents issuing from the pending applications covering BiomX’s lead bacteriophage

combination in this program are expected to expire in 2037 or 2038.

Patent term adjustments or patent term extensions could result

in later expiration dates.

has an exclusive license to one U.S.

national application, two U.S.

provisional applications and two Japanese patent applications

with claims directed to pharmaceutical compositions comprising bacterial strains discovered to be beneficial in the treatment

of PSC and methods of using the same, and to methods of treating PSC by reducing the level of certain bacterial strains discovered

to contribute to PSC.

patents issuing from the pending applications in this program are expected to expire in 2038 or

Patent term adjustments or patent term extensions could result in later expiration dates.

has filed one U.S.

provisional patent application containing claims directed to pharmaceutical compositions and formulations comprising

combinations of bacteriophage (both synthetic and naturally occurring) useful to treat cancer.

There is no assurance that a patent

or claims will issue from this pending application or that, if a patent or claims issue, they will be of sufficient scope or strength

to provide meaningful protection for our technology.

patents issuing from the pending application covering BiomX’s

lead bacteriophage combination in this program are expected to expire in 2038.

We plan to continue to expand our intellectual

property estate by filing patent applications directed to formulations, related methods of treatment, methods of manufacture or

identified from our ongoing development of our product candidates, as well as discovery based on our proprietary product platform.

Our success will depend on our ability to obtain and maintain patent and other proprietary protection for commercially important

technology, inventions and know-how related to our business, defend and enforce any patents that we may obtain, preserve the confidentiality

of our trade secrets and know-how and operate without infringing the valid and enforceable patents and proprietary rights of third

Because patent applications in the United

States and certain other jurisdictions are maintained in secrecy for 18 months or potentially even longer, and because publication

of discoveries in the scientific or patent literature often lags behind actual discoveries and patent application filings, we

cannot be certain of the priority of inventions covered by pending patent applications.

Accordingly, we may not have been the

first to invent the subject matter disclosed in some of its patent applications or the first to file patent applications covering

such subject matter, and we may have to participate in interference proceedings or derivation proceedings declared by the United

States Patent and Trademark Office, or USPTO, to determine priority of invention.

Patent portfolio

Our patent portfolio consists of owned

patent applications, as well as both licensed and co-owned patent applications (that are also licensed).

Factors —

Risks Related to our Licensed and Co-Owned Intellectual Property.

For some of these applications,

prosecution has not started, and others are in the early stages of prosecution in the United States and in selected

jurisdictions outside of the United States.

We solely own three United States provisional patent application.

We co-own one

international patent family (Patent Cooperation Treaty, or PCT) with Keio University in Tokyo, Japan, or Keio, one

international patent family (United States, Australia, Brazil, Canada, China, Japan, Israel, European Patent Office, Korea

and India national filings) with Yeda Research and Development Company Limited, or Yeda, and one international patent family

(United States, Europe, Australia, Canada, China and Japan) with both Keio and Yeda.

We have an exclusive license from Yeda

and Keio for these co-owned patent applications.

We have exclusive licenses from Yeda, Keio, or MIT for the rest of the

patents and patent applications in its portfolio.

A significant portion of our portfolio is

directed to our key product candidates, specifically:

acne, IBD, PSC and CRC, as well as to our bacterial target discovery and

bacteriophage discovery technology platforms.

Prosecution has yet to commence for most of the pending patent applications covering

our product candidates.

Prosecution is a lengthy process, during which the scope of the claims initially submitted for examination

by the USPTO are often significantly narrowed by the time they issue, if they issue at all.

We expect this to be the case with

respect to our licensed and co-owned patent applications, described briefly below.

We co-own with Yeda one international patent

family (United States, Australia, Brazil, Canada, China, Japan, Israel, European Patent Office, Korea and India national filings),

containing claims directed to pharmaceutical compositions and formulations comprising combinations of bacteriophage useful to

treat acne, methods of use for these bacteriophage combinations, and methods of identifying patients who will respond to these

bacteriophage combinations.

Any United States patents issuing from the pending application covering our lead bacteriophage combination

in this program, if issued, are expected to expire in 2038.

Patent term adjustments or patent term extensions could result in

later expiration dates.

We solely own one United States provisional

patent application, co-own with Keio one international patent family (PCT stage) and co-own with Keio and Yeda one international

patent family (United States, Europe, Australia, Canada, China and Japan), containing claims directed to pharmaceutical compositions

comprising combinations of bacteriophage useful to treat IBD and other diseases of the gastrointestinal tract, methods of use for

these bacteriophage combinations, methods of identifying patients who will respond to these bacteriophage combinations, and methods

of treating IBD by targeting bacterial strains discovered to cause or contribute to that disease.

We also have an exclusive license from

Keio for an international patent family including patent applications in the United States, Australia, Canada, China, Europe and

These applications are directed to methods of use for these bacteriophage combinations, methods of identifying patients

who will respond to these bacteriophage combinations, and methods of treating IBD by targeting a bacterial strain discovered to

cause or contribute to that disease.

Any United States patents issuing from the pending applications covering our lead bacteriophage

combination in this program, if issued, are expected to expire in 2037, 2038 or 2042.

Patent term adjustments or patent term extensions

could result in later expiration dates.

is exclusively licensed to two U.S.

issued patent, one allowed European Patent Convention patent, five U.S.

national applications

and seven foreign patent applications (Canada, China, Europe, and Israel).

These licensed patent families include two issued U.S.

patents and multiple pending patent applications, with claims directed to methods of analyzing the composition of the microbiome

in a subject, polynucleotides that are useful as transcription terminators in bacteria and methods of identifying the same, methods

We have an exclusive license to one United

States national patent application, two United States provisional patent applications and two Japanese patent applications with

claims directed to pharmaceutical compositions comprising bacterial strains discovered to be beneficial in the treatment of PSC

and methods of using the same, and to methods of treating PSC by reducing the level of certain bacterial strains discovered to

contribute to PSC.

Any United States patents issuing from the pending applications in this program, if issued, are expected to

expire in 2038 or 2039.

Patent term adjustments or patent term extensions could result in later expiration dates.

We solely own one United States provisional

patent application containing claims directed to pharmaceutical compositions comprising combinations of bacteriophage to treat

chronic Pseudomonas lung infections, especially common in CF patients.

methods of use for these bacteriophage combinations, and

methods of identifying patients who will respond to these bacteriophage combinations.

Any United States patents issuing from the

pending application covering our lead bacteriophage combination in this program, if issued, are expected to expire in 2042.

term adjustments or patent term extensions could result in later expiration dates.

We solely own one United States provisional

patent application containing claims directed to pharmaceutical compositions and formulations comprising combinations of bacteriophage

(both synthetic and naturally occurring) useful to treat cancer.

patent issuing from the pending application covering

our lead bacteriophage combination in this program, if issued, are expected to expire in 2041.

Patent term adjustments or patent

term extensions could result in later expiration dates.

Technology Platform

We are exclusively licensed to two United

States issued patents, two European Patent Convention applications, and three United States national applications.

These licensed

patent families include two issued United States patents and multiple pending patent applications, with claims directed to methods

of producing recombinant bacteriophage in yeast cells, recombinant bacteriophage with broader or altered host range than the parent

strains from which they are derived, and recombinant methods for increasing the lytic efficiency of a bacteriophage.

issuing from the pending applications in the U.S.

directed to BiomX’s platform are expected to expire between 2034 and 2038.

issuing from the pending applications in the United States directed to our platform, if issued, are expected to expire between

2034 and 2038.

Patent term adjustments or patent term extensions could result in later expiration dates.

For more information regarding the risks

related to BiomX’s intellectual property, see “

Risk Factors —

Risks Related to BiomX’s Licensed and

Co-Owned Intellectual Property.

term of individual patents depends upon the legal term of the patents in the countries in which they are obtained.

In most countries

in which BiomX files, including the United States, the base term is 20 years from the filing date of the earliest-filed non-provisional

patent application from which the patent claims priority.

The term of a U.S.

patent can be lengthened by patent term adjustment,

which compensates the owner of the patent for administrative delays at the USPTO.

In some cases, the term of a U.S.

shortened by terminal disclaimer that reduces its term to that of an earlier-expiring patent.

The term of a U.S.

patent may be

The term of individual patents depends

upon the legal term of the patents in the countries in which they are obtained.

In most countries in which we file patent applications,

including the United States, the base term is 20 years from the filing date of the earliest-filed non-provisional patent application

from which the patent claims priority.

The term of a United States patent can be lengthened by patent term adjustment, which compensates

the owner of the patent for administrative delays at the USPTO.

In some cases, the term of a United States patent is shortened

by a terminal disclaimer that reduces its term to that of an earlier-expiring patent.

The term of a United States patent may be

eligible for patent term extension under the Drug Price Competition and Patent Term Restoration Act of 1984, referred to as the

1 unchanged sentence

With regard to a drug for which FDA approval is the first permitted marketing of the active ingredient, the Hatch-Waxman

Act allows for extension of the term of one U.S.

patent that includes at least one claim covering the composition of matter of

such an FDA-approved drug, an FDA-approved method of treatment using the drug and/or a method of manufacturing the FDA-approved

Act allows for extension of the term of one United States patent that includes at least one claim covering the composition of

matter of such an FDA-approved drug, an FDA-approved method of treatment using the drug and/or a method of manufacturing the FDA-approved

The extended patent term cannot exceed the shorter of five years beyond the non-extended expiration of the patent or fourteen

3 unchanged sentences

extension of the term of a patent that covers a drug approved by the applicable foreign regulatory agency.

the future, if and when BiomX’s product candidates receive FDA approval, BiomX expects to apply, if appropriate, for patent

term extension on patents directed to those product candidates, their methods of use and/or methods of manufacture.

However, there

is no guarantee that the applicable authorities, including the FDA in the United States, will agree with BiomX’s assessment

of whether such extensions should be granted, and if granted, the length of such extensions.

For more information regarding the

risks related to BiomX’s intellectual property, see “

In the future, if and when our product

candidates receive FDA approval, we expect to apply, if appropriate, for patent term extension on patents directed to those product

candidates, their methods of use and/or methods of manufacture.

However, there is no guarantee that the applicable authorities,

including the FDA in the United States, will agree with our assessment of whether such extensions should be granted, and if granted,

the length of such extensions.

Trade Secrets and Know-How

In addition to patents, we rely on trade

secrets and know-how to develop and maintain our competitive position.

We typically rely on trade secrets to protect aspects of

its business that are not amenable to, or that we do not consider appropriate for, patent protection.

We protect trade secrets

and know-how by establishing confidentiality agreements and invention assignment agreements with our employees, consultants, scientific

advisors, contractors and collaborators.

These agreements provide that all confidential information developed or made known during

the course of an individual’s or entities’

relationship with us must be kept confidential during and after the relationship.

These agreements also provide that all inventions resulting from work performed for us or relating to our business and conceived

or completed during the period of employment or assignment, as applicable, shall be our exclusive property.

In addition, we take

other appropriate precautions, such as physical and technological security measures, to guard against misappropriation of its proprietary

information by third parties.

Although we take steps to protect our proprietary

information and trade secrets, including through contractual means with our employees and consultants, third parties may independently

develop substantially equivalent proprietary information and techniques or otherwise gain access to our trade secrets or disclose

our technology.

Thus, we may not be able to meaningfully protect its trade secrets and benefit from the exclusive use thereof.

For more information regarding the risks related to our intellectual property, see “

Risk Factors —

Risks Related to BiomX’s Licensed

and Co-Owned Intellectual Property .”

secrets and know-how

addition to patents, BiomX relies on trade secrets and know-how to develop and maintain its competitive position.

BiomX typically

relies on trade secrets to protect aspects of its business that are not amenable to, or that BiomX does not consider appropriate

for, patent protection.

BiomX protects trade secrets and know-how by establishing confidentiality agreements and invention assignment

agreements with BiomX’s employees, consultants, scientific advisors, contractors and collaborators.

These agreements provide

that all confidential information developed or made known during the course of an individual’s or entities’

with BiomX must be kept confidential during and after the relationship.

These agreements also provide that all inventions resulting

from work performed for BiomX or relating to BiomX’s business and conceived or completed during the period of employment

or assignment, as applicable, shall be BiomX’s exclusive property.

In addition, BiomX takes other appropriate precautions,

such as physical and technological security measures, to guard against misappropriation of its proprietary information by third

BiomX takes steps to protect its proprietary information and trade secrets, including through contractual means with BiomX’s

employees and consultants, third parties may independently develop substantially equivalent proprietary information and techniques

or otherwise gain access to BiomX’s trade secrets or disclose BiomX’s technology.

Thus, BiomX may not be able to meaningfully

protect its trade secrets.

For more information regarding the risks related to BiomX’s intellectual property, see “

Factors —

Risks Related to BiomX’s Licensed and Co-Owned Intellectual Property .”

biotechnology and pharmaceutical industries are characterized by rapidly advancing technologies, strong competition and an emphasis

on proprietary products.

While BiomX believes that its technology, knowledge and experience provide BiomX with competitive advantages,

BiomX faces substantial competition from many different sources, including larger pharmaceutical companies with more resources.

Specialty biotechnology companies, academic research institutions, governmental agencies, as well as public and private institutions

are also potential sources of competitive products and technologies.

BiomX believes that the key competitive factors affecting

the success of any of its product candidates will include efficacy, safety profile, method of administration, cost, level of promotional

activity and intellectual property protection.

is aware of a number of biotechnology companies developing bacteriophage products to treat human diseases.

To BiomX’s knowledge,

several biotechnology companies, as well as academic institutions, have discovery stage or clinical programs utilizing naturally

occurring phages or synthetic biology approaches.

In addition, BiomX is aware of several investigational and marketed products

to treat the indications that BiomX is targeting with its product candidates, including, but not limited to:

Adapalene, Epiduo, Zineryt, erythromycin and Acnecide

bowel disease :

Humira, Stelara, Entyvio, Inflectra and Cimzia

Obeticholic acid (Intercept clinical candidate), GS-9674 (Gilead clinical candidate), BTT1023, (Acorda Therapeutics candidate)

and PLN-74809 (Pliant clinical candidate)

of BiomX’s competitors, either alone or with their strategic partners, have substantially greater financial, technical and

human resources than BiomX does and significantly greater experience in the discovery and development of product candidates, obtaining

FDA and other regulatory approvals of products and the commercialization of those products.

Accordingly, BiomX’s competitors

may be more successful than BiomX may be in discovering product candidates, obtaining approval for such product candidates and

achieving widespread market acceptance.

BiomX’s competitors’

products may be more effective, or more effectively marketed

and sold, than any product BiomX may commercialize and may render BiomX’s product candidates obsolete or non-competitive

before BiomX can recover the expenses of developing and commercializing any of BiomX’s product candidates.

BiomX anticipates

that BiomX will face intense and increasing competition as new drugs enter the market and advanced technologies become available.

third parties compete with BiomX in recruiting and retaining qualified scientific, clinical, manufacturing sales and marketing

and management personnel, establishing clinical trial sites and patient registration for clinical trials, as well as in acquiring

technologies complementary to, or necessary for, BiomX’s program.

addition, for any cosmetics products that BiomX introduces, BiomX will face intense competition from a broader range of cosmetics

companies with more resources than BiomX’s.

and Marketing

intends to pursue the commercialization of its drug product candidates either by building internal sales and marketing capabilities

or through opportunistic collaborations with others if and when BiomX receives the requisite regulatory approvals.

seeks to distribute BX001 and is working in collaboration with a leading multinational cosmetics company in conducting trials,

and does not plan to rely on its own sales and marketing capabilities, subject to negotiation and agreement of mutually acceptable

terms (as to which there can be no assurance).

BiomX also may select an alternate method for distribution.

Agreement with Yeda

entered into the License Agreement with Yeda, the technology transfer office of the Weizmann Institute of Science, pursuant to

which BiomX received an exclusive worldwide license to certain know-how and research information related to the development, testing,

manufacture, production and sale of microbiome-based therapeutic product candidates, including candidates specified in the agreement,

which are used in BiomX’s phage discovery platform, as well as patents, research and other rights to phage product candidates

resulting from the work of the consultants identified in the agreement and further research which BiomX funded.

connection with this license, BiomX is obligated to pay a non-refundable license fee of $10,000 per year.

In addition, BiomX contributed

an aggregate of approximately $2.0 million to the research budget agreed upon in the license agreement.

In addition, BiomX is

required to pay tiered royalties in the low single digits on net sales of products and diagnostic kits covered by the license

agreement, subject to reductions as described therein.

The products and diagnostic kits covered by the license agreement include

those directed to IBD, CRC, and any other indications that may be treated by phage-based therapies, as well as related technology

If BiomX sublicenses its rights under this agreement BiomX will be obligated to pay Yeda additional sublicense royalties

expressed as a percentage of the sublicensing receipts described in the agreement received ranging from the mid-teens to the mid-twenties.

BiomX is obligated pay filing and maintenance expenses in respect of patents licensed under this license agreements.

In connection

with this license agreement, BiomX also issued an aggregate of 80,000 ordinary shares to Yeda.

In the event of certain mergers

and acquisitions by BiomX, BiomX is obligated to pay Yeda an amount equivalent to 1% of the consideration received under such

transaction (the “exit fee”).

On October 28, 2019 (“Closing Date”), the provisions of the License Agreement

related to the exit fee were amended wherein the Company was obligated to pay Yeda a one-time payment as described in the amendment

which will not exceed 1% of the consideration received under such transaction.

Following the Closing, Yeda’s shares were

converted to 193,406 ordinary shares of the Company.

terminated earlier by either party, the license granted will remain in effect in each country and for each product developed based

on the license until the later of the expiration of the last licensed patent (which is expected to be in 2039) in such country

for such product, and eleven years from the date of first commercial sale of such product in such country for such product.

agreement terminates upon the later of the expiration of the last of the patents covered under the agreement, and the expiry of

a continuous 15-year period during which there has not been a first commercial sale of any product in any country.

Yeda may also

terminate the agreement if BiomX fails to observe certain diligence and development requirements and milestones as described in

the agreement.

BiomX or Yeda may terminate the agreement for the material uncured breach of the other party after a notice period,

or the other party’s winding up, bankruptcy, insolvency, dissolution or other similar discontinuation of business.

termination of the agreement, other than due to the passage of time, BiomX is required to grant to Yeda a non-exclusive, irrevocable,

perpetual, fully paid-up, sublicensable, worldwide license in respect of BiomX’s rights in know-how and research results

as described in this agreement, provided that if Yeda subsequently grants a license to a third party that utilizes BiomX’s

rights, BiomX is entitled to share in the net proceeds actually received by Yeda arising out of that license, subject to a cap

based on the development expenses that BiomX incurs in connection with this agreement.

consults with Yeda with respect to patent prosecution and maintenance decisions.

Yeda is primarily responsible for prosecution

and maintenance with respect to Licensed Information and BiomX is responsible for prosecution and maintenance with respect to

Subsequent Results.

BiomX and Yeda are both entitled to consultation rights.

BiomX is responsible for costs associated with prosecution

and maintenance of all patents and applications.

is entitled to enforce the patent rights under the license upon approval by Yeda.

Yeda may elect to join the lawsuit, but BiomX

is responsible for all litigation-related expenses.

Yeda reserves the right to bring its own actions if BiomX does not notify

Yeda of BiomX’s intent to enforce a right or bring an action after BiomX initially notified Yeda of the potential action.

Patent License Agreement with the MIT

April 25, 2017, BiomX entered into an Exclusive Patent License Agreement with MIT, pursuant to which BiomX received an exclusive,

royalty-bearing license to certain patents held by MIT covering methods to synthetically engineer phage in the field of treating,

preventing or diagnosing IBD, cancer in humans, including CRC, or certain other specified indications, to utilize patents held

One of the inventors of the patents has an equity ownership in BiomX.

Under this agreement, BiomX is required to expend

minimum amounts on the research and development of the products that require the licensed patents or are manufactured by a licensed

process until the first commercial sale of any product covered by this agreement.

These minimum amounts start at $50,000 for the

first year of the agreement term and increase up to $2.0 million per year after the fourth year.

BiomX is also required to meet

certain clinical and development milestones over the course of the agreement.

the terms of the agreement, BiomX paid MIT an initial license fee of $25,000 and is obligated to pay certain license maintenance

fees of up to $250,000 in each subsequent year and following the commercial sale of licensed products.

BiomX is also required

to make payments to MIT upon the satisfaction of development and commercialization milestones totaling up to $2.4 million in aggregate.

BiomX is also required to pay MIT tiered royalties on a percentage of annual net sales of licensed products in the low single

In addition, BiomX is required to pay tiered royalties on a percentage of annual net sales of identified products ranging

between approximately one-half percent and in the low single digits.

If BiomX sublicenses its rights under this agreement, BiomX

will be obligated to pay MIT sublicense royalties expressed as a percentage of sublicense income received as described in the

agreement, including milestone payments and other payments, ranging between the low teens and the low twenties.

BiomX’s

payments to MIT are subject to reductions as set forth in the agreement.

earlier terminated, the agreement will continue until the expiration or abandonment of all issued patents or patent applications

with the licensed patent rights, which is expected to be in 2038.

BiomX may also terminate the agreement at any time with 90 days

prior written notice and payment of all amounts due to MIT through the date of such termination.

MIT may also terminate the agreement

if BiomX ceases to carry on BiomX’s business or if BiomX fails to pay any amounts due to MIT under the agreement.

party may terminate the agreement upon material breach by the other party that is uncured.

is responsible for prosecution and maintenance of the patents that fall under the patent rights.

BiomX shares the costs of such

prosecution and maintenance.

is entitled to enforce the patent rights under BiomX’s own control and at its own expense, unless MIT is legally required

to allow the action to be brought in its name.

BiomX must consult with MIT before commencing any such action and cannot enter

into settlements, consent judgments, or other dispositions that would adversely affect the patent rights without prior written

consent of MIT.

MIT reserves the right to bring its own enforcement actions if BiomX fails to do so within a reasonable time.

Patent License Agreement with Keio and JSR for IBD

has entered into an Exclusive Patent License Agreement with Keio, and JSR, on December 15, 2017, as amended, pursuant to which

BiomX was granted an exclusive, royalty-bearing, worldwide, perpetual sublicense by JSR to certain patent rights related to BiomX’s

Specifically, these patent rights relate to bacterial targets that have been observed to be related to IBD and the

phage that were observed to eradicate these bacterial targets.

paid JSR a license issue fee of $10,000 and has agreed to pay annual fees ranging from $15,000 to $25,000 in each subsequent year.

In addition to the license fees, BiomX has agreed to make payments upon the satisfaction of certain clinical and regulatory milestones

up to an aggregate of $3.2 million.

BiomX is also required to pay tiered royalties expressed as a percentage of annual net sales

of products developed under the agreement in the low single digits.

If BiomX sublicenses BiomX’s rights under this agreement,

BiomX will be obligated to pay sublicense royalties expressed as a percentage of sublicense income received, including any license

signing fee, license maintenance fee, distribution or joint marketing fee and milestone payments, ranging in the high single digits

to the low teens.

BiomX’s payments under this agreement are subject to reductions as set forth therein.

earlier terminated, this agreement will expire on the later of the date on which all issued patents and filed patent applications

have expired (which is expected to be in 2039), or been abandoned, withdrawn, rejected, revoked or invalidated, and five years

from the date of first commercial sale of a product developed the agreement in any country or, if later, when the product ceases

to be covered by a valid claim in the United States, European Union or Japan.

The counterparties may terminate this agreement

if BiomX fails to pay the amounts due under this agreement, or upon BiomX’s winding up, bankruptcy, insolvency, dissolution

or other similar discontinuation of business, or if BiomX breaches the material terms of this agreement and such breach is uncured.

BiomX may terminate this agreement at any time upon three months’

Risks Related

to Our Licensed and Co-Owned Intellectual Property .”

The biotechnology and pharmaceutical industries

are characterized by rapidly advancing technologies, strong competition and an emphasis on proprietary products.

While we believe

that our technology, knowledge and experience provide us with competitive advantages, we face substantial competition from many

different sources, including larger pharmaceutical companies with more resources.

Specialty biotechnology companies, academic research

institutions, governmental agencies, as well as public and private institutions are also potential sources of competitive products

and technologies.

We believe that the key competitive factors affecting the success of any of our product candidates will include

efficacy, safety profile, time to market, cost, level of promotional activity and intellectual property protection.

We are aware of a number of biotechnology

companies developing bacteriophage products to treat diseases.

To our knowledge, several biotechnology companies, such as Locus

Biosciences, Inc., Armata Pharmaceuticals, Inc.

and SNIPR Biome, as well as academic institutions, have discovery stage or clinical

programs utilizing naturally occurring phage or synthetic biology approaches.

In addition, we are aware of several investigational

and marketed products to treat the indications that we are targeting with our product candidates, including, but not limited to:

Adapalene, Epiduo, Zineryt,

erythromycin and Acnecide

Humira, Stelara, Entyvio, Inflectra

Obeticholic acid (Intercept clinical

candidate), GS-9674 (Gilead clinical candidate), BTT1023, (Acorda Therapeutics candidate) and PLN-74809 (Pliant clinical candidate)

Trikafta, Symdeco, Pulmozyme, Tobramycin,

Atopic dermatitis:

Elidel, Eucrisa, Ruxolitinib,

Many of our competitors, either alone or

with their strategic partners, have substantially greater financial, technical and human resources than ours and significantly

greater experience in the discovery and development of product candidates, obtaining FDA and other regulatory approvals of products

and the commercialization of those products.

Accordingly, our competitors may be more successful than us in discovering product

candidates, obtaining approval for such product candidates and achieving widespread market acceptance.

Our competitors’

products may be more effective, or more effectively marketed and sold, than any product we may commercialize and may render our

product candidates obsolete or non-competitive before we can recover the expenses of developing and commercializing any of our

product candidates.

We anticipate that we will face intense and increasing competition as new drugs enter the market and advanced

technologies become available.

These third parties compete with us in

recruiting and retaining qualified scientific, clinical, manufacturing, sales and marketing and management personnel, establishing

clinical trial sites and patient registration for clinical trials, as well as in acquiring technologies complementary to, or necessary

for, our program.

In addition, for any cosmetics products

that we introduce, we will face intense competition from a broader range of cosmetics companies with more resources than ours.

Sales and Marketing

We intend to pursue the commercialization

of our drug product candidates either by building internal sales and marketing capabilities or through collaborations with others.

We seek to distribute BX001 without developing

and relying on our own sales and marketing resources and instead relying on collaborations and other relationships with cosmetic

companies to use their sales and marketing capabilities.

However, we also may select an alternate method for distribution.

Government Regulation

Government authorities in the United States

and other countries regulate, among other things, the research, development, testing, manufacture, quality control, approval,

labeling, packaging, storage, record-keeping, promotion, advertising, distribution, post-approval monitoring and reporting, marketing

and export and import of drug and biological products.

Generally, before a new drug or biologic can be marketed, considerable

data demonstrating its quality, safety, efficacy, purity, and/or potency must be obtained, organized into a format specific for

each regulatory authority, submitted for review and approved by the regulatory authority where the product is intended to be marketed.

In addition, in certain countries, cosmetics are subject to a specific regulatory framework.

Biological Product Development Process

In the United States, the FDA regulates

drugs under the Federal Food, Drug, and Cosmetic Act, or the FDCA, and its implementing regulations under the FDCA, the Public

Health Service Act, or the PHSA, and their implementing regulations.

Both drugs and biologics are also subject to other federal,

state and local statutes and regulations.

The process of obtaining regulatory approvals and the subsequent compliance with appropriate

federal, state and local statutes and regulations requires the expenditure of substantial time and financial resources.

to comply with applicable U.S.

requirements at any time during the product development, approval, or post-marketing process may

subject an applicant to administrative or judicial sanctions.

These sanctions could include, among other actions, the FDA’s

refusal to approve pending applications, withdrawal of an approval or license revocation, a clinical hold, untitled or warning

letters, product recalls or market withdrawals, product seizures, total or partial suspension of production or distribution, injunctions,

fines, refusals of government contracts, restitution, disgorgement and civil or criminal penalties.

Any agency or judicial enforcement

action could have a material adverse effect on us.

Certain of our current product candidates

and future product candidates must be approved by the FDA through a Biologics License Application, or BLA, process before they

may be legally marketed in the United States.

The process generally involves the following:

Completion of extensive preclinical studies in accordance with applicable regulations, including studies conducted in accordance with GLP requirements, if needed;

Submission to the FDA of an IND application, which must become effective before human clinical trials may begin;

● Approval by an institutional review board, or IRB, at

each clinical trial site before each trial may be initiated;

● Performance of adequate and well-controlled human clinical

trials in accordance with applicable IND regulations, good clinical practice, or GCP,

requirements and other clinical trial-related regulations to establish the safety and

efficacy of the investigational product for each proposed indication;

● Submission to the FDA of a BLA;

● A determination by the FDA within 60 days of its receipt

of a BLA to accept the filing for review;

● Satisfactory completion of an FDA pre-approval inspection

of the manufacturing facility or facilities where the biologic will be produced to assess

compliance with cGMP requirements to assure that the facilities, methods and controls

are adequate to preserve the biologic’s identity, strength, quality and purity;

● Potential FDA audit of the clinical trial sites that generated

the data in support of the BLA;

● Payment of user fees for FDA review of the BLA (unless

a fee waiver applies);

● FDA review and approval of the BLA, including consideration

of the views of any FDA advisory committee, prior to any commercial marketing or sale

of the biologic in the United States.

The preclinical and clinical testing and

approval process requires substantial time, effort and financial resources, and we cannot be certain that any approvals for our

product candidates subject to this process will be granted on a timely basis, or at all.

The strategies, nature, and technologies

associated with bacteriophage products are different from those of conventional biological products.

From the regulatory requirements

established in order to ensure the safety, efficacy and quality of bacteriophage preparations, there are several matters to consider

during the development, manufacturing, characterization, preclinical study and clinical trials of bacteriophage, including:

● Preparation and design of bacteriophage cocktails (phage

mixes) with individual phage characterization to ensure that they are strictly lytic

and devoid of any antibiotic resistance or virulent sequences;

wild-type phage versus

genetically engineered phage;

● Proof of concept in development of bacteriophage products

in the treatment of chronic diseases;

● Ability to deliver an adequate dose of bacteriophage formulation

to target bacteria;

● Relevant animal models in preclinical studies;

● Clinical safety and effectiveness on individuals that

carry the bacterial strain.

Preclinical Studies and IND

Preclinical studies include laboratory

evaluation of product chemistry and formulation, as well as in vitro and animal studies to establish a rationale for therapeutic

use and in some cases to assess the potential for adverse events.

The conduct of preclinical studies is subject to federal regulations

and requirements, including GLP regulations for safety/toxicology studies.

An IND sponsor must submit the results of the preclinical

tests, together with manufacturing information, analytical data, any available clinical data or literature and plans for clinical

trials, among other things, to the FDA as part of an IND.

An IND is a request for authorization from the FDA to administer an

investigational product to humans, and, must become effective before human clinical trials may begin.

Some long-term preclinical

testing may continue after the IND is submitted.

An IND automatically becomes effective 30 days after receipt by the FDA,

unless before that time, the FDA raises concerns or questions related to one or more proposed clinical trials and places the trial

on clinical hold.

In such a case, the IND sponsor and the FDA must resolve any outstanding concerns before the clinical trial

As a result, submission of an IND may not result in the FDA allowing clinical trials to commence.

Clinical Trials

Clinical trials involve the administration

of the biological product candidate to healthy volunteers or disease-affected patients under the supervision of qualified investigators,

generally physicians not employed by, or under, the trial sponsor’s control.

Clinical trials are conducted under protocols

detailing, among other things, the objectives of the clinical trial, dosing procedures, subject selection and exclusion criteria,

and the parameters to be used to monitor subject safety and efficacy, including stopping rules that assure a clinical trial will

be stopped if certain adverse events should occur.

Each protocol and any amendments to the protocol must be submitted to the FDA

as part of the IND.

Clinical trials must be conducted and monitored in accordance with the FDA’s regulations comprising the

GCP requirements, including the requirement that all research subjects provide informed consent.

Further, each clinical trial must

be reviewed and approved by an IRB at or servicing each institution at which the clinical trial will be conducted.

An IRB is charged

with protecting the welfare and rights of study participants and considers such items as whether the risks to individuals participating

in the clinical trials are minimized and are reasonable in relation to anticipated benefits.

The IRB also approves the form and

content of the informed consent that must be signed by each clinical trial subject or his or her legal representative and must

monitor the clinical trial until completed.

There are also requirements governing the reporting of ongoing clinical trials and

completed clinical trial results to public registries.

Information about certain clinical trials, including clinical trial results,

must be submitted within specific timeframes for publication on the www.clinicaltrials.gov website.

Clinical trials generally are conducted

in three sequential phases, known as Phase 1, Phase 2 and Phase 3, and may overlap.

● Phase 1 clinical trials generally involve a small number

of healthy volunteers or disease-affected patients who are initially exposed to a single

dose and then multiple doses of the product candidate.

The primary purpose of these clinical

trials is to assess the metabolism, pharmacologic action, side effect tolerability and

safety of the product candidate.

● Phase 2 clinical trials generally involve studies in disease-affected

patients to evaluate proof of concept and/or determine the dosing regimen(s) for subsequent

investigations.

At the same time, safety and sometimes further pharmacokinetic and pharmacodynamic

information is collected, possible adverse effects and safety risks are identified and

a preliminary evaluation of efficacy is conducted.

● Phase 3 clinical trials generally involve a large number

of patients at multiple sites and are designed to provide the data necessary to demonstrate

the effectiveness of the product for its intended use, its safety in use and to establish

the overall benefit/risk relationship of the product and provide an adequate basis for

labeling for new drugs.

Post-approval trials, sometimes referred

to as Phase 4 clinical trials, may be conducted after initial marketing approval.

These trials are conducted to gain additional

experience from the treatment of patients in the intended therapeutic indication.

In certain instances, the FDA may mandate the

performance of Phase 4 clinical trials as a condition of approval of a BLA.

Progress reports detailing the results

of the clinical trials, among other information, must be submitted at least annually to the FDA and written IND safety reports

must be submitted to the FDA and the investigators for serious and unexpected suspected adverse events, findings from other studies

or animal or in vitro testing that suggest a significant risk for human subjects and any clinically important increase

in the rate of a serious suspected adverse reaction over that listed in the protocol or investigator brochure.

It is possible for Phase 1, Phase 2, Phase

3 and other types of clinical trials not to be completed successfully within a specified period, if at all.

The FDA or the sponsor

may suspend or terminate a clinical trial at any time on various grounds, including a finding that the patients are being exposed

to an unacceptable health risk.

Similarly, an IRB can suspend or terminate approval of a clinical trial at its institution if

the clinical trial is not being conducted in accordance with the IRB’s requirements or if the biologic has been associated

with unexpected serious harm to patients.

Additionally, some clinical trials are overseen by an independent group of qualified

experts organized by the clinical trial sponsor, known as a data safety monitoring board or committee.

This group provides authorization

for whether a trial may move forward at designated check points based on access to certain data from the trial.

Concurrent with clinical trials, companies

may complete additional animal studies and also must develop additional information about the chemistry and physical characteristics

of the biologic as well as finalize a process for manufacturing the product in commercial quantities in accordance with cGMP requirements.

The manufacturing process must be capable of consistently producing quality batches of the product and, among other things, companies

must develop methods for testing the identity, strength, quality and purity of the final product.

Additionally, appropriate packaging

must be selected and tested, and stability studies must be conducted to demonstrate that the product candidates do not undergo

unacceptable deterioration over their shelf life.

FDA Review Process

Following completion of the clinical trials,

data are analyzed to assess whether the investigational product is safe and effective for the proposed indicated use or uses,

and also meets the regulatory requirements for potency and purity.

The results of preclinical studies and clinical trials are

then submitted to the FDA as part of a BLA, along with proposed labeling, chemistry and manufacturing information to ensure product

quality and other relevant data.

The BLA is a request for approval to market the biologic for one or more specified indications

and must contain proof of safety, purity and potency.

The application may include both negative and ambiguous results of preclinical

studies and clinical trials, as well as positive findings.

Data may come from company-sponsored clinical trials intended to test

the safety and efficacy of a product’s use or from a number of alternative sources, including studies initiated by investigators.

To support marketing approval, the data submitted must be sufficient in quality and quantity to establish the safety and efficacy

in the intended indication, purity and potency of the investigational product to the satisfaction of the FDA.

FDA approval of

a BLA must be obtained before a biologic may be marketed in the United States.

Under the Prescription Drug User Fee Act, or PDUFA,

as amended, each BLA must be accompanied by a user fee.

The FDA adjusts the PDUFA user fees on an annual basis.

Fee waivers or

reductions are available in certain circumstances, including a waiver of the application fee for the first application filed by

a small business.

Additionally, no user fees are assessed on BLAs for products designated as orphan drugs, unless the product

also includes a non-orphan indication.

The FDA reviews all submitted BLAs before

it accepts them for filing and may request additional information rather than accept the BLA for filing.

The FDA must make a decision

on accepting a BLA for filing within 60 days of receipt, and such a decision could include a refusal to file by the FDA.

the submission is accepted for filing, the FDA begins an in-depth review of the BLA.

Under the goals and policies agreed to by

the FDA under PDUFA, the FDA has 10 months, from the filing date, in which to complete its initial review of an original BLA and

respond to the applicant, and six months from the filing date of an original BLA designated for priority review.

not always meet its PDUFA goal dates for standard and priority BLAs, and the review process is often extended by FDA requests

for additional information or clarification.

Before approving a BLA, the FDA will conduct

a pre-approval inspection of the manufacturing facilities for the new product to determine whether they comply with cGMP requirements.

The FDA will not approve the product unless it determines that the manufacturing processes and facilities are in compliance with

cGMP requirements and adequate to assure consistent production of the product within required specifications.

The FDA also may

audit data from clinical trials to ensure compliance with GCP requirements.

Additionally, the FDA may refer applications for novel

products or products which present difficult questions of safety or efficacy to an advisory committee, typically a panel that

includes clinicians and other experts, for review, evaluation and a recommendation as to whether the application should be approved

and under what conditions, if any.

The FDA is not bound by recommendations of an advisory committee, but it considers such recommendations

when making decisions on approval.

The FDA likely will reanalyze the clinical trial data, which could result in extensive discussions

between the FDA and the applicant during the review process.

After the FDA evaluates a BLA, it will issue

an approval letter, or a Complete Response Letter.

An approval letter authorizes commercial marketing of the biologic with specific

prescribing information for specific indications.

A Complete Response Letter indicates that the review cycle of the application

is complete and the application will not be approved in its present form.

A Complete Response Letter usually describes all the

specific deficiencies in the BLA identified by the FDA.

The Complete Response Letter may require additional clinical data and/or

other significant and time-consuming requirements related to clinical trials, preclinical studies or manufacturing.

If a Complete

Response Letter is issued, the applicant may either resubmit the BLA, addressing all the deficiencies identified in the letter,

or withdraw the application.

Even if such data and information are submitted, the FDA may decide that the BLA does not satisfy

the criteria for approval.

Data obtained from clinical trials are not always conclusive and the FDA may interpret data differently

than the sponsor’s interpretation of the same data.

Orphan Drug Designation

Under the Orphan Drug Act of 1983, or the

Orphan Drug Act, the FDA may grant orphan designation to a drug or biological product intended to treat a rare disease or condition,

which is generally a disease or condition that affects fewer than 200,000 individuals in the United States, or more than 200,000

individuals in the United States and for which there is no reasonable expectation that the cost of developing and making the product

available in the United States for this type of disease or condition will be recovered from sales of the product.

Orphan drug designation

for a biologic must be requested before submitting a BLA.

After the FDA grants orphan drug designation, the identity of the therapeutic

agent and its potential orphan use are disclosed publicly by the FDA.

Orphan drug designation does not convey any advantage in

or shorten the duration of the regulatory review and approval process.

Orphan drug designation entitles a party

to financial incentives such as opportunities for grant funding towards clinical trial costs, tax advantages and user-fee waivers.

If a product that has orphan designation subsequently receives the first FDA approval for the disease or condition for which it

has such designation, the product is entitled to orphan drug exclusivity, which means that the FDA may not approve any other applications

to market the same drug for the same indication for seven years from the date of such approval, except in limited circumstances,

such as a showing of clinical superiority to the product with orphan exclusivity by means of greater effectiveness, greater safety

or providing a major contribution to patient care, or in instances of drug supply issues.

Competitors, however, may receive approval

of either a different product for the same indication or the same product for a different indication but that could be used off-label

in the orphan indication.

Orphan drug exclusivity also could block the approval of one of our products for seven years if a competitor

obtains approval before we do for the same product, as defined by the FDA, for the same indication we are seeking approval, or

if our product is determined to be contained within the scope of the competitor’s product for the same indication or disease.

If one of our products designated as an orphan drug receives marketing approval for an indication broader than that which is designated,

it may not be entitled to orphan drug exclusivity.

Orphan drug status in the European Union has similar, but not identical, requirements

and benefits.

Expedited Development and Review Programs

The FDA has a fast-track program that is

intended to expedite or facilitate the process for reviewing new drugs and biologics that meet certain criteria.

Specifically,

new drugs and biologics are eligible for fast-track designation if they are intended to treat a serious or life-threatening condition

and preclinical or clinical data demonstrate the potential to address unmet medical needs for the condition.

Fast track designation

applies to both the product and the specific indication for which it is being studied.

The sponsor of a biologic can request the

FDA to designate the product for fast-track status any time before receiving BLA approval, but ideally no later than the pre-BLA

Any product submitted to the FDA for marketing, including under a fast-track program, may be eligible for other types

of FDA programs intended to expedite development and review, such as priority review and accelerated approval.

A product is eligible

for priority review if it treats a serious or life-threatening condition and, if approved, would provide a significant improvement

in safety and effectiveness compared to available therapies.

The FDA will attempt to direct additional resources to the evaluation

of an application for a new drug or biologic designated for priority review in an effort to facilitate the review.

A product may also be eligible for accelerated

approval if it treats a serious or life-threatening condition and generally provides a meaningful advantage over available therapies.

In addition, it must demonstrate an effect on a surrogate endpoint that is reasonably likely to predict clinical benefit or on

a clinical endpoint that can be measured earlier than irreversible morbidity or mortality, or IMM, that is reasonably likely to

predict an effect on IMM or other clinical benefit.

As a condition of approval, the FDA may require that a sponsor of a drug or

biologic receiving accelerated approval perform adequate and well-controlled post-marketing clinical trials.

If the FDA concludes

that a drug or biologic shown to be effective can be safely used only if distribution or use is restricted, it will require such

post-marketing restrictions, as it deems necessary to assure safe use of the product.

If the FDA determines that the conditions

of approval are not being met, the FDA can withdraw its accelerated approval for such drug or biologic.

Additionally, a drug or biologic may be

eligible for designation as a breakthrough therapy if the product is intended, alone or in combination with one or more other drugs

or biologics, to treat a serious or life-threatening condition and preliminary clinical evidence indicates that the product may

demonstrate substantial improvement over currently approved therapies on one or more clinically significant endpoints.

of breakthrough therapy designation include the same benefits as fast-track designation, plus intensive guidance from the FDA to

ensure an efficient drug development program.

Even if a product qualifies for one or

more of these programs, the FDA may later decide that the product no longer meets the conditions for qualification or the time

period for FDA review or approval may not be shortened.

Furthermore, fast track designation, priority review, accelerated approval

and breakthrough therapy designation do not change the standards for approval, but may expedite the development or approval process.

Pediatric Information

Under the Pediatric Research Equity Act

of 2003, or PREA, a BLA or supplement to a BLA must contain data to assess the safety and efficacy of the biologic for the claimed

indications in all relevant pediatric subpopulations and to support dosing and administration for each pediatric subpopulation

for which the product is safe and effective.

The FDA may grant deferrals for submission of pediatric data or full or partial waivers.

A sponsor who is planning to submit a marketing application for a drug that includes a new active ingredient, new indication, new

dosage form, new dosing regimen or new route of administration must submit an initial Pediatric Study Plan, or PSP, within 60 days

of an end-of-Phase 2 meeting or, if there is no such meeting, as early as practicable before the initiation of the Phase 3 or Phase

The initial PSP must include an outline of the pediatric study or studies that the sponsor plans to conduct, including

study objectives and design, age groups, relevant endpoints and statistical approach, or a justification for not including such

detailed information, and any request for a deferral of pediatric assessments or a full or partial waiver of the requirement to

provide data from pediatric studies along with supporting information.

The FDA and the sponsor must reach an agreement on the PSP.

A sponsor can submit amendments to an agreed-upon initial PSP at any time if changes to the pediatric plan need to be considered

based on data collected from preclinical studies, early phase clinical trials and/or other clinical development programs.

Post-marketing Requirements

Following approval of a new product, the

manufacturer and the approved product are subject to continuing regulation by the FDA, including, among other things, monitoring

and record-keeping activities, reporting of adverse experiences, complying with promotion and advertising requirements, which

include restrictions on promoting products for unapproved uses or patient populations (known as “off-label use”) and

limitations on industry-sponsored scientific and educational activities.

Although physicians may prescribe legally available products

for off-label uses, manufacturers may not market or promote such uses.

Prescription drug and biologic promotional materials must

be submitted to the FDA in conjunction with their first use.

Further, if there are any modifications to the biologic, including

changes in indications, labeling or manufacturing processes or facilities, the applicant may be required to submit and obtain

FDA approval of a new BLA or BLA supplement, which may require the development of additional data or preclinical studies and clinical

The FDA may also place other conditions

on approvals including the requirement for a Risk Evaluation and Mitigation Strategy, or REMS, to assure the safe use of the product.

If the FDA concludes a REMS is needed, the sponsor of the BLA must submit a proposed REMS.

The FDA will not approve the BLA without

an approved REMS, if required.

A REMS could include medication guides, physician communication plans or elements to assure safe

use, such as restricted distribution methods, patient registries and other risk minimization tools.

Any of these limitations on

approval or marketing could restrict the commercial promotion, distribution, prescription or dispensing of products.

Newly discovered

or developed safety or effectiveness data may require changes to a product’s approved labeling, including the addition of

new warnings and contraindications, and also may require the implementation of other risk management measures, including a REMS

or the conduct of post-marketing studies to assess a newly discovered safety issue.

Product approvals may be withdrawn for non-compliance

with regulatory standards or if problems occur following initial marketing.

FDA regulations require that products be

manufactured in specific approved facilities and in accordance with cGMP regulations.

While we opened our own manufacturing facility

in the third quarter of 2019, we have historically relied, and expects to continue to rely, on third parties for the production

of certain clinical and commercial quantities of its products in accordance with cGMP regulations.

We and these manufacturers

must comply with cGMP regulations that require, among other things, quality control and quality assurance, the maintenance of

records and documentation and the obligation to investigate and correct any deviations from cGMP.

Manufacturers and other entities

involved in the manufacture and distribution of approved drugs or biologics are required to register their establishments with

the FDA and certain state agencies, and are subject to periodic unannounced inspections by the FDA and certain state agencies

for compliance with cGMP requirements and other laws.

Accordingly, manufacturers must continue to expend time, money and effort

in the area of production and quality control to maintain cGMP compliance.

The discovery of violative conditions, including failure

to conform to cGMP regulations, could result in enforcement actions, and the discovery of problems with a product after approval

may result in restrictions on a product, manufacturer or holder of an approved BLA, including recall.

Patent Term Restoration and Marketing Exclusivity

Depending upon the timing, duration and

specifics of FDA approval of our product candidates and any future product candidates, some of our U.S.

patents may be eligible

for limited patent term extension under the Drug Price Competition and Patent Term Restoration Act of 1984, commonly referred

to as the Hatch Waxman Amendments.

The Hatch Waxman Amendments permit restoration of the patent term of up to five years as compensation

for patent term lost during product development and FDA regulatory review process.

Patent term restoration, however, cannot extend

the remaining term of a patent beyond a total of 14 years from the product’s approval date.

The patent term restoration

period is generally one half the time between the effective date of an IND and the submission date of a BLA plus the time between

the submission date of a BLA and the approval of that application, except that the review period is reduced by any time during

which the applicant failed to exercise due diligence.

Only one patent applicable to an approved biologic is eligible for the extension

and the application for the extension must be submitted prior to the expiration of the patent.

The USPTO, in consultation with the FDA,

reviews and approves the application for any patent term extension or restoration.

In the future, we may apply for restoration

of patent term for our currently owned or licensed patents to add patent life beyond its current expiration date, depending on

the expected length of the clinical trials and other factors involved in the filing of the relevant BLA.

An abbreviated approval pathway for biological

products shown to be biosimilar to, or interchangeable with, an FDA licensed reference biological product was created by the Biologics

Price Competition and Innovation Act of 2009.

This amendment to the PHSA, in part, attempts to minimize duplicative testing.

Biosimilarity,

which requires that the biological product be highly similar to the reference product notwithstanding minor differences in clinically

inactive components and that there be no clinically meaningful differences between the product and the reference product in terms

of safety, purity and potency, can be shown through analytical studies, animal studies and a clinical trial or trials.

Interchangeability requires that a biological

product be biosimilar to the reference product and that the product can be expected to produce the same clinical results as the

reference product in any given patient and, for products administered multiple times to an individual, that the product and the

reference product may be alternated or switched after one has been previously administered without increasing safety risks or

risks of diminished efficacy relative to exclusive use of the reference biological product without such alternation or switch.

A reference biological product is granted

12 years of data exclusivity from the time of first licensure of the product, and the FDA will not accept an application for a

biosimilar or interchangeable product based on the reference biological product until four years after the date of first licensure

of the reference product.

“First licensure”

typically means the initial date the particular product at issue was licensed

in the United States.

Date of first licensure does not include the date of licensure of (and a new period of exclusivity is not

available for) a biological product if the licensure is for a supplement for the biological product or for a subsequent application

by the same sponsor or manufacturer of the biological product (or licensor, predecessor in interest, or other related entity)

for a change (not including a modification to the structure of the biological product) that results in a new indication, route

of administration, dosing schedule, dosage form, delivery system, delivery device or strength, or for a modification to the structure

of the biological product that does not result in a change in safety, purity, or potency.

Pediatric exclusivity is another type of

regulatory market exclusivity in the United States, available under the Best Pharmaceuticals for Children Act by way of its application

to biologics through the Biologics Price Competition and Innovation Act.

Pediatric exclusivity, if granted, adds six months to

existing regulatory exclusivity periods, which must be in place in order for pediatric exclusivity to apply.

This six-month exclusivity

may be granted based on the voluntary completion of a pediatric trial in accordance with an FDA issued “Written Request”

for such a trial, although FDA may issue such a Written Request at the request of the sponsor.

Companion Diagnostics

We may employ companion diagnostics to help it to more accurately

identify patients within a particular bacterial strain, both during our clinical trials and in connection with the commercialization

of our product candidates that we are developing or may in the future develop.

Companion diagnostics can identify patients who

are most likely to benefit from a particular therapeutic product;

identify patients likely to be at increased risk for serious

side effects as a result of treatment with a particular therapeutic product;

or monitor response to treatment with a particular

therapeutic product for the purpose of adjusting treatment to achieve improved safety or effectiveness.

Companion diagnostics are

regulated as medical devices by the FDA and, as such, require either clearance or approval prior to commercialization.

of risk combined with available controls to mitigate risk determines whether a companion diagnostic device requires Premarket Approval

Application approval or is cleared through the 510(k) premarket notification process.

For a novel therapeutic product for which

a companion diagnostic device is essential for the safe and effective use of the product, the companion diagnostic device should

be developed and approved or 510(k)-cleared contemporaneously with the therapeutic.

The use of the companion diagnostic device

will be stipulated in the labeling of the therapeutic product.

Government Regulation Outside of the United States

In addition to regulations in the United

States, we will be subject to a variety of regulations in other jurisdictions governing, among other things, clinical trials of

drug products as well as the approval, manufacture and distribution of our product candidates.

Because biologically sourced raw

materials are subject to unique contamination risks, their use may be restricted in some countries.

Whether or not we obtain FDA

approval for a product candidate, we must obtain the requisite approvals from regulatory authorities in foreign countries prior

to the commencement of clinical trials or marketing of the product in those countries.

If we fail to comply with applicable foreign

regulatory requirements, we may be subject to, among other things, fines, suspension or withdrawal of regulatory approvals, product

recalls, seizure of products, operating restrictions and criminal prosecution.

Clinical Trials

Certain countries outside of the United States have a regulatory process

similar to the U.S process that requires the submission of a clinical trial application much like the IND prior to the commencement of

human clinical trials.

In the European Union, for example, a clinical trial application, or CTA, must be submitted for each clinical trial

to the national health authority and an independent ethics committee in each country in which the trial is to be conducted, much like

the FDA and an IRB, respectively.

CTAs must be accompanied by an investigational medicinal product dossier with supporting information

prescribed by the Clinical Trials Directive (and corresponding national laws of the member states) and further detailed in applicable

guidance documents.

Once the CTA is approved in accordance with a country’s requirements, the clinical trial may proceed.

process to the one described for the European Union is required in Israel for initiation of clinical trials.

The requirements and process

governing the conduct of clinical trials vary from country to country.

In all cases, the clinical trials must be conducted in accordance

with GCP and the applicable regulatory requirements and the ethical principles that have their origin in the Declaration of Helsinki.

Approval Process

In order to market our products, we must

obtain a marketing approval for each product and comply with numerous and varying regulatory requirements.

The approval procedure

varies among countries and can involve additional testing in comparison to the testing carried out for the U.S.

time required to obtain approval in foreign countries may differ substantially from that required to obtain FDA approval.

trials conducted in one country may not be accepted by regulatory authorities in other countries.

The regulatory approval process

outside the United States generally is subject to all of the same risks associated with obtaining FDA approval.

In addition, in

many countries outside the United States, it is required that the product be approved for reimbursement before the product can

be approved for sale in that country.

To obtain marketing approval of a medicinal

product under the European Union regulatory system, an applicant must submit a marketing authorization application, or MAA, under

either a centralized or a decentralized procedure.

The decentralized procedure is based on a collaboration among the member states

selected by the applicant.

In essence, the applicant chooses a ‘lead’

member state that will carry out the scientific

assessment of the MAA and review the product information.

The other member states must recognize the outcome of such assessment

and review except in case of a “serious potential risk to public health.”

The decentralized procedure results in the

grant of a national marketing authorization in each selected country.

That procedure is available for all medicinal products unless

they fall into the mandatory scope of the centralized procedure.

In practice, it is used for OTC, not highly innovative products,

generic products and, increasingly, for biosimilars.

The centralized procedure provides for

the grant of a single marketing authorization by the European Commission that is valid for all European Union member states.

centralized procedure is compulsory for certain medicinal products, including for medicinal products produced by certain biotechnological

processes, products designated as orphan medicinal products, advanced therapy medicinal products, or ATMPs, and products with

a new active substance and indicated for the treatment of certain diseases.

For products with a new active substance and indicated

for the treatment of other diseases, products that are highly innovative or for which a centralized process is in the interest

of patients, the centralized procedure is optional.

Under the centralized procedure, the Committee

for Medicinal Products for Human Use, or CHMP, the main scientific committee established at the European Medicines Agency, or

EMA, is responsible for conducting the scientific assessment of the future medicinal product.

The CHMP is also responsible for

several post-authorization and maintenance activities, such as the assessment of modifications or extensions to an existing marketing

authorization.

The maximum timeframe for the evaluation of an MAA is 210 days, excluding clock stops.

The European Commission

grants or refuses the marketing authorization, following a procedure that involves representatives of the member states.

Commission’s decision is in accordance with the CHMP scientific assessment except in very rare cases.

Pursuant to Regulation (EC) 1394/2007,

specific rules apply to ATMPs, a category that is comprised of gene therapy medical products, somatic cell therapy medicinal products,

and tissue-engineered medicinal products.

Those rules have triggered the adoption of guidelines on manufacturing, clinical trials

and pharmacovigilance that adapt the general regulatory requirements to the specific characteristics of ATMPs.

Regulation (EC)

1394/2007 introduced a “hospital exemption.”

which authorizes hospitals to develop ATMP for their internal use without

having obtained a marketing authorization and to complying with European Union pharmaceutical law.

The hospital exemption, which

is in essence a compounded ATMP, has been transposed in all Member States, sometimes in such a way that the ATMPs under the hospital

exemption are competitive alternatives to ATMPs with marketing authorization.

The broad use of the hospital exemption by national

hospitals led the European Commission to discuss with the Member States a more reasonable application of the hospital exemption

that would not undermine the common legal regime for ATMP.

Marketing authorization is valid for five

years in principle and the marketing authorization may be renewed after five years on the basis of a re-evaluation of the risk-benefit

balance by the EMA or the competent authority of the authorizing member state.

To this end, the marketing authorization holder

must provide the EMA or the competent authority with a consolidated version of the file in respect of quality, safety and efficacy,

including all variations introduced since the marketing authorization was granted, at least six months before the marketing authorization

ceases to be valid.

Once renewed, the marketing authorization is valid for an unlimited period, unless the European Commission

or the national competent authority decides, on justified grounds relating to pharmacovigilance, to proceed with one additional

Any authorization which is not followed by the actual placing of the medicinal product on the European Union market (in

case of centralized procedure) or on the market of the authorizing member state within three years after authorization ceases

to be valid (the so-called sunset clause).

Orphan Designation

Countries other than the United States

have adopted a specific legal regime to support the development and marketing of drugs and biologics for rare diseases.

For example, in the European Union, Regulation 141/2000 organizes the

grant of orphan drug designations to promote the development of products that are intended for the diagnosis, prevention or treatment

of life threatening or chronically debilitating conditions affecting not more than five in 10,000 persons in the European Economic Area

(the European Union, plus Iceland, Liechtenstein and Norway), or EEA, (or where it is unlikely that the development of the medicine would

generate sufficient return to justify the investment) and for which no satisfactory method of diagnosis, prevention or treatment has been

authorized or, if a method exists, the product would be of significant benefit to those affected.

The EMA’s Committee for Orphan

Medicinal Products, or COMP, examines if the orphan criteria are met and gives opinions thereon, and the orphan status is granted by the

European Commission.

The meeting of the criteria for orphan designation is examined again by the COMP at the time of approval of the medicinal

product, which typically occurs several years after the grant of the orphan designation.

If the criteria for orphan designation are no

longer met at that time, the European Commission withdraws the orphan status.

In the European Union, orphan drug designation

entitles the sponsor to financial incentives such as reduction of fees or fee waivers and to ten years of market exclusivity granted

following medicinal product approval.

Market exclusivity precludes the EMA or a national regulatory authority from validating

another MAA, and the European Commission or a national regulatory authority from granting another marketing authorization, for

a same or similar medicinal product and a same therapeutic indication, for that time period.

This 10-year period may be reduced

to six years if the orphan drug designation criteria are no longer met, including where it is shown that the product is sufficiently

profitable not to justify maintenance of market exclusivity.

The orphan exclusivity may be lost vis-à-vis another medicinal

product in cases the manufacturer is unable to assure sufficient quantity of the medicinal product to meet patient needs or if

that other product is proved to be clinically superior to the approved orphan product.

A drug is clinically superior if it is

safer, more effective or makes a major contribution to patient care.

Orphan drug designation must be requested before submitting

Orphan drug designation does not convey any advantage in, or shorten the duration of, the regulatory review and approval

process, and it does not afford any regulatory exclusivity until a marketing authorization is granted.

Expedited Development and Approval

Mechanisms are in place in many jurisdictions

that allow an earlier approval of the drug so that it reaches patients with unmet medical needs earlier.

The European Union, for

example, has instituted several expedited approval mechanisms including two mechanisms that are specific to the centralized procedure:

● the accelerated approval:

the EMA may reduce the maximum

timeframe for the evaluation of an MAA from 210 days to 150 days when the future medicinal

product is of major interest from the point of view of public health, in particular from

the viewpoint of therapeutic innovation.

● the conditional marketing authorization:

as part of its

marketing authorization process, the European Commission may grant marketing authorizations

on the basis of less complete data than is normally required.

A conditional marketing authorization may be granted

when the CHMP finds that, although comprehensive clinical data referring to the safety and efficacy of the medicinal product have

not been supplied, all the following requirements are met:

● the risk/benefit balance of the medicinal product is positive;

● it is likely that the applicant will be in a position

to provide the comprehensive clinical data;

● unmet medical needs will be addressed;

● the benefit to public health of the immediate availability

on the market of the medicinal product concerned outweighs the risk inherent in the fact

that additional data is still required.

The granting of a conditional marketing authorization

is typically restricted to situations in which only the clinical part of the application is not yet fully complete.

preclinical or quality data may however be accepted if duly justified and only in the case of a product intended to be used in

emergency situations in response to public health threats.

Conditional marketing authorizations are valid for

one year, on a renewable basis.

The conditions to which approval is subject will typically require the holder to complete ongoing

trials or to conduct new trials with a view to confirming that the benefit-risk balance is positive and to collect pharmacovigilance

Once the conditions to which the marketing authorization is subject are fulfilled, the conditional marketing authorization

is transformed into a regular marketing authorization.

If, however, the conditions are not fulfilled with the timeframe set by

EMA, the conditional marketing authorization ceases to be renewed.

The EMA has also implemented the so-called

“PRIME”

(PRIority MEdicines) status in order support the development and accelerate the approval of complex innovative

medicinal products addressing an unmet medical need.

PRIME status enables early dialogue with the relevant EMA scientific committees

and, possibly, some payors and thus reinforces the EMA’s scientific and regulatory support.

It also opens accelerated assessment

of the MAA as PRIME status, is normally reserved for medicinal products that may benefit from accelerated assessment, i.e., medicines

of major interest from a public health perspective, in particular from a therapeutic innovation perspective.

Finally, all medicinal products (i.e.

decentralized

and centralized procedures) may benefit from an MA “under exceptional circumstances.”

This marketing authorization

is close to the conditional marketing authorization as it is reserved to medicinal products to be approved for severe diseases

or unmet medical needs and the applicant does not hold the complete data set legally required for the grant of a marketing authorization.

However, unlike the conditional marketing authorization, the applicant does not have to provide the missing data and will never

The risk-benefit of the medicinal product is reviewed annually.

As a result, although the MA “under exceptional

circumstances”

is granted definitively, the risk-benefit balance of the medicinal product is reviewed annually and the marketing

authorization is withdrawn in case the risk-benefit ratio is no longer favorable.

Mandatory testing in the pediatric population

is required in more and more jurisdictions.

The European Union has enacted a complex and very stringent system that has inspired

other jurisdictions, including the United States and Switzerland.

Any application for approval of (i) a medicinal product containing

a new active substance or (ii) a new therapeutic indication, pharmaceutical form or route of administration of an already

authorized medicinal product which contains an active substance still protected by a supplementary protection certificate, or

SPC, or a patent that qualifies for an SPC, must include pediatric data.

Otherwise, the application is not validated by the competent

regulatory authority.

The submission of pediatric data is mandatory in those cases, even if the application concerns an adult

Submission of pediatric data is not required or fully required if the EMA granted, respectively, a full or partial waiver

to pediatric development.

Moreover, that submission can be postponed if the EMA grants a deferral in order not to delay the submission

of the MAA for the adult population.

The pediatric data are generated through

the implementation of a pediatric investigation plan, or PIP, that is proposed by the company after completion of the PK studies

in adults and agreed upon by the EMA, typically after some modifications.

The PIP lists all the studies to conduct and measures

to take in order to prove the safety and efficacy of the future medicinal product when used in children.

The EMA may agree to

modify the PIP at the company’s request.

The scope of the PIP is the adult therapeutic indication or the condition of which

the adult application is part or even the mechanism of action of the active substance, at the EMA’s quasi-discretion.

very broad discretion enables the EMA to require companies to develop children indications that are different from the adult indications.

Completion of a PIP renders the company

eligible for a pediatric reward, which can be six-month extension of the term of the SPC or, in the cases of orphan medicinal

products, two additional years of market exclusivity.

The reward is subject, among other conditions, to the PIP being fully completed,

to the pediatric medicinal product being approved in all the member states, and to the results of the pediatric studies being

mentioned, in one way or another (for example, the approval of a pediatric indication), in the summary of product characteristics

of the product.

Post-Marketing Requirements

Many countries impose post-marketing requirements

similar to those imposed in the United States, in particular safety monitoring or pharmacovigilance.

In the European Union, pharmacovigilance

data are the basis for the competent regulatory authorities imposing the conduct of post-approval safety or efficacy study, including

on off-label use.

Non-compliance with those requirements can result in significant financial penalties as well as the suspension

or withdrawal of the marketing authorization.

Supplementary Protection Certificate and Regulatory Exclusivities

In some countries other than the United

States, some of our patents may be eligible for limited patent term extension, depending upon the timing, duration and specifics

of the regulatory approval of our product candidates and any future product candidates.

Furthermore, authorized drugs and biologics

may benefit from regulatory exclusivities (in additional to patent protection resulting from patents).

In the European Union, Regulation (EC) 469/2009 institutes SPCs.

SPC is an extension of the term of a patent that compensates for the patent protection lost because of the legal requirements to conduct

safety and efficacy tests and to obtain a marketing authorization before placing a medicinal product on the market.

An SPC may be applied

for any active substance that is protected by a “basic patent”

(a patent chosen by the patent holder, which can be a product,

process or application patent) and has not been placed on the market as a medicinal product before having obtained a marketing authorization

in accordance with European Union pharmaceutical law.

The term of the SPC is maximum five years, and the combined patent and SPC protection

may not exceed fifteen years from the date of the first marketing authorization in the EEA.

SPC rights are restricted by both the basic

patent and the marketing authorization, i.e., the SPC grants the same rights as those conferred by the basic patent but limited to the

active substance covered by the marketing authorization (and any use as medicinal product approved afterwards).

While SPC are regulated at the European

level, they are granted by the national patent offices.

The grant of an SPC requires a basic patent granted by the national patent

office and a marketing authorization, which is the first marketing authorization for the active substance as a medicinal product

in the country.

Furthermore, no SPC must have already been granted to the active substance, and the application for the SPC must

be filed with the national patent office within six months of the first marketing authorization in the EEA or the grant of the

basic patent, whichever is the latest.

In the future, we may apply for an SPC

for one or more of our currently owned or licensed European patents to add patent life beyond their current expiration date, depending

on the expected length of the clinical trials and other factors involved in the filing of the relevant MAA.

Furthermore, in the European Union, medicinal

products may benefit from the following regulatory exclusivities:

data exclusivity, market protection, market exclusivity, and

pediatric reward.

A medicinal product that contains a new

active substance (reference medicinal product) is granted eight years of data exclusivity followed by two years of market protection.

Data exclusivity prevents other companies from referring to the non-clinical and clinical data in marketing authorization dossier

of the reference medicinal product for submission of generic MAA purposes, and market protection prevents other companies from

placing generics on the market.

Pursuant to the concept of global marketing authorization, any further development of that medicinal

product (e.g., new indication, new form, change to the active substance) by the marketing authorization holder does not trigger

any new or additional protection.

The authorization of any new development is considered as “falling”

into the initial

marketing authorization with regard to regulatory protection;

hence, the new development only benefits from the regulatory protection

that remains when it is authorized.

The only exception is a new therapeutic indication that is considered as bringing a significant

clinical benefit in comparison to the existing therapies.

Such new indication will add one-year of market protection to the global

marketing authorization, provided that it is authorized within the first eight years of authorization (i.e., during the data exclusivity

Moreover, a new therapeutic indication of a “well-established substance”

benefits from one-year data exclusivity

but limited to the non-clinical and clinical data supporting the new indication.

Any active substance approved for at least ten

years in the EEA qualifies as well-established substance.

Biosimilars may be approved through an

abbreviated approval pathway after the expiration of the eight-year data exclusivity period and may be marketed after the 10 or

11-year market protection period.

The approval of biosimilars requires the applicant to demonstrate similarity between the biosimilar

and the biological medicinal product and to submit the non-clinical and clinical data defined by the EMA.

The biosimilar legal

regime has been mainly developed through EMA’s scientific guidelines applicable to categories of biological active substances.

Unlike in the United States, interchangeability is regulated by each member state.

Market exclusivity is a regulatory protection

exclusively afforded to medicinal products with an orphan status.

Market exclusivity precludes the EMA or a national regulatory

authority from validating another MAA, and the European Commission or a national regulatory authority from granting another marketing

authorization, for a same or similar medicinal product and a same therapeutic indication, for a period of ten years from approval

Pediatric reward is another regulatory

Completion of a PIP renders the company eligible for a pediatric reward, which can be six-month extension of the

term of the SPC or, in the cases of orphan medicinal products, two additional years of market exclusivity (see above).

a PIP is completed on a voluntary basis, i.e., for an approved medicinal product that is not or no longer protected by an SPC

or a basic patent, the pediatric reward takes the form of a “pediatric use marketing authorization”, or PUMA.

special authorization does not fall into the global marketing authorization and thus benefits from eight years of data exclusivity

followed by two or three years of market protection.

Cosmetics Regulations

In the United States, cosmetics are regulated

by the FDA under the FDCA.

The FDCA defines cosmetics as “(1) articles intended to be rubbed, poured, sprinkled, or sprayed

on, introduced into, or otherwise applied to the human body or any part thereof for cleansing, beautifying, promoting attractiveness,

or altering the appearance, and (2) “articles intended for use as a component of any such articles;

except that such term

shall not include soap.”

The FDA clarifies that cosmetics “are intended to beautify, promote attractiveness, alter

appearance or cleanse”

and explicitly states that cosmetics are “not …

intended to effect structure or function

of the body.”

Manufacturers must ensure that cosmetics are safe for use as intended prior to marketing.

To determine the

safety of cosmetics, the FDA considers the ingredient safety, trace chemicals contamination and microbiological safety.

Even “good”

microbes may only be present at certain levels to meet the FDA’s microbiologic safety standards for cosmetics.

Product labeling

must be truthful and not misleading and present all required labeling elements (including statement of identity, net weight, ingredients,

and any relevant warnings).

In some cases, products that are intended

for cosmetic use, but also have a drug application, are classified as both a cosmetic and a drug.

Under the FDCA, a “drug”

is defined an article “intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease,”

an article “(other than food) intended to affect the structure or any function of the body,”

and article intended

as a component of any of the previously listed articles.

Although product claims inform FDA’s and the consumer’s understanding

of a product’s intended use, FDA will also consider ingredients and the mode of action to make a final determination as

to the actual intended use of a product.

Biological products, more commonly referred to as biologics, are defined by the PHSA.

Biologics also meet the definition of drug under the FDCA and FDA and include therapeutic products containing microorganisms.

All drug products, regardless if they are also cosmetics, must meet all FDA requirements, including premarket approval.

of the approval process, manufacturers must demonstrate that drugs are safe and effective for their intended uses and develop

labeling, which also must be approved.

If a substance has an open drug application with the FDA or it is an already approved drug,

it cannot be a cosmetic.

A product claiming to impart activity to

the skin may fall under either one or both definitions described above, according to the intended use that the manufacturer establishes

for the product.

That is, a product that claims only to alter the appearance of the skin would be regulated solely as a cosmetic,

while a product that claims to induce a change in the structure or function of the body (skin included) would be regulated as

Under the FDCA, a product that makes both types of claims would be considered both a cosmetic and a drug.

of classification, however, in the context of the FDCA, does not make the product’s composition irrelevant.

the classification of the product primarily depends on the claims associated with the product, the mention of drug substances

on the product label (i.e.

in the ingredient declaration) can be construed as implied drug claims.

From a practical point of view, and presuming

that safety has been substantiated, the manufacturers of skin care products that could potentially affect the structure or function

of the skin are confronted with a dilemma:

if the product is marketed as a cosmetic, no claims may be made about any “active”

ingredients that may alter the skin;

if a physiological effect is claimed, on the other hand, the manufacturer would be faced

with a lengthy and costly NDA process or a possible enforcement action by the FDA.

Violations of the FDCA are generally fall

under at least one of two provisions:

Products that contain substances that may be injurious to health or are otherwise impermissible

(including the presence of a drug substances without proper labeling) are adulterated, and products that are not properly labeled

(including claims) are misbranded.

The presence of drug substances in a product that is solely being marketed as a cosmetic (and

not also as an approved drug) would likely render the product adulterated in the eyes of FDA.

The FDCA requires that every cosmetic product

and its individual ingredients be substantiated for safety and that product labeling be truthful and not misleading.

manufacturers are responsible for ensuring that products comply with the law before they are marketed.

If FDA determines that

a cosmetic product does not meet the requirements established by law or is otherwise adulterated or misbranded under the FDCA,

FDA has the authority to:

● Ban or restrict cosmetic ingredients for safety reasons

● Refuse importation of cosmetics that may be adulterated

or misbranded

● Mandate warning labels

● Inspect manufacturing facilities

● Issue warning letters

● Seize unsafe or misbranded products

● Enjoin unlawful activities

● Prosecute and jail violators

● Work with cosmetic manufacturers in implementing nationwide

product recalls

● Collect samples for examination and analysis as part of

cosmetic plant inspections, import inspections, and follow-up to complaints of adverse

● Conduct research on cosmetic and personal care products

and ingredients to address safety concerns

Cosmetic products must be labeled in accordance with the Fair Packaging

and Labeling Act and FDCA, including ingredient labeling.

Cosmetic product advertising is also subject to regulation.

Any claims made

with regards to product efficacy to the extent such claims may affect a consumer’s choice whether to purchase a product or not,

are regulated by the Federal Trade Commission under the authority of the Federal Trade Commission Act, or FTCA.

European Union Cosmetics Regulation

Regulation (EC) No.

1223/2009, or the Cosmetic

Regulation, is the key European legislation governing finished cosmetics products in the European Union.

The European Union’s

framework of cosmetics regulations are binding on all member states and is enforced at the national level.

Over the years, the

European Union cosmetics legal regime has been adopted by many countries around the world.

Under the Cosmetic Regulation, a “cosmetic

product”

means any substance or mixture intended to be placed in contact with external parts of the human body (epidermis,

hair system, nails, lips and external genital organs) or with the teeth and the mucous membranes of the oral cavity with a view

exclusively or mainly to cleaning them, perfuming them, changing their appearance, protecting them, keeping them in good condition

or correcting body odors.

A substance or mixture intended to be ingested, inhaled, injected or implanted into the human body shall

not be considered to be a cosmetic product, nor shall a product (i) the composition of which is such that it has a significant

action on the body through a pharmacological, immunological or metabolic action;

or (ii) for which medical claims are made.

such a product is a medicinal product, not a cosmetic.

The company that is ‘responsible’

for placing a cosmetic product on the European Union market is subject to a series of obligations.

In particular:

● Manufacture cosmetic products in compliance with good

manufacturing practice.

● Create for each cosmetic product a product information

file, or PIF, that contains, among other information, “proof of the effect claimed

for the cosmetic product, where justified by the nature of the effect or product”

and the test results that demonstrate the claimed effects for the cosmetics product.

● Submit information on every product through the Cosmetic

Products Notification Portal, or CPNP.

● Comply with Regulation (EU) No.

655/2013 that lists common

criteria for claims.

● Report adverse experiences or keep them available for

inspection by the competent authorities.

Poison control centers have information available

on standard formulations for medical emergency treatment.

The European Union legal regime is a risk-based

legislation, with consumer safety as the main goal.

As such, proof of the safety of the finished cosmetic product and each of

its ingredients is the responsibility of the manufacturer or the importer in the European Union.

The safety assessment report

is a key part of the PIF.

With the exception of color additives,

sunscreen active ingredients and preservatives, no pre-market approval is needed for cosmetics.

However, the Cosmetic Regulation

includes a list of ingredients that are prohibited and a list of ingredients that are restricted in cosmetic products.

Nano-materials

are authorized, provided that their presence is disclosed on the label.

Moreover, animal testing is prohibited for finished cosmetic

products and their ingredients.

Each member state appoints a competent

authority to enforce the Cosmetic Regulation in its territory and to cooperate with each other and the European Commission.

European Commission is responsible for driving consistency in the way the Cosmetic Regulation is enforced.

Healthcare Laws and Compliance Requirements

In addition to FDA restrictions on the

marketing of pharmaceutical products, we may be subject to various federal and state laws targeting fraud and abuse in the healthcare

These laws may impact, among other things, our business or financial arrangements and relationships through which we

market, sell and distribute the products, if any, for which we obtain approval.

In addition, we may be subject to patient privacy

regulation by both the federal government and the states in which we conduct our business.

The laws that may affect our ability

to operate include:

● the federal Anti-Kickback Statute, which prohibits, among

other things, knowingly and willfully soliciting, receiving, offering or paying any remuneration

(including any kickback, bribe, or rebate), directly or indirectly, overtly or covertly,

in cash or in kind, to induce, or in return for, either the referral of an individual,

or the purchase, lease, order or recommendation 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 the Medicare and Medicaid programs;

a person or entity does not need to have

actual knowledge of the federal Anti-Kickback Statute or specific intent to violate it

to have committed a violation.

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

money penalties statute;

● federal civil and criminal false claims laws and civil

monetary penalties laws, such as the federal False Claims Act, which impose criminal

and civil penalties and authorize civil whistleblower or qui tam

actions, against individuals or entities for, among

other things:

knowingly presenting, or causing to be presented, to the federal government, claims for payment that are false or

making, using or causing to be made or used, a false statement or record material to a false or fraudulent claim or

obligation to pay or transmit money or property to the federal government;

or knowingly concealing or knowingly and improperly

avoiding or decreasing an obligation to pay money to the federal government;

● the anti-inducement law, which prohibits, among other

things, the offering or giving of remuneration, which includes, without limitation, any

transfer of items or services for free or for less than fair market value (with limited

exceptions), to a Medicare or Medicaid beneficiary that the person knows or should know

is likely to influence the beneficiary’s selection of a particular supplier of

items or services reimbursable by a federal or state governmental program;

HIPAA, which created new federal criminal statutes that prohibit knowingly and willfully executing, or attempting to execute, a scheme to defraud any healthcare benefit program or obtain, by means of false or fraudulent pretenses, representations, or promises, any of the money or property owned by, or under the custody or control of, any healthcare benefit program, regardless of the payor (e.g., public or private) and knowingly and willfully falsifying, concealing or covering up by any trick or device a material fact or making any materially false statements in connection with the delivery of, or payment for, healthcare benefits, items or services relating to healthcare matters;

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;

● HIPAA, as amended by the Health Information Technology

for Economic and Clinical Health Act of 2009, and their respective implementing regulations,

which impose requirements on certain covered healthcare providers, health plans, and

healthcare clearinghouses as well as their respective business associates that perform

services for them that involve the use, or disclosure of, individually identifiable health

information, relating to the privacy, security and transmission of individually identifiable

health information;

the federal transparency requirements under the Affordable Care Act, or ACA, including the provision commonly referred to as the Physician Payments Sunshine Act, which requires manufacturers of drugs, devices, biologics and medical supplies for which payment is available under Medicare, Medicaid or the Children’s Health Insurance Program to report annually to the U.S.

Department of Health and Human Services information related to payments or other transfers of value made to physicians (defined to include doctors, dentists, optometrists, podiatrists and chiropractors) and teaching hospitals, as well as ownership and investment interests held by the physicians described above and their immediate family members;

● federal government price reporting laws, which require

us to calculate and report complex pricing metrics in an accurate and timely manner to

government programs;

● federal consumer protection and unfair competition laws,

which broadly regulate marketplace activities and activities that potentially harm consumers.

Additionally, we are subject to state and

foreign equivalents of each of the healthcare laws described above, among others, some of which may be broader in scope and may

apply regardless of the payor.

states have adopted laws similar to the federal Anti-Kickback Statute, some of which

apply to the referral of patients for healthcare services reimbursed by any source, not just governmental payors, including private

In addition, some states have passed laws that require pharmaceutical companies to comply with the April 2003 Office

of Inspector General Compliance Program Guidance for Pharmaceutical Manufacturers and/or the Pharmaceutical Research and Manufacturers

of America’s Code on Interactions with Healthcare Professionals.

Several states also impose other marketing restrictions

or require pharmaceutical companies to make marketing or price disclosures to the state.

There are ambiguities as to what is required

to comply with these state requirements and if we fail to comply with an applicable state law requirement we could be subject

to penalties.

Finally, there are state and foreign laws governing the privacy and security of health information, many of which

differ from each other in significant ways and often are not pre-empted by HIPAA, thus complicating compliance efforts.

Because of the breadth of these laws and

the narrowness of the statutory exceptions and safe harbors available, it is possible that some of our business activities could

be subject to challenge under one or more of such laws.

Violations of fraud and abuse laws may

be punishable by criminal and/or civil sanctions, including penalties, fines, imprisonment and/or exclusion or suspension from

federal and state healthcare programs such as Medicare and Medicaid and debarment from contracting with the U.S.

addition, private individuals have the ability to bring actions on behalf of the U.S.

government under the federal False Claims

Act as well as under the false claims laws of several states.

Law enforcement authorities are increasingly

focused on enforcing fraud and abuse laws, and it is possible that some of our practices may be challenged under these laws.

to ensure that our current and future business arrangements with third parties, and our business generally, will comply with applicable

healthcare laws and regulations will involve substantial costs.

It is possible that governmental authorities will conclude that

our business practices, including our arrangements with physicians and other healthcare providers, some of whom receive stock

options as compensation for services provided, may not comply with current or future statutes, regulations, agency guidance or

case law involving applicable fraud and abuse or other healthcare laws and regulations.

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, including the imposition of civil, criminal and administrative penalties, damages, disgorgement, monetary fines,

imprisonment, possible exclusion from participation in Medicare, Medicaid and other federal healthcare programs, contractual damages,

reputational harm, diminished profits and future earnings, and curtailment of our operations, any of which could adversely affect

our ability to operate our business and our results of operations.

In addition, the approval and commercialization of any of our

product candidates outside the United States will also likely subject us to foreign equivalents of the healthcare laws mentioned

above, among other foreign laws.

If any of the physicians or other healthcare

providers or entities with whom we expect to do business are found to be not in compliance with applicable laws, they may be subject

to criminal, civil or administrative sanctions, including exclusions from government funded healthcare programs, which may also

adversely affect our business.

Much like the Anti-Kickback Statute prohibition in the United States,

the provision of benefits or advantages to physicians to induce or encourage the prescription, recommendation, endorsement, purchase,

supply, order or use of medicinal products is also prohibited in the European Union.

The provision of benefits or advantages to physicians

is mainly governed by the national anti-bribery laws of the member states, such as the UK Bribery Act 2010, or national anti-kickback

provisions (France, Belgium, etc.).

Infringement of these laws could result in substantial fines and imprisonment.

In certain member states,

payments made to physicians must be publicly disclosed.

Moreover, agreements with physicians often must be the subject of prior notification

and approval by the physician’s employer, his or her competent professional organization and/or the regulatory authorities of the

individual member states.

These requirements are provided in the national laws, industry codes or professional codes of conduct, applicable

in the member states.

Failure to comply with these requirements could result in reputational risk, public reprimands, administrative penalties,

fines or imprisonment.

Additional Regulation

In addition to the foregoing, state and

federal laws regarding environmental protection and hazardous substances, including the Occupational Safety and Health Act, the

Resource Conservancy and Recovery Act and the Toxic Substances Control Act, affect our business.

These and other laws govern our

use, handling and disposal of various biological, chemical and radioactive substances used in, and wastes generated by, our operations.

If our operations result in contamination of the environment or expose individuals to hazardous substances, we could be liable

for damages and governmental fines.

We believe that we are in material compliance with applicable environmental laws and that

continued compliance therewith will not have a material adverse effect on our business.

We cannot predict, however, how changes

in these laws may affect our future operations.

Foreign Corrupt Practices Act

Foreign Corrupt Practices Act,

to which we are subject, prohibits corporations and individuals from engaging in certain activities to obtain or retain business

or to influence a person working in an official capacity.

It is illegal to pay, offer to pay or authorize the payment of anything

of value to any foreign government official, government staff member, political party or political candidate in an attempt to

obtain or retain business or to otherwise influence a person working in an official capacity.

Similar rules apply to many other

countries worldwide such as France (“

Loi Sapin”

) or the United Kingdom (UK Bribery Act).

Healthcare Reform

A primary trend in the U.S.

healthcare industry and elsewhere is cost

Government authorities and other third-party payors have attempted to control costs by limiting coverage and the amount of

reimbursement for particular medical products.

For example, in March 2010, the ACA was enacted, which, among other things, increased the

minimum Medicaid rebates owed by most manufacturers under the Medicaid Drug Rebate Program;

introduced a new methodology by which rebates

owed by manufacturers under the Medicaid Drug Rebate Program are calculated for drugs that are inhaled, infused, instilled, implanted

extended the Medicaid Drug Rebate Program to utilization of prescriptions of individuals enrolled in Medicaid managed care

imposed mandatory discounts for certain Medicare Part D beneficiaries as a condition for manufacturers’

outpatient drugs

coverage under Medicare Part D;

subjected drug manufacturers to new annual fees based on pharmaceutical companies’

share of sales

to federal healthcare programs;

imposed a new federal excise tax on the sale of certain medical devices;

created 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 the Center for Medicare Innovation at the CMS to test innovative payment and service delivery models

to lower Medicare and Medicaid spending.

Since its enactment, there have been a number of significant changes

On October 13, 2017, President Trump signed an Executive Order terminating the cost-sharing subsidies that reimburse insurers

under the ACA.

Several state Attorneys General filed suit to stop the administration from terminating the subsidies, but their request

for a restraining order was denied by a federal judge in California on October 25, 2017.

In addition, CMS has recently proposed regulations

that would give states greater flexibility in setting benchmarks for insurers in the individual and small group marketplaces, which may

have the effect of relaxing the essential health benefits required under the ACA for plans sold through such marketplaces.

2017, President Trump signed an Executive Order directing federal agencies with authorities and responsibilities under the ACA to waive,

defer, grant exemptions from, or delay the implementation of any provision of the ACA that would impose a fiscal or regulatory burden

on states, individuals, healthcare providers, health insurers, or manufacturers of pharmaceuticals or medical devices.

The Tax Cuts and Jobs Act of 2017, includes a provision repealing, effective January 1, 2019, the tax-based shared

responsibility payment imposed by the ACA on certain individuals who fail to maintain qualifying health coverage for all or part of a

year that is commonly referred to as the “individual mandate.”

Additionally, on January 22, 2018, President Trump signed a

continuing resolution on appropriations for fiscal year 2018 that delayed the implementation of certain ACA-mandated fees, including the

so-called “Cadillac”

tax on certain high cost employer-sponsored insurance plan, the annual fee imposed on certain health

insurance providers based on market share, and the medical device exercise tax on non-exempt medical devices.

Further, the Bipartisan

Budget Act of 2018, among other things, amends the ACA, effective January 1, 2019, to reduce the coverage gap in most Medicare drug plans,

commonly referred to as the “donut hole.”

Congress may consider other legislation to replace or modify elements of

We continue to evaluate the effect that the ACA and its possible repeal, replacement or further modification could have on our

It is uncertain the extent to which any such changes may impact our business or financial condition.

In addition, the Budget Control Act of

2011 and the Bipartisan Budget Act of 2015 led to aggregate reductions of Medicare payments to providers of up to 2% per fiscal

year that will remain in effect through 2027 unless additional Congressional action is taken.

Further, on January 2, 2013, the

American Taxpayer Relief Act was signed into law, which, among other things, 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.

More recently, there has been heightened governmental scrutiny

over the manner in which manufacturers set prices for their marketed products, which have resulted in several recent Congressional

inquiries and proposed bills designed to, among other things, bring more transparency to product pricing, review the relationship

between pricing and manufacturer patient programs, and reform government program reimbursement methodologies for pharmaceutical

Individual states in the United States have also become increasingly active in passing legislation and implementing

regulations designed to control pharmaceutical product pricing, including price or patient 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.

We expect that additional foreign, federal

and state healthcare reform measures will be adopted in the future, any of which could limit the amounts that federal and state

governments will pay for healthcare products and services, which could result in limited coverage and reimbursement and reduced

demand for our products, once approved, or additional pricing pressures.

Coverage and Reimbursement

Significant uncertainty exists as to the

coverage and reimbursement status of any products for which we obtain regulatory approval.

In the United Sates, cosmetics are

not generally eligible for coverage and reimbursement and thus any products that are marketed as cosmetics will not be covered

or reimbursed.

In the United States and markets in other countries, sales of any products for which we receive regulatory approval

for commercial sale will depend, in part, on the availability of coverage and reimbursement from third-party payors.

payors include government authorities, managed care providers, private health insurers and other organizations.

The process for

determining whether a payor will provide coverage for a product may be separate from the process for setting the reimbursement

rate that the payor will pay for the product.

Third-party payors may limit coverage to specific products on an approved list,

or formulary, which might not include all of the FDA-approved products for a particular indication.

A decision by a third-party

payor not to cover our products could reduce physician utilization of our products once approved and have a material adverse effect

on our sales, results of operations and financial condition.

Moreover, a payor’s decision to provide coverage for a product

does not imply that an adequate reimbursement rate will be approved.

Adequate third-party reimbursement may not be available to

enable us to maintain price levels sufficient to realize an appropriate return on our investment in product development.

In addition, coverage and reimbursement

for products can differ significantly from payor to payor.

One third-party payor’s decision to cover a particular medical

product or service does not ensure that other payors will also provide coverage for the medical product or service, or will provide

coverage at an adequate reimbursement rate.

As a result, the coverage determination

process will require us to provide scientific and clinical support for the use of our products to each payor separately and will

be a time-consuming process.

Third-party payors are increasingly challenging

the price and examining the medical necessity and cost-effectiveness of medical products and services, in addition to their safety

and efficacy.

In order to obtain and maintain coverage and reimbursement for any product, we may need to conduct expensive clinical

trials in order to demonstrate the medical necessity and cost-effectiveness of such product, in addition to the costs required

to obtain regulatory approvals.

If third-party payors do not consider a product to be cost-effective compared to other available

therapies, they may not cover the product as a benefit under their plans or, if they do, the level of payment may not be sufficient

to allow a company to sell its products at a profit.

of the United States, the pricing of pharmaceutical products is subject to governmental control in many countries.

in the European Union, pricing and reimbursement schemes vary widely from member state to member state.

Some countries provide

that products may be marketed only after a reimbursement price has been agreed.

Some countries may require the completion of additional

studies that compare the cost-effectiveness of a particular therapy to currently available therapies or so-called health technology

assessments, in order to obtain reimbursement or pricing approval.

Other countries may allow companies to fix their own prices

for products, but monitor and control product volumes and issue guidance to physicians to limit prescriptions.

Efforts to control

prices and utilization of pharmaceutical products and medical devices will likely continue as countries attempt to manage healthcare

expenditures .

Data Privacy and Security Laws

Numerous state, federal and foreign laws, including consumer protection

laws and regulations, govern the collection, dissemination, use, access to, confidentiality and security of personal information, including

health-related information.

In the United States, numerous federal and state laws and regulations, including data breach notification

laws, health information privacy and security laws, including Health Insurance Portability and Accountability Act of 1996, or HIPAA, and

federal and state consumer protection laws and regulations (e.g., Section 5 of the FTC Act), that govern the collection, use, disclosure,

and protection of health-related and other personal information could apply to our operations or the operations of our partners.

certain state and non-U.S.

laws, such as the California Consumer Protection Act, the California Privacy Rights Act, and the General Data

Protection Regulation, or GDPR, govern the privacy and security of personal information, including health-related information in certain

circumstances, some of which are more stringent than HIPAA and many of which differ from each other in significant ways and may not have

the same effect, 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.

Privacy and security laws, regulations, and other obligations are

constantly evolving, may conflict with each other to complicate compliance efforts, and can result in investigations, proceedings, or

actions that lead to significant civil and/or criminal penalties and restrictions on data processing.

Material Agreements

License Agreements

License Agreement with Yeda

In 2015, BiomX Ltd.

entered into the Research

and License Agreement, dated as of June 22, 2015, with Yeda, or, as amended, the Yeda 2015 License Agreement, the technology transfer

office of the WIS, pursuant to which BiomX Ltd.

received an exclusive worldwide license to certain know-how and research information

related to the development, testing, manufacture, production and sale of microbiome-based therapeutic product candidates, including

candidates specified in the agreement, which are used in our phage discovery platform, as well as patents, research and other

rights to phage product candidates resulting from the work of the consultants identified in the agreement and further research

conducted at the WIS which BiomX Ltd.

In connection with this license, we are to pay a non-refundable license

fee of $10,000 per year.

In addition, BiomX Ltd.

contributed an aggregate of approximately $2.0 million to the research budget agreed

upon in the Yeda 2015 License Agreement.

We are also required to pay tiered royalties in the low single digits on net sales of products

and diagnostic kits covered by the Yeda 2015 License Agreement, subject to reductions as described therein.

The products and diagnostic

kits covered by the license agreement include those directed to IBD, CRC, and any other indications that may be treated by phage-based

therapies, as well as related technology platforms.

If we sublicense our rights under this agreement we will be obligated to pay Yeda

additional sublicense royalties expressed as a percentage of the sublicensing receipts described in the agreement received ranging from

the mid-teens to the mid-twenties.

We are obligated to pay filing and maintenance expenses in respect of patents licensed under the Yeda

2015 License Agreement.

In connection with the Yeda 2015 License Agreement, BiomX Ltd.

also issued certain ordinary shares which were

subsequently converted to 193,406 shares of our common stock, par value $0.0001 per share, or Common Stock, as part of the Business Combination

(as defined below).

In the event of certain mergers and acquisitions we are party to, we are obligated to pay Yeda an amount equivalent

to 1% of the consideration received under such transaction.

Unless terminated earlier by either party,

the license granted will remain in effect in each country and for each product developed based on the license until the later

of the expiration of the last licensed patent (which is expected to be in 2039) in such country for such product, and eleven years

from the date of first commercial sale of such product in such country for such product.

The Yeda 2015 License Agreement terminates

upon the later of the expiration of the last of the patents covered under the agreement, and the expiry of a continuous 15-year

period during which there has not been a first commercial sale of any product in any country.

Yeda may also terminate the agreement

if we fail to observe certain diligence and development requirements and milestones as described in the agreement.

may terminate the agreement for the material uncured breach of the other party after a notice period, or the other party’s

winding up, bankruptcy, insolvency, dissolution or other similar discontinuation of business.

Upon termination of the agreement,

other than due to the passage of time, we are required to grant to Yeda a non-exclusive, irrevocable, perpetual, fully paid-up,

sublicensable, worldwide license in respect of our rights in know-how and research results as described in the Yeda 2015 License

Agreement, provided that if Yeda subsequently grants a license to a third party that utilizes our rights, we are entitled to share

in the net proceeds actually received by Yeda arising out of that license, subject to a cap based on the development expenses

that we incur in connection with the Yeda 2015 License Agreement.

We consult with Yeda with respect to patent

prosecution and maintenance decisions.

Yeda is primarily responsible for prosecution and maintenance with respect to Licensed

Information (as defined in the license) and we are responsible for prosecution and maintenance with respect to Subsequent Results

(as defined in the license).

We and Yeda are both entitled to consultation rights.

We are responsible for costs associated with

prosecution and maintenance of all patents and applications.

We are entitled to enforce the patent rights under the license upon

approval by Yeda.

Yeda may elect to join the lawsuit, but we are responsible for all litigation-related expenses.

Yeda reserves the right

to bring its own actions if we do not notify Yeda of our intent to enforce a right or bring an action after we initially notified Yeda

of the potential action.

Exclusive Patent License Agreement with

Keio and JSR Corporation, or JSR, for IBD

entered into an Exclusive Patent

License Agreement with Keio, and JSR on December 15, 2017, as amended, pursuant to which BiomX Ltd.

was granted an exclusive,

royalty-bearing, worldwide, perpetual sublicense by JSR to certain patent rights related to our IBD program.

Specifically, these

patent rights relate to bacterial targets that have been observed to be related to IBD and the phage that were observed to eradicate

these bacterial targets.

We paid JSR a license issue fee of $10,000 and have agreed to pay annual

fees ranging from $15,000 to $25,000 in each subsequent year.

In addition to the license fees, we have agreed to make payments upon the

satisfaction of certain clinical and regulatory milestones up to an aggregate of $3.2 million, of which $40,000 was paid in February 2021.

We are also required to pay tiered royalties expressed as a percentage of annual net sales of products developed under the agreement in

the low single digits.

If we sublicense our rights under this agreement, we will be obligated to pay sublicense royalties expressed as

a percentage of sublicense income received, including any license signing fee, license maintenance fee, distribution or joint marketing

fee and milestone payments, ranging in the high single digits to the low teens.

Our payments under this agreement are subject to reductions

as set forth therein.

Unless earlier terminated, this agreement

will expire on the later of the date on which all issued patents and filed patent applications have expired (which is expected

to be in 2039), or been abandoned, withdrawn, rejected, revoked or invalidated, and five years from the date of first commercial

sale of a product developed under the agreement in any country or, if later, when the product ceases to be covered by a valid

claim in the United States, European Union or Japan.

JSR may terminate this agreement if we fail to pay the amounts due under

this agreement, or upon our winding up, bankruptcy, insolvency, dissolution or other similar discontinuation of business, or if

we breach the material terms of this agreement and such breach is uncured.

We may terminate this agreement at any time upon three

months’

advance written notice to JSR.

and other joint owners are responsible for maintenance and prosecution of patents that fall under Joint Patent Rights.

entitled to the opportunity to advise and approve decisions that would have a material adverse impact on the scope of the claims.

JSR is responsible for patents that fall under Patent Rights and BiomX is entitled to advise with respect to patent counsel, scope

of claims, and other matters.

BiomX is entitled to bring enforcement actions (in BiomX’s name alone and at BiomX’s

own expense).

BiomX is required to obtain JSR’s prior written consent for each action BiomX brings with respect to the Patent

Patent License Agreement with Keio and JSR for PSC

has entered into an Exclusive Patent License Agreement with Keio and JSR on April 22, 2019, pursuant to which BiomX was granted

an exclusive, royalty-bearing, worldwide, perpetual sublicense by JSR to certain patent rights related to BiomX’s PSC program.

Specifically, these patent rights relate to bacterial targets that have been observed to be related to PSC and the phage that

were observed to eradicate these bacterial targets.

paid JSR a license issue fee of $20,000 and has agreed to pay annual fees ranging from $15,000 to $25,000 in each subsequent year.

In addition to the license fees, BiomX has agreed to make payments upon the satisfaction of certain clinical and regulatory milestones

up to an aggregate of $3.2 million.

BiomX is also required to pay tiered royalties expressed as a percentage of annual net sales

of products developed under the agreement in the low single digits.

If BiomX sublicenses BiomX’s rights under this agreement,

BiomX will be obligated to pay sublicense royalties expressed as a percentage of sublicense income received, including any license

signing fee, license maintenance fee, distribution or joint marketing fee and milestone payments, ranging in the high single digits

to the low teens.

BiomX’s payments under this agreement are subject to reductions as set forth therein.

earlier terminated, this agreement will expire on the later of the date on which all issued patents and filed patent applications

have expired (which is expected to be in 2039), or been abandoned, withdrawn, rejected, revoked or invalidated, and five years

from the date of first commercial sale of a product developed the agreement in any country or, if later, when the product ceases

to be covered by a valid claim in the United States, European Union or Japan.

The counterparties may terminate this agreement

if BiomX fails to pay the amounts due under this agreement, or upon BiomX’s winding up, bankruptcy, insolvency, dissolution

or other similar discontinuation of business, or if BiomX breaches the material terms of this agreement and such breach is uncured.

BiomX may terminate this agreement at any time upon three months’

We, Keio and JSR are responsible for maintenance and prosecution of

patents that are to be jointly owned by the parties.

JSR is entitled to the opportunity to advise and approve decisions that would have

a material adverse impact on the scope of the claims.

JSR is responsible for patents that are listed in such agreement and we are entitled

to advise with respect to patent counsel, scope of claims, and other matters.

We are entitled to bring enforcement actions (in our name

alone and at our own expense).

We are required to obtain JSR’s prior written consent for each action we bring with respect to the

Patent Rights only.

Exclusive Patent License Agreement with

Keio and JSR for PSC

We entered into an additional Exclusive

Patent License Agreement with Keio and JSR on April 22, 2019, pursuant to which we were granted an exclusive, royalty-bearing,

worldwide, perpetual sublicense by JSR to certain patent rights related to our PSC program.

Specifically, these patent rights

relate to bacterial targets that have been observed to be related to PSC and the phage that were observed to eradicate these bacterial

We paid JSR a license issue fee of $20,000

and have agreed to pay annual fees ranging from $15,000 to $25,000 in each subsequent year.

In addition to the license fees, we

have agreed to make payments upon the satisfaction of certain clinical and regulatory milestones up to an aggregate amount of

$3.2 million.

We are also required to pay tiered royalties expressed as a percentage of annual net sales of products developed

under the agreement in the low single digits.

If we sublicense our rights under this agreement, we will be obligated to pay sublicense

royalties expressed as a percentage of sublicense income received, including any license signing fee, license maintenance fee,

distribution or joint marketing fee and milestone payments, ranging in the high single digits to the low teens.

Our payments under

this agreement are subject to reductions as set forth therein.

Unless earlier terminated, this agreement

will expire on the later of the date on which all issued patents and filed patent applications have expired (which is expected

to be in 2039), or been abandoned, withdrawn, rejected, revoked or invalidated, and five years from the date of first commercial

sale of a product developed in connection with this agreement in any country or, if later, when the product ceases to be covered

by a valid claim in the United States, European Union or Japan.

JSR may terminate this agreement if we fail to pay the amounts

due under this agreement, or upon our winding up, bankruptcy, insolvency, dissolution or other similar discontinuation of business,

or if we breach the material terms of this agreement and such breach is uncured.

We may terminate this agreement at any time upon

three months’

advance written notice to JSR.

and other joint owners are responsible for maintenance and prosecution of patents that fall under Joint Patent Rights.

entitled to the opportunity to advise and approve decisions that would have a material adverse impact on the scope of the claims.

JSR is responsible for patents that fall under Patent Rights and BiomX is entitled to advise with respect to patent counsel, scope

of claims, and other matters.

BiomX is entitled to bring enforcement actions (in BiomX’s name alone and at BiomX’s

own expense).

BiomX is required to obtain JSR’s prior written consent for each action BiomX brings with respect to the Patent

November 2017, BiomX entered into a share purchase agreement to acquire all of the outstanding share capital of RondinX Ltd.,

a company organized under the laws of Israel (“RondinX”).

Under this agreement, BiomX issued to the shareholders of

RondinX an aggregate of 250,023 Series A-1 preferred shares upon the closing of the acquisition.

In addition, BiomX issued to

warrantholders of RondinX warrants to purchase an aggregate of 4,380 Series A-1 preferred shares, which are exercisable for no

additional consideration, as well as additional cash consideration.

addition, BiomX is required to issue up to an additional 234,834 ordinary shares to the former securityholders of RondinX upon

the achievement of certain milestones, including clinical, developmental, regulatory, commercial or strategic milestones relating

to product candidates for treatment of PSC or entry into qualifying collaboration agreements with certain third parties.

upon the achievement of such milestones, BiomX will be required to make payments of contingent consideration of up to $32 million

in the aggregate.

Such contingent consideration may be made in cash, or in the most senior class of BiomX’s shares authorized

or outstanding as of the time the payment is due, or a combination of both.

If BiomX issues shares for the payment of such contingent

consideration, these shares will be issued based on the lowest price per share paid by any holder of such shares.

that any of BiomX’s shares are traded on a public market, then the price per share calculated as part of such payment will

be calculated as follows:

(i) if the securities are then traded on a national securities exchange or the Nasdaq Stock Market (or

similar national quotation system), then the value of the securities shall be deemed to be the average of the closing prices of

the securities on such exchange or system over the thirty (30) trading-day period ending five (5) trading days prior to the distribution;

or (ii) if the securities are actively traded OTC, then the value of the securities shall be deemed to be the average of the closing

bid prices of the securities over the thirty (30) trading-day period ending five (5) trading days prior to the distribution.

of December 31, 2019, BiomX had 73 full-time employees and consultants and 13 part time employees.

Twenty-five of BiomX’s

employees have Ph.D.

degrees and 71 of BiomX’s employees are currently engaged in research and preclinical development

None of BiomX’s employees is represented by labor unions or covered by collective bargaining agreements.

considers its relationship with its employees to be very strong.

mailing address of our principal executive office is 7 Pinhas Sapir St., Floor 2, Ness Ziona, Israel 7414002 and the telephone

number is (972) 72-394-2377.

We, Keio and JSR are responsible for maintenance and prosecution of

patents that are to be jointly owned by the parties.

JSR is entitled to the opportunity to advise and approve decisions that would have

a material adverse impact on the scope of the claims.

JSR is responsible for patents that fall under Patent Rights and we are entitled

to advise with respect to patent counsel, scope of claims, and other matters.

We are entitled to bring enforcement actions (in our name

alone and at our own expense).

As of December 31, 2020, we had 95

full-time employees and consultants and 11 part time employees.

Thirty-three of our employees have Ph.D.

degrees and 87

of our employees are currently engaged in research and preclinical development activities.

None of our employees is represented

by labor unions or covered by collective bargaining agreements.

We consider our relationship with our employees to be very strong.

In response to the COVID-19 pandemic, we implemented significant

changes designed to ensure the safety and well-being of our employees as well as the communities in which we operate.

We have not laid

off any employees due to the pandemic.

We implemented additional safety measures including masks and social distancing protocols in our

offices and encouraged remote working arrangements for employees.

To date, our remote working arrangements have not significantly affected

our ability to maintain critical business operations.

Corporate Information

is an Israeli company formed

in March 2015 under the name “MBcure Ltd.”, as an incubator company as part of the FutuRx incubator.

the Company changed its name from MBcure Ltd.

to BiomX Ltd.

was incorporated as a blank

check company on November 1, 2017, under the laws of the State of Delaware, under the name “Chardan Healthcare Acquisition

Corporation Inc.”, for the purpose of entering into a merger, stock exchange, asset acquisition, stock purchase, recapitalization,

reorganization or similar business combination with one or more businesses or entities, which was referred to as a “target

business.”

Efforts to identify a prospective target business were not limited to any particular industry or geographic location.

On December 18, 2018, we consummated our

initial public offering or IPO of 7,000,000 units or Public Units.

The Public Units sold in the IPO were sold at an offering price

of $10.00 per Public Unit, generating total gross proceeds of $70,000,000.

The Public Units each consist of one share of Common

Stock or the Public Share and one warrant to purchase one-half of a share of Common Stock or the Public Warrant, with every two

Public Warrants entitling the holder to purchase one share of Common Stock for $11.50 per full share.

Simultaneous with the consummation of the

IPO, we consummated the private placement of an aggregate of 2,900,000 warrants or the Private Placement Warrants, each exercisable

to purchase one share of Common Stock for $11.50 per share, to Mountain Wood, LLC, an affiliate of the Sponsor, at a price of

$0.40 per Private Placement Warrant, generating total proceeds of $1,160,000.

On October 28, 2019, we and BiomX Ltd.

consummated a business combination

pursuant to a merger agreement dated as of July 16, 2019 and amended as of October 11, 2019, or the Merger Agreement, by and among the

Company, BiomX Ltd., CHAC Merger Sub Ltd., an Israeli company and wholly owned subsidiary of the Company or the Merger Sub, and Shareholder

Representative Services LLC, solely in its capacity as the shareholders’

representative thereunder.

Pursuant to the Merger Agreement,

among other things, Merger Sub merged with and into BiomX Ltd., with BiomX Ltd.

continuing as the surviving entity and a wholly owned

subsidiary of the Company or the Business Combination.

In connection with the Business Combination, the Company changed its name to BiomX

As of the October 28, 2019, all of the

issued and outstanding shares and other equity interests in and of BiomX Ltd.

immediately prior to the consummation of the Business

Combination were canceled, and, in consideration therefor, the Company issued (or reserved for issuance) 16,625,000 shares of

Common Stock or vested options or warrants to purchase Common Stock to BiomX Ltd.

vested security holders.

In addition, we also agreed to issue the following number of additional

shares of Common Stock, in the aggregate, to the BiomX Ltd.

shareholders on a pro rata basis, subject to the Company’s achievement

of the conditions specified below following October 28, 2019:

2,000,000 additional shares of the Company’s Common Stock if the daily volume weighted average price of the Company’s Common Stock in any 20 trading days within a 30-trading day period prior to January 1, 2022 is greater than or equal to $16.50 per share.

The mailing address of our principal executive office is 7 Pinhas Sapir

St., Floor 2, Ness Ziona, Israel 7414002 and the telephone number is (972) 72-394-2377.

Our corporate website address is www.biomx.com.

The content of our website is not intended to be

incorporated by reference into this report or in any other report or document we file and any references to these websites are

intended to be inactive textual references only.

Executive Officer and Director

Business Officer

The content of our website is not intended to be incorporated by reference into this report or in any other report or document we file

and any references to these websites are intended to be inactive textual references only.

Information About Our Executive

The following table sets forth information regarding

our executive officers as of the date of this Annual Report:

Jonathan Solomon

Chief Executive Officer and Director

Chief Business Officer

Sailaja Puttagunta

Medical Officer

Development Officer

President of Finance and Operations

Solomon has served as the Chief Executive Officer and as a director of the Company since October 2019.

Solomon served

as Chief Executive Officer of BiomX from May 2017 to October 2019.

Chief Medical Officer

Chief Development Officer

Marina Wolfson

Senior Vice President of Finance and Operations

Jonathan Solomon has served as the

Chief Executive Officer and as a director of the Company since October 2019.

Solomon served as Board member of BiomX Ltd.

from February

2016 and also as Chief Executive Officer from February 2017 to October 2019.

From July 2007 to December 2015, Mr.

1 unchanged sentence

President, and Chief Executive Officer of ProClara Biosciences Inc.

(formerly NeuroPhage Pharmaceuticals Inc.), a biotechnology

company pioneering an approach to treating neurodegenerative diseases.

Prior to joining ProClara, he served for ten years in a

classified military unit of the Israeli Defense Forces.

(formerly NeuroPhage Pharmaceuticals Inc.), a biotechnology company

pioneering an approach to treating neurodegenerative diseases.

Prior to joining ProClara, he served for ten years in a classified military

unit of the Israeli Defense Forces.

Solomon holds B.Sc.

magna cum laude in Physics and Mathematics from

the Hebrew University, an M.Sc.

summa cum laude in Electrical Engineering from Tel Aviv University, and an MBA.

with honors from

the Harvard Business School.

Oron has served as the Chief Business Officer of the Company since October 2019.

Oron served as Chief Business Officer

of BiomX from January 2017 to October 2019.

Prior to this position, he served in various roles at Evogene Ltd., an agriculture

biotechnology company, which utilizes a proprietary integrated technology infrastructure to enhance seed traits underlying crop

productivity, from March 2006 to December 2016, including Executive Vice President of Strategy and Business Development and Executive

Vice President of Corporate Development.

magna cum laude in Physics and Mathematics from the Hebrew University, an

summa cum laude in Electrical Engineering from Tel Aviv University, and an MBA with honors from the Harvard Business School.

Assaf Oron has served as the

Chief Business Officer of the Company since October 2019.

Oron served as Chief Business Officer of BiomX Ltd.

2017 to October 2019.

Prior to this position, he served in various roles at Evogene Ltd.

(Nasdaq:EVGN), an agriculture biotechnology

company, which utilizes a proprietary integrated technology infrastructure to enhance seed traits underlying crop productivity,

from March 2006 to December 2016, including Executive Vice President of Strategy and Business Development and Executive Vice President

of Corporate Development.

Prior to joining Evogene, Mr.

Oron served as Chief Executive Officer of ChondroSite Ltd.,

a biotechnology company that develops engineered tissue products in the field of orthopedics and as a senior project manager and

strategic consultant at Israeli management consulting company POC Ltd.

Oron served as Chief Executive Officer of ChondroSite Ltd., a biotechnology

company that develops engineered tissue products in the field of orthopedics and as a senior project manager and strategic consultant

at Israeli management consulting company POC Ltd.

Oron holds an M.Sc.

in Biology (bioinformatics) and

in Chemistry and Economics, both from Tel Aviv University.

in Biology (bioinformatics) and a B.Sc.

and Economics, both from Tel Aviv University.

Sailaja Puttagunta M.D.

has served as the Chief Medical Officer of the Company since October 2019.

Puttagunta served

as the Chief Medical Officer of BiomX from December 2018 to October 2019.

Prior to joining BiomX, Dr.

Puttagunta served as Vice

President, Development at Iterum Therapeutics plc, a clinical stage pharmaceutical company developing antibiotics against multi-drug

resistant pathogens, from January 2016 to December 2018.

served as the Chief Medical Officer of the Company since October 2019.

Puttagunta served as the Chief Medical Officer of BiomX

from December 2018 to October 2019.

Prior to joining BiomX Ltd., Dr.

Puttagunta served as Vice President, Development at

Iterum Therapeutics plc, a clinical stage pharmaceutical company developing antibiotics against multi-drug resistant pathogens,

from January 2016 to December 2018.

Prior to Iterum, Dr.

Puttagunta served as VP, Medical Affairs for Anti-infectives

at pharmaceutical company Allergan plc from January 2015 to January 2016 and was the Vice President of Development and Medical

Affairs from August 2014 to December 2014 and the Executive Director of Clinical and Medical Affairs from June 2012 through July

2014 at pharmaceutical company Durata Therapeutics, Inc., an innovative pharmaceutical company focused on the development and

commercialization of novel therapeutics for patients with infectious diseases and acute illnesses, prior to its acquisition by

Puttagunta served as VP, Medical Affairs for Anti-infectives at pharmaceutical

company Allergan plc from January 2015 to January 2016 and was the Vice President of Development and Medical Affairs from August

2014 to December 2014 and the Executive Director of Clinical and Medical Affairs from June 2012 through July 2014 at Durata Therapeutics,

Inc., an innovative pharmaceutical company focused on the development and commercialization of novel therapeutics for patients

with infectious diseases and acute illnesses, prior to its acquisition by Actavis plc.

Prior to joining Durata, Dr.

Puttagunta led teams within clinical development and medical affairs on various antibiotic

compounds at pharmaceutical company Pfizer Inc.

Puttagunta graduated from Gandhi Medical College in Hyderabad, India and completed

her residency in Internal Medicine and a fellowship in Infectious Diseases at Yale University School of Medicine.

She also holds

in Biochemistry from the New York University School of Medicine.

Merav Bassan has served as the Chief Development Officer of the Company since October 2019.

Bassan joined as Chief

Development Officer of BiomX in October 2019.

Prior to this position, she served in various development roles at Teva Pharmaceutical

Industries Limited since 2005, including Vice President, Head of Translational Sciences, Specialty Clinical Development R&D

from 2017 to 2019, Vice President, Pain and Global Internal Medicine, Project Leadership, Innovative Product Development, Global

IR&D from 2015 to 2017, and Project Champion, Senior Director, Innovative Product Development, Global IR&D from 2009 to

led teams within clinical development and medical affairs on various antibiotic compounds at pharmaceutical company Pfizer Inc.

Puttagunta graduated from Gandhi Medical College in Hyderabad, India and completed her residency in Internal Medicine and

a fellowship in Infectious Diseases at Yale University School of Medicine.

She also holds an M.S.

in Biochemistry from the New

York University School of Medicine.

Merav Bassan has served

as the Chief Development Officer of the Company since October 2019.

Prior to this position, she served in various development

roles at Teva Pharmaceutical Industries Limited between 2005 and 2019, including Vice President, Head of Translational Sciences,

Specialty Clinical Development R&D from 2017 to 2019, Vice President, Pain and Global Internal Medicine, Project Leadership,

Innovative Product Development, Global IR&D from 2015 to 2017, and Project Champion, Senior Director, Innovative Product Development,

Global IR&D from 2009 to 2015.

Bassan holds a B.Sc.

1 unchanged sentence

in Human Genetics and a Ph.D.

in Neurobiology from Tel Aviv University, and

she completed a Post-Doctoral Fellowship in Neuroscience at Harvard Medical School at Harvard University.

Wolfson has served as the Vice President of Finance and Operations of the Company since December 2019.

Wolfson’s

experience includes working with large pharmaceutical and hi-tech companies, as well as venture capital funds.

Prior to joining

the Company, Ms.

Wolfson worked as Vice President of Finance at BioView Ltd.

(TASE) from 2010 to 2019 and a senior auditor at

Ernst & Young, an international auditing and business advisory firm from 2007 to 2010.

Wolfson is a certified public accountant

in Israel and holds a B.A in Economics and Accounting (with honors) and an MBA (with honors, specialty in finance) from Ben-Gurion

Company was incorporated as a blank check company on November 1, 2017, under the laws of the State of Delaware, for the purpose

of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business

combination with one or more businesses or entities, which we refer to as a “target business.”

Our efforts to identify

a prospective target business were not limited to any particular industry or geographic location.

March 2018, Chardan Investments, LLC (“Sponsor”) purchased 1,437,500 shares of our common stock, par value $0.0001

per share (“Common Stock”) for an aggregate purchase price of $25,000 in connection with the Company’s organization.

September 14, 2018, we effected a 1.4 for 1 dividend in the nature of a stock split that resulted in there being an

aggregate of 2,012,500 shares outstanding (resulting in a purchase price of approximately $0.012 per share).

Because these offers

and sales were made to a single purchaser in a transaction not involving a public offering, the shares were issued in reliance

on the exemption from registration contained in Section 4(a)(2) of the Securities Act.

December 18, 2018, we consummated our initial public offering (“IPO”) of 7,000,000 units (“Public Units”).

The Public Units sold in the IPO were sold at an offering price of $10.00 per Public Unit, generating total gross proceeds of

The Public Units each consists of one share of Common Stock (“Public Share”) and one warrant to purchase

one-half of a share of Common Stock (“Public Warrant”), with every two Public Warrants entitling the holder to purchase

one share of Common Stock for $11.50 per full share.

Chardan Capital Markets, LLC acted as sole book-running manager of the IPO.

The Public Units, Public Shares and Public Warrants were registered under the Securities Act on a registration statement on Form

The SEC declared the registration statement effective on December 13, 2018.

We granted the underwriters

a 45-day option to purchase up to 1,050,000 additional Public Units to cover over-allotments at the IPO price, less the underwriting

discounts and commissions.

The overallotment option expired unexercised on February 4, 2019.

with the consummation of the IPO, we consummated the private placement of an aggregate of 2,900,000 warrants (“Private Placement

Warrants”), each exercisable to purchase one share of Common Stock for $11.50 per share, to Mountain Wood, LLC, an affiliate

of the Sponsor, at a price of $0.40 per Private Placement Warrant, generating total proceeds of $1,160,000.

The issuance was made

pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.

These Private Placement Warrants

are identical to the Public Warrants underlying the Public Units sold in the IPO, except that the Private Placement Warrants are

not transferable, assignable or salable until after the completion of a business combination, subject to certain limited exceptions.

Additionally, the Private Placement Warrants are exercisable on a cashless basis and are non-redeemable so long as they are held

by the initial purchasers or their permitted transferees.

deducting the underwriting discounts, offering expenses, and commissions from the IPO and the sale of the Private Placement Warrants,

a total of $70,000,000 was deposited into a trust account established for the benefit of the holders of our Public Shares, including

our initial stockholders and members of our management team to the extent our initial stockholders and/or members of our management

team purchased Public Shares (provided that each initial stockholder’s and member of our management team’s status

as a “public stockholder”

shall only exist with respect to such Public Shares), and the remaining proceeds became

available to be used to provide for business, legal and accounting due diligence on prospective business combinations and continuing

general and administrative expenses.

the Closing Date, the Company and BiomX consummated a business combination pursuant to a merger agreement dated as of July 16,

2019 and amended as of October 11, 2019 (the “Merger Agreement”) by and among the Company, BiomX, CHAC Merger Sub

Ltd., an Israeli company and wholly owned subsidiary of the Company (“Merger Sub”) and Shareholder Representative

Services LLC, solely in its capacity as the shareholders’

representative thereunder.

Pursuant to the Merger Agreement, among

other things, Merger Sub merged with and into BiomX, with BiomX continuing as the surviving entity and a wholly-owned subsidiary

of the Company (the “Business Combination”).

of the Closing Date, all of the issued and outstanding shares and other equity interests in and of BiomX immediately prior to

the consummation of the Business Combination were canceled, and, in consideration therefor, the Company issued (or reserved for

issuance) 16,625,000 shares of the Company’s Common Stock or vested options or warrants to purchase Common Stock to BiomX

vested security holders.

Additional shares of Common Stock were reserved for issuance in respect of options to purchase ordinary

shares of BiomX that were issued, outstanding and unvested immediately prior to the Closing Date.

addition, the Company also agreed to issue the following number of additional shares of Common Stock, in the aggregate, to the

BiomX shareholders on a pro rata basis, subject to the Company’s achievement of the conditions specified below following

the Closing Date:

additional shares of the Company’s Common Stock if the daily volume weighted average price of the Company’s Common

Stock in any 20 trading days within a 30 trading day period prior to January 1, 2022 is greater than or equal to $16.50

additional shares of the Company’s Common Stock if the daily volume weighted average price of the Company’s Common

Stock in any 20 trading days within a 30 trading day period prior to January 1, 2024 is greater than or equal to $22.75

additional shares of the Company’s Common Stock if the daily volume weighted average price of the Company’s Common

Stock in any 20 trading days within a 30 trading day period prior to January 1, 2026 is greater than or equal to $29.00

in Neurobiology

from Tel Aviv University, and she completed a Post-Doctoral Fellowship in Neuroscience at Harvard Medical School at Harvard University.

Marina Wolfson has served as

the Senior Vice President of Finance and Operations of the Company since October 2020.

Wolfson served as the Vice President

of Finance and Operations of the Company from December 2019 to October 2020.

Wolfson’s experience includes working with

large pharmaceutical and hi-tech companies, as well as venture capital funds.

Prior to joining the Company, Ms.

Wolfson worked

as Vice President of Finance at BioView Ltd.

(TASE:BIOV) from 2010 to 2019 and a senior auditor at Ernst & Young, from

2007 to 2010.

Wolfson is a certified public accountant in Israel and holds a B.A in Economics and Accounting (with honors)

and an MBA (with honors, specializing in finance) from Ben-Gurion University.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business