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In addition to the risks set forth in our Annual Report on Form 10-K/A for the year ended December 31, 2023, additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our business.
−Removed: Risks Related to our Intellectual Property
−Removed: Our products could infringe patents and other property rights of others, which may result in costly litigation and, if we are not successful, could cause us to pay substantial damages or limit our ability to commercialize our products, which could have a material adverse effect on our business.
−Removed: Our commercial success depends upon our ability, and the ability of our collaborators, to develop, manufacture, market and sell our product candidates and use our proprietary technologies without infringing the patents and other proprietary rights of third parties.
−Removed: There is considerable intellectual property litigation in the biotechnology and pharmaceutical industries.
−Removed: For example, we are aware of issued patents owned by Merus N.V.
−Removed: (Merus) that may relate to and claim components of our bispecific antibody product candidates and partnered bispecific product candidates, including plamotamab, vudalimab and XmAb819, will putatively expire in 2033.
−Removed: In August 2024, Merus filed suit against us in the United States District Court of the District of Delaware alleging that we have infringed three of its patents.
−Removed: We maintain that our development of these candidates currently falls into the “safe harbor” of non-infringement under 35 U.S.C.
−Removed: This protection, however, would not be available upon commercialization nor can we give assurances on how the Court would rule on this issue.
−Removed: We also believe we have strong defenses to Merus’s claims, including defenses of invalidity and/or non-infringement for the Merus patents, but there is no guarantee that we will prevail.
−Removed: If we are found to infringe the Merus patents, we may be ordered by a court to cease commercializing the applicable product candidates, which could materially harm our business.
−Removed: In addition, we could be found liable for monetary damages, including treble damages and attorneys’ fees if we are found to have willfully infringed the Merus patents.
−Removed: In addition, as the biopharmaceutical industry expands and more patents are issued, the risk increases that there may be patents issued to third parties that relate to our products and technology of which we are not aware or that we must challenge to continue our operations as currently contemplated.
−Removed: Our products may infringe or may be alleged to infringe these patents.
−Removed: Because some patent applications in the United States may be maintained in secrecy until the patents are issued, because patent applications in the United States and many foreign jurisdictions are typically not published until eighteen months after filing and because publications in the scientific literature often lag behind actual discoveries, we cannot be certain that others have not filed patents that may cover our technologies, our product candidates or their use.
−Removed: Additionally, pending patent applications which have been published can, subject to certain limitations, be later amended in a manner that could cover our technologies, our products or the use of our products.
−Removed: We may become party to, or threatened with, future adversarial proceedings or litigation regarding intellectual property rights with respect to our products and technology.
−Removed: Third parties may assert infringement claims against us based on existing patents or patents that may be granted in the future.
−Removed: In order to defend against a claim of patent infringement, we would need to demonstrate that our products or methods either do not infringe the patent claims of the relevant patent or that the patent claims are invalid, and we may not be able to do this.
−Removed: Proving invalidity is difficult.
−Removed: For example, in the United States, proving invalidity requires a showing of clear and convincing evidence to overcome the presumption of validity enjoyed by issued patents.
−Removed: This burden is a high one, and there is no assurance that a court would find these claims to be invalid or not infringed.
−Removed: Even if we are successful in these proceedings, we may incur substantial costs and divert management’s time and attention in pursuing these proceedings, which could have a material adverse effect on us.
−Removed: Any such claims are likely to be expensive to defend, and some of our competitors may be able to sustain the costs of complex patent litigation more effectively than we can because they have substantially greater resources.
−Removed: If we are found to infringe a third party’s intellectual property rights, we could be required to obtain a license from such third party to continue developing and marketing our products and technology.
−Removed: We may also elect to enter into such a license in order to settle litigation or in order to resolve disputes prior to litigation.
−Removed: However, we may not be able to obtain
−Removed: any required license on commercially reasonable terms or at all.
−Removed: Even if we were able to obtain a license, it could be non-exclusive, thereby giving our competitors access to the same technologies licensed to us and could require us to make substantial royalty payments.
−Removed: We could also be forced, including by court order, to cease commercializing the infringing technology or product.
−Removed: In addition, we could be found liable for monetary damages, including treble damages and attorneys’ fees if we are found to have willfully infringed a patent.
−Removed: A finding of infringement could prevent us from commercializing our product candidates or force us to cease some of our business operations, which could materially harm our business.
−Removed: Claims that we have misappropriated the confidential information or trade secrets of third parties could have a similar negative impact on our business.
−Removed: We have identified material weaknesses in our internal control over financial reporting, and our management has concluded that our disclosure controls and procedures were not effective as of December 31, 2023 or September 30, 2024.
+Added: We have identified material weaknesses in our internal control over financial reporting, and our management has concluded that our disclosure controls and procedures were not effective as of December 31, 2023 or June 30, 2024.
If we fail to remediate these material weaknesses, or if we identify additional material weaknesses in the future or otherwise fail to maintain an effective system of internal control over financial reporting in the future, we may not be able to accurately or timely report our financial condition or results of operations, investors may lose confidence in the accuracy and completeness of our financial reports and the trading price of our common stock may decline.
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In addition, on February 7, 2025, RSM informed us that disclosure should be made or action should be taken to prevent future reliance on RSM’s audit report filed with the Annual Report on Form 10-K for the year ended December 31, 2023, originally filed with the SEC on February 29, 2024 and completed interim review related to previously issued financial statements included in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024.
−Removed: In connection with this restatement, our management re-evaluated the effectiveness of our disclosure controls and procedures and internal control over financial reporting as of December 31, 2023 and September 30, 2024.
−Removed: Our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were not effective as of December 31, 2023 and September 30, 2024, and our management has concluded that our internal control over financial reporting was not effective as of December 31, 2023 and September 30, 2024 due to a material weakness (a material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis) related to the design and operating effectiveness of controls related to non-routine transactions and the evaluation of certain tax legislation.
+Added: In connection with this restatement, our management re-evaluated the effectiveness of our disclosure controls and procedures and internal control over financial reporting as of December 31, 2023 and June 30, 2024.
+Added: Our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were not effective as of December 31, 2023 and June 30, 2024, and our management has concluded that our internal control over financial reporting was not effective as of December 31, 2023 and June 30, 2024 due to a material weakness (a material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis) related to the design and operating effectiveness of controls related to non-routine transactions and the evaluation of certain tax legislation.
We are in the process of implementing remediation plans to address these material weaknesses.
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333-191689), originally filed with the SEC on October 25, 2013).
−Removed: 4.2 Form of Pre-Funded Warrant to Purchase Common Stock (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K, filed with the SEC on September 12, 2024).
−Removed: Royalty Purchase Agreement, entered into on November 3, 2023, by and between Xencor, Inc.
−Removed: and OCM Life Sciences Portfolio LP (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on November 7, 2023).
−Removed: Royalty Purchase Agreement, entered into on November 3, 2023, by and between Xencor, Inc.
−Removed: and OCM Life Sciences Portfolio LP (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K, filed with the SEC on November 7, 2023).
+Added: 4.2 Third Amended and Restated Investor Rights Agreement, dated June 26, 2013, among the Company and certain of its stockholders incorporated by reference to Exhibit 4.2 to the Company’s Registration Statement on Form S-1, as amended (File No.
+Added: 333-191689), originally filed with the SEC on October 11, 2013).
+Added: 10.1 Consulting Agreement by and between the Company and John J.
+Added: Kuch, dated April 19, 2024 (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on August 5, 2024).
+Added: Executive Employment Agreement Addendum No.
+Added: 2 dated June 1, 2024 by and between the Company and Nancy Valente (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on August 5, 2024).
Rule 13a-14(a) Certification of Principal Executive Officer .
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104 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
−Removed: Certain identified information has been omitted pursuant to Item 601(b)(10) of Regulation S-K because such information is both (i) not material and (ii) information that the Registrant treats as private or confidential.
−Removed: The Registrant hereby undertakes to furnish supplemental copies of the unredacted exhibit upon request by the SEC.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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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.