NVUS 2018 Annual Report

information. If any disruption or security breach resulted in a loss of or damage to our data or applications, or inappropriate disclosure of confidential or proprietary information, we could incur liability and/or the further development of our product candidates could be delayed. Risks Related to Our Common Stock We expect our stock price to be volatile, and the market price of our common stock may drop unexpectedly. The market price of our common stock could be subject to significant fluctuations. Market prices for securities of early-stage pharmaceutical, biopharmaceutical, and other life sciences companies have historically been particularly volatile. Some of the factors that may cause the market price of our common stock to fluctuate include: x our ability to obtain regulatory approvals for our product candidates or other product candidates, and delays or failures to obtain such approvals; x failure of any of our product candidates, if approved, to achieve commercial success; x issues in manufacturing our approved products, if any, or product candidates; x the results of our current and any future clinical trials of our product candidates; x the entry into, or termination of, key agreements, including key commercial partner agreements; x the initiation of, material developments in, or conclusion of litigation to enforce or defend any of our intellectual property rights or defend against the intellectual property rights of others; x announcements by commercial partners or competitors of new commercial products, clinical progress or the lack thereof, significant contracts, commercial relationships or capital commitments; x the introduction of technological innovations or new therapies that compete with our potential products; x the loss of key employees; x changes in estimates or recommendations by securities analysts, if any, who cover our common stock; x general and industry-specific economic conditions that may affect our research and development expenditures; x changes in the structure of healthcare payment systems; and x period-to-period fluctuations in our financial results. Moreover, the stock markets in general have experienced substantial volatility that has often been unrelated to the operating performance of individual companies. These broad market fluctuations may also adversely affect the trading price of our common stock. ,Q WKH SDVW IROORZLQJ SHULRGV RI YRODWLOLW\ LQ WKH PDUNHW SULFH RI D FRPSDQ\¶V VHFXULWLHV VWRFNKROGHUV KDYH RIWHQ instituted class action securities litigation against those companies. Such litigation, if instituted, could result in substantial costs and diversion of management attention and resources, which could significantly harm our profitability and reputation. If securities analysts do not publish research or reports about our business, or if they publish negative evaluations, the price of our common stock could decline. The trading market for our common stock may be impacted by the availability or lack of research and reports that third- party industry or financial analysts publish about the Company. There are many large, publicly traded companies active in the biopharmaceutical industry, which may mean it will be less likely that we receive widespread analyst coverage. Furthermore, if one or more of the analysts who do cover the Company downgrade our stock, our stock price would likely decline. If we do not receive adequate coverage by reputable analysts that have an understanding of our business and industry, we could fail to achieve visibility in the market, which in turn could cause our stock price to decline. Our executive officers, directors and principal stockholders, if they choose to act together, will have the ability to control all matters submitted to stockholders for approval. Our executive officers and directors, combined with our principal stockholders, beneficially own shares representing approximately 65.2% of our capital stock as of December 31, 2018. As a result, if these stockholders were to choose to act

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