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S-1
VITAE PHARMACEUTICALS, INC filed this Form S-1 on 08/12/2014
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

        You should read the following discussion and analysis of our financial condition and results of operations together with the "Selected Financial Data" and our financial statements and the related notes appearing at the end of this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks, uncertainties and assumptions. You should read the "Risk Factors" and "Information Regarding Forward-Looking Statements" sections of this prospectus for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Overview

        We are a clinical-stage biotechnology company focused on discovering and developing novel, small molecule drugs for diseases that represent large market opportunities where there are significant unmet medical needs. We are developing a growing portfolio of novel product candidates internally generated by Contour®, our proprietary structure-based drug discovery platform. We have two partnered product candidates in the clinic and several wholly-owned product candidates in preclinical development:

    Our most advanced product candidates include VTP-34072, for which a Phase 2 clinical trial for the treatment of type 2 diabetes commenced in July 2014, and VTP-37948, which is in a Phase 1 clinical trial for the treatment of Alzheimer's disease, or Alzheimer's. Both products are being developed exclusively by Boehringer Ingelheim GmbH, or BI, under separate collaborations with them, pursuant to which we have received an aggregate of $122 million in non-equity funding as of June 30, 2014, including upfront cash, research funding and success-based milestone payments.
    We have several wholly-owned product candidates advancing in preclinical development, including VTP-43742 for the treatment of autoimmune disorders, VTP-38443 for the treatment of acute coronary syndrome and VTP-38543 for the treatment of atopic dermatitis. We intend to advance and retain rights to these and other programs and product candidates that we believe can be developed and commercialized by us, and to strategically partner where doing so can accelerate the program and generate non-dilutive capital for us.

        We believe we are a leader in the field of structure-based drug discovery, and we have leveraged our expertise and ability to create a growing portfolio of novel, potent and selective product candidates. Our goal is to leverage this leadership in structure-based drug discovery to deliver first- or best-in-class small molecule drugs to patients in diseases with significant unmet medical needs. The key elements of our business strategy are to:

    advance our growing portfolio of product candidates;
    establish late-stage development and commercialization capabilities for certain of our product candidates in the United States and potentially other markets;
    selectively collaborate with large biotechnology and pharmaceutical companies to maximize the value of our product candidates;
    leverage Contour to rapidly discover novel small molecule product candidates for additional validated, difficult-to-drug targets; and
    continue investing in technology, people and intellectual property.

        We believe these strategies provide us with multiple, sustainable-growth opportunities.

        We were incorporated in May 2001 and commenced principal operations during 2002. Since that time, we have been principally engaged in the discovery and development of novel product candidates. We have funded our operations principally with $132.7 million of capital in the form of license fees, milestone payments and research and development funding from our strategic partners and $120.1 million from the

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