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 potential other markets;
- selectively collaborate with large biotechnology and pharmaceutical companies to maximize the value of our product
- leverage Contour, our proprietary structure-based drug discovery platform, to rapidly discover novel small molecule
product candidates for additional validated, difficult-to-drug targets; and
- continue investing in technology, people and intellectual property.
Each of our most advanced product candidates is the subject of patents and patent applications for composition of matter and methods of
treatment in major markets worldwide. These patents and patent applications, if granted, are expected to provide us with intellectual property protection for all of our current product candidates
until 2030 and beyond. We intend to continue to expand our intellectual property protections by seeking and maintaining domestic and international patents on inventions that are commercially important
to our business. We will also rely on know-how and continuing technological innovation to develop and maintain our proprietary position.
Our revenue to date has been generated primarily through our collaborations. We have not generated any commercial product revenue. As
of June 30, 2014, we had $18.1 million of cash, cash equivalents and marketable securities and an accumulated deficit of $120.9 million. We expect to incur significant expenses
and operating losses for the foreseeable future as we advance our current and future product candidates from discovery through preclinical development and clinical trials, and to eventually seek
regulatory approval and pursue commercialization.
Risks Associated with Our Business
Our ability to implement our business strategy is subject to numerous risks and uncertainties. As a clinical stage biopharmaceutical
company, we face many risks inherent in our business and our industry generally. You should carefully consider all of the information set forth in this prospectus and, in particular, the information
under the heading "Risk Factors" in this prospectus prior to making an investment in our common stock. These risks include, among others, the
- We have incurred substantial operating expenses in every year since our inception and anticipate that we will continue to
incur substantial operating expenses for the foreseeable future. We may never achieve profitability from product sales.
- We currently have no source of product sales revenue.
- We will require substantial additional financing to achieve our goals, and a failure to obtain this necessary capital when
needed could force us to delay, limit, reduce or terminate our product development or commercialization efforts.
- We may not successfully identify, develop, commercialize or market
potential product candidates.
- If we or our partners do not obtain regulatory approval for our current and future product candidates, our business will
be adversely affected.
- We are dependent on BI for the successful development and commercialization of two of our most advanced product
candidates, VTP-34072 and VTP-37948. If BI does not devote sufficient resources to the development of these candidates, is unsuccessful in its efforts, or chooses to terminate any of its agreements
with us, our business will be materially harmed.