Risks Related to Our Common Stock Risks Related to Investment in Securities Our stock price has been and will likely continue to be volatile, and you may not be able to resell shares of our common stock at or above the price you paid. The trading price of our common stock historically has been highly volatile and could continue to be subject to large fluctuations in response to the risk factors discussed in this section, and others beyond our control, including: < our ability to successfully commercialize Gvoke, Keveyis and Recorlev; < regulatory actions with respect to our products and product candidates; < regulatory actions with respect to our competitors’ products and product candidates; < the success of existing or new competitive products or technologies; < results of clinical trials of product candidates of our competitors; < announcements by us or our competitors of significant acquisitions, strategic partnerships, joint ventures, collaborations or capital commitments; < the timing and results of clinical trials of our pipeline product candidates; < commencement or termination of collaborations for our development programs; < the results of our efforts to develop additional product candidates or products; < the level of expenses related to any of our product candidates or clinical development programs; < failure or discontinuation of any of our development programs; < the pricing and reimbursement of Gvoke, Keveyis or any of our product candidates that may be approved; < regulatory or legal developments in the United States and other countries; < developments or disputes concerning patent applications, issued patents or other proprietary rights; < the recruitment or departure of key personnel; < actual or anticipated changes in estimates as to financial results or development timelines; < announcement or expectation of additional financing efforts; < sales of our common stock by us, our insiders or other stockholders; < variations in our financial results or those of companies that are perceived to be similar to us; < changes in estimates or recommendations by securities analysts, if any, that cover our stock; < changes in the structure of healthcare payment systems; < market conditions in the pharmaceutical and biotechnology sectors; < general economic, industry and market conditions; < global health concerns, such as the COVID-19 pandemic; and < the other factors described in this “Risk Factors” section. In recent years, the stock markets, and particularly the stock of smaller pharmaceutical and biotechnology companies, at times have experienced price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of affected companies. Broad market and industry factors may significantly affect the market price of our common stock unrelated to our actual operating performance. Since shares of our common stock were sold in our IPO in June 2018 at a price of $15.00 per share, our stock price has fluctuated significantly. In addition, in the past, class action litigation has often been instituted against companies whose securities have experienced periods of volatility in market price. Securities litigation brought against us following volatility in our stock price, regardless of the merit or ultimate results of such litigation, could result in substantial costs, which would hurt our financial condition and operating results and divert management’s attention and resources from our business. The conversion of any of the Convertible Notes or other convertible securities into shares of common stock could have a dilutive effect that could cause our share price to go down. We have a number of convertible securities outstanding, including CVRs, Convertible Notes and warrants, and the conversion of such securities into shares of our common stock could have a dilutive effect that could cause our share price to go down. The Convertible Notes are convertible into shares of common stock at any time at the option of the holder subject to certain conditions. We have reserved a sufficient number of shares of common stock for issuance upon conversion of the Convertible Notes, CVRs and warrants. During the second half of 2020, $39.1 million in principal amount of Convertible Notes were converted into 13,171,791 shares of our common stock. As of December 31, 2021, the outstanding balance of Convertible Notes was $47.2 million. If any more or all of the Convertible Notes are converted into shares of common stock, our existing shareholders will experience 69
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