Medicinova (MNOV) risk factors, FY2025 10-K

Risks Related to Our Business and Industry

1. 01We have incurred significant operating losses since our inception and expect that we will incur continued losses for the foreseeable future24% rewritten
2. 02the costs of establishing or contracting for sales and marketing capabilities and commercialization activities if we obtain regulatory approval to market our product candidates
3. 03We have consumed substantial amounts of capital since our inception in September 2000
4. 04We do not have any products that are approved for commercial sale and therefore currently generate no revenues from sales of any products and may never generate any revenues from product sales or be profitable in the foreseeable future, if ever
5. 05We are largely dependent on the success of our MN-166 (ibudilast) and MN-001 (tipelukast) product candidates and we cannot be certain that these product candidates will receive regulatory approval or be successfully commercialized
6. 06Because the results of early clinical trials are not necessarily predictive of future results, our product candidates we advance into clinical trials in any indication may not have favorable results in later clinical trials, if any, or receive regulatory approval
7. 07Interim and preliminary "top-line" data from our clinical trials that we announce or publish from time to time may change as more patient data becomes available and is subject to audit and verification procedures that could result in material changes in the final data
8. 08In order to commercialize a therapeutic drug successfully, a product candidate must receive regulatory approval after the successful completion of clinical trials, which can be lengthy, complex and costly, have a high risk of failure and can be delayed or terminated at any time84% rewritten
9. 09authorization to conduct clinical trials for our product development programs. Investigational New Drug Applications were approved by the FDA and are active for our product candidatesNew
10. 10We are subject to stringent regulation of our product candidates, which could delay the development and commercialization of our product candidates72% rewritten
11. 11size of the market for the product candidate or result in the incurrence of additional costs. Any delay or failure in obtaining required approvals could substantially reduce or negate our ability to generate revenues from the particular product candidateNew
12. 12Even if our product candidates receive regulatory approval, they may still face future development and regulatory difficulties
13. 13seize or detain products or require a product recall21% rewritten
14. 14significantly impact the ability of the FDA or other regulatory authorities to timely review and process our regulatory submissions, which could have a material adverse effect on our businessNew
15. 15Any product candidates that we advance into clinical trials may cause undesirable side effects or have other properties that could delay or prevent regulatory approval or commercialization or limit its commercial potential
16. 16Delays in the commencement or completion of clinical trials, or suspension or termination of our clinical trials, could result in increased costs to us and delay or limit our ability to obtain regulatory approval for our product candidates
17. 17Institutional Review Board (IRB) approval or approval from foreign counterparts to conduct or amend a clinical trial at a prospective site
18. 18the formulation or dosing regimen of a product candidate may result, unintentionally, in patient non-compliance, leading to low patient retention rates, incomplete data to conduct an adequate analysis, and failure to complete the trial
19. 19We license the rights to certain compounds to develop and market our product candidates
20. 20If any of our license agreements is terminated, we would have no further rights to develop and commercialize the product candidate that is the subject of the license. The termination of any of our license agreements could materially and adversely affect our business
21. 21If our competitors develop and market products more rapidly than we do or that are more effective, safer or more affordable than our product candidates, our commercial opportunities may be negatively impacted
22. 22We will depend on strategic collaborations with third party partners to develop and commercialize selected product candidates and will not have control over a number of key elements relating to the development and commercialization of these product candidates if we are able to achieve such third party arrangements
23. 23cannot manufacture the necessary materials in sufficient quantities from multiple sources or at a reasonable cost
24. 24We rely, and intend to rely, on third party manufacturers to produce our product candidates, which may result in delays in our clinical trials and the commercialization of products, as well as increased costs
25. 25We, or our third party manufacturers, may not be able to manufacture our product candidates in sufficient quality or commercial quantities, which would delay or prevent us from commercializing our product candidates
26. 26Materials necessary to manufacture our product candidates may not be available on commercially reasonable terms, or at all, which may delay the development and commercialization of our product candidates
27. 27Changes in methods of product candidate manufacturing or formulation may result in additional costs or delay
28. 28Our product candidates, if approved for sale, may not gain acceptance among physicians, patients and the medical community, thereby limiting our potential to generate revenues
29. 29the availability of adequate third party insurance coverage or reimbursement
30. 30If our products are not accepted by the market or if users of our products are unable to obtain adequate coverage of and reimbursement for our products from government and other third party payers, our revenues and profitability will suffer
31. 31If we are unable to establish sales, marketing and distribution capabilities, whether independently or with third parties, we will be unable to commercialize our product candidates successfully
32. 32Health care reform measures could adversely affect our business
33. 33Any clinical trial programs, marketing, or research collaborations in the European Economic Area (EEA) will subject us to the General Data Protection Regulation, including as implemented in the UK (GDPR)
34. 34We are subject to environmental, health and safety laws and regulations, and we may become exposed to liability and substantial expenses in connection with environmental compliance or remediation activities
35. 35We are subject to certain United States and foreign anti-corruption, anti-money laundering, export control, sanctions, and other trade laws and regulations. We can face serious consequences for violations
36. 36We may be sued for product liability, which could result in substantial liabilities that exceed our available resources and damage our reputation
37. 37the inability to commercialize our product candidates
38. 38We expect that our results of operations will fluctuate, which may make it difficult to predict our future performance from period to period
39. 39We will continue to incur significant increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives
40. 40We may be adversely affected by the effects of inflation, including as a result of increased tariffsNew
41. 41A variety of risks associated with operating our business and marketing our products internationally could materially adversely affect our business
42. 42changes in diplomatic and trade relationships; and

Risks Related to Our Intellectual Property

1. 43Our ability to compete may decline if we do not adequately protect our proprietary rights73% rewritten
2. 44develop additional proprietary technologies that are patentable
3. 45Changes in patent law in the United States and other jurisdictions could diminish the value of patents in general, thereby impairing our ability to protect our product candidates
4. 46Confidentiality agreements with employees and others may not adequately prevent disclosure of our trade secrets and other proprietary information and may not adequately protect our intellectual property, which could limit our ability to compete
5. 47A dispute concerning the infringement or misappropriation of our proprietary rights or the proprietary rights of others could be time consuming and costly, and an unfavorable outcome could harm our business
6. 48We may be subject to claims that our employees have wrongfully used or disclosed alleged trade secrets of their former employers

Risks Related to the Securities Markets and Investment in Our Common Stock

1. 49The stock price of our common stock may be volatile or decline regardless of our operating performance, and you may not be able to resell our shares at a profit or at all
2. 50Our common stock may be delisted from the Nasdaq Global Market or the Standard Market of the Tokyo Stock Exchange
3. 51We may become involved in securities class action litigation that could divert management’s attention and harm our business
4. 52Future sales of our common stock may cause our stock price to decline and may make it difficult for us to raise additional capital or for you to sell your shares
5. 53If our estimates or judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our results of operation could fall below the expectations of securities analysts and investors, resulting in a decline in the market price of our common stock
6. 54We are a “smaller reporting company” and may take advantage of certain scaled disclosures available to us. We cannot be certain if the reduced reporting requirements applicable to smaller reporting companies will make our common stock less attractive to investors
7. 55Anti-takeover provisions in our charter documents and under Delaware law may make an acquisition of us more complicated and the removal and replacement of our directors and management more difficult
8. 56provide for a classified board of directors with staggered terms