ABEONA THERAPEUTICS INC. (ABEO) Business

Business

Abeona
Therapeutics Inc., a Delaware corporation (together with our subsidiaries, “we,” “our,” “Abeona”
or the “Company”), is a commercial-stage biopharmaceutical company developing cell and gene therapies for life-threatening
diseases. On April 28, 2025, the U.S. Food and Drug Administration (“FDA”) approved ZEVASKYN® (prademagene
zamikeracel) gene-modified cellular sheets, also known as ZEVASKYN®, as the first and only autologous cell-based gene
therapy for the treatment of wounds in adult and pediatric patients with recessive dystrophic epidermolysis bullosa (“RDEB”),
a serious and debilitating genetic skin disease. There is no cure for RDEB, and ZEVASKYN® is the only FDA-approved product to treat RDEB wounds with
a single surgical application. ZEVASKYN® was granted Orphan Drug and Rare Pediatric Disease designations by the FDA

ZEVASKYN® is manufactured at our current
Good Manufacturing Practices (“cGMP”) manufacturing facility in Cleveland, Ohio. Treatments are available through ZEVASKYN®
qualified treatment centers, a network of centers that are selected based on their expertise in cell and gene therapy and trained to administer
ZEVASKYN®. As of March 2026, we have activated 4 qualified treatment centers and are in discussions with additional centers
as we continue to expand the ZEVASKYN® qualified treatment network.

The Company’s development portfolio also features adeno-associated virus (“AAV”)-based
gene therapies designed to treat ophthalmic diseases with high unmet need using novel AIM™ capsids. Abeona’s novel AAV capsids are being evaluated to improve tropism profiles for a variety of devastating diseases.

We partner with leading academic researchers, patient
advocacy organizations, caregivers and other biotechnology companies to develop and deliver therapies that address the underlying cause
of a broad spectrum of rare genetic diseases for which no effective treatment options exist today.

Our
Mission and Strategy

Our
strategy consists of:

Commercializing
ZEVASKYN® and Advancing and Commercializing our Cell and Gene Therapy Programs.

Through
our cell and gene therapy expertise in research and development, we believe we are positioned to introduce efficacious and safe
therapeutics to transform the standard of care in devastating diseases and establish our leadership position in the field. We are
commercializing ZEVASKYN® by ourselves and may develop future strategic partnerships for ZEVASKYN® and
we intend to commercialize our other assets either by ourselves or through strategic partnerships, subject to FDA
approval.

Developing
Novel In-Vivo Gene Therapies Using AIM™ Capsid Technology.

We
are researching and developing AAV-based gene therapies using novel AAV capsids both derived from the licensed AIM™ Capsid Technology
Platform and invented by the Company. We plan to continue to develop chimeric AAV capsids capable of improved tissue targeting for various
indications and that can potentially evade immunity to wild-type AAV vectors.

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Leveraging
our Leadership Position in Commercial-Scale Cell and Gene Therapy Manufacturing.

We
established cGMP, commercial and clinical-scale manufacturing capabilities for engineered cell and gene therapies in our state-of-the-art Cleveland, Ohio facility. We believe that our manufacturing platform provides us with
distinct advantages, including flexibility, scale, reliability, and the potential for reduced development risk, reduced cost, and
faster times to market. We have focused on establishing internal Chemistry Manufacturing and Controls (“CMC”) capabilities that drive value for our organization through
process development, assay development and manufacturing. We have also deployed robust quality systems governing all aspects of
product lifecycle from preclinical through commercial stage.

Establishing
Additional Cell and Gene Therapy Franchises and Adjacencies through In-Licensing and Strategic Partnerships.

We
seek to be the partner of choice in cell and gene therapy treatments and have closely collaborated with leading academic institutions,
key opinion leaders, patient foundations, and industry partners to accelerate research and development, understand the needs of patients
and their families, and generate novel intellectual property.

Maintaining
and Growing our IP Portfolio.

We
seek patent rights for various aspects of our programs, including vector engineering and construct design, our production process, and
all features of our clinical products, including compositions of matter and methods of manufacture, administration, and delivery. We expect
to continue to expand our intellectual property portfolio by aggressively seeking patent rights for promising aspects of our product
engine and product candidates.

ZEVASKYN®
for the Treatment of RDEB

Disease
Overview

RDEB
belongs to a broad group of genetic skin disorders known as epidermolysis bullosa. Patients with RDEB have a defect in the COL7A1 gene,
resulting in the inability to produce Type VII collagen, which plays a vital role in skin functioning by anchoring the skin’s dermal
and epidermal layers to one another.

As
a result of the genetic defect, RDEB patients have fragile skin, which can easily damage to produce open and blistering wounds,
disfiguring scars throughout the body, fused fingers and toes, limits in range of motion at joints (e.g., arms and legs), corneal
abrasions, and an abnormal narrowing of the esophagus. Long-term RDEB patients can suffer from anemia, infections and are at high
risk of developing aggressive squamous cell carcinomas, infections, and premature death. The most severe patients are approximately
20 times more likely to die by 30 years of age than the general population.

Similar
to other rare diseases, the incidence and prevalence of RDEB are not well defined. Incidence of 0.2 to 3.05 per million births and prevalence
of 0.14 to 1.35 per million people have been observed across different geographies, primarily estimated by limited population analyses
of clinical databases or registries (Eichstadt et al.; Clinical, Cosmetic and Investigational Dermatology, 2019). Using genetic modeling
of COL7A1 variants, Stanford University estimated the incidence of RDEB to be approximately 63 per million births, and prevalence could
be up to 3,850 patients in the U.S., whose wounds may benefit from COL7A1-mediated treatments such as ZEVASKYN®. Based
on claims analysis, we estimate that approximately 750 moderate to severe RDEB patients in the U.S. would be ZEVASKYN®
eligible patients (Clearview Claims Analysis, 2024).

RDEB
patients have active disease, with the majority of their wounds typically greater than 20 cm2 in size (Stanford University;
Solis, D., et al., 2017). In 2020, a survey of RDEB patients reported that approximately 60% have active wounds covering greater than
30% of their bodies (Bruckner et al.; Orphanet Journal of Rare Diseases, 2020). Wounds covering up to approximately 80% of body surface
area have been recorded in some EB patients (Hirsch et al.; Nature Research, 2017).

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In
our VIITALTM phase 3 and phase 1/2a clinical trials, ZEVASKYN® was applied as a one-time surgical
procedure onto RDEB wounds and has shown up to 12 years of durable wound healing and associated pain reduction even in the
tough-to-treat large, chronic RDEB wounds. Patients evaluated in the VIITALTM phase 3 trial had some of the worst wounds.
These wounds were large ( 20cm2) and, on average, had remained open for 6.2 years, and in some
cases up to 21 years, prior to ZEVASKYN® treatment. Most RDEB patients have large and chronic wounds that carry the
highest burden, including the need for frequent lengthy dressing changes, pain, pruritus (itch), risk of infection, and developing
skin cancer.

Current
Management of RDEB

RDEB wound management currently consists of lengthy and labor-intensive supportive care to limit contamination and infection,
and reduction in mechanical forces that produce new blisters. Care usually includes treatment of new blisters by lancing and draining.
Wounds are then dressed with non-adherent material, covered with padding for stability and protection, and secured with an elastic wrap
for integrity. In a cost analysis conducted by Debra of America, based on 3,274 patient health insurance claims from private insurance,
the annual cost of care for dystrophic epidermolysis bullosa (DEB) was found to be 465% greater than the annual cost to the healthcare
system from all people and a substantial share of this burden stems from ongoing wound-care needs. For many patients, these wound-care expenses
represent a major, persistent financial strain on both families and the healthcare system, reflecting the chronic and resource-intensive
nature of RDEB management.

RDEB
patients also have periodic surgeries to relieve disease related issues such as narrowing of their esophagus, fusing of fingers, and
corneal abrasions.

In
2023, Vyjuvek® and Filsuvez® were approved by the FDA for treatment of wounds associated with DEB and wounds
associated with Junctional (JEB) and DEB, respectively.

RDEB
patients continue to seek durable treatments for addressing their wounds in the current treatment landscape.

Our
Program History

ZEVASKYN®
is a commercial product comprised of autologous epidermal gene-modified sheets in which a functioning COL7A1 gene is inserted into a
patient’s own skin cells (keratinocytes) using a retrovirus vector. The gene-modified keratinocytes are then grown into credit
card-sized sheets and surgically applied to the patient to restore Type VII collagen expression and skin function.

Results
from a completed Phase 1/2a study that enrolled seven patients and treated 38 large and chronic RDEB wounds at Stanford University
showed that ZEVASKYN® was well-tolerated and resulted in significant and durable wound healing (Siprashvili, Z., et
al., 2016), with up to eight years of follow-up after a single surgical application (So. Y, Nazaraoff, et al., Orphanet Journal Rare
Disease 2022). To date, there have been no reported serious adverse events.

In
November 2022, we announced positive topline data from our VIITAL™ study. The pivotal phase 3 VIITAL™ study evaluated
the efficacy, safety, and tolerability of ZEVASKYN® in 43 large chronic wound pairs in 11 subjects with RDEB. The
large chronic wounds randomized and treated in VIITAL™ measured greater than 20 cm2 of surface area and had
remained open for a minimum of six months and a maximum of 21 years (mean 6.2 years). The co-primary endpoints of the study were
assessed at the six-month timepoint for: (1) the proportion of RDEB wound sites with greater than or equal to 50% healing from
baseline, comparing randomized treated with matched untreated (control) wound sites, as determined by direct investigator
assessment; and (2) patient-reported pain reduction associated with wound dressing change assessed by the mean differences in scores
of the Wong-Baker FACES® Pain Rating Scale between randomized treated and matched untreated (control)
wounds.

The
VIITAL™ study met both co-primary efficacy endpoints demonstrating statistically significant, clinically meaningful
improvements in wound healing and pain reduction in large chronic RDEB wounds. ZEVASKYN® was shown to be
well-tolerated with no serious treatment-related adverse events observed, consistent with past clinical experience. There were no
deaths or no instances of positive replication-competent retrovirus, no systemic immunologic responses were reported
during the study, as well as no squamous cell carcinoma at treatment sites after application of ZEVASKYN®. Two
subjects reported at least one serious adverse event unrelated to ZEVASKYN®. Four subjects reported related treatment
emergent adverse events, including procedural pain, muscle spasms and pruritis. Infections unrelated to ZEVASKYN®
were observed in eight patients.

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On
April 28, 2025, the FDA approved ZEVASKYN® as the first and only autologous cell-based gene therapy for the treatment
of wounds in adult and pediatric patients with RDEB. ZEVASKYN® has been granted Regenerative Medicine Advanced Therapy
(“RMAT”), Breakthrough Therapy, Orphan Drug and RPD designations by the FDA as well as Orphan Drug designation by the EMA.

Among
the potential benefits of Orphan Drug designation are a potential seven years of market exclusivity following FDA approval, potentially
preventing FDA approval of another product deemed to be the same as the approved product for the same indication, waiver of application
fees, and tax credits for qualified clinical testing expenses conducted after orphan designation is received. A sponsor who receives
an approval for a BLA with RPD designation may qualify for a Priority Review Voucher (“PRV”), subject to final determination
by the FDA. A PRV may be used to receive an expedited review of a subsequent marketing application for a different product or sold to
another company. We received a PRV upon ZEVASKYN®’s approval, and on May 9, 2025, we entered into a definitive asset
purchase agreement that transferred the PRV to a third party. The PRV sale was completed in June 2025 following early termination of
the applicable waiting period for U.S. antitrust review of the transaction. We received gross proceeds of $155.0 million from the sale
of the PRV.

We
have prepared our current cGMP facility in Cleveland, Ohio for manufacturing commercial
grade ZEVASKYN® drug product to support our commercial launch of ZEVASKYN®. ZEVASKYN® study
drug product for all our VIITAL™ study participants was manufactured at our Cleveland facility.

Commercial
Operations

Our
commercialization strategy centers on establishing and expanding a network of qualified treatment centers with the clinical expertise
and infrastructure required to administer our therapy. As of March 2026, we had activated four qualified treatment centers. These centers
were selected based on their expertise in areas such as cell and gene therapy and have undergone specialized training to administer ZEVASKYN®.

Treatment
involves obtaining a biopsy from the patient and shipping the biopsied cells to our manufacturing facility, where the patient specific
product is manufactured as multilayer cellular sheets containing gene-corrected keratinocytes. Following testing, the product is then
shipped back to the qualified treatment center where the patient receives treatment.

We
treated our first ZEVASKYN® patient in the fourth quarter of 2025.

As part of commercial launch efforts, we continue
to engage with multiple stakeholders across the healthcare system, including leading EB hospital institutions, private and public health
insurers, as well as the patient and physician community. To date, we have activated four qualified treatment centers that now can identify and treat patients with ZEVASKYN®. These qualified treatment centers are geographically dispersed across
the U.S. and include Ann & Robert H. Lurie Children’s Hospital of Chicago, Lucile Packard Children’s Hospital Stanford,
Children’s Hospital Colorado, and The University of Texas Medical Branch (UTMB) in Galveston, Texas. We have secured broad insurance coverage
for ZEVASKYN® from multiple national and regional commercial insurers as well as from the CMS (Centers for Medicare and
Medicaid Services). ZEVASKYN® has coverage from all Medicaid programs across 50 US states and Puerto Rico. Effective January
1, 2026, CMS also has issued a permanent J-code for ZEVASKYN® that we expect will simplify claims and reimbursement processing
between qualified treatment centers and all payer types.

Developing
Next-Generation Cell and Gene Therapy

ABO-503
for the treatment of X-linked Retinoschisis (“XLRS”)

Disease
Overview and Program Overview

XLRS
is a rare, monogenic retinal disease that results in the irreversible loss of photoreceptor cells and severe visual impairment. XLRS
is caused by mutations in the RS1 protein, which is normally secreted by retinal photoreceptors and bipolar neurons and functions to
mediate cell-cell adhesion. XLRS is characterized by abnormal splitting of the layers of the retina, resulting in poor visual acuity,
which can progress to legal blindness. The incidence of XLRS is estimated to be between 1 in 5,000 and 1 in 20,000 in males, with an
estimated prevalence of 35,000 in the United States and Europe combined. There are currently no disease modifying therapies approved
for XLRS, but because the genetics of the disease are well understood, early intervention via gene therapy has significant potential
to reverse or stabilize disease progression at early stages and prevent vision loss.

ABO-503,
composed of a functional human RS1 packaged in the novel AIM™ capsid AAV204, has shown preclinical efficacy following delivery
to the retina in a mouse model of XLRS. Preclinical studies have demonstrated robust RS1 expression in the retina, improved cone
photoreceptor density and overall photoreceptor cell survival, as well as a restoration of outer retina architecture. Results of
these studies were presented at the American Society of Gene and Cell Therapy (“ASGCT”) Annual Meeting in May 2023. A
pre-IND meeting for ABO-503 was conducted with the FDA in April 2023 and provided Abeona with comprehensive feedback to support a
future IND submission. Due to focus on ZEVASKYN® commercialization efforts, animal
efficacy and toxicology studies and cGMP manufacturing of clinical grade material has been postponed to 2026.

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ABO-504
for the Treatment of Stargardt Disease

Disease
Overview and Program Overview

Autosomal
recessive Stargardt disease, the most common form of juvenile macular degeneration with estimated incidence of 1 in 8,000 to 10,000 people,
causes vision loss in children and young adults. The most common form of Stargardt disease is caused by mutations in the ABCA4 gene,
which prevent removal of toxic compounds from photoreceptor cells that results in photoreceptor cell death and progressive vision loss.
There are currently no FDA approved treatments available, and to date, development of investigational gene modifying therapies has remained
challenging in part due to the large size of the ABCA4 gene, which exceeds the encapsidation capacity of a single AAV capsid.

Abeona’s
internal research and development team developed ABO-504, which is designed to efficiently reconstitute the full-length ABCA4 gene by
implementing a dual AAV vector strategy using the Cre-LoxP recombinase system. Abeona previously reported preclinical data demonstrating
the ability of the dual AAV vector system to produce full length ABCA4 protein in cell culture. Recent proof-of-concept studies, presented
at the 2023 ASGCT Annual Meeting, have extended these findings by showing expression of ABCA4 mRNA and full-length ABCA4 protein in the
retina of subretinally dosed abca4-/- knockout mice, at levels similar to endogenous ABCA4 in wild-type animals. A pre-IND meeting for
ABO-504 was conducted with the FDA in June 2023 and provided Abeona with comprehensive feedback to support a future IND submission.

ABO-505
for the Treatment of Autosomal Dominant Optic Atrophy (“ADOA”)

Disease
Overview and Program Overview

ADOA,
a form of hereditary vision loss associated with retinal ganglion cell (“RGC”) death, is predominantly caused by mutations
in the Opa1 gene. Opa1, a dynamin-related GTPase, acts to stabilize the inner mitochondrial membrane and acts in mitochondrial fusion
and inner membrane remodeling. Mutant phenotypes present with a progressive loss of RGCs that result in optic nerve degeneration and
legal blindness with a loss of visual acuity, optic disc pallor, and color vision deficits. ADOA affects approximately 1 in 30,000 people
worldwide. Currently, there is no approved treatment for people living with ADOA.

ABO-505
is designed to express a functional copy of human Opa1 in the retina following para-retinal injection. ABO-505 aims to take advantage
of the robust optic nerve and RGC transduction ability of AAV204 to deliver its genetic payload to the cells most affected by ADOA. Preclinical
studies have confirmed expression of Opa1 in both cell culture and the retinas of dosed wild-type and disease model animals. Initial
efficacy results suggest an improvement in retinal signaling to the brain and improved visual acuity in treated mutant mice. These studies
were presented at the ASGCT Annual Meeting in May 2023.

Gene
Therapy Treatments anchored in AIM™ Vector Platform

In
2016, we licensed a library of novel AAV capsids from UNC. The AIM™ vector system is a platform of AAV capsids capable of widespread
central nervous system gene transfer and can be used to confer high transduction efficiency for various therapeutic indications. In partnership
with academic institutions, our own scientific research teams have identified capsids within the AIM™ capsid library showing strong
potential to successfully target and reach the central nervous system (including the retina) as well, lung, muscle, liver, and other
tissues. Based on continuing research by Abeona and our research partners, we have observed improvements in gene delivery to specific
tissues compared to currently available AAV technology. We believe AIM™ vectors also have the potential for redosing subjects who
previously received certain AAV gene therapy or subjects who have pre-existing antibodies to naturally occurring AAV serotypes.

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In
July 2024, we entered into a non-exclusive agreement with Beacon Therapeutics (“Beacon”) under which Beacon will evaluate
Abeona’s patented AAV204 capsid for the development and commercialization of potential gene therapies for select ophthalmology
indications. Following a 12-month evaluation period, Beacon exercised its option to take a worldwide, non-exclusive license to use AAV204
in connection with up to five gene or disease targets. Beacon will also have the right to use AAV204 for up to four additional nominated
gene or disease targets subject to certain conditions. We received an upfront payment upon Beacon’s exercise of its option to license
AAV204, with additional payments upon the achievement of certain development, regulatory, and sales milestones, along with tiered royalties
on worldwide net sales for licensed products incorporating AAV204.

Strategic
Licensing Agreements

We
have out-licensed certain clinical and research programs, including for the treatment of Sanfilippo syndrome type A (MPS IIIA) to
Ultragenyx Pharmaceutical Inc. (“Ultragenyx”)) and Rett syndrome to Taysha Gene Therapies, Inc. (“Taysha”).
Under the terms of our agreement with Ultragenyx, we are eligible to receive payments based on the achievement of certain sales
milestones and royalties on net sales. Under our agreements with Taysha, we are eligible to receive payments based on certain
clinical, regulatory, and sales milestones and royalties on net sales. On February 25, 2026, the Company, UNC and Taysha jointly
terminated both the license agreement between Abeona and UNC and the corresponding sublicense agreement between
Abeona and Taysha relating to Taysha’s development program for TSHA-118 for CLN1 disease.

Leveraging
Leadership Position in Commercial-Scale Cell and Gene-Therapy Manufacturing

We
have established a cGMP manufacturing facility, the Elisa Linton Center located in Cleveland, Ohio at 6555 Carnegie Avenue, which enables
us to enhance supply chain control, establish tighter quality control testing, increase supply capacity, reduce production costs and
gain manufacturing for ZEVASKYN®. Our facility is led by a team of highly skilled production, process/assay development,
and quality control scientists with expertise in cell and gene therapy, particularly in cell culture, upstream manufacturing, downstream
purification, assay development and wet lab techniques.

We
have advanced our in-house manufacturing capabilities for ZEVASKYN®. The product is manufactured as multilayer cellular
sheets containing gene-corrected keratinocytes that is fastened to a petrolatum gauze backing with surgical titanium ligating clips.
Engineered keratinocyte sheets expressing functional Type VII collagen are applied over wound areas, providing immediate wound coverage
and allowing wound healing. A key component to the ZEVASKYN® drug product manufacturing process is the retroviral
vector, which delivers the functional copy of the Collagen VII Alpha 1 cDNA to the patient’s own cells. We manufacture the LZRSE-Col7A1
gamma retroviral vector at our Cleveland facility.

Our
AAV vector manufacturing process uses the triple plasmid transient transfection method. We insert (“transfect”) many copies
of three DNA plasmids encoding the specific therapeutic gene sequence, or transgene, the capsid coding sequence, and helper sequences
into AAV-293 cells using a serum-free, suspension-based bioreactor vector production technology. During an incubation period following
transfection, each cell produces AAV vectors through biosynthesis using the cells’ natural machinery. At the end of the incubation
period, the newly generated AAV vectors are harvested, filtered, and purified in a multi-step process.

We
have established and maintained strong and collaborative relationships with third-party companies specializing in the testing of cell
and gene therapy material to complement our process and assay development needs.

We
have made significant investments in developing optimized manufacturing processes and believe that our processes and methods developed
to date provide a comprehensive manufacturing process for ZEVASKYN® and AAV-based vector therapies, including:

We
believe that these investments will enable us to develop best-in-class, next-generation cell and gene therapy products.

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Maintain
Strong Intellectual Property Protection

We
strive to protect our commercially important proprietary technology, inventions, and know-how, including by seeking, maintaining, and
defending patent rights, both for inventions developed internally and for inventions licensed from third parties. We also rely on trade
secrets and know-how relating to our proprietary technology platforms, continuing technological innovation, and in-licensing opportunities
to develop, strengthen and maintain our position in the field of cell and gene therapy. We may also rely on the additional protections
afforded by data exclusivity (currently 12 years for biologics), other market exclusivities such as orphan drug exclusivity, and patent
term extensions, where applicable.

Our
success may depend in part on our ability to obtain and maintain patents and other protections for commercially important technology,
inventions, and know-how related to our business; defend and enforce our patents; preserve the confidentiality of our trade secrets;
and operate without infringing the valid enforceable patents and other intellectual property rights of third parties. Our ability to
stop third parties from making, having made, using, selling, offering to sell, or importing our products may depend on the extent to
which we have rights under valid and enforceable licenses, patents, or trade secrets that cover these activities. In some cases, these
rights may need to be enforced by third-party licensors. With respect to both licensed and company-owned intellectual property, we may
not be granted patents with respect to any of our pending patent applications or with respect to any patent applications filed by us
in the future, nor can we be sure that any of our existing patents or any patents that may be granted to us in the future will be commercially
useful in protecting our commercial products and methods of manufacturing the same.

We
are actively seeking U.S. and international patent protection, together with our licensors, for a variety of technologies, including
AAV capsids, AAV-based biological products, methods of designing novel AAV constructs, compositions and methods for treating diseases
of interest, including RDEB, and methods for manufacturing, packaging, and transporting our product candidates. We also intend to seek
patent protection or rely upon trade secret rights to protect other technologies that may be used to discover and validate targets and
that may be used to identify and develop novel biological products. We seek protection, in part, through confidentiality and proprietary
information agreements. We are a party to various license agreements that give us rights to use specific technologies in our research
and development, and future commercialization.

Licensed
Technologies and Intellectual Property

To
support our EB franchise, we licensed a patent family from Stanford University covering ZEVASKYN® and its use in the
treatment of RDEB. Patents covering our investigational ZEVASKYN® product have been granted in the United States
(U.S. Patent Nos. 12,110,504; 12,173,314; and 12,385,010), by the European Patent Office (EP3400287B1), by the Japan Patent Office
(JP7159048, JP7555380), and in other geographical regions, and are expected to expire in early 2037. Patent applications remain
pending in the United States which, if granted, would be expected to expire in 2037. A patent covering the packaging and transport
system for ZEVASKYN® has been granted in the United States (U.S. Patent No. 12,144,340) and is expected to expire in
mid-2040.

We
may also rely on the additional protection afforded by data exclusivity (currently 12 years for biologics like ZEVASKYN®),
other market exclusivity such as orphan drug exclusivity (currently seven years), and patent term extensions, where applicable.

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We
have an exclusive license to an international patent family from The University of North Carolina at Chapel Hill (“UNC”)
covering novel AAV capsids (“AIM™ capsids”) that may potentially be used to deliver a wide variety of therapeutic transgenes
to human cells to treat genetic diseases. National stage applications directed to the AIM™ capsids have been filed in the United
States, Europe, and other geographical regions. The first U.S. patent in this patent family, U.S. Patent No. 10,532,110 (the “‘110
Patent”), was issued to UNC on January 14, 2020. The ‘110 Patent is entitled to 352 days of patent term adjustment and will
not expire before November 6, 2036. The second U.S. patent in this patent family, U.S. Patent No. 10,561,743 (the “‘743 Patent”),
was issued to UNC on February 18, 2020. The ‘743 Patent will not expire before November 20, 2035. A third U.S. patent in this patent
family, U.S. Patent No. 11,491,242 (the “‘242 Patent”) issued on November 8, 2022. The ‘242 Patent is entitled
to 429 days of patent term adjustment and will not expire before January 22, 2037. Patents have also been granted in Australia (AU2015349759
and AU2022201540), Israel (IL252072), New Zealand (NZ731673), and Russia (RU2727015). We have exclusive rights to these patents under
our license with UNC.

We
also own a second patent family directed to certain AAV capsids and have filed national stage applications in the United States, Europe
and other geographical regions. U.S. Patent No. 12,454,701 (the “‘701 Patent”), was issued on October 28, 2025. The ‘701
patent is entitled to 1179 days of patent term adjustment and will not expire before February 25, 2043. A patent has also been granted
in Japan (JP7590968).

We
have licensed rights to one patent family from UNC and two patent families from The University Court of the University of Edinburgh (“U.
Edinburgh”) and The University Court of the University of Glasgow (“U. Glasgow”) relating to gene therapy for the treatment
of Rett Syndrome. The patent family licensed from UNC at Chapel Hill is directed to viral genomes designed to regulate expression of
the MeCP2 gene, which is mutated in patients with Rett Syndrome. This patent family has pending applications in the United States, Europe
and other geographical regions. Patents issuing from these applications would have a 20-year expiration date of no earlier than 2039.
U.S. Patent No. 12,311,034 was issued to UNC on May 27, 2025 in this family. The patent families licensed from U. Edinburgh and U. Glasgow
are directed to expression cassettes for MeCP2 polypeptides and to synthetic MeCP2 polypeptides. The patent family directed to MeCP2
expression cassettes has pending applications in the United States, Europe and other geographical regions. The patent family directed
to synthetic MeCP2 polypeptides has pending applications in the United States and other geographical regions. Patents issuing from applications
in the Edinburgh patent families would have a 20-year expiration date of no earlier than 2038. U.S. Patent No. 11,969,479 was issued
to U. Edinburgh and U. Glasgow in in this patent family on April 20, 2024. In October 2020, we entered into an agreement exclusively
sublicensing these UNC and University of Edinburgh patent rights to Taysha Gene Therapies, Inc.

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We
own three patent families directed to multipartite delivery of large transgenes using AAV vectors. For two of these patent families we
have filed national stage applications in the United States, Europe and other geographical regions. Patents issuing from these applications
are not expected to expire before 2041 for the first patent family, or before 2044 for the second patent family. A European patent application
in the first patent family (EP4182467) is allowed and will be validated in European states in 2026. We have also filed a U.S. provisional
application in the third patent family. Patents issuing from the provisional application are not expected to expire before 2046.

We
own a patent family directed to (i) novel AAV capsid proteins and (ii) treating ophthalmic diseases via para-retinal administration of
AAV vectors and have filed national stage applications in the United States, Europe, and other geographical regions. Patents issuing
from these applications are not expected to expire before 2042.

We
own a patent family directed to compositions and methods for treating dominant optic atrophy and X-linked retinoschisis and have filed
national stage applications in the United States, Europe, and other geographical regions. Patents issuing from these applications are
not expected to expire before 2043.

We
expect to explore in due course strategies to support patent term extensions for all of our patent portfolios.

U.S.
Biologic Products Development Process

In
the United States, the FDA regulates biologic products including gene therapy products under the Federal Food, Drug, and Cosmetic Act
(“FDCA”), the Public Health Service Act (“PHSA”), and regulations implementing these laws. The FDCA, PHSA and
their corresponding regulations govern, among other things, the testing, manufacturing, safety, efficacy, labeling, packaging, storage,
record keeping, distribution, advertising, and promotion of biologic products. Applications to the FDA are required before conducting
human clinical testing of biologic products. FDA approval also must be obtained before marketing of biologic products. Gene therapy studies
may also need to comply with the National Institutes of Health (“NIH”) Guidelines for Research Involving Recombinant or Synthetic
Nucleic Acid Molecules (“NIH Guidelines”), which includes additional requirements, such as the review and approval of the
study by an Institutional Biosafety Committee.

Within
the FDA, the Center for Biologics Evaluation and Research (“CBER”) regulates gene therapy products. Within CBER, the review
of gene therapy and related products is consolidated in the Office of Tissues and Advanced Therapies (“OTAT”) and the FDA
has established the Cellular, Tissue and Gene Therapies Advisory Committee (“CTGTAC”), a panel of medical and scientific
experts and consumer representatives, to advise CBER on its reviews. The FDA has issued a growing body of guidance documents on CMC,
clinical investigations and other areas of gene therapy development, all of which are intended to facilitate the industry’s development
of gene therapy products.

The
process required by the FDA before a biologic product candidate may be marketed in the United States generally involves the following:

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Before
testing any biologic product candidate on humans, including a gene therapy product candidate, the product candidate must undergo preclinical
testing. Preclinical tests, also referred to as nonclinical studies, include laboratory evaluations of product chemistry, toxicity, and
formulation, as well as in vivo studies to assess the potential safety and activity of the product candidate. The conduct of the preclinical
tests must comply with federal regulations and requirements including GLPs.

If
a gene therapy trial is conducted at, or sponsored by, institutions receiving NIH funding for recombinant DNA research, the study must
also comply with the NIH Guidelines. Compliance with the NIH Guidelines is mandatory for investigators at institutions receiving NIH
funds for research involving recombinant DNA. However, many companies and other institutions, not otherwise subject to the NIH Guidelines,
voluntarily follow them.

The
clinical trial sponsor must submit the results of the preclinical tests, together with manufacturing information, analytical data, any
available clinical data or literature and a proposed clinical protocol, to the FDA as part of the IND. Some preclinical testing may continue
even after the IND is submitted. The IND automatically becomes effective 30 days after receipt by the FDA, unless the FDA places the
clinical trial on a clinical hold. In such a case, the IND sponsor and the FDA must resolve any outstanding concerns before the clinical
trial can begin. The FDA also may impose clinical holds on a biologic product candidate at any time before or during clinical trials
due to safety concerns or non-compliance. If the FDA imposes a clinical hold, trials may not commence or recommence without FDA authorization
and then only under terms authorized by the FDA.

Human
clinical trials under an IND

Clinical
trials involve the administration of the biologic product candidate to healthy volunteers or patients under the supervision of qualified
investigators, which generally are physicians not employed by, or under the control of, the trial sponsor. Investigators must also provide
certain information to the clinical trial sponsors to allow the sponsors to make certain financial disclosures to the FDA. Clinical trials
are conducted under protocols detailing, among other things, the objectives of the clinical trial, dosing procedures, subject selection
and exclusion criteria and the parameters to be used to monitor subject safety, including stopping rules that assure a clinical trial
will be stopped if certain adverse events should occur. Each protocol and any amendments to the protocol must be submitted to the FDA
as part of the IND. Clinical trials must be conducted and monitored in accordance with the FDA’s regulations comprising the GCP
requirements, including the requirement that all research subjects provide informed consent.

Further,
each clinical trial must be reviewed and approved by an IRB at or servicing each institution at which the clinical trial will be conducted.
An IRB is charged with protecting the welfare and rights of trial participants and considers items such as whether the risks to individuals
participating in the clinical trials are minimized and are reasonable in relation to anticipated benefits. The IRB also approves communications
to study subjects before a study commences at that site and the form and content of the informed consent that must be signed by each
clinical trial subject, or his or her legal representative, and must monitor the clinical trial until completed. Clinical trials involving
recombinant DNA also must be reviewed by an institutional biosafety committee (“IBC”), a local institutional committee that
reviews and oversees basic and clinical research that utilizes recombinant DNA at that institution. The IBC assesses the safety of the
research and identifies any potential risk to public health or the environment.

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Information
about certain clinical trials, including a description of the study and study results, must be submitted within specific timeframes to
NIH for public dissemination on their clinicaltrials.gov website. Sponsors or distributors of investigational products for the diagnosis,
monitoring, or treatment of one or more serious diseases or conditions must also have a publicly available policy on evaluating and responding
to requests for expanded access requests.

Investigational
biologics and therapeutic substances imported into the United States are also subject to regulation by the FDA. Further, the export of
investigational products outside of the United States is subject to regulatory requirements of the receiving country as well as U.S.
export requirements under the FDCA.

Human
clinical trials typically are conducted in three sequential phases that may overlap or be combined:

Additional
kinds of data may also help to support a BLA, such as patient experience data. Real world evidence may also support a BLA, and, for appropriate
indications sought through supplemental BLAs, data summaries may provide marketing application support. For genetically targeted products
and variant protein targeted products intended to address an unmet medical need in one or more patient subgroups with a serious or life
threatening rare disease or condition, the FDA may allow a sponsor to rely upon data and information previously developed by the sponsor
or for which the sponsor has a right of reference, that was submitted previously to support an approved application for a product that
incorporates or utilizes the same or similar genetically targeted technology or a product that is the same or utilizes the same variant
protein targeted drug as the product that is the subject of the application.

Post-approval
clinical trials, sometimes referred to as phase IV clinical trials, may be conducted or may be required by FDA after initial approval.
These clinical trials are used to gain additional experience from the treatment of patients in the intended therapeutic indication, particularly
for long-term safety follow-up.

During
all phases of clinical development, regulatory agencies require extensive monitoring and auditing of all clinical activities, clinical
data, and clinical trial investigators. Annual progress reports detailing the results of the clinical trials must be submitted to the
FDA.

Written
IND safety reports must be promptly submitted to the FDA, IRBs, IBCs, and the investigators for serious and unexpected adverse events;
any findings from other trials, in vivo laboratory tests or in vitro testing that suggest a significant risk for human subjects; any
clinically important increase in the rate of a serious suspected adverse reaction over that listed in the protocol or investigator brochure,
or other safety information. The sponsor must submit an IND safety report within 15 calendar days after the sponsor determines that the
information qualifies for reporting. The sponsor also must notify the FDA of any unexpected fatal or life-threatening suspected adverse
reaction within seven calendar days after the sponsor’s initial receipt of the information.

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The
FDA, the sponsor or its data safety monitoring board, may suspend a clinical trial at any time on various grounds, including a finding
that the research subjects or patients are being exposed to an unacceptable health risk. Similarly, an IRB can suspend or terminate approval
of a clinical trial at its institution if the clinical trial is not being conducted in accordance with the IRB’s requirements or
if the biologic product candidate has been associated with unexpected serious harm to patients. The FDA or an IRB may also impose conditions
on the conduct of a clinical trial.

Additional
regulation for gene therapy clinical trials

In
addition to the regulations discussed above, there are a number of additional standards that apply to clinical trials involving the use
of gene therapy. The FDA has issued various guidance documents regarding gene therapies, which outline additional factors that the FDA
will consider at each of the above stages of development and relate to, among other things: the proper preclinical assessment of gene
therapies; the CMC information that should be included in an IND application; the proper design of tests to measure product efficacy
in support of an IND or BLA application; and long term patient and clinical study subject follow up and reporting requirements. The FDA
has also issued draft guidance specific to the development of gene therapy products for neurodegenerative diseases as such products may
face special challenges related to CMCs and clinical and preclinical development, due to the nature of the products and potential patient
population (e.g., children), the heterogeneity of neurodegenerative disorders, the route of administration, the volume of the product
that can be administered, the delivery device, and the study population size.

Compliance
with cGMP requirements

Manufacturers
of biologics must comply with applicable cGMP regulations for both clinical and commercial supply. Manufacturers and others involved
in the manufacture and distribution of such products at the commercial stage also must register their establishments with the FDA and
certain state agencies and list the manufactured products. Recently, the information that must be submitted to FDA regarding manufactured
products was expanded through the Coronavirus Aid, Relief, and Economic Security, or CARES Act to include the volume of drugs produced
during the prior year. Both domestic and foreign manufacturing establishments must register and provide additional information to the
FDA upon their initial participation in the manufacturing process. Establishments may be subject to periodic, unannounced inspections
by government authorities to ensure compliance with cGMP requirements and other laws. Discovery of problems may result in a government
entity placing restrictions on a product, manufacturer, or holder of an approved BLA, and may extend to requiring withdrawal of the product
from the market. The FDA will not approve an application unless it determines that the manufacturing processes and facilities comply
with cGMP requirements and are adequate to ensure consistent production of the product within required specification.

Concurrent
with clinical trials, companies usually complete additional preclinical studies and must also develop additional information about the
physical characteristics of the biologic product candidate as well as finalize a process for manufacturing the product candidate in commercial
quantities in accordance with cGMP requirements. To help reduce the risk of the introduction of adventitious agents or of causing other
adverse events with the use of biologic products, the PHSA emphasizes the importance of manufacturing control for products whose attributes
cannot be precisely defined. The manufacturing process must be capable of consistently producing quality batches of the product candidate
and, among other requirements, the sponsor must develop methods for testing the identity, strength, quality, potency and purity of the
final biologic product. Additionally, appropriate packaging must be selected and tested, and stability studies must be conducted to demonstrate
that the biologic product candidate does not undergo unacceptable deterioration over its shelf life.

U.S.
review and approval processes

The
results of the preclinical tests and clinical trials, together with detailed information relating to the product’s CMC and proposed
labeling, among other things, are submitted to the FDA as part of a BLA requesting approval to market the product for one or more indications.

For
gene therapies, selecting patients with applicable genetic defects is a necessary condition for effective treatment. For the therapies
we are currently developing, we believe that diagnoses based on symptoms, in conjunction with existing genetic tests developed and administered
by laboratories certified under the Clinical Laboratory Improvement Amendments, are sufficient to select appropriate patients and will
be permitted by the FDA. For future therapies, however, it may be necessary to use FDA-cleared or FDA-approved diagnostic tests to select
patients or to assure the safe and effective use of therapies in appropriate patients. The FDA refers to such tests as in vitro companion
diagnostic devices and the combination of the in vitro companion diagnostic device and the therapeutic would be considered to be a combination
product.

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The
use of the two products together must be shown to be safe and effective for the proposed intended use and the labeling of the two products
must reflect their combined use. In some cases, the device component may require a separate premarket submission; for example, when the
device component is intended for use with multiple drug products. Sponsors of clinical studies using investigational devices are required
to comply with FDA’s investigational device exemption regulations. Once approved or cleared, the sponsor of the device component
submission (or the combination product submission, if both components are covered by one premarket submission) would need to comply with
FDA’s post-market device requirements, including establishment registration, device listing, device labeling, unique device identifier,
quality system regulation, medical device reporting, and reporting of corrections and removals requirements.

The
FDA has a policy position that, when safe and effective use of a therapeutic product depends on a diagnostic device, the FDA generally
will require approval or clearance of the diagnostic device at the same time that the FDA approves the therapeutic product. The type
of premarket submission required for a companion diagnostic device will depend on the FDA classification of the device. A premarket approval,
or PMA, application is required for high-risk devices classified as Class III; a 510(k) premarket notification is required for moderate
risk devices classified as Class II; and a de novo request may be used for novel devices not previously classified by the FDA
that are low or moderate risk.

The
FDA may, however, approve a therapeutic product without the concurrent approval or clearance of a diagnostic device when the therapeutic
product is intended to treat serious and life-threatening conditions for which no alternative exists and the FDA determines that the
benefits from the use of the drug/biologic outweigh the risks from the lack of an approved/cleared companion diagnostic. The FDA would
also consider whether additional protections, such as risk evaluation and mitigation strategies, or REMS, or post-approval requirements,
are necessary. At this point, it is unclear how the FDA will apply this policy to our gene therapy candidates. Should the FDA deem genetic
tests used for selecting appropriate patients for our therapies to be in vitro companion diagnostics requiring FDA clearance or approval,
we may face significant delays or obstacles in obtaining approval for a BLA. In addition, under the Pediatric Research Equity Act (“PREA”),
a BLA or supplement to a BLA must contain data to assess the safety and effectiveness of the biologic product candidate for the claimed
indications in all relevant pediatric subpopulations and to support dosing and administration for each pediatric subpopulation for which
the product candidate is safe and effective. The FDA may grant deferrals for submission of data or full or partial waivers. Unless otherwise
required by regulation, PREA does not apply to any biologic product candidate for an indication for which orphan designation has been
granted.

Under
the PDUFA, each BLA must be accompanied by a substantial user fee that must be paid at the time of the first submission of the application,
even if the application is being submitted on a rolling basis. The FDA adjusts the PDUFA user fees on an annual basis. Fee waivers or
reductions are available in certain circumstances, including a waiver of the application fee for the first application filed by a small
business. Additionally, no user fees are assessed on BLAs for product candidates designated as orphan drugs, unless the product candidate
also includes a non-orphan indication.

The
FDA reviews a BLA within 60 days of submission to determine if it is substantially complete before the agency accepts it for filing.
The FDA may refuse to accept for filing any BLA that it deems incomplete or not properly reviewable at the time of submission and may
request additional information. In that event, the BLA must be resubmitted with the additional information. The resubmitted application
also is subject to review before the FDA accepts it for filing. Once the submission is accepted for filing, the FDA begins an in-depth,
substantive review of the BLA.

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The
FDA reviews the BLA to determine, among other things, whether the proposed product candidate is safe and potent, or effective, for its
intended use, has an acceptable purity profile and whether the product candidate is being manufactured in accordance with cGMP to assure
and preserve the product candidate’s identity, safety, strength, quality, potency, and purity. The FDA may refer applications for
novel biologic products or biologic products that present difficult questions of safety or efficacy to an advisory committee, typically
a panel that includes clinicians and other experts, for review, evaluation, and a recommendation as to whether the application should
be approved and under what conditions. The FDA is not bound by the recommendations of an advisory committee, but it considers such recommendations
carefully when making decisions. During the product approval process, the FDA also will determine whether a REMS is necessary to ensure
the safe use of the product candidate. A REMS could include medication guides, physician communication plans and elements to assure safe
use, such as restricted distribution methods, patient registries, and other risk minimization tools. If the FDA concludes a REMS is needed,
the sponsor of the BLA must submit a proposed REMS; the FDA will not approve the BLA without a REMS, if required.

Before
approving a BLA, the FDA will inspect the facilities at which the product candidate is manufactured. The FDA will not approve the product
candidate unless it determines that the manufacturing processes and facilities comply with cGMP requirements and are adequate to assure
consistent production of the product candidate within required specifications. Additionally, before approving a BLA, the FDA typically
will inspect one or more clinical sites to assure that the clinical trials were conducted in compliance with IND trial requirements and
GCP requirements.

On
the basis of the BLA and accompanying information, including the results of the inspection of the manufacturing facilities, the FDA may
issue an approval letter or a complete response letter. An approval letter authorizes commercial marketing of the biologic product with
specific prescribing information for specific indications. A CRL generally outlines the deficiencies in the submission and may require
substantial additional testing or information for the FDA to reconsider the application. If a CRL is issued, the applicant may either:
resubmit the marketing application, addressing all of the deficiencies identified in the letter; withdraw the application; or request
an opportunity for a hearing. If those deficiencies have been addressed to the FDA’s satisfaction in a resubmission of the BLA,
the FDA will issue an approval letter.

If
a product candidate receives regulatory approval, the approval may be significantly limited to specific diseases, patient populations,
and dosages or the indications for use may otherwise be limited. Further, the FDA may require that certain contraindications, warnings,
or precautions be included in the product labeling. The FDA also may not approve label statements that are necessary for successful commercialization
and marketing. The FDA may impose restrictions and conditions on product distribution, prescribing or dispensing in the form of a REMS,
or otherwise limit the scope of any approval. In addition, the FDA may require post-marketing clinical trials, sometimes referred to
as phase IV clinical trials, designed to further assess a biologic product’s safety and effectiveness, and testing and surveillance
programs to monitor the safety of approved products that have been commercialized.

The
FDA has agreed to specified performance goals in the review of BLAs under the PDUFA. One such goal is to review 90% of standard BLAs
in 10 months after the FDA accepts the BLA for filing, and 90% of priority BLAs in six months, whereupon a review decision is to be made.
The FDA does not always meet its PDUFA goal dates for standard and priority BLAs and its review goals are subject to change from time
to time. The review process and the PDUFA goal date may also be extended if new information is submitted to the application.

Orphan
drug designation

Under
the Orphan Drug Act, the FDA may designate a biologic product as an “orphan drug” if it is intended to treat a rare disease
or condition (generally meaning that it affects fewer than 200,000 individuals in the United States, or more in cases in which there
is no reasonable expectation that the cost of developing and making a biologic product available in the United States for treatment of
the disease or condition will be recovered from sales of the product). Additionally, sponsors must present a plausible hypothesis for
clinical superiority to obtain orphan drug designation if there is a product already approved by the FDA that is considered by the FDA
to be the same as the already approved product and is intended for the same indication. This hypothesis must be demonstrated to obtain
orphan exclusivity. Orphan product designation must be requested before submitting a BLA. After the FDA grants orphan product designation,
the identity of the therapeutic agent and its potential orphan use are disclosed publicly by the FDA. If granted, prior to product approval,
orphan drug designation entitles a party to financial incentives such as opportunities for grant funding towards clinical study costs,
tax advantages, and certain user-fee waivers. The tax advantages, however, were limited in the 2017 Tax Cuts and Jobs Act. Orphan product
designation does not shorten the duration of the regulatory review and approval process.

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If
a product with orphan status receives the first FDA approval for the disease or condition for which it has such designation, the product
is entitled to orphan product exclusivity, meaning that the FDA may not approve any other applications to market the same drug or biologic
product for the same indication for seven years, except in limited circumstances, such as a showing of clinical superiority to the product
with orphan exclusivity or if the party holding the exclusivity fails to assure the availability of sufficient quantities of the drug
to meet the needs of patients with the disease or condition for which the drug was designated. Orphan product sameness decisions are
an evolving space. FDA has issued a final guidance document on how the agency will determine the “sameness” of gene therapy
products. Pursuant to the guidance, “sameness” will depend on the product’s transgene expression, viral vectors groups
and variants, and other product features that may have a therapeutic effect. Generally, minor differences between gene therapy products
will not result in a finding that two products are different. Any FDA sameness determinations could impact our ability to receive approval
for our product candidates and to obtain or retain orphan drug exclusivity. Competitors additionally may receive approval of different
products for the same indication for which the orphan product has exclusivity or obtain approval for the same product but for a different
indication for which the orphan product has exclusivity. Orphan medicinal product status in the European Union has similar, but not identical,
benefits.

Expedited
development and review programs

The
FDA is authorized to expedite the review of BLAs in several ways. Under the Fast Track program, the sponsor of a biologic product candidate
may request the FDA to designate the product for a specific indication as a Fast Track product concurrent with or after the filing of
the IND. Biologic products are eligible for Fast Track designation if they are intended to treat a serious or life-threatening condition
and demonstrate the potential to address unmet medical needs for the condition. Fast Track designation applies to the combination of
the product candidate and the specific indication for which it is being studied. In addition to other benefits, such as the ability to
have greater interactions with the FDA, the FDA may initiate review of sections of a Fast Track BLA before the application is complete,
a process known as rolling review. This “rolling review” is available if the applicant provides and the FDA approves a schedule
for the remaining information.

Any
product submitted to the FDA for marketing, including under a Fast Track program, may be eligible for other types of FDA programs intended
to expedite development and review, such as breakthrough therapy designation, priority review and accelerated approval.

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Fast
Track designation, breakthrough therapy designation, priority review and accelerated approval do not change the standards for approval
but may expedite the development or approval process. Even if a product qualifies for one or more of these programs, the FDA may later
decide that the product no longer meets the conditions for qualification or decide that the time period for FDA review or approval will
not be shortened.

Finally,
with passage of the 21st Century Cures Act (the “Cures Act”) in December 2016, Congress authorized the FDA to
accelerate review and approval of products designated as regenerative advanced therapies. A product is eligible for this designation
if it is a regenerative medicine therapy (which may include a cell or gene therapy) that is intended to treat, modify, reverse, or cure
a serious or life-threatening disease or condition and preliminary clinical evidence indicates that the drug has the potential to address
unmet medical needs for such disease or condition. The benefits of a regenerative advanced therapy designation include early interactions
with the FDA to expedite development and review, benefits available to breakthrough therapies, potential eligibility for priority review
and accelerated approval based on surrogate or intermediate endpoints.

Post-approval
requirements

Rigorous
and extensive FDA regulation of biologic products continues after approval, particularly with respect to cGMP requirements. Manufacturers
are required to comply with applicable requirements in the cGMP regulations, including quality control and quality assurance and maintenance
of records and documentation. Other post-approval requirements applicable to biologic products include reporting of cGMP deviations that
may affect the identity, potency, purity and overall safety of a distributed product, record-keeping requirements, reporting of adverse
events, reporting updated safety and efficacy information, and complying with electronic record and signature requirements.

To
help reduce the increased risk of the introduction of adventitious agents, the PHSA emphasizes the importance of manufacturing controls
for products whose attributes cannot be precisely defined. The PHSA also provides authority to the FDA to immediately suspend licenses
in situations where there exists a danger to public health, to prepare or procure products in the event of shortages and critical public
health needs, and to authorize the creation and enforcement of regulations to prevent the introduction or spread of communicable diseases
in the United States and between states. After a BLA is approved, the product also may be subject to official lot release. If the product
is subject to official lot release by the FDA, the manufacturer submits samples of each lot of product to the FDA, together with a release
protocol, showing a summary of the history of manufacture of the lot and the results of all tests performed on the lot. The FDA also
may perform certain confirmatory tests on lots of some products before releasing the lots for distribution. In addition, the FDA conducts
laboratory research related to the regulatory standards on the safety, purity, potency, and effectiveness of biologic products.

There
also are continuing annual program user fee requirements for approved products, excluding orphan products. In addition, manufacturers
and other entities involved in the manufacture and distribution of approved therapeutics are subject to periodic announced and unannounced
inspections by the FDA and these state agencies for compliance with cGMP and other requirements, which impose certain procedural and
documentation requirements upon the company and third-party manufacturers.

A
sponsor also must comply with the FDA’s marketing, advertising, and promotion requirements, such as those related to direct-to-consumer
advertising, the prohibition on promoting products for uses or in patient populations that are not described in the product’s approved
labeling (known as “off-label use”), industry-sponsored scientific and educational activities and promotional activities
involving the Internet. A company can make only those claims relating to a product that are approved by the FDA. Physicians, in their
independent professional medical judgment, may prescribe legally available products for unapproved indications that are not described
in the product’s labeling and that differ from those tested and approved by the FDA. Biopharmaceutical companies, however, are
required to promote their products only for the approved indications and in accordance with the provisions of the approved label. The
FDA and other agencies actively enforce the laws and regulations prohibiting the promotion of off-label uses, and a company that is found
to have improperly promoted off-label uses may be subject to significant liability, including, but not limited to, criminal and civil
penalties under the FDCA and False Claims Act, exclusion from participation in federal healthcare programs, mandatory compliance programs
under corporate integrity agreements, suspension and debarment from government contracts, and refusal of orders under existing government
contracts.

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In
addition, the distribution of prescription biopharmaceutical samples is subject to the Prescription Drug Marketing Act (“PDMA”),
which regulates the distribution of samples at the federal level. Both the PDMA and state laws limit the distribution of prescription
biopharmaceutical products. Certain reporting related to samples is also required. Free trial or starter prescriptions provided through
pharmacies are also subject to regulations under the Medicaid Drug Rebate Program and potential liability under anti-kickback and false
claims laws.

Moreover,
the enacted Drug Quality and Security Act (“DQSA”), imposed obligations on sponsors of biopharmaceutical products related
to product tracking and tracing. Among the requirements of this legislation, sponsors are required to provide certain information regarding
the products to individuals and entities to which product ownership is transferred, are required to label products with a product identifier,
and are required to keep certain records regarding the product. The transfer of information to subsequent product owners by sponsors
is also required to be done electronically. Sponsors must also verify that purchasers of the sponsors’ products are appropriately
licensed. Further, under this legislation manufacturers have product investigation, quarantine, disposition, and notification responsibilities
related to counterfeit, diverted, stolen, and intentionally adulterated products that would result in serious adverse health consequences
or death to humans, as well as products that are the subject of fraudulent transactions or which are otherwise unfit for distribution
such that they would be reasonably likely to result in serious health consequences or death. Similar requirements additionally are and
will be imposed through this legislation on other companies within the biopharmaceutical product supply chain, such as distributors and
dispensers, as well as certain sponsor licensees and affiliates.

Discovery
of previously unknown problems or the failure to comply with the applicable regulatory requirements may result in restrictions on the
marketing of a product or withdrawal of the product from the market as well as possible civil or criminal sanctions. Further, should
new safety information arise, additional testing or FDA notification may be required. In addition, changes to the manufacturing process
or facility generally require prior FDA approval before being implemented and other types of changes to the approved product, such as
adding new indications and additional labeling claims, are also subject to further FDA review and approval.

Failure
to comply with the applicable U.S. requirements at any time during the product development process, approval process or after approval,
may subject an applicant or manufacturer to administrative or judicial civil or criminal actions and adverse publicity. These actions
could include refusal to approve pending applications or supplemental applications, withdrawal of an approval, clinical hold, suspension
or termination of clinical trial by an IRB, warning or untitled letters, product recalls, adverse publicity, product seizures, total
or partial suspension of production or distribution, injunctions, fines or other monetary penalties, refusals of government contracts,
mandated corrective advertising or communications to healthcare professionals or patients, exclusion from participation in federal and
state healthcare programs, debarment, restitution, disgorgement of profits or other civil or criminal penalties.

U.S.
patent term restoration and marketing exclusivity

Depending
upon the timing, duration, and specifics of FDA approval of product candidates, some of a sponsor’s U.S. patents may be eligible
for limited patent term extension under the Drug Price Competition and Patent Term Restoration Act of 1984. The Hatch-Waxman Amendments
permit a patent restoration term of up to five years to account for patent term lost during the FDA regulatory review process. However,
patent term restoration cannot extend the remaining term of a patent beyond a total of 14 years from the product’s approval date.
The patent term restoration period generally is one-half the time between the effective date of an IND and the submission date of a BLA
plus the time between the submission date of a BLA and the approval of that application. This period may also be reduced by any time
that the applicant did not act with due diligence. Only one patent applicable to an approved biologic product is eligible for the extension
and the application for the extension must be submitted prior to the expiration of the patent. The United States Patent and Trademark
Office (“USPTO”), in consultation with the FDA, reviews and approves the application for any patent term extension or restoration.

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Pediatric
exclusivity

Pediatric
exclusivity is a type of non-patent marketing exclusivity in the United States that, if granted, provides for the attachment of an additional
six months of marketing protection to the term of any existing regulatory exclusivity, including the non-patent and orphan exclusivity.
This six-month exclusivity may be granted if a BLA sponsor submits pediatric data that fairly responds to a written request from the
FDA for such data. The data does not need to show the product to be effective in the pediatric population studied; rather, if the clinical
trial is deemed to fairly respond to the FDA’s request, the additional protection is granted. If reports of requested pediatric
studies are submitted to, and accepted by, the FDA within the statutory time limits, whatever statutory or regulatory periods of exclusivity
or patent protection that cover the product are extended by six months. This is not a patent term extension, but it effectively extends
the regulatory period during which the FDA cannot accept or approve a biosimilar application.

Biosimilars
and exclusivity

The
Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act (“PPACA”), created
an abbreviated approval pathway for biologic products shown to be similar to, or interchangeable with, an FDA-licensed reference biologic
product, referred to as biosimilars. For the FDA to approve a biosimilar product, it must find that the biosimilar product is highly
similar to the reference product notwithstanding minor differences in clinically inactive components, and that there are no clinically
meaningful differences between the reference product and proposed biosimilar product. Interchangeability requires that a product is biosimilar
to the reference product and the product must demonstrate that it can be expected to produce the same clinical results as the reference
product and, for products administered multiple times, the biologic and the reference biologic may be switched after one has been previously
administered without increasing safety risks or risks of diminished efficacy relative to exclusive use of the reference biologic.

A
reference biologic is granted 12 years of exclusivity from the time of first licensure of the reference product. An application for a
biosimilar product may not be submitted to the FDA until four years following approval of the reference product, and it may not be approved
until 12 years thereafter. These exclusivity provisions only apply to biosimilars—companies that rely on their own data and file
a full BLA may be approved earlier than 12 years. Moreover, certain changes and supplements to an approved BLA, and subsequent applications
filed by the same sponsor, manufacturer, licensor, predecessor in interest, or other related entity do not qualify for the twelve-year
exclusivity period. The PHSA also includes provisions to protect reference products that have patent protection. The biosimilar product
sponsor and reference product sponsor may exchange certain patent and product information for the purpose of determining whether there
should be a legal patent challenge. Based on the outcome of negotiations surrounding the exchanged information, the reference product
sponsor may bring a patent infringement suit and injunction proceedings against the biosimilar product sponsor. The biosimilar applicant
may also be able to bring an action for declaratory judgment concerning the patent.

In
an effort to increase competition in the biologic product marketplace, Congress, the executive branch, and the FDA have taken certain
legislative and regulatory steps. For example, in 2020 the FDA finalized a guidance to facilitate product importation. Moreover, the
2020 Further Consolidated Appropriations Act included provisions requiring that sponsors of approved biologic products, including those
subject to REMS, provide samples of the approved products to persons developing biosimilar products within specified timeframes, in sufficient
quantities, and on commercially reasonable market-based terms. Failure to do so can subject the approved product sponsor to civil actions,
penalties, and responsibility for attorney’s fees and costs of the civil action. This same bill also includes provisions with respect
to shared and separate REMS programs for reference and generic drug products.

Rare
Pediatric Disease Priority Review Voucher Program

Under
the Rare Pediatric Disease Priority Review Voucher Program, the FDA can award priority review vouchers to sponsors of rare pediatric
disease products where the product is intended to treat serious or life-threatening diseases that primarily affect individuals up to
age 18. To qualify, the product must contain no active ingredient (including any ester or salt of the active ingredient) that has
been previously approved by the FDA. The application must also meet other qualifying criteria, including eligibility for FDA
priority review. If the necessary qualifying criteria are met, upon a sponsor’s request and product approval, the FDA may
award a priority review voucher. This voucher may be transferred and may be redeemed to receive priority review of a subsequent
marketing application for a different product. Use of a priority review voucher is subject to an FDA user fee. As these vouchers are
transferable, sponsors may sell these vouchers for substantial sums of money. Vouchers may, however, be revoked by the FDA under
certain circumstances and sponsors of approved rare pediatric disease products must submit certain reports to the FDA. To take
advantage of the benefits of this program, the product must be designated by the FDA for a rare pediatric disease no later than
September 30, 2029.

The
Rare Pediatric Disease Priority Review Voucher program has been subject to periodic statutory sunset provisions and extensions. Under
the current statutory sunset provisions, the FDA may only award a rare pediatric disease priority review voucher if the NDA for the product
is approved before September 30, 2029. After September 30, 2029, the FDA may not award any rare pediatric disease priority review vouchers,
unless Congress extends the program further.

20

Government
regulation outside of the United States

In
addition to regulations in the United States, sponsors are subject to a variety of regulations in other jurisdictions governing, among
other things, clinical trials and any commercial sales and distribution of biologic products. Because biologically-sourced raw materials
are subject to unique contamination risks, their use may be restricted in some countries.

Whether
or not a sponsor obtains FDA approval for a product, a sponsor must obtain the requisite approvals from regulatory authorities in foreign
countries prior to the commencement of clinical trials or marketing of the product in those countries. Certain countries outside of the
United States have a similar process that requires the submission of a clinical trial application, much like the IND, prior to the commencement
of human clinical trials. Save where the Clinical Trial Regulation applies (see below) in relation to cross-border trials, in the European
Union, for example, a request for a Clinical Trial Authorization (“CTA”) must be submitted to the competent regulatory authorities
and the competent Ethics Committees in the European Union Member States in which the clinical trial takes place, much like the FDA and
the IRB, respectively. Once the CTA request is approved in accordance with the European Union and the European Union Member State’s
requirements, clinical trial development may proceed.

The
requirements and processes governing the conduct of clinical trials, product licensing, pricing and reimbursement vary from country to
country. In all cases, the clinical trials are conducted in accordance with GCPs and the applicable regulatory requirements and the ethical
principles that have their origin in the Declaration of Helsinki.

Failure
to comply with applicable foreign regulatory requirements may result in, among other things, fines, suspension, variation or withdrawal
of regulatory approvals, product recalls, seizure of products, operating restrictions, and criminal prosecution.

European
Union regulation and exclusivity

To
obtain regulatory approval of an investigational biologic product under European Union regulatory systems, applicants must submit a marketing
authorization application (“MAA”). The grant of marketing authorization in the European Union for products containing viable
human tissues or cells such as gene therapy medicinal products is governed by Regulation 1394/2007/EC on advanced therapy medicinal products,
read in combination with Directive 2001/83/EC of the European Parliament and of the Council, commonly known as the Community code on
medicinal products and Regulation (EC) 726/2004 of the European Parliament and of the Council laying down Union procedures for the authorization
and supervision of medicinal products for human and veterinary use and establishing a European Medicines Agency. Regulation 1394/2007/EC
lays down specific rules concerning the authorization, supervision and pharmacovigilance of gene therapy medicinal products, somatic
cell therapy medicinal products and tissue engineered products. Manufacturers of advanced therapy medicinal products must demonstrate
the quality, safety and efficacy of their products to the EMA which provides an opinion regarding the application for marketing authorization.
The European Commission grants or refuses marketing authorization in light of the opinion delivered by EMA.

Innovative
medicinal products are authorized in the European Union based on a full marketing authorization application (as opposed to an application
for marketing authorization that relies on data in the marketing authorization dossier for another, previously approved medicinal product).
Applications for marketing authorization for innovative medicinal products must contain the results of pharmaceutical tests, preclinical
tests and clinical trials conducted with the medicinal product for which marketing authorization is sought. Innovative medicinal products
for which marketing authorization is granted are entitled to eight years of data exclusivity. During this period, applicants for approval
of generics or biosimilars of these innovative products cannot make an MMA relying on data contained in the marketing authorization dossier
submitted for the innovative medicinal product to support their application and such generics or biosimilars cannot be placed on the
market until 10 years after the first EU marketing of the reference product. The overall 10-year period will be extended to a maximum
of 11 years if, during the first eight years of those 10 years, the marketing authorization holder obtains an authorization for one or
more new therapeutic indications which, during the scientific evaluation prior to their authorization, are held to bring a significant
clinical benefit in comparison with existing therapies. Even if a compound is considered to be a new chemical entity and the innovator
is able to gain the period of data exclusivity, another company, nevertheless, could also market another competing medicinal product
for the same therapeutic indication if such company obtained marketing authorization based on an MAA with a complete independent data
package of pharmaceutical tests, preclinical tests and clinical trials.

21

Products
receiving orphan designation in the European Union can receive 10 years of market exclusivity. During this 10-year period, the competent
authorities of the European Union Member States and European Commission may not accept applications or grant marketing authorization
for other similar medicinal product for the same orphan indication. There are, however, three exceptions to this principle. Marketing
authorization may be granted to a similar medicinal product for the same orphan indication if:

An
orphan product can also obtain an additional two years of market exclusivity in the European Union for the conduct of pediatric trials.
The 10-year market exclusivity may be reduced to six years if, at the end of the fifth year, it is established that the product no longer
meets the criteria for orphan designation; for example, if the product is sufficiently profitable and no longer justifies the maintenance
of market exclusivity or if the manufacturer cannot produce sufficient quantities to supply the orphan population.

The
criteria for designating an “orphan medicinal product” in the European Union are similar, in principle, to those in the United
States. Orphan medicinal products are eligible for financial incentives such as reduction of fees or fee waivers. The application for
orphan medicinal product designation must be submitted before the application for marketing authorization. Orphan medicinal product designation
does not convey any advantage in, or shorten the duration of, the regulatory review and approval process.

In
April 2014, the EU adopted a new Clinical Trials Regulation (EU) No 536/2014 (the “Clinical Trials Regulation”), which replaced
the current Clinical Trials Directive 2001/20/EC (the “Clinical Trials Directive”) on January 31, 2022. The Clinical Trial
Regulation has overhauled the previous system of approvals for clinical trials in the EU whereby all clinical trial approvals were granted
purely on a national basis. Specifically, the legislation, which is directly applicable in all member states, aims at simplifying and
streamlining the approval of clinical trials in the EU, whereby there is a streamlined application procedure via a single-entry point
and strictly defined deadlines for the assessment of clinical trial applications. However, the Clinical Trial Regulation does increase
public disclosure requirements in relation to clinical trial information.

In
the European Union there are also broadly equivalent regimes for the other issues addressed in relation to U.S. regulation including cGMP
requirements, accelerated access (generally through so-called Conditional Marketing Authorizations), pediatric requirements and incentives
and patent term restoration (supplementary protection certificates).

22

Other
Healthcare Laws and Regulations

Healthcare
providers, physicians and third-party payors play a primary role in the recommendation and use of pharmaceutical products that are granted
marketing approval. Arrangements with third-party payors, existing or potential customers and referral sources are subject to broadly
applicable fraud and abuse and other healthcare laws and regulations, and these laws and regulations may constrain the business or financial
arrangements and relationships through which manufacturers market, sell and distribute the products for which they obtain marketing approval.
Such restrictions under applicable federal and state healthcare laws and regulations include the following:

23

Violation
of the laws described above or any other governmental laws and regulations may result in penalties, including civil and criminal penalties,
damages, fines, the curtailment or restructuring of operations, the exclusion from participation in federal and state healthcare programs,
debarment from government contracting or refusal of orders under existing contracts, corporate integrity agreements or consent decrees,
disgorgement, contractual damages, reputational harm, diminished profits and future earnings, and imprisonment. Furthermore, efforts
to ensure that business activities and business arrangements comply with applicable healthcare laws and regulations can be costly.

Data
Privacy and Security

Coverage
and Reimbursement

Significant
uncertainty exists as to the coverage and reimbursement status of any products for which we may obtain regulatory approval. In the United
States, sales of any product candidates for which regulatory approval for commercial sale is obtained will depend in part on the availability
of coverage and adequate reimbursement from third-party payors. Third-party payors include government authorities and health programs
in the United States such as Medicare and Medicaid, managed care providers, private health insurers and other organizations. These third-party
payors are increasingly reducing reimbursements for medical products and services. The process for determining whether a payor will provide
coverage for a drug product may be separate from the process for setting the reimbursement rate that the payor will pay for the drug
product and/or application procedure. Third-party payors may limit coverage to specific drug products on an approved list, or formulary,
which might not include all FDA-approved drugs for a particular indication. Additionally, the containment of healthcare costs has become
a priority of federal and state governments, and the prices of drugs have been a focus in this effort. The U.S. government, state legislatures
and foreign governments have shown significant interest in implementing cost-containment programs, including price controls, required
disclosures of pricing and sensitive cost data, requirement for payment of manufacturer rebates and negotiation of supplemental rebates,
restrictions on reimbursement and requirements for substitution of generic products. Coverage policies and third-party reimbursement
rates may change at any time. Even if favorable coverage and reimbursement status is attained for one or more products for which we receive
regulatory approval, less favorable coverage policies and reimbursement rates may be implemented in the future.

24

In
the EU, pricing and reimbursement schemes vary widely from country to country. Some countries provide that products may be marketed only
after a reimbursement price has been agreed. Some countries may require the completion of additional studies as part of health technology
assessment that compare the cost-effectiveness of a particular product candidate to currently available therapies. EU member states may
approve a specific price for a product, or it may instead adopt a system of direct or indirect controls on the profitability of the company
placing the product on the market. Other member states allow companies to fix their own prices for products but monitor and control company
profits. The downward pressure on health care costs has become intense. As a result, increasingly high barriers are being erected to
the entry of new products. In addition, in some countries, cross-border imports from low-priced markets exert competitive pressure that
may reduce pricing within a country. Any country that has price controls or reimbursement limitations may not allow favorable reimbursement
and pricing arrangements.

Health
Reform

The
United States and some foreign jurisdictions are considering or have enacted a number of reform proposals to change the healthcare system.
There is significant interest in promoting changes in healthcare systems with the stated goals of containing healthcare costs, improving
quality, or expanding access. In the United States, the pharmaceutical industry has been a particular focus of these efforts. For example,
healthcare reform measures under the Affordable Care Act included increased Medicaid rebates, expanded the 340B drug discount program,
and changes requiring manufacturer discounts currently set at 70 percent on Part D utilization in the Part D coverage gap or “donut
hole” and multiple provisions that could affect the profitability of our drug products. There is continuing development of value-based
pricing and reimbursement models. Moreover, on November 27, 2020, CMS issued an interim final rule implementing a Most Favored Nation
payment model under which reimbursement for certain Medicare Part B drugs and biologicals will be based on a price that reflects the
lowest per capita Gross Domestic Product-adjusted (GDP-adjusted) price of any non-U.S. member country of the Organization for Economic
Co-operation and Development (OECD) with a GDP per capita that is at least sixty percent of the U.S. GDP per capita. Current and future
healthcare reform measures may significantly affect our sale of any products, and we continue to face major uncertainty due to the status
of major legislative initiatives surrounding healthcare reform.

Additional
Regulation

In
addition to the foregoing, state and federal laws regarding environmental protection and hazardous substances, including the Occupational
Safety and Health Act, the Resource Conservation and Recovery Act and the Toxic Substances Control Act, affect our business. These and
other laws govern the use, handling and disposal of various biologic and chemical substances used in, and wastes generated by, operations.
If our operations result in contamination of the environment or expose individuals to hazardous substances, we could be liable for damages
and governmental fines. Equivalent laws have been adopted in other countries that impose similar obligations.

U.S.
Foreign Corrupt Practices Act

The
U.S. Foreign Corrupt Practices Act (“FCPA”), prohibits U.S. corporations and individuals from engaging in certain activities
to obtain or retain business abroad or to influence a person working in an official capacity. It is illegal to pay, offer to pay or authorize
the payment of anything of value to any foreign government official, government staff member, political party, or political candidate
in an attempt to obtain or retain business or to otherwise influence a person working in an official capacity. The scope of the FCPA
includes interactions with certain healthcare professionals in many countries. Equivalent laws have been adopted in other foreign countries
that impose similar obligations.

25

Competition

Companies
that are currently engaged in gene therapy or companies not yet focused on developing cell and gene therapies could at any time decide
to develop therapies relevant to our business. Many of our competitors, either alone or with their strategic partners, may have substantially
greater financial, technical, and human resources than we do and may have significantly greater experience in the discovery and development
of product candidates, obtaining FDA and other regulatory approvals of product candidates and commercializing those product candidates.
Accordingly, our competitors may be more successful than us in obtaining approval for product candidates and achieving widespread market
acceptance. Our competitors’ product candidates may be more effective, or more effectively marketed and sold, than any product
candidate we may commercialize and may render our treatments obsolete or non-competitive before we can recover the expenses of developing
and commercializing any of our product candidates.

Mergers
and acquisitions in the biotechnology and pharmaceutical industries may result in even more resources being concentrated among a smaller
number of our competitors. These competitors also may compete with us in recruiting and retaining qualified scientific and management
personnel and establishing clinical trial sites and subject registration for clinical trials, as well as in acquiring technologies complementary
to, or necessary for, our programs. Smaller or early-stage companies may also prove to be significant competitors, particularly through
collaborative arrangements with large and established companies.

We
anticipate facing intense and increasing competition as new product candidates enter the market and advanced technologies become available.
We expect any product candidates that we develop and commercialize to compete on the basis of, among other things, efficacy, safety,
convenience of administration and delivery, price, and the availability of reimbursement from government and other third-party payors.

Our
commercial opportunity could be reduced or eliminated if our competitors develop and commercialize products that are safer, more effective,
have fewer or less severe side effects, are more convenient or are less expensive than any products that we may develop. Our competitors
also may obtain FDA or other regulatory approval for their product candidates more rapidly than we may obtain approval for ours, which
could result in our competitors establishing a strong market position before we are able to enter the market.

Corporate
Information

Our
principal executive office as well as our manufacturing and laboratory facilities are located at 6555 Carnegie Ave, 4th Floor,
Cleveland, OH 44103. Our telephone number is (646) 813-4701.

We
were incorporated in Wyoming in 1974 as Chemex Corporation, and in 1983 we changed our name to Chemex Pharmaceuticals, Inc. We changed
our state of incorporation from Wyoming to Delaware on June 30, 1989. In 1996 we merged with Access Pharmaceuticals, Inc., a private
Texas corporation, and changed our name to Access Pharmaceuticals, Inc. On October 24, 2014, we changed our name to PlasmaTech Biopharmaceuticals,
Inc. On May 15, 2015, we acquired Abeona Therapeutics LLC and on June 19, 2015, we changed our name to Abeona Therapeutics Inc.

Suppliers

Some
of the materials we use are specialized. We obtain materials from several suppliers based in different countries around the world. If
materials are unavailable from one supplier, we generally have alternate suppliers available.

Human
Capital Resources

As
a commercial-stage biopharmaceutical company developing cell and gene therapies for life-threatening diseases, we seek to attract, hire,
develop and retain qualified and highly skilled personnel with experience in areas such as research and development and manufacturing
operations. We compete for such personnel with numerous pharmaceutical and chemical companies, specialized biotechnology firms and universities.
We strive to support our employees’ well-being through a transparent, inclusive, and collaborative culture and by providing them
with the training, support, and resources to help them succeed professionally.

As
of December 31, 2025, we had 226 full-time employees. We have never experienced employment-related work stoppages and believe that we
maintain good relations with our personnel. In addition, to complement our internal expertise, we have contracts with scientific consultants,
contract research organizations and university research laboratories that specialize in various aspects of drug development including
clinical development, regulatory affairs, toxicology, process scale-up and preclinical testing.

Web
Availability

We
make available free of charge through our website, www.abeonatherapeutics.com, including our annual reports on Form 10-K and other
reports that we file with the Securities and Exchange Commission (“SEC”) as well as certain of our corporate governance policies,
including the charters for the audit, compensation and nominating and corporate governance committees of the Board of Directors (the
“Board”) and our code of ethics, corporate governance guidelines and whistleblower policy. We will also provide to any person
without charge, upon request, a copy of any of the foregoing materials. Any such request must be made in writing to us at: Abeona Therapeutics
Inc. c/o Investor Relations, 6555 Carnegie Ave, 4th Floor, Cleveland, OH 44103. The SEC’s website, www.sec.gov, contains
reports, proxy statements, and other information that we file electronically with the SEC. The content on any website referred to in
this Form 10-K is not incorporated by reference in this Form 10-K.