{"url_path":"/sec/vor/10-q/2026/item-2","section_key":"item-2","section_title":"Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations.","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-13","source_url":"https://www.sec.gov/Archives/edgar/data/1817229/0001193125-26-220689-index.html","accession_number":"0001193125-26-220689","cik":"0001817229","ticker":"VOR","issuer_name":"Vor Biopharma Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1817229/0001193125-26-220689-index.html","primary_entity_key":"0001817229","primary_entity_name":"Vor Biopharma Inc."},"word_count":4239,"has_tables":true,"body_markdown":"Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.\n\nYou should read the following discussion and analysis of our financial condition and results of operations together with the unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”). Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the section titled “Risk Factors” in our 2025 Annual Report and in other reports we have filed or may file with the SEC, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.\n\nOverview\n\nVor Bio is a clinical-stage biopharmaceutical company focused on developing a novel therapy in the treatment of autoimmune diseases. In June 2025, we in-licensed telitacicept from RemeGen Co., Ltd. (“RemeGen”).\n\nPursuant to our license agreement with RemeGen, we were granted an exclusive license to develop and commercialize telitacicept outside of the Greater China region, which includes mainland China, Hong Kong, Macau and Taiwan. RemeGen retains development and commercialization rights in Greater China. Telitacicept is approved in China for the treatment of generalized myasthenia gravis (“gMG”), systemic lupus erythematosus (“SLE”) and rheumatoid arthritis (“RA”), and has two Biologics License Applications (“BLAs”) filed and pending in China for the treatment of Sjögren’s disease (“SjD”) and IgA nephropathy (“IgAN”).\n\nTelitacicept is currently being evaluated in a global Phase 3 clinical trial, for which we have assumed responsibility from RemeGen in connection with the license agreement, for the treatment of gMG. The trial is currently recruiting patients in North America, Europe, Latin America, and Asia to support potential approval in the United States, Europe, Japan and other countries. In July 2024, the clinical trial enrolled a patient in the United States, the first in the global clinical trial. Topline data from the trial is anticipated in the first half of 2027.\n\nTelitacicept was evaluated by RemeGen in a Phase 3 clinical trial in patients with gMG in China. Most recently, the 48-week data from Part B of the Phase 3 trial were presented at the American Association of Neuromuscular & Electrodiagnostic Medicine (“AANEM”) Annual Meeting in October 2025.\n\n \n\nWe are also evaluating telitacicept in a global Phase 3 clinical trial for the treatment of SjD. The first patient in this trial was dosed in March 2026, and we expect to recruit a total of approximately 250 adults with SjD in the United States, Europe, South America, and Asia. The trial is a randomized, double-blind, placebo-controlled trial.\n\nTelitacicept was evaluated by RemeGen in a Phase 3 clinical trial in patients with active SjD in China. Most recently, the 48-week data including Stage A and B from the Phase 3 trial were presented at the American College of Rheumatology (“ACR”) Annual Meeting in October 2025.\n\nWe have incurred significant operating losses since inception, including net losses of $219.6 million and $32.5 million for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, we had an accumulated deficit of $1,372.6 million.\n\nAs of March 31, 2026, we had cash, cash equivalents and marketable securities of $491.5 million. Based on our current operating plan, we expect that our cash, cash equivalents and marketable securities will enable us to fund our operating expenses and capital expenditure requirements into early 2029.\n\nCritical Accounting Estimates\n\nOur management’s discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles. The preparation of our condensed consolidated financial statements requires us to make judgments and estimates that affect the reported amounts of assets, liabilities, costs, and expenses, and the disclosure of contingent assets and liabilities in our condensed consolidated financial statements. We base our estimates on historical experience, known trends and events, and various other factors that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. On an ongoing basis, we evaluate our judgments and estimates in light of changes in circumstances, facts, and experience. The effects of material revisions in estimates, if any, will be reflected in the condensed consolidated financial statements prospectively from the date of change in estimates. There have been no changes to our critical accounting estimates from those described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Annual Report.\n\n14\n\n \n\nFinancial Operations Overview\n\nRevenue\n\nWe have not generated any revenue since our inception and do not expect to generate any revenue from the sale of products in the near future, if at all. If our development efforts for our current or future product candidates are successful and result in marketing approval, or if we enter into collaboration or license agreements with third parties, we may generate revenue in the future from a combination of product sales or payments from such agreements.\n\nExpenses\n\nResearch and Development Expenses\n\nResearch and development expenses consist primarily of external and internal expenses incurred in connection with our research and development activities, including our drug discovery efforts and the development of our product candidates. External expenses include:\n\n•\nresearch and development expenses incurred under agreements with clinical research organizations (“CROs”) and other scientific development services;\n\n•\ncosts of consultants, including their fees and related travel expenses;\n\n•\ncosts related to compliance with quality and regulatory requirements;\n\n•\ncosts of laboratory supplies and acquiring and developing preclinical and clinical trial materials, including expenses associated with our clinical manufacturing organizations (“CMOs”); and\n\n•\npayments made and consideration issued under third party licensing agreements.\n\nInternal expenses include:\n\n•\npersonnel-related expenses, including salaries, bonuses, benefits and stock-based compensation expenses, for employees involved in research and development activities; and\n\n•\nfacilities, depreciation and other allocated expenses, which include direct and allocated expenses for rent, insurance, and other internal operating costs.\n\nWe expense research and development costs as incurred. We recognize external development costs based on an evaluation of the progress to completion of specific tasks using information provided to us by our vendors. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and are reflected in our condensed consolidated financial statements as prepaid expenses or accrued research and development expenses. Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are deferred and capitalized, even when there is no alternative future use for the research and development. The capitalized amounts are expensed as the related goods are delivered or the services are performed.\n\nA significant portion of our research and development costs have been external costs, which we track by program.\n\nResearch and development activities are central to our business model. We expect that our research and development expenses will increase significantly for the foreseeable future as we continue to identify and develop product candidates, particularly as our product candidate continues through the later stages of clinical development.\n\nThe successful development of our product candidates in the future is highly uncertain. Therefore, we cannot reasonably estimate or know the nature, timing and estimated costs of the efforts that will be necessary to complete the development and commercialization of any of our product candidates. We are also unable to predict when, if ever, material net cash inflows will commence from the sale of our product candidates, if approved. This is due to the numerous risks and uncertainties associated with developing product candidates, many of which are outside of our control, including the uncertainty of:\n\n•\nthe timing and progress of clinical development activities;\n\n•\nthe number and scope of clinical programs we decide to pursue;\n\n•\nour ability to maintain our current research and development programs and to establish new ones;\n\n•\nestablishing an appropriate safety profile with IND-enabling studies;\n\n•\nthe number of sites and patients included in the clinical trials;\n\n•\nthe countries in which the clinical trials are conducted;\n\n•\nper patient trial costs;\n\n15\n\n \n\n•\nsuccessful patient enrollment in, and the initiation of, clinical trials, as well as drop out or discontinuation rates;\n\n•\nthe successful completion of clinical trials with safety, tolerability and efficacy profiles that are satisfactory to the FDA or any comparable foreign regulatory authority;\n\n•\nthe number of trials required for regulatory approval;\n\n•\nthe timing, receipt and terms of any regulatory approvals from applicable regulatory authorities;\n\n•\nour ability to establish new licensing or collaboration arrangements;\n\n•\nthe performance of our current and future collaborators, if any;\n\n•\nestablishing commercial manufacturing capabilities or making arrangements with third-party manufacturers;\n\n•\nsignificant and changing government regulation and regulatory guidance;\n\n•\nthe impact of any business interruptions to our operations or to those of the third parties with whom we work;\n\n•\nobtaining, maintaining, defending and enforcing patent claims and other intellectual property rights;\n\n•\nlaunching commercial sales of our product candidates, if approved, whether alone or in collaboration with others; and\n\n•\nmaintaining a continued acceptable safety profile of the product candidates following approval.\n\nAny changes in the outcome of any of these variables could mean a significant change in the costs and timing associated with the development of our product candidates.\n\nGeneral and Administrative Expenses\n\nGeneral and administrative expenses consist primarily of personnel-related costs, including salaries, bonuses, benefits and stock-based compensation expenses for employees involved in our executive, finance, corporate, business development and administrative functions, as well as expenses for outside professional services, including legal, audit, accounting and tax-related services and other consulting fees, facility-related expenses, which include depreciation costs and other allocated expenses for rent and maintenance of facilities, insurance costs, recruiting costs, travel expenses and other general administrative expenses.\n\nWe expect that our general and administrative expenses will increase as our business expands and we hire additional personnel to support our continued development of our clinical programs. We also anticipate continued increased expenses associated with being a public company, including costs for legal, audit, accounting, investor and public relations, regulatory and tax-related services related to compliance with the rules and regulations of the SEC, Nasdaq listing standards and director and officer insurance premiums.\n\nOther Income (Expense), net\n\nInterest Income\n\nInterest income consists of interest income earned on our cash, cash equivalents and marketable securities held in financial institutions.\n\nChange in Fair Value of Warrant Liabilities\n\nChange in fair value of warrant liabilities represents the change in the fair value of liability-classified warrants due to changes in their intrinsic value resulting from changes in the quoted price of the Company’s common stock underlying the warrants.\n\n16\n\n \n\nResults of Operations\n\nComparison of Three Months Ended March 31, 2026 and 2025\n\nThe following table summarizes our results of operations for the periods indicated (amounts in thousands):\n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\nChange\n\n \n\nOperating expenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nResearch and development\n\n \n\n$\n\n17,595\n\n \n\n \n\n$\n\n26,701\n\n \n\n \n\n$\n\n(9,106\n\n)\n\nGeneral and administrative\n\n \n\n \n\n17,565\n\n \n\n \n\n \n\n6,590\n\n \n\n \n\n \n\n10,975\n\n \n\nTotal operating expenses\n\n \n\n \n\n35,160\n\n \n\n \n\n \n\n33,291\n\n \n\n \n\n \n\n1,869\n\n \n\nLoss from operations\n\n \n\n \n\n(35,160\n\n)\n\n \n\n \n\n(33,291\n\n)\n\n \n\n \n\n(1,869\n\n)\n\nOther income (expense):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest income\n\n \n\n \n\n3,935\n\n \n\n \n\n \n\n805\n\n \n\n \n\n \n\n3,130\n\n \n\nChange in fair value of warrant liabilities\n\n \n\n \n\n(188,360\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(188,360\n\n)\n\nTotal other (expense) income\n\n \n\n \n\n(184,425\n\n)\n\n \n\n \n\n805\n\n \n\n \n\n \n\n(185,230\n\n)\n\nNet loss\n\n \n\n$\n\n(219,585\n\n)\n\n \n\n$\n\n(32,486\n\n)\n\n \n\n$\n\n(187,099\n\n)\n\n \n\nResearch and Development Expenses\n\nThe following table summarizes our research and development expenses incurred for the periods indicated (amounts in thousands):\n\n \n\n \n\nThree Months Ended\nMarch 31,\n\n \n\n \n\n \n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\nChange\n\n \n\nExternal research expenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTelitacicept - gMG\n\n \n\n$\n\n9,793\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n9,793\n\n \n\nTelitacicept - SjD\n\n \n\n \n\n2,500\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2,500\n\n \n\nTrem-cel\n\n \n\n \n\n250\n\n \n\n \n\n \n\n6,382\n\n \n\n \n\n \n\n(6,132\n\n)\n\nVCAR33\n\n \n\n \n\n73\n\n \n\n \n\n \n\n3,636\n\n \n\n \n\n \n\n(3,563\n\n)\n\nOther research and development\n\n \n\n \n\n776\n\n \n\n \n\n \n\n2,995\n\n \n\n \n\n \n\n(2,219\n\n)\n\nInternal research expenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSalaries and benefits\n\n \n\n \n\n3,497\n\n \n\n \n\n \n\n9,057\n\n \n\n \n\n \n\n(5,560\n\n)\n\nStock-based compensation\n\n \n\n \n\n601\n\n \n\n \n\n \n\n1,042\n\n \n\n \n\n \n\n(441\n\n)\n\nManufacturing, facilities, and other research expenses\n\n \n\n \n\n105\n\n \n\n \n\n \n\n3,589\n\n \n\n \n\n \n\n(3,484\n\n)\n\nTotal research and development expenses\n\n \n\n$\n\n17,595\n\n \n\n \n\n$\n\n26,701\n\n \n\n \n\n$\n\n(9,106\n\n)\n\n \n\nResearch and development expenses were $17.6 million for the three months ended March 31, 2026, compared to $26.7 million for the three months ended March 31, 2025. The decrease of $9.1 million was primarily due to $9.7 million in reduced spend on our previous programs, trem-cel and VCAR33, a $5.6 million decrease in personnel costs as we had lower headcount compared to the prior year, a $3.5 million decrease in manufacturing and facilities costs as our manufacturing activities and leased properties have both been reduced compared to the prior year, a $2.2 million decrease in other research and development costs, and a $0.4 million decrease in stock-based compensation. These decreases were partially offset by a $12.3 million increase in spend for our new programs, telitacicept - gMG and telitacicept - SjD.\n\nGeneral and Administrative Expenses\n\nGeneral and administrative expenses were $17.6 million for the three months ended March 31, 2026, compared to $6.6 million for the three months ended March 31, 2025. The increase of $11.0 million was primarily due to a $7.4 million increase in stock-based compensation expense, a $1.4 million increase in personnel-related expenses, a $1.2 million increase in commercial-related expenses, and a $1.0 million increase in professional fees. The increase in stock-based compensation was primarily driven by grants to the new executives hired after the quarter ended March 31, 2025, as well as an appreciation in our stock price and incremental expense recognized from award modifications which took place at the end of the year ended December 31, 2025. The increase in personnel-related expenses was due primarily to new general administrative employees hired during 2025, including new executives.\n\n17\n\n \n\nOther Income (Expense)\n\nOther income (expense) decreased by $185.2 million during the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease in other income (expense) was primarily due to the change in fair value of the warrant liabilities resulting from changes in the quoted price of the Company’s common stock underlying the warrants.\n\nLiquidity and Capital Resources\n\nSources of Liquidity\n\nSince our inception, we have not recognized any revenue and have incurred operating losses and negative cash flows from our operations. We have not yet commercialized any product and we do not expect to generate revenue from sales of any products for several years, if at all. We have funded our operations primarily through the sale of equity securities and have received aggregate net proceeds from these transactions of approximately $1,094.1 million as of March 31, 2026.\n\nIn order to fund our future operations, including our ongoing and planned clinical trials, we filed a universal shelf registration statement, which was declared effective on March 31, 2025, to provide for aggregate offerings of up to $350.0 million of common stock, preferred stock, debt securities, warrants or any combination thereof. As of March 31, 2026, $164.2 million remains available under this Shelf Registration Statement, including $48.9 million reserved for at-the-market offerings discussed below.\n\nAt-the-Market Sales Agreements\n\nIn December 2022, we entered into a Sales Agreement with Stifel, Nicolaus & Company, Incorporated (“Stifel”) as the agent (the \"Stifel ATM Facility\"). Pursuant to the Stifel ATM Facility, we may offer and sell shares of common stock with an aggregate value of up to $125.0 million. We pay Stifel a commission of up to 3.0% of the gross proceeds of any common stock sold through Stifel. We did not sell any shares of our common stock under the Stifel ATM Facility during the three months ended March 31, 2026. As of March 31, 2026, $48.9 million remained available to be sold under the Stifel ATM Facility.\n\nMarch 2026 Private Placement\n\n \n\nOn March 26, 2026, we entered into a purchase agreement with institutional investors pursuant to which we agreed to issue and sell an aggregate of 5,338,078 shares of common stock, at a price per share of $14.05, for net proceeds of $74.9 million after deducting offering expenses payable by us. The private placement closed on March 30, 2026.\n\nCash Requirements\n\nAs of March 31, 2026, we had cash, cash equivalents and marketable securities of $491.5 million. We will need to raise additional capital in the future to fund our planned future operations.\n\nWe expect that our existing cash, cash equivalents and marketable securities will enable us to fund our operating expenses and capital expenditure requirements into early 2029. We have based this estimate on assumptions that may prove to be wrong and we could exhaust our capital resources sooner than we expect.\n\nWe expect our expenses to increase substantially if, and as, we:\n\n•\ncontinue clinical development of our product candidate and any future product candidates, including in particular the expenses associated with our clinical trials;\n\n•\nincur third party manufacturing costs to support our clinical trials of our product candidate and any future product candidates and, if approved, their commercialization;\n\n•\nseek to identify and develop additional product candidates;\n\n•\nseek regulatory and marketing approvals for our product candidate and any future product candidates;\n\n•\nestablish a sales, marketing and distribution infrastructure to commercialize any approved product candidates;\n\n•\nadapt our regulatory compliance efforts to incorporate requirements to applicable marketed products;\n\n•\nacquire or in-license products, product candidates, or technologies;\n\n•\nmaintain, expand, enforce, defend and protect our intellectual property;\n\n•\nhire additional clinical, quality control, manufacturing and other scientific personnel;\n\n18\n\n \n\n•\nadd operational, financial and management information systems and personnel;\n\n•\nexpand our office facility or establish dedicated laboratory and manufacturing facilities; and\n\n•\nexperience any delays or encounter any issues with any of the above.\n\nIn addition, we expect to continue to incur additional costs associated with operating as a public company, including significant legal, audit, accounting, investor and public relations, regulatory, tax-related, director and officer insurance premiums, investor relations and other expenses. Developing pharmaceutical products, including conducting clinical trials, is a time-consuming, expensive and uncertain process that takes years to complete, and we may never generate the necessary data or results required to obtain marketing approval for any product candidates or generate revenue from the sale of any product candidate for which we may obtain marketing approval. In addition, our product candidates, if approved, may not achieve commercial success. Our commercial revenues, if any, will be derived from sales of products that we do not expect to be commercially available for at least several years, if ever.\n\nAs a result, we will need substantial additional funding to support our continuing operations and pursue our growth strategy. Until such time as we can generate significant revenue from product sales, if ever, we expect to finance our operations through the public or private sale of our equity, government or private party grants, debt financings or other capital sources, including potential collaborations with other companies or other strategic transactions. To the extent that we raise additional capital through the sale of our equity or convertible debt securities, including through the use of the Stifel ATM Facility, the ownership interest of our shareholders will be or could be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our stockholders. Debt financing and equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we are unable to obtain additional funding, we could be forced to delay, reduce or eliminate some or all of our research and development programs, product portfolio expansion or any commercialization efforts, which could adversely affect our business prospects, or we may be unable to continue operations. If we raise funds through strategic collaborations or other similar arrangements with third parties, we may have to relinquish valuable rights to our intellectual property, future revenue streams, research programs or product candidates or may have to grant licenses on terms that may not be favorable to us and/or may reduce the value of our common stock. Our ability to raise additional funds may be adversely impacted by worsening global economic conditions and disruptions to and volatility in the credit and financial markets in the United States and worldwide resulting from worsening geopolitical tensions and adverse macroeconomic conditions or otherwise. Because of the numerous risks and uncertainties associated with product development, we cannot predict the timing or amount of increased expenses, and there is no assurance that we will ever be profitable or generate positive cash flow from operating activities.\n\nWe did not have during the periods presented, and we do not currently have, any off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, cash requirements or capital resources.\n\nCash Flows\n\nThe following table provides information regarding our cash flows for the periods presented (in thousands):\n\n \n\n \n\nThree Months Ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nNet cash used in operating activities\n\n \n\n$\n\n(38,246\n\n)\n\n \n\n$\n\n(31,066\n\n)\n\nNet cash used in investing activities\n\n \n\n \n\n(263,237\n\n)\n\n \n\n \n\n(230\n\n)\n\nNet cash provided by (used in) financing activities\n\n \n\n \n\n74,870\n\n \n\n \n\n \n\n(606\n\n)\n\nNet decrease in cash, cash equivalents and restricted cash equivalents\n\n \n\n$\n\n(226,613\n\n)\n\n \n\n$\n\n(31,902\n\n)\n\nOperating Activities\n\nNet cash used in operating activities was $38.2 million for the three months ended March 31, 2026, reflecting a net loss of $219.6 million, offset by changes in operating assets and liabilities of $15.5 million and non-cash charges of $196.9 million. The non-cash charges primarily consisted of the change in fair value of warrant liabilities of $188.4 million and $8.9 million of stock-based compensation expense. The change in operating assets and liabilities was primarily due to a decrease of $9.1 million of accounts payable and accrued expenses as much of the accrued expenses relating to the prior period were paid in the three months ended March 31, 2026. The change was also due to the increase of $6.4 million of prepaid expense and other current assets, primarily driven by the increase of prepayments made for our clinical programs and an increase in accrued interest on marketable securities.\n\nNet cash used in operating activities was $31.1 million for the three months ended March 31, 2025, reflecting a net loss of $32.5 million and net cash used of $2.6 million for operating assets and liabilities, which were partially offset by non-cash charges of $4.1 million. The non-cash charges primarily consisted of stock-based compensation expense of $1.9 million, non-cash lease expense of $1.3 million and depreciation expense of $0.8 million.\n\n19\n\n \n\nInvesting Activities\n\nNet cash used in investing activities was $263.2 million for the three months ended March 31, 2026, which consisted of the purchases of $276.5 million of marketable securities and $0.1 million of equipment, partially offset by $13.3 million of proceeds from the maturities of marketable securities. Net cash used in investing activities was $0.2 million for the three months ended March 31, 2025, which primarily consisted of purchases of $0.2 million of property and equipment.\n\nFinancing Activities\n\nNet cash provided by financing activities was $74.9 million for the three months ended March 31, 2026, which primarily consisted of $75.0 million in gross proceeds from the issuance of common stock in the March 2026 private placement, partially offset by $0.1 million of payments made in the period for issuance costs relating to the December 2025 private placement. Net cash used in financing activities was $0.6 million for the three months ended March 31, 2025, which primarily consisted of $0.6 million of payments for issuance costs relating to the December 2024 private placement.\n\nContractual Obligations and Other Commitments\n\nContractual obligations relate to future minimum lease payments for an existing non-cancellable lease relating to corporate office space, with a term expiring in August 2031.\n\nOther commitments include license and collaboration agreements we have entered into with certain parties including the Telitacicept License Agreement discussed in Note 10 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Such arrangements require ongoing payments, including payments upon the achievement of certain development, regulatory and commercial milestones, receipt of sublicense income, as well as royalties on commercial sales. Payments under these arrangements will generally be expensed as incurred.\n\nThere were no significant changes in contractual obligations and other commitments from that described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Contractual Obligations and Other Commitments” in our 2025 Annual Report.\n\nWe also have agreements with certain vendors for various services, including services related to clinical operations and support, which we are not contractually able to terminate for convenience and avoid any and all future obligations to the vendors. Under such agreements, we are contractually obligated to make certain payments to vendors to reimburse them for their unrecoverable outlays incurred prior to cancellation. The exact amounts of such obligations are dependent on the timing of termination and the exact terms of the relevant agreement and cannot be reasonably estimated. We do not include these payments in this summary as they are not fixed and estimable.\n\nRecent Accounting Pronouncements\n\nThere are no new significant recent accounting pronouncements which may materially impact our financial statements."}