ACHN 2017 Annual Report

We believe that our existing cash, cash equivalents and marketable securities will be sufficient to meet our current projected operating requirements for at least the next 12 months. However, our future capital requirements may change and will depend upon numerous factors, including but not limited to: • the scope, progress, results and costs of drug discovery, preclinical development, laboratory testing and clinical trials for our drug candidates; • our ability to realize the planned cost savings benefits of the restructuring we implemented in February 2018, which included a significant reduction in our workforce; • our ability to enter into and the terms and timing of any collaborations, licensing or other arrangements that we may establish; • the number of future drug candidates that we pursue and their development requirements; • the outcome, timing and costs of seeking regulatory approvals; • the costs of commercialization activities for any of our drug candidates that receive marketing approval to the extent such costs are not the responsibility of any collaborators, including the costs and timing of establishing product sales, marketing, distribution and manufacturing capabilities; • subject to receipt of market approval, revenue, if any, received from commercial sales of our drug candidates; • our headcount growth and associated costs as we seek to expand our research and development and establish a commercial infrastructure; • the costs involved in preparing, filing, prosecuting, maintaining, enforcing and defending patent and other intellectual property rights and defending against intellectual property-related claims; • our ability to raise debt or equity capital, including any changes in the credit or equity markets that may impact our ability to obtain capital in the future; • the costs associated with, and the outcome of, lawsuits against us, if any; • our acquisition and development of new technologies and drug candidates; and • competing technological and market developments, including those currently unknown to us. Furthermore, in February 2018, we implemented a restructuring plan that will reduce employee headcount by approximately 20% across several functional areas to approximately 70 employees. We may not realize the planned or expected cost savings benefits of the restructuring, which could adversely affect our estimate of the period for which our cash, cash equivalents and marketable securities will be sufficient to fund our projected operating requirements. We may augment our cash balance through financing transactions, including through a combination of public and private equity offerings, debt financings and collaboration, strategic alliance and licensing arrangements. For example, in February 2017, we entered into an agreement with Cantor pursuant to which, from time to time, we may offer and sell up to $75.0 million of shares of our common stock “at the market” through Cantor pursuant to a universal shelf registration statement that we filed with the SEC in February 2017. In connection with capital raising activities, we may be required to dilute the ownership interests of our existing stockholders substantially. There can be no assurance that we will be able to obtain adequate levels of additional funding on favorable or acceptable terms, if at all. If we are unable to obtain adequate levels of additional funding, we may be required to: • delay, reduce the scope of, or eliminate research and development programs, including our complement inhibitor program; • obtain funds through arrangements with collaborators or others on terms that may be unfavorable to us or that may require us to relinquish rights to certain drug candidates that we might otherwise seek to develop or commercialize independently; and/or • pursue merger or acquisition strategies. 89