6 Fundin d g Agreement Pursuant to a funding agreement, we sold a 4.5% capped royalty on global net sales of tarcocimab (and potentially other products) following marketing approval. Currently, the royalty “caps” or terminates upon the payment of a cumulative amount of $450 million, which is equal to 4.5 times the funding amount received by the Company to date under the funding agreement. For a more detailed description of the funding agreement, please refer to Note 15 to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K. Government Regulation Government authorities in the United States at the federal, state and local level and in other countries regulate, among other things, the research, development, testing, manufact f ur t e, quality control, approval, labe a ling, packaging, storage, record- keeping, promotion, advertising, distribution, post-approval monitoring and reporting, marketing and export and import of drug r and biological products. Generally, before a new drug r or biologic can be marketed, considerable data demonstrating its quality, safety and effi f cacy must be obtained, organized into a format specific f for each regulatory r authority, subm u itted for review and approved by the regulatory authority.