Financial Report Risk Explanation Commercialisation It is likely that INOVIQ will need to form marketing and/or product development alliances with third parties for INOVIQ products in countries which INOVIQ seeks to commercialise (subject to ongoing legal and regulatory compliance and financial viability to market or develop such products). INOVIQ will rely on its ability and that of its partners to develop and commercialise its products to create future revenue. Any products developed by INOVIQ will require extensive clinical testing, regulatory approval and significant marketing efforts before they can be sold and generate revenue. INOVIQ’s efforts to generate revenue may not succeed for several reasons including issues or delays in the development, testing, regulatory approval, marketing or reimbursement of these products or services. There is no assurance that suitable partnerships will be secured for commercialisation of INOVIQ products, which may have adverse impacts on INOVIQ’s operating results and financial position. Additionally, should INOVIQ elect to commercialise its products directly in any countries, it would be required to invest significant time and resources to build direct sales, distribution and marketing capabilities, and it would be required to ensure compliance with all legal and regulatory requirements for sales, marketing and distribution. Furthermore, even if INOVIQ does achieve commercialisation of any of its products and services, it may not be able to sustain its efforts or otherwise achieve commercialisation to a degree which would support the ongoing viability of its operations. A failure to successfully develop and commercialise INOVIQ’s products could lead to a loss of opportunities and adversely impact on INOVIQ’s operating results and financial position. In those countries where INOVIQ seeks to commercialise its products through distributors or other third parties, INOVIQ will rely heavily on the ability of its partners to effectively market and sell its products and services. Intellectual Property Protection The value of INOVIQ is strongly linked to its intellectual property. As of 30 June 2024, the Company had 21 granted patents, 15 pending patent applications and 2 provisional applications across hTERT, Molecular NETs, BARD1 and SubB2M technology platforms. Maintaining this value is therefore dependent on INOVIQ’s ability to protect its intellectual property. There is no guarantee that INOVIQ’s patent rights comprise all the rights that INOVIQ needs to be entitled to freely use and commercialise its products. If third party patents or patent applications contain claims infringed by INOVIQ’s technology and these claims are valid, INOVIQ may be unable to obtain licences to these patents at a reasonable cost, if at all, and may also be unable to develop or obtain alternative technology. If such licences cannot be obtained at a reasonable cost, the business could be significantly impacted. Furthermore, the enforceability of the patents owned by INOVIQ may be challenged and INOVIQ’s patents could be partially or wholly invalidated following challenges by third parties. Each jurisdiction has its own patent laws and particular requirements that need to be met for the grant of a patent. There may be changes to patent law or its interpretation by the courts in a particular jurisdiction from time to time, which may have an impact on patents in the relevant country. There is no guarantee that any further patent applications will be granted or that the Company’s owned and licensed patent rights comprise all the rights that the Company should have acquired to be entitled to freely use and commercialise its products. Competition INOVIQ operates in the life sciences industry that is highly competitive and includes companies that have substantially greater financial, technical, research and development, and marketing resources than INOVIQ. There are companies that compete with INOVIQ’s efforts to develop, validate and commercialise its research tools, diagnostic and therapeutic products and pipeline candidates. INOVIQ’s competitors may discover, develop, validate and commercialise products in advance of INOVIQ, and/or products that are more effective, more economical or materially superior to those developed by INOVIQ. Rapid technology advancement may cause INOVIQ’s current or future technologies and products to become obsolete or uncompetitive, resulting in adverse effects on INOVIQ’s revenues, margins and ultimately its profitability. 21 Annual Report 2024
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