The 2017 Amendment further provides that a technology company satisfying certain conditions will qualify as a “Special Preferred Technology Enterprise” and will thereby enjoy a reduced corporate tax rate of 6% on “Preferred Technology Income” regardless of the company’s geographic location within Israel. In addition, a Special Preferred Technology Enterprise will enjoy a reduced corporate tax rate of 6% on capital gain derived from the sale of certain “Benefitted Intangible Assets” to a related foreign company if the Benefitted Intangible Assets were either developed by an Israeli company or acquired from a foreign company on or after January 1, 2017, and the sale received prior approval from NATI. A Special Preferred Technology Enterprise that acquires Benefitted Intangible Assets from a foreign company for more than NIS 500 million (approximately $144 million) will be eligible for these benefits for at least ten years, subject to certain approvals as specified in the Investment Law.

Wu, J. et al. Gene expression of early hypertrophic scar tissue screened by means of cDNA microarrays. The Journal of trauma. 57, 1276–1286 (2004).

Currently ADMA is considered a prognostic marker of cardiovascular disease and mortality6. The available data also suggests that ADMA has been involved in systemic vascular inflammation through induction of reactive oxygen species (ROS) in endothelial cells32. In patients undergoing coronary bypass surgery, it was observed that ADMA levels were correlated with elevated NOS-derived generation of ROS33. Furthermore, it has been shown that ROS upregulate ADMA synthesis and protein arginine N-methyltransferase expression34. In cell culture studies, it has been shown that pro-oxidant and pro-inflammatory stimulants inhibit dimethylarginine dimethylaminohydrolase (DDAH) activity35. Decreased DDAH, the enzyme responsible for ADMA degeneration, is generally followed by the consecutive decrease of NOS activity, increase of ADMA concentrations and development of atherosclerosis36,37. However, it should also be mentioned that there are some doubts on the ADMA/DDAH association – e.g. DDAH activity is not associated with oxidative stress in the elderly patients with peripheral arterial occlusive disease38,39. In human monocytic cells, ADMA induces tumor necrosis factor (TNF)-α production via the inhibitory effect of reinioside C and ROS/nuclear factor (NF)–κB dependent pathways40. Since both ROS and systemic inflammation are responsible for increased ADMA levels, and statins are recognized as anti-inflammatory and antioxidant agents41, the hypothesis was that statin therapy might decrease ADMA levels. Indeed, several smaller studies have shown that statin therapy reduces ADMA levels 25,42, however other studies with high dose statins (e.g. simvastatin 80 mg/day or atorvastatin 40 mg/day) did not decrease plasma ADMA levels43. It seems that our meta-analysis provides the answer to the question on the role of statins on ADMA levels (mainly hydrophilic), irrespective of the statins doses and therapy duration. These results also show the marginal or lack of effect of simvastatin and atorvastatin (hydrophobic statins) on plasma ADMA levels43.

        There has been no material change in the planned use of proceeds from our IPO as described in our final prospectus filed with the SEC pursuant to Rule 424(b) of the Securities Act on October 26, 2016. We are holding the balance of the net proceeds from the IPO in investments in primarily money market funds.

Lange, I. et al. TRPM2 functions as a lysosomal Ca2+-release channel in beta cells. Sci. Signal. 2, ra23 (2009).

As of December 31, 2018, 16.994 restricted stock units (RSUs) granted to our Office Holders as a group were outstanding. For outstanding equity-based awards granted to our Office Holders, see below under “Item 6. Directors, Senior Management and Employees—E. Share Ownership—Certain Information Concerning Equity Awards to Office Holders.”

        The Jumpstart our Business Startups Act of 2012 (the "JOBS Act") permits an "emerging growth company" such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We have chosen to "opt out" of this provision and will comply with new or revised accounting standards as required when they are adopted. This decision to opt out of the extended transition period under the JOBS Act is irrevocable.

non-complement cardiovascular target with a large market opportunity, which is subject to our collaboration with Merck.

        Additionally, we are pursuing discovery and pre-clinical programs targeting selective inhibition of other uncontrolled complement pathway factors to treat a variety of neurologic, renal, and inflammatory diseases. In addition to our focus on developing novel therapeutics to treat complement-mediated diseases, we have validated our Extreme Diversity platform by successfully identifying and delivering orally-available cyclic peptides for a non-complement cardiovascular target with a large market opportunity in a collaboration with Merck. In December 2018, Merck paid us a development milestone as part of this collaboration.

        Pending patent applications cannot be enforced against third parties practicing the technology claimed in such applications unless and until a patent issues from such applications. Assuming the other requirements for patentability are met, currently, the first inventor to file a patent application is generally entitled to the patent. However, prior to March 16, 2013, in the U.S., the first to invent was entitled to the patent. Publications of discoveries in scientific literature often lag behind the actual discoveries, and patent applications in the U.S. and other jurisdictions are not published until 18 months after filing, or in some cases not at all. Therefore, we cannot be certain that we were the first to make the inventions claimed in our patents or pending patent applications, or that we were the first to file for patent protection of such inventions. Similarly, we cannot be certain that parties from

The product liability insurance we will need to obtain in connection with the commercial sales of Aramchol and any future product candidates, if and when they receive regulatory approval, may be unavailable in meaningful amounts or at a reasonable cost. If we are the subject of a successful product liability claim that exceeds the limits of any insurance coverage we obtain, we would incur substantial charges that would adversely affect our earnings and require the commitment of capital resources that might otherwise be available for the development and commercial launch of Aramchol and any future product candidate’s programs.

We face potential product and other liability exposure, and, if claims are brought against us, we may incur substantial liability.