BVF INC

BVF Partners L.P. ("BVF" or "we") is an asset management firm that generally invests in biotechnology companies. BVF is a Delaware limited partnership that commenced operations on an unknown date. BVF currently provides investment advice to the BVF Funds, the Single Investor Fund and the Managed Accounts. BVF is compensated based on trading profits, which creates an incentive for BVF to make investments on behalf of Clients that are riskier or more speculative than would be the case in the absence of such compensation. Additionally, where the performance-based allocation or fee received by BVF is based on unrealized as well as realized gains, the performance-based allocation or fee could be based on unrealized gains that Clients may never realize.

BVF Partners L.P. primarily focuses on long equity investing in small-capitalization companies, particularly in the biotechnology sector. This strategy involves identifying companies with limited downside risk relative to upside opportunity, but investors should be aware of the inherent volatility and potential for substantial losses in this market. BVF's strategy relies heavily on fundamental analysis and resource-intensive research, which can be challenging given the competition from firms with greater resources. BVF's strategy is undiversified, focusing solely on the biotechnology sector, which means clients will not have the same level of diversification as other investment vehicles. This strategy may be less successful during periods when market conditions are unfavorable for small-capitalization biotechnology companies.

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