Risks related to our financial position and need for additional capital
We are an integrated biopharmaceutical company with a first and single commercial launch and have not yet generated significant income. We have only very recently commenced our transition from a clinical-stage to commercial-stage company. Until our first commercial launch, our operations have been limited to developing our technology and undertaking preclinical studies and clinical trials of our product candidates.
Since our inception, and with the exception of the year 2019, we have incurred significant operating losses. Our losses resulted principally from costs incurred in research and development, preclinical testing, clinical development of our product and our product candidates as well as costs incurred for research programs, (pre-)commercial activities and from general and administrative costs associated with our operations. We expect to continue incurring significant research, development and other expenses related to our ongoing operations, and to continue incurring operating losses for the foreseeable future. We cannot be sure we will generate future profits from the sales of filgotinib, our first product which was approved for commercialization in the European Union, Great Britain and Japan. Because of the numerous risks and uncertainties associated with pharmaceutical product development, we are unable to predict the timing or amount of expenses and when we will be able to achieve or maintain profitability, if ever.
We may require substantial additional future capital which may not be available to us on acceptable terms, or at all, in order to complete clinical development and, if we are successful, to commercialize any of our current product candidates, if approved. Our ability to raise additional funds will depend on financial, economic and market conditions and other factors, over which we may have no or limited control. In addition, raising additional capital may cause dilution to our existing shareholders, restrict our operations or require us to relinquish rights to our product candidates or technologies. The incurrence of additional indebtedness could result in increased fixed payment obligations and could also result in certain additional restrictive covenants that could adversely impact our ability to conduct our business.
For further reference on financial risks in particular, see note 34 of the notes to the consolidated financial statements.