MEDICUS PHARMA THIRD QUARTER 2026 FINANCIAL PERFORMANCE AND BUSINESS UPDATE - MEDICUS PHARMA LTD

Financial Performance:

• Net cash provided by financing activities for the nine months ended September 30, 2026, was $36.2 million, raising approximately $42.5 million in equity and debt.
• Operating expenses were $34.5 million for the nine-month period (up from $26.6 million year-over-year), driven by a $10 million acquired IP R&D charge for the Pfizer CD228V license ($12M upfront payment net of $2M Pfizer funding).
• Net loss for the first nine months was $35.9 million (vs. $27.3 million previously); for Q3 alone, net loss was $15.2 million (vs. $16 million).
• As of September 30, 2026, the company held $13.1 million in cash, cash equivalents, and restricted cash ($5.0M unrestricted, $8.1M restricted).
• Total liabilities increased to $25 million from $10 million on December 31, 2025, primarily due to a $20 million debenture from Streeterville Capital executed in May 2026.
• Management anticipates a substantial reduction in operating expenses in the coming quarters.

Guidance and Future Outlook:

• The company aims to complete the proposed business combination with Skinjet in the first half of 2027.
• CD228V clinical development plans are currently being constructed, with a goal to reach the next meaningful clinical decision point quickly, leveraging an existing foundation from predecessor studies.
• The company expects to advance Skinjet's "Skinjet 005" study and NDA preparation with a projected budget of approximately $3 million over the next two years.
• Teverellix product manufacturing is targeted to be available by the first quarter of 2027 following CMC remediation.

Business Segments and Product Lines:

• Precision Oncology (CD228V): Secured exclusive worldwide rights to PF-08046031 (CD228V), a second-generation antibody-drug conjugate (ADC) with Pfizer. Pfizer provided $2M in development funding and retains an option to fund future pivotal trials. Primary focus is on relapsed/refractory melanoma, targeting an objective response rate (ORR) exceeding 30%.
• Skinjet: Announced a non-binding letter of intent for a business combination with an undisclosed SPAC at a $135 million pre-money valuation. Medicus seeks to retain majority economic and voting ownership. The transaction aims to unlock value and allow Medicus to focus on oncology.
• Teverellix: Reframed for partnering opportunities in acute urinary retention (relapse prevention), advanced prostate cancer, and women's health. The urinary retention study design was optimized from 390 to 126 patients to reduce capital requirements.

Market and Competitive Landscape:

• Positions Medicus among ~30 clinical-stage ADC developers globally, specifically within a small group advancing CD19/CD228-linked assets via Pfizer collaborations.
• Differentiates through the use of Pfizer's established Vedotin linker-payload platform, which has regulatory precedent in FDA-approved therapies.
• Competitor context includes data from Cigen's Phase I study of the predecessor SGN-CD228A (88 patients) and top-line data from Bonn Biotech (Hong Kong-listed, ~30 patients in Phase I).
• Management notes a shift from a pan-tumor approach to a focused strategy on immunotherapy-resistant melanoma to generate high-impact data.

Risks and Challenges:

• Clinical Risk: CD228V efficacy remains unproven; the 30% ORR target in melanoma is a hypothesis, not a guarantee.
• Transaction Risk: The Skinjet SPAC merger is non-binding, with no assurance of signing definitive agreements, securing financing, or closing within the expected timeline.
• Regulatory Risk: Teverellix's prostate cancer protocol is pending FDA feedback on study design.
• Operational Risk: Medicus encountered manufacturing (CMC) snags with Teverellix outside its control, though remediation is underway.
• Capital Risk: Current cash runway requires strict discipline to fund CD228V while maintaining Teverellix and Skinjet readiness.

Management Commentary and Tone:

• Tone is described as "cautiously optimistic" and confident in the scientific rationale, emphasizing a "running start" due to existing data rather than starting from scratch.
• Executive focus is on transforming the company into a capital-efficient, precision oncology-led entity.
• Management emphasized the strategic value of the Pfizer partnership in providing scientific validation and potential future funding.
• Emphasis placed on reducing costs and aligning organizational spending with high-probability milestones.

Analyst Questions and Answers:

• Kamur Raja (Brookline Capital): Asked about CD228V milestones and Skinjet clinical timing.
  • Answer: Development is in early assimilation (60 days post-deal); no delays for Skinjet clinical work, which will proceed in parallel with the SPAC transaction. Teverellix partnership discussions are open to global, regional, or collaborative models.
• Chad Yan (Maxim Group): Inquired about proof-of-concept signals for CD228V melanoma development.
  • Answer: Management is targeting >30% ORR in immunotherapy-resistant melanoma as the key POC signal. Success could enable expansion to squamous lung, esophageal, and head/neck cancers. Confidence derived from predecessor data (99 patients from Cigen + 11 from Pfizer) and Vedotin platform precedents.

Other Key Points:

• Medicus views Teverellix as "partner-ready" rather than holding it internally, prioritizing resource reallocation to CD228V.
• The Skinjet transaction structure aims to create a separately listed company while preserving Medicus shareholder value through majority ownership retention.
• The company has refined Teverellix's urinary retention study design significantly to improve capital efficiency before potential partnering.
• Forward-looking statements warn of risks regarding clinical development, regulatory approval, and transaction completion.