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

Explicit Guidance:

• Operating Expenses: Management anticipates a "substantial reduction" in operating expenses in the coming quarters following the current period.
• Cash Flow & Runway: Projected to allocate approximately $3 million over the next two years to fund the SkinJet 005 study and NDA preparation; no specific annual revenue or earnings guidance provided.
• Capital Expenditures/Spending: Capital allocation priorities established to direct incremental resources toward CD228V development, while maintaining "partnering readiness" for Teverellics.

Business-Segment Outlook:

• CD228V (Oncology): Immediate priority is advancing the CD228V antibody-drug conjugate. Initial clinical focus is on relapsed/refractory/immunotherapy-resistant melanoma. Management targets an objective response rate (ORR) exceeding 30% as a benchmark to support a potential FDA monotherapy registration strategy.
• CD228V Expansion: Following initial melanoma data, the development program plans to expand into other CD228-expressing solid tumors, specifically squamous lung, esophageal, and head and neck cancers, potentially including combinations with immunotherapy.
• SkinJet (Gorlin Syndrome): A non-binding letter of intent exists for a business combination with a SPAC at a $135 million pre-money valuation. Clinical advancement of the SkinJet 005 study will proceed in parallel to the transaction closure. The goal is NDA submission preparation.
• Teverellics: Strategic shift toward active partnering and collaboration. Optimized protocols for acute urinary retention (reduced from 390 to 126 patients) and advanced prostate cancer (dose optimization study awaiting final FDA feedback on design, expected within ~45 days). Manufacturing (CMC) remediation is underway with product availability expected in Q1 of the following year (2027).

Market and Competitive Outlook:

• ADC Landscape: Positions Medicus within a group of ~30 clinical-stage ADC developers, distinguishing itself via an established platform and Pfizer collaboration.
• Competitive Intelligence: Monitoring data from Bonn Biotech (Hong Kong-listed), which has initiated a Phase I dose-escalation study of ~30 patients; detailed readouts anticipated soon.
• Differentiation: Leverages Pfizer's established Vedotin linker-payload platform and pre-existing clinical data (88 patients from CIGEN's SGN-CD228A study + 11 patients from Pfizer's CD228V initiation) to de-risk development compared to "blank sheet" programs.

Macro / Industry Outlook:

• Regulatory Pathway: Explicitly targeting an FDA monotherapy registration strategy for melanoma, contingent on durable responses, safety profiles, and regulatory feedback on Teverellics protocol designs.
• Partnership Trends: Shift toward "capital-efficient" drug development via co-development (Pfizer) and licensing/partnering (Teverellics) rather than full internal funding of large-scale trials.

Strategic Initiatives:

• SkinJet Transaction: Aiming to complete the proposed business combination with a SPAC during the first half of 2027. Medicus intends to retain majority economic and voting ownership of the combined entity.
• PF-08046031 (CD228V) Agreement: Secured exclusive worldwide rights to develop, manufacture, and commercialize the asset from Pfizer. Pfizer provided $2M in funding and retains a right (no obligation) to fund pivotal trial phases.
• Portfolio Restructuring: Transformation complete from a multi-asset biotech to a "precision oncology-led" company, concentrating investment on CD228V while seeking partners for non-core assets (Teverellics) and spinning out SkinJet via SPAC.

Risks and Headwinds to Outlook:

• Transaction Risks: No assurance that definitive agreements will be signed for the SkinJet transaction, that financing will be secured, or that the deal will close within the first half of 2027 or at all.
• Clinical Risks: The target ORR of >30% for melanoma is an expectation based on historical data, not a guarantee; actual trial results may differ materially.
• Manufacturing Risks: Previous CMC issues with Teverellics were out of control; while progress is being made, delays in manufacturing readiness could impact partnering timelines.
• Regulatory Risks: Teverellics protocol designs remain subject to final FDA feedback; failure to meet FDA thresholds could delay study initiation.

Management Tone on the Future:

• Confidence: "Cautiously optimistic" regarding CD228V's potential, citing the "running start" from existing clinical data and the use of an established linker platform.
• Strategy: Emphasis on "capital-efficient" execution and the desire to "fail early" if the clinical signal is not met to reshape the strategy.
• Commitment: Strong commitment to aligning organizational costs with clinical milestones and delivering tangible value through clinical evidence and strategic transactions.

Miscellaneous:

• Timing: CD228V assimilation and development planning are ongoing 60 days post-closing of the Pfizer agreement.
• Valuation: SkinJet proposed transaction valued at $135 million pre-money, with concurrent equity financing contemplated.
• Cash Position: As of September 30, 2026, $5.0M in cash/cash equivalents and $8.1M in restricted cash (total $13.1M).