KEY HIGHLIGHTS DURING AND AFTER THE THIRD QUARTER

• In July, the company announced the outcome of the rights issue. With a subscription rate of approximately 61.1 percent and guarantee undertakings of approximately 23.9 percent of the Rights Issue, the company received approximately SEK 115.7 million before deduction of costs related to the Rights Issue and set-off of loans.
• In August, the company announced that Viktor Siewertz leaves the company for a new leading position.
• In August, the company announced that Roy Jonebrant will take over as acting CFO on September 1, 2025.
• In August, the company announced that as a result of the rights issue of shares of series A which was resolved by the Board of Directors on June 24 2025, by virtue of the authorization from the Annual General Meeting on June 11 2025.
• In September, IRLAB was granted another patent that extends the patent protection for the drug candidate mesdopetam in China.
• In October, the company announced that it is advancing the fully funded study of IRL757 in Parkinson’s disease and that its partner MSRD has issued a payment of USD 4 million for the study.
• In October, Gustaf Albèrt was appointed CFO and will assume his position on November 17.

FINANCIAL OVERVIEW OF THIRD QUARTER

• Net sales: SEK 18.8m (9.0m)
• Operating profit: SEK -17.2m (SEK -29.4m)
• Earnings per share before and after dilution: SEK -0.26 (SEK -0.61)
• Cash and cash equivalents at the end of the period: SEK 110.1m (SEK 90.4m)
• Cash flow from operations: SEK 5.3m (SEK -6.8m)
• Share price at the end of the period: SEK 2.92 (SEK 12.70)

Figures in brackets = same period 2024, unless otherwise stated.

PRESENTATION TO INVESTORS AND MEDIA

Wednesday, October 29, 2025, at 10.00 CEST a presentation of the interim report will be held through a digital webcast. The presentation will be held in Swedish, followed by a Q&A session. Access via link: https://youtube.com/live/JUGwz0ihYyU

COMMENTS FROM THE CEO

In recent months, we have taken several important steps in the development of our leading drug projects. Preparations for the Phase Ib study of IRL757 are progressing according to plan, and we have strengthened the commercial position of mesdopetam through new patent protection. During the quarter, a rights issue was carried out, providing the necessary capital and resources for the continued development of our drug candidates IRL1117 and pirepemat. We are also pleased to welcome Gustaf Albèrt as our new CFO, and the management team now continues to execute our strategy with full focus and determination.

Preparations for the Phase Ib study of IRL757 progressing according to plan

Our preparations to conduct the study in individuals with Parkinson’s disease and apathy are proceeding according to plan. An application to initiate the clinical study was submitted in August. This application includes, among other things, the study protocol and a compilation of all required documentation to initiate a Phase Ib study. The contract research organization (CRO) and the clinics that will carry out the study are now preparing for the start. We look forward to beginning patient recruitment, expected at the end of 2025.

Our collaboration with MSRD/Otsuka is instrumental in advancing the development of IRL757. IRLAB is leading the project, while MSRD/Otsuka is providing full funding through Phase Ib. We have received several milestone payments, and most recently, we received financing of approximately SEK 40 million for the execution of the study. In addition, we will receive around SEK 30 million in milestone payments upon completion of the Phase Ib study.

There are currently no available treatments for apathy, which makes it highly motivating to develop therapies that can improve the lives of people living with Parkinson’s disease and apathy. This naturally comes with challenges but also represents a unique opportunity to make a real difference for both patients and their families.

New patent strengthens the commercial potential of mesdopetam

In September, a new patent for mesdopetam was granted in China, further reinforcing the already strong patent protection for the drug candidate. This provides market exclusivity well into the 2040s across several large and strategically important markets. The patent represents a significant milestone and contributes to increasing the project’s commercial value.

We continue our efforts to secure a partnership or out-licensing agreement for mesdopetam, enabling the drug candidate to reach the market as an effective treatment for levodopa-induced dyskinesias (LIDs). This is an area with a great need for new and improved treatment options—and therefore also a substantial market opportunity.

Pioneering and promising clinical progress for pirepemat

As previously communicated, an in-depth analysis of the Phase IIb study REACT-PD shows promising results for pirepemat. We have now identified the therapeutic window, thereby laying the foundation for the next stage of development, which will focus on optimizing individualized dosing ahead of the future Phase III program.

We are committed to sharing our clinical progress with both leading experts and a broader audience. The work to publish the results from the REACT-PD study is proceeding according to plan, and we look forward to presenting these data at international conferences and in scientific journals in the near future. By sharing our findings, we not only advance knowledge in neuroscience but also strengthen our position as a driving force in developing the treatments of tomorrow.

Pirepemat holds strong market potential, as there are currently no treatments available that effectively prevent falls in people with Parkinson’s disease.

Strengthened financial position and experienced leadership drive progress

Thanks to the rights issue carried out during the quarter, we now have the resources needed to take the next step in the development of IRL1117 and pirepemat. Production of the drug substance has begun, further increasing the attractiveness of these projects. We continuously work to optimize our use of resources and keep costs within the limits we have set. The priorities made during the spring allow us to focus our efforts on the activities most critical for our continued development and for enabling future partnerships or out-licensing opportunities. Our focus remains on turning our innovative projects into the foundation for revenue-generating collaborations.

In October, Gustaf Albèrt was appointed Chief Financial Officer (CFO) and a member of the management team. Gustaf brings extensive experience from senior financial roles, including in the life science industry, as well as a background as an authorized public accountant. With his broad expertise and deep understanding of the financial and strategic challenges facing a listed biotech company, he will be a valuable addition to IRLAB’s continued development, and we look forward to his contributions to the management team. I would also like to take this opportunity to thank Roy Jonebrant for his excellent work as interim CFO. Roy will remain in his role until Gustaf assumes his position in mid-November.

Our journey continues, with unwavering focus on our innovative projects, all of which have the potential to become first-in-class treatments. I look forward to advancing the company and our research portfolio together with our employees and the Board of Directors. Finally, I wish to express my gratitude to all shareholders for the support and confidence you have shown in us.