The period in brief – financial summary for the third quarter 2025

• Net sales amounted to SEK 0 million (SEK 0 million).
• R&D expenses amounted to SEK 4,0 million (SEK 10,2 million).
• Operating loss before impairment for the quarter amounted to SEK –5,1 million (SEK -11,5 million).
• Loss after financial items for the quarter amounted to SEK –23,1 million (SEK -11,1 million).
• Basic and diluted earnings per share for the quarter amounted to SEK –0,19 (SEK -0,09).
• Cash flow from operating activities for the quarter amounted to SEK –5,3 million (SEK -17,8 million).
• Equity on September 30, 2025 amounted to SEK 20,0 million (SEK 71,9 million) or SEK 0,17 (SEK 0,59) per share.
• The equity/assets ratio on September 30, 2025 was 86 percent (93 percent).
• Cash and cash equivalents on September 30, 2025 amounted to SEK 22,3 million (SEK 57,9 million).

Financial summary for the full period January 1-September 30, 2025

• Net sales amounted to SEK 0 million (SEK 0 million).
• R&D expenses amounted to SEK 19,8 million (SEK 31,5 million).
• Operating loss for the period before impairment amounted to SEK –24,6 million (SEK -36,3 million).
• Loss after financial items for the quarter amounted to SEK –42,3 million (SEK -34,9 million).
• Basic and diluted earnings per share for the quarter amounted to SEK –0,35 (SEK -0,31).
• Cash flow from operating activities for the quarter amounted to SEK –24,1 million (SEK -47,0 million).
• Equity on September 30, 2025 amounted to SEK 20,0 million (SEK 71,9 million) or SEK 0,17 (SEK 0,59) per share.
• The equity/assets ratio on September 30, 2025 was 86 percent (93 percent).
• Cash and cash equivalents on September 30, 2025 amounted to SEK 22,3 million (SEK 57,9 million).

Significant events during the third quarter 2025

• The company reported that the letter of intent with Recardio Inc. concerning combining the company’s assets was terminated, as the required financing of a shared specialty pharma company is perceived not possible.
• The company reported that the company name was changed from Kancera AB to Novakand Pharma AB per the decision made at the Annual General Meeting.
• The company announced that the board decided to initiate a process aimed at conducting a reverse takeover, following a review of the company’s strategic options that concluded significant difficulties in raising the amount of needed capital to advance the business and conduct the planned phase IIb study in acute myocardial infarction.
• The company reported that Peter Selin resigned as CEO of the company. The decision was made in mutual agreement with the board and the CEO will, if needed, continue to work for the company up until end of March, 2026.
• The company has written down SEK 18.0 million in intangible assets related to the fractalkine program.

Significant events after the end of the period

• No significant events have been reported after the period.

CEO statement
“In the beginning of the reporting period, we announced that the board had decided to terminate the letter of intent with the US company Recardio Inc., concerning combining the companies’ assets aimed at creating an international specialty pharma with focus on cardiovascular diseases. The board’s decision to terminate the letter of intent was based on the challenging situation on the international capital markets. In connection with the decision, we also announced a comprehensive strategic review with the objective to identify an alternative solution to secure the capital needs of the business.

The strategic review is largely based on the business development work conducted during the last 12 months period. The work has been conducted in collaboration with an international consulting firm and within the scope of work, the most relevant candidates for an industrial partnership with Novakand Pharma in the fields of cardiovascular and autoimmune diseases as well as cancer have been identified. Contacts have been made with almost 300 pharma and biotech companies, and the outcomes clearly show that the targeted industrial partnership requires further investment in additional development activities over several years, which would require a significant capital injection. We believe that the amount of capital needed is not possible for Novakand Pharma to raise within a reasonable time period. This means that there lacks conditions to withhold Novakand Pharma’s clinical stage program commercially viable, considering the term of the company’s patents. Based on this, and in line with good accounting principles, the board has also made the decision to write down the value of the fractalkine program in the balance sheet to zero.

Based on the conclusion that Novakand Pharma is lacking the opportunity to finance the necessary development of the company’s asset, the board made the decision to initiate a process with the objective to realize the value of the company’s listing and cash. This process is primarily focused on conducting a reverse takeover with a growth company, having the ambition to be listed on the Nasdaq First North. A likely outcome of such reverse takeover would mean that Novakand Pharma’s shareholders would receive shares in the company, that is the target for a reverse takeover.

Ever since the decision was announced in September, the board has worked intensively to evaluate different potential target companies for a reverse takeover. The companies that Novakand Pharma is currently evaluating are growth companies aiming to list on Nasdaq First North, both within the life-science sector and other industry sectors. This process is well advanced, however currently not finalized. The board’s ambition is to come back to the market during the fourth quarter concerning whether a divestment of Novakand Pharma’s listing and cash through a reverse takeover is feasible or not.

In parallel with the reverse takeover process the company continues to seek opportunities for a divestment of the fractalkine program. The board assesses the likelihood of a continued development through an industrial partnership within Novakand Pharma’s currently targeted indications to be low, considering the capital required and the term of our current patents. However, there is an ongoing screening for partners who see opportunities for a re-start of the fractalkine program in new indications. If this shows to be possible at all, we do believe that this will mean a step back in the development life cycle and accordingly a lower valuation of the fractalkine program.

In the event that, within a reasonable amount of time, there is a lack of good options for a reverse takeover, or if a general meeting will vote no, the board’s intention is to recommend a de-listing from the Nasdaq First North and voluntary liquidation of the company, by which available cash will be distributed to current shareholders. A liquidation would also mean that the fractalkine program is terminated entirely.

The board therefore continues to be convinced that a reverse takeover is the best solution for Novakand Pharma’s shareholders, given that this can be executed no later than in Q1 2026. It is of course very sad to see the company in this situation, but despite our strong confidence in our clinical development program it is clear that within the current structure, the prerequisites for financing of the continued development of the company’s candidate drugs are missing.”

Peter Selin, CEO Novakand Pharma AB, November 21, 2025

About Novakand Pharma AB
Novakand Pharma is a clinical stage biotech developing a new class of small molecule drugs with an immune cell modulating mode-of-action. The stock is traded on the Nasdaq First North Premier Growth Market. Redeye AB is the company’s Certified Adviser and can be contacted at: certifiedadviser@redeye.se.

For further information

• Please refer the presentation of the 2025 Q3 Interim Report, available on the company’s website: https://novakand.com/en/investors/presentations/
• All financial reports are available at the company’s website: https://novakand.com/en/investors/financial-reports/
• or contact: ir@novakand.com