IRLAB publishes interim report for the period January - June 2026

KEY HIGHLIGHTS DURING AND AFTER THE SECOND QUARTER

• In April, the nomination committee proposed the election of Jan Fredrik Backman as new Vice Chairperson and James Gamgort as new Board member at the Annual General Meeting in 2026 and in addition re-election of Chairperson Carola Lemne and Board members Gunnar Olsson, Rein Piir and Veronica Wallin. Christer Nordstedt has declined re-election.
• In May, the Board of Directors resolved on a rights issue of approximately SEK 68 million, consisting of Class A shares, with an overallotment issue of approximately SEK 33.8 million, subject to approval by the extraordinary general meeting. In connection with the share issue, the Company announced that the term for SEK 18.5 million of the outstanding loan of SEK 23.7 million from Fenja Capital has been extended to 30 November 2027. The remaining SEK 5.2 million is to be repaid in connection with the completion of the rights issue.
• In May, the Board of Directors resolved to convene an Extraordinary General Meeting on 5 June 2026 to approve the proposed share issue, resolve on an amendment to the Articles of Association, and elect new members to the Board of Directors.
• In June, the company announced that it will present an integrated analysis of clinical data for mesdopetam at the international conference StanCon 2026. The analysis confirms robust efficacy results from the Phase II clinical studies.
• In June, the company announced the outcome of the rights issue. With a subscription rate of approximately 112.6%, the company raised approximately SEK 68 million before deduction of transaction costs. As the rights issue was oversubscribed, the company received an additional approximately SEK 8.6 million through an over-allotment issue, before deduction of issue-related costs. Consequently, the company raised a total of approximately SEK 76.5 million through the rights issue and the over-allotment issue, before deduction of issue-related costs.
• In June, the company published the communiqué from the Annual General Meeting. All proposed resolutions were approved by the meeting. Christer Nordstedt stepped down from the Board of Directors in connection with the AGM. Following the meeting, the Board consists of Carola Lemne (Chairperson), Jan-Fredrik Backman (Vice Chairperson), James Gamgort, Gunnar Olsson, Rein Piir, and Veronica Wallin.
• In July, the Company announced that the registered number of shares and votes in IRLAB Therapeutics AB had increased as a result of the rights issue of Class A shares. As of 31 July 2026, the total number of shares in IRLAB amounted to 146,461,921, of which 146,382,145 were Class A ordinary shares and 79,776 were Class B ordinary shares, each carrying one (1) vote.
• In August, the Company announced that the World Health Organization (WHO) had assigned the drug candidate IRL757, which is being developed as a potential first-in-class treatment for apathy, the International Nonproprietary Name (INN) linepemat.

FINANCIAL OVERVIEW OF SECOND QUARTER

• Net sales: SEK 6.4m (19.5m)
• Operating profit: SEK -16.7m (SEK -25.7m)
• Earnings per share before and after dilution: SEK -0.23 (SEK -0.62)
• Cash and cash equivalents at the end of the period: SEK 34.2m (SEK 53.6m)
• Cash flow from operations: SEK -13.4m (SEK -42.6m)
• Share price at the end of the period: SEK 1.24 (SEK 3.92)

Figures in brackets = same period 2025, unless otherwise stated.

PRESENTATION TO INVESTORS AND MEDIA
Wednesday, August 26, 2026, at 10.00 CEST a presentation of the interim report 2026 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/OLKumPEvUq8

COMMENTS FROM THE CEO

During the period, IRLAB took several important steps forward: the drug candidate IRL757 was assigned the international nonproprietary name (INN) linepemat, an integrated analysis confirmed mesdopetam’s efficacy profile ahead of Phase III, and a successful capital raise strengthened the company’s financial position. With a strengthened cash position, the company is now aiming to bring the ongoing partner discussions to a conclusion during the year and deliver results from the Phase Ib study LIFT-PD in mid-2027.

Linepemat (IRL757) – advancing toward the next milestone
During the summer, we reached an important milestone when the World Health Organization (WHO) assigned IRL757 the generic name linepemat. The assignment of an internationally recognized nonproprietary name to a drug candidate confirms that the substance has a unique chemical identity and represents a distinct pharmaceutical compound. This means that the substance name is recognized worldwide and can be used by researchers, healthcare professionals, and in future pharmaceutical products. Going forward, we will therefore use the name linepemat in our external communications.

We continue to make good progress in LIFT-PD, our Phase Ib study of linepemat in people with Parkinson’s disease and apathy. Recruitment is progressing, and we expect to present the first study results in mid-2027.

Apathy is a serious and often overlooked symptom for which there are currently no approved treatment options. To me, linepemat is one of the company’s most attractive drug candidates, as it addresses an area with a very high unmet medical need.

Our collaboration with Otsuka secures funding for the development program through the LIFT-PD proof-of-concept study while also providing access to extensive scientific, clinical, and commercial expertise. Equally important, IRLAB retains all rights to the program, giving us significant strategic flexibility as we evaluate the next stages of development and future commercialization opportunities. Under the collaboration agreement, Otsuka has the opportunity to elect to expand the collaboration on linepemat following the completion of the LIFT-PD study.

Integrated analysis confirms mesdopetam’s robust efficacy results
Another important event during the period was the presentation of an integrated analysis of clinical data for mesdopetam, our lead drug candidate for the treatment of levodopa-induced dyskinesias (LIDs), at StanCon 2026 – International Conference on Bayesian Inference and Probabilistic Programming.

The analysis is based on pooled data from our randomized, placebo-controlled Phase II studies and includes evaluations and comparisons of a large number of Bayesian statistical models. Although the numerical estimates of mesdopetam’s anti-dyskinetic effects vary across models, the overall conclusion is unequivocal: the analysis confirms mesdopetam’s clinically meaningful and favorable efficacy profile, as well as its anti-dyskinetic efficacy. For us, this represents important validation of the strength of the clinical data package for mesdopetam. The findings are valuable in preparing the program for Phase III, the final stage of clinical development, and further strengthen our position in ongoing partnering discussions regarding the program’s continued development and commercialization.

During the quarter, we conducted an analysis of market access and pricing in Europe to reassess previous assumptions in light of evolving requirements for the valuation and reimbursement of new medicines, as well as global pricing dynamics. The analysis indicates that mesdopetam has the potential to achieve attractive and similarly high net prices in both Europe and the United States, with no significant risk associated with international reference pricing.

Strengthened foundation for the continued development of pirepemat
The positive feedback from leading international experts and the strong interest shown at the AD/PD 2026 scientific congress have reinforced our confidence in pirepemat’s potential to prevent falls in people living with Parkinson’s disease, an area where no established treatments currently exist. The insights generated from the REACT-PD clinical study provide a stronger foundation for the program’s continued development. We are now focused on designing the next clinical study and defining the regulatory strategy needed to support further progress. In parallel, work continues to advance the large-scale manufacturing process for the active pharmaceutical ingredient. To finance the next stage of development, a partnership or licensing agreement is required to support the program’s continued development and commercialization.

IRL1117 – advancing the future of Parkinson's disease treatment
IRL1117 has the potential to improve the standard treatment of Parkinson’s disease. Based on the drug candidate’s unique properties and mechanism of action, the objective is to develop a therapy with improved treatment adherence and, over time, provide an alternative to today’s standard levodopa-based treatment, without the typical fluctuations and motor complications that often develop during long-term levodopa therapy.

During the period, we continued to strengthen the program through preclinical studies in preparation for a future application to initiate Phase I clinical trials. In parallel, the scale-up of active pharmaceutical ingredient (API) manufacturing is ongoing, representing an important step in preparing for the next phase of development.

Strengthened financial position creates new opportunities
Thanks to the rights issue and overallotment issue completed during the second quarter, we have strengthened our financial position, enhancing our ability to bring the ongoing partner discussions to a conclusion during the year.

At the same time, we have created additional flexibility to further increase the attractiveness of our drug development projects and reduce our reliance on debt financing. The capital infusion enables us to fund operations beyond the readout of the Phase IIb LIFT-PD study with linepemat (IRL757) in 2027, a key milestone in the development of the drug candidate for the treatment of apathy. It also allows us to advance IRL1117 toward Phase I, further strengthening the attractiveness of our project portfolio.

Well positioned for upcoming milestones
During the period, the Board of Directors was strengthened through the appointments of Janne Backman and James Gamgort. Their extensive experience in international business development and commercialization will be highly valuable to IRLAB as we focus on partnerships, continued clinical development, and the creation of long-term value.

I would like to extend my sincere thanks to both existing and new shareholders for your trust and support, to the Board of Directors for its commitment, and to all IRLAB employees for their hard work and dedication. I would also like to express my gratitude to the patients and caregivers participating in our studies. Your trust and involvement make our work possible.

With the clear priorities we established at the beginning of 2026 and a strengthened financial position, I look forward to leading the company toward upcoming milestones and working purposefully to realize the potential within our project portfolio. With several important value-driving milestones ahead, I am confident about the company's continued development.