Interim report
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Consolidated Financial Results for the Nine Months Ended September 30, 2026 (IFRS) October 30, 2026 Company name: Nxera Pharma Co., Ltd. Listing: Tokyo Stock Exchange Security code: 4565 URL: https://www.nxera.life Representative: Christopher Cargill Representative Executive Officer, CEO Contact person: Hironoshin Nomura Executive Officer, CFO Tel : +81-3-5962-5718 Scheduled date of dividend payments: - Supplementary materials for financial results: Yes Financial results briefing session: Yes (Rounded million yen) 1．Consolidated Financial Results for the 9 month period ended September 30, 2026 (from January 1, 2026 to September 30, 2026) (1) Consolidated Operating Results (cumulative) (Percentages are shown as year-on-year changes) Revenue Core operating profit Operating profit Profit before income taxes Net profit Million yen ％ Million yen ％ Million yen ％ Million yen ％ Million yen ％ 9 month period ended September 30, 2026 27,742 27.0 9,818 - 3,175 - 2,565 - 2,328 - 9 month period ended September 30, 2025 21,848 (0.6) (986) - (5,907) - (6,838) - (4,809) - Net profit attributable to owners of the parent Total comprehensive income Earnings per share – basic Earnings per share – diluted Million yen ％ Million yen ％ Yen Yen 9 month period ended September 30, 2026 2,328 - 1,906 - 25.61 23.17 9 month period ended September 30, 2025 (4,809) - (4,287) - (53.31) (53.31) (2) Consolidated Financial Position Total assets Total equity Equity attributable to owners of the parent Ratio of equity attributable to owners of the parent to total assets Million yen Million yen Million yen % At September 30, 2026 130,252 64,153 64,153 49.3 At December 31, 2025 134,787 60,997 60,997 45.3 2. Dividends Dividends per share End Q1 End Q2 End Q3 End Q4 Total Yen Yen Yen Yen Yen FY2025 - 0.00 - 0.00 0.00 FY2026 - 0.00 - FY2026 (E) 0.00 0.00 (Note) There is no change in the dividend forecast from the previous disclosure. 3. Forecast for the year from January 1, 2026 to December 31, 2026 (Percentages are shown as year-on-year changes) Revenue Core operating profit Operating profit Million yen% Million yen% Million yen % Year ended December 31, 2026 33,800 ～48,800 14.1 ～64.8 7,800 ～22,800 - 700 ～15,700 - (Note) There is no change in the earnings forecast from the previous disclosure. Core operating profit/loss is defined as IFRS Operating profit/loss + material non-cash costs + material non-recurring costs and highlights the underlying recurring cash generating capability of the business.
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* Notes (1) Significant changes in the scope of consolidation for the nine month period ended September 30, 2026: None (2) Changes in accounting policies, changes in accounting estimates 1) Changes in accounting policies required by IFRS: None 2) Changes due to changes in accounting policies other than those of item 1: None 3) Changes in accounting estimates: None (3) Number of common shares issued 1) Number of shares issued at period end (including treasury shares) At September 30, 2026 92,615,359shares At December 31, 2025 90,496,735shares 2) Number of treasury shares at period end At September 30, 2026 1,224,044shares At December 31, 2025 1,976shares 3) Average number of shares in issue in period 9 month period ended September 30, 2026 90,929,546shares 9 month period ended September 30, 2025 90,203,295shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Explanation regarding the appropriate use of forecasts of business results and other points to be noted Note concerning forward-looking statements: The financial forecast is based on judgements and estimates that have been prepared on the basis of information available as of the time of disclosure of this material. The actual business results may differ materially from our forecasts due to various factors. The Company is scheduled to hold a webinar presentation for all existing and potential investors as well as sell-/buy-side analysts which will consist of a presentation followed by a Q&A session on October 30, 2026. Presentation slides will be made available on October 30, 2026 through the investor section of the Company’s Home Page.
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1 ○ Contents of Attached Materials 1. Analysis of Operating Results and Financial Position 2 (1) Analysis of operating results 2 (2) Analysis of financial position 11 (3) Future outlook 12 2. Interim Condensed Consolidated Financial Statements and Primary Notes (IFRS) 13 (1) Interim Condensed Consolidated Balance Sheet 13 (2) Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 14 (3) Interim Condensed Consolidated Statement of Changes in Equity 15 (4) Interim Condensed Consolidated Statement of Cash Flows 16 (5) Notes to the Interim Condensed Consolidated Financial Statements 17
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2 1. Analysis of Operating Results and Financial Position (1) Analysis of operating results Nxera Pharma (“the Group” or “the Company”) aims to deliver innovation from Japan to the world and to become a Japan-originated, internationally leading biopharmaceutical company. The Group engages in business from drug discovery to early clinical development in the UK, and late-stage clinical development and product commercialization in Japan and South Korea, through its wholly- owned subsidiaries, as well as late-stage clinical development in other Asia-Pacific (APAC, ex-China) markets through business partners. In drug discovery conducted in the UK, the Group’s NxWave™ platform technology, which leverages cutting-edge drug target structural analysis, IT and AI technology, has enabled the Group to establish a global leadership position in drug discovery mainly targeting G Protein-Coupled Receptors (GPCRs) and to develop an extensive pipeline of over 30 programs in-house and with leading global pharmaceutical companies. In late-stage clinical development and commercialization, the Group sells PIVLAZ® (clazosentan) for cerebral vasospasm and QUVIVIQ® (daridorexant) for insomnia in Japan, and daridorexant is in late- stage development for insomnia in South Korea and APAC. In addition, the Group receives royalty revenues from the global sales of respiratory disease products Seebri® Breezhaler®, Ultibro® Breezhaler® and Enerzair® Breezhaler® from Novartis International AG (“Novartis”). The Group aims to achieve more advanced strategic growth by leveraging its NxWave™ platform technology, pipeline and discovery, development and commercialization capabilities. This strategy is based on two key strategic pillars: (i) Delivering Life-Changing Medicines to Patients in Japan and APAC Leveraging the Group’s extensive experience in clinical development and commercialization in Japan to deliver new medicines developed in-house or in-licensed from other companies to patients in Japan and APAC. (ii) Progressing its Extensive Portfolio of Novel Drug Programs Designed using NxWave™ Platform Technology Advancing programs in-house and with partners targeting large and fast-growing disease areas with a significant need globally. The Group’s progress across these two key areas during the nine months of 2026 is as follows: (i) Delivering Life-Changing Medicines to Patients in Japan and APAC The Group forecasts PIVLAZ® sales in the range of JPY 13,800 to JPY 14,200 million, QUVIVIQ® revenue in the range of JPY 5,000 million to JPY 6,000 million, and anticipates the in-licensing of one or more late-stage clinical development assets for Japan and APAC in 2026. On January 8, 2026, the Group announced that it had entered a licensing agreement for the development, manufacturing and commercialization of vamorolone for the treatment of Duchenne Muscular Dystrophy (“DMD”) in Japan, South Korea, Australia and New Zealand with Santhera Pharmaceuticals Holding AG. Vamorolone is approved and marketed as AGAMREE® for the treatment of DMD, an inherited neuromuscular disease, in the US, European Union, UK and China. The addition of vamorolone brings into the Company’s portfolio of innovative medicines for rare and specialty diseases, a late-stage development candidate with the potential to address significant unmet needs of patients in Japan and the Asia-Pacific (“APAC”) region living with DMD.
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3 On January 19, 2026, the Group announced that positive topline results had been obtained from a randomized, double-blind, placebo-controlled Phase 3 trial in South Korea evaluating daridorexant 50 mg, a dual orexin receptor antagonist, in adult and elderly patients diagnosed with insomnia disorder. On March 4, the Group announced that it had submitted a marketing authorization application to the Ministry of Food and Drug Safety (MFDS) in South Korea for daridorexant for the treatment of patients with insomnia disorder. Regulatory approval in South Korea is anticipated in 2027. On April 14, 2026, the Group announced that its partner, Holling Bio-Pharma Corp. (“Holling”), the largest pharmaceutical distribution and sales company in Taiwan and headquartered in Taipei, Taiwan, had received marketing approval from the Taiwan Food and Drug Administration (TFDA) for QUVIVIQ® (daridorexant; Taiwan brand name: 科唯可®) 25mg and 50mg for the treatment of insomnia in adult patients. QUVIVIQ® is expected to be launched in Taiwan during 2026. On June 2, 2026, the Group announced that the Ministry of Food and Drug Safety (MFDS) of the Republic of Korea had granted Orphan Drug Designation (ODD) and Global Innovative Products on Fast Track (GIFT) designation to vamorolone for the treatment of DMD. The Group plans to submit a Marketing Authorization Application (MAA) for vamorolone in South Korea during 2026. (ii) Progressing its Extensive Portfolio of Novel Drug Programs Designed using NxWave™ Platform Technology The Group aims to achieve this objective through: A) Executing new partnerships and licensing agreements with major pharmaceutical companies B) Advancing clinical development of in-house assets C) Executing partnerships and investment to further enhance and extend the capabilities of the NxWave™ platform technology For 2026, the Group plans to execute at least one new major partnership and to have at least one partner-led Phase 2 study initiation: On January 12, 2026, the Group reported on progress being made by Neurocrine Biosciences (“Neurocrine”) regarding the clinical development of its partnered muscarinic agonist portfolio. These updates were presented by Neurocrine at the 44th Annual J.P. Morgan Healthcare Conference. Direclidine/NBI-1117568 (an M4 selective agonist): Phase 3 studies in schizophrenia are ongoing, with readouts expected in 2027 and 2028, and a Phase 2 study in bipolar mania is also ongoing. NBI-1117570 (a dual M1/M4 agonist): a Phase 2 study in schizophrenia is ongoing (also see later comment). NBI-1117567 (an M1-preferring agonist): a Phase 2 study targeting Alzheimer’s cognition is expected to begin during 2026 (also see later comment). NBI-1117569 (a dual M1/M4 agonist): results from a Phase 1 study targeting Alzheimer’s psychosis are expected to be announced in 2027. On January 13, 2026, the Group announced that, under its research and development collaboration with Centessa Pharmaceuticals Limited (“Centessa”), it was eligible to receive a
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4 US$3.6 million milestone payment from Centessa. This was triggered by the achievement of an early development milestone for ORX142, the second novel orexin 2 receptor agonist discovered using the Group’s technology. On February 12, 2026, the Group announced that an early development milestone had been achieved for ORX489, an orexin receptor 2 agonist being developed for neuropsychiatric disorders, and that it would receive a US$1.8 million milestone payment from Centessa. ORX489 is the third novel orexin receptor 2 agonist discovered using the Group’s technology. On March 5, 2026, the Group announced that an additional early development milestone had been achieved for ORX489 and that it would receive a further US$3.0 million milestone payment from Centessa. The Group entered into a license agreement with a newly established independent company created by a leading international life sciences investment firm to advance a GPCR-targeted program discovered and developed by the Group. Under the agreement, the Group received an equity stake in the new company and is eligible to receive up to US$275 million in milestone payments together with royalties on future sales, subject to the successful development and commercialization of the program. On April 1, 2026, the Group announced that its partner Centessa had entered into an acquisition agreement with Eli Lilly and Company (“Lilly”). Centessa’s orexin receptor 2 agonist series, cleminorexton/ORX750, ORX142 and ORX489, was jointly discovered by Centessa and the Group under a collaboration through which Centessa has access to the Group’s proprietary NxStaR™ technology. For all of these orexin receptor 2 agonists, the Group remains entitled to receive certain milestone payments and royalties, and the contractual terms are unaffected by this transaction. On April 9, 2026, the Group announced that it had achieved a development milestone under its multi-target collaboration and license agreement with Lilly targeting diabetes and metabolic diseases. As a result, the Group received a milestone payment, the amount of which is undisclosed. On April 13, 2026, the Group announced that its partner, Neurocrine, had initiated a Phase 2 clinical trial of NBI-1117570 in adults with schizophrenia and dosed the first patient. As a result of the initiation of this Phase 2 trial, the Group received two milestone payments totaling US$22.5 million from Neurocrine pursuant to the agreement. On April 20, 2026, the Group announced that it had achieved a third important research milestone under its multi-target discovery collaboration with AbbVie focused on neurological diseases. As a result, the Group received US$10 million. The majority of this milestone payment will be recognized as revenue in 2026, with the remainder deferred and recognizable in 2027 and beyond. In April 2026, following its evaluation of development options after pausing the TMP-301 program in October 2025, Tempero Bio formally terminated the program and began winding down operations. On May 11, 2026, the Group announced an investment in the company (“NewCo”) to which it had out-licensed a program to in Quarter 1 2026. A Series A financing round was executed whereby the Group and two leading healthcare-focused venture capital firms entered into investment agreements with NewCo.
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5 On June 10, 2026, the Group announced that it had joined OpenFold, a non-profit AI research consortium that promotes the development of open-source AI software tools for biology and drug discovery. Technology companies including Amazon Web Services, Microsoft and NVIDIA participate in OpenFold as Supporting Members, and the consortium has expanded into an international ecosystem comprising numerous pharmaceutical companies, biotechnology companies, technology companies and academic institutions, including Bristol Myers Squibb, Novo Nordisk, Bayer and Roche. On June 30, 2026, the Group announced that it had reached a fourth R&D milestone under its multi-target drug discovery collaboration with AbbVie Inc. focused on neurological diseases, resulting in a US$10 million milestone payment to the Group. The majority of this milestone payment will be recognized as revenue in 2026, with the remaining portion deferred and recognizable in 2027 and thereafter. On August 26, 2026, the Group announced that its partner, Neurocrine, had received IND Acceptance from the U.S. Food and Drug Administration (FDA) for a Phase 2 study of NBI-1117567 for Alzheimer’s cognition. Pursuant to the agreement, Nxera received a milestone payment of US$10 million from Neurocrine. Nxera retains exclusive development and commercialization rights in Japan for all indications of M1 receptor agonists. On September 3, 2026, the Group announced that Centessa, a wholly-owned subsidiary of Eli Lilly and Company (“Lilly”), had achieved a late-stage development milestone associated with its selective orexin receptor 2 (OX2R) agonist portfolio. Pursuant to the agreement, the Group received a milestone payment of US$8.6 million upon achievement of this milestone. Operational highlights after the period under review (nine month period ended September 30, 2026) On October 14, 2026, the Group announced that it had entered into an exclusive license, supply and commercialization agreement with Taiwan-headquartered Synmosa Biopharma Corporation (“Synmosa”) for QUVIVIQ® (daridorexant) across eight Asia-Pacific markets. Synmosa will lead regulatory approvals and commercialization in these markets, while the Group will supply the product and receive an upfront payment, regulatory approval milestones, royalties and product supply revenue. On October 22, 2026, the Group announced that it had submitted a marketing authorization application (MAA) to the Ministry of Food and Drug Safety (MFDS) in South Korea for vamorolone, a treatment for Duchenne muscular dystrophy (DMD). The Group aims to obtain marketing authorization in South Korea in 2027 and launch the product in 2028. On October 28, 2026, the Group announced that it had exercised its option to license lucerastat, a drug candidate for the treatment of Fabry disease, and entered into a co-development and commercialization agreement with Idorsia Pharmaceuticals Ltd. (“Idorsia”). Under the agreement, the Group holds exclusive rights to develop and commercialize lucerastat in Japan, South Korea, Taiwan and certain other Asia-Pacific markets (excluding China). The Group will pay Idorsia an upfront payment of CHF 7 million and collaborate on a global Phase 3 clinical development program aimed at supporting regulatory filings as early as 2029.
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6 Employees As of September 30, 2026, the Group had a total of 314 employees (a decrease of 68 employees vs. the end of the prior year).
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7 Financial Results As a result of the above activities, the Group reported the following financial results for the nine month period ended September 30, 2026: Revenue of JPY 27,742 million (an increase of JPY 5,894 million vs. the prior corresponding period) Core operating profit (alternative performance measure) of JPY 9,818 million (vs. a core operating loss of JPY 986 million in the prior corresponding period) IFRS operating profit of JPY 3,175 million (vs. an operating loss of JPY 5,907 million in the prior corresponding period) Profit before income taxes of JPY 2,565 million (vs. a loss before income taxes of JPY 6,838 million in the prior corresponding period) Net profit of JPY 2,328 million (vs. a net loss of JPY 4,809 million in the prior corresponding period) 9 month period ended September 30, 2026 ¥m 9 month period ended September 30, 2025 ¥m Change Revenue 27,742 21,848 5,894 Cost of sales (4,269) (6,146) 1,877 Research and development expenses (Note 1) (8,951) (11,189) 2,238 Selling, general and administrative expenses (Note 1) (8,330) (9,341) 1,011 Amortization (Note 1) (2,008) (2,080) 73 Operating expenses (23,557) (28,756) 5,199 Net other (expenses) income (1,010) 1,001 (2,012) Operating profit (loss) 3,175 (5,907) 9,081 Net finance cost (582) (931) 349 Share of result of associate (28) - (28) Profit (loss) before income taxes 2,565 (6,838) 9,403 Income tax (expense) benefit (236) 2,029 (2,266) Net profit (loss) 2,328 (4,809) 7,137 Notes 1. Commencing in the nine month period ended September 30, 2026, amortization of intangible assets is presented separately from “Research and development expenses” and ”Selling, general and administrative expenses”. The comparative disclosure has been restated to align with this new presentation. For details of this change in presentation, please refer to “2. Interim Condensed Consolidated Financial Statements and Primary Notes (IFRS), (5) Notes to the Interim Condensed Consolidated Financial Statements, Change in presentation”. Alternative performance measure Core operating profit (loss) (Note 1) Operating profit (loss) (as stated above) 3,175 (5,907) 9,081 Adjustments: Amortization 2,008 2,080 (73) Depreciation 1,254 1,203 51 Share-based payments (Note 2) 1,193 1,315 (122) Restructuring (Note 2) 471 225 245 Impairment (Note 3) 1,717 - 1,717 Integration costs (Note 4) - 98 (98) Core operating profit (loss) 9,818 (986) 10,803 Average exchange rate during period USD:JPY 158.52 148.18 10.34 GBP:JPY 213.12 194.65 18.47 Notes 1. Core operating profit (loss) is defined as IFRS Operating profit/loss + material non-cash costs + material non-recurring costs and highlights the underlying recurring cash generating capability of the business. 2. Accelerated share-based payment expenses are included in Restructuring. 3. Impairment losses are non-cash costs incurred primarily due to the impairment of goodwill and intangible assets. 4. Incremental one-off integration costs including IT system integration and corporate rebranding.
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8 The Group operates as a single business segment and, therefore, segmental information has been omitted. Further explanation of the Group’s financial performance is detailed below. Revenue 9 month period ended September 30, 2026 ¥m 9 month period ended September 30, 2025 ¥m Change ¥m Change % Marketed Products 15,839 13,784 2,055 14.9 PIVLAZ® 9,876 8,965 910 10.2 QUVIVIQ® 4,510 3,149 1,360 43.2 Respiratory 1,454 1,605 (150) (9.4) Other (1) 65 (65) - Research and Development 11,904 8,064 3,840 47.6 Upfront fee revenue 82 1,571 (1,489) (94.8) Milestone revenue 9,497 4,662 4,835 103.7 Deferred revenue releases 2,324 1,802 522 29.0 Other 1 29 (29) (98.1) 27,742 21,848 5,894 27.0 Revenue relating to Marketed Products in the nine month period under review totaled JPY 15,839 million (an increase of JPY 2,055 million vs. the prior corresponding period). The breakdown is described below. PIVLAZ® The Group sells PIVLAZ® for the prevention of cerebral vasospasm in Japan using its in-house salesforce. PIVLAZ® revenue increased by 10.2% vs. the prior corresponding period due to sales volume growth. QUVIVIQ® The Group earns royalty revenue on sales of QUVIVIQ® by Shionogi & Co., Ltd. (“Shionogi”), as well as product sales revenue on the supply of QUVIVIQ® to Shionogi. QUVIVIQ® revenue increased by 43.2% vs. the prior corresponding period primarily due to sales volume growth. Respiratory The Group earns royalty revenue on global sales of a portfolio of Respiratory products by Novartis1. This portfolio comprises Seebri®, Ultibro® and Enerzair®. Respiratory royalty revenue decreased by 9.4% vs. the prior corresponding period due to declining sales as the portfolio matures. Revenue relating to Research and Development in the nine month period under review totaled JPY 11,904 million (an increase of JPY 3,840 million vs. the prior corresponding period). Upfront fee revenue The Group earns upfront fees from entering R&D collaborations with new partners. Upfront fees decreased by JPY 1,489 million vs. the prior corresponding period. In the nine month period under review one agreement was signed vs. two in the prior corresponding period. Milestone revenue The Group earns milestone revenue as a result of the progress of R&D with existing collaboration partners. Milestone revenue increased by JPY 4,835 million vs. the prior corresponding period. The 1 Seebri®, Ultibro® and Enerzair® are registered trademarks of Novartis AG.
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9 increase in milestone revenue in the nine month period under review was due to the occurrence of ten R&D milestone events in the current nine month period vs. six R&D milestone events in the prior corresponding period. Deferred revenue releases In some contracts, compensation for performing research and development services is included within upfront fees or milestone receipts, and recorded initially as deferred revenue in the balance sheet. Such income is transferred from deferred revenue to the revenue line in the income statement as a result of the performance of R&D activity in the period under review. Deferred revenue releases increased by JPY 522 million vs. the prior corresponding period due to the stage of progression of relevant projects as at the end of the reporting period. Deferred revenue recorded in the balance sheet as at September 30, 2026 totaled JPY 4,646 million and will be transferred to revenue in the future as research and development activity is completed. Operating expenses Cost of sales Cost of sales in the nine month period under review totaled JPY 4,269 million (a decrease of JPY 1,877 million vs. the prior corresponding period). This was primarily due to the inclusion of lower costs relating to R&D collaborations. Research and development expenses Research and development (“R&D”) expenses in the nine month period under review totaled JPY 8,951 million (a decrease of JPY 2,238 million vs. the prior corresponding period). This was primarily due to the maturation of a number of clinical programs, together with the adoption of a more streamlined R&D focus. In the period under review, 88% of R&D spend related to the Group’s UK operations. Selling, general and administrative expenses Selling, general and administrative (“SG&A”) expenses in the nine month period under review totaled JPY 8,330 million (a decrease of JPY 1,011 million vs. the prior corresponding period). This decrease was primarily due to targeted cost reduction initiatives. Amortization Amortization of intangible assets includes amortization associated with commercialised products and platform technologies. The amortization charge for the period was JPY 2,008 million (a decrease of JPY 73 million vs. the prior corresponding period). Net other expenses Net other expenses in the nine month period under review totaled JPY 1,010 million vs. net other income of JPY 1,001 million (a change of JPY 2,012 million). This was primarily due to the recognition of an impairment loss of JPY 1,114 million on goodwill arising from the acquisition of Sosei R&D Ltd. (formerly Arakis Limited), and restructuring costs of JPY 471 million in the nine month period under review. Operating profit Operating profit in the nine month period under review totaled JPY 3,175 million (vs. an operating loss of JPY 5,907 million in the prior corresponding period). This improvement in profitability reflects the combined effect of all of the movements explained above.
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10 Net finance cost Net finance cost in the nine month period under review totaled JPY 582 million (vs. a net finance cost of JPY 931 million in the prior corresponding period). This decrease was primarily due to recording a large fair value loss on contingent consideration in the prior corresponding period vs. a small gain in the current period. The impact of this was partially offset by reduced interest income on lower bank deposit balances. Share of result of associate Share of result of associate in the nine month period under review was a net loss of JPY 28 million (there was no share of result of associate in the prior corresponding period). This balance comprises Nxera’s share of the associate’s after tax loss, partially offset by an accounting gain arising from a fundraising round by the associate. Profit before income taxes Profit before income taxes in the nine month period under review totaled JPY 2,565 million (vs. a loss before income taxes of JPY 6,838 million in the prior corresponding period). This improvement in profitability reflects the combined effect of all of the movements explained above. Income tax expense Income tax expense in the nine month period under review totaled JPY 236 million (vs. an income tax benefit of JPY 2,029 million in the prior corresponding period). The tax amount reflects the application of the estimated full year effective tax rate to the year-to-date results for each taxable entity. Net profit Net profit in the nine month period under review totaled JPY 2,328 million (vs. a net loss of JPY 4,809 million in the prior corresponding period). This improvement in profitability reflects the combined effect of all of the movements explained above. Alternative performance measure: Core operating profit (loss) Core operating profit (loss) is an alternative performance measure which adjusts for material non- cash costs and one-off costs in order to provide insights into the recurring cash generating capability of the core business. Core operating profit in the nine month period under review totaled JPY 9,818 million (vs. a core operating loss of JPY 986 million in the prior corresponding period). In calculating core operating profit, the following adjustments to the IFRS operating profit have been made: Amortization totaled JPY 2,008 million (a decrease of JPY 73 million vs. the prior corresponding period). Depreciation totaled JPY 1,254 million (an increase of JPY 51 million vs. the prior corresponding period). Share-based payments totaled JPY 1,193 million (a decrease of JPY 122 million vs. the prior corresponding period). Restructuring totaled JPY 471 million (an increase of JPY 245 million vs. the prior corresponding period). These costs relate to restructuring programs implemented in the UK (including JPY 56 million of accelerated share-based payment expenses). Impairment losses totaled JPY 1,717 million (there was no impairment loss in the prior corresponding period). This was primarily due to recording an impairment loss on goodwill and Intangible assets.
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11 There were no integration costs in the nine month period under review (vs. JPY 98 million in the prior corresponding period). Integration costs mainly related to IT system integrations which were completed in 2025. (2) Analysis of financial position 1) Assets, liabilities and equity Assets Total assets as at September 30, 2026 were JPY 130,252 million (a decrease of JPY 4,535 million vs. December 31, 2025, the end of the prior financial year). This was primarily due to recording impairment losses on goodwill and intangible assets, and a decrease in cash and cash equivalents for the reasons explained in the Cash flows section below, offset by an increase in intangible assets as a result of the vamorolone in-license. Liabilities Total liabilities as at September 30, 2026 were JPY 66,099 million (a decrease of JPY 7,691 million vs. December 31, 2025, the end of the prior financial year). This decrease was primarily due to the repayment of borrowings and the settlement of trade and other payables. Equity Total equity as at September 30, 2026 was JPY 64,153 million (an increase of JPY 3,156 million vs. December 31, 2025, the end of the prior financial year). This increase was primarily due to the net profit of JPY 2,328 million and an increase in capital surplus primarily relating to share-based payments. The ratios of Cash and cash equivalents, Interest-bearing debt and Equity attributable to the owners of the parent company to total assets were 12.8%, 39.9% and 49.3%, respectively. 2) Cash flows Cash and cash equivalents as at September 30, 2026 decreased by JPY 3,752 million from the beginning of the year and amounted to JPY 16,613 million. The main drivers of each cash flow in the nine month period ended September 30, 2026 were as follows: Cash flows from operating activities Net cash provided by operating activities during the period under review totaled JPY 5,728 million. This was primarily due to operating cash inflows including milestone receipts, exceeding operating cash outflows. Cash flows from investing activities Net cash used in investing activities during the period under review totaled JPY 4,218 million. This was primarily due to cash outflows relating to the vamorolone in-license and an equity investment in an associated company, partially offset by proceeds received from the sale of investment securities. Cash flows from financing activities Net cash used in financing activities in the period under review totaled JPY 5,043 million. This was primarily due to routine long-term bank borrowing repayments.
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12 Effects of exchange rate changes on cash and cash equivalents The effect of exchange rate changes on cash and cash equivalents during the period under review was a decrease of JPY 220 million. This decrease was primarily due to the strengthening of JPY against GBP since December 31, 2025. (3) Future outlook The key points regarding the earnings forecast for the financial year ending December 31, 2026, are as follows: • Revenue Forecast JPY 33,800 to JPY 48,800 million • Core operating profit JPY 7,800 to JPY 22,800 million • Operating profit JPY 700 to JPY 15,700 million • Projected product revenue for PIVLAZ® in the range of JPY 13,800 to JPY 14,200 million (FY2025: JPY 13,511 million) • Projected product revenue for QUVIVIQ® in the range of JPY 5,000 to JPY 6,000 million (FY2025: JPY 4,327 million) Notes 1) In addition to the product revenues outlined above, our forecast assumes JPY 12,500 million in development milestone income from our development partners but which is contingent upon the successful achievement of the relevant milestones, as well as a reduction in the cost base of JPY 3,500 million for R&D and SG&A. It should be noted that there can be no certainty that all of these assumptions will be achieved in the FY2026. The lower end of the forecast ranges for revenue, core operating profit and operating profit assume that there are no significant new business development deals in FY2026. 2) The assumed exchange rates are USD/JPY = 152 and GBP/JPY = 200.
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13 2. Interim Condensed Consolidated Financial Statements and Primary Notes (IFRS) (1) Interim Condensed Consolidated Balance Sheet September 30, 2026 (Unaudited) ¥m December 31, 2025 ¥m Assets Non-current assets Property, plant and equipment 5,538 7,455 Goodwill 24,565 25,838 Intangible assets 52,116 49,230 Investments accounted for using equity method 887 - Deferred tax assets 6,182 4,879 Other financial assets 1,553 2,881 Other non-current assets 12 38 Total non-current assets 90,854 90,322 Current assets Trade and other receivables 6,783 7,730 Inventories 11,800 11,294 Income taxes receivable 2,912 2,730 Other current assets 1,290 2,346 Cash and cash equivalents 16,613 20,365 Total current assets 39,398 44,465 Total assets 130,252 134,787 Liabilities and Equity Liabilities Non-current liabilities Deferred tax liabilities 2 0 Contingent consideration in business combinations 1,983 1,940 Corporate bonds 26,309 26,080 Bank borrowings 16,772 21,109 Lease liabilities 2,218 3,506 Provisions 502 510 Other non-current liabilities 2,910 3,145 Total non-current liabilities 50,697 56,290 Current liabilities Trade and other payables 4,434 7,494 Income taxes payable 1,381 193 Current portion of long-term bank borrowings 5,798 5,798 Lease liabilities 860 886 Other current liabilities 2,929 3,128 Total current liabilities 15,402 17,500 Total liabilities 66,099 73,790 Equity Capital stock 48,507 47,450 Capital surplus 23,548 22,120 Treasury stock (1,239) (3) Retained earnings (13,486) (17,546) Other components of equity 6,823 8,977 Equity attributable to owners of the parent 64,153 60,997 Total equity 64,153 60,997 Total liabilities and equity 130,252 134,787
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14 (2) Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Nine month period ended September 30, 2026 (Unaudited) ¥m Nine month period ended September 30, 2025 (Unaudited) ¥m Revenue 27,742 21,848 Cost of sales (4,269) (6,146) Gross profit 23,474 15,702 Research and development expenses (8,951) (11,189) Selling, general and administrative expenses (8,330) (9,341) Amortization (2,008) (2,080) Other income 1,185 1,013 Other expenses (2,196) (12) Operating profit (loss) 3,175 (5,907) Finance income 251 780 Finance costs (833) (1,711) Share of result of associate accounted for using the equity method (28) - Profit (loss) before income taxes 2,565 (6,838) Income tax (expense) benefit (236) 2,029 Net profit (loss) 2,328 (4,809) Other comprehensive income: Items that will not be reclassified subsequently to profit or loss: Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income 62 (52) Total items that will not be reclassified subsequently to profit or loss 62 (52) Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations (483) 574 Total items that may be reclassified subsequently to profit or loss (483) 574 Total other comprehensive income (422) 522 Total comprehensive income 1,906 (4,287) Net profit (loss) for the period attributable to: Owners of the parent 2,328 (4,809) 2,328 (4,809) Total comprehensive income for the period attributable to: Owners of the parent 1,906 (4,287) 1,906 (4,287) Earnings per share (yen) Basic profit (loss) per share 25.61 (53.31) Diluted profit (loss) per share 23.17 (53.31)
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15 (3) Interim Condensed Consolidated Statement of Changes in Equity Capital stock ¥m Capital surplus ¥m Treasury stock ¥m Retained earnings ¥m Other components of equity ¥m Equity attributable to owners of the parent ¥m Total equity ¥m Balance at January 1, 2026 47,450 22,120 (3) (17,546) 8,977 60,997 60,997 Net profit - - - 2,328 - 2,328 2,328 Other comprehensive income - - - - (422) (422) (422) Total comprehensive income - - - 2,328 (422) 1,906 1,906 Issuance of new shares 1,057 193 - - - 1,250 1,250 Share-based payments - 1,249 - - - 1,249 1,249 Purchases of treasury stock - - (1,250) - - (1,250) (1,250) Disposal of treasury stock - (15) 15 - - 0 0 Transfer from other components of equity to retained earnings - - - 1,732 (1,732) - - Total transactions with owners 1,057 1,427 (1,236) 1,732 (1,732) 1,249 1,249 Balance at September 30, 2026 (Unaudited) 48,507 23,548 (1,239) (13,486) 6,823 64,153 64,153 Balance at January 1, 2025 47,172 35,074 (3) (20,942) 7,217 68,518 68,518 Net loss - - - (4,809) - (4,809) (4,809) Other comprehensive income - - - - 522 522 522 Total comprehensive income - - - (4,809) 522 (4,287) (4,287) Issuance of new shares 278 (278) - - - - - Share-based payments - 1,425 - - - 1,425 1,425 Purchases of treasury stock - - (0) - - (0) (0) Transfer from capital surplus to retained earnings - (14,621) - 14,621 - - - Total transactions with owners 278 (13,474) (0) 14,621 - 1,425 1,425 Balance at September 30, 2025 (Unaudited) 47,450 21,600 (3) (11,130) 7,739 65,656 65,656
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16 (4) Interim Condensed Consolidated Statement of Cash Flows Nine month period ended September 30, 2026 (Unaudited) ¥m Nine month period ended September 30, 2025 (Unaudited) ¥m Cash flows from operating activities Profit (loss) before income taxes 2,565 (6,838) Adjustments for: Receipt of non-cash consideration from customers (82) Depreciation and amortization 3,262 3,283 Share-based payments 1,249 1,424 Impairment loss 1,717 - Share of result of associate accounted for using the equity method 28 - Change in fair value of contingent consideration (24) 1,003 Net foreign exchange loss (profit) 72 (10) Interest income (227) (780) Interest expense 759 639 Research and development expenditure related tax credits (1,073) (1,002) Decrease (increase) in trade and other receivables 863 (986) Increase in inventories (506) (793) (Decrease) increase in trade and other payables (3,017) 1,042 Decrease in deferred revenue (661) (1,079) Other 1,324 52 Subtotal 6,250 (4,045) Grants received 6 - Interest received 250 877 Interest paid (475) (368) Income tax paid (305) (238) Income tax refunded 2 1,231 Net cash provided by (used in) operating activities 5,728 (2,543) Cash flows from investing activities Purchase of property, plant and equipment (443) (301) Purchase of intangible assets (5,236) (156) Proceeds from sale of investment securities 3,666 - Purchase of investment securities (2,139) - Proceeds from withdrawal of time deposits - 3,893 Other (67) 30 Net cash (used in) provided by investing activities (4,218) 3,466 Cash flows from financing activities Repayments of long-term bank borrowings (4,350) (4,350) Repayment of lease liabilities (685) (674) Other (7) (0) Net cash used in financing activities (5,043) (5,024) Effects of exchange rate changes on cash and cash equivalents (220) 294 Net decrease in cash and cash equivalents (3,752) (3,807) Cash and cash equivalents at the beginning of the period 20,365 32,268 Cash and cash equivalents at the end of the period 16,613 28,461
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17 (5) Notes to the Interim Condensed Consolidated Financial Statements 5.1 Notes related to going concern assumptions Not applicable. 5.2 Change in presentation In light of the expansion of the Group’s business portfolio and anticipated future business developments, and as intangible assets are expected to become increasingly significant to the Group, management reviewed the presentation of its interim condensed consolidated statement of profit or loss and other comprehensive income during the third quarter of the current financial year. As a result, management determined that presenting amortization of intangible assets separately from research and development expenses and selling, general and administrative expenses would provide a more appropriate presentation of the Group’s cost structure and enhance users’ understanding of its financial performance. Accordingly, the Group has changed the presentation of such amortization expense. As a result of this change, JPY 11,200 million previously presented as "Research and development expenses" and JPY 11,410 million previously presented as "Selling, general and administrative expenses" in Interim condensed consolidated statement of profit or loss and other comprehensive income for the nine month period ended September 30, 2025 have been reclassified as "Research and development expenses" of JPY 11,189 million, "Selling, general and administrative expenses" of JPY 9,341 million and "Amortization" of JPY 2,080 million. 5.3 Operating segments The Group operates a single business segment being the pharmaceutical business.
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18 5.4 Significant subsequent events Issuance of Stock Acquisition Rights under the Executive Officer Performance Stock Option Plan On October 20, 2026, the Company announced that its Compensation Committee had adopted the Nxera Pharma Co., Ltd. Executive Officer Performance Stock Option / Stock Acquisition Rights Plan (the “Plan”), a medium to long-term performance-based compensation plan for the Company’s three Executive Officers, and that its Board of Directors at its meeting held on October 20, 2026 resolved to issue the 36th Series Stock Acquisition Rights of the Company (the “Rights”) under the Plan. The Rights are divided into five tranches. Each tranche vests only if, during a five-year performance period, the arithmetic average of the daily volume-weighted average prices (“VWAPs”) of the Company’s common stock over any 20 consecutive trading days reaches the share price hurdle (the hurdles range from JPY 2,200 to JPY 10,000) for that tranche. Key terms of the Rights the 36th Series Stock Acquisition Rights 1. Participants 3 Executive Officers of the Company 2. Total number of Rights 66,500 Rights 3. Class and number of underlying shares 6,650,000 shares of common stock (100 shares per Right) 4. Consideration for the Rights No cash payment is required in exchange for the Rights 5. Exercise price 1 yen per share 6. Allotment date November 20, 2026 7. Performance period Five years from the allotment date 8. Exercise period From the third anniversary of the allotment date to the tenth anniversary of the allotment date Notes The Rights are performance-based compensation granted in consideration for the performance of duties. The Company will recognize a share-based payment expense over the applicable period for each tranche in accordance with IFRS 2, Share- based Payment. The impact on the Company's consolidated financial results for the year ending December 31, 2026 is currently under review. Entry into an Exclusive License Agreement for Fabry Disease Therapy Candidate Lucerastat in Japan and selected Asia pacific markets On October 28, 2026, the Group announced that it had exercised its option to in-license lucerastat, a drug candidate for the treatment of Fabry disease, and entered into a co-development and commercialization agreement with Idorsia Pharmaceuticals Ltd. (“Idorsia”). Under the agreement, the Group holds exclusive rights to develop and commercialize lucerastat in Japan, South Korea, Taiwan and certain other Asia-Pacific markets (excluding China). The Group will pay Idorsia an upfront payment of CHF 7 million and collaborate on a global Phase 3 clinical development program aimed at supporting regulatory filings as early as 2029.