Annual report
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Advancing Orphan Oncology ANNUAL REPORT 2025
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Ascelia Pharma Annual Report 2025 2 CONTENTS CORPORATE OVERVIEW ASCELIA PHARMA AT A GLANCE 3 CEO STATEMENT 4 KEY EVENTS IN 2025 6 OUR VISION AND VALUES 7 OUR PIPELINE PRODUCTS OUR PIPELINE 8 ORVIGLANCE ® 9 ONCORAL 22 STATUTORY REPORTS SHAREHOLDER INFORMATION 31 SUSTAINABILITY 33 DIRECTORS’ REPORT 35 RISK AND RISK MANAGEMENT 37 CORPORATE GOVERNANCE REPORT 41 BOARD OF DIRECTORS 48 MANAGEMENT 50 FINANCIAL INFORMATION FINANCIAL STATEMENTS 52 NOTES 60 DECLARATION AND SIGNATURES 86 AUDITOR’S REPORT 87 GLOSSARY 91 ALTERNATIVE PERFORMANCE MEASURES 92 TRANSFORMATIVE 2026 Expected FDA approval of Orviglance® and expected commercial partner driving the launch of Orviglance® in the US ONCORAL OPPORTUNITIES Daily oral chemotherapy ready for Phase 2 p.22-30 FINANCIAL CALENDAR 4 May 2026 Annual General Meeting 2026 12 May 2026 Interim report Q1 2026 (Jan-Mar) 20 August 2026 Half-year report H1 2026 (Jan-Jun) 5 November 2026 Interim report Q3 2026 (Jan-Sep) 11 February 2027 Full-year report 2026 (Jan-Dec) ATTRACTIVE ORVIGLANCE MARKET Orviglance addresses an annual USD 800 million market to visualize liver lesions in patients with severe kidney impairment p.18 ORVIGLANCE PROGRESS NDA submitted to FDA and formal acceptance from FDA to review the NDA p.15-17 FDA’s acceptance of the Orviglance NDA for review rep- resents yet another significant step towards making Orviglance available to patients” “ p.5
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Ascelia Pharma Annual Report 2025 ABOUT US About Ascelia Pharma Ascelia Pharma is a biotech company focused on orphan oncology. We develop and commercialize novel drugs that address unmet medical needs and have a clear development and market pathway. The company has two drug candidates – Orviglance and Oncoral – in development. Ascelia Pharma has global head- quarters in Malmö, Sweden, and is listed on Nasdaq Stockholm (ticker: ACE). About Orviglance Orviglance (manganese chloride tetrahydrate) is a novel oral contrast agent for MR-imaging developed to improve the detection and visualization of focal liver lesions (including liver metastases and primary tumors) in patients with reduced kidney function. These patients are at risk of serious side effects from the cur- rently available class of gadolinium-based contrast agents. Orviglance, has been granted an Orphan Drug Designation by the US Food and Drug Administration (FDA). A clinical program of nine studies, including the pivotal global Phase 3 study SPARKLE, has successfully been completed with strong and consistent ef- ficacy and safety results. The New Drug Application (NDA) has been submitted to the FDA. About Oncoral Oncoral is a novel irinotecan chemotherapy tablet developed initially for the treatment of gastric cancer. Irinotecan chemotherapy has an established potent anti-tumor effect. Oncoral is a daily tablet with the potential to offer better pa- tient outcomes with improved safety following the daily dosing at home com- pared to intravenous high-dose infusions at the hospital. Following successful Phase 1 results, Oncoral is now prepared for Phase 2 clinical development. For more information, please visit http://www.ascelia.com. Advancing Orphan Oncology We identify, develop and commercialize novel drugs that address unmet needs of people with rare cancer conditions 3 Corporate overview
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Ascelia Pharma Annual Report 2025 CEO STATEMENT Following the Orviglance New Drug Application (NDA) submission in September 2025, we continued to make solid progress in Q4. In November, we received the US Food and Drug Administration (FDA) Day 74 letter, which formally accepted our NDA for review, aiming for a decision by 3 July 2026 as the PDUFA date. This milestone underscores the quality and completeness of our submission and marks a critical step toward making Orviglance available to patients with severe kidney impairment who need a contrast enhanced liver MRI procedure. We look forward to continuing to work with the FDA throughout the review process. The NDA submission is based on the successful completion of the development program, which includes nine clinical studies with consistent positive efficacy and safety results. In our Phase 3 study, SPARKLE, Orviglance significantly improved visualization of focal liver lesions in patients with impaired kidney function, meeting the primary endpoint with statistical significance for all three readers (<0.001). We have a cash runway into Q4 2026, well beyond the expected FDA approval date of Orviglance. This follows a directed share issue in September 2025, raising SEK 30 million before costs, which strengthened our balance sheet based on the inbound interest expressed by investors. Our partnering process continues to progress, and multiple potential partners demonstrate strong strategic interest. With the regulatory timeline now firmly established, these dialogues have gained additional momentum and clarity, and we remain well positioned to secure a partnering agreement. Orviglance NDA submitted. The NDA for Orviglance was sub - mitted to the FDA early September 2025. Ascelia Pharma seeks marketing approval for Orviglance as liver magnetic resonance imaging (MRI) contrast agent for patients with severe kidney impair- ment. These patients have the highest risk of developing the serious and potentially fatal condition Nephrogenic Systemic Fibrosis (NSF) after exposure to the gadolinium-based contrast agents normally used today. Regulatory bodies have issued warnings for the use of these agents in this vulnerable patient population and Orviglance has been granted an Orphan Drug Designation by the FDA. Mid November 2025, the FDA formally accepted the NDA filing in their ‘day 74 letter’. The expected date for their decision, i.e. PDUFA date, is 3 July 2026, as a standard 10 months review. Completion of Orviglance clinical development. The NDA submission is based on a successfully completed development program, including nine clinical studies with consistent positive efficacy and safety results. The program includes nine clinical studies with a total of 286 patients and healthy volunteers. 85 patients with known or suspected focal liver lesions and severely impaired kidney function were included in the global multi-cen - ter pivotal Phase 3 study, SPARKLE. In 2024, the SPARKLE study successfully met the primary end - point, demonstrating that Orviglance significantly improved vi - sualization of focal liver lesions compared to une nhanced MRI. The positive results had an acceptable level of variability and high statistical significance (P values <0.001) for all three in - dependent readers, who scored study images according to the FDA agreed methodology. Common adverse events in the vulnerable patient population were in line with previous studies, such as mild- to moderate nausea. No serious adverse drug reactions were observed. Orviglance aims to give patients with impaired kidney function access to safe and effective liver imaging and the strong results from the clinical studies reinforce our confidence in the mar - ket potential and path to market for Orviglance. We are now focused on bringing Orviglan ce successfully through t he FDA review process. 4 Corporate overview
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Ascelia Pharma Annual Report 2025 Recognition in the scientific community. We are pleased to see the acceptances of Orviglance data for presentation at major scientific conferences. In total four oral presentations and six abstract presentations have been accepted since the announc e- ment of our Phase 3 results, und erscoring the interest in the medical and scientific community for an alternative to gadolini - um-based contrast agents. Orviglance data and SPARKLE results have been presented at the Radiological Society of North America conference (RSNA) in November 2024 and 2025. Other key conferences have also wel- comed SPARKLE data, such as the American Society of Nephrol- ogy Kidney Week, Society of Abdominal Radiology (SAR), and European Society of Gastrointestinal and Abdominal Radiology (ESGAR). In addition, a burden of illness real-world data analysis was presented at the Professional Society for Health Economics and Outcomes Research (ISPOR) Conference. In April 2025, an article in Investigative Radiology was published featuring Orvig - lance in a Phase 2 comparison study to unenhanced MRI and to gadolinium. The publication presents data utilizing the same independent reader methodology and approach as used in SPARKLE. Strategy to commercialize with partners. Orviglance addresses a well-defined unmet medical need representing an annual glob - al addressable market of USD 800 million, with 100,000 annual procedures in the target patient population in the US alone. Our strategy is to launch Orviglance with commercialization part - ners. This str ategy enables us to leverage established commer - cialization capabilities of a partner with a low investment from Ascelia Pharma required for launch. A focused, ambitious launch plan, built on advanced market insights, is in place. ”We have a cash runway into Q4 2026, well beyond the expected FDA approval date of Orviglance 3 July 2026”. Orviglance is an attractive commercial opportunity for a partner. We continue to advance the dialogues with potential commer - cialization partners to make Orviglance available to patients who need high-quality liver imaging without the safety risks associ - ated with gadolinium. With the regulatory timeline now firmly established, these dialogues have gained additional momentum and clarity and we remain well positioned to secure a partnering agreement. Financial position. We have a cash runway into Q4 2026, well beyond the expected FDA approval date of Orviglance. This fol - lows our strengthening of the balance sheet during the year. In April 2025, the TO 1 warrants were exercised. Ascelia Pharma received gross proceeds of SEK 43 million. In connection with the warrant exercise a loan of SEK 20 million was repaid. In September, Fenja converted all outstanding convertibles of SEK 7.5 million. Later that month, we successfully completed a di - rected share issue raising SEK 30 million before costs, based on the inbound interest expressed by investors. A transformative 2026 for Ascelia Pharma. With the Orviglance NDA submission, we are excited to advance Orviglance through the FDA review process. With an expected FDA approval and commercial partner driving the launch of Orviglance in the US, we expect 2026 to be truly transformative for Ascelia Pharma. We look forward to reaching these key milestones in 2026 and to continuing our journey to advance and grow Ascelia Pharma. Magnus Corfitzen CEO 5 Corporate overview
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Ascelia Pharma Annual Report 2025 JANUARY Three scientific ab - stracts with SPARKLE phase 3 data accepted for presentation at the ESGAR MARCH Positive outcomes of FDA meeting and confirmed plan to submit the NDA for Orviglance mid-2025 NOVEMBER New patent applica - tion for Orviglance filed APRIL Gross proceeds of SEK 43 million received from exercise of warrants series TO 1 SEPTEMBER Conversion of all outstanding convertibles of SEK 7.5 Million SEPTEMBER Submission of NDA for Orviglance to the FDA NOVEMBER Management chang- es to support future growth SEPTEMBER Directed share issue of approximately SEK 30 million APRIL Publication of Orviglance Study in the journal Investigative Radiology NOVEMBER FDA accepted Orviglance New Drug Application for review FEBRUARY EGM resolved to implement an employee stock option program APRIL Study on Orviglance target patients accepted for presentation at the ISPOR 2025 conference KEY EVENTS IN 2025 6 Corporate overview
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Ascelia Pharma Annual Report 2025 ADVANCING ORPHAN ONCOLOGY Building Ascelia Pharma and building value ■ Orviglance market leader ■ Oncoral Phase 3 ■ Pipeline development ■ Pipeline further expanded ■ Orviglance revenue ■ Oncoral Phase 2 ■ Pipeline expansion ESTABLISHED MARKET POSITION IN ORPHAN ONCOLOGY PRODUCT LAUNCH AND EXPANDING PIPELINE ADVANCING PIPELINE AND COMMERCIAL CAPABILITIES Our headquarter is in Malmö, Sweden, and our US base is in New Jersey. Ascelia Pharma shares are listed on NASDAQ Stockholm (ticker: ACE). To be a leader in identifying, developing and commercializing novel drugs that address unmet needs of people with rare cancer conditions. FOCUS We are devoted to improving the lives of patients and creating values for our stakeholders. COURAGE We work tirelessly and follow our convictions even when it means changing status quo. INTEGRITY We build powerful relationships with mutual respect and adhere to the high ethical standards of our industry. OUR VALUES OUR VISION OUR BASE ■ Orviglance in registration phase ■ Oncoral Phase 2 ready 7 Corporate overview
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Ascelia Pharma Annual Report 2025 8 Phase 2 results OUR PIPELINE Market launch ORVIGLANCE Diagnostic drug for liver MRI in registration phase Orviglance is our first-in-class non-gadolinium diagnostic drug (contrast agent) to be used for magnetic resonance imaging (MRI) of the liver. Orviglance is developed to improve the visualiza - tion of focal liver lesions (liver metastases and primary liver cancer) in patients with impaired kidney function at risk of severe side-effects from the gadolinium contrast agents currently on the market. ■ First-in-class manganese-based diagnostic drug with FDA Orphan Drug Designation ■ USD 800 million global annual addressable market ■ Clinical development completed, incl. pivotal Phase 3, with consistent positive efficacy and safety data from nine clinical studies with 286 patients and healthy volunteers ■ NDA submitted to the FDA ONCORAL Daily tablet chemotherapy ready for Phase 2 Oncoral is our novel oral irinotecan chemotherapy tablet developed initially for the treatment of gas- tric cancer. The potential anti-tumor effect of irinotecan is well established. ■ Oral daily dosing of irinotecan chemotherapy ■ Potential for better efficacy and safety by frequent low dosing ■ Ready for Phase 2 in gastric cancer; potential to expand into other cancers Orviglance Liver MRI contrast agent for patients with severe kidney impairment Market approval Phase 2 ready Oncoral Gastric cancer treatment with expansion potential to other cancer types 8 Corporate overview
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Ascelia Pharma Annual Report 2025 ORVIGLANCE Orphan liver diagnostic imaging drug Manganese-based MR-imaging drug with Orphan Drug Designation by FDA USD 800 million global annual addressable market Clinical development completed with 9 studies and strong phase 3 result NDA submitted to the FDA Commercialization with a partner 9
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Ascelia Pharma Annual Report 2025 Contrast agents improve the MRI-scans. To enhance the quality of the MRI, patients are given contrast agents prior to the procedure. A contrast agent is a substance that make abnor - malities, such as metastases, appear clearer in the image. This occurs thanks to the special magnetic properties of the chemical element in the contrast agent. Magnetic Resonance Imaging (MRI) is considered the pre - ferred imaging modality for both initial cancer disease staging and monitoring of liver metastases. MRI is an imaging method that uses non-ionizing radiation to create useful diagnostic im - ages. MRI scans use radio waves and strong magnets, and unlike CT and PET, MRI doesn’t gives ionizing radiation to the patient. MANAGING CANCER IN THE LIVER DRIVES OUTCOMES One of the reasons that cancer is a serious disease is its ability to spread to other parts of the body than the location of the primary tumor (i.e. where the first tumor formed). When cancer cells spread to distant lymph nodes, tissues or organs, it is called metastatic cancer. Cancer can spread to any part of the body, but certain areas such as the liver are more prone to metastases than others. The liver is the second most common organ for metastasis after the lymph nodes. Up to 50-70 percent of patients with colorectal cancer develop liver metastases, and liver metastases seem to play a significant role in the cause of death of patients who die with breast or colorectal cancer. Correct diagnosis is critical for management of patients with liver metastases. For this, imaging plays an essential role in both initial staging, pre-operative planning, monitoring of treatment effect and surveillance for recurrence of disease. If liver metas - tases are accurately and timely detected and deemed eligible for surgical removal, the survival rate can be significantly improved, and sometimes full recovery is possible. For example, the five- year overall survival rate for patients undergoing resection for colorectal liver metastases has been reported to be 46 percent compared to only 6 percent for patients who were not subjected to surgical treatment of their liver metastases 2. DETECT AND LOCALIZE MRI is the most sensitive method for detection of liver cancer or metastases1 Contrast agents are given to maximize accuracy of liver metastasis detection in MRI TREAT Treatment options for liver metastases are: Q Surgical resection (only if detected early) Q Localized therapies (ablation embolisation, radiation) Q Drug therapy 1) Albiin N et al. Manganese chloride tetrahydrate (CMC-001) enhanced liver MRI: evaluation of efficacy and safety in healthy volunteers. MAGMA. Mar 2012 2) Clinical Colorectal Cancer, Vol. 15, No. 4, Dec 2016, e183-192 IMPROVE SURVIVAL Accurate, early detection of liver metastases significantly impact treatment decisions and patient survival Example: Colorectal cancer 2 The 5-year overall survival rate increased from 6 percent to 46 percent in patients with colorectal cancer, when liver metastases were resected surgically compared with patients who did not undergo surgery 10 Our pipeline products / ORVIGLANCE®
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Ascelia Pharma Annual Report 2025 USING MANGANESE AVOIDS KEY RISK FROM GADOLINIUM CONTRAST AGENTS Gadolinium-based contrast agents on the market are not for everyone. Patients with severely impaired kidney function are at risk of severe side effects from using the contrast agents currently used. The absolute majority of contrast agents used today are based on the heavy metal gadolinium and for patients with impaired kidney function these contrast agents increase the risk of Nephrogenic Systemic Fibrosis (NSF). NSF is a rare, but serious and life-threatening condition. It is characterized by inflammation and fibrosis (connective tissue sclerosis) in various tissues, such as the skin, joints, muscles, diaphragm, and pulmo - nary vessels. The condition can deteriorate quickly, and even lead to death due to failure of several different organ systems. Black-box warnings. Current gadolinium-based contrast agents carry black box warnings for patients with severely impaired kid - neys. Regulatory agencies such as FDA and EMA have published guidelines for the use of gadolinium-based-contrast agents (GBCAs) in MRI with restrictions on the use of GBCAs on pa - tients with severely reduced kidney function. Orviglance - free from gadolinium. Orviglance is based on man- ganese and is expected to be the first gadolinium-free contrast agent for liver imaging. For patients with severely impaired kid - Contrast agents assist in diagnosis and staging of cancer lesions and help guide treatment deci- sions and planning. MRI with contrast is a very sensitive and useful imaging method to assess and select patients eligible for metastatic resection or locally directed non-surgical treatment. MRI with contrast is also used to determine if a given treatment has been effective and for sur- veillance of possible recurrence of disease. ney function, the preferred imaging choice today is an MRI-scan without a contrast agent. This reduces the ability to find and treat liver metastases and consequently patients’ chances of survival. Our goal is to establish Orviglance as the standard of care contrast agent for patients with severely impaired kidneys. Gadolinium concerns also for patient with normal kidney function. In addition to the association with NSF, there have been recent reports of accumulation of gadolinium in the brain. Although the side-effects of brain accumulation of gadolinium are yet to be determined, the EMA suspended three gadolini - um-based products in November 2017. In December 2017, the FDA warned that gadolinium-based contrast agents (GBCAs) are retained in the body. WARNING: NEPHROGENIC SYSTEMIC FIBROSIS (NSF) See full prescribing information for complete boxed warning. Gadolinium-based contrast agents (GBCAs) increase the risk for NSF among patients with impaired elimination of the drugs. Avoid use of GBCAs in these patients unless the diagnostic information is essential and not available with non-contrasted MRI or other modalities. • The risk of NSF appears to highest among patients with: • Chronic, severe kidney disease (GFR < 30 mL/min/1.73m2), or • Acute kidney injury. • Screen patients for acute kidney injury and other conditions that may reduce renal function. • For patients at risk for chronically reduced renal function (for example, age > 60 years, hypertension, or diabetes), estimate the glomerular filtration rate (GFR) through laboratory testing (5.1) Orviglance aims to be the standard liver MRI contrast agent for patients with impaired kidney function 11 Our pipeline products / ORVIGLANCE®
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Ascelia Pharma Annual Report 2025 ORVIGLANCE ADDRESSES UNMET NEEDS FOR LIVER MRI IN PATIENTS WITH KIDNEY IMPAIRMENT Orviglance aims to be the standard of care liver MRI contrast agent for patients also suffering from severe kidney impairment. These patients are at risk of severe side-effects from using gadolinium-based contrast agents and would benefit from a non-gadolinium agent. Orviglance aims to fill this unmet medical need and become standard of care for this patient group. Suspected cancer in the liver Test kidney function Liver MRI scanMRI contrast agent decision MRI with gadolinium contrast agent Q All gadolinium contrast agents have regulatory Black Box warnings Q Risk of severe and potentially fatal side-effect (NSF - Nephrogenic Systemic Fibrosis) A) Healthy kidneys B) Poor kidneys Solution MRI with ORVIGLANCE 12 Our pipeline products / ORVIGLANCE®
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Ascelia Pharma Annual Report 2025 HOW ORVIGLANCE WORKS Orviglance is an orally administrated contrast agent developed for use with MRI of the liver. It is based on the chemical element manganese, which is a natural trace element in the body. After having been absorbed from the small intestine, the manganese is transported to the liver where it is taken up by and retained in the healthy liver cells. The high manganese uptake causes the normal liver tissue to appear bright on MR images. Metastases and tumor cells do not take up manganese to the same extent as normal liver tissue and therefore appear dark on MR images. With Orviglance, liver metastases are consequently easier to identify due to this con - trast effect. When administered orally, manganese is absorbed from the gastro intestinal tract, taken up in the liver and excreted via the bile. Due to the high pre-systemic first pass effect only minimal amounts reach the blood stream, so the systemic exposure is very low, reducing risks of systemic side effects. The mean manganese blood concentration values were within the normal range at all dose levels tested in the clinical studies with Orviglance. Improved visualization of focal liver lesions with Orviglance Improved visualization Improved visualization Improved detection Example from a patient with metastases in the SPARKLE Phase 3 study Without Orviglance (T1, Pre-contrast) With Orviglance (T1, post-contrast) Without Orviglance (T1, Pre-contrast) With Orviglance (T1, post-contrast) 13 Our pipeline products / ORVIGLANCE®
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Ascelia Pharma Annual Report 2025 ORVIGLANCE PROFILE The strong contrast effect with Orviglance observed in nine clinical studies makes it a good candidate as liver contrast agent for patients where the use of gadolinium-based contrast agents may be medically inadvisable or cannot be administered. Orviglance has the potential to offer a significantly better alter - native than unenhanced MRI (i.e. MRI with no medical contrast agent). The patient segment for Orviglance comprises mainly patients with severe kidney impairment who have an estimated glomerular filtration rate (eGFR) below 30 mL/min/1.73 m 2, i.e. patients with chronic kidney disease stages 4 and 5 as well as patients with acute kidney injury. There is a large medical need since there is no contrast agent not associated with risks related to gadolinium broadly available for patients with severe kidney impairment who require an MRI scan of the liver. We believe Orviglance has the potential to be - come the preferred liver MRI contrast agent for this group of patients. Potential to be the first and only broadly available non-gadolinium contrast agent for liver MRI Based on manganese – a natural trace element in nature and the body – with no risk of NSF Strong evidence for improved liver MRI enhancement from nine clinical studies Limited systemic exposur e and good safety profile Ease of use for patients and clinicians with oral administration and a flexible MRI procedure window following ingestion Key attributes of Orviglance 14 Our pipeline products / ORVIGLANCE®
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Ascelia Pharma Annual Report 2025 NDA SUPPORTED BY ROBUST CLINICAL PROGRAM Nine clinical studies complete the clinical program. The clinical program for Orviglance consists of nine studies – eight phase 1 and 2 studies and one pivotal phase 3 study, SPARKLE. Clinical development has successfully been completed with consistent positive efficacy and safety data from all clinical studies including in total 286 patients and healthy volunteers. Consistent strong efficacy readout and safety profile. Overall, the results from clinical studies showed that diagnostic quality scores were improved with Orviglance and provided strong support for Orviglance as an effective non-gadolinium liver MRI contrast agent.1 Across all studies, Orviglance was safe and well tolerated, Common adverse events in this vulnerable patient population were in line with previous studies, such as mild- to moderate nausea. No seri- ous adverse drug reactions were observed. A study investigated the effect on the MRI contrast performance in connection with food intake shortly before administration of Orviglance (food effect study). This food effect study demonstrat- ed that the MRI signal enhancement in the liver after a light meal was comparable to fasting conditions. Another study investigated safety and pharmacokinetics of Orviglance in patients with various degrees of liver impairment (hepatic impairment study), demonstrating that there was no renal excretion of Orviglance. Excretion is primarily occurring via the liver also in this subgroup of patients. A blinded re-read study, which included 178 persons (healthy volunteers and patients) confirmed that Orviglance significantly improves MRI performance compared to unenhanced MRI (with- out contrast). Importantly, Orviglance improved MRI performance in terms of lesion contrast (p-value <0.0001) and border delinea- tion (p-value <0.0001) when using a methodology similar to the phase 3 program. Further, compared to unen hanced MRI, 33 per- cent more lesions were detected with Orviglance-enhanced MRI. A re-read analysis was performed of MR images from a study that originally was designed to evaluate the diagnostic performance of Orviglance in comparison with a gadolinium-based contrast agent in 20 patients with known liver metastasis1. This re-read used the same evaluation method for the primary endpoint of lesion visual- ization as is used in the pivotal phase 3 study with image scoring by three blinded, independent radiologists. The results of this analysis confirmed that Orviglance-enhanced liver images were comparable to gadolinium-enhanced images and Orviglance provided superior liver MRI enhancement vs. unenhanced MRI (p-value <0.009). The pivotal Phase 3 study for Orviglance, SPARKLE successfully 1) These studies have been published in Thomsen HS et al, Acad Radiol 2004: 11: 630-636, Thomsen HS et al. Eur Radiol 2007, 17: 273-278, Rief M et al. Invest Radiol. 2010; 45: 565-71, Brismar TB et al.. Eur Radiol 2012; 22:633-41, Albiin N et al. MAGMA. 2012; 25:361-368, Shamsi,K., Oral presentation at ESGAR 2022: SSGI12-2, Lisbon, Portugal., Shamsi,K., Oral presentation at RSNA 2022: W7-SSGI15-2, Chicago, IL, United States. Hepatic impairment study ASC MAN-P017 has not yet been published. 15 Our pipeline products / ORVIGLANCE®
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Ascelia Pharma Annual Report 2025 met the primary endpoint and demonstrated that Orviglance sig - nificantly improved visualization of focal liver lesions compared to unenhanced MRI. The positive results were strong and con - clusive and had both an acceptable level of variability and high statistical significance (P values <0.001) for all three readers. Advanced to registration phase . The NDA for Orviglance was submitted to the FDA early September 2025. To reach this mile - stone, the Full Clinical Study Report from SPARKLE Phase 3 was completed in Q4 2024 and a pre-NDA meeting with the FDA was held in Q1 2025. The meeting provided clear and concrete guid - ance from the FDA for the finalization and submission of the NDA. Mid November 2025, the FDA formally accepted the NDA filing in their ‘day 74 letter’. The expected date for their decision, i.e. PDUFA date, is 3 July 2026, in accordance with a standard 10 months review. 1) Thomsen HS et al, Acad Radiol 2004: 11: 630-636 2) Thomsen HS et al. Eur Radiol 2007, 17: 273-278 3) Rief M et al. Invest Radiol. 2010; 45: 565-71 4) Brismar TBz et al.. Eur Radiol 2012; 22:633-41 5) Albiin N et al. MAGMA. 2012; 25:361-368 6) Brismar TB, et al., Invest Radiol 2025: Apr 8. doi: 10.1097/RLI.0000000000001184. Online ahead of print. 7) Study CMC-P005, primary objective to study of Orviglance for imaging of bile ducts (not published) 8) Results from Phase 1 and 2 and Food Effect and Hepatic Impairment Studies presented at RSNA and ESGAR conferences between 2022 and 2023 Superior efficacy compared to unenhanced imaging ■ Superior visualization of focal liver lesions ■ More lesions detected, in particular small lesions (< 1cm) ■ Consistent improvement of visualization across main patient groups ■ Efficacy further supported by secondary endpoints across studies 9 Nine studies with consistent positive efficacy and safety results1-8 286 patients and healthy volunteers Favorable safety profile ■ Robust non-clinical and clinical safety data with no concerning finings ■ Minimal systemic exposure of manganese ■ Mild GI-related adverse reactions most frequently reported ■ No serious drug-related reactions 16 Our pipeline products / ORVIGLANCE®
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Ascelia Pharma Annual Report 2025 SUCCESSFUL PHASE 3 STUDY Strong positive Phase 3 results ■ For unenhanced images, the median BD and LC scores ranged from 2.1 to 3.0 across readers ■ For Orviglance-enhanced images, the median BD and LC scores increased to 3.0 and 4.0 across readers ■ Increases were statistically significant (p<0.001) for all three readers The results of secondary endpoints generally support the superiority of Orviglance compared to unenhanced MRI, e.g. with at least one additional lesion detected in 40-52% of patients with Orviglance across readers. No analysis favours unenhanced MRI, including in patient sub-group analysis. Superiority vs. unenhanced was demonstrated both when unenhanced was compared to images with Orviglance combined with unenhanced and for images with Orviglance alone. Phase 3 primary endpoint met The pivotal Phase 3 study, SPARKLE, successfully met the pri - mary endpoint and demonstrated that Orviglance significantly improved the visualization of focal liver lesions compared to MRI without contrast, unenhanced MRI. The results for all three readers were highly statistically significant (P values <0.001). Common adverse events in this vulnerable patient population were in line with previous studies with Orviglance, such as mild- to moderate nausea. No serious adverse drug reactions were ob - served. Designed to support regulatory approval The pivotal Phase 3 study (SPARKLE) is a global multicentre study, which was completed with 85 enrolled patients with sus - pected or known focal liver lesions and severely impaired kidney function. The evaluation of the primary endpoint was carried out by three blinded, independent radiologists (readers), in accordance with regulatory guidance to the industry. The readers assessed the changes in visualization of liver lesions with and without Orviglance, as well as other secondary eff icacy endpoints. Following an unacceptably high intra-reader variability in the first image scoring by readers mid-2023, a new evaluation of the images with new readers was successfully completed with the announced positive headline results and acceptable variability in May 2024, in line with the planned timeline. The full Phase 3 program was designed in accordance with in - dustry standards, regulatory guidance for imaging agent devel - opment and based on discussions with regulatory agencies. The program aims to support a regulatory filing and approval for use of Orviglance for liver imaging in patients where the use of gad - olinium may be medically inadvisable. *Visualization assessed by 3 independent readers as the improvement of Lesion border delineation (LBD) and Lesion contrast (LC) on combined Orviglance-enhanced + unenhanced (CMRI) images compared to unenhanced (UMRI) images for all matched lesions, using a 4-point scale (from 1 (“poor”) to 4 (“excellent”)). Data presented as mean paired differences for matched lesions per patient for CMRI and UMRI with 95% Confidence Intervals. One-sided paired t-test (α=0.025).Total N=85, n=number of patients with matched lesions (per reader). -1,5 -1 -0,5 0 0,5 1 1,5 Mean paired difference in* LBD (●) and LC (●) score (CMRI - UMRI) Favors OrviglanceFavors unenhanced Reader 1 (n=61) p<0.001 Reader 2 (n=53) p<0.001 Reader 3 (n=61) p<0.001 17 Our pipeline products / ORVIGLANCE®
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Ascelia Pharma Annual Report 2025 ANNUAL ADDRESSABLE MARKET OF USD 800 MILLION 1) Ascelia Pharma market research on real-world volumes with DRG (2020) 2) Market access research and analyses with Charles River Associates (2020), Triangle (2022) and Trinity (2022), incl. 75 stakeholder and expert interactions. Final pricing and access strategy subject to Phase 3 data and payer evidence 3) Ascelia Pharma market research with Two Labs including 254 US HCPs (2022). Clear and attractive addressable market Orviglance addresses a well-defined unmet medical need representing an attractive commercial potential with an annual global addressable market of USD 800 million. This estimate is based on: ■ Patients with primary liver cancer or liver metastases and severe kidney impairment (~4 percent) ■ Actual imaging procedures (real-world data) 1 ■ Payer and expert input (+75 stakeholders) 2 US Europe Rest of World Japan Unique opportunity to address an unmet need Orviglance addresses an attractive market opportunity by of - fering contrast enhanced liver imaging for cancer patients with poor kidney function ■ not associated with gadolinium safety risks for patients with poor kidney function ■ addressing the increasing demand for alternatives to toxic gadolinium 90 percent of health care professionals are concerned by safety issues related to gadolinium contrast agents including NSF. In fact, according to market research, 16 percent of healthcare pro- viders have experienced gadolinium-induced NSF 3. In the US alone real-world data shows that 100,000 abdom - inal imaging procedures are performed every year in 50,000 patients that fall under the black-box warning for gadolinium contrast agents, which is about 4 percent of the cancer patient population undergoing abdominal imaging. FOCUSED, AMBITIOUS STRATEGY Ensure OPTIMAL LABEL, timely SUPPLY and launch READINESS Drive EARLY ADOPTION AND PREFERENCE by decision makers with focused efforts and a strong value proposition Partnering strategy The go-to-market strategy for Orviglance is to launch with com - mercialization partners. This approach enables Ascelia Pharma to leverage established commercialization capabilities and maintain a low investment requirement for launch. The focus of Ascelia Pharma is to create value by ensuring launch readiness and collaboration with a partner by preparing for optimal adoption by key stakeholders at launch. UNIQUE OPPORTUNITY Give people with cancer in the liver and poor kidney function ACCESS TO SAFE AND EFFECTIVE IMAGING to live healthier and longer lives CLEAR AMBITION Be the STANDARD OF CARE liver imaging choice for cancer patients with poor kidney function 18 Our pipeline products / ORVIGLANCE®
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Ascelia Pharma Annual Report 2025 STRONG RESULTS FROM MARKET RESEARCH Market research strengthens Orviglance’s value proposition. Through independent market research, Ascelia Pharma has gained key insights to understanding how decision makers evaluate the value proposition of Orviglance—what influences their choices, how they view the unmet need, and how they perceive the benefits of Orviglance. These insights are key to launch preparations because they help ensure engagement with the right influencers, with the right arguments at the right time. Insights indicate a clear need for GBCA alternatives. The inde- pendent research was conducted with more than 250 health - care professionals (radiologists, nephrologists and oncologists). The results clearly indicate the strong need for an effective and safe alternative to gadolinium based contrast agents (GBCAs) in liver imaging for patients with reduced kidney function. Safety is a key decision driver when using an MRI contrast agent. The most concerning side effect overall when using GBCAs is Nephrogenic Systemic Fibrosis (NSF), followed by allergies and gadolinium toxicity. 16 percent of the 254 respondents have ex - perienced a case of NSF – and more than half of these healthcare professionals have practiced medicine less than 15 years, mean - ing they were not in clinical practice before the FDA black box warning was issued in 2007. In line with their concerns, key decision makers say that they pre- fer to use MRI without contrast agent for patients with severe kidney impairment (eGFR below 30) or acute kidney injury (AKI). Around 80 percent of the time, they use either MRI without a con - trast agent or reduced dose MRI for these vulnerable patients. Positive market signals for Orviglance. Respondents also say that patients are generally aware of the risks associated with GBCA, particularly patients with poor kidney function, regard - less of whether they have had an MRI before. When presented the product profile of Orviglance, 84 percent of respondents say they are likely to or definitely will use Orviglance for the target pa - tient population. These results are consistent with findings from quantitative research completed in 2018. The positive reactions to Orviglance from the research partici - pants are highly encouraging and indicate strong interest in an alternative for patients whose current diagnostic options remain sub optimal. The insights from the survey will also guide engage- ment with key stakeholders in launch preparations. 1) As part of the preparations for Orviglance launch, Ascelia Pharma conducted primary market research in the US with Two Labs. The research covered 16 interviews and a survey among 254 HCPs, including 154 radiologists, 50 nephrologists and 50 oncologists. The research was conducted end 2021/early 2022. 84 percent of US healthcare professionals likely to use Orviglance imaging agent in target population according to market research. Market research with 254 healthcare professionals in the US (radiologists, oncologists and nephrologists)1 0 10 20 30 40 50 60 70 80 0 10 20 30 40 50 60 70 80 Conclusions MRI without or with reduced dose contrast is strongly preferred for patients with severe kidney impair- ment or acute kidney injury. MRI with contrast MRI with reduced dose of contrast MRI without contrast Percentage of responses 84% Likely to Definitely (5-7 of 7) 16% Not likely to Somewhat likely (1-4 of 7) Likelihood of using Orviglance for target patients 22% 16% 62% 14% 11% 75% 78% 86% Severe kidney impairment (eGFR 15-29) Acute kidney injury Healthcare professionals prefer MRI without contrast agent for patients with impaired kidneys 19 Our pipeline products / ORVIGLANCE®
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Ascelia Pharma Annual Report 2025 Risks for kidney patients impact clinical decisions. For patients with impaired kidney function, healthcare professionals, payers and other key decision makers in radiology are well aware of the regulatory black-box warning of the use of gadolinium-based contrast agents (GBCAs). In fact, market research shows that in the US almost 90 percent of hospitals have guidelines for the use of GBCAs1 and more than 90 percent of healthcare profes - sionals think the risk of nephrogenic system fibrosis (NSF) is a concern when using GBCAs 2. Overall, insights and market research tell us that the safety con - cerns related to the use of gadolinium impact clinical decisions making and that the preferred imaging choice for patients where the use of gadolinium is medically inadvisable is an MRI without contrast, or with a non-liver specific lower-risk GBCA – both reducing the ability of clinicians to find and treat focal liver le - sions, ultimately impacting the patient’s treatment and chance of survival. Orviglance aims to address this need for a liver imaging option for cancer patients with impaired kidney function, where pa - tients, caretakers and healthcare providers are free from con - cern or uncertainty of gadolinium-related safety risks. NSF and other gadolinium toxicities are the most important concerns of GBCAs 2 Beyond the safety concerns for patients with kidney disease, there is growing attention to other concerns related to the use of gadolinium. Unknown safety impact of gadolinium retention in the brain and other organs. Beyond the risk of NSF in kidney impaired pa- tients, gadolinium is well known to be retained in the brain and other organs in patients, regardless of kidney function. Scrutiny over the possible short- and long-term safety risks of gadolinium retention is a key concern of the scientific and medical commu - nities, as well as regulators such as the FDA. And many ques - tions remain open. For example, a group of researchers write ‘Recently studies have confirmed gadolinium accumulation in human brain fol - lowing repeated gadolinium-based contrast agent administra - tions, regardless of an intact blood-brain barrier or normal renal function. Linear chelates GBCAs can result in more gadolinium deposition than macrocyclic chelates GBCAs. However, the im - pact of the retained gadolinium in the brain remains unknown, which needs large prospective studies to clarify in the future. It is recommended to take caution when using macrocyclic che - lates GBCAs and keep as low doses as possible for reducing gad- olinium accumulation in brain.’ 3 MOMENTUM FOR AN ALTERNATIVE TO GADOLINIUM The attention to issues related to gadolinium exposure and the need for safer alternatives is growing. N = 254, oncologist, nephrologist, and radiologist responses. Q: Which side effects or adverse events are you most concerned about when using contrast agents (shown as percent split of highest concern). Other Brain deposition Kidney injury Gadolinium toxicity Allergies NSF Gadolinium toxcities 5% 5% 20% 20% 43% 7% 1) Market research for Ascelia Pharma by Back Bay in 2019, including surveys with 84 US radiologists, 2) Market research for Ascelia Pharma conducted by Two Labs Pharma Services in Q4 2021/Q1 2022, including 16 interviews and 254 surveys with US oncologist, nephrolo - gist, and radiologist responses 3) Bang G. Gadolinium Deposition in Brain: Current Scientific Evidence and Future Perspectives. Mol. Neurosci., 20 September 2018. 20 Our pipeline products / ORVIGLANCE®
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Ascelia Pharma Annual Report 2025 1) McDonald R, et al Symptoms Associated with Gadolinium Exposure (SAGE): A Suggested Term. Radiology 2022 302:2, 270-273. 2) FDA.gov: ‘FDA warns that gadolinium-based contrast agents (GBCAs) are retained in the body; requires new class warnings’, 20 Jan 2022. 3) ODYSSEY Study. https://clinicaltrials.gov/ct2/show/NCT04373564 4) For example: Brünjes R. et al. Anthropogenic gadolinium in freshwater and drinking water systems, Water Research, Volume 182, 2020. Macke M. et al. Fast and automated monitoring of gadolinium-based contrast agents in surface waters. Water Res. 2021 Dec 1;207. At the end of 2021, members of the American College of Radiology (ACR) recommended a new term for symptom reported after GBCA exposure —Symptoms Associated with Gadolinium Exposure, or SAGE – in order to help researchers and healthcare providers describe and standardize reporting of these symptoms.1 In 2022, the FDA reminded healthcare providers that safety in - formation should be given to patients before receiving GBCA injections. The agency states ‘…we are requiring several actions to alert healthcare professionals and patients about gadolinium retention after an MRI using a GBCA. These include requiring a patient Medication Guide that every patient will be asked to read before receiving a GBCA. We are also requiring manufac - turers of GBCAs to conduct human and animal studies to fur - ther assess the safety of these agents’ 2. With this in mind, the FDA required gadolinium manufactures to conduct a long-term study to understand the possible effects of GBCA administra - tion on body movement and mental skills when given to patients multiple times over 5 years. 3 Increasing environmental scrutiny. It is also well known that gadolinium is excreted via the kidneys in urine. Because it is dif - ficult to remove in our sewage systems, it is discharged into the environment and into our drinking water. Gadolinium concen - trations in rivers and drinking water is found to be higher close to larger cities and densely populated areas – and gadolinium is even found in soft drinks. 4 In short, regulators, researchers and the medical community are acting on the uncertainties and unknown safety risks of the use of gadolinium and there is a growing urgency to find a viable alternative to the growing use of gadolinium – an alternative that is neither associated with the short- and long-term safety con - cerns of gadolinium for patients, nor with the unknown effects of gadolinium in our environment and drinking water. The indus - try is responding with innovation focused on safer and smaller dose gadolinium alternatives, as well as non-gadolinium contrast agents. For Ascelia Pharma, the momentum for an alternative to gado - linium, for Orviglance, is getting better and better. Orviglance is the only registration phase non-gadolinium MRI contrast agent in development and is expected to be first-in-class to lead a more sustainable future with less gadolinium. 21 Our pipeline products / ORVIGLANCE®
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Ascelia Pharma Annual Report 2025 ONCORAL Daily oral chemotherapy ready for Phase 2 Patented daily tablet chemotherapy formulation Potential for better efficacy and safety Phase 2 in gastric cancer; potential to expand into other solid cancer forms 22
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Ascelia Pharma Annual Report 2025 UNMET NEEDS IN GASTRIC CANCER Gastric cancer is a serious disease. Gastric cancer is the third most frequent cause of cancer mortality. The five-year survival rate in the US and Europe is only 20 percent. In these regions 80-90 percent of the gastric cancer patients are diagnosed at an advanced stage and/or have disease relapse within five years. When diagnosed at a late stage, gastric cancer is typically un-re - sectable and/or metastatic. The incidence rate is higher in Asia, as exemplified by Japan where the incidence rate is five times that of the US and Europe. USD 3+ billion annual market. The gastric cancer drug market is growing rapidly and is expected to reach USD 4 billion by 2029 according to the database of GlobalData. This growth is fueled by several factors, including an increase in the overall incidence as well as increase in treatment rates and extended treatment duration. Irinotecan is an established and effective chemotherapy. The current first-line treatment of recurrent or advanced gastric cancer includes chemotherapy, generally as a combination of two or three drugs. Chemotherapeutic drugs (cytotoxics) stop the growth of cancer cells, either by killing the cells or by stop - ping them from dividing. Large unmet need to develop novel therapies Gastric cancer is a disease in which cancer cells form in the lining of the stomach. Almost all gastric cancers are adenocarcinomas, a cancer that begins in glandular tissue. Gastric cancer is often in an advanced stage when it is diagnosed. At this stage, it can often be treated, but rarely cured. There are several chemotherapeutic drugs on the market, and one well-established and effective molecule is irinotecan. It has a proven anti-tumor effect and is approved for combination use in several solid cancer indications. In the US and Europe, irinotecan is currently mainly used for treating metastasized colorectal and pancreatic cancer. Although irinotecan is currently not approved for treating gastric cancer in the US and in Europe, there is off-label clini - cal use. It is also recognized in clinical guidelines (ESMO, ASCO, NCCN) in monotherapeutic or combination treatment regimens for advanced gastric cancer. In Japan, irinotecan is approved for the treatment of metastatic gastric cancer. Untapped market for oral formulations of irinotecan. Today, irinotecan is only available as high-dose intravenous infusion. Ascelia Pharma sees a significant and unmet medical need for new patient-friendly treatments that improve the life expectancy and quality of life for patients with gastric cancer. Oncoral - an oral chemotherapy. Oncoral is a daily irinotecan tablet with the potential to offer better efficacy with improved safety following the daily dosing at home compared to intrave - nous high-dose infusions at the hospital. Q 1 million new cases every year Q 3rd most common cause of cancer death Q Median survival less than one year Q Need for better and more optimal treatment options for late stage therapy 23 Our pipeline products / ONCORAL
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Ascelia Pharma Annual Report 2025 TODAY – Intravenous bolus infusionsONCORAL - a novel formulation of irinotecan POTENTIAL BENEFITS OF DAILY DOSING Oral, daily dosingIntravenous New cancer indications Approved cancer indications TOMORROW – Oncoral oral daily dosing Gastric cancer ONCORAL Colorectal cancer Pancreatic cance r Proven anti-cancer effect. The active substance in Oncoral is irinotecan, which has an established and proven effect in killing cancer cells. Irinotecan is a so-called antineoplastic agent that after metabolic activation inhibits the enzyme topoisomerase 1, thereby inducing cancer cell death via the prevention of their DNA replica tion. Irinotecan is converted by carboxylesterases, primarily in the liver, to the active metabolite SN-38 which is 100–1,000 more potent than irinotecan in killing tumor cells. Oncoral is a novel daily irinotecan chemotherapy in development. Irinotecan chemotherapy has an established potent anti-tumor effect. Oncoral is a daily irinotecan tablet with the potential to offer better efficacy with improved safety following the daily dosing at home compared to intravenous high-dose infusions at the hospital. Potential to be the first oral version of irinotecan. Oncoral is a new patented oral tablet formulation of irinotecan, which enables a reliable release and efficient absorption of irinotecan from the gastro intestinal tract after oral administration. With oral administration, irinotecan can be given with low daily doses. This is very different from the current standard of giving a high intravenous doses every third week. All-oral chemo combination. Oncoral has the potential to be combined with other chemotherapies and targeted cancer drugs and enable an all oral combination chemotherapy option with improved clinical outcomes. Potential to expand Oncoral into other solid tumor indications Infrequent high-dose IV irinotecan Q Gastrointestinal and hematological side effects Q Dose limiting toxicity: 30 percent severe or life- threatening (grade 3 or 4) Potential – Frequent low-dose irinotecan Q Improved efficacy driven by pharmacokinetic profile Q Improved tolerability due to lower peak exposure with less severe side effects and manageable toxicity with flexible dosing 24 Our pipeline products / ONCORAL
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Ascelia Pharma Annual Report 2025 ONCORAL PHASE 1: ENCOURAGING RESULTS Frequent (metronomic) low-dose irinotecan Q Several studies show improved tolerability 2,3 Q Daily dosing – adjust quickly if acute toxicity Oncoral Phase 1 results Q Study of 39 patients with metastatic or unresectable solid tumors Q Study performed at Herlev hospital, Denmark Q Safety: Oncoral was well tolerated, no unexpected side-effects Hematological toxicities mild to moderate (grade 1 or 2) 4 Q Efficacy Stable disease even in patients previously treated with IV irinotecan 1) Camptosar prescribing information, 2) Furman et al 1999, 3) Perez et al 2004, and 4) Kumler et al 2018 Source: Simulation of Oncoral vs. IV Camptosar Plasma levels of irinotecan 0 5 10 15 20 25 30 35 0 5 10 15 20 25 30 35 40 Metronomic low dose on a daily basis High dose IV infusion every 3 weeks SN-38 concentration (ng/mL) Oncoral – potential to improve both efficacy and safety. Intravenous chemotherapy is often a trade-off between desired treatment effect and tolerability for the patient. With Oncoral as a daily irinotecan tablet there is a potential to improve both effica- cy and tolerability compared to intravenous (IV) administration. In addition, it may offer convenience for the patient and at the same time reduce hospital costs with home administration. Efficacy. The potential to improve efficacy is based on a fivefold higher conversion rate of irinotecan to the cytotoxic active me - tabolite SN-38 when dosed orally compared to an IV infusion. In addition, the principle of frequent, low daily dosing, also called met- ronomic dosing, may optimize the exposure of SN-38 and maximize the anti-tumor effect. Several studies provide proof of concept for metronomic dosing, including improved patient outcomes. Safety. Conventional IV bolus administration of irinotecan is as - sociated with toxicity. Most patients experience gastrointestinal and hematological side effects, of which approximately 30 per - cent are severe or life-threatening (grade 3 or 4, ref: Camptosar® prescribing information). Frequent low dosing, avoiding high peak plasma levels, may reduce toxicity and complications compared to high-dose IV infusions. Oral daily administration also brings the opportunity to adjust dosing quickly in case of acute toxicity. Infrequent high-dose IV irinotecan Gastrointestinal and hematological side effects, ~30 percent severe or life-threat - ening (grade 3 or 4)1 25 Our pipeline products / ONCORAL
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Ascelia Pharma Annual Report 2025 IMPROVING EFFICACY BY FREQUENT LOW DOSING There are a number of non-clinical and clinical studies that provide proof-of-concept for metro- nomic/frequent low dosing of irinotecan, including improved patient outcomes. The study below in patients with metastatic refractory breast cancer illustrates improvement in overall survival by frequent low dosing. Overall survival improved from 20 percent with dosing every third week with high dose to 32 percent with weekly dosing with a slightly lower dose1. With Oncoral as a tablet, it will be possible with daily dosing. OVERALL SURVIVAL: STUDY IN PATIENTS WITH METASTATIC REFRACTORY BREAST CANCER, N=103 1) Perez et al. J Clin Oncol 2004: Randomized Phase II Study of Two Irinotecan Schedules for Patients With Metastatic Breast Cancer Refractory to an Anthracycline, a Taxane, or Both Progression - Free Survival Overall Survival Time in Months Irinotecan dosing every 3 weeks (IV) Progression - Free Survival Overall Survival Time in Months Irinotecan dosing weekly (IV) ~20% survival ~32% survival 26 Our pipeline products / ONCORAL
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Ascelia Pharma Annual Report 2025 POTENTIAL FOR SYNERGISTIC EFFECT Strong rationale for gastric cancer Q Large unmet medical need Q Clinical guidelines support efficacy of irinotecan Q Potential for Orphan Drug Designation Q Potential for synergistic effect between Lonsurf and irinotecan Days of treatment RTV Efficacy study in an animal model of gastric cancer 1 (Relative Tumor Volume, RTV) The planned Phase 2 study will address metastatic gastric cancer. In the study, Oncoral will be combined with Taiho Oncology’s oral drug Lonsurf ® that is used today for treating metastatic gastric cancer. The combination of irinotecan (the active substance in Oncoral) and Lonsurf has been tested in animal models, which showed that the combination almost stopped the tumor from growing and gave better results than administering them as monotherapies. IV irinotecan (CPT-11) Control arm Lonsurf (TAS-102) Lonsurf + IV irinotecan 1) Nukatsuka et al: Combination Chemotherapy Using TAS-102 and Irinotecan Hydrochloride, ANTICANCER RESEARCH 35: 1437-1446 015) 27 Our pipeline products / ONCORAL
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Ascelia Pharma Annual Report 2025 PHASE 2 STUDY DESIGN AND COLLABORATION Phase 2 study design Oncoral + Lonsurf vs. Lonsurf COMPARATOR Q Around 100 patients Q Metastatic gastric cancerPATIENTS Primary: Progression Free Survival Secondary: Response rate, Pharmacokinetics, Safety and Overall Survival data in a follow up analysis ENDPOINTS 2 - 2½ years, study start pendingSTUDY PERIOD Clinical collaboration with Taiho Oncology Q Clinical Phase 2 collaboration with Taiho Oncology Inc. (part of Otsuka Group) Q Taiho Oncology Inc. will supply Lonsurf and provide scientific expertise Q The collaboration may be extended for further development Q Ascelia Pharma retains full development and commercialization rights LONSURF® is approved for treatment of metastatic gastric cancer and metastatic colorectal cancer 28 Our pipeline products / ONCORAL
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Ascelia Pharma Annual Report 2025 A USD 3 BILLION ANNUAL GASTRIC CANCER MARKET There is an unmet medical need for better treatment options within gastric cancer. This translates into a commercial opportunity for treatment gastric cancer in excess of USD 3 bil- lion on an annual basis. Many patients are diagnosed with gastric cancer every year, but the geographical spread is uneven. In United States and in Europe, it is a rare cancer type that allows for an Orphan Drug Designation. In Asia, it is unfortunate a highly prevalent disease in comparison. US and EU target patent population (orphan disease) Japan and South Korea have high prevalence and high diagnosis rates (~150,000 diagnosed patients/year) China is the country in the world with the highest number of gastric cancer patients (~400,000 diagnosed patients/ year) … other markets (~400,000 diagnosed patients/year) Other key markets ~110,000 patients diagnosed with gastric cancer yearly ~100,000+ patients are drug treated ~60,000 patients reach advanced, 2nd and/or 3rd line therapy (often combination) 29 Our pipeline products / ONCORAL
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Ascelia Pharma Annual Report 2025 OPPORTUNITIES IN OTHER CANCER FORMS Beyond gastric cancer, there is potential for subsequent label expansion into other solid tumor indications. Within colorectal and pancreatic cancer, irinotecan for intravenous administration is already approved for use in Europe and the US. Apart from these indications, there are also other cancer forms where irinotecan has been clinically demonstrated and recognized. 1) Globocan 2020, WHO, Cancer Research UK 2) International Agency for Research on Cancer (IARC, 2021) 3) GlobalData - Gastric and Gastroesophageal Junction Adenocarcinoma – Global Drug Forecast and Market Analysis to 2024 Current focus: Gastric cancer Q 3rd highest cancer deaths 2 Q Orphan opportunity (US and EU) Q USD 3 billion annual market 3 Approved indications for IV irinotecan infusions Indications for which IV irinotecan infusions are clinically demonstrated & NCCN guidelines recognized Indications for which IV irinotecan infusions are clinically demonstrated Potential for oral, daily dosing of irinotecan 1 Colorectal Pancreatic Gastric Lung Esophagus Cervical Ovarian Liver Non hodgkin's lymphoma LeukemiaKidney - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 0% 20% 40% 60% 80% 100% Global annual incidence Median 5-year survival rate 30 Our pipeline products / ONCORAL
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Ascelia Pharma Annual Report 2025 31 Statutory reports / Shareholder information SHAREHOLDER INFORMATION Share performance and market cap In 2025, Ascelia Pharma’s share price increased by 10 percent. The market value of Ascelia Pharma at 31 December 2025 was SEK 411 million. In 2025, 326.5 million shares were traded on all marketplaces. The average number of shares trad - ed per day in 2025 was approx. 1.3 million. Ownership structure The five largest shareholders as of 31 December 2025 had a total of 25 percent of the capital and 25 percent of the votes. Around 2 percent of shares are held directly or indirectly by Management and Board members. Financial information Ascelia Pharma publishes four interim reports and an annual report. The reports are available to read and download from the website of Ascelia Pharma, www.ascelia.com. 2026 Annual General Meeting The AGM of Ascelia Pharma AB (publ) will be held on 4 May 2026. Ascelia Pharma AB (publ) is listed on Nasdaq Stockholm under the ticker ACE. On 31 December 2025, the company had 126,868,794 registered common shares and 1,033,786 C-shares with 1/10 voting rights (C-shares are held by Ascelia Pharma AB).
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Ascelia Pharma Annual Report 2025 32 10 LARGEST SHAREHOLDERS PER 31 DEC 2025 No. of shares % of capital % of votes Nordnet Pensionsförsäkring 14,296,421 11.2% 11.3% Avanza Pension 7,383,957 5.8% 5.8% ÖstVäst Capital Management 4,132,896 3.2% 3.3% Mats Thorén 3,152,568 2.5% 2.5% Handelsbanken fonder 2,872,136 2.3% 2.3% Swedbank Försäkring 1,477,807 1.2% 1.2% Connys Alltransporter AB 1,400,000 1.1% 1.1% Philip Bacchus 1,292,643 1.0% 1.0% Søren Evald Andresen 1,135,000 0.9% 0.9% Svante Larsson 1,000,000 0.8% 0.8% Other holders of common shares 88,725,366 69.9% 69.4% Total common shares 126,868,794 99.2% 99.9% C-shares (held by Ascelia Pharma), 1/10 voting rights 1,033,786 0.8% 0.1% TOTAL NUMBER OF SHARES 127,902,580 100% 100% Equity analysts: Ascelia Pharma is covered by DNB Carnegie, Redeye and ABG Sundal Collier. Statutory reports / Shareholder information
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Ascelia Pharma Annual Report 2025 At Ascelia Pharma, our vision is to address unmet medical needs and provide better treatment options for people with rare cancer conditions. Pursuing responsibility and sustainability—in our operations and in our relationships with employees, partners, and stakeholders—is key to driving this vision towards growth and long-term value creation. This commitment is rooted in our shared values of focus, courage, and integrity. We support the United Nations 2030 Agenda and Sustainable Development Goals (SDGs), concentrating on those where we can make the greatest impact. We have identified three SDGs—Good Health and Well-being, Decent Work and Economic Growth, and Responsible Consumption and Production—because they align closely with our mission to improve patient outcomes, foster an engaging workplace, and grow sustainability throug- hout our value chain. These SDGs, together with our core values, guide business decisions at Ascelia Pharma. Four objectives define our sustainability ambition. ASCELIA PHARMA SUSTAINABILITY AMBITION Our sustainability objectives 1. Improving patients’ lives 2. Ensuring an inclusive and engaging work environment 3. Upholding responsible business governance 4. Pursuing environmental sustainability Sustainable development goals most impacting our business 1. Improving patients’ lives We develop and bring to market life-changing medicines that improve the health and lives of peo- ple with rare cancer conditions. Patient needs are at the core of our operations and decisions, from development through commercialization. ■ We strive to make available diagnosis and care for vulnerable patient populations who often have limited options ■ We seek to integrate patient needs into opera - tions and decisions; from development to com - mercialization ■ We are committed to ethical practices and to ensuring our products are safe and effective for patients who need them 2. Ensuring an inclusive and enga- ging work environment We are committed to our values Focus, Integrity, and Courage and to creating a work environment whe - re every individual can thrive and contribute to our long-term success. ■ We provide a work environment with ambitious goals, enabling every employee and collab - orator to contribute to the development of life-changing medicines ■ We promote a culture of diversity, inclusion and equal opportunity; and treat each other with respect 33 Statutory reports / Sustainability
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Ascelia Pharma Annual Report 2025 3. Upholding responsible business governance A sustainable business model supports the long-term value creation of Ascelia Pharma. We ensure that our practices are ethical and that our products are safe and effective for target patients. We also recognize that our impact extends beyond our own operations. ■ We embrace our responsibility for compliance with the high regulatory, quality, and ethical standards of our industry ■ We uphold a culture of accountability, guided by our Code of Conduct, core values and commitment to integrity ■ We rely on trusted, responsible partners throughout our value chain, and we actively encourage and over - see their compliance and ethical conduct 4. Pursuing environmental sustainability Embracing environmental sustainability is strategically important for us. By being mindful of our ecological footprint, we contribute to global health, reduce operational risks, and align with the expectations of patients, investors, partners and other stakeholders who also increasingly value responsible corporate behavior. Sustainability also fosters innovation and long-term resilience of our business — ensuring that our products have a positive impact on the world. ■ We have sustainability in mind when selecting vendors ■ We advocate for responsible and conscious use of resources in our daily business practices, such as energy consumption and waste management Orviglance, our manganese-based liver imaging agent, offers a safer and more sustainable alternative. By reducing the use of gadolin - ium - a toxic heavy metal, Orviglance contributes to reducing environmental contamination and supports a cleaner, more sustainable healthcare system, while advancing safety for patients. 34 Statutory reports / Sustainability
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Ascelia Pharma Annual Report 2025 35 DIRECTORS’ REPORT The Board and the CEO of Ascelia Pharma AB (publ), (Ascelia Pharma), based in Malmö, Sweden corporate ID no. 556571-8797 hereby submit the annual report and consolidated financial state - ments for the fiscal year 2025-01-01 – 2025-12-31 for the Group and the Parent company. Ownership structure Ascelia Pharma AB (publ) is listed on Nasdaq Stockholm. The largest shareholders per 31 December 2025 were Nordnet Pensionsförsäkring with 14,296,421 shares (11.2 percent of total shares) followed by Avanza Pension with 7,383,957 shares (5.8 percent) and ÖstVäst Capital Management with 4,132,896 shares (3.2 percent). ASCELIA PHARMA’S BUSINESS Ascelia Pharma is a biotech company focused on orphan oncology treatments. We develop and commercialize novel drugs that address unmet medical needs and have a clear development and market pathway. The company has two drug candidates in development. About Orviglance Orviglance (manganese chloride tetrahydrate) is a novel oral contrast agent for MR-imaging developed to improve the detection and visualization of focal liver lesions (including liver metastases and primary tumors) in patients with reduced kidney function. These patients are at risk of serious side effects from the currently available class of gadolinium-based contrast agents. Orviglance, has been granted an Orphan Drug Designation by the US Food and Drug Administration (FDA). A clinical program of nine studies, including the pivotal global Phase 3 study SPARKLE, has successfully been completed with strong and consistent efficacy and safety results. The New Drug Application (NDA) has been submitted to the FDA. About Oncoral Oncoral is a novel irinotecan chemotherapy tablet developed initially for the treatment of gastric cancer. Irinotecan chemotherapy has an established potent anti-tumor effect. Oncoral is a daily tablet with the potential to offer better patient outcomes with improved safety following the daily dosing at home compared to intravenous high-dose infusions at the hospital. Following successful Phase 1 results, Oncoral is now prepared for Phase 2 clinical development. DIRECTORS’ REPORT The year in brief In January 2025, we announced that three scientific abstracts based on SPARKLE data had been accepted for presentation at the ESGAR conference. A few months later, an additional abstract was accepted for presentation at the ISPOR conference. In April, we could also announce the publication of a scientific article in Investigative Radiology. The article features Orviglance in a comparison study to unenhanced MRI and to gadolinium. In March, the subscription price for the TO 1 warrants was determined to SEK 2.15, and in April Ascelia Pharma received gross proceeds of SEK 43 million from the exercise of the warrants. In con- nection with this, the loan of SEK 20 million was repaid to Fenja. The NDA for Orviglance was submitted to FDA in early September. In November, we announced that FDA, through its 74-day letter, had accepted the NDA for review with a target decision date of July 3, 2026. In September, Fenja Capital II A/S requested conversion of all outstanding convertibles amounting to SEK 7.5 million. Later that month, a directed share issue was completed, providing gross proceeds of SEK 30 million. Early November we announced changes to the management team. These changes were designed to strengthen the company’s operational capabilities. Later in November, a new patent application for Orviglance was filed. Multi-year overview, Group Financials key ratios for the Group SEK thousands 2025 2024 2023 Net sales - - - Operating result -74,374 -67,766 -110,914 Net result -76,253 -80,029 -109,288 Earnings per share (SEK) -0.67 -1.48 -3.24 R&D costs/operating costs (%) 76% 74% 72% Cash flow used in operating activities -72,252 -62,844 -126,792 Equity 99,472 78,944 74,328 Liquid assets incl. marketable securities 49,861 75,256 21,855 Statutory reports / Directors’ report
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Ascelia Pharma Annual Report 2025 36 DIRECTORS’ REPORT EARNINGS AND PROFITABILITY Net sales and other operating income The Group’s net sales for the full year 2025 (Jan-Dec) amounted to SEK 0 (SEK 0). Other operating income totaled SEK 0.1 million (SEK 0.5 million). The income refers to exchange rate gains. Administrative costs Administrative costs in the period amounted to SEK 17.3 million (SEK 18.0 million). The cost de - crease compared to the same quarter last year, is mainly driven by lower recognized costs for employee incentive programs. Research and development costs (R&D) R&D costs amounted to SEK 56.8 million (SEK 50.8 million). The cost increase of SEK 6.0 million mainly reflects the costs for NDA preparations and submission. Commercial preparation costs No costs for commercial preparations were reported in the period. Operating results (EBIT) The operating result for the Group amounted to SEK -74.4 million (SEK -67.8 million). The in - creased loss mainly reflects the costs for NDA preparation and submission. Net Profit/Loss for the period The Group’s net loss in the period amounted to SEK -76.3 million (SEK -80.0 million). A net financial loss of SEK -2.3 million was recognized, which mainly reflects currency loss related to weakening of USD against SEK and arrangement fee expenses related to loans. The net loss corresponds to a loss per share, before and after dilution, of SEK -0.67 (SEK -1.48). CASH FLOW Cash flow from operating activities before changes in working capital amounted to SEK -70.2 million (SEK -66.4 million). Changes in working capital for the period showed an outflow of SEK -2.0 million (SEK 3.5 million) and reflect a decrease in accounts payable and other liabilities as well as a decrease in credits on the tax account. Cash flow from investing activities amounted to an outflow of SEK -57 thousand (SEK 0). Cash flow from financing activities totaled an inflow of SEK 48.2 million (inflow of SEK 115.2 million). The inflow during the period is attributable to the net effect of proceeds from the warrants series TO 1 and repayment of the loan to Fenja in April 2025, and proceeds from the directed new share issue carried out in September. FINANCIAL POSITION On the closing date, equity amounted to SEK 99.5 million, compared with SEK 78.9 million per 31 December 2024. The increase since 31 December 2024 reflects the new share issue related to the warrants TO 1 in April 2025 and the directed new share issue carried out in September 2025 as well as the net loss incurred. Liquid assets amounted to SEK 49.9 million on the closing date, compared to SEK 75.3 million per 31 December 2024. On 15 April 2025, the TO 1 warrants were exercised. Ascelia Pharma received net proceeds of SEK 41.5 million. In connection with the warrant exercise a loan of SEK 20 million was repaid to Fenja. In September 2025, Fenja converted all outstanding convertibles of SEK 7.5 million. Later in the month, we successfully completed a directed share issue, raising SEK 30 million before costs. With this fundraise, we broaden our investor base and strengthen our balance sheet. We now have a cash runway into Q4 2026, well beyond the expected FDA approval date of Orviglance. FINANCIAL OVERVIEW 2025 Statutory reports / Financial overview
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RISK AND RISK MANAGEMENT Ascelia Pharma Annual Report 202537 Changes in our business environment and unexpected outcomes from operations can have a negative impact – pose a risk – on our reputation, results and value. Managing risks regularly and systematically is key to our value creation and value protection over time. We do this by anticipating and mitigating risks – to the extent possible and reasonable – to limit the likelihood of events occurring and limit undesirable impacts on Ascelia Pharma. As risks are constantly changing and cannot be eliminated, risk and scenario assessments are part of our recurrent strategy and business planning processes. Management and the Board of Directors review the risk profile of Ascelia Pharma regularly. Our risk review consists of identifying key risks within a timeframe of 2 years. The likelihood of each key risk is as- sessed along with its potential impact on the results or long-term value of Ascelia Pharma e.g., expressed as delays, additional costs or impact on the value of an asset. Operational mitigating measures – management response – that can reduce the likelihood of the risk occurring or the impact on Ascelia Pharma are identified and implemented. ■ RESEARCH & DEVELOPMENT ■ OPERATIONS & COMPLIANCE ■ BUSINESS ENVIRONMENT & COMMERCIALIZATION ■ FINANCE & MACRO ENVIRONMENT ASCELIA PHARMA GROUPS KEY RISKS INTO FOUR CATEGORIES Statutory reports / Risk and risk management
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Ascelia Pharma Annual Report 2025 38 Risk category Description Key risks Management response Research & development Our vision is to be a leader in identifying, developing and commer - cializing novel drugs that address unmet needs of people with rare cancer conditions. Building and advancing an attractive product portfolio is critical for delivering sustainable business growth and shareholder value. Unexpected outcomes of major non-clinical, clinical and CMC studies or regulatory processes can lead to both significant delays and failed feasibility to progress product devel - opment. ▪ Failure to reach key development and regulatory goals ▪ Substantial delay or cost increase of key development and regulatory goals ▪ Portfolio of assets and target product profiles is selected and maintained based on above average industry likelihood of success ▪ Define product plans based on established methodologies, industry guidance and input from experts and regulatory authorities ▪ Appropriate skills are secured internally or through optimal vendor selection and governance Operations & compliance The successful business operations are dependent on Ascelia Phar - ma and 3rd parties conducting business or delivering services ac - cording to agreed terms and current legal, regulatory, quality and IT security standards. Disruptions can lead to significant costs, delays and impact our reputation. As a small team in a knowledge-based industry, both our internal team and external vendors are key to business results. An inability to attract and retain engaged and qualified personnel or vendors can lead to loss of knowledge, capabilities and performance, which would impact quality and progress of key deliverables. ▪ Major disruption of operations ▪ Inability to attract and retain key competences ▪ A culture of quality and compliance with procedures for handling critical events is established and main - tained ▪ Appropriate selection and governance of critical ven - dors is established and regularly evaluated ▪ IT infrastructure security and related processes are in place and continuously monitored and developed ▪ Team engagement is fostered by strong culture and market-based remuneration Business environ - ment & commercialization risks Changes in the political, economic or healthcare environment can impact commercial and partnering opportunities and the value of Ascelia Pharma assets. These changes can include new recommen - dations from payers or medical bodies for management of a target patient population, or new competitor drugs or technology in de - velopment that address the same target population or unmet need. The success and terms of a partnering can also be impacted by market developments. ▪ Reduced payer willingness to sup - port targeted price or access ▪ Unfavorable significant changes in regulatory or medical guidelines ▪ New competitor entry ▪ Success of partnering limited by terms or outcomes ▪ Portfolio strategy is established with focus on assets with the potential to address clear unmet needs for a well-defined patient population ▪ External insights (from experts, external research and market monitoring) regarding patents, R&D and mar - ket conditions, are incorporated into clinical, regulato - ry and commercial strategy development and scenario planning ▪ Partnering and out-licensing opportunities are continu - ously evaluated, and strategic options maintained Statutory reports / Risk and risk management
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Ascelia Pharma Annual Report 2025 39 Finance & macro environment Ascelia Pharma is a pre-revenue emerging pharma and therefore dependent on securing financing from external sources to fund de - velopment programs and operations. Financing options and cost of capital are impacted by dynamics in our macroeconomic environ - ment. Other changes in our macro environment, including currency fluctuations and geopolitical events, can impact our ability to execu- te business plans, secure financing, or the value of our assets as well as leading to higher costs or reduced revenue. ▪ Lack of adequate financing for con - tinuing growth ▪ Significant currency depreciation impacting financial situation ▪ Substantial business disruption from macro events ▪ Long and short term plans for pursuing a variety of fi - nancing and strategy options are established ▪ Diligent business planning and budget management is in place to manage investments according to value cre - ation ▪ Currency exposure is managed according to finance policy ▪ Macroenvironment risks are considered in exposure to e.g. geographical dependencies on vendors and other 3rd parties ▪ Changes in our business environment are monitored and procedures for handling critical events established Statutory reports / Risk and risk management
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Ascelia Pharma Annual Report 2025 40 Employees The number of full-time employees as of 31 December 2025 amounted to 10 (11) for both the Group and the Parent company (average 11 employees in 2025 and 11 in 2024). In addition to the employees, Ascelia Pharma utilizes consultants and experts for clinical studies, regulatory affairs, manufacturing, intellectual property rights as well as support functions. Significant events after the end of the financial year Refer to note 28 in this Annual Report for significant events after the reporting period. PARENT COMPANY Ascelia Pharma AB (publ) fully owns all the companies in the Group. The equity/assets ratio on the closing date was 93 percent (66 percent). Equity amounted to SEK 141M (SEK 121M). Liquid assets amounted to SEK 49 million (SEK 74 million). The company had 10 employees on the closing date. Total number of shares The total number of outstanding common shares as of 31 December 2025 was 126,868,794 and number of C-shares was 1,033,786 as of 31 December 2025. All shares in Ascelia Pharma are fully paid and have a quota value of SEK 1. There are no restrictions on the right to freely transfer the company’s shares. Sustainability Our vision is to address unmet needs and to provide better treatment options for people with rare cancer conditions. Being a responsible, sustainable company in our business operations and rela - tionships with employees and stakeholders is part of driving our vision towards long-term growth and value creation and it is an integral part of our shared values of focus, courage and integrity. Our sustainability work is further described on p.33-34. Given the current size of the company, no sustainability report for 2025 has been established. Board activities The Board has adopted a set of working procedures, instructions and a number of policies that define the allocation of responsibilities between the Board, the President and CEO, committees appointed by the Board and Group management. The Board has ultimate responsibility for the Group’s operations and organization and ensures that the duties of the President and CEO as well as financial operations are carried out in compliance with established principles. The Board held 16 minuted meetings during 2025. From its membership, the Board has appointed an Audit Committee, a Remuneration Committee and a Commercialization Committee. During the year, the Audit Committee held eight meetings, the Remuneration Committee held six meetings and Commercialization Committee held no meetings. Authorization to the Board of directors regarding new issues of securities and repurchases For authorizations granted by the Annual General Meeting to the Board of Directors, reference is made to p.46 of the Corporate Governance Report. Guidelines for remuneration The guidelines for remuneration to senior management is described in the Corporate Governance section and in note 7 in this Annual Report. Proposed appropriation of the company’s result: The following amounts (SEK) in the Parent Company are at the disposal of the AGM: Board of Directors proposes that SEK 13,433,882 is carried forward. Dividend policy Up to now, Ascelia Pharma has not paid any dividends and Ascelia Pharma’s intention is to continue to focus on further development and expansion of the company’s project portfolio. In accordance with the dividend policy adopted by the Board of Directors, available financial resources and any reported results shall therefore be reinvested in the business to finance the company’s long-term strategy. Hence, the Board of Directors’ intention is not to propose a dividend to shareholders before the company is able to generate a long-term sustainable profitability and a long-term sus - tainable positive cash flow. Any future dividends and the size thereof will be determined based on the company’s long-term growth, earnings trend and capital requirements, taking into account, at all times applicable, objectives and strategies. Dividends shall, in so far as dividends are proposed, be well-balanced with respect to the company’s objectives, scope and risk. OTHER INFORMATION SEK Share premium reserve 771,365,605 Retained earnings -681,632,036 Net income (loss) for the period -76,299,687 T otal 13,433,882 Statutory reports / Other information
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Ascelia Pharma Annual Report 2025 41 CORPORATE GOVERNANCE REPORT Corporate Governance in Ascelia Pharma Ascelia Pharma is a Swedish public limited liability company with its registered office in Malmö, Sweden. The company’s corporate governance is based on Swedish law and internal rules and procedures. Ascelia Pharma also follows Nasdaq Stockholm’s Rule Book for Issuers and apply the Swedish Corporate Governance Code (the “Code”). The Code applies to all Swedish companies with shares listed on a regulated market in Sweden. The Code is based on the so-called “comply or explain” principle. This means that a company that applies the Code may choose to deviate from certain rules of the Code, but must then describe its alternative solution and explain the reason for the deviation in its annual corporate governance report. This corporate governance report has been drawn up in accordance with the rules in the Annual Accounts Act and in the Code. Annual General Meeting According to the Swedish Companies Act (2005:551), the Annual General Meeting is the compa - ny’s highest decision-making body. At the Annual General Meeting, the shareholders exercise their voting rights in key issues, such as changes to the articles of association, the election of the Board of Directors and auditors, adoption of the income statement and balance sheet, discharge from liability of the Board of Directors and the CEO, the appropriation of profit or loss and the principles for the appointment of the nomination committee. The Annual General Meeting (AGM) must be held within six months from the end of the financial year. In addition to the Annual General Meeting, extraordinary general meetings may be convened. According to the articles of association, notices convening the general meetings are to be pub - lished in the Swedish National Gazette (Sw. Post- och Inrikes Tidningar) and by making the notice available on the company’s website. Information regarding the notice shall at the same time be advertised in Svenska Dagbladet. General meetings in Ascelia Pharma are held in Malmö. Right to attend AGMs To attend and vote at the Annual General Meeting, either in person or through a proxy, shareholders must be registered in the share register kept by Euroclear Sweden AB five business days prior to the meeting and also register their participation to the company no later than on the date specified in the notice convening the meeting. This date cannot be a Sunday, other public holiday, Saturday, Midsummer Eve, Christmas Eve or New Year’s Eve and not fall earlier than the fifth business day prior to the meeting. Shareholders who wish to have a specified matter brought before the general meeting must submit a written request to the company’s Board of Directors. Such request must normally have been received by the Board of Directors no later than seven weeks before the Annual General Meeting. Annual General Meeting 2025 At the Annual General Meeting held on 7 May 2025, Peter Benson was re-elected as Chairman of the Board and Helena Wennerström, Hans Maier, Lauren Barnes and Marianne Kock were re-elected as Board members. Niels Mengel had declined re-election. Furthermore, Öhrlings PricewaterhouseCoopers AB was re-elected as auditor. The Annual General Meeting resolved on fees to the Board of Directors and the auditors. The Annual General Meeting also resolved on an authorization for the Board of Directors to issue shares, as well as on an authorization for the Board of Directors on transfers of own ordinary shares. Extraordinary General Meetings 2025 In addition to the Annual General Meeting, one Extraordinary General Meetings (EGM) was held during the year. In February 2025, an EGM was held where it was resolved to implement an employee option program for all employees. Statutory reports / Corporate governance report
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Ascelia Pharma Annual Report 2025 42 Annual General Meeting 2026 The Annual General Meeting (AGM) of Ascelia Pharma AB (publ) will be held on 4 May 2026. Shareholders On 31 December 2025, the five largest shareholders controlled around 25 percent of the capital and 25 percent of the votes. The largest shareholder controlling 11.2 percent of the capital and 11.3 per- cent of the votes were Nordnet Pensionsförsäkring. On 31 December 2025, the number of common shares was 126,868,794 and the number C-shares, that has one-tenth of a vote per share, amounted to 1,033,786. Each common share entitles the holder to one vote and there are no limitations as to the number of votes each shareholder can cast at a general meeting. Nomination Committee The duties of the Nomination Committee include the preparation and drafting of proposals regard - ing the election of members of the Board of Directors, the chairman of the Board of Directors, the chairman of the general meeting and auditors. The Nomination Committee shall also propose fees for board members and the auditor. The composition of the Nomination Committee is publicly announced at least six months ahead of the AGM. According to the instructions and rules of procedure for the Nomination Committee, the Nomination Committee shall consist of four members representing the three largest shareholders per the end of September, together with the chairman of the Board of Directors. The three largest shareholders are considered to be the three largest shareholders as registered with Euroclear Sweden AB. In accordance with the adopted instructions, the Nomination Committee in front of the 2026 Annual General Meeting is comprised of the following persons: Q Oscar Ahlgren, chairman of the Nomination Committee, appointed by Salenia; Q Jørgen Thorball, appointed by Mats Thorén; Q Roger T Storm, appointed by Handelsbanken Fonder; and Q Peter Benson, chairman of the Board of Directors. The Board of Directors After the general meeting, the Board of Directors is the highest decision-making body. According to the Swedish Companies Act, the Board of Directors is responsible for the organization and management of the company’s affairs, which means that the Board of Directors is responsible for, among other things, establishing targets and strategies, securing procedures and systems for monitoring of set targets, continuously assessing the company’s financial position and evaluating the operational management. Furthermore, the Board of Directors is responsible for ensuring that proper information is given to the company’s shareholders, that the company complies with laws and regulations and that the company develops and implements internal policies and ethical guide - lines. Moreover, the Board of Directors is responsible for ensuring that annual reports and interim reports are prepared in a timely matter. The Board of Directors also appoints the company’s CEO. The members of the Board of Directors are elected annually at the Annual General Meeting for the period until the end of the next Annual General Meeting. According to the Ascelia Pharma’s articles of association, the Board of Directors shall consist of no less than three and no more than eight board members without any deputy board members. The articles of association do not include any separate provisions regarding appointment or dismissal of board members. Currently, the Board of Directors consists of five ordinary board members elected by the general meeting, who are presented in the section Board of Directors on pages 48-49 in this Annual Report. According to the Code, the chairman of the Board of Directors is to be elected by the general meeting. The role of the chairman is to lead the Board of Directors work and to ensure that the work is carried out efficiently, and that the Board of Directors fulfils its obligations. Board’s procedures The Board of Directors adheres to written rules of procedure which are revised annually and adopted at the constituent board meeting. The rules of procedure regulate, among other things, the practice of the Board of Directors, tasks, decision-making within the company, the Board of Directors meeting agenda, the chairman’s duties and allocation of responsibilities between the Board of Directors and the CEO. Instruction for financial reporting and instructions for the CEO are also adopted in connection with the constituent board meeting. The Board of Directors work is also carried out based on an annual briefing plan which fulfils the Board of Directors need for information. The chairman and the CEO maintain, alongside the board meetings, an ongoing dia - logue on the management of the company. The Board of Directors meets according to a pre-determined annual schedule and in addition to the constituent board meeting, at least six ordinary board meetings shall be held between each Annual General Meeting. In addition to these meetings, extra meetings can be arranged for pro - cessing matters which cannot be referred to any of the ordinary meetings. Board of Directors’ work and meetings in 2025 The Board of Directors had 16 meetings in 2025. In addition to decisions concerning external financial reporting, budget and financial forecasts, the board’s work during 2025 have primarily comprised matters related to the NDA submission of Orviglance, and financing strategies. The board has evaluated its work to improve the work procedures and enhance efficiency. Conclusions of the work are presented to the Nomination Committee. Statutory reports / Corporate governance report
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Ascelia Pharma Annual Report 2025 43 Board committees The Board of Directors has set up three committees: the Audit Committee, the Remuneration Committee and the Commercialization Committee. The Board of Directors has adopted rules of procedure for all committees. Audit Committee The Audit Committee is comprised of Helena Wennerström (chair) and Peter Benson. The Audit Committee’s role is mainly to monitor the company’s financial position, to monitor the effective - ness of the company’s internal control and risk management, to be informed about the audit of the annual report and consolidated financial statements, and to review and monitor the auditor’s impartiality and independence. The Audit Committee shall also assist the Nomination Committee in proposals for decisions on the election and remuneration of the auditor. The Audit Committee had eight meetings in 2025. Remuneration Committee The Remuneration Committee is comprised of Marianne Kock (chair) and Peter Benson. The Remuneration Committee’s role is primarily to prepare matters regarding remuneration and other terms of employment for the CEO and other senior executives. The Remuneration Committee shall also monitor and evaluate ongoing and completed programs for variable remuneration to the com - pany’s management and to monitor and evaluate the implementation of the guidelines for remu - neration to senior executives which the Annual General Meeting has adopted. The Remuneration Committee had six meetings in 2025. Commercialization Committee The Commercialization Committee is comprised of Lauren Barnes (chair), Marianne Kock, Peter Benson and Hans Maier. The Commercialization Committee’s role is primarily to prepare resolu - tions to be adopted by the Board pertaining to matters regarding overall commercialization plans and key commercialization decisions of products within Ascelia Pharma. The committee also over - sees launch readiness and oversee that commercialization capabilities are available timely and ad - equately according to agreed plans. The Commercialization Committee had no meetings in 2025. The CEO and other senior executives The role of the CEO is subordinate to the Board of Directors and the CEO’s main task is to carry out the company’s ongoing management and the daily activities of the company. The rules of procedure of the Board of Directors and the instructions for the CEO stipulate which matters the Board of Directors shall resolve upon, and which matters that fall within the CEO’s area of respon - sibility. Furthermore, the CEO is responsible for preparing reports and necessary information for decision-making prior to board meetings and presents the material at board meetings. Since November 2025, Ascelia Pharma’s management team has comprised four members. In addi - tion to the CEO, the team includes the Chief Financial Officer (CFO), Chief Scientific Officer (CSO), and Chief Operating Officer (COO). Further information on the CEO and the senior executives is presented in the Management section on page 50 in this Annual report. Reporting period 1 January 2025 - 31 December 2025 Independent in relation to Remuneration, TSEK Attendance (attendance in relation to total meetings) Board member Function The company and its management Major share- holders Board fees Audit Com- mittee Remuneration Committee Commercialization Committee T otal Board of Directors Audit Com- mittee Remuneration Committee Commercialization Committee Peter Benson Chariman Yes Yes 525 16 25 – 566 16/16 5/5 6/6 – Lauren Barnes Board member Yes Yes 263 – – – 263 16/16 – – – Marianne Kock Board member Yes Yes 263 – 41 – 304 16/16 – 6/6 – Hans Maier Board member Yes Yes 263 – – – 263 16/16 – – – Niels Mengel 1) Board member Yes Yes 92 9 18 – 119 3/3 3/3 2/2 – Helena Wennerström Board member Yes Yes 263 100 – – 363 16/16 8/8 – – T otal 1 667 125 84 – 1 876 1) Niels Mengel resigned in May 2025. Statutory reports / Corporate governance report
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Ascelia Pharma Annual Report 2025 44 Remuneration Remuneration to the Board Fees to board members elected by the general meeting are resolved by the Annual General Meeting. At the Annual General Meeting held on 7 May 2025, it was resolved in accordance with the proposal from the Nomination Committee that board remuneration for the period until the Annual General Meeting in 2026 shall be paid with SEK 525,000 to the chairman of the board and with SEK 262,500 to each of the other board members who are not employed by the company. The meeting further resolved in accordance with the proposal from the Nomination Committee that remuneration for committee work shall be paid with SEK 100,000 to the chairman of the Audit Committee, 100,000 to the chairman of the Commercialization Committee and 50,000 to the chairman of the Remuneration Committee. To each of the other members of the Audit Committee, the Commercialization Committee and the Remuneration Committee, it was resolved that remuneration of SEK 25,000 would be paid. It was furthermore resolved that, in addition to the above, board members residing outside of Europe shall be paid additional board remuneration with SEK 10,000 per physical board meeting attended. Guidelines for remuneration to senior executives Scope and applicability of the guidelines These guidelines comprise the persons who are part of the group management, currently the CEO, CFO, CSO and COO. The guidelines also encompass any remuneration to members of the Board of Directors, in addition to board remuneration. These guidelines are applicable to remuneration agreed, and amendments to remuneration already agreed, after adoption of the guidelines by the Annual General Meeting 2022. These guidelines do not apply to any remuneration resolved by the Annual General Meeting, such as e.g. board remuneration and share-based incentive programs. The guidelines’ promotion of the company’s business strategy, long-term interests and sustainability A successful implementation of Ascelia Pharma’s business strategy and safeguarding of Ascelia Pharma’s long-term interests, including its sustainability, require that the company is able to recruit and retain highly competent senior executives with a capacity to achieve set goals. In order to achieve this, Ascelia Pharma must offer a competitive total remuneration on market terms, which these guidelines enable. Long-term share-based incentive programs have been implemented in Ascelia Pharma. For further information about these programs, see note 7 in this Annual Report. The share-based incentive pro- grams have been approved by the general meeting and are therefore not covered by these guidelines. Types of remuneration, etc. The remuneration shall be on market terms and be competitive and may consist of the following components: fixed salary, variable cash remuneration, pension benefits and other benefits. For the individual senior executive, the level of remuneration shall be based on factors such as compe - tence, area of responsibility and performance. Additionally, the general meeting may – irrespective of these guidelines – resolve on, e.g., share and share price-related remuneration. For employments governed by rules other than Swedish, pension benefits and other benefits may be duly adjusted for compliance with mandatory rules or established local practice, considering, to the extent possible, the overall purpose of these guidelines. Fixed salary The CEO and other senior executives shall be offered a fixed annual cash salary. The fixed salary shall as a starting point be determined per calendar year with salary revision on an annual basis. Variable cash remuneration In addition to fixed salary, the CEO and other senior executives may, according to separate agree - ments, receive variable cash remuneration. Variable cash remuneration covered by these guide - lines is intended to promote Ascelia Pharma’s business strategy and long-term interests, including its sustainability. The satisfaction of criteria for awarding variable cash remuneration shall be mea - sured over a period of one or several years. Variable cash remuneration may, for the CEO, amount to a maximum of 40 percent of the fixed annual salary, and for other senior executives, and a maximum of 30 percent of the fixed annual salary. Variable cash remuneration shall not qualify for pension benefits, save as required by mandatory collective bargaining agreements. The variable cash remuneration shall be linked to one or several predetermined and measurable criteria, which can be financial, such as revenue targets, operating result targets and budget adher - ence, or non-financial, such as clinical study milestones and manufacturing milestones. By linking the goals in a clear and measurable way to the remuneration of the senior executives to Ascelia Pharma’s financial and operational development, they contribute to the implementation of the company’s business strategy, long-term interests and sustainability. To which extent the criteria for awarding variable cash remuneration has been satisfied shall be evaluated and determined when the measurement period has ended. The Remuneration Committee is responsible for the evaluation. For financial objectives, the evaluation shall be based on the latest financial information made public by the company. The Board of Directors shall have the possibility to, in whole or in part, reclaim variable cash remuneration paid on incorrect grounds. Statutory reports / Corporate governance report
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Ascelia Pharma Annual Report 2025 45 Additional variable cash remuneration may be awarded in extraordinary circumstances, provided that such extraordinary arrangements are only made on an individual basis, either for the purpose of recruiting or retaining senior executives, or as remuneration for extraordinary performance beyond the individual’s ordinary tasks. Such remuneration may not exceed an amount correspond - ing to 30 percent of the fixed annual salary and may not be paid more than once each year per individual. Any resolution on such remuneration shall be made by the Board of Directors based on a proposal from the Remuneration Committee. Pension benefits Pension benefits, including health insurance, shall be defined contribution, insofar as the senior executive is not covered by defined benefit pension under mandatory collective bar-gaining agree - ments. Pension premiums for defined contribution pensions may amount to a maximum of 30 percent of the fixed annual salary. Other benefits Other benefits may include life insurance, medical insurance and a company car. Premiums and other costs relating to such benefits may amount to a total of not more than 20 percent of the fixed annual salary Termination of employment and severance payment Senior executives shall be employed until further notice or for a specified period of time. Upon ter- mination of an employment by Ascelia Pharma, the notice period may not exceed 12 months. Fixed salary and other remuneration during the notice period and severance pay may not together ex - ceed an amount corresponding to the fixed annual salary for 18 months. Upon termination by the senior executive, the notice period may not exceed six months, without any right to severance pay. In addition to fixed salary during the period of notice and severance pay, additional remuneration may be paid for non-compete undertakings. Such remuneration shall compensate for loss of in - come and shall only be paid in so far as the previously employed senior executive is not entitled to severance pay for the period for which the non-compete undertaking applies. The remuneration shall be based on the fixed annual salary at the time of termination of employment and amount to not more than 60 percent of the fixed annual salary at the time of termination of employment, save as otherwise provided by mandatory collective bargaining agreements, and shall be paid during the time as the non-compete under-taking applies, however not for more than 12 months following termination of employment. Salary and employment conditions for employees In the preparation of the Board of Directors’ proposal for these remuneration guidelines, salary and employment conditions for employees of Ascelia Pharma have been taken into consideration by including information on the employees’ total income, the components of the remuneration and increase and growth rate over time, in the Remuneration Committee’s and the Board of Directors’ basis of decision when evaluating whether the guidelines and the limitations set out herein are reasonable. Consultancy fees to the members of the Board of Directors To the extent a member of the Board of Directors renders services for the company, in addition to his or her assignment as a member of the Board of Directors, an additional consultancy fee on market terms may be paid to the member of the Board of Directors, or to a company controlled by such member of the Board of Directors, provided that such services contribute to the implemen - tation of Ascelia Pharma’s business strategy and the safeguarding of Ascelia Pharma’s long-term interests, including its sustainability. Preparation and decision-making progress The Board of Directors has established a Remuneration Committee. The Remuneration Committee’s duties include i.a. preparing the Board of Directors resolution to propose guidelines for remuneration to senior executives. The Board of Directors shall prepare a proposal for new guidelines at least every fourth year and submit it to the general meeting. The guidelines shall be in force until new guidelines have been adopted by the general meeting. The Remuneration Committee shall also monitor and evaluate programs for variable remuneration for the senior ex - ecutives as well as the current remuneration structures and compensation levels in the company. The members of the Remuneration Committee are independent in relation to the company and its senior management. The CEO and other members of the senior management do not participate in the Board of Directors processing of and resolutions regarding remuneration-related matters in so far as they are affected by such matters. Deviation from these guidelines The Board of Directors may temporarily resolve to deviate from these guidelines, in whole or in part, if in a specific case there is special cause for the deviation and a deviation is necessary to serve the company’s long-term interests, including its sustainability, or to ensure the company’s financial viability. As set out above, the Remuneration Committee’s tasks include preparing the Board of Directors resolutions in remuneration-related matters, which include any resolutions to deviate from these guidelines. Information regarding resolved remunerations that have not yet fallen due Apart from the commitments to pay ongoing remuneration such as salary, pension and other ben - efits, there are no previously resolved remuneration to any senior executives that have not yet fallen due. For further information on remuneration to senior executives including share-based incentive programs, please see note 7 in this annual report. Statutory reports / Corporate governance report
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Ascelia Pharma Annual Report 2025 46 Authorization to the Board of Directors regarding new issues of securities and repurchases of shares At the Annual General Meeting held on 7 May 2025, it was resolved to authorize the Board of Directors to, at one or several occasions, during the time up until the next Annual General Meeting, with or without deviation from the shareholders’ preferential rights, and with or without provisions regarding payment in kind or through set-off or other provisions, resolve to issue new ordinary shares, convertibles and/or warrants. The reason for that deviation from the sharehold - ers’ preferential rights shall be permitted is to enable Ascelia Pharma to raise working capital, to execute acquisitions of companies or operating assets as well as to enable new share issues to industrial partners within the framework of partnerships and alliances. The total number of ordinary shares that may be issued pursuant to the authorization (alternatively be issued through conversion of convertibles and/or exercise of warrants) shall be limited to a number that leads to a maximum dilution of 20 per cent (calculated after full utilization of the now proposed authorizations) of the total number of ordinary shares outstanding in the company at the time of the first issue resolution pursuant to the authorization. To the extent an issue is made with deviation from the shareholders’ preferential rights, the issue should be made on market terms. At the Annual General Meeting, it was furthermore, for the period up until the next Annual General Meeting, resolved to authorize the Board of Directors to resolve on transfer of not more than 9,550 own ordinary shares, for the purpose of hedging cash flow for social security payments that may occur in relation to LTI 2022. Transfer of shares shall be effected on Nasdaq Stockholm at a price within the, at each time, prevailing price interval for the share. The number of shares that may be transferred shall be subject to recalculation in consequence of an intervening bonus issue, split or reverse split, rights issue, and/or other similar corporate action which affects the number of shares in the Company. Shares may also be transferred outside of Nasdaq Stockholm, with or without deviation from the shareholders’ preferential rights. Such transfer may be made at a price corresponding to the market price at the time of the transfer for the ordinary shares that are trans- ferred, with the deviation deemed appropriate by the Board of Directors. Internal Control Overview The overall purpose of the internal control is to ensure that the Ascelia Pharma’s strategies and objectives can be implemented within the business and to ensure that the financial reporting has been prepared in accordance with applicable laws, accounting standards and other requirements imposed on listed companies. The Board of Directors responsibility for the internal control is gov - erned by the Swedish Companies Act, the Swedish Annual Reports’ Act and the Code. In the rules of procedure for the Board of Directors, the instructions for the CEO and the instructions for financial reporting, all of which have been adopted by the Board of Directors, the allocation of the roles and responsibilities have been stated to contribute to an effective management of the company’s risks. The Board of Directors has also established an Audit Committee whose tasks mainly include to monitor the effectiveness of the company’s internal control, internal audit and risk management, to be informed about the audit of the annual report and consolidated financial statements, and to review and monitor the auditor’s impartiality and independence. In addition to the abovementioned controls, the Ascelia Pharma has standard operating procedures that govern the control and quality of its drug development (including requirement to its partners participating in drug development). With regards to risk assessments, these are carried out in connection with strategic planning and fore- casting work and specific risk sessions are held to identify and quantify as well as evaluate and decide how the identified risks can be managed and, if possible, be eliminated. The presentation of the identi- fied risks shall, as a minimum, be submitted to the Board of Directors once per year. Within the Board of Directors, the Audit Committee is responsible for continuously assessing the company’s risks. Control environment The Board of Directors bears the overall responsibility for internal control over financial reporting. To create and maintain a functioning control environment, the Board of Directors has adopted a number of policies governing financial reporting. These mainly comprise the rules of procedure for the Board of Directors, the instructions for the CEO and the instructions for financial reporting. The Board of Directors has also adopted a special set of signatory rules and a financial policy. Ascelia Pharma also has a manual containing principles, guidelines and process specifications for accounting and financial reporting. The Audit Committee within the Board of Directors ensures that the approved principles for fi - nancial reporting and internal control are complied with and that regular contact with the com - pany’s auditor is maintained. The responsibility for maintaining an effective control environment and for the day-to-day work on internal control over financial reporting rests with the CEO with assistance from the CFO. The CEO and CFO reports to the Board of Directors on a regular basis in accordance with the instruction to the CEO and the terms of reference for financial reporting. The Board of Directors also receives reports from the company’s auditor. Based on Ascelia Pharma’s current size and operations, the Board of Directors has decided not to set up a separate internal audit function. Statutory reports / Corporate governance report
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Ascelia Pharma Annual Report 2025 47 Risk assessment Ascelia Pharma’s management has regular discussions to identify and evaluate the risks arising in the company’s operations and to assess how these risks can be managed. Once a year, these risks are presented to the Board of Directors in a risk session accompanied by a risk assessment memo, which include a heat map quantifying the impact and likelihood of identified risks. The risk assessment work also includes identification of risks that may impact the basic requirements for the financial reporting of the company. The risk assessment results in a number of control targets supporting the basic requirements for financial reporting. These control targets aim to ensure that Ascelia Pharma meets its objectives for financial reporting. The financial reporting shall be correct and complete, and meet all applicable laws, rules and recommendations, provide a fair de - scription of the company’s business and support a rational and informed valuation of the business. In addition to these three objectives, internal financial reporting shall support proper business decision-making at all levels. Control activities Control activities limit the identified risks and ensure correct and reliable financial reporting. The CFO plays a key role in analysing and following up the Group’s financial reporting and results. There are functions for the analysis and follow-up of the financial reporting of the Group and subsidiaries. Control activities also comprise a review and follow-up of Ascelia Pharma’s governing documents relating to risk management and analysing complex transactions or valuation of assets or liabilities encompassing a significant element of judgement. The Board of Directors is respon - sible for internal control and monitoring of the company’s management. This is done primarily by examining the company’s steering documents and identified risk factors. Information and communication Ascelia Pharma has information and communication channels intended to promote the accuracy of financial reporting and to facilitate reporting and feedback from operations to the Board of Directors and the management, for example by making corporate governance documents such as internal policies, guidelines and procedures regarding the financial reporting available and known for employees. The Board of Directors has also adopted an information policy that governs Ascelia Pharma’s provision of information. Monitoring The compliance and effectiveness of internal controls are monitored regularly. The CEO ensures that the Board of Directors receives continuous reports on the development of Ascelia Pharma’s activities, including the development of Ascelia Pharma’s results and financial position, and infor - mation about important events, such as operational events of the drug development and major agreements and contracts. The CEO also reports on these issues at each board meeting. The Audit Committee supports the Board of Directors by preparing activities that assure the quality of the company’s financial reporting. This is partly achieved by the Audit Committee checking the finan - cial information and the Ascelia Pharma’s financial controls. The Board considers that the internal controls are effective in all material respects and, on back of this, has deemed that there is no need to establish a special internal audit function. External auditor Ascelia Pharma’s auditor is appointed by the Annual General Meeting for the period until the end of the next Annual General Meeting. The auditor examines the annual report and accounts as well as the management performed by the Board of Directors and the CEO. Following each financial year, the auditor shall submit an audit report to the Annual General Meeting. The company’s au - ditor reports its observations from the audit and its assessment of the company’s internal control to the Board of Directors. At the Annual General Meeting held on 7 May 2025 Öhrlings PricewaterhouseCoopers AB (PwC) was re-elected as the company’s auditor with Mikael Nilsson being the certified public accountant in charge of the audit. PwC audits Ascelia Pharma AB (publ) and all subsidiaries as applicable. At the Annual General Meeting, it was also resolved that the fees to the auditor should be paid in accordance with normal charging standards and approved invoice. Further information about fees to the auditor can be found in note 8. Statutory reports / Corporate governance report
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Ascelia Pharma Annual Report 2025 48 Lauren Barnes Born 1974. Member of the Board of Directors since 2020. Chairman of Commercialization Committee Professional background Lauren Barnes is the Head of Global Commercial at Blueprint, a Sanofi compa - ny. Lauren Barnes has extensive expertise and experience in pricing, market access, pre-commercialization and managed markets in particular for the US market. She has been involved in launch planning of more than 50 drugs, devices and diagnostics during her career. Prior to her current role Lauren was Vice President at Vertex Pharmaceuticals, Senior Vice President Avalere Health and has also held various roles at Amgen and the agency that runs the United States Medicare Program, the Centers for Medicare and Medicaid Services. She was previously Chair of the Cancer Support Community. Education MHS in Public Health from the Johns Hopkins School of Public Health and BA in Public Health from the Johns Hopkins University. Other ongoing assignments Board member of Ossium Health a pre-commercial, bio-engineering stem- cell research company in the United States. Holdings in Ascelia Pharma (3 March 2026) - Independence Independent in relation to the Company and its management and in relation to major shareholders. BOARD OF DIRECTORS Peter Benson Born 1955. Chairman of the Board of Directors since 2017. Member of Audit Committee, Commercialization Committee and Remuneration Committee Professional background Peter Benson led the formation of Sunstone Life Science Ventures and served as its Managing Partner from 2007-2019. In addition, Peter Benson has extensive experience from the Global Life Science industry as an investor, founder, board member and senior executive, including 10 listed companies. Previous positions include Head of Life Science Ventures at Vækstfonden (the Danish Growth Fund), President of Hospital Care and Senior Vice President at Pharmacia AB as well as Executive Vice President Marketing & Sales at Kabi Pharmacia Parenterals. Education Graduate in business administration from Lund University, Sweden. MA in Economics from the University of California, US, Diploma from IMD, Switzerland. Other ongoing assignments Chairman of Ascelia Incentive AB and Good Partners Media Group AB. Board member of Dextech Medical AB, Jollingham AB, Jollingham Group AB and PainDrainer AB. Deputy board member of Jelly Bean AB. Holdings in Ascelia Pharma (3 March 2026) 177,775 shares in Ascelia Pharma AB directly or through company. Peter Benson has also, directly and indirectly, invested in JellyBean AB that holds 122,007 shares in Ascelia Pharma AB as well as Jollingham AB that holds 200,000 shares in Ascelia Pharma AB. Peter Benson has a direct or indi - rect financial interest corresponding to 100 percent of the shares in Ascelia Pharma AB held by JellyBean AB and Jollingham AB. Independence Independent in relation to the company and its management and in relation to major shareholders. Helena Wennerström Born 1965. Member of the Board of Directors since 2017. Chairman of Audit Committee Professional background Helena Wennerström is former Vice President, Corporate Finance at ViaCon Group. Previously she was also Executive Vice President and Chief Financial Officer of Bulten AB (publ) listed on Nasdaq Stockholm. Earlier she was Senior Vice President and CFO at Finnveden Bulten AB and also had finance roles at Digitalfabriken AB and Topcon Sweden AB. Education M.Sc. in Business Administration and Economics from Örebro University. Other ongoing assignments - Holdings in Ascelia Pharma (3 March 2026) 108,944 shares in Ascelia Pharma AB. Independence Independent in relation to the company and its management, and in relation to major shareholders. Statutory reports / Board of directors
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Ascelia Pharma Annual Report 2025 49 BOARD OF DIRECTORS Hans Maier Born 1955. Member of the Board of Directors since 2017. Member of Commercialization Committee Professional background Hans Maier is a former biopharma executive. Hans has held global executive positions in Schering AG and Bayer AG and served on the Executive Committee of Bayer- Schering Pharma AG after the merger of both companies. After his industry career Hans co-founded BGM Associates GmbH, a specialized Healthcare and Life Science Strategy and Transaction Advisory and served as one of its Managing Partners until the end of 2025. Education Ph.D. in Economics and Diploma in Political Science from Freie Universität Berlin, Germany and Executive Program, Stanford University Graduate School of Business. Other ongoing assignments Chairman and Chief Executive Officer German Heart Center Foundation, Vice-Chairman Supervisory Board German Heart Center at Charité (Deutsches Herzzentrum der Charité), Member Supervisory Board Charité Universitätsmedizin Berlin. Hans is a Visiting Professor of International Strategic Management at Berlin School of Economics and Law and Chairman of the Board of Trustees of the Fraunhofer Mevis Institute for Digital Medicine. Holdings in Ascelia Pharma (3 March 2026) 20,000 shares in Ascelia Pharma AB. Independence Independent in relation to the company and its management and in relation to major shareholders. Marianne Kock Born 1955 Member of the Board of Directors since 2024. Member of Commercialization Committee and Chairman of Remuneration Committee Professional background Marianne Kock has extensive experience from Ferring Pharmaceuticals A/S and Novo Nordisk where she has held senior positions. During her 18 years’ tenure in Novo Nordisk A/S, she held leadership positions across the development or - ganization, including as Vice President of Regulatory Support worldwide. She joined Ferring Pharmaceuticals in 2002, where she first served as Senior Vice President of Global Regulatory Affairs and established the R&D activities in Japan and China. Her extensive experience in bringing products from research to launch includes interactions with regulatory authorities worldwide. She was later appointed General Manager for Ferring Pharmaceuticals A/S and where she is now chairperson of the Board of Directors. She is also board member of several small biotech companies. Education Pharmacist and MBA- business Other ongoing assignments Board member of Asarina Pharma AB (publ), Biosergen AB and the Danish Chamber of Commerce (Dk. Dansk Erhverv). CEO and board member of Farmaceutisk Laboratorium Ferring A/S. Chairman of Ferring Pharmaceuticals A/S. Member of the management team (Dk. Direktion) in Pharma Insight ApS. Holdings in Ascelia Pharma (3 March 2026) - Independence Independent in relation to the company and its management, and in relation to major shareholders. Statutory reports / Board of directors
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Ascelia Pharma Annual Report 2025 50 MANAGEMENT Magnus Corfitzen Born 1975. Chief Executive Officer. Joined in 2014. Professional background Magnus Corfitzen has extensive experience from invest - ing, building and growing Life Science companies in var - ious roles including operational activities or investment responsibilities for public and private biotech and med - tech companies. Magnus also has board experience from a number of Life Science companies. Magnus has pre - viously inter alia been Investment Director at Sunstone Capital A/S and Investment Director at Vækstfonden (the Danish Growth Fund). Prior to entering the health - care venture capital field he was a Portfolio Manager at Danske Capital with responsibility for investments into listed biotech and medtech companies and he started his career at McKinsey & Company. Education M.Sc. in Mathematical Economics from the University of Aarhus, Denmark, which included studies at Harvard University, US. Other ongoing assignments Board member of Ascelia Pharma Inc. and Ascelia Incentive AB. CEO of Oncoral Pharma ApS. Holdings in Ascelia Pharma (3 March 2026) 806,720 shares in Ascelia Pharma AB. Anton Hansson Born 1991. Chief Financial Officer. Joined in 2026. Professional background Anton Hansson has more than 10 years of corporate finance experience, both from corporate and advisory roles. Before joining Ascelia Pharma in 2026, Anton held the position of Associate Director at KPMG’s Corporate Finance practice, with a primary focus in M&A. Previous experiences include Lantmännen, where Anton worked with M&A and Business Development. Education M.Sc. in Corporate Finance, Lund University, Sweden, which included studies at the University of Exeter, UK. Other ongoing assignments - Holdings in Ascelia Pharma (3 March 2026) - Andreas Norlin Born 1970. Chief Scientific Officer. Joined in 2020. Professional background Andreas Norlin has more than 25 years experience from research, preclinical- and clinical-stage drug develop - ment within e.g., oncology, inflammatory disease and diabetes. During the most recent years before joining Ascelia, Andreas had strategic executive roles in several biotech start-up companies in the Greater Copenhagen area. Before that he served as Project Vice President and held other development project leadership po - sitions at Novo Nordisk, Denmark. Andreas started his career with various positions in preclinical R&D at Camurus AB, Sweden. Andreas joined Ascelia Pharma in 2020 as Project Director, Head of Preclinical. He is CSO and a member of the Management Team since 2022. Education M.Sc. in Biology and PhD in Animal Physiology from Lund University, Sweden. In addition, he has training within Drug Development Strategy and Medical Marketing from Copenhagen Business School. Other ongoing assignments Member of the Board of Directors for Apoglyx AB. Founder of and Senior advisor at Xkout Bioscience AB. Holdings in Ascelia Pharma (3 March 2026) 138,164 shares in Ascelia Pharma AB. Jennie Wilborgsson Born 1984. Chief Operating Officer. Joined in 2022. Professional background Jennie Wilborgsson has more than 15 years experience within clinical drug development from both late stage pharmaceutical companies and the consultancy busi - ness. Before joining Ascelia Pharma in 2022, Jennie was heading up the global clinical project management de - partment in KLIFO A/S and has prior to that held various leadership positions within clinical operations in Ferring Pharmaceuticals. Education B.Sc. Medical Science, Lund University, Sweden Other ongoing assignments - Holdings in Ascelia Pharma (3 March 2026) 77,672 shares in Ascelia Pharma AB. Statutory reports / Management
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Ascelia Pharma Annual Report 2025 51 CONSOLIDATED INCOME STATEMENT 52 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 52 CONSOLIDATED BALANCE SHEET 53 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 54 CONSOLIDATED CASH FLOW STATEMENT 55 PARENT COMPANY – INCOME STATEMENT 56 PARENT COMPANY – BALANCE SHEET 57 PARENT COMPANY – STATEMENTS OF CHANGES IN EQUITY 58 PARENT COMPANY – CASH FLOW STATEMENT 59 NOTES 60 DECLARATION AND SIGNATURES 86 AUDITOR’S REPORT 87 GLOSSARY 91 ALTERNATIVE PERFORMANCE MEASURES 92 FINANCIAL INFORMATION
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Ascelia Pharma Annual Report 2025 52 Financial information / Group Consolidated Income Statement Consolidated Statement of Comprehensive Income SEK in thousands (unless otherwise stated)* Note 2025 2024 Loss for the period -76,253 -80,029 Other comprehensive income Currency translation of subsidiaries** 3, 23 134 303 Other comprehensive income for the period 134 303 T otal comprehensive income for the period -76,119 -79,726 * Some figures are rounded, so amounts might not always appear to match when added up. ** Will be classified to profit and loss when specific conditions are met. SEK in thousands (unless otherwise stated)* Note 2025 2024 Net sales – – Gross profit/loss – – Other operating income 10 148 459 Administrative costs 6 -17,314 -17,995 Research and development costs 6 -56,816 -50,798 Commercial preparation costs 6 – 669 Other operating costs 10 -391 -100 Operating result 7, 8, 9 -74,374 -67,766 Financial income 11 3,159 1,584 Financial costs 11 -5,507 -13,942 Net financial items -2,348 -12,358 Loss before tax -76,721 -80,124 Tax 12 468 94 Loss for the period -76,253 -80,029 Attributable to: Owners of the Parent Company -76,253 -80,029 Non-controlling interest – – Earnings per share 13 Before and after dilution (SEK) -0.67 -1.48
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Ascelia Pharma Annual Report 2025 53 Financial information / Group Consolidated Balance Sheet SEK in thousands* Note 31 Dec 2025 31 Dec 2024 ASSETS Intangible assets 14 57,070 57,078 Tangible assets Equipment 15 52 15 Right-of-use assets 16 885 109 T otal fixed assets 58,007 57,202 Current assets Advance payments to suppliers 19 145 1,755 Current receivables Income tax receivables 12 1,014 632 Other receivables 20, 22 1,756 5,054 Prepaid expenses and accrued income 21 1,159 1,022 Cash and bank balances 22, 26 49,861 75,256 T otal current assets 53,935 83,718 T otal assets 111,941 140,920 EQUITY 23 Share capital 127,903 97,193 Other contributed capital 771,366 721,750 Reserve of exchange differences on translation 1,108 974 Loss brought forward (incl. net profit/loss for the period) -800,904 -740,973 Equity attributable to Parent Company shareholders 99,472 78,944 T otal equity 99,472 78,944 LIABILITIES Long-term liabilities Lease liabilities 16 72 – T otal long-term liabilities 72 – Current liabilities Accounts payable 22 2,042 4,733 Tax payable 12 – – Other liabilities 22 973 19,113 Interest bearing liabilities 22 – 25,225 Current lease liabilities 16 898 172 Accrued expenses and deferred income 24 8,484 12,733 T otal current liabilities 12,397 61,976 T otal liabilities 12,469 61,976 T otal equity and liabilities 111,941 140,920 * Some figures are rounded, so amounts might not always appear to match when added up.
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Ascelia Pharma Annual Report 2025 54 Financial information / Group Attributable to parent company shareholders SEK in thousands* Note Share capital Other contributed capital Translation reserv Retained earnings T otal Non-controlling interests T otal equity Opening balance as of 1 Jan 2024 34,871 678,747 671 -639,962 74,328 – 74,328 Comprehensive income Profit/loss for the period – – – -80,029 -80,029 – -80,029 Other comprehensive income Exchange differences 23 – – 303 – 303 – 303 T otal comprehensive income – – 303 -80,029 -79,726 – -79,726 Transactions with shareholders New issue of common shares 23 62,322 43,002 – – 105,324 – 105,324 Issuance expenses 23 – – – -15,207 -15,207 – -15,207 Common shares: Conversion from C-shares 23 -26 – – – -26 – -26 C-shares: Resolution of C-shares 23 26 – – – 26 – 26 Settlement of debt for warrants 23 – – – -12,385 -12,385 – -12,385 Call option premium in relation to loan facility 23 – – – 2,165 2,165 – 2,165 Share-based remuneration to employees 7 – – – 4,446 4,446 – 4,446 T otal transactions with shareholders 62,322 43,002 – -20,982 84,343 – 84,343 Closing balance as of 31 Dec 2024 97,193 721,750 974 -740,973 78,944 – 78,944 Comprehensive income Profit/loss for the period – – – -76,253 -76,253 – -76,253 Other comprehensive income Exchange differences – – 134 – 134 – 134 T otal comprehensive income – – 134 -76,253 -76,119 – -76,119 Transactions with shareholders New issue of common shares 23 30,709 49,616 – – 80,325 – 80,325 Issuance expenses 23 – – – -3,808 -3,808 – -3,808 Common shares: Conversion from C-shares 23 -53 – – – -53 – -53 C-shares: Resolution of C-shares 23 53 – – – 53 – 53 Settlement of debt for warrants 23 – – – 16,100 16,100 – 16,100 Call option premium in relation to loan facility 23 – – – – – – – Share-based remuneration to employees 7 – – – 4,030 4,030 – 4,030 T otal transactions with shareholders 30,709 49,616 – 16,322 96,647 – 96,647 Closing balance as of 31 Dec 2025 127,903 771,366 1,108 -800,904 99,472 – 99,472 * Some figures are rounded, so amounts might not always appear to match when added up. Consolidated Statements of Changes in Equity
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Ascelia Pharma Annual Report 2025 55 Financial information / Group Consolidated Cash Flow Statement SEK in thousands* Note 2025 2024 Operating activities Operating result -74,374 -67,766 Expensed share based remuneration not included in cash flow 7, 26 4,164 4,340 Adjustment for other items not included in cash flow 9, 16, 26 852 49 Interest received 811 773 Interest paid -1,739 -5,224 Income tax paid/received 72 1,453 Cash flow from operating activities before changes in working capital -70,213 -66,374 Cash flow from changes in working capital Increase (-)/Decrease (+) of advance payments 1,610 1,678 Increase (-)/Decrease (+) of operating receivables 3,402 -4,988 Increase (+)/Decrease (-) of accounts payable -2,687 3,206 Increase (+)/Decrease (-) of other liabilities -4,364 3,634 Change in working capital -2,039 3,530 Cash flow used in operating activities -72,252 -62,844 Investing activities Investment in equipment -57 – Divestment of right-of-use assets – – Cash flow from investing activities -57 – Financing activities New share issue 23 72,825 105,324 Transaction costs for issuance 23 -3,808 -15,207 Conversion from C-shares 23 -53 -26 Resolution of C-shares 23 53 26 Convertible bond issue 23 – 733 New loans 22 – 32,725 Amortisation of loan -20,000 -7,500 Amortisation of lease liabilities -805 -887 Cash flow from financing activities 48,212 115,187 Cash flow for the period -24,097 52,343 Cash and cash equivalents at start of period 26 75,256 21,855 Exchange rate differences in cash and cash equivalents -1,298 1,058 Cash and cash equivalents at end of period 26 49,861 75,256 * Some figures are rounded, so amounts might not always appear to match when added up.
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Ascelia Pharma Annual Report 2025 56 Financial information / Parent Parent Company – Income Statement SEK in thousands* Note 2025 2024 Net sales 5 482 214 Gross profit/loss 482 214 Other operating income 10 87 10 Administrative costs 6 -17,135 -17,825 Research and development costs 6 -55,112 -50,571 Commercial preparation costs 6 – 669 Other operating costs 10 -85 -32 Operating result 7, 8, 9 -71,762 -67,536 Net financial items Finance income 11 7,026 5,178 Finance costs 11 -5,369 -14,136 Result from other long-term receivables 11 -6,194 663 Net financial costs -4,537 -8,295 Loss before tax -76,300 -75,831 Group contribution – – Tax 12 – – Loss for the period -76,300 -75,831
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Ascelia Pharma Annual Report 2025 57 Financial information / Parent Parent Company – Balance Sheet SEK in thousand* Note 31 Dec 2025 31 Dec 2024 ASSETS Tangible assets Equipment 15 52 15 Financial assets Shares in group companies 2, 17 58,068 58,068 Long-term receivables from group companies 18 39,187 39,255 T otal fixed assets 97,307 97,338 Current assets Advance payments to suppliers 19 145 1,755 Current receivables Receivables from group companies 3,229 2,560 Income tax receivables 12 551 534 Other receivables 20, 22 1,702 5,011 Prepaid expenses and accrued income 21 1,151 1,004 Cash and bank balances 22, 26 48,685 74,440 T otal current assets 55,462 85,303 T otal assets 152,769 182,641 EQUITY 23 Restricted equity Share capital 127,903 97,193 Non-restricted equity Share premium reserve 771,366 721,750 Loss brought forward -681,632 -622,123 Loss for the period -76,300 -75,831 T otal equity 141,336 120,989 LIABILITIES Current liabilities Accounts payable 22 2,031 4,632 Other liabilities 22 973 19,113 Interest bearing liabilities 22 – 25,225 Accrued expenses and deferred income 24 8,428 12,683 T otal current liabilities 11,432 61,652 T otal liabilities 11,432 61,652 T otal equity and liabilities 152,769 182,641 * Some figures are rounded, so amounts might not always appear to match when added up.
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Ascelia Pharma Annual Report 2025 58 Financial information / Parent Parent Company – Statements of Changes in Equity Restricted equity Unrestricted equity SEK in thousands* Note Share capital Premium reserv Retained earnings T otal equity Opening balance as of 1 Jan 2024 34,871 678,747 -601,142 112,477 Comprehensive income Profit/loss for the period – – -75,831 -75,831 T otal comprehensive income – – -75,831 -75,831 Transactions with shareholders New issue of common shares 23 62,322 43,002 – 105,324 Issuance expenses 23 – – -15,207 -15,207 Common shares: Conversion from C-shares 23 -26 – – -26 C-shares: Resolution of C-shares 23 26 – – 26 Settlement of debt for warrants 23 – – -12,385 -12,385 Call option premium in relation to loan facility 23 – – 2,165 2,165 Share-based remuneration to employees 6 – – 4,446 4,446 T otal transactions with shareholders 62,322 43,002 -20,981 84,343 Closing balance as of 31 Dec 2024 97,193 721,750 -697,954 120,989 Comprehensive income Profit/loss for the period – – -76,300 -76,300 T otal comprehensive income – – -76,300 -76,300 Transactions with shareholders New issue of common shares 23 30,709 49,616 – 80,325 Issuance expenses 23 – – -3,808 -3,808 Common shares: Conversion from C-shares 23 -53 – – -53 C-shares: Resolution of C-shares 23 53 – – 53 Settlement of debt for warrants 23 – – 16,100 16,100 Call option premium in relation to loan facility 23 – – – – Share-based remuneration to employees 6 – – 4,030 4,030 T otal transactions with shareholders 30,709 49,616 16,322 96,647 Closing balance as of 31 Dec 2025 127,903 771,366 -757,932 141,336 * Some figures are rounded, so amounts might not always appear to match when added up.
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Ascelia Pharma Annual Report 2025 59 Financial information / Parent Parent Company – Cash Flow Statement SEK in thousands* Note 2025 2024 Operating activities Operating result -71,762 -67,536 Expensed share based remuneration not included in cash flow 7, 26 4,164 4,340 Adjustment for other items not included in cash flow 9, 16, 26 21 -814 Interest received 811 756 Interest paid -1,561 -5,158 Income tax paid/received -17 1,134 Cash flow from operating activities before changes in working capital -68,345 -67,277 Cash flow from changes in working capital Increase (-)/Decrease (+) of advance payments 1,610 1,678 Increase (-)/Decrease (+) of operating receivables 2,493 -4,978 Increase (+)/Decrease (-) of accounts payable -2,601 3,143 Increase (+)/Decrease (-) of other liabilities -4,372 3,683 Change in working capital -2,870 3,527 Cash flow used in operating activities -71,215 -63,750 Investing activities Investment in equipment -57 – Group contributions – – Cash flow from investing activities -57 – Financing activities New share issue 23 72,825 105,324 Issuance costs 23 -3,808 -15,207 Conversion from C-shares 23 -53 -26 Resolution of C-shares 23 53 26 Convertible bond issue 23 – 733 New loans 22 – 32,725 Amortisation of loan -20,000 -7,500 Loans to affiliated companies 18 -2,259 – Repayment of loans from affiliated companies 18 – 13,456 Cash flow from financing activities 46,758 129,531 Cash flow for the period -24,515 65,781 Cash and cash equivalents at start of period 26 74,440 8,199 Exchange rate differences in cash and cash equivalents -1,240 460 Cash and cash equivalents at the end of the period 26 48,685 74,440 * Some figures are rounded, so amounts might not always appear to match when added up.
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Ascelia Pharma Annual Report 2025 60 Financial information / Notes NOTE 1 GENERAL INFORMATION Ascelia Pharma AB (publ) with corporate identity number 556571-8797 and its subsidiaries (jointly the Group) develop drugs within oncology. The Parent Company conducts operations in the legal form of a limited liability company, with its registered office in Malmö, Sweden. The company’s postal address is Hyllie Boulevard 34, SE-215 32 Malmö, Sweden. The company’s shares are since 13 March 2019 listed on Nasdaq Stockholm. This annual report and the consolidated financial statements were approved for publication by the Board on 9 April 2026 and will be presented to the Annual General Meeting of shareholders on 4 May 2026. NOTE 2 SPECIFICATION OF THE GROUP’S HOLDING OF PARTICIPATIONS IN GROUP COMPANIES Holdings in the subsidiary Carrying amount Subsidiary/Corporate identity number/Registered office Number of participation rights Participating interest in % SEK 31 Dec 2025 31 Dec 2024 Oncoral Pharma ApS, CVR No. 35 48 12 14, Copenhagen, Denmark 145,919 100 58,018,000 58,018,000 Ascelia Incentive AB, Reg.No. 559129-4615, Malmö, Sweden 50,000 100 50,000 50,000 Ascelia Pharma Inc., FEIN No. 38 4179470, New Jersey, USA 1,000 100 8 8 Total carrying amount of year-end 58,068,008 58,068,008 The share of capital in all of the above holdings is equivalent to voting rights. NOTES
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Ascelia Pharma Annual Report 2025 61 Financial information / Notes NOTE 3 SUMMARY OF IMPORTANT ACCOUNTING POLICIES AND DISCLOSURES The most important accounting policies for the preparation of this year’s consolidated financial statements are found below. (a) Statement of compliance with legislation and accounting standards The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) adopted by the EU. In addition, the recommendation RFR 1 Supplementary Accounting Rules for Groups, issued by the Swedish Financial Reporting Board, has been applied. The parent company has applied the same accounting policies as those applied in the consolidated financial statements except as set out below in the section Parent company’s accounting principles. In addition to these standards, both the Swedish Companies Act and the Swedish Annual Accounts Act require certain supplemen - tary disclosure to be made. The accounting policies applied in the preparation of the consoli - dated financial statements are disclosed in the respective notes in order to provide a better understanding of the respective account - ing field. See the table below for reference to the note in which each significant accounting policy is used and the applicable IFRS standard that is deemed to have significant influence. ACCOUNTING POLICY NOTE IFRS STANDARD Company acquisitions 3 Consolidated financial statements IFRS 3 Segment 3 Segment reporting IFRS 8 Operating expenses 6 Operating expenses IAS 1 Share-based remuneration 7 Employees, employee benefit expenses and remuneration to the Board IFRS 2 Financial income and expenses 11 Financial income and expenses IFRS 9 Income tax 12 Tax IAS 12 Earnings per share 13 Earnings per share IAS 33 Intangible assets 14 Intangible assets IAS 36, IAS 38 Property, plant and equipment 15 Property, plant and equipment IAS 16, IAS 36 Right-of-use assets 16 Leasing IFRS 16 Accounts payable, warrants and interest bearing liabilities 22 Financial instruments by category IAS 32, IFRS 7, IFRS 9, IFRS 13 Cash flow statement 26 Cash flow IAS 7 Transactions with related parties 27 Transactions with related parties IAS 24
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Ascelia Pharma Annual Report 2025 62 Financial information / Notes (b) Important estimates and assessments for accounting purposes Preparing the financial statements in accordance with IFRS requires that the management team make important accounting estimates as well as assumptions that influence the application of the accounting principles and the carrying amounts of assets, liabilities, revenue, and expenses. Actual outcomes may differ from these estimates and assumptions. Changes in estimates are reported in the period in which the change is made if the change affects only that period, or in the period in which the change is made and future periods if the change affects both the current and future periods. The areas subject to a high degree of assessment or complexity, or areas in which assumptions and estimates are of considerable importance to the consolidated financial statements, are indicated in the following table. The estimates and assumptions are regularly reviewed, and the effect on the carrying amounts is recognized in the income statement. ESTIMATES AND ASSESSMENTS NOTE Capitalisation of develop - ment expenses 6 Operating expenses by type of cost Share-based incentive programs 7 Employees, employee benefit expenses and remuneration to the Board Assessment of tax deficit 12 Tax Asset acquisitions 14 Intangible assets Impairment of intangible assets 14 Intangible assets Leases 16 Right-of-use assets Financial liabilities 22 Financial instruments by category Estimates and assessments are evaluated continuously and based on historical experience and other factors, including expectations of future events considered reasonable under the prevailing conditions. The Group makes estimates and assumptions about the future. The estimates for accounting purposes that result from these assumptions, by definition, seldom equal the related actual results. (c) Consolidated financial statements Subsidiaries Subsidiaries are entities over which Ascelia Pharma AB has a controlling influence. Controlling influence exists if Ascelia Pharma AB has power over the investee, is exposed to or is entitled to variable return from its involvement and can, through its influence over the investment, affect returns. When assessing whether controlling influences exist, potential voting rights are considered as well as whether there is de facto control. The acquisition method is used for recognizing the Group’s acquisition of subsidiaries. Under this method, an acquisition of a subsidiary is treated as a transaction in which the Group indirectly acquires the assets and assumes the liabilities. The purchase price allocation determines the fair value of the acquired identifiable assets and assumed liabilities, as well as any non-controlling interests, on the acquisition date. Transaction fees that arise, with the exception of transaction fees attributable to equity instru - ments on issue or debt instruments, are recognized directly through the Income Statement. In the event of an acquisition of a subsidiary in which the transferred payment comprises own share, the payment’s value in the purchase price allocation is based on the actual share value at the time of the acquisition. Asset acquisition When acquisitions of subsidiaries involve the acquisition of net assets that do not comprise operations, the acquisition cost of each identifiable asset and liability is allocated up based on its fair value at the time of acquisition. Transaction costs are added to the purchase price of the acquired net assets. When the consideration is paid by own shares the acquired assets and liabilities are measured at fair value based on the acquired assets and liabilities at the time of the acquisition, provided that the fair value of the acquired assets and liabilities (in rare cases) cannot be reliably estimated. In the latter case the acquired net assets are measured based on the fair value of the own shares. Elimination of transactions between Group companies Intra-group transactions and balance sheet items, as well as unrealized gains or losses that arise from intra-group transactions between companies within the Group are eliminated when preparing the consolidated accounts. Unrealized losses are eliminated in the same way as unrealized profits but only to the extent that there is no impairment requirement. Translation of foreign currencies Items in the financial statements for the various Group units are measured in the currency used in the economic environment where each company primarily operates (the functional currency). In the consolidated financial statements, the Swedish krona (SEK) is used, which is the Parent Company’s functional and reporting currency. Transactions in foreign currencies are translated into the functional currency at the exchange rate prevailing at the date of the transaction. Exchange gains and losses arising from the settlement of such transactions and the recalculation of monetary assets and liabilities in foreign currencies at the rate on the balance sheet date are recognized in the income statement. Exchange gains and losses attributable to loans and cash and cash equivalents are recognized as financial income and expenses respectively. All other exchange gains and losses are recognized as Other operating income or Other operating expenses. Non-monetary assets and liabilities measured in terms of historical cost in a foreign currency are translated using the exchange rate prevailing at the date of the transaction. Non-monetary assets and liabilities that are measured at fair value are retranslated to the functional currency at the exchange rate prevailing at the date that the fair value was determined. The profit and financial position of all Group companies are translated into the Group’s reporting currency. Assets and liabilities are translated at the rate on the balance sheet date, income and expenses are translated at the average rate and any resulting exchange rate differences are recognized as a separate portion of equity. Fair value adjustments and goodwill arising from the acquisition of a foreign operation are recognized as assets and liabilities in that operation and translated at the rate on the balance sheet date. Translation differences that arise in currency translations of foreign operations are recognized in other comprehensive income and accrued in a separate component in equity – the translation reserve. When control of a foreign operation ceases, the accumu- Note 3, cont.
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Ascelia Pharma Annual Report 2025 63 Financial information / Notes lated translation differences attributable to the operation are realized, at which point they are reclassified in equity to profit/loss for the year. In the case of a sale where the controlling interest still exists, a proportional share of the cumulative translation differ- ences is transferred from the translation reserve to non-controlling interests. (d) Classification Fixed assets comprise amounts that are expected to be recovered or paid more than 12 months after the balance sheet date, whereas current assets comprise amounts expected to be recovered or paid within 12 months from the balance sheet date. Long-term liabilities comprise amounts that Ascelia Pharma, as per the end of the reporting period, has an unconditional right to decide to pay later than 12 months after the end of the reporting period. If there is no such right at the end of the reporting period or if there is a liability for trading or if a liability is expected to be settled within the normal business cycle – the liability amount is recognized as a current liability. (e) Operating segment recognition An operating segment is a part of the Group that conducts business operations from which it generates revenue and incurs expenses and for which independent financial information is available. The Group consists of only one reportable segment, Ascelia Pharma, as it is at this level that the Group’s management team has responsibility for the allocation of resources and assesses the business’ results. The Group has operations in Sweden (where the parent company has its registered office) and in Denmark. Operating segments are reported in a way that is consistent with the internal reporting submitted to the highest executive decision maker. The highest executive decision maker is the role with responsibility for allocating resources and making assessments of the results of the operating segments. The executive management team of the Group has been identified as having this role. (f) New or amended accounting standards applied in 2025 The following amended accounting standards were applicable from January 1, 2025: IAS 21 and IFRS 1. The amended standards did not have any material impact on Ascelia Pharma’s financial statements. g) New standards and interpretations not yet applied by the Group IFRS 18, which enters into force from 1 January 2027, may affect the presentation of the financial statements. During 2026, the company is analyzing how the standard will impact the reporting. No other IFRS and IFRIC interpretations yet to enter into force are expected to have a significant impact on the Group. PARENT COMPANY’S ACCOUNTING PRINCIPLES The parent company has prepared the historical financial information according to the Annual Accounts Act (1995:1554) and the Swedish Financial Reporting Board’s recommendation RFR 2 Accounting for Legal Entities. In addition, the Swedish Financial Reporting Board’s issued statements applicable to listed companies are applied. The application of RFR 2 means that the parent company in the historical financial information for the legal entity shall apply all of the IFRS Standards and statements adopted by the EU to the extent allowed according to the Swedish Annual Accounts Act, the Act on Safeguarding of Pension Commitments, and with respect to the link between accounting and taxation. The recommendation states exceptions from and additions to IFRS Standards that shall be made. Differences between the Group’s and the parent company’s accounting principles The accounting principles of the parent company are consistent in all material respects with the accounting principles of the Group. The differences between the Group’s and the parent company’s accounting principles are described below. The accounting principles given below for the parent company have been consistently applied for all periods as presented in the parent company’s financial statements. Classification and presentation The parent company’s income statement and balance sheet are prepared in accordance with the model detailed in the Annual Accounts Act, while the statement of profit or loss and other comprehensive income, the statement of changes in equity, and the statement of cash flows are based on IAS 1 Presentation of Financial Statements and IAS 7 Statement of Cash Flows respec - tively. The differences in the income statement and balance sheet of the parent company compared with the consolidated accounts mainly involve the reporting of financial income and expenses, assets, and equity. Subsidiaries Participations in subsidiaries are recognized in the parent company in accordance with the cost method. Thus, transaction expenses are included in the carrying amount of holdings in subsidiaries. In the consolidated accounts, transaction expenses attributable to subsidiaries are directly recognized in the profit/loss when they are incurred. Financial instruments and hedge accounting Due to the link between accounting and taxation, the regulations pertaining to the financial instruments in IFRS 9 are not applied to the parent company as a legal entity. Within the parent company, financial assets are measured at their acquisition values less any impairment and financial current assets according to the lower of cost and net realizable value. Note 3, cont.
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Ascelia Pharma Annual Report 2025 64 Financial information / Notes NOTE 4 FINANCIAL INSTRUMENTS AND FINANCIAL RISKS In its operations, the Group is exposed to various financial risks. Examples of these are liquidity and financing risks, as well as currency risks. The Board determines risk management policies. Financial activities in the form of risk management, liquidity management and financing are managed for the Group as a whole by the Parent Company. The Group’s overall risk management focuses on the unpredictability of financial markets and strives to limit undesirable impact on its result and financial position, to the extent it is possible. Liquidity risks and financing risks Liquidity risks and financing risks are the risks that the Group will not have access to financing in order to fulfil its contractual obligations or that this can only be done at a significantly increased cost. Ascelia Pharma’s operations in research and development activi - ties require continuous access to capital as the available liquidity is gradually consumed. The Group does not currently have a steady inflow of revenues; instead, revenues arise irregularly, for example through partnership agreements with pharmaceutical companies. As of todays date, Ascelia Pharma assesses that it does not have full financing for the coming twelve months but that Ascelia Pharma currently has a cash runway extending into Q4 2026. Beyond that point, Ascelia Pharma will be dependent on revenues or other fi - nancing sources. Depending on the timing of when cash flow becomes positive, Ascelia Pharma may require additional capital. There is a risk that such financing may not be available when needed or on favorable terms, which could have a material impact on the operations and create uncertainty regarding ongoing and future operations. The Board of Directors continuously evaluates various financing possibilities and risks as described above and has concluded that the Annual Report can be prepared on a going concern basis in ac - cordance with IAS 8. In accordance with Ascelia Pharma’s financial policy, liquid funds are only to be placed in bank balances or highly liquid fixed income funds or interest-bearing securities with low credit risk. The finan - cial policy also stipulates that bank deposit shall only be with banks with a long-term credit rating of least BBB+ from Standard & Poor’s or equivalent from Moody’s and/or Fitch. Currency risks Transaction exposure Ascelia Pharma purchases services related to drug development particularly in USD, EUR and DKK. The effect of a weakening of Swedish crown by 10 percent on each currency are described in the table above. The currency risk management in Ascelia Pharma focuses on transaction risk. Managing translation currency exposure in equity is not deemed relevant to safeguard operations (changes in equity from currency movement is not foreseen to expose Ascelia to significant risks). According to Ascelia Pharma’s financial policy, management of currency exposures shall be based on contracted orders/ purchases and be highly probable forecasted cash flows. Transac - tion exposure is handled by exchanging bank balances in SEK into foreign currencies (mainly USD, EUR and DKK) to match upcoming cash outflow. Financial hedging instruments such as futures, forwards and options are not used. Currency risk is also present in the parent company through intra-company loans from Ascelia Pharma AB to Oncoral Pharma ApS denominated in USD and DKK. A weakening of SEK of 10 percent against USD and DKK would result in an increased loan receivable for the parent company of around SEK 5.0 million. Purchases in each currency Cost increase with 10% depreciation of SEK SEK in thousands 2025 2024 2025 2024 DKK 3,217 2,410 322 241 EUR 8,258 8,343 826 834 USD 13,809 7,579 1,381 758 JPY – – – – GBP 2,809 43 281 4 CAD – – – – Total 28,093 18,375 2,809 1,837 Maturity analysis on financial liabilities for the Group 31 December 2025 31 December 2024 SEK in thousands 0-3 months 3-6 months 6-12 months >12 months 0-3 months 3-6 months 6-12 months >12 months Short-term loans – – – – – – 27,50 0 – Warrants – – – – – 18,156 – – Accounts payable 2,042 – – – 4,733 – – – Other liabilities and accrued expenses 9,457 – – – 13,690 – – – Total 11,499 – – – 18,423 18,156 27,50 0 –
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Ascelia Pharma Annual Report 2025 65 Financial information / Notes NOTE 6 OPERATING EXPENSES BY TYPE OF COST The Group reports its income statement based on functions. The key cost items are presented below. Group Parent company SEK in thousand 2025 2024 2025 2024 Research and Development costs Drug development 32,973 29,679 32,944 29,631 Cost of remuneration to employees* 20,163 19,831 20,162 19,831 Manufacturing 3,680 1,288 2,006 1,109 Total 56,816 50,798 55,112 50,571 Administration costs Costs of remuneration to employees and board* 10,831 10,778 10,831 10,778 Other administration costs 6,483 7,217 6,304 7,047 Total 17,314 17,995 17,135 17,825 Commercial preparation costs Cost of remuneration to employees* – -669 – -669 Commercial preparation – – – – Total – -669 – -669 Other operating expenses Currency differences related to operations 391 100 85 32 Total 391 100 85 32 *Cost of remuneration to employees encompass all types of remuneration including base salary, variable pay, pension, insurance, other benefits, social security costs as well as recognised costs for long-term incentive programs. A positive effect was recognized in 2024 related to cost savings for employees for Commercial preparation costs. ACCOUNTING POLICIES The income statement is structured according to function. The functions are as follows: “Research and development costs” refers to costs for clinical research and development of drugs, raw material and manufactur - ing costs, salaries and services acquired and costs of premises. “Administrative costs” refers to costs for salaries, board remuneration, corporate costs including office and equipment, investor relation activities and administrative costs. “Commercial preparation costs” refers to costs for the Group’s commercial organization, including salaries and external consul - tancy services. IMPORTANT ESTIMATES AND ASSESSMENTS FOR ACCOUNTING PURPOSES Capitalisation of development expenses For the period Jan-Dec 2025, the criteria for classifying R&D costs as an asset according to IAS 38 has not been met (capitalisation of development expenses is normally done in connection with final regulatory approval). Hence, all R&D costs related to the develop - ment of the product candidates have been expensed. NOTE 5 NET SALES Parent company SEK in thousands 2025 2024 Intra-Group services 482 214 Total net sales 482 214 Intra-Group services from the parent company to the subsidiaries mainly include work related to clinical research and development of drugs, as well as administrative support. Pricing of intra-group services has taken place on market terms. Interest rate risks Interest rate risk is the risk that a change in market interest rates will have a negative impact on the result. The Group's exposure to interest rate risk linked to financial liabilities is assessed as small, as the Group as of the balance date does not hold any inter- est-bearing liabilities. At the beginning of 2025, the Company had a short-term loan of SEK 27.5 million of which SEK 7.5 million was a convertible loan. During 2025, the loan of SEK 20 million was repaid and the convertible loan was converted in full. Credit risk The Group’s credit risk is primarily attributable to bank deposits. This risk is considered to be low because the cash in bank accounts are in large Swedish and Danish banks with high credit ratings. Counterparty risk associated with customers or business partners is currently not applicable given the pre-revenue state of the company. Carrying amount of financial assets and financial liabilities per valuation category The carrying value of financial assets and financial liabilities are due to its short-term maturity considered to be reasonable estimates of the fair value for each class of financial assets and financial liabilities. Note 4, cont.
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Ascelia Pharma Annual Report 2025 66 Financial information / Notes NOTE 7 EMPLOYEES, EMPLOYEE BENEFIT EXPENSES AND REMUNERATION TO THE BOARD OF DIRECTORS Average number of employees Number of people Of whom men, % 2025 2024 2025 2024 Parent company Sweden 11 11 27% 27% Total for parent company 11 11 27% 27% Subsidiaries Denmark – – – – Sweden – – – – Total for subsidiaries – – – – Group total 11 11 27% 27% There are no employees in the subsidiaries. Gender division on the board and in executive management at year-end Number of people Of whom women, % 2025 2024 2025 2024 Board of Directors 5 6 60% 50% Executive management 4 6 50% 67% Salaries, other remuneration and social security expenses Salaries and other remuneration Social secutiry expenses SEK in thousands 2025 2024 2025 2024 Parent Company 16,967 16,718 7,633 6,642 (of which pension costs) – – 3,898 3,746 Subsidiaries – – – – (of which pension costs) – – – – Total salaries, other remuneration and social security expenses 16,967 16,718 7,633 6,642 (of which pension costs) – – 3,898 3,746
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Ascelia Pharma Annual Report 2025 67 Financial information / Notes Note 7, cont. Remuneration to the board and senior executives 2025 2024 SEK in thousands Remunera - tion1)/Base salary (incl. holiday pay) Other benefits Variable remuneration Share-based remuneration 2) Pension expenses 3) Remunera - tion1)/Base salary (incl. holiday pay) Other benefits Variable remuneration Share-based remuneration 2) Pension expenses 3) The Group The Board Peter Benson 566 – – – – 550 – – – – Lauren Barnes 263 – – – – 273 – – – – Marianne Kock 304 – – – – 48 – – – – Hans Maier 263 – – – – 263 – – – – Niels Mengel (resigned May 2025) 119 – – – – 338 – – – – Helena Wennerström 363 – – – – 363 – – – – Senior executives employed by the company Group (incl. subsidiaries) Magnus Corfitzen, CEO 2,303 173 658 1,034 722 2,225 185 752 1,225 709 Other senior executives 4), 3(5) 4,421 197 918 1,568 1,265 6,352 219 1,430 2,467 1,911 Parent Company Magnus Corfitzen, CEO 2,303 173 658 1,034 722 2,225 185 752 1,225 709 Other senior executives 4), 3(5) 4,421 197 918 1,568 1,265 6,352 219 1,430 2,467 1,911 1) Refers to remuneration to the Board and committees 2) Refers to recognized costs but not paid-out remuneration for active incentive programs. 3) The Parent company has a defined-contribution pension plan. Under the plan, some employees can decide whether the company should, instead of making pension contributions, pay the equivalent amount out as salary. In 2025, two employees opted to receive salary instead of pension (two employees in the financial year 2024). 4) Refers to the number of other senior executives at year-end. In 2025, the number of executives in the management team (excl. the CEO) was reduced from five to three.
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Ascelia Pharma Annual Report 2025 68 Financial information / Notes Note 7, cont. Employee option program Group Parent company Option program 3 Option program 4 Total Option program 3 Option program 4 Total Number of alloted options CEO Other senior executives* CEO Other senior executives* CEO Other senior executives* CEO Other senior executives* CEO Other senior executives* CEO Other senior executives* Opening balance as of 1 Jan 2024 360,000 1,020,000 – – 360,000 1,020,000 360,000 1,020,000 – – 360,000 1,020,000 Share options alloted – – – – – – – – – – – – Share options divested -360,000 -1,020,000 – – -360,000 -1,020,000 -360,000 -1,020,000 – – -360,000 -1,020,000 Closing balance as of 31 Dec 2024 – – – – – – – – – – – – Share options alloted – – 990,000 1,925,000 990,000 1,925,000 – – 990,000 1,925,000 990,000 1,925,000 Share options redeemed – – – – – – – – – – – – Share options divested – – – – – – – – – – – – Closing balance as of 31 Dec 2025 – – 990,000 1,925,000 990,000 1,925,000 – – 990,000 1,925,000 990,000 1,925,000 The total recognized cost for the option program in 2025 including social security expenses amounted to SEK 3.1 million (SEK 2.6 million for 2024). Share saving program Group Parent company Number of saving shares Share saving program 3 Share saving program 4 Share saving program 5 Share saving program 6 Total Share saving program 3 Share saving program 4 Share saving program 5 Share saving program 6 Total Opening balance as of 1 Jan 2024 23,703 48,510 96,990 – 169,203 23,703 48,510 96,990 – 169,203 Saving shares acquired – – – 181,306 181,306 – – – 181,306 181,306 Divested – – – – – – – – – – Recalculation* 2,607 5,336 10,669 19,944 38,556 2,607 5,336 10,669 19,944 38,556 Alloted -26,310 – – – -26,310 -26,310 – – – -26,310 Of which CEO -11,100 2,475 3,410 59,940 -11,100 2,475 3,410 59,940 Other senior executives -13,242 2,759 6,599 127,450 -13,242 2,759 6,599 127,450 Closing balance as of 31 Dec 2024 – 53,846 107,659 201,250 362,755 – 53,846 107,659 201,250 362,755 Saving shares acquired – – – – – – – – – – Divested – -511 -765 -2,483 -3,759 – -511 -765 -2,483 -3,759 Alloted – -53,335 – – -53,335 – -53,335 – – -53,335 Of which CEO – -24,975 – – – -24,975 – – Other senior executives – -18,404 – – – -18,404 – – Closing balance as of 31 Dec 2025 – – 106,894 198,767 305,661 – – 106,894 198,767 305,661 Of which CEO – – 34,410 59,940 94,350 – – 34,410 59,940 94,350 Other senior executives – – 66,589 127,450 194,039 – – 66,589 127,450 194,039 The total recognized costs for the share saving programs in 2025 including social security expenses amounted to SEK 1.1 million (SEK 1.7 million for 2024). *In September 2024 the number of shares was recalculated in accordance with the terms of the programs.
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Ascelia Pharma Annual Report 2025 69 Financial information / Notes Note 7, cont. Guidelines for remuneration to CEO and other senior executives Introduction to guidelines Ascelia Pharma shall offer remuneration levels and employment terms at market terms, aimed at facilitating the recruitment and retention of senior executives with high competence and capacity, in order to achieve established targets. The guidelines shall apply to employment agreements entered into after the adoption of these guidelines by the shareholders’ meeting or amendments to existing agreements made after the adoption of the guidelines. The remuneration to the CEO and other senior executives can be comprised of fixed salary, variable remuneration, pension benefits, share-based incentive programs resolved by the shareholders’ meeting and other benefits. Senior executives refer to the CEO and the other persons forming part of Ascelia Pharma’s manage - ment team. Remuneration and other employment terms for the CEO and other senior executives are prepared by the Remuneration Committee and resolved by the Board of directors. Fixed salary guidelines The fixed salary shall take into consideration the individual’s competence, area of responsibility and performance. A review should generally be made annually. Variable remuneration guidelines The variable remuneration is to be based on the outcome of predetermined well defined objectives. The variable consideration is to be limited and may not exceed 40 per cent of the fixed annual salary for the CEO and 30 per cent of the fixed annual salary for other senior executives, whereby the individual highest level should be based on factors such as the position held by the specific individual. Pension guidelines In addition to what follows from law or collective bargain agreements or other agreements, the CEO and other senior execu - tives may be entitled to arrange individual pension schemes. Refrained salaries and variable remuneration can be used for increased pension contributions, provided that the total cost for Ascelia Pharma is unchanged over time. Share-based incentive programs guidelines Share-based incentive programs shall, where applicable, be resolved by the shareholders’ meeting. Other benefits guidelines The senior executives may be awarded other customary benefits, such as a company car, occupational health services, etc. Severance pay etc. guidelines In case of termination of the CEO’s employment by the company, the notice period should not exceed 6 months. In case the company terminates the CEO’s employment, the CEO shall, in addition to salary during the notice period, be entitled to sever - ance payment corresponding to 6 months’ base salary. The notice period for other senior executives shall not exceed 6 months. The employment agreements with senior executives may also include provisions regarding right for the senior executive to receive customary compensation for non-compete undertakings following the termination of the employment. Other information In addition to the severance pay for the CEO, in case the company would be subject to a change of control resulting in that more than 50 percent of the shares are held by one shareholder and provided that neither the company nor the CEO has given notice of termination or has otherwise brought the agreement to terminate within a period of six months after the change of control, the CEO is entitled to a retention bonus of six times the monthly gross salary. Share-based incentive programs Ascelia Pharma has one active employee options program that include all employees and two share-saving programs. If the terms of the option program are met at the time for utilisation, these employees have the right to purchase shares at a pre-determined price. For the share-saving program, employees are entitled to receive matching and performance shares according to terms of the programme. In case all outstanding incentive programs are exercised in full, 7.4 million shares will be issued (including hedge for future payment of social security charges). This corresponds to an aggregate dilution of approximately 5.5 % of Ascelia Pharma’s share capital after full dilution (calculated on the number of shares that will be added upon full exercise of all incentive programs). Employee option program 4 (”Program 4”) At the Extraordinary General Meeting held on 25 February 2025, it was resolved to implement an employee option program comprised by a maximum of 4,840,000 employee options. The employee options have been allotted free of charge to all the employees at that time. The allotted employee options vest with 100 percent on 1 June 2026. Vesting is conditional upon the participant still being employed by the company and that the employee has not resigned as of the vesting date. If the participant ceases to be employed or terminates their employment before the vesting date, no vesting will occur. Each vested and allotted option entitles the holder to acquire one new share at an exercise price of SEK 4.06 per share. Vested options may be exercised during the period from 1 June 2026 up to and including 30 June 2026 and in connection with a trade sale. In connection with a trade sale, vested options may be exercised immediately in conjunction with the transaction. Vested options that are not exercised during the relevant exercise period will automatically lapse. Share Saving Program 4 (LTI 2022) The total amount of Saving Shares invested in LTI 2022 amounted to 50,194. Saving Period for LTI 2022 was 1 October 2022 up to and including 30 September 2025. In November 2025, 53,335 Matching shares were allotted to the participants. Share Saving Program 5 (LTI 2023) At the Annual General Meeting on 4 May 2023, a resolution was passed to implement an additional long-term incentive program for employees in the form of a performance-based share saving program. The total amount of Saving Shares invested in LTI 2023 amounted to 96,990.
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Ascelia Pharma Annual Report 2025 70 Financial information / Notes Note 7, cont. For each Saving Share, the participants is entitled to receive 1 Matching Share. In addition, for each Saving Share, the participant shall have the possibility to receive up to 5 Performance Shares for each Saving Share. Receipt of both Matching Shares and Perfor - mance Shares are conditional upon the fulfilment of the following conditions: (a) that the participant has retained all Saving Shares during the period from the expiration of the Investment Period to 30 September 2026 (the “Saving Period”); and (b) that the participant has continued to be employed by the company (or another company in its group) throughout the Saving Period. Receipt of Performance Shares is further conditional upon that the requirement related to the development of the company’s share price from the date of the Annual General Meeting on 4 May 2023 to and including 30 September 2026 (the “Performance Target”) is fulfilled. The Performance Target will be measured based on the volume weighted average share price 30 trading days immediately following the Annual General Meeting on 4 May 2023 and 30 trading days immediately preceding 30 September 2026. An increase in the share price with less than 20 percent does not entitle to any vesting of any of the Performance Shares. An increase in the share price with 20 percent entitles to vesting of 1 Performance Share per Saving Share and an increase in the share price with 80 per cent or more entitles to vesting of all the 5 Performance Shares per Saving Share. In the event of an increase in the share price of between 20 and 80 per cent, vesting of the Performance Shares will occur linearly between 1 and 5. Saving Period for LTI 2023 is 1 October 2023 up to and including 30 September 2026. Share Saving Program 6 (LTI 2024) At the Annual General Meeting on 6 May 2024, a resolution was passed to implement an additional long-term incentive program for employees in the form of a performance-based share saving program. The mechanisms in LTI 2024 are the same as in LTI 2023. The total amount of Saving Shares invested in LTI 2024 amounted to 181,306. Saving Period for LTI 2024 is 1 October 2024 up to and including 30 September 2027. The Performance Target in LTI 2024 will be meas- ured based on the volume weighted average share price 30 trading days immediately following the Annual General Meeting on 6 May 2024 and 30 trading days immediately preceding 30 September 2027. Cost recognition of share-based incentive programs For option program 4, a cost of SEK 3.1 million including social security charges was recognized in 2025 (SEK 0). The total recognized costs for the share saving programs including social security charges in 2025 were SEK 1.1 million (SEK 1.7 million). ACCOUNTING POLICIES Remuneration to employees Current remuneration Current benefits to employees are calculated without discounting and recognised as costs when the related services are received. Pensions The Group has only defined-contribution pension plans. Pension plans classified as defined-contribution plans are those where the company’s obligation is limited to the contributions the company has undertaken to pay. In such cases, the size of the employee’s pension is dependent on the contributions paid by the company to the plan or to an insurance company and the return on capital yielded by the contributions. Consequently, it is the employee who bears the actuarial risk (that the pension payment will be lower than expected) and the investment risk (that the invested assets will be insufficient to provide the expected payments). The company’s obligations with regard to payments to defined-contri - bution plans are recognised in the Income Statement as they are earned by the employee’s performance of services for the company during a period. Share based remuneration Ascelia Pharma’s employees are invited to participate in share- based incentive programs. If the terms of the programs are met at the time for utilisation, these employees have the right to purchase shares at a pre-determined price (the employee option programmes) and receive matching and performance shares (share saving programme). The Group recognises share-based remunera - tion, which is personnel may receive. A personnel cost is recog - nized, together with a corresponding increase in equity, distrib - uted over the period in which the vesting conditions are met, which is the date on which the relevant employees become fully entitled to the compensation. Social security costs attributable to share-based remuneration are expensed in the periods in which the programs are provided. The liability for social security costs arising is re-evaluated at each reporting date based on a new calculation of the fees expected to be paid when the programmes are utlised. This means that a new market valuation of the incentive programmes is made at each balance sheet date, which is the basis for the calculation of the liability for social security charges. IMPORTANT ESTIMATES AND ASSESSMENTS FOR ACCOUNTING PURPOSES Share-based incentive programs Employee option programs The calculated value of the options at the time of allotment for the fourth program was approximately SEK 1 per option. The value of the options was calculated with an adjusted Black-Scholes model, which takes into consideration the exercise price, the term of the options, share price on the allotment date and expected volatility in the share price, and risk-free interest for the term of the options. Assumptions were also made regarding the number of employees to remain in the company once the programme is fully completed. The value of the options are furthermore based on the following data: • Risk-free interest rate: 2.31 percent • Calculated volatility in the company’s share price: 89 percent Share saving programs The parameter, which have the largest impact on the value of the program, is the publicly traded share price. The fair value of the share saving program is estimated on the issue date using a generally accepted modelling technique, Monte Carlo simulation, to simulate the future share price development. Assumptions have also been made regarding the number of employees to remain in the company once the programmes are fully completed. The volatility in the company’s share price used in the simulation is calculated to 58 percent.
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Ascelia Pharma Annual Report 2025 71 Financial information / Notes NOTE 8 AUDITOR FEES AND REIMBURSEMENTS Audit engagements refer to statutory auditing of the annual and consolidated financial statements and accounting records as well as the Board’s and CEO’s administration of the company, along with audits and other reviews performed as agreed upon or contracted. This includes other tasks that are incumbent on the company’s auditor to perform as well as consultancy or other assistance as a result of observations during the reviews or the performance of such other duties referred to. SEK in thousands 2025 2024 Group PwC Audit engagements (current year) 836 880 Other audit activities – – Tax advice – – Other services – – Total 836 880 SEK in thousands 2025 2024 Parent company PwC Audit engagements (current year) 778 843 Other audit activities – – Tax advice – – Other services – – Total 778 843 NOTE 9 DEPRECIATION OF INTANGIBLE, TANGIBLE AND RIGHT-OF-USE ASSETS NOTE 10 OTHER OPERATING INCOME AND COSTS ACCOUNTING POLICIES Other operating income and costs relate to secondary activities, such as income from e.g. exchange rate differences for items relating to operations, gains on divestitures and the disposal of fixed assets, institutional grants and insurance compensation. DEPRECIATION ACCORDING TO PLAN Group Parent company SEK in thousands 2025 2024 2025 2024 Tangible assets Equipment -21 -74 -21 -74 Right-of-use assets Office -759 -776 – – Car -108 -88 – – Total depreciation -888 -938 -21 -74 Other operating income Group Parent company SEK in thousands 2025 2024 2025 2024 Exchange gains on receivables/liabilities relating to operations 146 459 85 10 Other operating income 2 – 2 – Total other operating income 148 459 87 10 Other operating costs Group Parent company TSEK 2025 2024 2025 2024 Exchange loss on receivables/liabilities relating to operations -391 -100 -85 -32 Total other operating costs -391 -100 -85 -32
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Ascelia Pharma Annual Report 2025 72 Financial information / Notes ACCOUNTING POLICIES Financial income and expenses comprise interest income from bank, invested funds and other long-term receivables, interest expense for operating liabilities, dividend income and exchange rate differences. The profit/loss from the disposal of a financial instrument is recognized once the risks and rewards that are linked to owning the instrument are transferred to the buyer and the Group no longer has control of the instrument. The interest component of financial lease payments is entered in the income statement in accordance with the effective interest method, whereby interest is divided so that each accounting period is charged with an amount based on the liability recognized during the period in question. NOTE 11 FINANCIAL INCOME AND COSTS Group Financial income SEK in thousands 2025 2024 Interest income 811 772 Value change warrants 2,056 – Exchange rate differences 292 812 Total 3,159 1,584 Financial costs SEK in thousands 2025 2024 Interest expense borrowings -1,561 -3,639 Financing costs -2,275 -3,840 Value change warrants – -5,771 Interest expense other -138 -66 Exchange rate differences -1,533 -627 Total -5,507 -13,942 Parent company Financial income SEK in thousands 2025 2024 Interest income 4,678 3,832 Value change warrants 2,056 – Exchange rate differences 292 1,347 Total 7,026 5,178 Of which group companies 3,866 3,075 Financial costs SEK in thousands 2025 2024 Interest expense -1,561 -3,639 Financing costs -2,275 -3,840 Value change warrants – -5,771 Interest expense other – – Exchange rate differences -1,533 -887 Total -5,369 -14,136 Result from other long-term receivables SEK in thousands 2025 2024 Exchange rate differences -6,194 9,246 Impairment of other long-term receivables – -8,584 Total -6,194 663
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Ascelia Pharma Annual Report 2025 73 Financial information / Notes NOTE 12 TA X ACCOUNTING POLICIES Income tax consists of current tax and deferred tax. Income tax is reported in the Income Statement except for when underly - ing transactions are recognized in other comprehensive income or directly in equity, in which case the associated tax effect is reported in other comprehensive income or in equity. Current tax is tax that must be paid or received for the current year in application of the tax rates that are enacted or substantially enacted as at the balance sheet date. Current tax also includes adjustment of the current tax attributable to previous periods. Deferred tax is calculated according to the balance sheet method, based on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deductible temporary differences do not take into account Group-related goodwill. In addition, temporary differences attributable to participations in subsidiaries that are not expected to be reversed within the foreseeable future are also not taken into account. The valuation of deferred tax is based on how underlying assets and liabilities are expected to be recovered or settled. Deferred tax is calculated by applying the tax rates and tax rules enacted or substantially enacted as at the balance sheet date. Deferred tax receivable relating to deductible temporary differences and loss carry-forwards are recognized only to the extent that it is probable that they will be utilized. The value of the deferred tax receivable is reduced when it is no longer probable that it can be used. When participating interests in subsidiaries are acquired – asset purchases – no separate deferred tax is recognized at the time of acquisition; instead the asset is recognized at cost, which corresponds to the fair value of the asset. After the date of the acquisition, deferred tax is recognized only for the change in carrying amount and changes in the amount used for taxation purposes that rise after the time of acquisition. Recognized in the statement of profit or loss and other comprehensive income/income statement Group Parent company SEK in thousands Jan-Dec 2025 Jan-Dec 2024 Jan-Dec 2025 Jan-Dec 2024 Current tax expense (-)/tax income (+) Tax expense/income for the year 468 94 – – Total current tax 468 94 – – Reconciliation of effective tax Group Parent company SEK in thousands Jan-Dec 2025 Jan-Dec 2024 Jan-Dec 2025 Jan-Dec 2024 Loss before tax -76,721 -80,124 -76,30 0 -75,831 Tax rate for the Parent Company 20.60% 15,805 16,506 15,718 15,621 Effect of other tax rates for foreign subsidiaries -0.02% -14 -17 – – Non-deductible expenses -0.31% -241 -1,943 -241 -1,943 Non-taxable income 0.56% 426 161 426 161 Increase of losses carried forward without equivalent capitalisation -20.21% -15,507 -14,613 -15,903 -13,839 Utilisation of previously non-capitalised tax deductions 0.00% – – – – Recognised effective tax 0.61% 468 94 – – Unrecognised deferred tax assets Deductible temporary differences and tax losses for which deferred tax assets have not been recognized in the balance sheet (unrecog - nised deferred tax assets have no expiration date): Deductible temporary differences Group Parent company SEK in thousands Jan-Dec 2025 Jan-Dec 2024 Jan-Dec 2025 Jan-Dec 2024 Right-of-use assets 885 109 – – Lease liabilities 898 172 – – Total -13 -63 – – Accumulated tax loss Group Parent company SEK in thousands Jan-Dec 2025 Jan-Dec 2024 Jan-Dec 2025 Jan-Dec 2024 Deductible temporary differences 13 63 – – Losses related to issuance costs 65,562 61,754 65,562 61,754 Tax losses 797,701 728,434 775,122 706,237 Total 863,276 790,251 840,684 767,992
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Ascelia Pharma Annual Report 2025 74 Financial information / Notes NOTE 13 EARNINGS PER SHARE NOTE 14 INTANGIBLE ASSETS ACCOUNTING POLICIES The calculation of earnings per share is based on the profit or loss attributable to ordinary equity holders of the parent company and the weighted average number of common shares outstanding during the year. When calculating diluted earnings per share, the weighted average number of shares outstand- ing is adjusted for the effects of all dilutive potential common shares. Potential common shares are considered diluted only during periods when it leads to lower profit or bigger loss per share. Earnings per share before dilution are calculated by dividing profit for the period attributable to the Parent Company’s shareholders by the Parent Company’s weighted average number of shares outstanding for the financial year. Earnings per share after dilution are calculated by dividing the profit for the period attributable to the Parent Company’s shareholders by the Parent Company’s weighted average number of shares outstanding after dilution. IMPORTANT ESTIMATES AND ASSESSMENTS FOR ACCOUNTING PURPOSE The accounting policies describe the conditions for recognizing deferred tax assets as temporary differences. In this context it is important that the executive management considers whether the business will recognize the tax surplus in a near enough time frame for the asset to be balanceable. Recognition of deferred tax relating to loss carry-forwards or other future tax deductions may only be reported to the extent that it is probable that the deductions can be offset against surpluses in future taxation. In order for recognition to take place, it must be possible to demonstrate that it is probable that the market approval will entail taxable income that can be used for the tax loss carry-forwards. At the beginning of the financial year, Ascelia Pharma AB had approximately SEK 768 million in tax deficits. The tax loss for the year 2025 is estimated to amount to approximately SEK 73 million, including transaction costs booked against equity. Consequently, a total tax deficit of SEK 841 million per 31 December 2025. No tax assets have been recognized on the balance sheet. Note 12, cont. Group Parent company 2025 2024 2025 2024 Result for the year attributable to shareholders of Ascelia Pharma (publ), TSEK -76,253 -80,029 -76,30 0 -75,831 Weighted average number of shares (before and after dilution) 113,439,929 54,001,187 113,439,929 54,001,187 Result per share (before and after dilution), SEK -0.67 -1.48 -0.67 -1.40 Group SEK in thousands 31 Dec 2025 31 Dec 2024 Accumulated cost of acquisition Opening balance 57,078 57,074 Acquisitions during the year – – Exchange differences during the year -8 4 Closing balance 57,070 57,078 Accumulated depreciation and impairment Opening balance – – Depreciation according to plan – – Impairment for the year – – Closing balance – – Recognized value at year-end 57,070 57,078 Impairment requirement testing for intangible assets Each year, the Group tests whether there is an impairment requirement with regards to intangible assets. For Ascelia Pharma, the recognized intangible assets refer to the R&D project in progress (Oncoral), which was acquired through the subsidiary Oncoral Pharma ApS. The consideration consisted of a new share issue in Ascelia Pharma. The project has completed the first development phase (Phase 1) at Herlev hospital in Denmark with promising results. Preparations are now being made for Phase 2 .The product candidate is a tablet formulation of irinotecan, which is a widely used chemotherapeutic agent with documented effects on selected solid tumors. The project is initially measured at fair value based on the discounted future net cash flow the project is deemed to generate and also considering the fair value of the consideration paid in a separate parallel transaction comprising a new share issue for cash in Ascelia Pharma at the same point in time. The impairment test Oncoral is based on estimated risk adjusted future cash. Significant assumptions in the financial plans include projected revenue and operating margins. The forecasted risk adjusted cash flow has been calculated at present value using a discount rate of 11.5 percent before tax. The discount factor has been determined by considering the risk-free interest rate and the risk associated with the specific asset. In the year 2025, the estimated recoverable amount for Ascelia Pharma exceeded the book value, which is why no impairment requirement has been identified. Alternative calculations have been made by changing the assumptions concerning the discount rate. An increase of the discount rate by two percentage points would not result in any impairment requirement for intangible assets related to Ascelia Pharma. When loan receivables to Oncoral as well as shares in subsidiaries in the parent company are also taken into account in the impairment test, the difference between the recoverable value and the book value is lower. There is a risk of future need for subsidence.
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Ascelia Pharma Annual Report 2025 75 Financial information / Notes ACCOUNTING POLICIES Intangible assets Expenditure on research and development Expenditure on research activities related to the obtaining of new scientific or technical knowledge is expensed as incurred, except for when the research activities are acquired in a business combination. Expenditure on development activities, whereby the research results or other knowledge is applied to accomplish new or improved products or processes, is recognized as an asset in the balance sheet, provided that the product or process is technically and commercially feasible and Ascelia Pharma has sufficient resources to complete development, and is subsequently able to use or sell the intangible asset. Other development expenses are expensed as incurred with the exception of acquired development. Research and development acquired through a business combination are stated at the fair value at the date of the acquisition. After the acquisition date, acquired research and development are stated on a historical cost basis and are tested for impairment as described above. Other intangible assets Other intangible assets acquired by the Group are recognized at cost of acquisition less accumulated amortization and impairment. Expenditures for internally generated goodwill and trademarks are recognized in the income statement as an expense as it is incurred. The Group’s other intangible assets include acquired formulation technology for the purpose of developing tablet-based treatment of cancer, which are set up as assets on the basis of expenditure arising when the technology in question was acquired. The expenditure is capitalized to the extent that the probable economic benefits exceed the expenditures. Depreciation/amortization Depreciation/amortization according to plan is based on the original cost of acquisition less any residual value. Depreciation/amortization is applied on a straight-line basis over the expected economic life and is recognized as an expense in the income statement. For patents, this does not however exceed the remaining period of patent protection. Depreciation/amortization of acquired research and development takes place as of the accounting period in which the asset becomes available for use. Note 14, cont. IMPORTANT ESTIMATES AND ASSESSMENTS FOR ACCOUNTING PURPOSES Asset acquisitions versus business combinations Acquisition of companies can be classified as business combinations or asset acquisitions in accord - ance to IFRS 3. Each individual acquisition is assessed individually. In the cases where the company acquisition only consists of a development project and does not include important processes, the acquisition is classified as an asset acquisition. If the acquisition contains strategic processes that are associated with operations, it is classified as a business combination. The acquisition of Oncoral in 2017 was considered to be an asset acquisition. The Group’s recognised assets are assessed at the end of every reporting period to determine if there is any indication that impairment is required. IAS 36 is applied to the impairment of assets other than financial assets, which are reported in accordance with IFRS 9. Impairment of intangible assets For intangible assets not yet subject to amortisation, the recoverable amount is calculated annually. The recoverable amount is the higher value of the fair value minus the cost of sale and the value in use. To determine the value in use, the future cash flow is discounted by a discount factor, which takes into account risk-free interest and the risk associated with the specific asset. In assessing the value of intangible assets as of the end of 2025 and 2024, no impairment requirement was identified. Reversal of impairments An impairment of assets, as included in the application of IAS 36, is reversed if there is both an indication that there is no longer an impairment requirement and that a change has been made in the assumptions that formed the basis of the calculation of the recoverable amount. However, impairment of goodwill is never reversed. A reversal is made only to the extent that the asset’s carrying value after the reversal does not exceed the carrying value that would have been recognized, with a deduction for depreciation if applicable, had no impairment been made.
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Ascelia Pharma Annual Report 2025 76 Financial information / Notes NOTE 15 TANGIBLE ASSETS - EQUIPMENT ACCOUNTING POLICIES Tangible fixed assets are recognized as assets in the balance sheet when, on the basis of available information, it is likely that the future economic benefit associated with their possession will pass to the Group, and the asset’s cost of acquisition can be reliably calculated. Tangible assets are recognized at acquisition cost less accumulated depreciation and any impairments. The acquisition cost consists of the purchase price as well as costs directly related to bringing the asset to the necessary place and condition for its use in accordance with the purpose of the acquisition. The carrying value of a tangible asset is derecognized when the asset is sold or disposed of, or when no further financial rewards are expected to be received from the use or disposal/sale of the asset. Gains or losses arising from the sale or disposal of an asset are calculated as the difference between the sale price and the asset’s carrying value, less expenses directly related to the sale. Gains and losses are reported under other income/expenses. Principles for depreciating tangible assets Depreciation according to plan is based on the original acquisition value less the estimated residual value. Depreciation is carried out on a straight-line basis over the estimated useful life of the asset. Depreciation period is applied: Equipment 3–5 years. Impairment Assets with indefinite useful lives are not depreciated/amortized but are tested annually for any impairment requirement. Assets that are depreciated/amortized are assessed for a reduction in value when events or changes in conditions indicate that the carrying amount may not be recoverable. A write-down is carried out for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less selling costs and value in use. When assessing impairment requirements, assets are grouped at the lowest levels where there are separate identifiable cash flows (cash-generating units). Group Parent company SEK in thousands 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Accumulated cost of acquisition Opening balance 599 599 510 510 Acquisitions during the year 57 – 57 – Exchange differences during the year – – – – Closing balance 656 599 567 510 Accumulated depreciation according to plan Opening balance -583 -509 -494 -420 Depreciation according to plan -21 -74 -21 -74 Exchange differences during the year – – – – Closing balance -604 -583 -515 -494 Recognized value At the start of the period 15 89 15 89 At the end of the period 52 15 52 15
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Ascelia Pharma Annual Report 2025 77 Financial information / Notes NOTE 16 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES ACCOUNTING POLICIES The Group as lessee The Group’s leases primarily comprise right-of-use assets regarding premises rent and car. The leases are recognized as right-of-use assets equating to a lease liability on the day the leased asset becomes available for use by the Group. Short-term leases and leases for which the underlying asset is of low value are excepted. Each lease payment is distributed between repayment of lease liability and financial expense. The financial expense shall be distributed over the term of the lease so that each accounting period is charged with an amount corresponding to a fixed rate of interest for the liability recognized in the respective period. The lease period is established as the non-terminable period together with both periods covered by an opportunity to extend the lease if the lessee is reasonably certain to utilize that option, and periods covered by an opportunity to terminate the lease if the lessee is reasonably certain not to utilize that option. The Group’s lease liabilities are entered at the present value of the Group’s fixed fees. The lease payments for the cars are discounted by the lease’s imputed rate of interest, which is estimated to 4 percent. The Group is exposed to any future increases in lease payments based on an index or interest rate that are not part of the lease liability until they come into effect. When adjustments to lease payments based on an index or interest rate come into effect, the lease liability is revalued and adjusted against the right-of-use asset. The Group’s right-of-use assets are recognized at cost of acquisi - tion and initially include the present value of the lease liability, adjusted for lease fees paid on or before the start date, as well as initial direct costs. Principles for depreciating right-of-use assets Right-of-use assets are depreciated on a straight-line basis over the shorter of the asset’s useful life and the length of the lease. Depreciation according to plan is based on the original acquisition value less the estimated residual value. Group Parent company 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 SEK in thousands Office Car Total Office Car Total Office Car Total Office Car Total Accumulated cost of acquisition Opening balance 3,519 521 4,040 3,519 521 4,040 – – – – – – Acquisitions during the year 1,517 128 1,645 – – – – – – – – – Reclassifications during the year – – – – – – – – – – – – Divestments and disposals – -242 -242 – – – – – – – – – Closing balance 5,036 408 5,444 3,519 521 4,040 – – – – – – Accumulated depreciation according to plan Opening balance -3,456 -479 -3,932 -2,677 -391 -3,068 – – – – – – Reclassifications during the year – – – – – – – – – – – – Divestments and disposals – 242 242 – – – – – – – – – Depreciation according to plan -759 -108 -867 -779 -88 -864 – – – – – – Closing balance -4,215 -346 -4,559 -3,456 -479 -3,932 – – – – – – Recognized value At the start of the period 66 43 109 843 131 973 – – – – – – At the end of the period 822 62 885 66 43 109 – – – – – – Lease liabilities Group Parent company 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Long-term interest-bearing lease liabilities 72 – – – Current interest-bearing lease liabilities 898 172 – – Total interest-bearing lease liabilities 970 172 – –
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Ascelia Pharma Annual Report 2025 78 Financial information / Notes NOTE 17 SHARES IN GROUP COMPANIES NOTE 18 LONG-TERM RECEIVABLES FROM GROUP COMPANIES Parent Company The parent company does not apply IFRS 16 but reports lease fees according to leasing agreements as an expense on a straight-line basis over the leasing period, unless another systematic way can reflect the company's financial benefit better over time. IMPORTANT ESTIMATES AND ASSESSMENTS FOR ACCOUNTING PURPOSES Options to extend and terminate agreements are included in the Group’s leases for office and car. The great majority of the options to extend and terminate agreements can only be utilized by the Group and not by the lessors. Once the length of the lease has been determined, the management team considers all the available information that provides an economic incentive to utilize an option to extend, or not to utilize an option to terminate an agreement. Opportunities to extend an agreement are only included in the length of the lease if it is reasonably certain that the agreement will be extended (or not be terminated). The lease payments for cars are discounted by the lease’s implicit discount rate, which is estimated to 4%. The rent is discounted using the marginal borrowing rate, which is estimated to 13%. Note 16, cont. Parent company SEK 31 Dec 2025 31 Dec 2024 Opening balance 58,068,008 58,068,008 Carrying amount at year-end 58,068,008 58,068,008 Specification of parent company's shares in group companies Subsidiaries Capital share in % Voting share in % Recognized value 2025 in SEK Recognized value 2024 in SEK Oncoral Pharma ApS 100% 100% 58,018,000 58,018,000 Ascelia Incentive AB 100% 100% 50,000 50,000 Ascelia Pharma Inc. 100% 100% 8 8 Total carrying amount of year-end 58,068,008 58,068,008 Group Parent company SEK in thousands 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Accumulated cost Opening balance – – 39,254 35,874 Additional receivables (Intra-company loans) – – 2,259 – Interest income on loans – – 3,867 3,075 Translation differences – – -6,193 9,245 Transfer to current receivables – – – – Impairment of intra-company receivables – – – -8,940 Carrying amount at year-end – – 39,187 39,254 Maturity analysis on future lease liabilities Group Parent company SEK in thousands 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Within a year 1,081 1,169 1,081 1,169 Between one year and three years 82 80 82 80 1,163 1,249 1,163 1,249 Future lease payments in accordance with the above are nominal.
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Ascelia Pharma Annual Report 2025 79 Financial information / Notes ACCOUNTING POLICIES Partial payments for services are issued to major suppliers before the services are received by the Group in good order or rendered satisfactorily. Advance payments in foreign currencies are measured at their historical cost. Expenses are recognized in Income statement at the time the performance of services takes place and the request is submitted, and thus are reported as expenses for that period. Group Parent company SEK in thousands 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Advance payments to suppliers 145 1,755 145 1,755 Total 145 1,755 145 1,755 Group Parent company SEK in thousands 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Prepaid rent 246 241 246 241 Prepaid insurance 387 364 387 364 Other items 526 417 518 399 Total 1,159 1,022 1,151 1,004 Group Parent company SEK in thousands 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Receivables attributable to VAT 881 960 827 918 Other receivables 875 4,093 875 4,093 Total other receivables 1,756 5,054 1,702 5,011 NOTE 19 ADVANCE PAYMENTS TO SUPPLIERS NOTE 20 OTHER RECEIVABLES NOTE 21 PREPAID EXPENSES AND ACCRUED INCOME
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Ascelia Pharma Annual Report 2025 80 Financial information / Notes NOTE 22 FINANCIAL INSTRUMENTS BY CATEGORY ACCOUNTING POLICIES Financial instruments Initial recognition and measurement Financial assets and financial liabilities are recognized when the Group becomes party to the contractual provisions of the instru - ment. Regular way purchases and sales of financial assets are recognized on trade date, the date on which the Group commits to purchase or sell the asset. At initial recognition, the Group measures a financial asset or financial liability at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are incremental and directly attributa - ble to the acquisition or issue of the financial asset or financial liability, such as fees and commissions. Transaction costs of financial assets and financial liabilities carried at fair value through profit or loss are expensed in profit or loss. Financial assets Classification and subsequent measurement The Group classifies its financial instruments in the following categories according to IFRS 9: financial assets valued at fair value either via the income statement or other comprehensive income or financial assets valued at the amortized cost. The classification of investments in debt instruments depends on the Group’s business model for handling financial assets and the contractual terms for the cash flow of the assets. Amortized cost: Assets that are held for the purposes of collecting contractual cash flows, and where the cash flows only constitute capital amounts and interest are valued at the amortized cost. They are included under current assets, with the exception of items maturing more than 12 months after the balance sheet date, which are classified as non-current assets. Interest income from these financial assets is recognized using the effective interest method and included in financial income. The Group’s financial assets that are valued at the amortized cost are made up of the items other receivables, and cash and cash equivalents. Fair value through profit or loss: Assets that do not meet the criteria for amortized cost are measured at fair value through profit and loss. A gain or loss on a financial debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in the financial net in the period in which it arises. Interest income from these financial assets is included in the financial net using the effective interest rate method. The fixed income fund has been valued and classified according to fair value via the Income Statement with level 1 in the valuation hierarchy based on listed prices on a traded market. The Group reclassifies financial assets when and only when its business model for managing those assets changes. Derecognition Financial assets, or a portion thereof, are derecognized when the contractual rights to receive the cash flows from the assets have expired, or when they have been transferred and either (i) the Group transfers substantially all the risks and rewards of owner - ship, or (ii) the Group neither transfers nor retains substantially all the risks and rewards of ownership and the Group has not retained control of the asset. Impairment of financial assets Upon every reporting occasion, the Group examines whether there is objective evidence that a financial asset or group of assets requires impairment. Objective evidence consists of observable conditions that have occurred and have a negative impact on the possibility to recover the acquisition value. Financial liabilities Classification and subsequent measurement All of the Groups financial liabilities, excluding derivatives, are classified as subsequently measured at amortized cost. Interest-bearing liabilities The accounting policies for interest-bearing lease liabilities are presented in Note 16, Right-of-use assets Lease liabilities. Group Parent Company SEK in thousands 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Financial assets Financial assets at fair value through profit/loss Fixed income fund – – – – Financial assets at amortized cost Other receivables 1,756 5,054 1,702 5,011 Cash and bank balances 49,861 75,256 48,685 74,440 Total financial assets 51,617 80,310 50,387 79,451 Financial liabilities Financial liabilities at fair value through profit/loss Warrants – 18,156 – 18,156 Financial liabilities at amortized cost Accounts payable 2,042 4,733 2,031 4,632 Short-term interest bearing liabilities – 25,225 – 25,225 Total financial liabilities 2,042 48,114 2,031 48,013
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Ascelia Pharma Annual Report 2025 81 Financial information / Notes In February 2024, Ascelia Pharma secured financing of SEK 35 million from Fenja Capital II A/S consisting of SEK 20 million loan and SEK 15 million convertibles. During 2024, SEK 7.5 million of the convertible bonds were amortized. The remaining funding was due on 31 December 2025. Fenja had the right to request conversion of the convertibles into ordinary shares at a conversion price of SEK 3.38 per share. During 2025, the remaining loan of SEK 20 million was repaid and the remaining convertibles of SEK 7.5 million were converted in full. The fair value of the debt component of a convertible bond is calculated using a discount rate which is based on the market rate for a debt with the same terms without the conversion right to shares. The amount is reported as debt at amortized cost until the debt is converted or matures. The conversion right is initially reported as the difference between the fair value of the entire compound financial instrument and the fair value of the debt component. The value of the conversion right is reported in equity. Borrowings are initially recognized at fair value, net of transaction costs. Borrowings are subsequently recognized at amortized cost and any difference between the amount received (net of transac- tion costs) and the repayment amount is recognized in the income statement over the loan period, using the effective interest method. Accounts payable Accounts payable are obligations to pay for goods or services acquired from suppliers in the ordinary course of business. Accounts payable are classified as current liabilities if they fall due within one year or earlier. If not, they are recognized as long-term liabilities. Derivative instruments and hedging instruments The Rights Issue carried out in September 2024 generated an issuance of 20,773,992 warrants series TO 1. The warrants were valued at fair value based on the necessary variables using a Monte Carlo simulation. A first valuation was made after the Rights Issue in September, which yielded a value of SEK 12.4 million. This value was recognized as a liability on the balance sheet. A new fair value was calculated at each quarterly period which according to the accounting principles of IFRS 9, resulted in either a financial income or a financial cost. In 2025 a financial income of SEK 2.1 million was recognizied related to TO 1. This income has no cash impact, see note 11 value change warrants. Fair value valuation by valuation hierarchy The following is an explanation of the three levels described in the accounting standards. - Level 1: Fair value of financial instruments traded on an active market (such as listed derivatives and equity-related securities) is based on quoted market prices at the balance sheet date. The quoted market price used for the Group's financial assets is the current bid price. The quoted market price includes market assumptions with respect to changes in the economic climate such as rising interest rates and inflation, as well as changes due to ESG risk. These instruments are included in level 1. - Level 2: Fair value of financial assets that are not traded on an active market (e.g. OTC derivatives) is determined using valuation techniques that are based as much as possible on market information, while company-specific information is used as little as possible. All material inputs required for the fair valuation of an instrument are observable. - Level 3: In cases where one or more material inputs are not based on observable market information. This applies, for example, to unlisted equity instruments and to instruments where climate risk gives rise to a significant unobservable adjustment. The warrants series TO 1 are classified as level 2. The Management considers that the carrying amounts of all financial assets and liabilities constitute a reasonable approxima - tion of their fair value. Derecognition Financial liabilities are derecognized when they are extinguished, i.e. when the obligation specified in the contract is discharged, cancelled or expires. Note 22, cont. IMPORTANT ESTIMATES AND ASSESSMENTS FOR ACCOUNTING PURPOSES The fair value of financial instruments that are not traded on an active market is determined using valuation techniques. The Group chooses between different methods and makes assump - tions that are mainly based on market conditions that apply at the end of each reporting period. The chosen valuation technique includes all the factors that market participants would take into account when pricing of a transaction. The estimated fair value of the warrants on the grant date was approximately SEK 12.4 million. The fair value of the warrants is calculated using a generally accepted modeling technique, Monte Carlo simulation, to simulate the future development of the share price. The value of the warrants as of the exercise date is based on the following data: • Risk-free interest rate: 1.9 percent • Calculated volatility in the company’s share price: 133 percent
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Ascelia Pharma Annual Report 2025 82 Financial information / Notes NOTE 23 EQUITY ACCOUNTING POLICIES Equity is divided between capital attributable to Parent Company shareholders and non-controlling interests. Value transfers in the form of e.g. dividends from the Parent Company and the Group shall be based upon the Board’s established statement on the proposed dividend. This statement has to take into account the legal precautionary rules to avoid dividends greater than what financial coverage exists for. Share capital Number of shares 2025 2024 At beginning of year Ordinary shares 96,106,032 33,757,746 C-shares 1,087,121 1,113,431 Number of shares outstanding 97,193,153 34,871,177 Ordinary shares: Convertion from C-shares 53,335 26,310 C-shares: Convertion into ordinary shares -53,335 -26,310 New issue of ordinary shares 30,709,427 62,321,976 At year-end Ordinary shares 126,868,794 96,106,032 C-shares 1,033,786 1,087,121 Number of shares outstanding 127,902,580 97,193,153 Translation reserve Group SEK in thousands 2025 2024 Opening balance 974 671 Exchange differences 134 303 Closing balance 1,108 974 ACCOUNTING POLICIES Equity is divided between capital attributable to Parent Company shareholders and non-controlling interests. Value transfers in the form of e.g. dividends from the Parent Company and the Group shall be based upon the Board’s established statement on the proposed dividend. This statement has to take into account the legal precautionary rules to avoid dividends greater than what financial coverage exists for. Share capital Ordinary shares are classified as equity. Transaction costs directly attributable to the issue of new shares or options are recognized net after tax in equity as a deduction from the issue settlement. As per December 31 2025 the share capital consisted of 126,868,794 ordinary shares and 1,033,786 C shares with a quota value of SEK 1 per share. All shares are fully paid. One ordinary share entitles the holder to one vote and one C-share to one-tenth of a vote. All shares entitle the holder to the same proportion of assets and earnings, and carry equal rights in terms of dividends that is determined in due course. Translation reserve The translation reserve covers all exchange rate differences that arise in translating the financial statements of foreign entities whose financial statements were prepared in currencies other than the Group’s presentation currency. The parent company and the Group present their financial statements in SEK. When control of a foreign operation ceases, the accumulated translation differences attributable to the operation are realised, at which point they are reclassified in equity to profit/loss for the year. In the case of a sale where the controlling interest still exists, a proportional share of the cumulative translation differences is transferred from the translation reserve to non-controlling interests. Parent company Restricted reserves Restricted reserves cannot be reduced through distribution of profits. Non-restricted equity Together with profit/loss for the year, the following funds make up non-restricted equity – that is, the amount available for dividends to the shareholders: Share premium reserve When shares are issued at a premium – that is, when the amount paid for shares exceeds their nominal price – an amount equiva - lent to the amount received in excess of the share’s nominal value is transferred to the share premium reserve. Profit/loss brought forward Profit/loss brought forward consists of the previous year’s profit/ loss brought forward and profit after being reduced by paid-out dividends.
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Ascelia Pharma Annual Report 2025 83 Financial information / Notes NOTE 24 ACCRUED EXPENSES AND PREPAID INCOME NOTE 25 CONTINGENT LIABILITIES Group Parent company SEK in thousands 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Accrued salaries, including bonus 927 1,117 927 1,117 Accrued vacation pay 2,504 2,026 2,504 2,026 Accrued social security costs 1,210 1,123 1,210 1,123 Accrued social security costs for share based program 220 86 220 86 Other accrued expenses 3,623 8,381 3,567 8,331 Total 8,484 12,733 8,428 12,683 Group Parent company SEK in thousands 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Commitments* 11,448 11,540 11,448 11,540 Total contingent liabilities 11,448 11,540 11,448 11,540 *The commitments refer to potential bonus payment of SEK 10 million to Pebean ApS and potential payment to Herlev hospital of DKK 1 million in case of potential outlicensing of Oncoral or a sale of Oncoral. Pebean ApS has the right to receive a bonus of maximum SEK 10 million if commercialization occurs through a sale or an outlicensing and SEK 12 million if commercialization is carried out by Oncoral Pharma ApS or Ascelia Pharma AB itself. Regardless the commercialisation method, Oncoral Pharma ApS has the right to, at any time, finally settle Pebean ApS right for remuneration by payment of SEK 10 million.
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Ascelia Pharma Annual Report 2025 84 Financial information / Notes NOTE 26 SPECIFICATION FOR NON-CASH ITEMS ACCOUNTING POLICIES Cash flow statement The cash flow statement has been prepared in accordance with the indirect method. The recognized cash flow covers only transactions resulting in receipts or disbursements. In addition to cash and bank balances, cash and cash equivalents also include short-term financial investments that are subject to only a negligible risk of value fluctuation and which can be traded on an open market in known amounts or which have a remaining term of less than three months from the acquisition date. Group Parent company SEK in thousands 2025 2024 2025 2024 Expensed share based remuneration Expensed remuneration 4,030 4,446 4,030 4,446 Expensed social security costs 134 -106 134 -106 Adjustments for items not included in cash flow Depreciation of equipment 21 74 21 74 Depreciation of right-of-use assets 867 864 – – Disposal of right-of-use assets – – – – Impairment of receivables – – – – Arrangement fee – -888 – -888 Exchange differences -36 -1 – – Total adjustments 5,016 4,389 4,185 3,526 Cash and cash equivalents Group Parent company SEK in thousands 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Cash and bank accounts 49,861 75,256 48,685 74,440 Total cash and bank accounts 49,861 75,256 48,685 74,440 “Cash and cash equivalents” in the balance sheet and cash flow statement refers solely to cash and bank accounts. No outstanding fixed income funds are placed during 2025.
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Ascelia Pharma Annual Report 2025 85 Financial information / Notes NOTE 27 TRANSACTIONS WITH RELATED PARTIES Related parties with subsidiaries and senior executives The parent company has a close relationship with its subsidiaries, see Note 17, Shares in group companies. Information about remuneration to senior executives is provided in Note 7, Employees, employee benefit expenses and remuneration to the Board. Purchasing of services from related parties No significant transactions with related parties have occurred during the period. ACCOUNTING POLICIES Transactions with related parties Transactions have been made with related parties on terms equivalent to those that prevail in commercial transactions. The internal prices of provided services between Group compa - nies are based on the arm’s-length principle (i.e. between parties that are independent of each other and well informed and that have an interest in the transactions). NOTE 28 EVENTS AFTER THE BALANCE SHEET DATE On 21 January 2026, Ascelia Pharma announced that Deputy CEO Julie Waras Brogren is leaving the company. On 27 March 2026, Ascelia Pharma announced the acceptance of Orviglance data for oral presentation at the annual radiology congress ESGAR 2026. NOTE 29 APPROPRIATION OF THE COMPANY’S RESULT The following amounts in SEK are at the disposal shareholders' AGM Parent company Share premium reserve 771,365,605 Loss brought forward -681,632,036 Loss for the period -76,299,687 Total 13,433,882 The Board proposes the following appropriation of funds and non-restricted reserves: To be carried forward 13,433,882 of which to share premium reserve 771,365,605
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Ascelia Pharma Annual Report 202586 Financial information / Declaration and signatures DECLARATION AND SIGNATURES Ascelia Pharma AB (publ), 556571-8797 The Board of Directors and the CEO confirm that the annual accounts have been prepared in accordance with accepted accounting standards in Sweden, and that the consolidated accounts have been prepared in accordance with the international accounting standards, IFRS, as adopted by EU. The annual accounts and the consolidated accounts give a true and fair view of the Group’s and Parent Company’s financial position and profit. The Board of Directors’ Report for the Group and the Parent Company gives a true and fair view of the Group’s and the Parent Company’s operations, position and profit, and describes significant risks and uncertainty factors that the Parent Company and Group companies face. The Annual Report was approved on 9 April 2026. Malmö, 9 April 2026 Peter Benson Chairman of the Board Lauren Barnes Director of the Board Marianne Kock Director of the Board Hans Maier Director of the Board Helena Wennerström Director of the Board Magnus Corfitzen Chief Executive Officer Our auditors’ report was submitted on 9 April 2026, Öhrlings PricewaterhouseCoopers AB Mikael Nilsson Authorised Public Accountant
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Ascelia Pharma Annual Report 2025 87 Financial information / Auditor's report REPORT ON THE ANNUAL ACCOUNTS AND CONSOLIDATED ACCOUNTS Opinions We have audited the annual accounts and consolidated accounts of Ascelia Pharma AB (publ) for the year 2025 except for the corporate governance statement on pages 41-50. The annual accounts and consolidated accounts of the company are included on pages 35-86 in this document. In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of parent company and the group as of 31 December 2025 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2025 and their financial performance and cash flow for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, and the Annual Accounts Act. Our statements do not include the Corporate Governance Report on pages 41-50. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the group. Our opinions in this report on the annual accounts and consolidated accounts are consistent with the content of the additional report that has been submitted to the parent company’s audit committee in accordance with the Audit Regulation (537/2014/EU) Article 11. Basis for Opinions We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. This includes that, based on the best of our knowledge and belief, no prohibited services referred to in the Audit Regulation (537/2014/EU) Article 5.1 have been provided to the audited company or, where applicable, its parent company or its controlled companies within the EU. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. AUDITOR’S REPORT To the general meeting of the shareholders of Ascelia Pharma AB (publ), corporate identity number 556571-8797 Material uncertainty regarding the going concern assumption Without prejudice to our statements above, we would like to draw attention to Note 4, Financial Instruments and Financial Risks, on page 64, which states that the company has a forecast liquidity extending into the fourth quarter of 2026. It is further noted that the company may require addi - tional capital. There is a risk that such capital cannot be obtained in a timely manner or on favorable terms. These circumstances indicate that there is a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern. Our audit approach Audit scope We designed our audit by determining materiality and assessing the risks of material misstatement in the consolidated financial statements. In particular, we considered where management made sub - jective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the company and group, the accounting processes and controls, and the industry in which the group op - erates. Materiality The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements. Based on our professional judgement, we determined certain quantitative thresholds for material - ity, including the overall group materiality for the consolidated financial statements as a whole. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole. This is a translation of the Swedish language original. In the event of any differences between this translation and the Swedish language original, the latter shall prevail.
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Ascelia Pharma Annual Report 2025 88 Financial information / Auditor's report Other Information than the annual accounts and consolidated accounts This document also contains other information than the annual accounts and consolidated accounts and is found on pages 1-34 and 91-93. The other information also includes the Remuneration Report which we received before the signing date of this Auditor’s report The Board of Directors and the Managing Director are responsible for this other information. Our opinion on the annual accounts and consolidated accounts does not cover this other informa - tion and we do not express any form of assurance conclusion regarding this other information. In connection with our audit of the annual accounts and consolidated accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsist - ent with the annual accounts and consolidated accounts. In this procedure we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act and, concerning the consolidated accounts, in accordance with IFRS as adopted by the EU. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error. In preparing the annual accounts and consolidated accounts, The Board of Directors and the Managing Director are responsible for the assessment of the company’s and the group’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intend to liquidate the company, to cease opera - tions, or has no realistic alternative but to do so. The Audit Committee shall, without prejudice to the Board of Director’s responsibilities and tasks in general, among other things oversee the company’s financial reporting process. Auditor’s responsibility Our objectives are to obtain reasonable assurance about whether the annual accounts and consoli - dated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstate - ments can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts. A further description of our responsibility for the audit of the annual accounts and consolidated accounts is available on Revisorsinspektionen’s website: www.revisorsinspektionen.se/revisornsans - var. This description is part of the auditor´s report. Key audit matter Acquired development projects and shares in subsidi- aries and receivables from Group companies In June 2017, Ascelia Pharma acquired Oncoral Aps, which conducted research and the develop- ment project Oncoral. The research projects have not yet been completed and depreciation has not begun. As of December 31, 2025, the value of acquired development projects amounts to a total of SEK 57 million in the statement of financial position for the Group.The value of shares in subsidiaries amounts to SEK 58 million and short- and long-term receivables from subsidiaries amount to SEK 42 million in the balance sheet of the Parent Company. According to IFRS, fixed assets that are not depreciated must be tested for impairment at least annually. The test means that management needs to apply assessments and estimates about the future to ensure the book value. The company performs an annual impairment test for the acquired development costs. Given the size of the amounts and the impact of the management’s assumptions on the result of this impairment test, we have assessed this to be a significant area. A description of the company’s impairment test process is provided in the section ”Important estimates and judgments” in Note 14. Note 14 contains further description of the impairment test for the year, including significant assumptions. How our audit addressed the Key Audit Matter In our audit, our task is to evaluate and review the Company’s application of the accounting principles and evaluate the data that forms the basis for the impairment test. Our review has included, but is not limited to; -Review of the mathematical model used in the impairment test with respect to its theoretical and mathematical accuracy -Challenged management in the assumptions made regarding, among other things, future sales levels and discount rates and probability weights -Compared management’s assumption against comparable external data. We have also obtained management’s comments on the development of the research projects and the results presented through the company’s press releases. Key audit matters Key audit matters of the audit are those matters that, in our professional judgment, were of most sig - nificance in our audit of the annual accounts and consolidated accounts of the current period. These matters were addressed in the context of our audit of, and in forming our opinion thereon, the annual accounts and consolidated accounts as a whole, but we do not provide a separate opinion on these matters. In addition to the matter described in the section Material uncertainty regarding the going concern assumption, we have determined that the matters we describe below are the particularly significant areas to be communicated in this report.
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Ascelia Pharma Annual Report 2025 89 Financial information / Auditor's report REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS The auditor's examination of the administration of company and the proposed appropriations of the company's profit or loss Opinions In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Director's and the Managing Director of Ascelia Pharma AB (publ) for the year 2025 and the proposed appropriations of the company’s profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accord - ance with the proposal in the statutory administration report and that the members of the Board of Director's and the Managing Director be discharged from liability for the financial year. Basis for Opinions We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Responsibilities of the Board of Directors and the Managing Director The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company's and the group's type of operations, size and risks place on the size of the parent company's and the group’ equity, consolidation requirements, liquidity and position in general. The Board of Directors is responsible for the company’s organization and the administration of the company’s affairs. This includes among other things continuous assessment of the company's and the group's financial situation and ensuring that the company´s organization is designed so that the accounting, management of assets and the company’s financial affairs otherwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfill the company’s accounting in accordance with law and handle the management of assets in a reassuring manner. Auditor’s responsibility Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company’s profit or loss are not in accordance with the Companies Act. A further description of our responsibility for the audit of the administration is available on Revisorsinspektionen’s website: www.revisorsinspektionen.se/revisornsansvar. This description is part of the auditor’s report. THE AUDITOR’S EXAMINATION OF THE ESEF REPORT Opinion In addition to our audit of the annual accounts and consolidated accounts, we have also examined that the Board of Directors and the Managing Director have prepared the annual accounts and consoli - dated accounts in a format that enables uniform electronic reporting (the Esef report) pursuant to Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528) for Ascelia Pharma AB (publ) for the financial year 2025. Our examination and our opinion relate only to the statutory requirements. In our opinion, the Esef report has been prepared in a format that, in all material respects, enables uniform electronic reporting. Basis for Opinion We have performed the examination in accordance with FAR’s recommendation RevR 18 Examination of the Esef report. Our responsibility under this recommendation is described in more detail in the Auditors’ responsibility section. We are independent of Ascelia Pharma AB (publ) in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of Esef report in accordance with the Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528), and for such internal control that the Board of Directors and the Managing Director determine is necessary to prepare the Esef report without material misstatements, whether due to fraud or error.
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Ascelia Pharma Annual Report 2025 90 Finacial information / Auditor's report Auditor’s responsibility Our responsibility is to obtain reasonable assurance whether the Esef report is in all material respects prepared in a format that meets the requirements of Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528), based on the procedures performed. RevR 18 requires us to plan and execute procedures to achieve reasonable assurance that the Esef report is prepared in a format that meets these requirements. Reasonable assurance is a high level of assurance, but it is not a guarantee that an engagement carried out according to RevR 18 and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the ESEF report. The firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. The examination involves obtaining evidence, through various procedures, that the Esef report has been prepared in a format that enables uniform electronic reporting of the annual accounts and consolidated accounts. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement in the report, whether due to fraud or error. In carrying out this risk assessment, and in order to design audit procedures that are appropriate in the circumstances, the auditor considers those elements of internal control that are relevant to the preparation of the Esef report by the Board of Directors and the Managing Director, but not for the purpose of expressing an opinion on the effectiveness of those internal controls. The examination also includes an evaluation of the appropriateness and reasonableness of assumptions made by the Board of Directors and the Managing Director. The procedures mainly include a validation that the Esef report has been prepared in a valid XHMTL format and a reconciliation of the Esef report with the audited annual accounts and consolidated accounts. Furthermore, the procedures also include an assessment of whether the consolidated statement of financial performance, financial position, changes in equity, cash flow and disclosures in the Esef report have been marked with iXBRL in accordance with what follows from the Esef regulation. The auditor’s examination of the corporate governance statement The Board of Directors is responsible for that the corporate governance statement on pages 41-50 has been prepared in accordance with the Annual Accounts Act. Our examination of the corporate governance statement is conducted in accordance with FAR’s auditing standard RevR 16 The auditor’s examination of the corporate governance statement. This means that our examination of the corporate governance statement is different and substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinions. A corporate governance statement has been prepared. Disclosures in accordance with chapter 6 section 6 the second paragraph points 2-6 of the Annual Accounts Act and chapter 7 section 31 the second paragraph the same law are consistent with the other parts of the annual accounts and consolidated accounts and are in accordance with the Annual Accounts Act. Öhrlings PricewaterhouseCoopers AB, Box 4009, 203 11 Malmö, was re-appointed auditor of Ascelia Pharma AB (publ) by the general meeting of the shareholders on the 7 May 2025 and has been the company’s auditor since the introduction on Nasdaq Stockholm, 13 March 2019. Malmö, 9 April 2026 Öhrlings PricewaterhouseCoopers AB Mikael Nilsson Authorized Public Accountant
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Ascelia Pharma Annual Report 2025 91 Financial information / Glossary Abbreviated New Drug Application (ANDA) An application submitted to the FDA for the review and potential approval of a generic drug product. Ablation Destruction of a body part or tissue or its function. Ablation may be performed by surgery, hormones, drugs, radiofrequency, heat, or other methods. Active substance/ingredient The ingredient in a pharmaceutical drug that is biologically active. Acute kidney injury (AKI) An abrupt loss of kidney function. Advanced cancer Cancer that has grown outside the organ it started in. Bioequivalence studies Studies to prove that a product is bioequivalent, i.e. pharmaceutically equivalent, to another drug. Bioequivalence studies are required in an ANDA. Blinded study A study in which information about the test is masked to reduce or eliminate bias. Chemotherapy A type of cancer treatment that uses one or more anti-cancer drugs. Chronic kidney disease (CKD) A progressive loss in kidney function over a prolonged time period. Clinical studies Studies on healthy or non-healthy individuals to study the effects of a drug or a treatment method. Colorectal cancer Refers to cancer developing in the large intestine, usually in the rectum or colon. Computed tomography scan (CT Scan) A type of scanning method, in which many two-dimensional pictures are computer-processed to create a three-dimensional picture. Contrast agent/imaging drug A substance used to enhance the contrast in medical imaging. Cytotoxic drug A type of drug used within chemotherapy. Data exclusivity In this context a term to describe the time-period in which no ANDA can be approved based on the exclusive data for the drug. Embolisation A procedure using particles, such as tiny gelatin sponges or beads, to block a blood vessel. Embolisation may be used to stop bleeding or to block the flow of blood to a tumor or abnormal area of tissue. European Medicines Agency (EMA) European agency responsible for evaluation of medicinal products. Focal liver lesion Localized changes in liver tissue. Food and Drug Administration (FDA) US federal agency responsible for evaluation of medicinal products. Food effect bioavailability study A study with the objective to evaluate the effect of food on the bioavailability of a drug. Gadolinium A heavy metal used as a contrast enhancer, see ”Gadolinium-based contrast agent (GBCA)” below. Gadolinium-based contrast agent (GBCA) A contrast agent based with gadolinium as a contrast enhancer. Generic Drug A pharmaceutical that is equivalent to a brand-name product in dosage, strength, route of administration, quality, performance and intended use. Good Clinical Practice (GCP) An international quality standard for the performance of clinical studies. Good Manufacturing Practice (GMP) A set of manufacturing guidelines set up by the authorization agency for medicinal products. GMP can differ depending on the authority. HER2 A gene that can play a role in the development of certain cancer forms. Incidence A measure of the probability of occurrence of a medical condition in a population. Infusion A continuous injection of a substance into the body. In vitro studies Studies performed outside of the normal biological context. Often used to refer to studies outside of the body. In vivo studies Studies performed in a living organism, for example in humans. Listed drug A new drug approved for sale (distinguished from generic drugs). Magnetic resonance imaging (MRI) A medical imaging technique used in radiology. Market exclusivity In this context, the period following regulatory approval of an orphan drug in which no marketing authorization will be accepted for the same therapeutic indication. Metastases The spread of a cancer to a different part of the body. Nephrogenic systemic fibrosis (NSF) A serious condition involving fibrosis of skin, joints, eyes, and internal organs. Orphan Drug A pharmaceutical agent that has been developed specifically to treat a rare medical condition. Positron emission tomography (PET) An imaging technique used to observe metabolic processes in the body. Pre-clinical research The research phase before clinical studies where initial drug safety data are collected. Prevalence The proportion of a population suffering from a certain disease. Primary tumor The first cancer tumor formed. Special populations study Studies within a certain population, such as the elderly, populations with certain impairments or diseases, etc. Targeted agent Agents interfering with specific molecules that are part of the cancer growth. GLOSSARY
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Ascelia Pharma Annual Report 2025 92 Financial information / Alternative performance measures Definition of alternative financial performance measures SEK in thousands 2025 2024 Administration costs -17,314 -17,995 R&D costs -56,816 -50,798 Commercial preparation costs – 669 Other operating costs -391 -100 Total operating costs -74,521 -68,225 R&D costs/Operating costs (%) 76% 74% Reconciliation table for alternative performance measures for the Group Alternative performance measures Operating results (TSEK) Research and development costs/operating costs (%) Definition Profit before financial items and tax. The research and development costs in relation to total operating costs (consisting of the sum of administrative costs, R&D, commercial preparation costs and other operating costs). Aim The performance measure shows the company´s operational performance. The performance measure is useful in order to understand how much of the operating costs that are related to research- and development expenses. ALTERNATIVE PERFORMANCE MEASURES
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ASCELIA PHARMA AB (publ) Hyllie Boulevard 34 SE-215 32 Malmö, Sweden ascelia.com Financial calendar Annual General Meeting 2026: 4 May 2026 Interim report Q1 2026 (Jan-Mar): 12 May 2026 Half-year report H1 2026 (Jan-Jun): 20 August 2026 Interim report Q3 2026 (Jan-Sep): 5 November 2026 Full-year report 2026 (Jan-Dec): 11 February 2027 Contact Magnus Corfitzen, CEO moc@ascelia.com | +46 735 179 118 Anton Hansson, CFO anton.hansson@ascelia.com | +46 735 179 113