Interim report
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1 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Second quarter (April - June) 2026 ● Net sales KSEK 0 (0) ● Operating income KSEK -30,109* (-20,126) ● Earnings per share before and after dilution SEK -2.21 (-1.42) Reporting period (January- June) 2026 ● Net sales KSEK 0 (0) ● Operating income KSEK -53,608* (-37,621) ● Earnings per share before and after dilution SEK -3.91 (-2.67) ● *Operating profit includes exchange rate effects on currency investments intended to secure future payments. During the second quarter, these amounted to KSEK -133 (465) and during the reporting period to KSEK 206 (-3,187). Significant events during the reporting period (January-June) ● In February 2026, the results of “The Connection Study” were published in Pediatric Research. Summary of selected financial data
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2 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Message from CEO During the period, work continued on building the scientific and medical positioning for bringing IBP-9414, the company’s drug candidate, to market. Several scientific publications are currently being written, and IBT plans to participate in a number of medical conferences. We have been working on scientific communication through our broad network of experts. Awareness of IBP-9414’s potential to save lives is spreading. Every day, more hospitals and treating physicians are realizing that IBP-9414 is a drug that can do the most important thing a drug can do: save lives. It is a fact that far too many premature infants with a birth weight below 1,500 g die. We have shown that IBP-9414 can reduce mortality by more than a quarter for these infants. To illustrate just how important the drug IBP-9414 is, one can draw parallels to the class of drugs known as surfactants. Surfactants were introduced to the market about 25 years ago for the care of premature infants and constitute the “standard of care” worldwide. These medications help these tiny babies breathe and lead to significantly higher survival rates. A review of the literature reveals the clinical effects—that is, the extent to which the medication reduces the risk of a child’s death. My estimate is that the positive effects of surfactants and IBP-9414 are of the same order of magnitude. No new drug of this significance has been introduced in neonatal care in the past 25 years. Now it is time to take the next major step towards reducing mortality among premature infants. IBT is ready to bring IBP-9414 to market as soon as the product is approved by regulatory authorities. Preparations for a Future Launch With regard to distribution partners, IBT currently has several options. We are in regular contact with a number of companies that have expressed interest in obtaining rights to enable distribution and sales activities in multiple geographic regions. IBT wants to ensure that two interests are respected: first, we must have an effective and global distribution network to save as many children as possible. At the same time, sales revenue should, to the greatest extent possible, accrue to IBT’s shareholders. It is against this backdrop that we consider every offer IBT receives regarding potential distribution agreements. Continued Progress in Regulatory Efforts IBT has completed the work defined by the Pediatric Investigational Plan (PIP) agreed upon by the European Medicines Agency (EMA) and IBT prior to the start of The Connection Study in 2019. During the reporting period, the EMA announced that it considers us to have fulfilled the requirements of the PIP. This is another important step in our efforts to facilitate future registration of IBP-9414 in Europe. In the U.S., the dialogue with the FDA continues, with a focus on the upcoming Biologics License Application (BLA). On June 12, the FDA announced that it had completed its review of the safety and efficacy data submitted by IBT from the Phase II study and the Phase III study, The Connection Study. The fact that this review is now complete is very positive. At the same time, the FDA has provided comments and questions regarding how IBT should address a number of areas ahead of the expected upcoming pre-BLA meeting. I expect that IBT will be able to provide the FDA with what it is requesting during the month of September. Production Process Validation Regarding the validation of the manufacturing process (PPQ - Process Performance Qualification), we had hoped to be finished by early August, but we will manufacture the last of the six required batches in September. The reason for the delay is a minor operator error. We have however continued confidence in our manufacturing process. It is also gratifying that all fermentation batches
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3 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 meet the predefined specifications and are now put into stability studies. Work on the final report is underway and is expected to be completed by the end of October. All in all, we can state that we have made good progress in all areas which means that our goal remains unchanged: to submit the BLA this year. Stockholm August 25, 2026 Staffan Strömberg, CEO
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4 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 IBT in brief Infant Bacterial Therapeutics AB (“IBT”) is a public company domiciled in Stockholm. The company’s Class B shares are since September 10, 2018, listed on Nasdaq Stockholm (IBT B). IBT is a pharmaceutical company whose mission is to develop and commercialize drugs for diseases affecting premature babies. IBT's main focus is the drug candidate IBP-9414, a formulated bacterial strain naturally found in human breast milk. IBP-9414, is expected to be the first product in the new class of biologics called "Live Biotherapeutic Products" for premature infants. The development of IBP-9414 is currently in its final stages. In the Phase III Connection study in premature infants that was completed in July 2024, the group treated with IBP-9414 demonstrated a significant 27% reduction in all-cause mortality compared with the placebo group, meaning that widespread use of IBP-9414 could save more than 1000 patients annually in the US alone. The therapy has received both Breakthrough Therapy Designation (March 2025) for gastrointestinal mortality and Rare Paediatric Disease Designation, reflecting its potential to address a significant unmet medical need. The portfolio also includes additional drug candidates, IBP-1016, IBP-1118 and IBP-1122. IBP-1016, for the treatment of gastroschisis, a life-threatening and rare disorder in which children are born with externalized gastrointestinal organs. IBP-1118 to prevent retinopathy of prematurity (ROP), one of the leading causes of blindness in premature babies, and IBP-1122 to eliminate vancomycin-resistant enterococci (VRE), which cause antibiotic-resistant hospital infections. Through the development of these drugs, IBT can address medical needs where no sufficient treatments are available. Description of IBT’s development project IBP-9414 The development plan for IBP-9414 consisted of two clinical studies: safety- and tolerance study and pivotal Phase III study, “The Connection Study”. The first study was a randomized, double blind, parallel-group, dose escalation placebo-controlled multicenter study to investigate the safety and tolerance of IBP-9414 in premature infants. The study was completed as planned in the fourth quarter of 2017 and showed that IBP-9414 was safe and well tolerated in preterm infants with birth weights between 500 - 2,000 grams. The completed pivotal Phase III study aimed to prove and document the efficacy of IBP-9414 compared to placebo on the two primary endpoints of preventing NEC and improving sustained feeding tolerance (SFT) in preterm infants with a birth weight of 1,500 grams or less. This study also included a safety evaluation. The results of the study were received in Q3 2024. In light of the results of the study and the urgent need for effective treatment of preterm infants, IBT is continuing its development towards drug registration.
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5 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Risks and uncertainties IBT's value is to a very large extent dependent on the success of the company's development project IBP-9414 and the granting of marketing authorization by the US Food and Drug Administration (“FDA”) and/or the European Medicines Agency (“EMA”). If a marketing authorization for IBP-9414 is not granted, IBT may focus on other projects, but there is a risk that such projects will not succeed. Financial risk management The majority of IBT's development costs are incurred in foreign currency. If the SEK declines in value against the currency in question, it can have a significant impact on the company's position and earnings. The currencies to which IBT has the greatest exposure are USD and EUR. The company has investments in foreign currencies and a strengthening of the SEK has a negative currency effect (see notes 1, 2 and 3). For further information on risks and uncertainties, please refer to IBT's Annual Report for 2025 on the company's website www.ibtherapeutics.com. Financial calendar Interim report July – September 2026 November 13, 2026 at 07:30 CET Year-end-report January – December 2026 February 11, 2027 at 07:30 CET Interim report January – March 2027 May 4, 2027 at 15:00 CET The annual General Meeting will be held May 5, 2027 at 16:00 in Stockholm Contact persons Staffan Strömberg, CEO Maria Ekdahl, CFO Contact information Infant Bacterial Therapeutics AB (Reg. no. 556873-8586) Katarina Bangata 70 116 42 Stockholm, Sweden info@ibtherapeutics.com www.ibtherapeutics.com
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6 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Financial development – second quarter (April - June) 2026 Amounts are reported in KSEK (SEK in thousands). Amounts in parentheses refer to the period in the previous year unless stated otherwise. Costs Operational costs amounted to KSEK 29,977 (20,591) prior to exchange rate effects on foreign currency deposits and after exchange rate effects to KSEK 30,109 (20,126). Cost related to the development of IBP-9414 amounted to KSEK 13,382 (8,059) during the second quarter. The higher costs in the quarter compared with the same period last year are due to higher costs associated with the validation of the production process. Personnel expenses amounted to KSEK 6,217 (5,706). Other external expenses amounted to KSEK 10,377 (6,825). This year’s result is primarily due to higher legal, consulting, and regulatory costs compared to the previous year. Costs are reported net of exchange rate effects on currency deposits. Exchange rate effects during the second quarter 2026 amounted to KSEK -133 (465). (Note 1,2). Result Operational result amounted to KSEK -30,109 (-20,126) and result after financial items amounted to KSEK -29,729 (-19,172). Result after tax amounted to KSEK -29,729 (-19,172) Result per share prior to and after dilution amounted to SEK -2.21 (-1.42). Cash flow for the period amounted to KSEK -23,194 (-15,906), the higher cash flow is due to higher regulatory expenses during the quarter compared with previous year. Cash flow per share amounted to SEK -1.72 (-1.18) Financial development – reporting period (January- June) 2026 Amounts are reported in KSEK (SEK in thousands). Amounts in parenthesis refer to the period in the previous year unless stated otherwise. Costs Operational costs amounted to KSEK 53,814 (34,434) prior to exchange rate effects on foreign currency deposits and after exchange rate effects to KSEK 53,608 (37,621). Costs related to development of IBP-9414 amounted to KSEK 25,978 (14,333) prior exchange rate effects. The higher cost for this period compared with the same period last year is due to higher cost for validation of the production process. Personnel costs amounted to KSEK 11,210 (10,570). Other external costs amounted to KSEK 16,626 (9,531). The increase in other expenses mainly consists of higher consulting costs and legal advice within regulatory issues. Costs are reported net of exchange rate effects on foreign currency deposits. Exchange rate effects during the reporting period amounted to KSEK 206 (3,187). (Note 1,2). Result Operational result amounted to KSEK -53,608 (-37,621) and result after financial items amounted to KSEK -52,664 (-35.911). Result after tax amounted to KSEK -52,664 (-35,911) Result per share prior to and after dilution amounted to SEK -3.91 (-2.67). Cash flow for the period amounted to KSEK -35,613 (-43,885). Cash flow per share amounted to SEK
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7 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 -2.64 (-3.26). Financial position Prepaid expenses and accrued income amounted to approximately KSEK 946 (5,154) and relates mainly to insurance cost and accured interest income. Accrued expenses amounted to approximately KSEK 13,950 (8,003) are mainly driven by cost related to manufacturing of IBP-9414 and personnel costs. The company´s cash balance on June 30, 2026, amounted to KSEK 108,602 compared to KSEK 144,009 on December 31, 2025. The company´s shareholders equity on June 30, 2026, amounted to KSEK 53,024 compared to KSEK 105,333 on December 31, 2025. Shareholders´ equity per share on June 30, 2026, amounted to SEK 3.94 compared to 7.82 on December 31, 2025. The company´s equity ratio on June 30, 2026, amounted to 44% compared to 65% on December 31, 2025. The capital is deemed sufficient until market approval is obtained. Tax position IBT has an accumulated tax loss carryforward of approximately SEK 701 (636) million. Deferred tax receivables are reported when it is likely that future taxable income will be available against which the temporary differences may be utilized. The company has not reported any temporary tax receivables in its statement of financial position. Macroeconomic situation The general geopolitical situation, tariffs, and general cost increases contribute to a certain degree of uncertainty, and it cannot be ruled out that IBT will be affected by this in the future. As IBT has many costs in foreign currencies, it has counteracted cost increases by purchasing USD and EUR. Shares On January 1, 2026, and June 30, 2026, respectively, the total number of shares amounted to 13,471,420 shares of which 453,283 class A-shares carried 10 votes and 13,018,137 class B-shares carried 1 vote. IBT's class B shares were listed on Nasdaq Stockholm on September 10, 2018. IBT's closing share price on June 30, 2026, amounted to SEK 70 Analysts covering IBT: SEB: Christopher W. Uhde, Mattias Vadsten
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8 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Ownership June 30, 2026 Source: Euroclear Sweden NB: This is a translation of the Swedish interim report. If any discrepancies exist, the Swedish version shall prevail. Certification CEO hereby certifies that this report gives a true and fair presentation of the Company´s operations, financial position, and result of operations, and describes material risks and uncertainties facing the Company. Stockholm, August 25, 2026 Staffan Strömberg Peter Rothschild Margareta Hagman CEO Chairman Director Anthon Jahreskog Kristina Sjöblom Nygren Eva Idén Director Director Director This report has not been subject to review by company´s auditor
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9 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Income statement
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10 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Balance sheet ‘
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11 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Statement of changes in equity
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12 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Statement of cash flow
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13 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Note 1 Accounting principles The interim report has been prepared in accordance with IAS 34 interim reporting, and the Annual Accounts act, Årsredovisningslagen. The company´s reporting has been prepared in accordance with the Annual Accounts act, Årsredovisningslagen and as stipulated by RFR 2 Reporting for legal entities. Disclosures per IAS 34 are presented in Notes and in other sections in the interim report. IBT has adopted the same accounting principles and calculation methods as those described in the 2025 annual report. New principles are not expected to impact the company´s financial reports. New or revised IFRS standards that have come into effect in 2026 do not have any significant impact on IBT. IBT has no transaction to report under other comprehensive income and thus presents information thereon under the income statement. IBT has deposits in foreign currencies. The company's expenses are allocated to the functions Research and development and administration costs. The effects of changes in exchange rates are recognized in the company's financial statements at market value through the functions. (Notes 2 and 3) Amounts are reported in KSEK (SEK in thousands). Amounts in parenthesis refer to the same period in the previous year unless stated otherwise. Note 2 Financial instruments Fair value of other receivables, cash, accounts payable and other liabilities are estimated to equal book value (accumulated cost) due to the short duration. Note 3 Liquidity The company´s liquidity consists solely of cash deposits held at Swedish banks. Total liquidity on the balance sheet date on June 30, 2026 amounted to MSEK 108,6 (176,3). Note 4 Share based incentive programs IBT had on the balance sheet date, June 30, 2026, three outstanding warrant programs.
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14 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Warrants 2023/2026 As below and as described in the 2025 annual report Warrants 2024/2027 As below and as described in the 2025 annual report Warrant holders 2024/2027 Number allotted 2026-06-30 Number issued 2026-06-30 Number allotted 2025-12-31 Number allotted 2025-12-31 Staffan Strömberg, VD 50,000 50,000 50,000 50,000 Anders Kronström, COO 25,000 25,000 25,000 25,000 Maria Ekdahl, CFO 25,000 25,000 25,000 25,000 Other employees 65,000 65,000 65,000 65,000 Totalt 165,000 165,000 165,000 165 000 Warrant holders 2023/2026 Number allotted 2026-06-30 Number issued 2026-06-30 Number allotted 2025-12-31 Number allotted 2025-12-31 Staffan Strömberg, VD 50,000 50,000 50,000 50,000 Anders Kronström, COO 25,000 25,000 25,000 25,000 Maria Ekdahl, CFO 25,000 25,000 25,000 25,000 Other employees 55,000 55,000 55,000 55,000 Totalt 155,000 155,000 155,000 155,000
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15 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Employee stock options 2025/2028 As below and as described in the minutes of the 2025 Annual General Meeting Warrant holders 2024/2027 Number allotted 2026-06-30 Number issued 2026-06-30 Number allotted 2025-12-31 Number allotted 2025-12-31 Staffan Strömberg, VD 65,000 65,000 65,000 65,000 Anders Kronström, COO 32,500 32,500 32,500 32,500 Maria Ekdahl, CFO 32,500 32,500 32,500 32,500 Other employees 30,000 30,000 30,000 30,000 Totalt 160,000 160,000 160,000 160,000 IBT´s three outstanding warrant programs in summary: Issued, Year Number allotted Strikeprice Value per allotted warrant Volatilitet, % * Risk free interest, % Expiry, year 2023 (2023/2026) 155,000 100.05 3.29 39 2.76 2026 2024 (2024/2027) 165,000 176.83 12.20 40 2.55 2027 2025 (2025/2028) 160,000 117.03 19.78 50 1.99 2028 480,000 - - - - - *Expected future volatility is ascertained by comparison of historical average and median values for comparable listed companies in the same sector as IBT based on analysis in S&P Capital IQ. Of the three outstanding option programs, 2023/2026 and 2024/2027 are warrant programs. The 2025/2028 option program is an employee option program and are during the vesting period associated with an IFRS 2 expense and an expense for any future social security contributions, which are adjusted on an ongoing basis based on an assessment of any vesting of options. The IFRS2 cost for the 2025/2028 employee stock option program amounts to KSEK 177,5 second quarter 2026 and during the year to KSEK 354,9. Accrued future social security contributions amount to KSEK 155 as of June 30, 2026. All costs have been reported in the income statement for the year. The costs for the program have been calculated using the Black & Scholes valuation model. For more information about the warrant programs, see the minutes and materials for the respective Annual General Meetings.
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16 Infant Bacterial Therapeutics AB (publ) Interim report January 1 – June 30, 2026 Note 5 Related party transactions There are no significant transactions with related parties Note 6 Alternative key figures The company presents some financial measures in the interim report that are not defined in accordance with IFRS. The company believes that these measures provide valuable supplementary information to investors and the company´s management as they enable evaluation of the company´s performance. Since not all companies calculate financial measures in the same way, these are not always comparable to measures used by other companies. These financial measures should therefore not be seen as a substitute for measures defined in accordance with IFRS. The key ratios below are not defined in accordance with IFRS unless otherwise stated. For definitions and other reasons, refer to the Annual Report 2025. Derivation of certain alternative key figures