Interim report
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INTERIM REPORT FIRST HALF YEAR 2026 PILA PHARMA AB (PUBL) 1 JANUARY – 30 JUNE 2026
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FIRST HALF YEAR (1 JANUARY– 30 JUNE 2026) • Operating income amounted to TSEK 0 (851) • The operating result (EBIT) totalled to TSEK -3 850 (-4 092) • The result for the period totalled to TSEK -3 867 (-4 102) • Earnings per share, basic and diluted, were SEK -0,08 (-0,15) • Cash flow from operating activities for the first half year totalled TSEK -17 974* (-3 811) • The Company’s cash amounted to TSEK 3 257 (1 082) at the end of 30 June 2026 • The Company’s Danish subsidiary’s cash amounted to TSEK 10 126 (54) at the end of 30 June 2026 • The Company’s solvency ratio amounted to 96 % (33 %) *Includes transfer of TSEK 13 195 to PILA PHARMA AB’s Danish subsidiary SIGNIFICANT EVENTS DURING THE FIRST HALF YEAR (1 JANUARY– 30 JUNE 2026) • 26 January 2026: PILA PHARMA signed with a new clinical CRO to prepare for clinical phase in obesity after preclinical obesity studies yielded inconclusive results • 05 February 2026: PILA PHARMA announced the accelerated publication of the interim report of the second half of 2025 • 05 February 2026: PILA PHARMA announced the exercise price for the warrants of series TO2 was determined to be SEK 1.50 and the exercise period commenced 05 February 2026 • 09 February 2026: PILA PHARMA announced preparations for clinical trial application in rare disease Erythromelalgia • 10 February 2026: PILA PHARMA published the Company’s year-end report for the period January - December 2025 • 17 February 2026: PILA PHARMA announced the outcome in the exercise of warrants of series TO2, with 12.03% subscription rate and TSEK 5 396 in new investments. • 18 March 2026: PILA PHARMA announced the postponement of the annual report for 2025 and the annual general meeting, to await important exposure data from preclinical studies • 16 April 2026: PILA PHARMA called for its annual general meeting, to be held on 19 May 2026 at the Company’s HQ in Malmö, Sweden • 16 April 2026: PILA PHARMA announced an update to its preclinical study in obesity , showing very limited exposure of XEN-D0501, that could plausibly explain the lack of effect on bodyweight in the study • 21 April 2026: PILA PHARMA published its annual report for 2025 • 19 May 2026: PILA PHARMA held its annual general meeting at the Company’s HQ in Malmö, Sweden, whereby the annual report was approved, board remuneration was settled and the board was given authorization to issue shares and/or warrants and/or convertibles, with a new maximum share ceiling of 180 000 000. SIGNIFICANT EVENTS AFTER THE PERIOD • 18 August 2026: PILA PHARMA announced it had received regulatory approval to conduct PP-CT04, a 12-week trial exploring the safety , tolerability , pharmacokinetics and efficacy of XEN-D0501 in people living with obesity . SUMMARY OF INTERIM REPORT 1 INTERIM REPORT FIRST HALF YEAR 2026 / PILA PHARMA
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CEO WORD Our clinical trial application for a three-month study in obesity was approved! It enables our oral, potential first- in-class TRPV1 antagonist to progress toward mid-to- late stage human trials! It's exciting to be back from summer with the pos- itive news that we got regulatory approval from European Medicines Agency to conduct a new clinical trial in people living with obesity! As the world is getting ever more familiar with GLP1, Amylin and other pathways for treatment of obesity and cardiometabolic conditions, we're proud to pioneer a completely different path, by targeting TRPV1! First of all huge kudos to our CSO and mastermind Dorte X. Gram who together with our scientific collaborators got study design and the application on-point for what is a crucial step in our clinical development path! The trial seeks to explore a within-subject dose titration approach to reach anticipated therapeutic plasma con- centrations of XEN-D0501 not previously investigated. Dose escalation will be carried out individually for each participant, beginning at 4 mg bi-daily and increas - ing stepwise up to a maximum of 16 mg bi-daily. Each dose level will be administered for 1 week, resulting in a maximum dose escalation period of 4 weeks. Once the highest tolerable dose has been reached and confirmed to be tolerable, the participant will con - tinue treatment at that dose for an 8-week mainte - nance period Keep in mind that in PILA PHARMA's last clini - cal trial (PP-CT02) in people living with obesity and diabetes where good safety and signs of efficacy were shown, only 4mg was administered bi-daily for 4 weeks! It is therefore a substantial step forward to assess poten- tially much higher doses and longer durations, but we have long thought and said publicly that we believe that is needed to achieve the best results. The results from the study can carve out a platform from which new clinical effi - cacy studies in diseases beyond obesity, can be effectively launched. That will be potentially very important for our ambitions in diabetes and erythromelalgia among others! Long-time followers will know this type of study was part of our IPO prospectus plans in 2021 - so the ambition has always been there! Combined with the 'bet-on- obesity' strategy we launched with our rights issue in July 2025, we're making the progress happen! Thanks to all our loyal and trusting investors and shareholders who believe in and with us! So in summary: the study is designed to answer the one question that matters around tolerability at higher doses and longer duration. It serves as key gateway our the future clinical development path. And now we are excited to execute! A giant leap forward for PILA PHARMA! 2 INTERIM REPORT FIRST HALF YEAR 2026 / PILA PHARMA
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The PILA PHARMA AB share was listed on Nasdaq First North Growth Market in Stockholm on 15 July 2021, under the ticker “PILA”. Nasdaq First North Growth Market is an MTF platform registered as a growth market for small and medium-sized companies in accordance with the Markets in Financial Instruments Directive (EU 2014/65), as implemented in national legislation in Denmark, Finland and Sweden, operated by a stock exchange within the Nasdaq Group. As of 30 June 2026, the number of shares in PILA PHARMA AB amounted to 45 682 121 shares. All shares have one (1) vote per share. All shares have a quota value of SEK 0,042756. After the reporting date 31 July 2026: PILA PHARMA informed that Dorte X. Gram had conducted a sale/purchase transaction between two wholly owned companies - no changes to ownership. 18 August 2026: PILA PHARMA announced it had received regulatory approval to conduct PP-CT04, a 12-week trial exploring the safety, tolerability, pharmacokinetics and efficacy of XEN-D0501 in people living with obesity. Other information Group relations and shareholdings PILA PHARMA AB is the Parent Company in a Group that includes the wholly owned Danish subsidiary Pila Pharma Danmark ApS. Beyond the above, PILA PHARMA AB has no further shareholdings in other companies. Related-party transactions The Company has carried out services to the subsidiary, and the reve - nues refer to accrued services carried out during the year of TSEK 0 (851). Transactions are in accordance with market conditions. Audit This report was not reviewed by the company’s auditors. Upcoming financial information PILA PHARMA AB prepares and publishes a financial report for every half- year. Upcoming financial information is planned as follows: Interim report, Second half year and year-end report, 1 July – 31 December, 2026 25 February, 2027 Annual report 2026 19 March, 2027 Annual General Meeting 2027 20 April, 2027 The interim reports, annual reports and PILA PHARMA ABs press releases are available at https://pilapharma.com, or can alternatively be requested from PILA PHARMA AB, Norra Vallgatan 72, 211 22 Malmö, Sweden or via: info@pilapharma.com. Issuance of interim report The Board of Directors and CEO hereby confirm that this interim report provides a true and fair view of the Company’s business, financial position and results of operations, and describes material risks and uncertainties faced by the Company. Malmö, 27 August 2026 / PILA PHARMA AB (publ) Dorte X. Gram Chairman of the Board Richard Busellato Director of the Board Lasse Richter Petersen Director of the Board Gustav Hanghøj Gram CEO STOCK AND SHARE CAPITAL 3 INTERIM REPORT FIRST HALF YEAR 2026 / PILA PHARMA
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PILA PHARMA AB (publ) is referring to PILA PHARMA AB (publ) with the registration number 556966-4831, also stated as “The Company”. PILA PHARMA AB has a wholly owned subsidiary Pila Pharma Danmark ApS. The interim report is issued for the parent Company only. Operating income and result for the first half year 1 January – 30 June 2026 The operating income for the parent Company amounted to TSEK 0 (851). The revenues refer mainly to accrued services carried out for the Danish subsidiary. The result for the first half year amounted to TSEK -3 850 (-4 092) where the operating costs are mainly related to Group business administration. The subsidiary conducts the R&D business. Financial position and cash flow Cash flow from the operating business for the period 1 January – 30 June 2026 amounted to TSEK -17 97 4* (-3 811). The cash flow for the period 1 January – 30 June 2026 amounted to TSEK -12 640 (-3 811). The Company’s cash as of 30 June 2026 amounted to TSEK 3 257 (1082). The Company’s Danish subsidiary’s cash amounted to TSEK 10 126 (54) at the end of 30 June 2026 The equity as of 30 June 2026 amounted to TSEK 16 113 (1 159), which corresponds to the solvency ratio 96 % (33). * Includes transfer of TSEK 13 195 to PILA PHARMA AB’s Danish subsidiary Significant event after the reporting period 18 August 2026: PILA PHARMA announced it had received regulatory approval to conduct PP-CT04, a 12-week trial exploring the safety, tolerability, pharmacokinetics and efficacy of XEN-D0501 in people living with obesity. FINANCIAL OVERVIEW Employees as of 30 June 2026 The Company operates a virtual organisation with specialist consultants. The current CEO, Gustav Hanghøj Gram, Chairman of the Board and CSO, Dorte X. Gram, as well as the Company’s CFO, Hampus Darrell, are engaged via consultancy agreements. The Company’s average full-time employees during the period 1 January - 30 June 2026 therefore amounts to 0 (0). The Company conducts its operations entirely through consultants or hired staff at Clinical Research Organisations. Personnel costs disclosed in the H1 report primarily consist of board compensation as approved by the annual general meeting. The Danish subsidiary The wholly owned Danish subsidiary, Pila Pharma Danmark ApS, handles all research and development activities and is financed by the parent Company. Pila Pharma Danmark ApS had an equity of TSEK 10 893 (1111) as of 30 June 2026. 4 INTERIM REPORT FIRST HALF YEAR 2026 / PILA PHARMA
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KEY FIGURES 2026-01-01 - - 2026-06-30 2025-01-01 - 2025-06-30 2025-01-01 - 2025-12-31 6 months 6 months 12 months Net Sales (TSEK) 0 851 1 127 Other operating income (TSEK) 0 0 0 Total operating expenses (TSEK) -3 850 -4 943 -9 160 Operating result (TSEK) -3 850 -4 092 -8 034 Total financial items (TSEK) -17 -10 -8 969 Income after financial items (TSEK) -3 867 -4 102 -17 002 Cash flow from operating activities (TSEK) * -17 974 -3 811 -7 175 Earnings per share (SEK) -0,08 -0,15 -0,40 Earnings per share after dilution (SEK) -0,08 -0,15 -0,40 Average number of shares 36 404 372 27 126 623 34 605 519 Average number of shares after dilution 36 404 372 27 126 623 34 605 519 Outstanding shares at the end of the period 45 682 121 27 126 623 42 084 415 Average number of employees 0 0 0 *Includes transfer of TSEK 13 195 to PILA PHARMA AB’s Danish subsidiary 2026-06-30 2025-06-30 2025-12-31 Cash and cash equivalents (TSEK) 3 257 1 082 15 897 Equity (TSEK) 16 113 1 159 14 645 Balance sheet total (TSEK) 16 861 3 475 16 218 Solvency ratio (%) * 96% 33% 90% Cash flow ratio (%) * 481% 95% 1027% Equity per share (SEK) * 0,35 0,04 0,35 5 INTERIM REPORT FIRST HALF YEAR 2026 / PILA PHARMA
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Principles for the preparation of the interim report This interim report has been prepared in accordance with the Annual Accounts Act and BFNAR 2012:1 Annual Reporting and consolidated reports (K3). The parent Company has no requirement to submit a consolidated report, which is why the report only refers to the parent Company PILA PHARMA AB. Intangible assets Intangible assets acquired separately are reported at acquisition value less accumulated amortizations and any accumulated write-downs. Amortization takes place linearly over the asset’s estimated useful life, which is estimated to be 3 years. Estimated useful lives and amortization methods are reviewed if there is an indi - cation that these have changed compared to the esti- mate at the previous balance sheet date. The effect of any changes in estimates and assessments is reported prospectively. Amortization begins when the asset can be used. The Company has assessed that amortization of acquired intangible assets, primarily patents and associated documentation, should take place and has begun from 1 January 2023 for an estimated useful life of 3 years. Estimates and assessments In order to be able to prepare the financial reports, the Board of Directors and the Company’s Management Team make assessments and assumptions that affect the Company’s results and position as well as the infor- mation provided in general. Estimates and judgments are evaluated on an ongoing basis and are based on historical experience and other factors, including expectations about future events that are expected to be reasonable under prevailing condi- tions. Actual results may differ from assessments made. The areas where estimates and assumptions could entail a significant risk of adjustments in reported values for earnings and financial position in future report- ing periods are primarily assessments of market condi- tions and thus the value of the Company’s fixed assets. Ultimately, this risk can also affect the Company’s future ability to survive. Risks and uncertainties The risks and uncertainty factors that PILA PHARMA’s operations are exposed to are, in summary, related to, among other things, drug development, competition, technology development, patents, authority require - ments, capital requirements, currencies and interest rates. During the current period, the effects of increased inflation and a weak Swedish krona exchange rate have meant increased costs in the ongoing projects, and this entails an increased risk of increased capital needs in the Company and thus the Company’s continued operations. For a more detailed account of risks and uncertainty factors, reference is made to the financial year report for 2025 (in Swedish), where no significant changes in risks or uncertainties have been noted since its publication. GENERAL INFORMA TION, RISKS AND DEFINITIONS DEFINITIONS • Operating results: Profit before financial items and tax • Earnings per share before dilution: Profit for the period divided by the average number of outstanding shares in the period • Earnings per share after dilution: Profit for the period divided by the average number of outstanding shares in the period and outstanding potential ordinary shares Definitions and relevance of alternative outcome measures PILA PHARMA AB presents certain financial measures in the interim report that are not defined or specified in the applica- ble rules for financial reporting, so-called alternative perfor - mance measures. These have been noted with “*” in the table under the Key figures section. PILA PHARMA AB believes that these measures provide valuable supplementary information for investors and Company management as they enable an assessment of relevant trends in the Company’s performance. These financial measures should not be considered a sub - stitute for measures disclosed in accordance with applicable financial reporting rules. Because not all companies calculate financial measures in the same way, they are not always com- parable to measures used by other companies. Definitions and relevance of key figures that have not been calculated in accordance with applicable rules for financial reporting are set out in the table below. • Solidity: Equity divided by total capital. The equity ratio shows how much of the balance sheet total is made up of equity and has been included so that investors can form a picture of the Company’s financial stability and ability to cope in the long term, as the Company is dependent on additional of capital for carrying out its research and development work • Cash flow: Current assets divided by current liabilities. Cash flow has been included to show the Company’s short-term solvency • Equity per share: Total equity divided by the number of shares at the end of the period. Equity per share has been included to provide investors with information about the book equity represented by a share. 6 INTERIM REPORT FIRST HALF YEAR 2026 / PILA PHARMA
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CONDENSED INCOME STA TEMENT (All amounts in SEK thousand) 2026-01-01 - 2026-06-30 2025-01-01 - 2025-06-30 2025-01-01 - 2025-12-31 6 months 6 months 12 months Operating income Net sales 0 851 1 127 Operating income 0 851 1 127 Operating expenses Other external costs -3 530 -4 386 -7 084 Personnel costs -320 -18 -999 Depreciation and amortization of tangible and intangible financial assets 0 -539 -1 077 Operating result -3 850 -4 092 -8 034 Profit/loss from financial items Write-down of financial fixed assets and short-term investments 0 0 -8 750 Interest expenses and similar profit/loss items -17 -10 -219 Income after financial items -3 867 -4 102 -17 002 Tax expenses 0 0 0 Profit/loss for the period -3 867 -4 102 -17 002 7 INTERIM REPORT FIRST HALF YEAR 2026 / PILA PHARMA
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CONDENSED BALANCE SHEET (All amounts in SEK thousand) 2026-06-30 2025-06-30 2025-12-31 ASSETS Fixed assets Intangible assets 0 539 0 Total intangible assets 0 539 0 Tangible assets 0 0 0 Total tangible assets 0 0 0 Financial assets Shares in group companies 65 65 65 Receivables from group companies 13 195 662 0 Total financial assets 13 260 728 65 Total fixed assets 13 260 1 266 65 Current assets Current receivables Other receivables 142 136 145 Prepayments and accrued income 202 991 110 Total current receivables 344 1 127 255 Cash and cash equivalents 3 257 1 082 15 897 Total current assets 3 601 2 209 16 153 ASSETS 16 861 3 475 16 218 (All amounts in SEK thousand) 2026-06-30 2025-06-30 2025-12-31 EQUITY AND LIABILITIES Equity Restricted equity Share capital 1 953 1 160 1 799 Total restricted equity 1 953 1 160 1 799 Unrestricted equity Share premium fund 128 514 97 586 123 333 Retained earnings -110 487 -93 485 -93 485 Net result for the period -3 867 -4 102 -17 002 Total unrestricted equity 14 160 0 12 846 Total equity 16 113 1 159 14 645 Current liabilities Accounts payables 336 138 233 Other liabilities 1 5 468 Accruals and deferred income 411 2 172 872 Total current liabilities 748 2 316 1 573 TOTAL EQUITY AND LIABILITIES 16 861 3 475 16 218 8 INTERIM REPORT FIRST HALF YEAR 2026 / PILA PHARMA
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CONDENSED CASH FLOW STA TEMENT (All amounts in SEK thousand) 2026-01-01 - 2026-06-30 2025-01-01 - 2025-06-30 2025-01-01 - 2025-12-31 6 months 6 months 12 months Operating activities Income after financial items -3 867 -4 102 -17 002 Adjustments for items not included in cash flow 0 539 9 827 Tax paid 0 0 0 Cash flow from operating activities before changes in working capital -3 867 -3 563 -7 175 Cash flow from changes in working capital Decrease (+)/increase (-) of other current receivables -13 234 -999 -67 Decrease (-)/increase (+) of accounts payables 103 -904 -212 Decrease (-)/ increase (+) of other current liabilities -976 1 655 822 Cash flow from operating activities * -17 974 -3 811 -6 632 *Includes transfer of TSEK 13 195 to PILA PHARMA AB’s Danish subsidiary Financing activities New share issue 5 396 0 29 915 Emission costs -62 0 -3 529 Shareholder contribution made to group companies 0 0 -8 750 Cash flow from financing activities 5 334 0 17 636 Cash flow for the period -12 640 -3 811 11 004 Cash at the beginning of the period 15 897 4 893 4 893 Cash at the end of the period 3 257 1 082 15 897 9 INTERIM REPORT FIRST HALF YEAR 2026 / PILA PHARMA
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CONDENSED REPORT ON CHANGE IN EQUITY (All amounts in SEK thousand) Share capital Free premium fund Retained earnings Result for the period Total equity Opening balance as of 1 January 2026 1 799 123 333 -93 485 -17 002 14 645 Disposition of the previous year’s result -17 002 17 002 0 Result for the period -3 867 -3 867 Transactions with owners: Registered new share issue 154 5 242 5 396 New share issue costs -62 -62 Total transactions with owners 154 5 180 0 0 5 334 Closing balance as of 30 June 2026 1 953 128 514 -110 487 -3 867 16 113 Opening balance as of 1 January 2025 1 160 97 587 -82 244 -11 241 5 261 Disposition of the previous year’s result -11 241 11 241 0 Result for the period -4 102 -4 102 Closing balance as of 30 June 2025 1 160 97 587 -93 485 -4 102 1 159 10 INTERIM REPORT FIRST HALF YEAR 2026 / PILA PHARMA
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For further information, please contact PILA PHARMA AB Norra Vallgatan 72 211 22 Malmö Sweden info@pilapharma.com www.pilapharma.com