Werewolf Therapeutics (HOWL) investor relations material

Executive summary

• Completed sale of the 898/JZP898 Program to Jazz Pharmaceuticals for $21.0 million upfront, with a potential $2.0 million contingent payment; terminated prior collaboration agreement, ending eligibility for up to $1.25 billion in milestones.

• Paid off all outstanding debt under the K2HV Loan Agreement for $31.4 million, resulting in a $3.4 million loss on extinguishment of debt.

• Initiated a strategic review and restructuring, including a 64% workforce reduction in February and a further 36% reduction in May, to extend capital resources and explore alternatives such as sale, merger, or asset licensing.

• Exploring strategic alternatives for INDUKINE and INDUCER platforms, with updates expected in the second half of 2026.

Financial highlights

• Recognized $21.0 million in revenue for Q2 2026 from the asset sale to Jazz; no revenue recognized in the prior year period.

• Net income of $3.7 million for Q2 2026, compared to a net loss of $18.0 million in Q2 2025; net loss of $9.9 million for the six months ended June 30, 2026, versus $36.1 million loss in the prior year period.

• Operating expenses decreased to $13.8 million in Q2 2026 from $17.5 million in Q2 2025, and to $27.1 million for the six months ended June 30, 2026, from $35.5 million in the prior year period.

• Cash and cash equivalents were $22.0 million as of June 30, 2026, down from $69.4 million at December 31, 2025, and $46.5 million at March 31, 2026.

• Research and development expenses decreased to $6.2 million from $13.1 million year-over-year; general and administrative expenses increased to $7.7 million from $4.4 million year-over-year.

Outlook and guidance

• Cash and cash equivalents are insufficient to fund operations for at least twelve months from the reporting date; substantial doubt exists about the ability to continue as a going concern.

• Current operating plan funds operations into Q2 2027.

• Strategic review process underway to explore all alternatives; outcome will determine future development plans and funding needs.

• Additional capital will be required to continue operations beyond the near term.

• Updates on strategic alternatives and clinical trial data for WTX-124 and WTX-330 expected in the second half of 2026.