Poxel (POXEL) Corporate presentation summary

FY 2023 financial performance

• FY2023 revenue was €1.981M vs €674K in FY2022, mainly from €2M of Sumitomo Pharma royalties, equal to 8% of TWYMEEG net sales in Japan.

• FY2023 net loss was €35.090M vs €31.398M in FY2022; operating loss was €28.764M vs €21.890M.

• Cash and cash equivalents were €2.3M at Dec. 31, 2023; the €10.7M cash decrease mainly reflected operating cash burn, partly offset by IRIS financing.

• Cash runway was extended through end-2025 following the OrbiMed royalty monetization transaction.

TWYMEEG commercial outlook in Japan

• Sumitomo Pharma is promoting TWYMEEG as add-on therapy to DPP-4 inhibitors and in combinations with other oral antidiabetics, including SGLT2 inhibitors.

• Based on Sumitomo Pharma's JPY 11.3B FY2024 forecast, Japan net sales were expected to reach at least JPY 5B and could reach JPY 10B; corresponding royalties were 10% or 12%.

• At JPY 5B–10B in sales, potential sales-based payments were JPY 500M plus a possible JPY 1B; supply capacity was being increased to support growth.

• August 2024 TWINKLE study results confirmed safety and tolerability in patients with renal impairment; Sumitomo planned FY2024 discussions with Japanese regulators on a label revision for eGFR below 45 mL/min/1.73m².

• TWYMEEG patent protection extends to 2036, including a potential five-year patent term extension.

OrbiMed royalty monetization and debt amendments

• OrbiMed provided a USD 50M bond payment in exchange for TWYMEEG Japan royalties, net of Merck payments, until receiving USD 100M; royalty rights revert after the capped 2x return.

• The transaction included a USD 7.5M reserve deposit and USD 42.5M net deposit; quarterly USD 1.25M payments apply until TWYMEEG net sales reach JPY 5B.

• Debt was reduced by €23.7M for IPF Partners and €2.8M for PGE banks; remaining balances were €12.3M and €3M, respectively.

• IPF terms include 27% PIK interest, reduced to 25% in case of an Imeglimin partnership, and 75% of Japan royalties after OrbiMed receives its full return; an additional €6.2M tranche is available if cash falls below €1M.

• The PGE repayment schedule was amended to quarterly payments with linear maturities through end-2026; the interest rate remains similar to the current arrangement.