Modus Therapeutics Holding AB (publ)

So there, I welcome you to today's live broadcast interview with Modus Therapeutics, with me in the company's CEO John Öd in ordinary order. John, you have published your Q1 report here this morning. I thought you would just briefly give your opinion on the work during the first quarter and what you see as the highlights during the period.

Thank you, Martin. It was a very intensive quarter. We have done, above all, very clear progress, which means that we can say that we are on track with the study that we carry out in new sick patients. And our track consists of fulfilling the recruitment in the first part of the study. We also saw during the March month that the recruitment in the phase B study in Svårmalaria, which has an extra room in Kenya and Sambria, is fully done. This opens up opportunities for us to work further with that strategy and see how we move forward with our collaboration partners towards the next step in that development. And also, I think we have seen that our portfolio is rendering interest outside the typical spheres, where we have, for example, the opportunity to participate in a global -the-clock group of patients who are suffering from very important and heart-throbbing diseases, tuberculosis, malaria and HIV, and technical innovation in this area, which is then divided into the global fund and the Swedish UD. So those are some of the highlights, but as I said, it was a very productive quarter in a very good way.

Do you feel that the interest in your research is also increasing, if you look back at what is happening in the US now with the return of funding for various projects, I think primarily malaria and HIV are also there, but do you see that it is bringing water to your side, that there is a greater interest in your research in this area?

Everything that shows increased interest in global health and puts the spotlight on that problem also makes me look at what future more effective treatments are and better ways to treat patients in this area. Then it becomes so problematic that we come to a more broad view, and it is very important for everyone who is engaged in innovation in the area, which otherwise may go a little under the

radar.

You are going to create a world where important contributors like the US could maintain it, while I am convinced that this situation will be rebalanced, this will continue to be an important problem for the whole world. For example, climate change, this type of problem, especially malaria, risks not stopping where this problem is the biggest in the world. This is the highest level of global problem.

Can you give us a short overview of the CKD study, which is perhaps the most focused on from your point of view right now? What are you, what is the next step? This is part one of a two-part study, so to speak, and what is required to get further in this study?

Yes, exactly. As I said, the central thing in part one, or part one here, is that we follow the recruitment, because the goal with part one is basically two. It is partly that we should be able to see the halters of the drug in the blood and how it is affected by different degrees of mucus. For us it is a simple analysis to look at the halters. The difficult thing is to recruit the patients. When we have done that, we can say that we have the trigger to move on to part two. What we do with the data is that we send them to the authorities and say, now we suggest these three dosage levels, depending on what light weight the patients have in the longer treatment part, which is part two. Recruiting is central in this part of the study, you could say. And there, as we have now seen in Q3, we are on track. And how does that look? We calculate that within this half year we have been able to complete the recruitment. This means that we can update part two in the study and start it as we have suggested at the end of Q3-Q4. And here it is important to say that we have been very clear that in between we need to extend the funding to be able to talk about part two.

And a short comment on how you see the funding, should it be in partnership with someone or should it be done through an emmision? The advantage of our model is

that we have a portfolio where we have our access to the funds, but who work in three different areas and add a larger range of interests. So while we are conducting the study in chronic illness, we have a data package that we can discuss partner recruitment, as regards sepsis, for example, where we use the data we have from the previous study that we did in sepsis. So of course it is also important that we can have that type of discussion in all three areas of malaria, illness, and anemia and sepsis. This means that one way to finance is to have a partnership and a code development around that, which then helps us to drive the development further, without it being financed in the market. At the same time, we have had the privilege of getting funding from our large and long-term owners, Karinska Development, which is also a very important part of this balance model. We are also a public company that is being used by the public and we expect to finance in the future. Just as we have done before, we will continue to balance the financial model.

Just your comment on the malaria study, how does the development look forward? You can't control everything in that project, but you have completed patient recruitment. What is the next step from your point of view? The next step is

to report on this study and at the same time, we try to identify support for the next step in the development, which is a phase two study, a controlled phase two study. The advantage of this approach is that we can keep the development costs minimal and trade-off is that we control the project a little less. But since we support the project and the solution with access to self-healing, we can also share the benefits of data and so on. Given that we have the first data on malaria, we can start to look at what type of regulatory steps we can take to start putting in place how much more we will take malaria. Malaria is a self-healing disease in our part of the world, in the US and Europe. Those who have malaria preparations on the market also have that type of special treatment status in these countries. It is a very good entry-level and an interesting situation where the data we share with our consortium helps us to be able to drive that type of regulatory activity. In the case that we have a successful development in malaria, the best way is to use global support to trade off the medicine to the parts of the world that need it most. But besides that, there is also this option in the European and American markets.

And the work within Sepsis, you have not commented so much on that at the end, but it is a planning phase before 2026, as far as I understand it, for phase 2a.

We have a portfolio where we focus on one thing, or at least our own efforts with malaria, which is that others contribute to research in collaboration with us. As far as Sepsis is concerned, we already have clinical data from our previous study, and there we develop business at the same time as we develop the next study. Right now, the focus is on operating partnership work on the Sepsis side, and at the same time see how the next study will look like. So that's planning. Of course, this is a time-consuming job, but this is how we distribute our resources to keep as much news as possible of our portfolio.

You will also present data at the BioIron Congress. What is important about this presentation? What are you looking for in that context? And

at the same time, I would say that we will continue to present data at the European Hematology Association Conference in Milan. Both presentations are moving towards the same project, which focuses on animal welfare and animal welfare. What we want to achieve with this is that the clinical data we generate is handled by mechanical data. So that those who look at regulatory authorities, interest centres interested in taking over a project, they always look at these two together. So that means that clinical data gives one part to understand why it is so, and gives a very important trust that what we see in the clinic is correct. So these two are very much in hand. That's why I would say that the mechanical data in good animal models, which we have in this case, add value to the project in a clear way. In this case, we have updated the BioIron model with animal weight in the mouse and anemone. In the HMA meeting, we will explain more what we see and how we think that the mechanisms are going to be used when animal welfare is protected. We find that very exciting. It is a clear climb. Previously, we have looked at the mechanisms for how anemones are addressed. But we have seen the preclinical observations that the neurons also seem to be better. They are better, the wave looks better. Now we have begun to see the mechanisms behind it, and that is what we will talk about at the HMA in June.

Connected to that, can you explain to me a little bit about the CKD anemia market and the competitors there? I understand that they are quite significant. I had a question about how you differentiate yourself with CWParin in this context. What are you adding beyond what already exists?

Here we have a type of help that does not exist. Our effects come first and foremost to its right. When you look at the standard treatments that exist today, where the giants you are talking about are active, what they can and cannot do. These mechanisms are primarily very important resistance mechanisms against standard treatments. We take it where the limitations are in the area today. The advantage of that is that this area is very large. That is why the giants are there. It is a large and important commercial area. You can also look at the segments, that they are really clear and important. Some of the standard treatments do not work so well in all anemesis. The ones that stimulate the brain merges, such as ESA or erythropoietin, and advanced brain preparations that boost the brain. Both of these are affected by the resistance mechanisms that we look at. For example, we usually talk about the molecule hepsidine, which is very mixed there. That is why it is important that we can reduce hepsidine in these cases. We place ourselves where the limitations are. They are well defined because the market is so well and the patient segment is so well understood and

mature. Can you say that it is an advantage that the landscape looks like this? You have a strategy that goes out on potential licensing or

purchase

of the company. It should be an advantage that there is a big competition and that it may be missing parts of

the whole world. The opponents understand what needs need to be covered. There is a good understanding of what needs are left.

If you look at the way forward, what is the big value driver for you in the near future? You may not think specifically of the stock market, but the derivative of the value for the company is also the stock market. What will drive your development in the near future?

For us developmentally, it is of course to get started with part two of the study. But then it is mainly the reading out of part two, which we see somewhere in the end of the year 2026. That is where the exciting parts happen. Here we have the advantages. If you think about the previous question, the defense against other areas where the risks are greater, we have the advantages in this area. It is also one of the reasons that there are many groups in the animal welfare and animal welfare area. One point is that the reading out of part two is very well defined. We measure blood value, we measure the brain value that goes into the blood cells. We can measure all of this very well defined. This area balances our indication, such as the precepts, where you break new ground. Where the conceptual risk is much greater, but perhaps the proximity and the upside are less well defined, but much greater. So you take a higher risk with a higher return. Here you have a very well defined risk, which is described and addressed by the measured value, which is very well defined, and at the same time a market that is so large, so it is still a pretty important part of this market. Therefore, we see that the measured value that we hope to generate in this clinical study should be able to be implemented in a more direct way in understanding what the value is compared to areas that have a higher conceptual risk.

Yes, very good John. I don't have so many more questions. I thought you would just give a short closing reflection. You have been in a number of round-table talks, partnering congresses, a lot has happened in the short term in the end. If you could give some reflections on everything you have been through and experienced during these sessions.

Yes, and that is what we can do at Modusir. We have a reputation that the areas we have chosen to study have very high needs and get great attention in those contexts. So when we are conducting this study, one of the reasons we are on track with the study in New Shipton is because there is a great need. Patients want to be part of the study, the doctors who conduct the study together with us, the so-called investigators, they are ready to be there and work with them. In the same way, we see the attention where we are invited to discussions when we talk about what from a global perspective is a remaining problem that we do not see a solution to. The question is, what are the technical advances in these areas that could help us to address this in the future? Yes, then we are on track. It is about both malaria and sepsis in the area. This need is very big and the innovations that go forward will also define the area. We make sure that we get signals that we are right and that the progress we have been able to see during the quarter will come from that. Thank you very much, John. We are grateful for all the support we get. We are grateful for our long-term investors, especially the Carvinian Development, who show their support for us and for patients and doctors who work with our studies. So that's a good conclusion.

Thank you very much. I wish you good luck and keep working forward.

Thank you very much, Jonathan. Thank you to everyone who has been involved in this.