2025

Annual Report

Annual report for the year ended 31 December 2025

Pharma Equity Group A/S Annual Report 2025 1

Slotsmarken 12, 1. th.

2970 Hørsholm

Denmark

Registered number: 26 79 14 13

www.pharmaequitygroup.com

Pharma Equity Group A/S

Pharma Equity Group A/S Annual Report 2025 2

Table of

Contents Page

Chairman &

CEO Letter

Company information

• Christian Vinding Thomsen, Chairman

• Omar S. Qandeel

• Lars Rosenkrantz Gundorph

• Peter Vilmann

• Charlotte Pahl

• Troels Peter Troelsen

Pharma Equity Group A/S

Group companies

Registered number (CVR)

Websites

Pharma Equity Group A/S:

Reponex Pharmaceuticals A/S:

www.pharmaequitygroup.com

www.reponex.dk

Pharma Equity Group A/S - listed parent company

Reponex Pharmaceuticals A/S - 100% owned subsidiary

26791413

Registered office

Slotsmarken 12, 1. th.

2970 Hørsholm

Denmark

Executive management

Christian Henrik Tange, Chief Executive Officer

Board of directors

4 March

Deadline for shareholder proposals

- Annual General Meeting

25 March

Annual Report 2025

16 April

Annual General Meeting

14 August

Interim Report

- for the six-month period ending 30 June 2026

Financial calendar 2026

2025

2024

TDKK

Profit/loss

25,382

40,610

Receivable Portinho S.A.

33,697

41,812

Cash and cas equivalents

498

4,234

Total assets

38,898

49,417

Equity*

25,472

32,686

Subordinated convertible debt

4,177

8,100

Pharma Equity Group A/S Annual Report 2025 4

CEO and Chairman letter

The Board of Directors of Pharma Equity Group A/S has

today considered and approved the Company’s annual

report for 2025, which can be summarised as follows:

• 2025 was a year of continued strategic development,

strengthened governance and focused execution for the

Group. Pharma Equity Group further strengthened its

position as a focused life sciences investment company,

while Reponex Pharmaceuticals A/S continued to

operate as a dedicated drug development company with

focus on progressing its prioritised development

programs. During the year, the Group further clarified

the structure, governance, responsibilities and operating

independence across PEG and Reponex. This

development has strengthened the basis for clearer

mandates, more disciplined capital allocation and

improved operational focus across the Group.

• Reponex achieved meaningful progress across its

prioritised pipeline in 2025. RNX-011 reached an

important milestone with regulatory approval to initiate

a pivotal Phase 2 study in secondary bacterial peritonitis.

The project continues to represent an important value

driver for the Group, and further work has been

undertaken to sharpen the study design in line with

expectations and requirements from potential future

licensing and collaboration partners. RNX-051 also

progressed during the year through continued

development work, further maturation of the

formulation and continued dialogue with potential

industrial partners. These programs remain central to

the Group’s near-term value creation and long-term

commercialisation strategy.

• In 2025, the Group also strengthened its strategic and

governance platform. PEG launched an updated

investment strategy designed to diversify the portfolio

across Pharma and Medical Devices, established an

Investment Committee, strengthened the Board

composition and implemented a new governance

framework to support disciplined decision-making,

capital allocation and future portfolio development.

During the year, the Group also developed and

implemented a broader set of governance documents,

charters and updated structures intended to support

scalability, accountability and execution as PEG

continues to develop as an investment and portfolio

management company.

• The Group’s financial performance improved compared

to 2024. Loss before tax was reduced to DKK -26.4

million from DKK -42.4 million in 2024. The

improvement mainly reflects lower development

spending, a narrower operational focus around RNX-

011 and RNX-051, a lean and flexible operating model,

and continued cost discipline. Administrative costs

remained stable, while research and development costs

were reduced as the Group concentrated its activities

around fewer prioritised programs. At the same time,

the result for 2025 was negatively impacted by a further

valuation adjustment related to the Portinho receivable,

reflecting continued uncertainty relating to timing and

recovery.

Key figures

for the year 2025

• The result for the year was DKK -25.4 million (2024: DKK -40.6 million).

The improvement reflects lower development spending, tighter focus and

continued cost discipline, partly offset by a further valuation adjustment

related to the Portinho receivable.

• Equity as of 31 December 2025 was DKK 25.5 million (2024: DKK 32.7

million). In 2025, DKK 18.2 million of convertible instruments were

classified as equity.

• Cash and cash equivalents at the end of 2025 were DKK 0.5 million

(2024: DKK 4.2 million). Cash at year-end reflects continued funding of

operations and legal recovery work.

Pharma Equity Group A/S – Annual Report 2025

* In 2025 inclusive convertible loans

Events after the end of the accounting period

At the beginning of 2026, the Group’s liquidity position was

strengthened through the establishment of a loan of DKK 2.2

million. Following the balance sheet date, Management has

continued to work actively to strengthen the Group’s capital

resources through advanced negotiations regarding

potential license agreements linked to RNX-051, discussions

with identified potential equity investors, continued work to

raise additional convertible loans, and ongoing dialogue

regarding credit facilities and other short-term financing

arrangements. Management expects the Group’s capital

preparedness to be further strengthened during 2026

through these parallel initiatives. Based on funding received

so far in 2026, available credit facilities and ongoing financing

initiatives, Management assesses that the Group has

sufficient funds to support planned activities for at least 12

months from 31 December 2025, even if no payment is

received from Portinho S.A.

Key figures for the year 2025

The result for the year was DKK -25.4 million (2024: DKK -

40.6 million). Equity as of 31 December 2025 was DKK 25.5

million (2024: DKK 32.7 million). Cash and cash equivalents

at the end of 2025 were DKK 0.5 million (2024: DKK 4.2

million).

Pharma Equity Group A/S Annual Report 2025 5

CEO and Chairman letter - continued

Contact person – Investor Relations

Any questions regarding the 2024 report can be

directed to the Company's CEO Thomas Kaas Selsø,

by email investor@pharmaequitygroup.com.

On the Company's website

www.pharmaequitygroup.com further information

and all published company announcements can be

found.

Hørsholm 25 March 2025

Christian Henrik Tange

CEO

Christian Vinding Thomsen

Chairman

Online presentation of the 2025 report

At 14.00 CET on 25 March 2026, CEO Christian H. Tange invites you to an online presentation of the 2025 report for the period

1 January 2025 – 31 December 2025 and significant events so far in 2026.

It is already possible to register for the presentation and send in questions in advance. Registration is free for everyone and can be

done via link:

https://www.inderes.dk/videos/pharma-equity-group-praesentation-af-arsregnskabet-for-2025

• At year-end, equity amounted to DKK 25.5 million and cash

and cash equivalents to DKK 0.5 million. During 2025, DKK

18.2 million of convertible instruments were classified as

equity, supporting the Company’s capital structure and

financing flexibility. PEG maintained a strong focus on

liquidity and capital preparedness throughout the year and

continued to operate with a financial model characterised by

low fixed costs, externalised execution and flexibility in the

timing and scale of activities. This remains an important part

of the Group’s ability to progress the portfolio while

preserving optionality.

• Recovery of the Portinho receivable remained a strategic

priority in 2025. PEG continued and intensified its legal and

protective actions and applied a probability-based valuation

approach reflecting the continued uncertainty related to

timing and outcome. The receivable remains a significant

balance sheet item, and Management has continued to

allocate substantial attention and resources to recovery

efforts while maintaining a prudent valuation approach in the

annual report.

• The year also marked an important leadership transition.

Effective from 1 April 2025, Christian Henrik Tange

assumed the role as CEO of Pharma Equity Group A/S. With

effect from the end of February 2026, Christian Henrik

Tange also assumed the CEO role in Reponex

Pharmaceuticals A/S following the resignation of Sebastian

Bo Jakobsen. This further supports alignment between PEG

and Reponex in the next phase of execution and portfolio

development.

The Groups principal activities and 2025 achievements

Pharma Equity Group A/S Annual Report 2025 6

Reponex operates with an organizationally efficient setup

supported by a flexible outsourcing strategy and executes

clinical development in collaboration with leading

institutions, hospitals, and experts within its therapeutic

areas.

The Group’s principal activities

Pharma Equity Group A/S (“PEG” or the “Company”) is listed on Nasdaq Copenhagen (Main

Market). The Group operates as a focused life sciences investment company with the objective

of building and developing a portfolio of high-potential assets and companies that can deliver

attractive long-term shareholder returns.

Following the acquisition of Reponex Pharmaceuticals A/S (“Reponex”) in 2023, the Group

comprises PEG as the parent company and Reponex as a wholly owned portfolio company. In

2025, the Group further strengthened this structure by clarifying governance, responsibilities,

and operating independence across PEG and Reponex. This enables PEG to act with greater

clarity as an investment and portfolio management company, while Reponex maintains full

operational focus on drug development.

Description of Reponex’ operations

Reponex is a clinical-stage biopharmaceutical company dedicated to developing new treatments

in areas with significant unmet medical need. Reponex focuses on diseases that are acute or life-

threatening, as well as chronic conditions that materially impact quality of life and may reduce

lifespan.

A key element of Reponex’ model is repositioning of known active pharmaceutical ingredients

(APIs). This approach is intended to reduce development risk, require lower investment, and

shorten the path to commercialization compared with traditional drug discovery. Reponex’

ambition is to progress its programs to value-inflection points supported by relevant clinical

data and to commercialize through exclusive licensing agreements after completed Phase II

studies, partnering with global pharmaceutical companies for late-stage development,

regulatory execution, and commercialization.

Reponex operates with an organizationally efficient setup supported by a flexible outsourcing

strategy and executes clinical development in collaboration with leading institutions, hospitals,

and experts within its therapeutic areas.

The Groups principal activities and 2025 achievements - continued

Pharma Equity Group A/S Annual Report 2025 7

2025 achievements

2025 was a transformative year for the Group—marked by strategic clarity, strengthened

governance, and important operational milestones across both PEG and Reponex. The Group

enters the next phase with strong momentum, clear priorities, and deep conviction in the value it

is building for patients and shareholders.

Reponex: key clinical and development progress

Reponex achieved meaningful progress across its pipeline in 2025, reinforcing both strategic

direction and execution capability:

• RNX-011 (bacterial peritonitis): Reponex received approval to initiate the next round of

clinical trials for RNX-011, representing a significant step forward in generating additional

clinical evidence in a serious condition with high unmet medical need.

• RNX-051 (colorectal cancer): Reponex advanced the program through the development of

a mucoadhesive liquid vehicle designed to successfully retain the formulation—supporting

the continued progress of the program and its clinical readiness.

Leadership transition to support the next growth phase

During the year, PEG completed a CEO transition from Thomas Kaas Selsø to Christian Henrik

Tange. The change reflects the Board’s ambition to accelerate strategic execution and

strengthen PEG’s positioning as a focused investment company with disciplined governance and

portfolio development.

Clearer Group structure and stronger operational focus

As part of the development of a new Group strategy, PEG implemented a restructured

organizational and governance framework so that PEG and Reponex operate more

independently with clearer mandates. This structural evolution strengthens strategic clarity and

execution power—positioning PEG as the investment platform and Reponex as a dedicated drug

development portfolio company.

Launch of an updated investment strategy—diversifying across Pharma and Medical

Devices

In 2025, PEG launched an updated investment strategy designed to accelerate growth, diversify

the portfolio across Pharma and Medical Devices (including MedTech), and enhance long-term

shareholder returns. The strategy positions PEG as a premier consolidator in life sciences with a

clear ambition to identify, acquire, and develop high-potential early-stage innovations—

particularly originating from leading Scandinavian research institutions. The portfolio approach

is designed to balance long-term, high-impact Pharma investments (including Reponex) with

medium-term MedTech and other device projects that may offer faster value realization and

exit opportunities.

Establishment of an Investment Committee to strengthen investment governance

As a natural consequence of PEG’s strengthened positioning as an investment company, the

Group established an Investment Committee (“IC”). The IC is designed to professionalize PEG’s

investment process through rigorous, expert-led evaluation and ongoing portfolio monitoring.

The IC will systematically assess potential investments against PEG’s strategy and criteria,

monitor progress and risk across portfolio companies, and support disciplined capital allocation

and exit planning. The IC may engage external independent experts when needed to strengthen

due diligence within scientific, technical, regulatory, and commercial domains.

Portfolio expansion: LOI signed for Otiom

To support PEG’s broadened investment scope, the Group entered into a Letter of Intent (LOI)

with Otiom regarding the contemplated acquisition of the company. This step aligns with PEG’s

ambition to build a diversified life sciences portfolio, including opportunities within Medical

Devices and MedTech.

Strengthened Board composition and commitment to gender balance

The Company strengthened its Board of Directors by adding two additional members. PEG

continues to pursue gender balance as part of its governance ambitions, and one of the new

appointments contributes directly to this objective.

A complete new set of charters to increase clarity, efficiency, and execution

During the year, PEG developed and implemented a comprehensive new set of charters to

strengthen governance, clarify decision-making structures, and support operational efficiency

across the Group. These charters form an important foundation for consistent execution,

accountability, and scalability as the Group grows its portfolio and investment activity.

PEG Group PEG Group PEG Group Reponex Reponex

2025 2024 2023 2022 2021

TDKK TDKK TDKK TDKK TDKK

Revenue 0 0 0 0

*EBITDA -16,887 -21,052 -20,411 -10,738 -8,840

Depreciation, amortisation and impairment losses -286 -235 -218 -539 -3,763

Operating profit/loss (EBIT) -17,173 -21,287 -20,629 -11,277 -12,603

Net finansial Items -1,126 -4,950 -1,548 -22 -251

Loss before fair value adjustment Portinho -18,299 -26,237 -22,177 -11,299 -12,854

Allowance Portinho receivable -8,115 -16,188 -4,403 0 0

Loss after fair value adjustment and before tax -26,414 -42,425 -26,579 -11,299 -12,854

Tax on profit / loss 1,033 1,815 2,233 1,855 2,971

Profit/loss -25,382 -40,610 -24,347 -9,444 -9,883

Total assets 38,898 49,417 67,737 21,516 28,708

Investments in tangible assets 0 0 73 0 0

Equity 24,317 32,686 25,333 18,911 27,371

Subordinated convertible debt 4,177 8,100 7,838 0 0

**Equity ratio 65% 66% 37% 88% 95%

Earnings per share -0.02 -0.02 -0.02 -0.02

Pharma Equity Group A/S Annual Report 2025 8

Financial review

Key figures

In 2025, Pharma Equity Group continued to run a lean, highly flexible

operating model where core internal resources are kept to a minimum, and

clinical and development activities are primarily executed through external

specialists. This structure is designed to reduce fixed costs and preserve

financial flexibility while progressing the portfolio.

Operationally, the year was characterized by a clear prioritization of

development resources towards two key programs, RNX-011 and RNX-051,

and continued, intensified efforts to recover the Portinho receivable through

legal proceedings and protective actions.

The Group’s operating result improved materially compared to 2024,

reflecting lower development spend and stable overheads, while the reported

result was also impacted by an adjustment of the Portinho receivable in 2025

following a decision made by the Danish Business Authority

(Erhvervsstyrelsen) in November 2025.

Revenue for the year amounted to DKK 0, while loss before tax amounted to

DKK 25.4m. This compares to the original guidance of revenue of DKK 11m

and a loss before tax of DKK 4–7m. On 29 December 2025, the Company

revised its guidance to revenue of DKK 0m and a loss before tax of DKK 18–

20m following the postponement of licence agreements. Revenue was in line

with the revised guidance, while loss before tax was higher than guided due to

a DKK 8.1m adjustment of the Portinho receivable, which was not reflected in

the updated guidance.

*EBITDA= Earnings before financials, tax and depreciation.

** Equity ratio=Total Equity / Total Assets X 100%

Since the PEG/Reponex transaction is accounted for as a reversal take-over, it is Reponex Figures which are presented as comparative figures for 2021 –

2022.

Pharma Equity Group A/S Annual Report 2025 9

Financial review

Comments on consolidated

financial statements for 2025

Group performance (Consolidated)

The Group generated no revenue in 2025 (2024: DKK 0), as the portfolio

remains in development. The Group’s activities in 2025 continued the work

on preparing the portfolio of clinical programs to be ready for

commercialization in the coming years, while maintaining tight cost control

and flexibility in the operating model.

EBIT improved to DKK -17.2 million (2024: DKK -21.3 million). The

improvement was primarily driven by lower development spending as

activities were concentrated around RNX-011 and RNX-051, with fewer

parallel programs consuming resources.

• R&D costs were reduced to DKK 5.1 million (2024: DKK 9.0 million),

reflecting the narrower focus and the continued use of external

execution rather than building a larger permanent organization.

• Administrative costs were stable at DKK 12.1 million (2024: DKK 12.3

million), consistent with the requirements of operating a listed company

and maintaining readiness for portfolio progress, governance,

reporting, and investor communication.

The Group recognized a valuation adjustment related to the Portinho

receivable of DKK -8.1 million in 2025 (2024: DKK -16.2 million). The

adjustment in 2025 was made as a consequence of a decision by the Danish

Business Authority (Erhvervsstyrelsen) in November 2025 and reflects that

the receivable remains outstanding and subject to continued uncertainty.

The reduction versus 2024 reflects that the receivable was already subject

to significant write-down/valuation adjustments in prior periods, while 2025

reflects further adjustments and continued uncertainty.

PEG has continued and intensified its recovery efforts, including ongoing

legal proceedings and protective actions aimed at securing payment, and

arbitration proceedings in relation to the broader transaction structure.

The Group’s loss before tax improved to DKK -26.4 million (2024: DKK -

42.4 million). After tax, the loss was DKK -25.4 million (2024: DKK -40.6

million).

Tax income of DKK 1.0 million (2024: DKK 1.8 million) relates primarily to

expected refunds under Danish tax rules for eligible R&D activities.

Equity at year-end was DKK 25.5 million (2024: DKK 32.7 million). During

2025, DKK 18.2 million of convertible instruments were classified as equity,

strengthening the equity base and supporting the Company’s financing

flexibility.

Total assets were DKK 38.9 million (2024: DKK 49.4 million), mainly driven

by (i) the receivable balance and (ii) lower cash at year-end. Cash and cash

equivalents were DKK 0.5 million (2024: DKK 4.2 million), reflecting the

continued funding of operations and legal recovery work.

Parent company

The Parent Company’s loss for the year was DKK -18.8 million (2024: DKK -

28.7 million). The result was driven by three main factors:

1. Portinho receivable adjustment: DKK -8.1 million (2024: DKK -16.2

million). The adjustment in 2025 was made as a consequence of a

decision by the Danish Business Authority (Erhvervsstyrelsen) in

November 2025.

2. Administrative costs: DKK 11.0 million (2024: DKK 9.3 million),

reflecting the cost base associated with being listed and the

substantial work related to the dispute and recovery process.

3. Net financial items improved: financial income of DKK 1.6 million

(2024: DKK 0.2 million) and financial expenses of DKK -2.8 million

(2024: DKK -4.9 million), i.e. a materially improved net financial

expense.

Financial expenses decreased primarily due to the ongoing evolution of the

Group’s financing structure, including the classification of a portion of

convertible instruments as equity. This reduces interest-bearing debt

pressure and supports improved flexibility, although financing costs remain

meaningful given the Company’s reliance on debt and convertible funding.

Parent company equity was DKK 729.9 million at year-end (2024: DKK

730.5 million), primarily reflecting the accounting value of the investment in

the subsidiary.

The Parent Company balance sheet is therefore not directly comparable to

the consolidated equity, as it is driven by the valuation of the subsidiary

investment rather than operating assets and liabilities.

Liquidity and capital structure – focus on flexibility

PEG’s operating model remains focused on maintaining a low fixed

cost base and funding development through disciplined spending,

externalised execution and flexible financing instruments. The

classification of DKK 18.2 million of convertible instruments as equity

supports the Group’s capital structure. In addition, the receivable

from Portinho S.A. remains a significant balance sheet item and a

strategic priority, with continued efforts to recover the outstanding

amount.

As described in Note 20, Management continues to strengthen the

Group’s liquidity position and funding options to support the

planned activity level for 2026, including in a scenario where no

payment is received from Portinho S.A. Based on funding secured so

far in 2026, available credit facilities, including credit facilities

totalling DKK 2.2 million, and the funding initiatives currently being

pursued, Management assesses that the Group has sufficient

liquidity to carry out its planned activities and meet its financial

obligations as they fall due for at least 12 months from 31 December

2025.

Accordingly, Management considers it appropriate to prepare the

consolidated and parent company financial statements on a going-

concern basis. Reference is made to Note 20 for further information

on liquidity and going concern.

Outlook – execution and monetization pathway

PEG’s near-term value creation remains linked to (i) the continued

progression of RNX-011 and RNX-051 and (ii) creating optionality for

commercialization through partnering and/or other monetization routes.

The Company’s lean execution model is intended to allow PEG to pursue

these paths with financial flexibility and controlled risk, while recovery

efforts continue in parallel.

Pharma Equity Group A/S Annual Report 2025 10

Outlook and objectives 2026

In 2026, the Group will focus on initiating key clinical studies and

strengthening its investment platform

In 2026, the Group will continue executing its strategy as a focused life

sciences investment company with Reponex Pharmaceuticals A/S

(“Reponex”) as a dedicated drug development portfolio company. The

Board of Directors and Executive Management consider the chosen

strategy—prioritising long-term value creation through disciplined

development, partnerships and selective portfolio expansion—to be the

most responsible and value-creating approach for shareholders.

The Group’s objectives for 2026 are centred on three priorities:

• Continue to develop Reponex’ key programs towards value-

inflection points that support future licensing and partnership

agreements

• Identify and assess additional acquisition opportunities aligned

with PEG’s updated investment strategy across Pharma and

Medical Devices (including MedTech)

• Strengthen the Group’s capital preparedness to ensure robust

execution of the strategy and support portfolio development

In executing these priorities, the Group will continue to maintain a lean

cost base and a high degree of cost flexibility, supporting capital

efficiency while ensuring continued progression of the portfolio and

development activities. The Group’s preferred commercialisation

pathway remains to progress assets to relevant clinical milestones and

pursue value realisation through partnership and licensing structures.

2026 Guidance

For 2026, the Group expects revenue in the range of DKK 3.0–8.6

million and EBIT to be negative in the range of DKK 5.8–11.4 million.

This guidance reflects the inherent uncertainty associated primarily

with the timing of a potential licensing agreement and the initiation of

RNX-051. The expected financial performance remains consistent with

the Group’s strategy of progressing assets towards value-inflection

points and pursuing value realisation through partnership and licensing

structures.

Reponex – continued development and partnership focus

Reponex will maintain a focused development effort aimed at generating the

clinical and operational milestones required to support future partnership

and licensing processes.

RNX-011 (peritonitis) – clinical initiation in Q1 2026

For RNX-011, the clinical study protocol has been approved and is subject to

targeted adjustments intended to sharpen the study design in line with

expectations and requirements from potential licensing and collaboration

partners, including ensuring that clinical endpoints clearly reflect the

observed treatment response. The Group expects initiation of the clinical

trial and enrolment of the first patients in Q1 2026.

RNX-051 (colon adenomas/colorectal cancer) – advanced partnership

discussions and trial initiation in Q2/Q3 2026

PEG is engaged in advanced and constructive discussions with potential

industrial partners regarding RNX-051. These discussions cover structures

that may lead to a licensing or partnership agreement, and the Company

expects to be able to conclude these discussions during the first half of

2026. In parallel, finalisation of the clinical study protocols is ongoing and

comprises an international, multicentre clinical study. The Group expects

initiation of the clinical trial and enrolment of the first patients in Q2 or Q3

2026.

Portfolio development, acquisitions and capital preparedness

In line with the updated investment strategy, PEG will continue to identify

and evaluate acquisition opportunities across Pharma and Medical

Devices/MedTech and apply disciplined screening and governance through

the Investment Committee. Discussions relating to the Otiom business

continue to progress satisfactorily and in line with the Company’s strategic

objectives; no further details can be disclosed at this time.

The Group will continue to prioritise capital preparedness in 2026 to

support execution of the strategy, including continued development of

Reponex’ programs and potential acquisitions. The Company will evaluate

relevant financing alternatives as appropriate and maintain an active

dialogue with existing and potential investors.

Pharma Equity Group A/S Annual Report 2025 11

Product and development programs

Reponex Pharmaceuticals A/S is a clinical Phase 2 biopharmaceutical company developing new, effective

treatments for diseases with significant patient and societal impact, where current treatment is

insufficient or absent. The company uses repositioning of known drug substances, meaning the active

compounds already have a well-documented toxicity and side-effect profile. This approach reduces risk

and can potentially shorten development timelines compared with traditional drug development.

Reponex’ ambition is to create value by advancing its clinical programs to a stage with relevant clinical data

that can form the basis for licensing agreements with global pharmaceutical companies. The company

operates with a lean organizational structure and an aggressive outsourcing strategy that ensures

flexibility and cost efficiency.

Strategic Focus and Pipeline Prioritization

As announced in company announcement no. 32 of 13 December 2024, Reponex Pharmaceuticals A/S has

based on an ongoing evaluation of the clinical pipeline and a range of fundamental commercial criteria,

including medical need, patient recruitment, regulatory requirements, probability of success, and

requirements for both human and financial resources—decided to give highest priority to the following

three development programs:

• RNX-051 for the treatment of colorectal adenomas and colorectal cancer

• RNX-011 for the treatment of secondary bacterial peritonitis

• RNX-041 for the treatment of IBD (pouchitis)

All three development programs have demonstrated relevant, informative, and strong clinical data and

have obtained patent protection in the company’s primary geographic areas.

The company’s strategy of prioritizing long-term value creation over short-term, suboptimal agreements

was further underlined in company announcement no. 16 of 29 December 2025, in which the company

confirmed that the adjustment of previously communicated revenue expectations does not reflect a

deterioration in the underlying asset quality or potential, but is instead the result of a deliberate strategic

choice.

Reponex Pharmaceuticals – Drug Candidates and

Clinical Development

Pharma Equity Group A/S Annual Report 2025 12

Product and development programs

RNX-051 – Colorectal Adenomas and Colorectal Cancer

Colorectal cancer is the third most common cancer globally and

the second most frequent cause of cancer-related deaths. The

development of colorectal cancer is typically a gradual process

that often begins as small benign polyps (adenomas) on the inner

surface of the colon. Early detection and removal of adenomas is a

key part of prevention strategies, but there remains a significant

risk of recurrence after polyp removal.

RNX-051 is a novel formulation combining metronidazole and

fosfomycin, forming an in situ gel upon direct application to the

intestinal wall, for example during a colonoscopy procedure. The

formulation is aimed at eliminating bacterial biofilms that are

believed to play a central role in chronic inflammation and

progression of colorectal neoplasia. Research into the role of

biofilms in colorectal cancer development is growing rapidly, and

the presence of bacteria such as Fusobacterium nucleatum in

colorectal tumors is associated with increased cancer risk and

poorer clinical outcomes.

In 2024, Reponex received preliminary results from the funded

Phase 2 study conducted in collaboration with the Center for

Surgical Science at Zealand University Hospital, which evaluated

RNX-051’s effectiveness in eliminating protective biofilm around

adenomas and cancer polyps. The initial results are promising.

As announced in company announcement no. 16 of 29 December

2025, the company is in advanced and constructive dialogue with

potential industrial partners regarding RNX-051. The discussions

include structures that may lead to a licensing or partnership

agreement, and the company expects to be able to conclude these

negotiations in H1 2026. The dialogues include relevant clinical,

regulatory, and industrial collaborations aimed at supporting a

robust study design and a future partnership and licensing

process.

At the same time, finalization of the final study protocols for RNX-

051 is ongoing. The protocols are currently in a sub-final draft and

include an international, multicenter clinical study. The company

has worked purposefully to identify and address significant

regulatory and operational barriers to conducting international

clinical studies with RNX-051, and these barriers have now been

overcome. The study setup and timeline have been established,

and at present no significant obstacles to conducting the study

have been identified.

These protocols are assessed to be the last necessary studies that

potential license and collaboration partners in the ongoing

dialogues are expected to require prior to entering into an

agreement. Concluding the negotiations will constitute the first

significant milestone toward a final licensing agreement and thus a

decisive step in realizing RNX-051’s commercial potential.

Pharma Equity Group A/S Annual Report 2025 13

Product and development programs

RNX-011 – Secondary Bacterial Peritonitis

Secondary bacterial peritonitis is a serious and potentially life-

threatening condition characterized by inflammation and infection

of the abdominal cavity. The condition is most often an acute

emergency and accounts for approximately 1% of all acute hospital

admissions, requiring immediate surgical intervention, drainage,

and broad-spectrum antibiotic treatment. Patients still have poor

prognoses, and there is a lack of effective local treatments to

prevent severe complications.

RNX-011 is an innovative formulation combining granulocyte-

macrophage colony-stimulating factor (GM-CSF) with the broad-

spectrum antibiotics fosfomycin and metronidazole. The

formulation is specifically designed for direct intraperitoneal

administration during surgical procedures. In an exploratory study

funded by Reponex, patients treated with RNX-011 showed

markedly improved outcomes compared with those receiving

standard treatment with intravenous antibiotics, including

significantly shorter hospital stays and no infectious complications.

On 1 September 2025, the company announced in company

announcement no. 10 that Reponex has received regulatory

approval to initiate a pivotal Phase 2 study with RNX-011. The

approval is a key milestone for the company and a validation of the

scientific strategy for RNX-011. The study is a randomized,

placebo-controlled trial investigating a unique triple-action

therapy combination administered directly into the abdominal

cavity during surgery. The purpose of the study is to document

that RNX-011 can reduce the number of severe postoperative

complications, such as abscesses and the need for reoperation,

which is the primary value-creating endpoint for potential licensing

partners. The study will also measure the treatment’s effect on

local inflammation (IL-6) as well as patients’ overall recovery

(QoR-15). The study is expected to include 32 patients.

As announced in company announcement no. 16 of 29 December

2025, significant progress has been made for RNX-011, and the

company has established a clear and focused strategy for

continued development. The approved study protocol is

undergoing targeted adjustments to sharpen the study design in

line with expectations and requirements from potential licensing

and collaboration partners, with a particular focus on ensuring that

the clinical endpoints clearly reflect the observed treatment

response and thereby support the project’s differentiation and

licensing attractiveness.

RNX-011 has shown promising results within the peritonitis

indication. Based on these results, the company is working

purposefully to ensure that the approved study design, to the

greatest extent possible, supports the project’s attractiveness and

value creation in a future licensing process. The completed and

planned activities are overall assessed to constitute the last

necessary studies before the company expects to initiate formal

licensing dialogues. The strategy aims to secure further improved

data and results, strengthen the project’s attractiveness to

potential licensing partners, and maximize potential shareholder

value in future agreements.

Pharma Equity Group A/S Annual Report 2025 14

Product and development programs

RNX-041 – Inflammatory Bowel Disease (Pouchitis)

Inflammatory bowel disease (IBD) comprises a group of chronic inflammatory conditions of the

gastrointestinal tract, including Crohn’s disease and ulcerative colitis. IBD affects up to 7 million

people globally, and incidence is increasing. Pouchitis is a complication that can occur in patients who

have undergone ileal pouch-anal anastomosis (IPAA)—a surgical procedure for treating ulcerative

colitis. Pouchitis represents one of the most common long-term complications after IPAA and can in

some cases lead to pouch failure and permanent ileostomy.

RNX-041 is an innovative formulation combining GM-CSF with the broad-spectrum antibiotics

fosfomycin and metronidazole, designed for direct administration into the pouch via catheter and/or

enema. The formulation aims to restore the balance between immune cell activity and bacterial

growth.

As stated in the annual report for 2024, RNX-041 is actively included in part 2 of the ongoing clinical

Phase 2 proof-of-concept study regarding treatment of pouchitis. The study aims to establish a safety

profile and investigate the therapeutic effect of both single-dose and multi-dose treatment regimens.

Insights from this study are also expected to be instructive for further exploration of Crohn’s disease,

as pouchitis and Crohn’s disease share pathogenic signaling pathways and inflammatory mechanisms.

Pharma Equity Group A/S Annual Report 2025 15

Product and development programs

RNX-021, RNX-022 and RNX-023 – Chronic Skin Ulcers

Chronic skin ulcers are a challenging and persistent medical condition involving impaired wound

healing and a prolonged inflammatory response. Chronic wounds are estimated to affect

approximately 1–2% of the population in developed countries during their lifetime, according to a

systematic review published in the International Wound Journal. The global wound care market was

estimated at USD 24.1 billion in 2025, with expected continued growth at a compound annual growth

rate of 4.3% from 2026 to 2033, according to Grand View Research

RNX-021, RNX-022 and RNX-023 are formulations of GM-CSF alone or in combination with various

antimicrobial agents, aimed at restoring immunological balance in the wound environment, removing

bacteria and dead tissue, and stimulating the formation of new epithelium. The company has obtained

granted patents for RNX-022 in the EU and the USA and for RNX-023 in the EU. The patents are valid

until 2035, with the possibility of extension to 2040 upon obtaining a Supplementary Protection

Certificate (SPC).

In line with the strategic prioritization of the pipeline announced in December 2024, the company has

chosen to focus its clinical and financial resources on the three highest-priority programs. The wound-

healing candidates are still considered to be of significant clinical and commercial interest and will be

pursued through strategic clinical and industrial collaborations. The company decided to unblind the

proof-of-concept study of RNX-021 for the treatment of chronic venous leg ulcers, and study data will

be analyzed to obtain substantial knowledge and insight specifically regarding the use of GM-CSF in

the treatment of chronic leg ulcers.

Pharma Equity Group A/S Annual Report 2025 16

Product and development programs

Candidate Europe US Japan RU Expiration*

RNX-011 Granted (DE, FR, IT, NL, UK) Granted +

pending

Granted - 2035/2040

RNX-021 - - - - -

RNX-022 Granted (ES, UK, UP) + pending Granted - - 2035

RNX-023 Granted (DE, FR, IT, NL, UK) Pending - Granted 2035

RNX-041 Pending Granted - - 2035

RNX-051 Granted (ES, UK, UP*)

+ pending (incl. HK)

+ completely new DK priority appl. filed

Pending Granted +

pending

Pending 2039/2045

*Without Supplementary Protection Certificate (SPC). SPC can potentially provide up to 5 years of additional protection. UP =

Unitary Patent..

Granted = Fully approved and valid in the respective countries

Allowed = The application has been approved by the superior authority (European Patent office), now it is translated into different languages and must then go through the national systems.

Pending = The application is still pending by the authority.

**UP = Unitary Patent (date of effect: 022: 27-3-2024; 051: 07-02-2024) covers Austria, Belgium, Bulgaria, Denmark, Estonia, Finland, France, Germany, Italy, Latvia, Lithuania, Luxembourg, Malta,

Holland, Portugal, Slovenia and Sweden.

Patent Portfolio

Reponex has a broad patent portfolio protecting the company’s drug candidates in the most important geographic markets. Patent protection is a crucial prerequisite for

the company’s commercial strategy and licensing negotiations.

Overall Assessment and Forward Focus

The Board of Directors and management assess that the chosen strategy—including foregoing short-term revenue—is the most responsible and value-creating approach for shareholders. RNX-051 is in active and advanced partner dialogues, while

for RNX-011 the company is focusing on further value creation through targeted development ahead of the licensing process.

The company continues to stand on a solid strategic foundation with a focused pipeline, advanced dialogues regarding RNX-051, a clear development strategy for RNX-011, and an unambiguous objective of realizing maximum long-term value

through partnerships and licensing agreements. The company will continuously keep the market informed of significant progress.

Pharma Equity Group A/S Annual Report 2025 17

Corporate Governance

2025 Governance upgrade – key changes

• New overall strategy (May 2025) and a new communication strategy (2025), aligning execution

priorities with clearer investor communication.

• Updated committee charters and refreshed governance documentation, clarifying decision rights,

responsibilities and escalation paths.

• Updated Code of Conduct (2025), reinforcing integrity, compliance and responsible business

practices across the Group.

• Sharper committee structure: an Investment Committee was established to support disciplined

capital allocation, and the Research & Development Committee was closed with relevant activities

transitioned to Reponex.

Committee charters (terms of reference) and the full Statutory Report on Corporate Governance are

available on PEG’s website.

Corporate Governance Statements – Pharma Equity Group

1.1 The Board of Directors

PEG is managed in a two-tier structure composed of the Board of Directors and the Executive

Management. The Board of Directors provides the overall strategic leadership of PEG and supervises

the Company’s performance, risk exposure and market communication. This structure enables clear

separation between strategic oversight and operational execution and provides shareholders with

transparency about where accountability resides.

The Board sets guidelines for the distribution of responsibilities between the Board and the Executive

Management, including requirements for management reporting and escalation of matters of material

importance. By defining decision rights and reporting expectations, the Board’s governance framework

supports timely decisions while maintaining appropriate control over matters that can materially affect

PEG’s strategy, capital allocation, portfolio development or disclosure obligations.

The Executive Management is appointed by the Board and is responsible for day-to-day operations

and execution within the framework set by the Board. Matters of an unusual nature, material

importance or potentially far-reaching implications are submitted to the Board for decision, ensuring

that key strategic and financial judgements are anchored at Board level.

During 2025, PEG strengthened its governance foundation through a new overall strategy, an updated

communication strategy, updated committee charters and an updated Code of Conduct. These

documents create a coherent governance package that supports consistent prioritisation, disciplined

preparation of decisions and clear expectations for conduct and communication.

1.2 Composition of the Board of Directors

The Board elects a Chairperson and a Vice Chairperson, which supports continuity and effective

leadership of the Board’s work. Board members are nominated and elected based on competencies

and experience relevant to PEG’s strategy and development stage. The Board assesses the

competence mix on an ongoing basis and considers continuity, renewal and diversity as part of its

composition assessment.

More than half of PEG’s shareholder-elected Board members are assessed to be independent, which

strengthens the Board’s ability to make balanced decisions and exercise effective oversight in the

interest of all shareholders.

As of 31 December 2025, PEG’s Board consisted of six shareholder-elected members. The

Chairperson of the Board was Christian Vinding Thomsen. Other Board members were Lars

Gundorph, Omar Quandel, Charlotte Pahl and Troels Peter Troelsen. Information about the Board

members’ qualifications and other managerial duties is disclosed in connection with the convening of

the Annual General Meeting and is available on PEG’s website, enabling shareholders to make

informed voting decisions.

In 2025, the Board of Directors held fourteen Board meetings. The Board works according to an

annual plan that sets the cadence and key focus areas for the year. This supports structured follow-up

on strategy, portfolio matters, financing activities and disclosure-relevant topics, while allowing

flexibility to address matters arising during the year.

1. Corporate Governance

Pharma Equity Group A/S ("PEG") is committed to a governance framework that strengthens

confidence in the Company’s decision-making, supports transparent dialogue with the capital market

and enables disciplined execution of PEG’s strategy. Governance in PEG is designed to ensure clear

accountability, a robust decision process and a predictable flow of information to shareholders and

other stakeholders.

PEG applies the Recommendations on Corporate Governance issued by the Committee on Corporate

Governance (Komitéen for god Selskabsledelse) on a "comply-or-explain" basis. In practice, this

approach provides shareholders with a clear view of how PEG is governed and, where PEG has chosen

a different approach, why that approach is considered appropriate given PEG’s size and development

stage.

At least annually, and as part of the Board’s annual plan, the Board of Directors and the Executive

Management review PEG’s governance set-up to ensure that governance documentation, committee

mandates and reporting practices remain fit for purpose and aligned with PEG’s strategic priorities.

In accordance with section 107 b of the Danish Financial Statements Act, PEG has prepared a

Statutory Report on Corporate Governance for the financial year 2025. The full report (including the

comply-or-explain overview) is available on PEG’s website. The following text is an extract intended to

provide an accessible overview of how PEG’s governance framework operates in practice.

Pharma Equity Group A/S Annual Report 2025 18

Corporate Governance

1.4 Diversity in Management

PEG’s Board discusses the Company’s activities and development needs at least annually to

ensure that relevant diversity is addressed across management levels in a manner

proportionate to PEG’s size and organisational set-up. PEG has adopted a diversity policy which

is included in the management commentary and published on the Company’s website. Diversity

considerations form part of Board recruitment and succession planning and are assessed

together with the competencies required to support PEG’s strategy and long-term

development.

Entity

2025 allocation

(male/female)*

2024 allocation

(male/female)*

Target (male/female)

Pharma Equity Group A/S

Board of Directors

5/1 5/0

Equal representation

by 2027 at the latest**

Pharma Equity Group A/S

Executive Board and other key management personnel

1/0 1/0

Equal representation

to the extent that

more than one person

is employed by the

Company**

The Group

Executive Board for the parent and other key management

personnel in parent and subsidiaries

2/1 2/1

Equal representation

by 2027 at the latest**

* The Company applies the exemption rule whereby allocation only is shown for 2025 and 2024. In future years, the table will be

expanded each year until a 5-year history can be presented.

** Equal representation means 50-50% in case of an even number of Directors and 40-60% in case of uneven number of

Directors.

The gender composition targets and the current composition of the Board of Directors, Executive Management

and key management personnel are set out in the table above. PEG is committed to improving gender balance

over time while maintaining a competence-based approach to recruitment and appointments. Due to the

current size of the Executive Management, balanced representation at this level is not expected until the

management team is expanded. During 2025, the gender composition of the Board of Directors improved from

5/0 to 5/1, and PEG therefore expects to achieve its target in 2027 rather than 2026.

1.3 Board Committees

The Board uses committees to strengthen preparation of decisions and deepen

oversight in key areas. Committees review matters within their remit ahead of

Board meetings and prepare recommendations for the Board. This committee

structure enables the Board to combine efficient decision-making with robust

scrutiny of complex topics.

In 2025, PEG adjusted its committee structure as part of the governance

upgrade. PEG continued to operate an Audit Committee and a Nomination &

Remuneration Committee and established an Investment Committee. During

2025, the Research & Development Committee held two meetings focusing on

PEG’s drug candidates and trials before the committee was closed and the

relevant activities were transitioned to Reponex. PEG’s committee charters

specifying tasks and responsibilities are available on PEG’s website.

The Audit Committee supports the Board’s work on reliable financial reporting,

internal control and risk oversight. In 2025, the Audit Committee held four

meetings and reviewed PEG’s financing strategy and fundraising process,

reviewed key financial reporting prior to Board approval (including the year-end

reporting for 2024 and the 2025 half-year report), discussed the auditors’ audit

plan and audit book comments, monitored auditor independence and the

approval of non-audit services, and reviewed significant accounting policies and

estimates as well as related-party matters and key uncertainties. The Committee

also followed PEG’s risk management process relevant to financial reporting,

including cyber risk preparedness and insurance coverage. This work supports

shareholder confidence that PEG’s financial reporting and related control

environment are subject to structured Board oversight.

The Nomination & Remuneration Committee supports the Board in relation to

Board composition, competencies, succession considerations and remuneration

governance. In 2025, the Committee held one meeting and reviewed the Board’s

composition and competence needs in light of PEG’s strategy, supported the

Board evaluation process and reviewed remuneration proposals for the Board

and its committees for approval by the Annual General Meeting, as well as

remuneration levels for the Executive Management. This governance supports

alignment between the Company’s leadership set-up, PEG’s strategic needs and

the interests of shareholders.

The Investment Committee was established during 2025 to strengthen

governance and preparation of investment-related matters. The Committee’s

mandate is defined in its charter and supports structured evaluation and decision

preparation for the Board. By formalising preparation of investment decisions,

the committee set-up supports disciplined capital allocation and consistency in

PEG’s decision process.

Pharma Equity Group A/S Annual Report 2025 19

Corporate Governance

1.5 Evaluation of the Board

In accordance with the Board of Directors’ annual plan, the Board conducts an annual self-evaluation covering the

Board’s work, efficiency, contribution and composition, including the committee structure, the quality of materials

provided for Board decisions, Board dynamics and the Chairperson’s leadership. The Board intends to engage

external assistance for the evaluation at least every third year. The purpose of the evaluation is to identify concrete

improvements that strengthen the Board’s ability to support PEG’s execution and supervision.

The Board evaluates the work and results of the Executive Management on an ongoing basis against

pre-established criteria, with a formal review at least annually. This provides a structured basis for performance

follow-up and supports clarity on priorities and expectations.

1.6 Remuneration Policy and Remuneration Report

The remuneration of the Board of Directors and the Executive Management is governed by PEG’s Remuneration

Policy approved by the Annual General Meeting. The policy is designed to be competitive and aligned with PEG’s

long-term shareholder interests and is presented for approval at least every fourth year. Where variable

remuneration elements are used, the policy provides defined limits and performance criteria and includes a

clawback option. This framework supports alignment between remuneration and long-term value creation while

maintaining transparency for shareholders.

In accordance with section 139 b of the Danish Companies Act, PEG prepares an annual remuneration report

describing remuneration paid to the individual members of the Board of Directors and the Executive Management.

The remuneration report is presented to the Annual General Meeting for an advisory vote and is made available on

PEG’s website.

Link to Remuneration Policy: https://pharmaequitygroup.com/remuneration-policy/

Link to Remuneration Report: https://pharmaequitygroup.com/remuneration-policy/

1.7 Business Ethics and Data Ethics Policy

PEG promotes a good culture and sound values as a core element of governance and long-term value creation. In

2025, the Board defined PEG’s overall strategy and assessed how the strategy supports PEG’s purpose and long-

term development. To support consistent expectations for employees and stakeholders, PEG adopted an updated

Code of Conduct in 2025. The Code of Conduct sets out key principles for responsible conduct and supports a

common standard for behaviour across the organisation and in PEG’s stakeholder interactions.

PEG has not adopted a separate standalone corporate social responsibility policy in 2025. Based on PEG’s size and

current activity profile, the Board assessed that resources should be prioritised elsewhere at this stage, while

noting that expectations and governance in this area will be reevaluated during 2026. PEG’s approach is therefore

to maintain clear standards through its governance documentation and to revisit formal CSR policy requirements

as the Company’s activities and reporting expectations evolve.

The statutory statement on data ethics pursuant to section 99 d of the Danish Financial Statements Act is

published on the Company’s website at:

Link to Code of Conduct: https://pharmaequitygroup.com/our-code-of-conduct-guidelines/

Link to Data Ethics Policy: https://pharmaequitygroup.com/data-ethics-policy-2/

Pharma Equity Group A/S Annual Report 2025 20

Corporate Social Responsibility (CSR)

Pharma Equity Group’s purpose is to improve patients’ lives by enabling the development of better treatment

options in disease areas where there is a clear unmet medical need. Patients are the Group’s primary

stakeholders and the central reference point for how opportunities are prioritised, assessed and resources

allocated.

Pharma Equity Group’s approach to corporate social responsibility is integrated into the way the Group conducts

its business and creates value. As a development-focused group, the most direct societal contribution is to

support the advancement of therapies that may improve patient outcomes and quality of life. The Group

therefore focuses its work on the areas that are most relevant to its business model, including responsible

development, quality and safety, ethical conduct and a strong corporate culture.

In 2025, the Board of Directors defined relevant policies and expectations and prioritised embedding these

principles in governance and decision-making processes. This includes the Group’s governance framework, Code

of Conduct, and related policies and procedures. The Group’s CSR approach is therefore based on integrating

responsibility into existing governance and business processes rather than establishing a broad standalone CSR

program at this stage.

Given the nature of the Group’s current activities, the risk of significant adverse impact in relation to

environmental and climate matters, human rights and anti-corruption is currently assessed as limited. On that

basis, the Group has in 2025 focused on maintaining appropriate governance, policies and standards in the areas

considered most relevant to its activities, rather than implementing separate action plans and detailed key

performance indicators for each CSR area.

Pharma Equity Group remains committed to acting responsibly and to constructive engagement with relevant

stakeholders, including patient communities and partners, where such engagement supports the Group’s

purpose and informs its focus on unmet medical needs.

As the Group’s activities expand, Pharma Equity Group expects to further formalise its actions, define relevant

indicators and develop its reporting with increasing depth and specificity.

Quality, safety, and responsible development

Patient safety and scientific integrity guide our activities. We

aim to adhere to high standards of quality in research,

development, and supply-related activities, and we apply

structured risk assessments to ensure responsible decision-

making.

Patient focus and unmet need

We prioritize projects where there is a genuine gap in

existing treatment options and where improved therapies

can make a tangible difference for patients and healthcare

systems.

Strong business partnerships

Our partnerships are essential to progress development

efficiently and credibly. We seek long-term relationships built

on professionalism, transparency, and mutual accountability.

Working environment, employee well-being, and diversity

We strive to maintain an inclusive and respectful workplace.

Diversity is a clear strength in our organization, and we

actively value differences in gender, age, background,

perspectives, and experience. We believe this improves

decision-making and supports a culture of integrity and

performance.

Environmental responsibility

With a lean operating model, our direct footprint is limited.

We nevertheless aim to reduce environmental impact where

relevant, particularly through responsible vendor and partner

selection and by encouraging good practices in the broader

value chain.

Human rights and data protection

We uphold respect for human rights and personal data

protection in our operations and collaborations, with a

commitment to fairness and responsible handling of

information.

Anti-corruption, anti-bribery, and business ethics

We maintain a zero-tolerance approach to corruption and

bribery

Pharma Equity Group A/S Annual Report 2025 21

Summary of Risk and Risk Management

3. Summary of Risk and Risk Management

The Board of Directors and Executive Management are responsible

for PEG’s control and risk management in connection with the

financial reporting process, including compliance with rules and

regulations relevant to financial reporting. PEG’s objective is to ensure

that financial reporting is prepared in accordance with applicable rules,

policies and practices and provides a correct and reliable view of

PEG’s operations and financial position.

PEG’s finance function provides regular internal interim financial

reporting to Executive Management and monthly reporting to the

Board of Directors, supporting management oversight and Board

supervision. The annual audit and reporting process is planned in

detail and includes structured coordination between Group Finance

and the external auditors, based on an audit strategy approved by the

Audit Committee.

PEG has established policies and procedures for key areas of financial

reporting and month-end closing, including processes to analyze

deviations between actual performance, business plans and budgets

as well as updated estimates for the financial year. Monthly closing

procedures ensure that relevant reconciliations are prepared and

reviewed and that budget variances are followed up with appropriate

analysis. PEG assesses cash availability and cash resources regularly,

and any identified cash needs are discussed promptly with the Board

of Directors and relevant stakeholders.

Risk management is an integrated part of PEG’s operations. PEG

applies a formal process combining bottom-up identification of key

risks with Board-level oversight and follow-up. Risks are described

together with mitigating actions intended to reduce either the

likelihood of occurrence or potential impact, and residual risk may be

further mitigated through insurance where relevant and feasible. The

Audit Committee evaluates risks connected with the financial

reporting process at least annually, including the presence of internal

controls, policies and guidelines, the organizational structure and the

risk of fraud and mitigating actions.

PEG has decided not to establish an internal audit function based on

an assessment that the Company’s size and complexity do not

necessitate such a function at this stage.

PEG has not established a whistleblower scheme due to the

Company’s current size. As part of the governance documentation

package adopted in 2025, PEG is evaluating the establishment of a

whistleblower scheme that would allow employees and stakeholders

to report serious wrongdoing or suspicions thereof confidentially and

with a secure case-handling process. The Board will continue to assess

the need for such a scheme as PEG develops.

PEG’s value chain consists primarily of IP rights and research and

development. By the nature of PEG’s business, the Group is exposed

to a variety of risks along the value chain. PEG manages these risks

through systematic risk identification, risk monitoring and mitigation

actions with clear ownership. The Audit Committee monitors key risks

on a quarterly basis and reports to the Board of Directors.

The table below summarizes selected key risks that are important to

PEG’s business and the operations of its subsidiary company Reponex,

including examples of mitigating actions.

Pharma Equity Group A/S Annual Report 2025 22

Summary of Risk and Risk Management

Risk Area Risks Mitigating Actions

Risks relating to the business and industries in which

PEG and its subsidiary company Reponex operate

Clinical development risk. Results from early clinical

trials may not be replicated in larger trials. Trials may

not demonstrate an acceptable risk-benefit profile

or sufficient clinical benefit to support partnering,

commercialisation or regulatory approvals. Trial

outcomes may be inconclusive and require

additional studies.

Reponex designs clinical programmes to maximise robustness and reproducibility, based on literature review and input from key opinion

leaders. Reponex engages early and continuously with regulatory authorities to align on endpoints, methodology and expectations, and it

adapts programmes as new evidence emerges.

Risks relating to the business and industries in which

PEG and its subsidiary company Reponex operate

Development cost and timing risk. Delays or

unsatisfactory outcomes in clinical trials may

increase development costs and cash burn

compared to estimates.

PEG and Reponex apply active financial planning and scenario analysis. Budgets include contingencies, and supplier/CRO payment

structures are, where feasible, linked to activity levels. Protocol development and outcome measures are designed to maximise the

likelihood of generating decision-grade data.

Risks relating to the business and industries in which

PEG and its subsidiary company Reponex operate

Repositioning risk. Reponex may not succeed with

any product candidate and therefore may not

create a marketable product.

Reponex focuses on repurposing and reformulating established active pharmaceutical ingredients with known clinical use, which can

reduce early development uncertainty. Candidates are advanced only if the safety and efficacy package supports further development.

Reponex’ partnering and out-licensing approach aims to identify partners ahead of late-stage development where appropriate.

Risks relating to the business and industries in which

PEG and its subsidiary company Reponex operate

Commercialisation and market risk. If projections

of addressable markets and commercial potential

for product candidates are not accurate, the

commercial value of candidates may be reduced..

Reponex maintains ongoing dialogue with relevant stakeholders and uses external market data where available. Market assumptions are

revisited as clinical evidence, competitor activity and pricing/reimbursement dynamics evolve.

Pharma Equity Group A/S Annual Report 2025 23

Summary of Risk and Risk Management

Risk Area Risks Mitigating Actions

Risks relating to the business and industries in which

PEG and its subsidiary company Reponex operate

Portinho receivable risk. If the Portinho S.A.

receivable is not paid in full or on time, PEG may

need to use a significant part of available cash and

credit facilities for day-to-day operations and

settlement of creditors if alternative financing is

not available.

PEG continues to pursue repayment through legal proceedings while also running parallel negotiations to resolve the matter outside

arbitration. Multiple hearings were held in 2025. Following a decision by the Danish Business Authority (Erhvervsstyrelsen), PEG wrote

down the receivable in 2025 using the ECL method. The accounting write-down does not change the underlying risk as to whether the

receivable will be collected.

Risks relating to the financial position of PEG and

Reponex

Financing and capital needs. If clinical timelines shift

or product development is delayed, costs may

increase and expected cash flows may be deferred,

which could increase PEG’s financing needs.

Reponex’ development plan experienced minor timing shifts in 2025 that are assessed to be within what can be expected in

pharmaceutical development; the development risk is therefore considered to remain at the level inherent to drug development. PEG

updates forecasts and cash runway assessments continuously and aligns financing planning with clinical milestones and corporate

priorities under Board oversight.

Risks relating to the financial position of PEG and

Reponex

Liquidity and working capital. If the Portinho

receivable is not paid in full or on time, PEG’s

liquidity position may be adversely affected.

PEG has continued to secure working capital support through successive loans and has reduced administrative costs in 2025 compared to

2024. Liquidity is monitored closely, and the Board evaluates mitigating actions on an ongoing basis, including prioritisation of activities

and financing alternatives.

Pharma Equity Group A/S Annual Report 2025 24

Shareholder information

Master data

Stock Exchange: Nasdaq Copenhagen main stock exchange

ISIN Code:

DK0061155009

Symbol: PEG

LEI Code: 2138008SUI4D917FKN20

CVR no 26791413

Share capital DKK 122,755,666

Denomination DKK 0.1

No. of shares/votes 1,227,556,659

Negotiable Yes

Voting restrictions No

On 31 December 2025, PEG has a nominal share capital of DKK 122,755.666 consisting

of 1,227,556,659 shares of each DKK 0.10. On 31 December 2025, the share price was

DKK 0.0934 corresponding to a market value of DKK 115 million.

In connection with the transaction between PEG and Reponex, BDO state-authorized

audit firm prepared a non-cash contribution report of Reponex Pharmaceuticals where

BDO stated the value of Reponex to be at least DKK 1,500 million. Reference is made to

our webpage under investors – prospectus and documentation.

PEG is followed by HC Andersen Capital DK. See the full analysis and valuations on the

PEG website

https://pharmaequitygroup.com/stock-information/

Ordinary shares Share capital

1000 shares TDKK

As per 01-01-2025 1,227,557 122,756

Share capital reduction transferred to special reserve 0 0

Capital increase, private issue 0 0

Total numbers of shares and share capital as per 31-12-2025

1,227,557 122,756

Development in number of share and share capital in 2025

Articles of Association have been updated accordingly to the above.

Shareholding structure

PEG´s shareholders are preliminary residents of Denmark. On 31 December 2025 the following shareholders held more

than 5% of the share capital and votes:

• Finansmanagement ApS, Hørsholm (16.21% of votes and shares)

• DMZ Holding ApS, Hellerup (13.52% of votes and shares)

• Niels Erik Jespersen Holding ApS, Haarby (5.10% of votes and shares)

The rest of the shares are spread out on approximately 2,000 shareholders end of 2025.

Pharma Equity Group shares and capitalization

Board of Directors size and election

According to article 11.1 of the Articles of Association, the Board of Directors consists of three to seven members elected by

the General Meeting. Board members are elected for terms of one year at a time, may be re-elected and are elected individually

by the shareholders.

Pharma Equity Group A/S Annual Report 2025 25

Shareholder information

According to Articles-of-Association article 11.1 the Board of Directors consists of 3 – 7

members that are elected for terms of one year.

Board of Directors size and and election

Management shareholding and

market value 31 December 2025

Name

*Number of

31.12.2025

Percentage

of share

Capital

Value 31

December

2025 TDKK

*Number of

31.12.2024

Christian Henrik Tange, CEO, PEG 0 0.00% 0 0

Christian Vinding Thomsen, Chairman of the Board, PEG 3,373,417 0.27% 315 3,373,417

Omar S. Qandeel, Board Member, PEG 0 0.00% 0 0

Peter Vilmann, Board Member, PEG 0 0.00% 0 0

Lars Rosenkrantz Gundorph, Board Member, PEG 21,351,475 1.74% 1,994 21,351,475

Troels Peter Troelsen, Board Member, PEG 26,064,970 2.12% 2,434 26,064,970

Charlotte Pahl, Board Member, PEG 4,694,210 0.38% 438 3,694,210

Total Management shareholdings 55,484,072 4.52% 5,182 54,484,072

* Including shares held in entities controlled by them

Authorizations to the Board of Directors according to

Articles of Association for PEG:

Until 27 April 2028 (AOA 4.1 A), the Board of Directors is

authorized to increase the Company's share capital at one

or more times by up to a nominal amount of DKK

50,000,000. The increase may be implemented by way of

full cash contribution, by conversion of debt or by

contribution of other assets than cash, including by way of

contribution of an existing business. The capital must be

increased with pre-emption rights for existing

shareholders. The current authorization amount is DKK

50,000,000.

Until 31 August 2024 (AOA 4.1 B), the Board of Directors

is authorized to increase the Company's share capital at

one or more times by up to 50,000,000 shares of a nominal

value of DKK 1 each. The increase may be implemented by

way of full or partial cash contribution, by conversion of

debt and/or by contribution of other assets than cash,

including by way of contribution of an existing business.

The capital must be increased without pre-emption rights

for existing shareholders as it is a directed issue. In the case

of contribution in cash or conversion of debt, the capital

increase must as a minimum be made at the market price.

By resolution of 4 October 2024, the Board of Directors

has exercised the authorization to increase the Company's

share capital by nominally DKK 20,459,277.60. Thereafter,

nominally DKK 29,540,722.40 remains of the

authorization.

Until 31 August 2025 (AOA 4.2), the Board of Directors is

authorized to allow the Company to issue warrants at one

or more times. The warrants must not grant the right to

subscribe for shares in the Company of a nominal value

exceeding DKK 5,000,000. The warrants must be issued

without pre-emption rights for existing shareholders and

on an arm's length basis; however, the Board of Directors is

entitled to issue shares in the Company at a favourable

price with respect to shares of a nominal value of DKK

500,000. The current authorization amount is DKK

50,000,000.

Until 31 August 2026 (AOA 4.3 A), the Board of Directors

is authorised to allow the Company to raise loans at one or

more times against bonds or other debt instruments

granting the lender the right to convert its debt into shares

in the Company (convertible loans). The convertible loans

must not grant the right to subscribe for shares in the

Company of a nominal value exceeding DKK

52,390,549.70. The convertible loans must be raised

without pre-emption rights for the Company's existing

shareholders and on an arm's length basis; however, the

Board of Directors is entitled to issue shares in the

Company at a favourable price with respect to shares of a

nominal value of DKK 500,000. The current authorization

amount is DKK 49,605,604.40; among this, a nominal value

of DKK 415,000 may be issued at a favorable price.

The Board of Directors is authorised to lay down the

specific terms and conditions for the capital increases

under the above authorisations and to make any such

amendments to the Company's articles of association as

may be required as a result of the Board of Directors'

exercise of the said authorisations. Any exercise of the

authorisations set out in articles 4.1 to 4.3 requires

unanimity among the members of the Board of Directors.

Please see the Company´s Articles of Association for the

whole wording and utilized authorizations.

Management’s total

shareholdings

Value of

Management’s

total shareholdings

4.52%

5,18

million DKKAs per 31 December 2025

Pharma Equity Group A/S Annual Report 2025 26

Management

Pharma Equity Group

Board of Directors and CEO on 25 March 2025

Name Christian Vinding Thomsen Omar S. Quandeel Lars Rosenkrantz Gundorph Peter Vilmann

Position Chairman Board Member Board member Board member

Year of birth 1975 1961 1960 1952

Nationality Danish Saudi Arabia Danish Danish

Gender Male Male Male Male

First election 2023 2023 2023 2023

Committee Nomination & Remuneration

committee

Audit committee Chair and

Investment committee Chair

Research and Development

committee, Chair

Independent No Yes Yes Yes

Special competencies Legal compliance within Regulatory

Life Science, Healthcare, M&A and

Corporate Law, as well as experience

with publicly traded companies.

Extensive international network, both

clinically and in relation to potential

strong strategic alliances and new

investors, primarily the Middle East

and Asia.

Risk management, Marketing Special knowledge about the

Company’s drug candidates.

Current positions Chairman of the Board of KT

Stålindustri A/S, Reponex

Pharmaceuticals A/S, Winmed A/S,

Wiab øWater Innovation AB, Untold

Productions ApS and Black Sun ApS.

Deputy Chairman at SoftOx Solutions

AS and *The Complaints Body of the

Danish Medical Devices Industry Ass.

Board member of Repoceuticals A/S,

Loeven Advokatpartner-selskab and

AKI Therapeutics A/S

Chairman of the board of Nippo

Trading Company ltd, United Arab

Emirates, KONUX, Japan, Nippon

Consultant Company L.L.C, United

Arab Emirates Board member of

Nihon AD Capital Investment, Japan,

CEO of Summit Financial Services

Ltd., Saudi Arabia

Chairman of the Board of North

Pensionsagentur ApS. CEO of

Gundorph Holding ApS, City-Hoteller

Tyskland ApS

Board member of GEAbetes ApS and

CEO of Speciallæge Vilmann ApS

PEG shares 31.12.2025 3,373,417 0 21,351,475 0

Pharma Equity Group A/S Annual Report 2025 27

Management

Pharma Equity Group – Overview of meetings

Name Christian Vinding Thomsen Omar S. Quandeel Lars Rosenkrantz Gundorph Peter Vilmann

Board 15/15 11/15 14/15 15/15

Audit Committee N/A N/A 4/4 N/A

Nomination & Remuneration

Committee

1/1 N/A 1/1 N/A

Investment Committee 0/0 0/0

Research & Development

Committee

N/A 0/2 N/A 2/2

Pharma Equity Group A/S Annual Report 2025 28

Management

Pharma Equity Group

Board of Directors and CEO on 25 March 2025

Name

Charlotte Pahl Troels Troelsen

Christian Tange Thomas Kaas Selsø

Position Board Member Board Member CEO (01-04-2025 - ) CEO (01-01-2025 – 31-03-2025)

Year of birth 1963 1945 1966 1973

Nationality Danish Danish Danish Danish

Gender Female Male Male Male

First election 2025 2025 2023

Committee

Business, Research and Development

Committee

Audit Committee - -

Independent Yes Yes - -

Special competencies Extensive global experiences within

the pharmaceutical industry and has a

wide range of international contacts

and networks throughout the

healthcare business, healthcare

professionals and patients’

organisations.

Experienced board executive with

over 30 years in corporate strategy,

financial governance, and pricing

advisory, advising on integrating

mega trends and pricing models in

strategic planning.

Life science investments, Financing,,

M&A, Management as well as

experience with publicly traded

companies.

Management, Financing, accounting,

M&A as well as experience with

publicly traded companies.

Current positions

Director, Medical Affairs Swedish

Orphan Biovitrum, Board Member

Reponex A/S, Board Member

RepoCeutical A/S, Board Member AKI

Aps, CEO, Charlotte Pahl Consulting

Aps

Board member Abacus Medicine

Group A/S. Board member Ropca

A/S, Chairman of the Board Christian

Panbo A/S. Board member

Ropenhagen A/S. CEO Force

Strategy Intelligence. CEO TT 1919

ApS, CEO IGLO 1218 ApS, CEO

Nørregade 20 ApS

CEO of Pharma Equity Group A/S,

Reponex Pharmaceuticals A/S,

Capiital ApS and The Go Giver ApS

CEO of Ideal Finans Holding ApS and

Ideal Finans ApS

PEG shares 31.12.2025 3,694,210 26,064,970 0 2,257,212

Pharma Equity Group A/S Annual Report 2025 29

Management

Pharma Equity Group – Overview of meetings

Name

Charlotte Prahl

Troels Troelsen Christian Tange Thomas Kaas Selsø

Board 10/10 9/10 10/10 5/5

Audit Committee N/A 3/4 2/2 2/2

Nomination & Remuneration

Committee

N/A N/A N/A N/A

Investment Committee N/A N/A 0/0 N/A

Research & Development

Committee

N/A N/A N/A N/A

Pharma Equity Group A/S Annual Report 2025 30

Statement of the Board of Directors and Executive Management

The Board of Directors and Executive Management have today considered and approved the

Annual Report of Pharma Equity Group A/S for the financial year 1 January 2024 – 31

December 2025 for the Group and the Parent company.

The consolidated financial statements and parent company financial statements have been

prepared in accordance with IFRS Accounting Standards ("IFRS") as adopted by the EU and

additional requirements of the Danish Financial Statements Act.

In our opinion, the consolidated financial statements and parent company financial statements

give a true and fair view of the Group’s and the parent company’s financial position as of 31

December 2025, and of the results of the Group’s and the parent company’s operations and

cash flows for the financial year 1 January 2024 – 31 December 2025.

In our opinion, the Management review includes a fair review of the development of the

Group’s and the parent company’s operations, financial and non-financial matters, the results

for the year, and the Group’s and the parent company’s financial position, as well as a review

of the principal risks and uncertainties to which the Group and the parent company are

exposed.

In our opinion, the annual report with the file name PharmaEquityGroup-2025-12-31-en.zip

is prepared in accordance with the ESEF Regulation.

We recommend that the Annual Report be approved at the Annual General Meeting.

Hørsholm, 25 March 2026

Executive Management

Board of Directors

Christian Henrik Tange

Chief Executive Officer

Christian Vinding Thomsen

Chairman

Omar S. Qandeel

Board member

Lars Rosenkrantz Gundorph

Board member

Peter Vilmann

Board member

Charlotte Pahl

Board member

Troels Peter Troelsen

Board member

Pharma Equity Group A/S Annual Report 2025 31

Independent auditor’s report

To the shareholders

of Pharma Equity Group A/S

REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PARENT COMPANY FINANCIAL STATEMENTS

Opinion

We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of Pharma Equity

Group A/S for the financial year 1 January 2025 - 31 December 2025, which com-prise income statement, total income

statement, balance sheet, statement of changes in equity, cash flow statement, notes, and material accounting policy

information for both the Group and the Parent Company. The Consolidated Financial Statements and the Parent Company

Financial Statements are prepared in accordance with the IFRS Accounting Standards as adopted by the EU and additional

dis-closure requirements in the Danish Financial Statements Act.

In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair

view of the financial position of the Group and the Parent Company at 31 Decem-ber 2025, and of the results of the

Group’s and the Parent Company’s operations and cash flows for the financial year 1 January 2025 - 31 December 2025 in

accordance with the IFRS Accounting Stand-ards as adopted by the EU and additional disclosure requirements in the

Danish Financial Statements Act.

Our opinion is consistent with our extract from audit book to the audit committee and the board of directors.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) and the addi-tional requirements

applicable in Denmark. Our responsibilities under those standards and require-ments are further described in the

“Auditor’s Responsibilities for the Audit of the Consolidated Finan-cial Statements and the Parent Company Financial

Statements” section of our report. We are inde-pendent of the Group in accordance with the International Ethics Standards

Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code), as applicable of public

inter-est entities, and additional ethical requirements applicable in Denmark to audits of financial state-ments of public

interest entities. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the

IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

To the best of our belief, we have not performed any prohibited non-audit services, as stated in arti-cle 5, subarticle 1, in

regulation (EU) no. 537/2014.

We were first appointed auditor of the Company A/S on 10 February 2023 for the financial year 2022. We were

reappointed annually by a resolution of a general meeting for a total continuous period of 4 years until and including the

financial year 2025.

Pharma Equity Group A/S Annual Report 2025 32

Independent auditor’s report

To the shareholders

of Pharma Equity Group A/S

Key Audit Matters

Key Audit Matters are those matters that, in

our professional judgment, were of most

significance in our audit of the Financial

Statements for the financial year 2025. These

matters were addressed in the context of our

audit of the Financial Statements as a whole,

and in forming our auditor’s opinion thereon,

and we do not provide a separate opinion on

these matters.

Key audit matters How our audit addressed the key audit matter

Capital resources

In 2025, the Company has not received payment from Portinho S.A as further explained in

note 2.1 to the consolidated financial statements.

We have identified the sufficiency of the Group’s capital resources as a key audit mat-ter.

The Group’s outlook for 2026 implies a revenue of DKK 3.0 -8.6 million, which is not

sufficient to become cash positive in 2026 and hence it is essential for the Group and the

parent company to prepare the consolidated and parent company financial statements on

a going-concern basis that sufficient funding is in place for a period of at least until 31

Decem-ber 2026.

Reference is made to notes 2.1, 16, 20 and 26 to the consolidated financial statements.

Our procedures in relation to the assessment of sufficiency of the capital resources of the

company included:

• Reviewing and challenging the key assumptions in management’s forecasted cash flows

for 2026;

• Assessing the consistency of the cash flow forecasts against the budget approved by the

board of directors of the Company;

• Agreeing the Group’s debt facilities to sup-porting documents with focus on the

agreements entered that maturity date can be deferred if no payment will be received

from Portinho S.A in 2026;

• Obtained documentation for convertible loans obtained in 2026;

• Challenging management’s plans for mitigating any identified exposures, including

whether such mitigating actions appear realistic and achievable;

• Assessing the appropriateness of the disclosures included in notes 2.1, 16, 20 and 26 to

the consolidated financial statements.

Portinho S.A receivable

In past years, it was agreed that the Portinho S.A receivable matured on 1 July 2023. The

Company did not receive any payment by the due date and still no payments have been

received until the date of this auditor’s report.

The principal of the receivable and accrued interest in total amount to DKK 92.7 million. In

the past years, the receivable has been meas-ured at a discounted value as an approxima-

tion of fair value, in the stand-alone parent company financial statements.

As stated in notes 2.1 and 12 to the consoli-dated financial statements and note 2 in the

parent company financial statements, Man-agement is confident that the receivable in

time will be recovered. However, it may take longer time than originally agreed and antici-

pated before the receivable will be recovered. Hence, Management has reassessed the

fair value of the receivable to reflect the realistic timeline before the receivable is

recovered. On this basis, the fair value has been deter-mined to DKK 33.7 million resulting

in a negative fair value adjustment for the year of DKK 15.2 million in the consolidated

financial statements and in the parent company financial statements.

Due to the uncertainty as to whether Manage-ment’s assessment of the recoverability and

the timing of when this realistically will take place, and the complexity of determining a fair

value under these circumstances, we con-sider the measurement of the Portinho S.A

receivable to be a key audit matter.

Our procedures in relation to the assessment of the fair value of the Portinho S.A receivable

included:

• Reviewing Management’s documentation of its dialogue with representatives of

Portinho S.A including confirmation of outstanding amount and accrued interest as of 31

December 2025;

• Reviewing and challenging Management’s documentation and support for its

assessment that the Portinho S.A receivable in time will be recovered;

• Testing and evaluating the appropriateness of the model used to determine fair value of

the receivable including challenging the reasonableness of the key assumptions such as

timing of when the receivable realistically is expected to be recovered and testing and

challenging the discount rate used to calculate the fair value;

• Assessing the appropriateness of the disclosures included in notes 2.1 and 12 to the

consolidated financial statements and note 2 in the parent company financial

statements

Pharma Equity Group A/S Annual Report 2025 33

Independent auditor’s report

To the shareholders

of Pharma Equity Group A/S

Key audit matters How our audit addressed the key audit matter

Parent company financial statements: Impairment assessment of investment in

Reponex Pharmaceuticals A/S

On 24 March 2023, Pharma Equity Group A/S acquired the entire share capital in

Reponex Pharmaceuticals A/S by issuing 977,347,625 shares of DKK 1 each in a rights

issue to the shareholders of Reponex Pharmaceuticals A/S. In the parent company financial

state-ments, the investment is measured at cost. If recoverable amount is lower than cost,

the investment should be written down to the low-er recoverable amount.

For accounting purposes, the purchase price for the investment in Reponex

Pharmaceuticals A/S is based on the market price for the Pharma Equity Group A/S shares

issued to the shareholders of Reponex Pharmaceuticals A/S, which had its first day of

trading on 28 March 2023 whereby the cost was determined to equal DKK 689m.

At 31 December 2025, the share price for Pharma Equity Group A/S is lower than the

share price at 28 March 2023, which implies that the value of the investment in Reponex

Pharmaceuticals A/S could be impaired.

As described in note 2 and 9 to the parent company financial statements, Management has

performed an impairment test, which shows that the recoverable amount is higher than

the carrying value based on the cost determined at 28 March 2023.

We identified the potential impairment of the investment in Reponex Pharmaceuticals A/S

in the parent company financial statements as a key audit matter due to the significance of

the investment in the parent company financial statements and the complexity and

subjective nature of Management’s determination of the recoverable amount.

Our procedures in relation to the assessment of the recoverable amount of the investment

in Reponex Pharmaceuticals A/S included:

• Reviewing Management’s documentation for its assessment of its investment in

Reponex Pharmaceuticals, including progress of the development of the underlying

product candidates;

• Evaluate the appropriateness of the model used by management to calculate the

recover-able amount for Reponex Pharmaceutical A/S;

• Assess and challenge the reasonableness of the key assumptions such as likelihood that

partnership agreements will be entered, royalty rates, market size and market shares,

timeline and discount rates;

• Reviewing and comparing external valuations of Pharma Equity Group A/S – and

thereby indirectly valuations of Reponex Pharmaceuticals A/S – with the valuations

prepared by Manage-ment;

• Assessing the appropriateness of the disclosures included in note 2 and 9 of the parent

company financial statements

Statement on Management Commentary

Management is responsible for Management Commentary.

Our opinion on the Consolidated Financial Statements and the Parent Company

Financial Statements does not cover Management Commentary, and we do not

express any form of assurance conclusion thereon.

In connection with our audit of the Consolidated Financial Statements and the

Parent Company Financial Statements, our responsibility is to read Management

Commentary and, in doing so, consider whether Management Commentary is

materially inconsistent with the Consolidated Financial State-ments or the

Parent Company Financial Statements or our knowledge obtained during the

audit, or otherwise appears to be materially misstated.

Moreover, it is our responsibility to consider whether Management Commentary

provides the infor-mation required under the Danish Financial Statements Act.

Based on the work we have performed, we conclude that Management

Commentary is in accordance with the Consolidated Financial Statements and

the Parent Company Financial Statements and has been prepared in accordance

with the requirements of the Danish Financial Statements Act. We did not

identify any material misstatement of Management Commentary.

Management’s Responsibilities for the Consolidated Financial Statements and the

Parent Company Financial Statements

Management is responsible for the preparation of Consolidated Financial

Statements and Parent Com-pany Financial Statements that give a true and fair

view in accordance with the IFRS Accounting Standards as adopted by the EU

and additional requirements in the Danish Financial Statements Act, and for such

internal control as Management determines is necessary to enable the

preparation of Consolidated Financial Statements and Parent Company Financial

Statements that are free from mate-rial misstatement, whether due to fraud or

error.

In preparing the Consolidated Financial Statements and the Parent Company

Financial Statements, Management is responsible for assessing the Group’s and

the Parent Company’s ability to continue as a going concern, disclosing, as

applicable, matters related to going concern and using the going con-cern basis of

accounting in preparing the Consolidated Financial Statements and the Parent

Company Financial Statements unless Management either intends to liquidate

the Group or the Company or to cease operations, or has no realistic alternative

but to do so.

Pharma Equity Group A/S Annual Report 2025 34

Independent auditor’s report

To the shareholders

of Pharma Equity Group A/S

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements and the Parent Company Financial Statements

Our objectives are to obtain reasonable assurance about whether the Consolidated Financial State-ments and the Parent Company Financial Statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a

high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will

always detect a material mis-statement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic deci-sions of users taken on the basis of these Consolidated Financial Statements and

Parent Company Fi-nancial Statements.

As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain

professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Consolidated Financial State-ments and the Parent Company Financial Statements, whether

due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is suf-ficient and appropriate to

provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud

may involve collusion, forgery, intentional omissions, misrepresentations, or the override of inter-nal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit pro-cedures that are appropriate in the circumstances, but not

for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of account-ing estimates and related disclosures made by Management.

• Conclude on the appropriateness of Management’s use of the going concern basis of account-ing in preparing the Consolidated Financial Statements and

the Parent Company Financial Statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Group’s and the Parent Company’s ability to continue as a going concern. If we conclude that a material

uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated Financial Statements and the

Parent Company Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the au-dit evidence

obtained up to the date of our auditor’s report. However, future events or condi-tions may cause the Group and the Company to cease to continue as a

going concern.

• Evaluate the overall presentation, structure and contents of the Consolidated Financial State-ments and the Parent Company Financial Statements,

including the disclosures, and whether the Consolidated Financial Statements and the Parent Company Financial Statements repre-sent the underlying

transactions and events in a manner that gives a true and fair view.

• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within

the group as a basis for form-ing an opinion on the group Financial Statements [and the Parent Company Financial State-ments]. We are responsible for

the direction, supervision and review of the audit work per-formed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings,

including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to

communicate them all relationships and other matters that may reasonably thought to bear on our independence, and where applicable, actions taken to

eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the

Consolidated Financial Statements and the Parent Company Financial Statements of the current period and are therefore the key audit matters. We describe

these matters in our Independent Auditor’s Report unless law or regulation precludes public disclosure of the matter or when, in extremely rare

circumstances, we determine that a matter should not be communicated in our Independent Auditor’s Report because the adverse consequences of doing so

would reasonably be expected to outweigh the public interest benefits of such communication.

Pharma Equity Group A/S Annual Report 2025 35

Independent auditor’s report

To the shareholders

of Pharma Equity Group A/S

REPORT ON COMPLIANCE WITH THE ESEF REGULATION

As part of our audit of the Consolidated Financial Statements and the Parent

Company Financial Statements of Pharma Equity Group A/S we performed

procedures to express an opinion on whether the annual report of Pharma Equity

Group A/S for the financial year 1 January 2025 - 31 December 2025 with the

file name PharmaEquityGroup-2025-12-31-en is prepared, in all material

respects, in compliance with the Commission Delegated Regulation (EU)

2019/815 on the European Single Elec-tronic Format (ESEF Regulation) which

includes requirements related to the preparation of the annual report in XHTML

format and iXBRL tagging of the Consolidated Financial Statements.

Management is responsible for preparing an annual report that complies with the

ESEF Regulation. This responsibility includes:

• The preparation of the annual report in XHTML format;

• The selection and application of appropriate iXBRL tags, including extensions

to the ESEF tax-onomy and the anchoring thereof to elements in the

taxonomy, for financial information re-quired to be tagged using judgement

where necessary;

• Ensuring consistency between iXBRL tagged data and the Consolidated

Financial Statements presented in human readable format; and

• For such internal control as Management determines necessary to enable

the preparation of an annual report that is compliant with the ESEF

Regulation.

Our responsibility is to obtain reasonable assurance on whether the annual

report is prepared, in all material respects, in compliance with the ESEF

Regulation based on the evidence we have obtained, and to issue a report that

includes our opinion. The nature, timing and extent of procedures selected

depend on the auditor’s judgement, including the assessment of the risks of

material departures from the requirements set out in the ESEF Regulation,

whether due to fraud or error. The procedures include:

• Testing whether the annual report is prepared in XHTML format;

• Obtaining an understanding of the company’s iXBRL tagging process and of

internal control over the tagging process;

• Evaluating the completeness of the iXBRL tagging of the Consolidated

Financial Statements including notes;

• Evaluating the appropriateness of the company’s use of iXBRL elements

selected from the ESEF taxonomy and the creation of extension elements

where no suitable element in the ESEF taxonomy has been identified;

• Evaluating the use of anchoring of extension elements to elements in the

ESEF taxonomy; and

• Reconciling the iXBRL tagged data with the audited Consolidated Financial

Statements.

In our opinion, the annual report of Pharma Equity Group A/S for the financial

year 1 January 2025 - 31 December 2025 with the file name

PharmaEquityGroup-2025-12-31-en is prepared, in all material respects, in

compliance with the ESEF Regulation.

København, 25 March 2026

BDO Statsautoriseret Revisionspartnerselskab

CVR no. 45719375

Mikkel Mauritzen

State Authorised Public Accountant

MNE no. mne46621

Consolidated Financial Statements

Consolidated statement of comprehensive income

Pharma Equity Group A/S Annual Report 2025 36

		(Corrected)
	PEG Group	PEG Group
	2025	2024
	TDKK	TDKK
Revenue	0	0
Production costs	0	0
Gross profit	0	0
Research and development costs	- 5.123	- 9.002
Administrative costs	- 12.050	- 12.28 5
Profit/loss before interest and tax (EBIT)	- 17.173	- 21.287
Allowance Portinho receivable	- 8.115	- 16.188
Financial income	1.529	14
Financial expenses	- 2.655	- 4.964
Profit/loss before tax	- 26.414	- 42.425
Tax on profit/loss for the year	1.033	1.815
Net profit/loss for the year	- 25.38 2	- 40.610
Other comprehensive income/loss	0	0
Total comprehensive income/loss	- 25.382	- 40.610
Earnings per share (EPS basic), DKK	- 0.02	- 0.02
Diluted earnings per share (EPS -D), DKK	- 0.02	- 0.02

Note

Consolidated Financial Statements

Consolidated statement of financial position

Pharma Equity Group A/S Annual Report 2025 37

ASSETS

PEG Group

(Corrected)

PEG Group

31-12-

2025

31-12-

2024

Note

TDKK

Non

-current assets

Tangible assets

Right

-of-use assets

637

234

Total non

-current assets

637

271

Current assets

Receivable

Portinho S.A.

33.6 97

41.812

Other receivables

639

472

Prepaid expenses

579

813

Current tax receivable

2.848

1.815

Cash and cash equivalents

498

4.234

Total current assets

38.261

49.146

Total assets

38.898

49.417

EQUITY AND LIABILITIES

PEG Group

(Corrected)

PEG Group

31-12-

2025

31-12-

2024

Note

TDKK

Share capital

122.756

Convertible instruments

18.167

Other reserves

115.451

90.069

Total equity

25.472

32.687

16+17

Subordinated convertible debt

4.177

8.100

Lease liabilities

421

Total long

-term liabilities

4.598

8.100

Trade payables

3.853

4.085

Bank debt

1.192

Financial loans

3.241

1.519

Lease liabilities

216

234

Other liabilities

1.517

1.599

Total current liabilities

8.827

8.631

Total liabilities

13.426

16.730

Total equity and liabilities

38.898

49.417

Consolidated Financial Statements

Consolidated statement of changes in equity

Pharma Equity Group A/S Annual Report 2025 38

* including correction of 2024 report

Statement of changes in equity

01 -01-2025 - 31-12-2025
Equity PEG Group as at 01 -01-2025	122.756	0	0	0	- 90.069	32.6 87
Net profit/loss	0		0	0	- 25.38 2	- 25.38 2
	0	0	0	0	- 25.38 2	- 25.38 2
Convertible instruments	0	20.037	0	0	0	20.037
Costs related to convertible instruments	0	- 1.870	0	0	0	- 1.870
Dividends	0	0	0	0	0	0
Transactions with owners	0	18.167	0	0	0	18.167
Equity PEG Group as at 31 -12-2025	122.756	18.167	0	0	- 115.450	25.472

Statement of changes in equity	Share	Convertible	Share	Reserve	Other	Total
01-01-2024 – 31-12-2024
	capital	instruments	premium account	for capital reduction	reserves	equity
Equity as at 31 -12-2023	1.022.964	0	0	0	- 997.631	25.333
Correction of errors	0	0	0	0	0	0
Equity Reponex as at 01 -01-2024	1.022.9 64	0	0	0	- 997.6 31	25.33 3
*Net profit/loss	0	0	0	0	- 40.610	- 40.610
	0	0	0	0	- 40.610	- 40.610
Capital increase from private issue	20.459	0	30.68 9	0	0	51.148
Costs related to capital increase	0	0	- 3.184	0	0	- 3.184
Share capital reduction transferred to special reserve	- 920.6 67	0	0	920.6 67	0	0
Transfer of share premium to other reserves	0	0	- 27.504	0	27.504	0
Transfer of special reserve to other reserves		0	0	- 920.6 67	920.6 67	0
Dividends	0	0	0	0	0	0
Transactions with owners	- 900.208	0	0	0	948.172	47 .964
Equity PEG Group as at 31 -12-2024	122.756	0	0	0	- 90.069	32.687

Consolidated Financial Statements

Consolidated cash flow statement

Pharma Equity Group A/S Annual Report 2025 39

	PEG Group	(Corrected)
		PEG Group
	2025	2024
	TDKK	TDKK
		Corrected
Profit/loss before tax	- 26.414	- 42.425
Adjustment of non -cash transactions:
Depreciation, amortisation and impairment losses	311	235
Allowance relating to Portinho S.A	8.115	16.188
Financial income	- 1.529	(14)
Financial expenses	2.655	4.964
Change in working capital:
Receivables	- 167	1.872
Trade payables	- 232	- 1.092
Prepaid expenses	234	- 390
Other liabilities	- 82	- 382
Net cash used in operating activities before net financials	- 17.109	- 21.043
Financial income received	10	14
Financial expenses paid	- 561	- 4.065
Corporate tax refund	0	2.233
Net cash used in operating activities	- 17.661	- 22.861
Purchase of tangible assets	11	0
Net cash used in investing activities	11	0
Lease instalments	- 309	- 245
Repayment bank loans	- 1.192	- 2.893
Financial loans, obtained	2.967	13.099
Financial loans, repaid	0	- 29.426
Subordinated convertible loan, obtained	0	11.015
Subordinated convertible loan, repaid	- 4.608	- 11.624
Convertible instruments	17.057	0
Share issues costs paid	0	- 8.210
Proceeds from capital increase, Private issue	0	51.148
Net cash received from financing activities	13.914	22.864
Total cash flows for the year	- 3.736	3
Cash and cash equivalents PEG upon transaction date	0	0
Cash and cash equivalents beginning of year	4.234	4.231
Cash equivalents end of year	498	4.234
Cash and cash equivalents, end of year, comprise:
Cash and cash equivalents	498	4.234
Total	498	4.234

Consolidated Financial Statements

Notes to the consolidated financial statements

Pharma Equity Group A/S Annual Report 2025 40

Accounting

policies

Significant accounting estimates and judgements

Nature of operations

Revenue and segment information

Staff

costs

Financial

income

Financial

expenses

Tax

Earnings

per share

10.

Tangible assets, right

-of-use assets and leasing liabilities

11.

Financial assets and

liabilities

12.

Receivable Portinho S.A.

13.

Prepayments

and other receivables

14.

Cash and cash

equivalents

15.

Equity and development in numbers of shares

16.

Subordinated convertible debt and Convertible instruments

17.

Borrowings

18.

Other

liabilities

19.

party transactions

20.

Capital

resources

21.

Assets pledged and provided as security

22.

Contingent

liabilities

23.

Financial risks and financial instruments

24.

Fee

to group auditor

25.

Adoption of the annual report for publication

26.

Events

occuring after the balance sheet date

1.2 Foreign currency translation

Functional and presentation currency

The financial statements are presented in DKK, which is also the functional

currency of the Group.

Foreign currency transactions and balances

Foreign currency transactions are translated into the functional currency, using

the exchange rates prevailing at the dates of the transactions. Foreign

exchange gains and losses resulting from the settlement of such transactions

and from the re-measurement of monetary items denominated in foreign

currency at year-end exchange rates are recognized in the income statement.

Non-monetary items are not retranslated at year-end and are measured at

historical cost (translated using the exchange rates at the transaction date),

except for non-monetary items measured at fair value which are translated

using the exchange rates at the balance sheet date.

1.3 Revenue and segments

The Group has not yet engaged in revenue generating activities and hence no

revenue is recognized in the financial statements.

Currently, Management regard the Group to operate in one segment, and

hence no segment disclosures are provided.

1.4 Research and development costs

Research and development costs primarily comprise internal and external

costs related to development activity. The costs include external consultants,

employee costs, materials and registration work regarding patents. All

development costs have been expensed.

1.5 Administrative costs

Administrative costs comprise costs incurred during the year concerning

management and corporate costs,including costs concerning administrative

staff, the executive board, stock exchange costs, investor relations and IT etc.

Consolidated Financial Statements

Notes to the consolidated financial statements

Pharma Equity Group A/S Annual Report 2025 41

1. Accounting policies

1.1 Basis of preparation

The consolidated report for the year 1 January –31 December 2025 (”2025”)

has been prepared in accordance with IFRS Accounting Standards ("IFRS"), as

adopted by the EU, IFRIC interpretations and with those parts of the Danish

Financial Statements Act applicable to listed companies.

IFRS is subject to amendments and interpretations by the IASB and the IFRS

Interpretations Committee, and there is an on-going process of review and

endorsement by the European Commission. The consolidated report for 2024

complies with each IFRS that is mandatory for accounting periods ending on 31

December 2025.

The consolidated report has been prepared on going concern basis and has

been prepared under the historical cost convention.

The accounting policies are unchanged from last year except for changes due to

implementation of new and revised standards that were effective January 1,

2025.

The principal accounting policies are set out below.

Accounting for Reponex transaction:

On 24 March 2023, Pharma Equity Group A/S (”PEG”) acquired the entire

share capital in Reponex Pharmaceuticals (”Reponex”) in exchange for shares in

PEG and whereby the shareholders of Reponex have become the majority

owner of PEG. The acquisition of Reponex means that PEG from 24 March

2023 is required to publish consolidated financial statements. In the past,

PEG's financial reporting has been on a stand-alone basis.

With the Reponex shareholders becoming the majority owners of PEG,

Reponex has been identified as accounting acquirer for the purposes of the

consolidated financial statements. Hence, the consolidated report reflects the

assets, liabilities, operations and cash flows of Reponex for the entire 2023,

including reported comparative figures, whereas the assets, liabilities,

operations and cash flows of PEG are reflected in the consolidated report from

24 March 2023 where the transaction was completed. Hence, this is an

important change compared to the past.

For the reporting of historical financial figures for PEG, these are reported as

comparative figures in the parent financial statements.

1.6 Net financials

Net financials comprise interest, currency gains/losses, amortization of

financial assets and liabilities, additions and reimbursements under the Danish

tax repayment scheme, etc. Financial income and expenses are recognized in

the income statement with the amounts that relate to the respective financial

years. Fair value changes relating to the Portinho S.A receivable is due to the

financial nature of the receivable also included in Net financials.

1.7 Share based employee remuneration

In the past, Reponex has issued equity-settled share-based remuneration plans

for its employees and members of the board of directors. The last plan was

settled in February 2023 with an equity inflow of DKK 12.7m in Reponex. As

per 31.12 2025 there are no ongoing share-based remuneration plans.

1.8 Intangible assets

Developments and patents costs

Patents and development costs are expenses as incurred as the development

projects do not meet the criteria’s set by IAS 38 due to insecurity of authority’s

approvals and other insecurities.

Consolidated Financial Statements

Notes to the consolidated financial statements

Pharma Equity Group A/S Annual Report 2025 42

1.9 Tangible assets

Tangible fixed assets are measured at cost less accumulated depreciation and any

write-down for impairment.

The depreciable amount is cost less any expected residual

value after the end of the useful life of the asset. The depreciation period and the

residual value are determined at the acquisition date and reassessed annually. If

the residual value exceeds the carrying amount, depreciation is discontinued.

If the depreciation period or the residual value is changed, the effect on

deprecation will, in future, be recognized as a change in the accounting estimates.

The cost comprises acquisition cost and costs directly associated with the

acquisition until the time when the asset is ready for use. The cost of an asset is

divided into separate components when relevant. These components are

depreciated separately, the useful lives of each individual component differing,

and the individual component representing a material part of the total cost.

Depreciation is recognized on a straight-line basis according to an assessment of

the expected useful life and the residual value of the individual assets:

Equipment:

Useful life: 3-5 years

Residual value: 0%

Gain or loss derived from the disposal of tangible fixed is measured as the

difference between the sales price less selling costs and the carrying amount at

the date of disposal. Gain or loss is recognized in the income statement as other

operating income or other operating expenses.

1.10 Leased assets and leasing liabilities

The Group assesses whether a contract is or contains a lease at inception of the

contract. The Group recognizes right-of-use assets and corresponding lease

liabilities at the lease commencement date, except for short-term leases and

leases of low value. For these leases, lease payments are recognized as an

operating expense on a straight-line basis over the term of the lease.

The right-of-use asset is initially measured at cost, which comprises the initial

amount of the lease liabilities adjusted for any lease payments made at or before

the commencement date, plus initial costs incurred.

The right-of-use assets are subsequently measured at cost less accumulated

depreciation and any impairment losses. The right-of-use assets are from the

commencement date depreciated over the shorter period of lease term and

useful life of the underlying asset. The estimated useful lives of right-of-use assets

are determined on the same basis as those of the Group's corresponding assets

such as equipment. In addition, right-of-use assets are periodically reduced by

impairment losses, if any.

The lease liabilities are initially measured at the present value of the lease

payments that are not paid at the commencement date, discounted using the

interest rate implicit in the lease or, if that rate cannot be readily determined, the

Group's incremental borrowing rate.

Lease payments included in the measurement of the lease liabilities comprise the

following:

• Fixed payments.

• Variable payments, if any, dependent on an index or rate.

• The exercise price of a purchase option, if any, if it is reasonably certain that

the option will be exercised.

• Amounts expected to be payable under residual value guarantees, if

applicable.

The lease liabilities are subsequently measured at amortized cost using the

effective interest method. It is remeasured when there is a change in future lease

payments arising from a change in an index or rate, if there is a change in the

estimate of the amount expected to be payable under a residual value guarantee,

or if the management changes its assessment of whether it will exercise a

purchase, extension or termination option.

When the lease liabilities are remeasured in this way, a corresponding adjustment

is made to the carrying amount of the right-of-use assets or is recorded in profit

or loss if the carrying amount of the right-of-use assets has been reduced to zero.

1.11 Financial instruments

Recognition, initial measurement and de-recognition

Financial assets and financial liabilities are recognized when the Group becomes a

party to the contractual provisions of a financial instrument and are measured

initially at fair value adjusted by transaction costs, except for those carried at fair

value through profit or loss which are measured initially at fair value. Subsequent

measurements of financial assets and financial liabilities are described below.

Financial assets are derecognized when the contractual rights to the cash flows

from the financial asset expire, or when the financial asset and all substantial

risks and rewards are transferred. A financial liability is derecognized when it is

extinguished, discharged, cancelled or expires.

Classification and subsequent measurement of financial assets

For the purpose of subsequent measurement, financial assets other than those

designated and effective as hedging instruments (currently not relevant) are

classified into the following categories upon initial recognition:

1) loans and receivables (amortized costs)

2) financial assets at fair value through profit or loss (FVTPL) - currently not

relevant

3) held-to-maturity (HTM) investments - currently not relevant.

All financial assets except for those at FVTPL are subject to review for impairment

at least at each reporting date to identify whether there is any objective evidence

that a financial asset or a group of financial assets is impaired. Different criteria to

determine impairment are applied for each category of financial assets, which are

described below.

All income and expenses relating to financial assets that are recognized in profit or

loss are presented within finance costs, finance income or other financial items.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or

determinable payments that are not quoted in an active market. After initial

recognition, these are measured at amortized cost using the effective interest

method, less provision for impairment. Discounting is omitted where the effect of

discounting is immaterial. The Group’s cash and cash equivalents, trade and most

other receivables fall into this category of financial instruments.

Reference is made to note 2.1 and 12 in relation to the measurement of the

Portinho receivable following that reverse take-over accounting has been applied

for the PEG/Reponex transaction.

Consolidated Financial Statements

Notes to the consolidated financial statements

Pharma Equity Group A/S Annual Report 2025 43

1.12 Income taxes

Tax expense recognized in profit or loss comprises the sum of deferred tax and

current tax not recognized in other comprehensive income or directly in equity.

Current income tax assets and/or liabilities comprise those obligations to, or

claims from, fiscal authorities relating to the current or prior reporting periods,

that are unpaid at the reporting date. Current tax is payable on taxable profit,

which differs from profit or loss in the financial statements. Calculation of current

tax is based on tax rates and tax laws that have been enacted or substantively

enacted by the end of the reporting period, including any expected tax refund

under the tax credit system for development activities. As described in note 8,

current tax in 2023 - 2025 only relates to recognition of tax credit from the

Group's development activities.

Deferred income taxes are calculated using the liability method on temporary

differences between the carrying amounts of assets and liabilities and their tax

bases. However, deferred tax is not provided on the initial recognition of goodwill,

or on the initial recognition of an asset or liability unless the related transaction is a

business combination or affects tax or accounting profit. Deferred tax on

temporary differences associated with investments in subsidiaries is not provided

if reversal of these temporary differences can be controlled by the Group and it is

probable that reversal will not occur in the foreseeable future.

Deferred tax assets and liabilities are calculated, without discounting, at tax rates

that are expected to apply to their respective period of realization, provided they

are enacted or substantively enacted by the end of the reporting period. Deferred

tax assets are recognized to the extent that it is probable that they will be able to

be utilized against future taxable income, based on the Group`s forecast of future

operating results which is adjusted for significant non-taxable income and

expenses and specific limits to the use of any unused tax loss or credit. Deferred

tax liabilities are always provided for in full.

Deferred tax assets and liabilities are offset only when the Company has the right

and intention to set off current tax assets and liabilities from the same taxation

authority.

As further described in note 8, no deferred tax assets have been recognized at

31.12.2025 and 31.12.2024.

Changes in deferred tax assets or liabilities are recognized as a component of tax

income or expense in profit or loss, except where they relate to items that are

recognized in other comprehensive income, or directly in equity, in which case the

related deferred tax is also recognized in other comprehensive income or equity,

respectively.

1.13 Cash and cash equivalents

Cash and cash equivalents comprise on demand bank deposits.

1.14 Equity, reserves and dividend payments

Share capital represents the nominal value of shares that have been issued and

fully paid in.

Share premium includes any premiums received on issue of share capital. Any

transaction costs associated with the issuing of shares are deducted from share

premium, net of any related income tax benefits. As allowed under Danish

corporate laws, share premium is presented as part of retained earnings, since

share premium is a available for dividend distribution and can be used to cover

negative free reserves.

Retained earnings include all current and prior period retained profits and losses

and share-based employee remuneration as well as transfers of share premium.

All transactions with owners are recognized separately within equity.

Dividend distributions payable to shareholders are included in other liabilities

when the dividends have been approved at a general meeting prior to the

reporting date

1.15 Convertible loans classified as equity

The Group's convertible loans are rated in accordance with IAS 32 Financial

Instruments: Presentation. The instruments do not entitle the holder to a cash

refund and do not contain any contractual obligation for the Group to provide cash

or other financial assets. The loans are converted into a fixed number of shares at

a fixed conversion price.

On this background, the convertible loans meet the criteria for classification as

equity instruments under IAS 32.16 and IAS 32.28 and are therefore fully

recognized under equity at first recognition.

The convertible loans are recognised at fair value at the time of issuance with a

counterpart in equity. Subsequently, the instruments are not measured, and no

interest expenses are recognized in the income statement.

Payments (calculation of interest) to holders of equity instruments are recognized

directly in equity and not in the income statement after first recognition.

In concrete terms, this means:

The so-called interest rates/coupons:

• Not recognized as interest expense

• Does not affect EBIT or profit for the year

Instead, they are treated as:

• Dividends or other equity distribution

• Booked directly on equity (e.g. retained profit)

In other words, there is no subsequent amortization and no effective interest rate

as with debt.

If the convertible loans are not converted by the lender before the maturity date,

the company converts the convertible loans into shares in the company at the

conversion price.

The convertible loans are presented as a separate item under equity. Any

conversion will be recognised as a reclassification within equity without impact on

earnings.

Material Estimate Disclosure (IAS 1)

The classification of the convertible loans as equity is based on management's

assessment that the instruments meet the criteria of IAS 32, including that the

conversion will be made into a fixed number of shares without the possibility of

cash settlement.

Note 1.16 – Correction of error relating to Receivable Portinho S.A.

Following the decision issued by the Danish Business Authority on 20

November 2025, the Company has reassessed the measurement of the

receivable from Portinho S.A. in accordance with IFRS 9 Financial

Instruments. The receivable is classified as a financial asset measured at

amortised cost and is subject to impairment based on the Expected Credit

Loss (ECL) model in accordance with IFRS 9.5.5.17. The previous valuation

approach, which was based on a simplified net present value calculation,

has been replaced by a probability-weighted ECL model reflecting multiple

possible outcomes. In accordance with IAS 8 Accounting Policies, Changes

in Accounting Estimates and Errors, the change in measurement is treated

as a correction of an error. The correction relates solely to the accounting

measurement/impairment of the receivable and does not affect the

Company’s legal claim against Portinho S.A. or the underlying contractual

arrangements.

The effect of the correction on the consolidated financial statements for

2024 is set out on the next page.

Consolidated Financial Statements

Notes to the consolidated financial statements

Pharma Equity Group A/S Annual Report 2025 44