Herantis Pharma Oyj : Plc Annual Report 2021

Content

Herantis in brief ................................................................................................................................................... 1

Highlights January - December 2021 .................................................................................................. 2

Events after year end ...................................................................................................................................... 3

CEO's statement ................................................................................................................................................. 4

Parkinson's Disease is the 2nd most common neurodegenerative disorder ................. 5

HER-096 - lead asset for delaying progression of PD ............................................................... 6

Management team ........................................................................................................................................... 8

Board of Directors ............................................................................................................................................. 9

Scientific Advisory Board ........................................................................................................................... 10

Board of Directors' Report and Financial Statements

January 1-December 31, 2021 ............................................................................................. 12

1 Review of operations January 1-December 31, 2021 ....................................... 13

• 2 Financial review January 1-December 31, 2021 ................................................. 15

• 3 Events after the review period .................................................................................. 19

• 4 Outlook for 2022 .......................................................................................................... 19

• 5 The Board's proposal for the use of distributable funds .................................... 19

• 6 Key figures consolidated ........................................................................................... 19

• 7 Accounting principles ................................................................................................. 20

• 8 Governance ................................................................................................................... 20

• 9 Financial Statement .................................................................................................... 23

• Consolidated income statement ............................................................................. 23

Consolidated balance sheet ...................................................................................... 24

Consolidated cash flow statement ......................................................................... 25

Parent income statement .......................................................................................... 26

Parent balance sheet .................................................................................................. 27

Parent cash flow statement ...................................................................................... 29

Notes to the financial statements ................................................................................ 30

Signatures ........................................................................................................................ 34

10 Auditor's Report ......................................................................................................... 35

Financial information ...................................................................................................... 37

Certified Advisor: ............................................................................................................. 37

Financial calendar ............................................................................................................ 37

Investor contact ................................................................................................................ 37

Forward-looking statements ......................................................................................... 37

Herantis in Brief

Development of disease-modifying treatment to address the unmet clinical need in Parkinson's disease

Founded in Helsinki, Finland in 2008 with scientific discoveries out of University of Helsinki

Lead asset is HER-096, a small peptidomimetic with a unique mechanismof action and an easy route of administration

Experienced board and management team. 13 employees. 5 PhD's.

Scientific advisory board with globally leading experts in Parkinson's disease from industry and academia

IPO in 2014 and 2019 at First North Nasdaq Helsinki and Stockholm, respectively

Largest shareholders: Swedbank Robur, Nanoform and AP4 Fonden

Herantis focuses on disease modifying, Cerebral dopamine neutrophic factor (CDNF)-based therapies for Parkin-son's disease that aim to restore prote-ostasis, body's natural neuronal protec- tive mechanism. A failure in proteostasis results in pathological accumulation of protein aggregates, neuroinflammation and various forms of cellular stress that is widely implicated in the development of neurodegenerative diseases such as Parkinson's and Alzheimer's disease.

CDNF is a protein that occurs naturally in the body. Its role is to protect neurons by balancing proteostasis, thereby preventing and counteracting disease generating mechanisms.

Herantis' development focus is on the CDNF-based; HER-096 (a synthetic peptidomimetic). A peptidomimetic, is a small protein-like chain designed to mimic the function of the large protein CDNF. HER-096 has demonstrated to have a multimodal mechanism of actionmimicking CDNF and to improve func-tional recovery of damaged neurons in preclinical models. Importantly, in an initial animal model, HER-096 has been shown to readily penetrate the blood brain barrier allowing for conven- ient subcutaneous dosing. Thanks to its multimodal mechanism of action, Herantis' HER-096 molecules have the potential to stop the progression of Parkinson's disease and significantly improve patients' quality of life.

Highlights January-December 2021

Significant progress has been made with HER-096:

Selection of HER-096 as the lead candidate for development based on efficacy, safety, pharmacokinetic, pharmacodynamic and stability criteria

Demonstration of HER-096 crossing the blood brain barrier and entering the brain in therapeutic concentrations after a single subcutaneous administration in rodents

Confirmation of a unique and broad mechanism of action, similar to CDNF, resulting in a significant reduction of α-synuclein deposition, neuroinflammation, and remarkable restoration of dopaminergic neurons in preclinical disease models

Identification of novel biomarker candidates in the Phase 1 Cerebral Dopamine Neurotrophic Factor (CDNF) study aimed at supporting future clinical development of HER-096

Other operational highlights:

A collaboration with Nanoform Finland Plc. was agreed to investigate the feasibility of applying the nanoforming process to rhCDNF. In 2021, we established that nanoformed rhCDNF nanoparticles retain their stability and activity

Formation of Herantis Scientific Advisory Board (SAB), consisting of leading experts in the development of therapies for Parkinson's disease from industry and academia: Dr.Anders Gersel Pedersen M.D. (chair), Dr. Daniele Bravi M.D., Prof. David Dexter, PhD, and Prof. Alberto Espay M.D. MSc

Hilde Furberg, MSc, an experienced biopharma executive, was elected to the Board of Directors

Completion of a private placement exceeding EUR 4.0 million

Herantis published several papers and scientific posters in scientific media and conferences during 2021

Events after year end

On January 20th, 2022, Herantis Phar- ma's Board of Directors appointed Frans Wuite, MD, MBA, as the interim CEO, effec- tive immediately. Wuite is also the Vice Chairman of Herantis' Board of Directors and will continue in this role. Herantis' CEO until January 20th, 2022, Dr. Craig Cook,left the company following the Board of Directors' decision. A search for a perma- nent CEO will be launched. In connec- tion with the CEO transition and following strong preclinical data in 2021, Herantis' Board of Directors has decided to focus a significant majority of the company's

development efforts to advance HER-096, a small, synthetic peptidomimetic mole- cule derived from the active site of CDNF.

HER-096 combines the unique mode of action of CDNF protein to target Parkin-son's disease with the ease of subcuta- neous administration.