Pharma Equity A/S : 2024 Q1 Consolidated Interim Report

Consolidated interim report

for the 3 month-period ended 31 March 2024

Pharma Equity Group A/S

Slotsmarken 18, 2., 2970 Hørsholm, Denmark

Registered number: 26 79 14 13

	Content
	Page
Company information	2
Chairman and CEO letter	3
Shareholder information	5
Management`s review	6
Management's report	8
Consolidated statement of comprehensive income	9
Consolidated statement of financial position	10
Consolidated statement of changes in equity	11
Consolidated cash flow statement	12
Notes to the consolidated interim financial statements	13

1

	Company information
Group companies	Pharma Equity Group A/S - listed parent company
	Reponex Pharmaceuticals A/S - 100% owned subsidiary
Executive management	Thomas Kaas Selsø
Board of directors	Christian Vinding Thomsen, Chairman
	Martin Engell-Rossen, Vice Chairman
	Omar S. Qandeel
	Lars Rosenkrantz Gundorph
	Peter Vilmann
Registered number	26 79 14 13
Registered office	Slotsmarken 18, 2. th.
	2970 Hørsholm
	Denmark
Website, Pharma Equity Group A/S	www.pharmaequitygroup.com
Website, Reponex Pharmaceuticals A/S	www.reponex.dk

2

Chairman and CEO letter

Chairman and CEO letter

Key points from Q1-24 report (period 1 January - 31 March 2024)

On 16 May 2024, the Board of Directors and the Executive Management of Pharma Equity Group A/S ("PEG", "the Company" or "the Group") considered and approved the interim report of the Group for the period 1 January - 31 March 2024 ("Q1 2024 Report"). The report has not been audited or reviewed.

Clinical results

Shortly after the end of Q1, the Company's subsidiary, Reponex Pharmaceuticals A/S (Reponex), was able to report very positive final results from the clinical phase 2 proof-of-concept trial of the drug candidate RNX-051, the MEFO study, based on the high-level summary received from Reponex´ clinical site. Reference is made to company announcement no. 11 from 15 April 2024.

Reponex's MEFO study is concerned with the treatment of patients with right-sided colon cancer and right-sided colon polyps/adenomas (precancerous cursors) with drug candidate RNX-051. Reponex´ clinical collaborators who conducted the study reported that, based on the results of the MEFO study, there appears to be a clear way forward to determine whether treatment with RNX-051 as a single and even repeated dose in patients with intestinal adenomas will lead to the prevention of adenomas.

Products and patents

On 22 January 2024, the Company announced in Company Announcement No. 2 that the Company's subsidiary, Reponex Pharmaceuticals A/S (Reponex) had announced that the European Patent Office (EPO) had approved EP patent application no. 3740286 which includes Reponex's innovative treatment method. The patent deals with drug compositions for the elimination of bacterial promoters of colorectal cancer by intraluminal application (RNX-051). The treatment method focuses on fighting the bacterial layer, also known as biofilm, which protects cancerous tumors in the colon or rectum. By defeating this protective barrier, the treatment seeks to make the cancer cells more susceptible to the body's own immune system.

On 5 March 2024, the Company announced in Company Announcement No. 6 that the Company's subsidiary, Reponex Pharmaceuticals A/S (Reponex) had announced that the European Patent Office (EPO) had approved EP patent application No. 3145533 for Reponex's Wound Healing Drug (RNX-022). The treatment method consists of topical application of a hydrogel containing granulocyte macrophage colony stimulating factor (GM-CSF), sucralfate, and hyaluronan to accelerate wound healing. The combination helps stimulate the proliferation of cells related to the healing process and tissue regeneration.

Financial overview

For the first 3 months of 2024, Pharma Equity Group A/S realized a loss after tax of DKK 7.2 million, which is in line with expectations for the period. At 31 March 2024, equity amounts to DKK 31.8 million.

Outlook

We maintain the previously announced guidance for 2024, a loss before tax in the range of DKK 24 million to DKK 29 million for the Group. The outlook does not reflect any recovery of the Portinho S.A. receivable.

Market Maker Agreement

In company announcement no. 9 of 22 March 2024, the Company announced that the Company entered into an agreement with Danske Bank on the exercise of market maker in the PEG share.

Receivable from Portinho S.A.

The Group's receivable from Portinho S.A has a principal amount of EUR 9.55m with a carrying amount 31 March 2024 of DKK 58m, unchanged from 31 December 2023.

As announced in company announcements no. 39 from 25 September 2023, no. 46 from 28 November 2023 and no. 7 from 20 March 2024, the payment from Portinho S.A. has been postponed according to the original due date, which was 1 July 2023. As of 15 April 2024, the Company has filed a summon with the Maritime and Commercial High Court against Portinho S.A. in relation to recovery of the receivable of EUR 9.55m plus interest. The Company's Portuguese lawyer, in cooperation with the Company's Danish lawyer, has also initiated various preliminary and protective legal actions and investigations in Portugal in relation to securing payment of the receivable.

Capital resources

In the period 1 January 2024 - 31 March 2024, DKK 8.4m in convertible loans have been subscribed for and paid to the Company. The loans are granted as subordinated loans and are thus subordinated to the Company's other creditors, except for any other equivalent subordinated loans. Please refer to company announcement no. 4 of 7 February 2024 for further details of the convertible loans.

Management has assessed its financial resources based on its expected costs and investments for 2024, and on this basis, Management is concluding that sufficient funding is available to continue the operations of the Group as planned. Bridge financing has since 1 January 2024 created loans for DKK 8.4 million. As per 31 March 2024, the Company has an unused credit facility of DKK 10 million.

By company announcement no. 15 of 8 May 2024, the Company has convened an extraordinary general meeting on 3 June 2024 regarding a proposal to reduce the share capital from DKK 1,022,963,883 to 102,296,388.3 by changing the share size from DKK 1.00 to DKK 0.10. Thus, the number of shares will remain the same. The amount of the reduction will be transferred to a special reserve, which will be part of the free reserves within equity.

3

Chairman and CEO letter

By company announcement no. 16 of 8 May 2024, the Company has announced that the Board of Directors of the Company is exploring the possibilities of strengthening the Company´s working capital through a capital increase at market price

if the above mentioned capital reduction (company announcement no. 15 of 8 May 2024) is adopted at the convened extraordinary general meeting on 3 June 2024.

Online presentation of the Q1-24 quarterly financial statements

At 11:00 today, CEO Thomas Kaas Selsø invites you to an online presentation of the Q1-2024 report and significant events so far in

2024. Direct registration via link:

https://www.inderes.dk/videos/pharma-equity-group-opdatering-pa-1-kvartal-2024.

Contact person - Investor Relations

Any questions regarding this announcement and the quarterly financial statements for Q1-2024 can be directed to the Company's CEO Thomas Kaas Selsø, by email [e-mail].

On the Company's website www.pharmaequitygroup.com further information and all published announcements can be found.

Hørsholm 16 May 2024

Christian Vinding Thomsen, Chairman

Thomas Kaas Selsø, CEO

4

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	1,022,963,883
Denomination	DKK 1.00
No. of shares/votes	1,022,963,883
Negotiable	Yes
Voting restrictions	No

Pharma Equity Group shares and capitalization

On 31 March 2024, PEG has a nominal share capital of DKK 1,022,963.883 consisting of 1,022,963,883 shares of each DKK 1.00. On 31 March 2024, the share price was DKK 0.36 corresponding to a market value of DKK 368 million.

On the 22 March 2024, PEG has entered into a marked maker agreement with Danske Bank for the PEG share. Reference is made to company announcement no 9 from 22 March 2024

On 27 February 2024, AG Equity Research AB (Analyst Group), Sweden has released an investment analysis report of PEG group.

The Company is followed by the following equity research companies: Danske Bank (DK), HC Andersen Capital (DK) and Analyst Group (SE). Reference is made to PEG website investor/stock-information or direct link:

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

Shareholding structure

PEG´s shareholders are preliminary residents of Denmark. On 31 March 2024, the following shareholders held more than 5% of the share capital and votes:

• Niels Erik Jespersen Holding ApS, Haarby
• N.H.L. Entreprise ApS, Holsted
• Biopharma Holding ApS, Hørsholm

Rest of the shares are spread out on approximately 1,800 shareholders.

Management shareholding and market value 31 March 2024

	*Number of	Value 31.03.
Name	shares	2024 TDKK
Thomas Kaas Selsø, CEO, PEG	1,822,474	656
Christian Vinding Thomsen, Chairman of the Board, PEG	1,233,605	444
Lars Rosenkrantz Gundorph, Board Member, PEG	21,351,475	7,687
Troels Peter Troelsen, Board Member, Reponex	21,944,945	7,900
Charlotte Pahl, Board Member, Reponex	3,694,210	1,330
Total Management shareholdings	50,046,709	18,017
* Including shares held in entities controlled by them

5

Management's review

The Group´s principal activities

PEG is a company listed on Nasdaq Copenhagen main stock exchange.

Currently, the Group is through Reponex a clinical-stage pharmaceutical company.

Description of Reponex' operations

Reponex is a clinical-stage biopharmaceutical company dedicated to the development of new, effective treatments for diseases that have significant patient and social impact for which current therapy is lacking or in need of improvement. The diseases are acute or life threatening, such as bacterial peritonitis and colorectal cancer, or may be chronic diseases that reduce lifespan and the quality of life and may shorten it, including inflammatory bowel diseases or complications of chronic diseases such as the disabling non-healing skin ulcers in patients with diabetes or venous insufficiency. There is a continuing unmet medical need to improve the treatment of these difficult conditions, which is what Reponex strives to achieve.

It is Reponex' ambition to create value through Reponex´sustaining platform by bringing the clinical programs to a clinical stage with relevant clinical data documenting the effect of the drug candidates, that will be a strong starting point for the completion of an exclusive licensing of Reponex´ drug candidates to global pharmaceutical companies, that can contribute to execution of the further clinical and regulatory process as well as having relevant distribution power.

Reponex is an organizational efficient company with an aggressive commercial outsourcing strategy to be as agile as possible, to meet complex and continual changes in the pharma industry. The strategy creates a cost efficient and flexible way to build relevant human resources fast, which is considered a key factor and driver of success.

It is Reponex' clinical strategy to establish collaborations with internationally leading institutions and hospitals in combination with the best experts in each of the Company's specific clinical areas.

Estimates and judgements

The preparation of the interim consolidated report requires the making of estimates and judgements that effects the reporting of assets, liabilities and expenses. The estimates and judgements are reviewed on an ongoing basis. Estimates and judgements are based on actual results and on various other assumptions, which the Group believes to be reasonable under the circumstances. However, the actual result may differ significantly from the estimates. We believe that the accounting policies relating to intangible assets and the valuation of the Portinho S.A receivable involve estimates or judgements that could affect the reported financial position and results.

Financial performance

For the tree-month period ended 31 March 2024, the Group has continued its work on preparing the portfolio of clinical programs being ready for commercialization in the coming years.

The result for the period, a loss of TDKK 7,170, is in line with Management's expectations for the period.

Key Figures

	PEG Group	Reponex*	PEG Group
	01-01-2024 -	01-01-2023 -	01-01-2023 -
	31-03-2024	31-03-2023	31-12-2023
	(unaudited)	(reviewed)	(audited)
	TDKK	TDKK	TDKK
Revenue	0	0	0
EBITDA	-6,704	-3,063	-20,411
Depreciation, amortization and impairment losses	-124	-141	-480
Operating profit/loss	-6,828	-3,204	-20,891
Financials net	-958	-4	-1,548
Profit/loss	-7,170	-2,672	-24,609
Total assets	78,281	93,912	81,335
Investments in tangible assets	0	73	73
Equity	31,760	63,099	38,931
Solvency ratio	40.6%	67.2%	47.9%
Earnings per share	-0.01	-0.00	-0.02

*Reference is made to the Consolidated interim report for Q1-2023 in which quarter the transaction between PEG and Reponex was completed. The transaction was accounted for according to the rules for reverse take-overs, whereby Reponex is considered the acquirer of PEG for accounting purposes, and whereby comparative figures for the periods before the completion of the transaction refer to Reponex.

6

Management's review

Portinho S.A. receivable

As announced in company announcements no. 39 from 25 September 2023, no. 46 from 28 November 2023 and no. 7 from 20 March 202 4, the payment from Portinho S.A. has been postponed from its original due date, which was 1 July 2023. On 15 April 2024, the Co mpany filed a summon with the Maritime and Commercial High Court against Portinho S.A. to claim immediate payment of the receivable of EUR 9.55m plus interest. The Company's Portuguese lawyer, in cooperation with the Company's Danish lawyer, has also initiated various p reliminary and protective legal actions and investigations in Portugal in relation to securing payment of the receivable. Management has ass essed that the valuation of DKK 58 million recognised at 31 December 2023 be retained at 31 March 2024. Reference is made to note 6 for furt her information.

Financial resources

The Group does not expect commercial revenue until 2025. Therefore, as long as the Portinho S.A receivable has not been recov ered, Management has particular focus on ensuring that the Group has sufficient financial resources available to meet its obligatio ns as they fall due.

Management has assessed its financial resources based on its expected costs and investments for 2024, and on this basis Management is concluding that sufficient funding is available to continue the operations of the Group as planned. Bridge financing has sinc e 1 January 2024 created loans for DKK 8.4 million. The Company has as per 31 March 2024 an unused credit facility on DKK 10 million.

By company announcement no. 15 of 10 May 2024, the Company has convened an extraordinary general meeting on 3 June 2024 regarding a proposal to reduce the share capital from DKK 1,022,963,883 to 102,296,388.3 by changing the share size from DKK 1.00 to DK K 0.10. Thus, the number of shares will remain the same. The amount of the reduction will be transferred to a special reserve, which will be part of the free reserves within equity.

Outlook 2024

PEG reported its outlook for 2024 in company announcement from 20 March 2024, and the outlook remains unchanged with no commercial revenue in 2024 and an expected pre-tax loss in the range of DKK 24 to 29 million for the Group. The outlook does not reflect any potential gains/losses relating to the expected upcoming recovery of the Portinho S.A receivable.

Clinical programs

Shortly after the end of Q1, the Company's subsidiary, Reponex Pharmaceuticals A/S (Reponex), was able to report very positive final results from the clinical phase 2 proof-of-concept trial of the drug candidate RNX-051, the MEFO study, based on the high-level summary received from the ´Reponex clinical site.

Reponex's MEFO study concerns the treatment of patients with right-sided colon cancer and right-sided colon polyps/adenomas (precancerous cursors) with the drug candidate RNX-051. The clinical collaborators who conducted the study reported that, based on the results of the MEFO study, there appears to be a clear way forward to determine whether treatment with RNX-051 as a single and even repeated dose in patients with intestinal adenomas will lead to the prevention of adenomas.

Products and patents

On 22 January 2024, the Company announced in company announcement No. 2 that the Company's subsidiary, Reponex Pharmaceuticals A/S (Reponex) had announced that the European Patent Office (EPO) had approved EP patent application no. 3740286 which includes Reponex's innovative treatment method. The patent deals with drug compositions for the elimination of bacterial promoters ofcolorectal cancer by intraluminal application (RNX-051). The treatment method focuses on fighting the bacterial layer, also known as biofilm, which protects cancerous tumors in the colon or rectum. By defeating this protective barrier, the treatment seeks to make the cancer cells more susceptible to the body's own immune system.

On 5 March 2024, the Company announced in Company Announcement No. 6 that the Company's subsidiary, Reponex Pharmaceuticals A/S (Reponex) had announced that the European Patent Office (EPO) had approved EP patent application No. 3145533 for Reponex's Wound Healing Drug (RNX-022). The treatment method consists of topical application of a hydrogel containing granulocyte macrophage colony stimulating factor (GM-CSF), sucralfate, and hyaluronan to accelerate wound healing. The combination helps stimulate the proliferation of cells related to the healing process and tissue regeneration.

Please also visit our website, where we regularly post presentations about the development activity, etc.: https://pharmaequitygroup.com/video-presentations/

Events occurring after the balance sheet date

By announcement no. 15 of 8 May 2024, the Company has convened an extraordinary general meeting on 3 June 2024 regarding a proposal to reduce the share capital from DKK 1,022,963,883 to 102,296,388.3 by changing the share size from DKK 1.00 to DKK 0.10. Thus, the number of shares will remain the same. The amount of the reduction will be transferred to a special reserve, which will be part of free reserves within equity.

By company announcement no. 16 of 8 May 2024, the Company has announced that the Board of Directors of the Company is exploring the possibilities of strengthening the Company´s working capital through a capital increase at market price

if the above mentioned capital reduction (company announcement no. 15 of 8 May 2024) is adopted on the convened extraordinary general meeting on 3 June 2024.

7

Management's report

The Board of Directors and the Executive Management have today reviewed and approved the consolidated interim report of Pharma Equity Group A/S for the period 1 January 2024 - 31 March 2024.

The consolidated interim report has been prepared in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European

Union, and additional Danish reporting requirements for interim reporting for listed companies.

In our opinion, the accounting principles applied are appropriate and the consolidated interim report gives a true and fair view of the Group's assets and liabilities and financial position at 31 March 2024 and of the results of the Group's operations and cash flow for the period 1 January to 31 March 2024.

Further, in our opinion, Management's review gives a true and fair review of the development in the Group's operations and financial matters, the result of Group's operations for the period and the financial position as well as description of the principal risks and

uncertainties that the Group is facing.

Hørsholm, 16 May 2024

Executive Management

Thomas Kaas Selsø, CEO
Board of Directors
Christian Vinding Thomsen	Martin Engell-Rossen	Omar S Qandeel
Chairman	Vice Chairman
Lars Rosenkrantz Gundorph	Peter Vilmann

8

Consolidated statement of comprehensive income

		PEG Group	Reponex*	PEG Group*
		01-01-2024 -	01-01-2023 -	01-01-2023 -
		31-03-2024	31-03-2023	31-12-2023
		(unaudited)	(Reviewed)	(audited)
			(restated)
Note		TDKK	TDKK	TDKK
3 Revenue	0	0	0
	Production costs	0	0	0
	Gross profit	0	0	0
	Research and development costs	-2,573	-723	-9,082
	Administrative costs	-4,255	-2,481	-11,809
	Operating profit/loss (EBIT)	-6,828	-3,204	-20,891
	Allowance Portinho receivable	0	0	-4,403
	Financial income	0	0	14
	Financial expenses	-958	-4	-1,562
	Profit/loss before tax	-7,786	-3,208	-26,842
4 Tax on profit/loss for the period	616	536	2,233
	Net profit/loss for the period	-7,170	-2,672	-24,609
	Other comprehensive income/loss	0	0	0
	Total comprehensive income/loss	-7,170	-2,672	-24,609
9 Earnings per share (EPS basic), DKK	-0.01	-0.00	-0.02
9 Diluted earnings per share (EPS-D), DKK	-0.01	-0.00	-0.02

• In 2023, PEG Group statement of comprehensive income consists of Reponex for the period 1 January 2023 - 24 March 2023 and PEG/Reponex consolidated for the period 24 March 2023 - 31 December 2023.

9