Announcement PDF annual report FY2025 B 2025 ANNUAL REPORT Percheron Therapeutics Limited (ASX: PER) Appendix 4E 1. Company details Name of entity: Percheron Therapeutics Limited ABN: 41 095 060 745 Reporting period: For the year ended 30 June 2025 Previous period: For the year ended 30 June 2024 2. Results for announcement to the market The results of Percheron Therapeutics Limited for the Year Ended 30 June 2025 are as follows: $ Loss from ordinary activities after tax attributable to the owners of Percheron Therapeutics Limited up 25% to (14,921,913) Loss for the year attributable to the owners of Percheron Therapeutics Limited up 25% to (14,921,913) Explanation of Results The Company reported a loss for the full-year ended 30 June 2025 of $14,921,913 (30 June 2024: $11,919,223). The loss is after fully expensing all research and development costs (including those related to the manufacture of clinical development supplies) deployed in the clinical development of ATL1102 for Duchenne Muscular Dystrophy to Phase IIB trial. Additionally, the loss includes non-cash expenses relating to the issue of bonus options and other share-based payments of $1,555,898 (30 June 2024: $198,398). For further details relating to the current period’s results, refer to the Annual Report attached to this document. Comments The loss for the Company after providing for income tax amounted to $14,921,913 (30 June 2024: $11,919,223). 3. Dividends No dividends have been paid or declared by the Company since the beginning of the current reporting period. No dividends were paid for the previous reporting period. 4. Net Tangible Assets Per Share Net tangible assets per ordinary security Reporting period Previous period $ $ (0.92) (1.03) Net tangible assets are defined as net assets of the Company which include both Right-of-Use assets and corresponding lease liabilities as per the introduction from 01 July 2019, of AASB16: “Leases”. 5. Status of Audit of Accounts The Appendix 4E is based on accounts which have been audited. The audit report is included within the annual report which accompanies this Appendix 4E. PERCHERON THERAPEUTICS A4E ANNUAL REPORT 2025 Contents: PAGE Letter from the Chair 2 CEO Report 2 Operations Report 4 Directors' Report 6 Auditor Independence Declaration 20 Corporate Governance 21 Statement of Profit or Loss and Other Comprehensive Income 23 Statement of financial position 24 Statement of Changes in Equity 25 Statement of Cash Flows 26 Notes to the Financial Statements 27 Consolidated Entity Disclosure Statement 44 Directors' Declaration 45 Independent Auditor's Report 46 Shareholder Information 50 Corporate Information 52 PERCHERON THERAPEUTICS 1 Letter from the Chair Dear Shareholders, The past twelve months have been transformative for Percheron Therapeutics, marking both the conclusion of one chapter and the exciting beginning of another. This Annual Report not only reflects on our recent challenges but also highlights our strategic pivots and the promising future we envision. In December 2024, we faced a significant setback with the negative read-out from the phase IIb study of avicursen (ATL1102) in Duchenne muscular dystrophy. Despite the drug's safety and pharmacological activity, it did not achieve the desired efficacy. Recognising the need to safeguard our financial stability, we swiftly prioritised conserving cash reserves and made the difficult decision to terminate the study. This included implementing a rigorous cost reduction program and downsizing our team. I want to express my heartfelt gratitude to our talented and dedicated colleagues who have transitioned to new roles. Their contributions have been invaluable, and we wish them continued success. While we are in the early stages, our recent in-licensing of HMBD-002 exemplifies the innovative and strategic direction we are taking to build a stronger, more diversified Percheron. We are shifting our focus from rare diseases to include oncology, aligning with global trends and investment opportunities. Our new business model emphasises the strategic development and commercialisation of promising drug candidates, rather than the initial discovery phase. Looking ahead, we aspire to build a diversified portfolio of drug candidates to mitigate risks and maximise shareholder value. The avicursen story has underscored the importance of not relying on a single program. We are committed to adding more promising opportunities to our portfolio and building critical mass as a drug development business. CEO Report Dear Shareholders, In June 2025, we in-licensed a new asset, HMBD-002, into Percheron’s pipeline. I’d like to take the opportunity to summarise some of the reasons why we are so excited about the transaction, and what it means for the future of the company. To begin with, HMBD-002 is a different kind of technology from our previous endeavours. It is a monoclonal antibody, which is a class of drugs that has revolutionised the treatment of many diseases over the last two or three decades. In general, monoclonal antibodies give us the ability to target biological processes in the human body with a very high degree of precision, making drugs safer and more effective. In oncology, many of the most successful and impactful new medicines of the twenty-first century have been monoclonal antibodies, including drugs such as Herceptin® (trastuzumab), Avastin® (bevacizumab), and Keytruda® (pembrolizumab). 2 2025 ANNUAL REPORT We are immensely grateful for the support of our shareholders during this challenging period. Your confidence in our vision has been a source of strength. We are determined to rebuild the value of your investments in Percheron and look forward to a promising future as a revitalised and reinvigorated drug development company. In closing, I would like to recognise my fellow non-executive Director, Dr Gil Price, for his steadfast support, and our CEO, Dr James Garner, and his management team for their tireless efforts. Together, we are poised to lead Percheron into a new era of growth and success. Dr Charmaine Gittleson Chair of the Board Second, HMBD-002 targets VISTA (v-domain immunoglobulin suppressor of T-cell activation), a cell-surface receptor which is involved in the immune system’s response to cancer. Ordinarily, our immune system protects us from cancerous cells in much the same way that it protects us from infection. For tumours to become established, resulting in a clinical presentation of ‘cancer’, they must usually evade the routine surveillance of a healthy immune system. Part of the way in which tumours do this is by activating and expressing immunosuppressive proteins, such as CTLA4, PD-1, LAG3, TIGIT, and VISTA. Inhibiting these targets should help to reactivate the immune system around the tumour. Several such targets are well proven, including CTLA4 and PD-1, while others, such as LAG3, TIGIT, and VISTA, remain experimental. These considerations alone – a monoclonal antibody targeting VISTA – establish HMBD-002 as an exceptionally exciting drug candidate for the potential treatment of cancer. It is, in fact, arguably the most advanced such drug in the global pipeline, and there is a real opportunity for Percheron to become a leading global player in this field. But in selecting HMBD-002 from the many dozens of opportunities that we have reviewed over recent months, we were mindful not just of the scientific interest that each candidate represented, but also what it might mean for the company as a business and, by extension, what it might mean for our shareholders. Our view was that HMBD-002 was unambiguously the most compelling opportunity available on which to rebuild the company. Key to this judgement was the fact that HMBD-002 has already completed a phase I clinical trial in patients with advanced cancer. Like all such studies, this was primarily a safety study, conducted in late-stage patients with a variety of cancer types, but we were encouraged to see a number of patients remain on drug for longer than we might ordinarily expect. Importantly, the study demonstrated that HMBD-002 is safe and well-tolerated, especially by the standards of cancer medicines. The trial even provided us some very high-quality combination data with Keytruda® (pembrolizumab), one of the best-selling cancer drugs in history. And to complete the picture, the phase I study was conducted at some of the leading cancer hospitals in the United States, including Stanford University Medical Center and MD Anderson Cancer Center, and was performed under the oversight of the US FDA. There is much work to do over coming months to turn these aspirations into reality, but all of us on the Percheron team are excited to take up the new challenge, and we look forward to providing regular updates to shareholders as we move forward. Our passion has always been to deliver first-class drug development in a way that makes a meaningful impact in the lives of patients and, by doing so, returns substantial value to our shareholders. We are firmly of the view that HMBD-002 provides an ideal vehicle through which to pursue those goals. We continue to scout for other opportunities. The Board’s objective for the company, in the medium term, is to insulate shareholders from the binary risk associated with development of a single asset. We hope to find one or more programs which are complementary to HMBD-002, and which can sit alongside it in our pipeline. For the near term though, we have plenty to keep us busy, and a rich well of opportunity from which to provide value-driving inflection points for investors. That has been a vital consideration for us, because we recognise and deeply appreciate the patience and support that shareholders have extended us over the past six or eight months. We are working hard to restore and increase the value of your investments in the company. Finally, I should note that, in the final analysis, the ultimate strength of a biotech company resides less in its pipeline and very much in its people. Percheron is fortunate to possess one of the strongest teams I have had the good fortune to work with in my career, and the calibre of its team is a large part of the reason why we have been entrusted with this promising asset, and why the company has been able to endure the vicissitudes of recent months. It seems, more than ever, appropriate here to pay tribute to the individuals whose steadfastness has given the company an opportunity to rebuild and to thrive. Dr James Garner CEO & Managing Director Taken in aggregate, these factors substantially de-risk the further development of HMBD-002, and they greatly accelerate its path to market. Our next step will be to deploy one or more phase II studies to seek convincing evidence of efficacy in one or more types of cancer. Before we do so, we will need to tech transfer the asset into our ownership, complete some manufacturing work, and consult with clinicians and advisors. As a result, we are working towards commencing recruitment for a new clinical trial in CY2026. Where might such a trial take us? In oncology, drugs are often approved after a persuasive phase II trial, in a process that FDA refers to as ‘accelerated approval’, so it is certainly conceivable that a successful phase II study may set us on a path to registration. In parallel, positive phase II data is likely to make HMBD-002 a very attractive prospect for potential licensees, and we will almost certainly seek to partner with a larger company to commercialise the drug. PERCHERON THERAPEUTICS 3 Operations Report Overview of Company’s Activities Percheron Therapeutics Limited (“the Company” or “Percheron”) remained a clinical-stage drug development business during the period, albeit with some changes to the composition of its pipeline, as outlined below. Avicursen (ATL1102) For some time, the Company’s lead asset has been avicursen (ATL1102), an antisense oligonucleotide inhibitor of CD49d, a cell surface receptor on white blood cells. Inhibition of this target has demonstrated immunomodulatory activity in a number of inflammatory disease models, including asthma and multiple sclerosis. Background to Avicursen Avicursen was licensed from Ionis Pharmaceuticals, Inc (NASDAQ: IONS), a company based in Carlsbad, CA, and a pioneer in the field of antisense oligonucleotide technology. The companies were parties to a Collaboration and License Agreement, which was entered into in 2001, and which formed the basis of a research partnership that led to the discovery and development of Percheron’s pipeline assets, ATL1102 and ATL1103. The Company previously conducted a phase II clinical trial of avicursen in multiple sclerosis, which showed positive signals of activity, but which was limited by concerns over toxicity, particularly in respect of thrombocytopaenia (decreasing platelet counts). In 2020, the Company reported the results of an exploratory single-arm study of avicursen in Duchenne muscular dystrophy (DMD), conducted at the Royal Children’s Hospital in Melbourne, Australia. The drug appeared safe and welltolerated in a paediatric population at a dose of 25mg and showed potential benefit in comparison to historical controls across a range of efficacy and pharmacodynamic endpoints. On the basis of these positive signals, in June 2023, Percheron commenced enrolment to an international randomised, double-blind, placebo-controlled trial of avicursen in DMD (NCT05938023). This study was designed to recruit a substantially similar population to the earlier phase IIa study, specifically non-ambulant DMD patients between the ages of 10 and 17. Study participants were equally randomised to three arms, comprising two doses of ATL1102 and a saline placebo. The primary endpoint of the study was the Performance in the Upper Limb (PUL2.0) module, assessed six months after initiating treatment. After six months, patients allocated to the placebo group were equally re-randomised to either of the active treatment arms, providing a ‘delayed start’ study design and ensuring that all patients had the 4 2025 ANNUAL REPORT opportunity to receive the study drug. After completing twelve months of participation in the study, all patients undergo a four-month off-treatment follow-up period. The phase IIb study completed recruitment in May 2024, having enrolled 48 patients at sixteen sites across five countries (UK, Australia, Turkey, Serbia, and Bulgaria). Three Australian sites were among those participating, providing continuity with the earlier phase IIa study, and allowing optimal access to the Australian Federal Government’s R&D Tax Incentive. Events During the Period In July 2024, the Company entered into a revised agreement with Ionis, Inc (NASDAQ: IONS). With the previous collaborative research program effectively complete, the parties elected to retire the original agreement and entered into a revised ‘Royalty Agreement.’ Under the revised agreement, Percheron remains obligated to use commercially reasonable efforts to bring products to market, retains access to relevant Ionis know-how, and is committed to pay royalties on proceeds of commercialisation. In September 2024, the Company reported final data from a nine-month GLP chronic toxicology study of avicursen in non-human primates. This data had previously been indicated by the US FDA as a requirement for dosing in humans beyond six months’ duration. The results of the study were broadly consistent with an earlier six-month study. No new or unexpected toxicities were observed, and no animals died on study. Expected low-grade findings were fully reversible during the recovery period. In December 2024, the Company announced initial topline data from the phase IIb study, representing the first six months on study for all patients. The trial did not meet its primary endpoint, which was Performance of the Upper Limb 2.0 (PUL2.0) score at week 25 compared to placebo. The least squares mean change in PUL2.0 score for patients receiving placebo was -1.4, for patients receiving 25mg of avicursen was -1.8 (p=0.695), and for patients receiving 50mg of avicursen was -1.6 (p=0.919). A p-value above 0.05 means that any numerical difference observed is not statistically significant. There were no statistically significant differences in efficacy on available secondary endpoints, nor was there a clear directional trend toward benefit associated with administration of avicursen. Given these negative results, the Board determined that it was in the best interests of shareholders and study subjects to immediately terminate the study. In February 2025, as part of a broad-ranging review of the Company’s pipeline, the Board further resolved to make no further substantive investment in the development of avicursen, but to retain some optionality for a period of time in order to opportunistically explore interest that may arise from other parties. Atesidorsen (ATL1103) The Company’s second asset has been atesidorsen (ATL1103), an antisense oligonucleotide inhibitor of human growth hormone receptor, indicated for acromegaly. Percheron had previously completed a phase II clinical trial of atesidorsen in patients with acromegaly, which had shown the drug to be safe and well-tolerated, and which had provided evidence of potential efficacy. After a strategic review in February 2025, following the trial read-out of avicursen, the Board resolved to terminate all further development of atesidorsen. HMBD-002 In June 2025, Percheron entered into an exclusive, worldwide agreement with Hummingbird Bioscience Pte Ltd, a venturebacked company based in Singapore, to license HMBD-002 from Hummingbird into Percheron. HMBD-002 is a recombinant humanised monoclonal IgG4 antibody to human v-domain immunoglobulin suppressor of T-cell activation (VISTA). VISTA is one of a number of novel immuno-oncology targets under investigation by pharmaceutical companies, with potential applications to a range of solid tumours and haematological malignancies. diagnosed cases of breast cancer, or about 30,000 patients per annum in the United States, and is notoriously resistant to existing therapies, so the data suggests a promising potential use of HMBD-002 for future investigation. Percheron expects to spend the early part of FY2026 on regulatory and planning activities, and on detailed discussion with clinician advisors in order to determine the best path forward for HMBD-002. In addition, as part of the contractual arrangements, Hummingbird will oversee the manufacture of a new batch of clinical trial material. Percheron aims to return the drug to the clinic in CY2026. R&D Tax Incentive In October 2024 the Company announced that it had received from the Australian Taxation Office an R&D Tax Incentive refund payment of $2.35 million for the year ended 30 June 2024. The amount received was in relation to the expenditure incurred on eligible R&D activities undertaken in Australia and overseas. Financial Position As at 30 June 2025, the Company had cash reserves (including Term Deposits) of $10,167,856 (2024: $11,866,659). HMBD-002 was previously the subject of a phase I clinical trial, conducted in the United States under an Investigational New Drug (IND) application with the US FDA. The trial showed the drug to be generally safe and well-tolerated, both as monotherapy and in combination with pembrolizumab, and established appropriate dosing for subsequent trials. Percheron anticipates receipt of a definitive Clinical Study Report (CSR) for the phase I study in 1Q FY2026, with communication of full results to the market thereafter. In July 2025, a team of researchers at Stanford University published data regarding the combination of HMBD-002 and radiotherapy in preclinical models of various cancers, including the MOC2 model of squamous cell carcinoma of the head and neck (SCCHN). In the latter model, the addition of HMBD-002 to radiotherapy extended survival to 35 days, compared to 27.5 days for radiotherapy alone (p < 0.05). Radiotherapy is a widely used treatment modality in oncology, and these data suggest a potential use for HMBD002 to substantially augment its efficacy. In August 2025, the Company announced publication of preclinical data regarding the use of HMBD-002 in triplenegative breast cancer (TNBC) by a team of researchers at the University of Texas Southwestern Medical Center. In the EO771 mouse model of breast cancer, administration of HMBD-002 almost entirely blocked tumour growth ( p < 0.0001). TNBC represents approximately 10-15% of newly- PERCHERON THERAPEUTICS 5 Directors' Report Directors The Board of Directors of Company present their report at the end of, or during, the year ended 30 June 2025. In order to comply with the provisions of the Corporations Act 2001, the Board of Directors report as follows: Dr Charmaine Gittleson MD, BSci, AICD, Independent Non-Executive Chair Appointed to the Board 22 March 2021 Experience Charmaine has extensive international experience as a pharmaceutical physician and enterprise leader in pharmaceutical drug development, governance and risk management gained during her 15-year tenure (2005-2020) with global specialty biotechnology company CSL Limited (ASX: CSL). During her time at CSL, Charmaine had at various times accountability for clinical research, medical safety, medical and patient related ethics for development and on market programs, providing leadership in strategic product development, planning and implementation across multiple therapeutic and rare disease areas. Charmaine held the key leadership roles of: Senior Director, Head Safety and Clinical Development (2006-2010) in Melbourne Australia; Vice President Clinical Strategy (2010-2013) and Senior Vice President Clinical Development (2013-2017) in Pennsylvania United States; and Chief Medical Officer in Melbourne from 2017 until her recent retirement from corporate roles in 2020. Charmaine commenced her role as Chair on 28 July, 2021. Interest in shares & options 2,399,999 ordinary shares and 3,239,999 options over ordinary shares. Committees Chair of Remuneration Committee; Member of other Audit Committee and Nominating and Governance Committee. Directorships held in other listed entities Patrys Limited (ASX:PAB) – Resigned on 17 June 2025 Directorships previously held in other listed entities Nil Dr Ben Gil Price, Independent Non-Executive Director Appointed to the Board 4 October 2021 Experience Gil is an experienced biotech executive and entrepreneur with depth of expertise across clinical asset investment strategy, evaluation, financing and execution. Additional leadership experience includes R&D, Medical, and strategic corporate functions. Between November 2021 and January 2023 he served as Neurobo Pharmaceuticals, President and CEO. Prior to joining Neurobo, Gil was Chief Medical Officer of ProPharma Group, a global industry leader in comprehensive compliance services that span the entire lifecycle of pharmaceuticals, biologics, and devices. Gil was previously responsible for the strategic and tactical management of all business at Drug Safety Solutions. After a successful 20-year history, Drug Safety Solutions was acquired in June 2017 by Linden Capital Partners. From June 2017 to January 2020, Gil served as the Chief Medical Officer for the global ProPharma Group, a Linden subsidiary. Over the years Gil has served on multiple corporate boards, including public, private and not-for-profit. His recent experience, Rexahn Pharmaceuticals, Inc. (NYSE American: RNN) he served on Compensation, Governance, and Business Development. In his previous role with Sarepta Therapeutics NASDAQ: SRPT, he helped to guide the company transition from $80 million market (2008) to its 2019 market cap of $8.4 billion. Interest in shares & options 5,999,805 shares and 3,000,000 options over ordinary shares. Committees Chair of Audit Committee; Member of other Remuneration Committee and Nominating and Governance Committee Directorships held in other listed entities Nil Directorships previously held in other listed entities Nil 6 2025 ANNUAL REPORT Dr James Garner, Managing Director, Chief Executive Officer Appointed to the Board 8 May 2023 Experience James brings broad experience in drug development and commercialisation, acquired through regional and global roles in the biotech and pharmaceutical sector. His previous responsibilities have included leading phase I-IV clinical trials, product registration, reimbursement, and business development. He possesses strong executive leadership and management skills that have seen him achieve outstanding results over a twenty-year career in the drug development industry, including roles with Biogen, Takeda, Quintiles (an international clinical research organisation) and Sanofi in Singapore. Most recently James served as CEO of Kazia Therapeutics Limited (NASDAQ:KZIA), a clinical stage, oncologyfocused company where James rebuilt the organisation around a pipeline of novel assets and attracted significant financing via capital markets and non-dilutive opportunities. Interest in shares & options 52,500,000 shares and 14,690,000 options over ordinary shares. Committees Nil Directorships held in other listed entities Nil Directorships previously held in other listed entities Kazia Therapeutics (NASDAQ: KZIA) – Resigned 1 May 2023. Key Management Personnel Ms Deborah Ambrosini, Company Secretary and Chief Financial Officer Appointed 17 June 2024 Deborah is a highly experienced CFO and Company Secretary. She is a Fellow of Chartered Accountants Australia and New Zealand with over 20 years’ experience in leading financial strategies to facilitate growth plans. Her experience spans the biotechnology, mining, IT communications and financial services sectors. Experience Deborah possesses extensive experience in debt and equity capital raising activities, regulatory compliance, process improvement, investor relations, large contract management and leading all aspects of accounting, budgeting, forecasting and financial analysis. She also has significant experience both nationally and internationally in financial and business planning, compliance and taxation. Deborah has held Director roles in both listed and unlisted entities. Deborah has been a state finalist in the Telstra Business Woman Awards. She was also named as one of the Top 40 pre-eminent business leaders in the highly prestigious WA Business News 40 under 40 awards. Principal Activities The principal activity of Percheron Therapeutics Limited during the financial year was the research and development of novel antisense pharmaceuticals. Dividends There were no dividends paid, recommended or declared during the current or previous financial year. PERCHERON THERAPEUTICS 7 Directors' Report continued Significant Changes in the State of Affairs Likely Developments & Expected Results On 18 December 2024, the Company announced initial topline data from the phase IIb study of avicursen in Duchenne Muscular Dystrophy, representing the first six months on study for all patients. The trial did not meet its primary endpoint, which was Performance of the Upper Limb 2.0 (PUL2.0) score at week 25 compared to placebo. Given these negative results, the Board determined that it was in the best interests of shareholders and study subjects to immediately terminate the study. The likely developments in the Company's operations, to the extent that such matters can be commented upon, are covered in the 'Operations Report’. On 2 April 2025 the Company announced that it would not invest any material company funds in the further development of avicursen however, the program would be kept alive but dormant for the remainder of CY25 to allow the Company to opportunistically explore potential interest from investigators or partners. The Company also announced that ATL 1103 would be discontinued. In June 2025, Percheron entered into an exclusive, worldwide agreement with Hummingbird Bioscience Pte Ltd, a venturebacked company based in Singapore, to license HMBD-002 from Hummingbird into Percheron. HMBD-002 is a recombinant humanised monoclonal IgG4 antibody to human v-domain immunoglobulin suppressor of T-cell activation (VISTA). VISTA is one of a number of novel immuno-oncology targets under investigation, with potential applications to a range of solid tumours and haematological malignancies. HMBD-002 was previously the subject of a phase I clinical trial, conducted in the United States under an Investigational New Drug (IND) application with the US FDA. The trial showed the drug to be generally safe and well-tolerated, both as monotherapy and in combination with pembrolizumab, and established appropriate dosing for subsequent trials. Significant Events After the Reporting Date On 10 July 2025 the Company paid USD $2.0 million (AUD $3.08 million) to Hummingbird Bioscience in accordance with the worldwide exclusive license agreement signed on 25 June 2025. Under the agreement the Company will pay Hummingbird an upfront amount of USD $3.0 million, contingent milestone payments of up to USD $287 million plus royalties on net sales of the product. The upfront payment will be made in two tranches with USD $2.0 million payable within 20 days of the start date of the agreement, while the balance of USD $1 million is due within 20 days of Hummingbird supplying to the Company the HMBD-002 drug substance. 8 2025 ANNUAL REPORT Operating & Financial Review The net loss after tax of the Company for Year Ended 30 June 2025 was $14,921,913 (30 June 2024 loss: $11,919,223). The loss is after fully expensing all research and development costs (including those related to the manufacture of clinical development supplies) deployed in the clinical development of ATL1102 for Duchenne Muscula