ENANTA PHARMACEUTICALS INC

Previous wording

We discovered glecaprevir, the second of two antiviral protease inhibitors developed through our collaboration with AbbVie for the treatment of acute or chronic infection with hepatitis C virus, or HCV. Glecaprevir is co-formulated as part of AbbVie’s leading brand of direct-acting antiviral, or DAA, combination treatment for HCV, which has been marketed under the tradenames MAVYRET®(U.S.) and MAVIRET® (ex-U.S.) (glecaprevir/pibrentasvir) since 2017 for the treatment of chronic HCV. MAVYRET®was also approved as the first and only treatment for acute HCV infection in June 2025.

Current wording

We discovered glecaprevir, the second of two antiviral protease inhibitors developed through our collaboration with AbbVie for the treatment of acute or chronic infection with hepatitis C virus, or HCV. Glecaprevir is co-formulated as part of AbbVie’s leading brand of direct-acting antiviral, combination treatment for HCV, which has been marketed under the tradenames MAVYRET®(U.S.) and MAVIRET® (ex-U.S.) (glecaprevir/pibrentasvir) since 2017 for the treatment of chronic HCV. MAVYRET and MAVIRET were also approved as the first and only treatments for acute HCV infection in the United States and the European Union in June 2025 and June 2026, respectively.

Previous wording

Our active development programs in virology are focused on respiratory syncytial virus, or RSV, the most common cause of bronchiolitis and pneumonia in young children and a significant cause of respiratory illness in older adults. Populations at high risk for severe RSV infection include infants and young children, adults older than 65 years of age, and those with comorbidities such as chronic heart or lung disease. Recent CDC estimates suggest a significant RSV burden in the U.S., with up to 6.5 million outpatient visits, 350,000 hospitalizations and 23,000 deaths annually.

Current wording

Our active development programs in virology are focused on respiratory syncytial virus, or RSV, the most common cause of bronchiolitis and pneumonia and a leading cause of U.S. hospitalization in young children, and a significant cause of respiratory illness in older adults. Populations at high risk for severe RSV infection include infants and young children, adults older than 65 years of age, and those with comorbidities such as chronic heart or lung disease. CDC estimates from the United States 2024-2025 RSV season indicate that RSV led to up to 6.8 million outpatient visits, approximately 370,000 hospitalizations, and up to 24,000 deaths. We estimate a global market opportunity of over $2 billion for an oral RSV antiviral for children and all high-risk adults, with a potential total addressable population of greater than 3 million patients in the United States. Additionally, we believe that the recent FDA approval of at-home combination self-tests capable of detecting RSV, influenza A & B, and COVID-19 will further drive RSV diagnosis and potentially enable a test-to-treat model for zelicapavir.

Previous wording

In immunology, we are designing and developing highly potent and selective, oral small molecule inhibitors for the treatment of type 2 inflammatory disease by targeting key mechanisms of the immune response. An overactive immune response is a primary driver of a number of inflammatory diseases for which there is an enduring unmet need including atopic dermatitis, or AD, urticarias, asthma, prurigo nodularis, or PN, chronic rhinosinusitis with nasal polyps, or CRSwNP, as well as some forms of chronic obstructive pulmonary disease, or COPD, and other conditions. Based on industry reports, by 2030 the market is projected to be approximately $5 billion for urticaria, $30 billion for AD and $35 billion for the combined market of asthma, COPD, CRSwNP, and PN.

Current wording

In immunology, we are designing and developing highly potent and selective, oral small molecule inhibitors for the treatment of type 2 inflammatory disease by targeting key mechanisms of the immune response. An overactive immune response is a primary driver of a number of inflammatory diseases for which there is an enduring unmet need including atopic dermatitis, or AD, urticaria, asthma, prurigo nodularis, or PN, chronic rhinosinusitis with nasal polyps, or CRSwNP, as well as some forms of chronic obstructive pulmonary disease, or COPD, eosinophilic esophagitis, or EoE, allergic rhinoconjunctivitis, or ARC, and other conditions. Based on industry reports, by 2032 the market is projected to be approximately $40 billion for urticaria and AD, approximately $40 billion for the combined market of asthma, COPD, CRSwNP, EoE, ARC and PN and could include an additional $40 billion or greater taking into account potential expansion into gastrointestinal and neurology indications thought to be associated with mast cells.

Previous wording

Our initial immunology targets involve the following mechanisms of immune response:

Current wording

Our initial immunology targets involve the following mechanisms:

Previous wording

MRGPRX2, a non-canonical G-Protein-Coupled-Receptor (GPCR) expressed predominantly on mast cells, which upon activation triggers degranulation and release of inflammation mediating components, leading to an inflammatory response that is a driver in multiple allergic diseases.

Current wording

MRGPRX2, a non-canonical G-Protein-Coupled-Receptor, or GPCR, expressed predominantly on mast cells, which upon activation triggers degranulation and release of inflammation mediating components, leading to an inflammatory response that is a driver in multiple allergic diseases, and potentially implicated in migraine.

Previous wording

As of March 31, 2026, we had $227.0 million in cash, cash equivalents and short-term and long-term marketable securities. Based on our operating plan, we believe that our existing cash, cash equivalents and short-term and long-term marketable securities as of March 31, 2026, as well as the cash flows from our retained portion of future HCV royalties, will enable us to fund our operating expenses and capital expenditure requirements into fiscal 2029.

Current wording

As of June 30, 2026, we had $211.5 million in cash, cash equivalents and short-term and long-term marketable securities. Based on our operating plan, we believe that our existing cash, cash equivalents and short-term and long-term marketable securities as of June 30, 2026, as well as the cash flows from our retained portion of future HCV royalties, will enable us to fund our operating expenses and capital expenditure requirements into fiscal 2029.

Previous wording

RSV. We have two clinical stage candidates for RSV – zelicapavir (formerly EDP-938) and EDP-323. Both candidates inhibit viral replication and the production of new virions. These clinical candidates differ from fusion inhibitors, which act only at viral entry. Zelicapavir, which has Fast Track designation from the U.S. Food and Drug Administration, or FDA, is a potent inhibitor of the RSV N-protein. EDP-323, which also has a Fast Track designation from the FDA, is an inhibitor of the RSV L-protein.

Current wording

RSV. We have two clinical stage candidates for RSV – zelicapavir (EDP-938) and EDP-323, both of which have Fast Track designation from the U.S. Food and Drug Administration, or FDA. Both candidates inhibit viral replication and the production of new virions for both major subgroups of RSV, and differ from fusion inhibitors, which act only at viral entry. Zelicapavir is an inhibitor of the RSV N-protein, and EDP-323 is an inhibitor of the RSV L-protein.

Previous wording

In these Phase 2 clinical studies, zelicapavir has demonstrated a favorable safety profile, consistent with that observed in over 700 subjects exposed to zelicapavir to date, as well as antiviral activity and reductions in symptom duration. We are continuing to conduct enabling activities for a pivotal study of zelicapavir in high-risk patients with RSV, including engaging with the FDA on the registrational development path. We plan to provide an update on the study design and development path in the second quarter of 2026. In parallel, we are exploring potential business development opportunities related to our RSV programs.

Current wording

In these Phase 2 clinical studies, zelicapavir has demonstrated a favorable safety profile, consistent with that observed in over 700 subjects exposed to zelicapavir to date, as well as antiviral activity and reductions in symptom duration.

Previous wording

STAT6 Inhibitors. We have a pre-clinical stage program to develop oral inhibitors of the signal transducer and activator of transcription 6 transcription factor, known as STAT6, for the treatment of type 2 immune-driven diseases. STAT6 is responsible for IL-4/IL-13 signaling, the pathway targeted by dupilumab, an IL-4 and IL-13 monoclonal antibody marketed as DUPIXENT®. We are initially focusing on AD for a proof-of-concept clinical study, and subsequently other indications where dupilumab is approved or has shown clinical activity. EPS-3903 is our lead development candidate, which has demonstrated nanomolar potency in both binding and cellular assays and is highly selective for STAT6 versus other STATs. EPS-3903 results in a rapid, continuous and complete (>90%) inhibition of phosphorylated STAT6 after oral dosing in mice. Importantly, EPS-3903 showsin vivo efficacy comparable to dupilumab, or an anti-mouse IL-4/IL-13 antibody, in multiple disease models of asthma (ovalbumin, house dust mite) and AD (MC903). EPS-3903 displays favorablein vitro andin vivo ADME properties, supportive of once-daily dosing potential. We are currently performing scale-up and Investigational New Drug application, or IND, enabling activities and are on track to file an IND in the second half of 2026.

Current wording

STAT6 Inhibitors. We have a preclinical stage program to develop oral inhibitors of the signal transducer and activator of transcription 6 transcription factor, known as STAT6, for the treatment of type 2 immune-driven diseases. STAT6 is responsible for IL-4/IL-13 signaling, the pathway targeted by dupilumab, an IL-4 and IL-13 monoclonal antibody marketed as DUPIXENT®. We are initially focusing on AD for a proof-of-concept clinical study, and subsequently other indications where dupilumab is approved or has shown clinical activity. EPS-3903 is our lead development candidate, which has demonstrated nanomolar potency in both binding and cellular assays and is highly selective for STAT6 versus other STATs. EPS-3903 results in a rapid, continuous and complete (>90%) inhibition of phosphorylated STAT6 after oral dosing in mice. Importantly, EPS-3903 showsin vivo efficacy comparable to dupilumab, or an anti-mouse IL-4/IL-13 antibody, in multiple disease models of asthma (ovalbumin, house dust mite) and AD (MC903). EPS-3903 displays favorablein vitro andin vivo ADME properties, supportive of once-daily dosing potential. We are currently performing scale-up and Investigational New Drug application, or IND, enabling activities and are on track to file an IND in the second half of 2026.

Previous wording

MRGPRX2 Inhibitors. In January 2026, we announced a pre-clinical program targeting MRGPRX2, a non-canonical G protein-coupled receptor, or GPCR, expressed predominantly on mast cells, for the treatment of type 2 immune driven diseases. MRGPRX2 inhibitors act through non-depleting mast cell modulation, including IgE-independent pathways, and may have the potential to address multiple chronic inflammatory diseases, including urticaria, asthma, prurigo nodularis and others, with strong efficacy and a best-in-disease safety profile. Currently, our prototype inhibitors demonstrate MRGPRX2 inhibition with nanomolar potency (EC50 of 1-2nM) in cellular assays and prevent skin mast cell activation in humanized MRGPRX2 mouse models. Further, our prototype inhibitors show potent activity across multiple MRGPRX2 agonists, with high selectivity for MRGPRX2 versus other GPCRs. These prototypes also demonstrate favorablein vitro andin vivo ADME properties, supportive of once-daily dosing potential. We are continuing to evaluate multiple compounds in pre-clinical studies and expect to select a development candidate in the second half of 2026.

Current wording

MRGPRX2 Inhibitors. In January 2026, we announced a preclinical program targeting MRGPRX2, a GPCR, expressed predominantly on mast cells, for the treatment of type 2 immune driven diseases. MRGPRX2 inhibitors act through non-depleting mast cell modulation, including IgE-independent pathways, and may have the potential to address multiple chronic inflammatory diseases, including atopic dermatitis, asthma and others, with strong efficacy and a best-in-disease safety profile as well as potential in migraine. Currently, our prototype inhibitors demonstrate MRGPRX2 inhibition with nanomolar potency (EC50 of 1-2nM) in cellular assays and prevent skin mast cell activation in humanized MRGPRX2 mouse models. Further, our prototype inhibitors show potent activity across multiple MRGPRX2 agonists, with high selectivity for MRGPRX2 versus other GPCRs. These prototypes also demonstrate favorablein vitro andin vivo ADME properties, supportive of once-daily dosing potential. We are continuing to evaluate multiple compounds in preclinical studies and expect to select a development candidate in the second half of 2026.

Previous wording

Glecaprevir is the HCV protease inhibitor we discovered that was developed by AbbVie in a fixed-dose combination with its NS5A inhibitor, pibrentasvir, for the treatment of chronic HCV. In June 2025 it was also approved by the FDA as the first and only treatment for acute HCV infection. This patented combination, currently marketed under the brand names MAVYRET® (U.S.) and MAVIRET® (ex-U.S.), is referred to in this report as MAVYRET/MAVIRET. The first protease inhibitor developed through this collaboration, paritaprevir, is part of AbbVie’s initial HCV regimens, which have been almost entirely replaced by MAVYRET/MAVIRET. Since August 2017, substantially all of our royalty revenue has been derived from AbbVie’s net sales of MAVYRET/MAVIRET. Our ongoing royalty revenues from this regimen consist of annually tiered, double-digit, per-product royalties on 50% of the calendar year net sales of the glecaprevir/pibrentasvir combination in MAVYRET/MAVIRET. The annual royalty tiers return to the lowest tier for sales on and after each January 1.

Current wording

Glecaprevir is the HCV protease inhibitor we discovered that was developed by AbbVie in a fixed-dose combination with its NS5A inhibitor, pibrentasvir, for the treatment of chronic HCV. This product was also approved by the FDA and European Commission as the first and only treatment for acute HCV infection in June 2025 and June 2026, respectively. This patented combination, currently marketed under the brand names MAVYRET® (U.S.) and MAVIRET® (ex-U.S.), is referred to in this report as MAVYRET/MAVIRET. The first protease inhibitor developed through this collaboration, paritaprevir, is part of AbbVie’s initial HCV regimens, which have been almost entirely replaced by MAVYRET/MAVIRET. Since August 2017, substantially all of our royalty revenue has been derived from AbbVie’s net sales of MAVYRET/MAVIRET. Our ongoing royalty revenues from this regimen consist of annually tiered, double-digit, per-product royalties on 50% of the calendar year net sales of the glecaprevir/pibrentasvir combination in MAVYRET/MAVIRET. The annual royalty tiers return to the lowest tier for sales on and after each January 1.

Previous wording

We are currently funding all research and development for our wholly-owned programs, which are targeted toward the discovery and development of novel compounds. We are currently conducting enabling activities for a pivotal study of zelicapavir in high-risk patients with RSV. In addition, we initiated a Phase 1 clinical trial of EDP-978, our lead immunology program. We are also continuing to conduct pre-clinical discovery research efforts in immunology.

Current wording

We are currently funding all research and development for our wholly-owned programs, which are targeted toward the discovery and development of novel compounds. We are advancing zelicapavir into the RESOLVE study, a registrational Phase 2b/3 clinical trial in adults at high risk of severe outcomes from RSV infection. In addition, we are conducting the LOTUS study, a Phase 2b clinical trial of zelicapavir in pediatric patients with RSV, and a Phase 1 clinical trial of EDP-978, our lead immunology program. We are also continuing to conduct preclinical discovery research efforts in immunology.

Previous wording

As a result of the timing of our clinical and pre-clinical development programs, we expect our research and development expenses will fluctuate from period to period. In the next 12 months, we expect a reduction in our external research and development expenses, primarily driven by the timing of clinical trials in our RSV programs.

Current wording

As a result of the timing of our clinical and preclinical development programs, we expect our research and development expenses will fluctuate from period to period. In the next 12 months, we expect an increase in our external research and development expenses, primarily driven by the timing of clinical trials in our RSV programs.

Previous wording

The following table is a summary of revenue recognized for the three and six months ended March 31, 2026 and 2025:

Current wording

The following table is a summary of revenue recognized for the three and nine months ended June 30, 2026 and 2025:

Previous wording

As our internal product candidates are currently in pre-clinical or clinical development, we have not generated any revenue from our own product sales. We do not expect to generate any revenue from product sales derived from these product candidates for at least the next several years.

Current wording

As our internal product candidates are currently in preclinical or clinical development, we have not generated any revenue from our own product sales. We do not expect to generate any revenue from product sales derived from these product candidates for at least the next several years.

Previous wording

Research and development expenses consist of costs incurred to conduct basic research, such as the discovery and development of novel small molecules as therapeutics, as well as any external expenses of pre-clinical and clinical development activities. We expense all costs of research and development as incurred. These expenses consist primarily of:

Current wording

Research and development expenses consist of costs incurred to conduct basic research, such as the discovery and development of novel small molecules as therapeutics, as well as any external expenses of preclinical and clinical development activities. We expense all costs of research and development as incurred. These expenses consist primarily of:

Previous wording

third-party contract costs relating to research, formulation, manufacturing, pre-clinical study, and clinical trial activities;

Current wording

third-party contract costs relating to research, formulation, manufacturing, preclinical study, and clinical trial activities;

Previous wording

At any given time, we have later stage programs in clinical development as well as several active early-stage research and drug discovery projects. Our internal resources, employees and infrastructure are utilized across multiple projects, including our early-stage discovery projects. As such, we report information regarding costs incurred based on our programs (i.e., disease area) rather than on a project specific basis. All indirect costs are allocated to programs based on headcount and square footage of our facilities. We expect that our research and development expenses will fluctuate from period to period as we advance our research and development programs. However, in the next 12 months, we expect a reduction in our external research and development expenses, primarily driven by the timing of clinical trials in our RSV programs. To date, we have not identified any significant impact of inflation on spending in research and development, but it is uncertain whether there will be inflationary impacts in future periods.

Current wording

At any given time, we have later stage programs in clinical development as well as several active early-stage research and drug discovery projects. Our internal resources, employees and infrastructure are utilized across multiple projects, including our early-stage discovery projects. As such, we report information regarding costs incurred based on our programs (i.e., disease area) rather than on a project specific basis. All indirect costs are allocated to programs based on headcount and square footage of our facilities. We expect that our research and development expenses will fluctuate from period to period as we advance our research and development programs. However, in the next 12 months, we expect an increase in our external research and development expenses, primarily driven by the timing of clinical trials in our RSV programs. To date, we have not identified any significant impact of inflation on spending in research and development, but it is uncertain whether there will be inflationary impacts in future periods.

Previous wording

Our research and drug discovery and development programs are in early stages; therefore, the successful development of our product candidates is highly uncertain and may not result in approved products. Completion dates and completion costs can vary significantly for each product candidate and are difficult to predict. Given the uncertainty associated with clinical trial enrollments and the risks inherent in the development process, we are unable to determine the duration and completion costs of the current or future clinical trials of our product candidates or if, or to what extent, we will generate revenue from the commercialization and sale of any of our product candidates. We anticipate that we will make determinations as to which development programs to pursue and how much funding to direct to each program on an ongoing basis in response to the pre-clinical and clinical success and prospects of each product candidate, as well as ongoing assessments of the commercial potential of each product candidate.

Current wording

Our research and drug discovery and development programs are in early stages; therefore, the successful development of our product candidates is highly uncertain and may not result in approved products. Completion dates and completion costs can vary significantly for each product candidate and are difficult to predict. Given the uncertainty associated with clinical trial enrollments and the risks inherent in the development process, we are unable to determine the duration and completion costs of the current or future clinical trials of our product candidates or if, or to what extent, we will generate revenue from the commercialization and sale of any of our product candidates. We anticipate that we will make determinations as to which development programs to pursue and how much funding to direct to each program on an ongoing basis in response to the preclinical and clinical success and prospects of each product candidate, as well as ongoing assessments of the commercial potential of each product candidate.

Previous wording

We recognized revenue of $17.2 million during the three months ended March 31, 2026 as compared to $14.9 million during the three months ended March 31, 2025. The $2.2 million increase in revenue was primarily due to AbbVie’s higher reported HCV sales as compared to the same period in 2025.

Current wording

We recognized revenue of $14.4 million during the three months ended June 30, 2026 as compared to $18.3 million during the three months ended June 30, 2025. The $4.0 million decrease in revenue was primarily due to AbbVie’s lower reported HCV sales as compared to the same period in 2025.

Previous wording

Our royalty revenues eligible to be earned in the future will depend on AbbVie’s HCV market share, the pricing of the MAVYRET/MAVIRET regimen, the number of patients treated and the effect of the label expansion for MAVYRET in the United States for the treatment of patients with acute HCV. In addition, at the beginning of each calendar year (the second quarter of our fiscal year), our royalty rate resets to the lowest tier for each of our royalty-bearing products licensed to AbbVie.

Current wording

Our royalty revenues eligible to be earned in the future will depend on AbbVie’s HCV market share, the pricing of the MAVYRET/MAVIRET regimen, the number of patients treated and the effect of the label expansion for MAVYRET/MAVIRET for the treatment of patients with acute HCV infection. In addition, at the beginning of each calendar year (the second quarter of our fiscal year), our royalty rate resets to the lowest tier for each of our royalty-bearing products licensed to AbbVie.

Previous wording

Research and development expenses for the three months ended March 31, 2026 decreased by $8.6 million compared to the same period in 2025.

Current wording

Research and development expenses for the three months ended June 30, 2026 decreased by $5.1 million compared to the same period in 2025.

Previous wording

The costs in our virology programs decreased by $12.9 million due to the timing of clinical trials in our RSV programs.

Current wording

The costs in our virology programs decreased by $9.5 million due to the timing of clinical trials in our RSV programs.

Previous wording

The costs in our immunology programs increased by $3.0 million due to scale-up and IND-enabling activities for such programs.

Current wording

The costs in our immunology programs increased by $3.7 million due to scale-up and IND-enabling activities for such programs.

Previous wording

Other program costs increased by $1.3 million as we advanced early-stage drug discovery efforts.

Current wording

Other program costs increased by $0.8 million as we advanced early-stage drug discovery efforts.

Previous wording

General and administrative expenses decreased by $1.8 million for the three months ended March 31, 2026 compared to the same period in 2025. The decrease was primarily due to lower stock-based compensation expenses during the three months ended March 31, 2026.

Current wording

General and administrative expenses decreased by $0.5 million for the three months ended June 30, 2026 compared to the same period in 2025. The decrease was primarily due to lower stock-based compensation expenses during the three months ended June 30, 2026.

Previous wording

Interest expense increased by $1.6 million for the three months ended March 31, 2026, as compared to the same period in 2025, due to an increase in royalties arising from AbbVie’s product sales under the AbbVie Agreement and corresponding royalty payment to OMERS arising from such sales pursuant to our OMERS royalty sales agreement.

Current wording

Interest expense increased by $2.5 million for the three months ended June 30, 2026, as compared to the same period in 2025, due to an increase in forecasted royalties arising from AbbVie’s product sales under the AbbVie Agreement and corresponding royalty payment to OMERS arising from such sales pursuant to our OMERS royalty sales agreement.

Previous wording

Interest and investment income, net, decreased by $0.2 million for the three months ended March 31, 2026, as compared to the same period in 2025. The decrease was due to lower interest rates year over year.

Current wording

Interest and investment income, net, decreased by $0.4 million for the three months ended June 30, 2026, as compared to the same period in 2025. The decrease was due to lower interest rates year over year.

Previous wording

On July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act, which includes several changes to U.S. federal income tax law, including the temporary and permanent extension of expiring provisions of the Tax Cuts and Jobs Act of 2017, such as 100% bonus depreciation and immediate expensing of domestic research and development costs. The new legislation has multiple effective dates, with certain provisions effective in 2025 and others in the future. We determined that the legislation does not have a material impact on our condensed consolidated financial statements for the three and six months ended March 31, 2026.

Current wording

On July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act, which includes several changes to U.S. federal income tax law, including the temporary and permanent extension of expiring provisions of the Tax Cuts and Jobs Act of 2017, such as 100% bonus depreciation and immediate expensing of domestic research and development costs. The new legislation has multiple effective dates, with certain provisions effective in 2025 and others in the future. We determined that the legislation does not have a material impact on our condensed consolidated financial statements for the three and nine months ended June 30, 2026.

Previous wording

We recognized revenue of $35.8 million during the six months ended March 31, 2026 as compared to $31.9 million during the six months ended March 31, 2025. The $3.9 million increase in revenue was primarily due to AbbVie’s higher reported HCV sales as compared to the same period in 2025.

Current wording

We recognized revenue of $50.1 million during the nine months ended June 30, 2026 as compared to $50.2 million during the nine months ended June 30, 2025. The $0.1 million decrease in revenue was primarily due to a slight decrease in AbbVie’s reported HCV sales as compared to the same period in 2025.

Previous wording

Research and development expenses for the six months ended March 31, 2026 decreased by $15.4 million compared to the same period in 2025.

Current wording

Research and development expenses for the nine months ended June 30, 2026 decreased by $20.5 million compared to the same period in 2025.

Previous wording

The costs in our virology program decreased by $26.4 million due to the timing of our clinical trials in our RSV program.

Current wording

The costs in our virology program decreased by $35.9 million due to the timing of our clinical trials in our RSV program.

Previous wording

The costs in our immunology programs increased by $8.5 million due to scale-up and IND-enabling activities for such programs.

Current wording

The costs in our immunology programs increased by $12.2 million due to scale-up and IND-enabling activities for such programs.

Previous wording

Other program costs increased by $2.4 million as we advanced early-stage drug discovery efforts.

Current wording

Other program costs increased by $3.2 million as we advanced early-stage drug discovery efforts.

Previous wording

General and administrative expenses decreased by $5.7 million for the six months ended March 31, 2026 compared to the same period in 2025. The decrease was primarily due to lower stock-based compensation expenses during the six months ended March 31, 2026 and a decrease in legal expenses related to our patent infringement suit against Pfizer for the ’953 Patent.

Current wording

General and administrative expenses decreased by $6.2 million for the nine months ended June 30, 2026 compared to the same period in 2025. The decrease was primarily due to lower stock-based compensation expenses during the nine months ended June 30, 2026 and a decrease in legal expenses related to our patent infringement suit against Pfizer for the ’953 Patent.

Previous wording

Interest expense increased by $2.7 million for the six months ended March 31, 2026, as compared to the same period in 2025 due to an increase in royalties arising from AbbVie’s product sales under the AbbVie Agreement and corresponding royalty payment to OMERS arising from such sales pursuant to our OMERS royalty sales agreement.

Current wording

Interest expense increased by $5.2 million for the nine months ended June 30, 2026, as compared to the same period in 2025 due to an increase in forecasted royalties arising from AbbVie’s product sales under the AbbVie Agreement and corresponding royalty payment to OMERS arising from such sales pursuant to our OMERS royalty sales agreement.

Previous wording

Interest and investment income, net, decreased by $0.6 million for the six months ended March 31, 2026, as compared to the same period in 2025. The decrease was due to lower interest rates year over year.

Current wording

Interest and investment income, net, decreased by $1.0 million for the nine months ended June 30, 2026, as compared to the same period in 2025. The decrease was due to lower interest rates year over year.

Previous wording

The income tax expense of less than $0.1 million during the three months ended March 31, 2026 was primarily due to state income taxes. The income tax benefit during the three months ended March 31, 2025 was primarily due to an additional federal income tax refund from a net operating loss carryback of $0.9 million. We received the federal income tax refund of $33.8 million, inclusive of interest, in April 2025.

Current wording

The income tax expense of $0.1 million during the nine months ended June 30, 2026 was primarily due to state income taxes. The income tax benefit of $1.7 million during the nine months ended June 30, 2025 was primarily due to an additional federal income tax refund from a net operating loss carryback of $0.9 million. We received the federal income tax refund of $33.8 million, inclusive of interest, in April 2025.

Previous wording

We fund our operations with cash flows from our retained portion of our royalty revenue and our existing financial resources. At March 31, 2026, our principal sources of liquidity were cash and cash equivalents and short-term and long-term marketable securities of $227.0 million.

Current wording

We fund our operations with cash flows from our retained portion of our royalty revenue and our existing financial resources. At June 30, 2026, our principal sources of liquidity were cash and cash equivalents and short-term and long-term marketable securities of $211.5 million.

Previous wording

Cash used in operating activities was $18.9 million for the six months ended March 31, 2026 as compared to cash used in operating activities of $30.3 million for the same period in 2025. Our cash used in operating activities decreased by $11.4 million primarily due to lower research and development payments.

Current wording

Cash used in operating activities was $28.8 million for the nine months ended June 30, 2026 as compared to cash used in operating activities of $12.8 million for the same period in 2025. Our cash used in operating activities was lower in 2025 primarily due to receipt of a $33.8 million income tax refund in April 2025, partially offset by lower research and development payments in 2026.