2025 Financial Highlights

Financial Performance for the Year Ending December 31, 2025

Total operating profit from continuing operations amounted to €295.0 million in 2025, compared to an operating loss of €188.3 million in 2024. This operating profit was primarily due to the release in revenue of the remaining deferred income balance allocated to the drug discovery platform for an amount of €1,069.0 million. The operating expenses were negatively impacted for a total of €399.8 million, by 1) the decision to wind down the cell therapy activities with an impact of €275.0 million, consisting of an impairment of the cell therapy activities of €228.1 million (on goodwill and fixed assets), severance costs of €33.3 million, costs for early termination of collaborations of €16.3 million, professional services costs of €10.1 million, €1.5 million additional accelerated non-cash cost recognition for subscription right plans and €7.5 million other costs, partly offset by a fair value adjustment of the contingent consideration payable of €21.8 million; and by 2) the strategic reorganization related to the small molecules business announced in January 2025, for €124.8 million. The latter was reflected in severance costs of €47.7 million, costs for early termination of collaborations of €46.1 million, impairment on fixed assets related to small molecules activities of €9.5 million, professional services costs of €14.8 million, €4.6 million additional accelerated non-cash cost recognition for subscription right plans and €2.1 million other operating expenses.

Total net revenues from our continuing operations amounted to €1,112.2 million in 2025, compared to €275.6 million last year. The revenue recognition related to the exclusive access rights granted to Gilead under the Option-, License- and Collaboration Agreement (OLCA) for our drug discovery platform amounted to €1,069.0 million in 2025, compared to €230.2 million in 2024. It was assessed based on the intention to wind down and on the facts and circumstances on December 31, 2025, that the deferred income balance allocated to our drug discovery platform is no longer justified in the 2025 IFRS financial statements, leading to full recognition of the deferred income per December 31, 2024, as revenue. For the avoidance of doubt, the OLCA remains in effect. We also recognized royalty income from Gilead for Jyseleca® for €12.2 million in 2025 (compared to €10.6 million in 2024).

Cost of sales amounted to €29.7 million in 2025, compared to €34.9 million in 2024, and related to the supply of Jyseleca® to Alfasigma under the transition agreement. The related revenues are reported in total net revenues, as supply revenues.

Research & Development (R&D) expenses in 2025 amounted to €459.4 million, compared to €335.5 million in 2024.

Subcontracting costs increased by €72.8 million from €160.1 million in 2024 to €232.9 million in 2025 primarily driven by costs for early termination of collaboration programs and costs for the cell therapy programs in oncology. Depreciation and impairment costs in 2025 increased to €42.4 million, compared to €35.4 million in 2024, due to impairments on fixed assets related to small molecules programs. Personnel costs increased from €87.7 million in 2024 to €147.2 million in 2025 primarily due to severance costs. Lab consumables decreased by €7.1 million as part of it related to small molecule programs, while consultant fees decreased by €8.3 million.

S&M expenses amounted to €6.1 million in 2025, compared to €17.2 million in 2024, and decreased mainly due to the reversal in 2025 of a bad debt provision of €4.0 million recorded in 2024 for a disputed invoice.

G&A expenses amounted to €147.3 million in 2025, compared to €117.2 million in 2024. This cost increase was explained by an increase in personnel costs to €74.4 million in 2025 compared €52.6 million in 2024, due to higher severance costs. The increase in other operating expenses mainly related to higher professional services costs. The increase in depreciation and impairment from €8.7 million in 2024 to €13.0 million in 2025 is mainly due to the impairment of the contract costs.

Impairment of the cell therapy activities is a result of our previously announced strategic alternatives process for the cell therapy activities whereby we assessed the cell therapy activities associated assets’ recoverable amount in accordance with IAS 36. The recoverable amount was estimated lower than the assets’ carrying value. As a result, we recognized an impairment loss of €228.1 million, thereby aligning the cell therapy assets’ book value with our strategic decision to wind down the cell therapy activities, which resulted in a full impairment of both the associated goodwill and intangible assets and a partial impairment of property, plant and equipment.

Other operating income (€53.5 million in 2025 compared to €40.8 million in 2024) increased due to the fair value adjustment of the contingent consideration payable to the former owners of CellPoint of €21.8 million, partly offset by lower grant and R&D incentives income.

Net financial income in 2025 amounted to €5.8 million, compared to net financial income of €185.3 million in 2024. Fair value adjustments and net currency exchange results amounted to a negative amount of €39.4 million in 2025, compared to fair value adjustments and net currency exchange gains in 2024 of €95.8 million. They were primarily attributable to €18.3 million of negative changes in fair value of current financial investments, and to €44.8 million of unrealized currency exchange losses on cash and cash equivalents and current financial investments at amortized cost in U.S. dollars, partly offset by a positive effect of €22.7 million as consequence of the settlement of a hedging instrument.

Net interest income amounted to €45.3 million in 2025 as compared to €88.5 million of net interest income in 2024 due to a decrease in the interest rates and a shift from investments in term deposits generating financial income to investments in money market funds generating fair value changes. Fair value gains and interest income derived from cash, cash equivalents and financial investments excluding any currency exchange results amounted to €103.0 million in 2025 (compared to €140.4 million in 2024).

We had €18.6 million of tax income in 2025 (as compared to €1.8 million tax income in 2024). The increase is mainly explained by the reversal of the deferred tax liabilities linked to capitalized intangible assets related to the cell therapy activities, as we recorded an impairment on these intangible assets. We did not incur a current tax liability in 2025 because the profit of the year is fully absorbed by current year tax deductions.

We reported a net profit from continuing operations in 2025 of €319.5 million, compared to a net loss from continuing operations of €1.3 million in 2024.

As a consequence of the sale of our Jyseleca® (filgotinib) business to Alfasigma, the revenues and costs related to Jyseleca® for the years 2025 and 2024 are presented separately from our results of the continuing operations on the line “Net profit from discontinued operations, net of tax” in our consolidated income statement. Net profit of discontinued operations attributable to the Jyseleca® business amounted to €1.4 million in 2025, compared to €75.4 million net profit of discontinued operations in 2024. The net result for discontinued operations included €11.7 million of R&D expenses primarily related to the final settlement of disputed expenses with Alfasigma, and €11.9 million of other operating income related to a fair value adjustment of the contingent consideration receivable from Alfasigma as a consequence of an adjusted sales forecast. The operating profit from discontinued operations in 2024, was mainly related to the gain on the sale of the Jyseleca® business to Alfasigma of €52.5 million.

We reported a net profit in 2025 of €320.9 million, compared to a net profit of €74.1 million in 2024.

Cash, Cash Equivalents and Financial Investments

Financial investments and cash and cash equivalents totaled €2,998.0 million on December 31, 2025 as compared to €3,317.8 million on December 31, 2024. The cash and cash equivalents and financial investments at December 31, 2025, included $2,159.0 million held in U.S. dollars ($726.9 million on December 31, 2024) which could generate foreign exchange gains or losses in the financial results in accordance with the fluctuation of the EUR/U.S. dollar exchange rate as our functional currency is EUR (translated at a rate of 1.175 €/$ at December 31, 2025).

Total net decrease in cash and cash equivalents and financial investments amounted to €319.8 million in 2025, compared to a net decrease of €366.7 million in 2024. This net decrease was composed of (i) €189.1 million of operational cash burn including cash in of €111.7 million related to the return on financial investments, (ii) €128.3 million negative exchange rate differences, positive changes in fair value of current financial investments, and variation in accrued interest income, (iii) €20.0 million convertible loan issued to a third party, and (iv) €17.6 million of net cash in related to the sale/acquisition of subsidiaries.

Operational cash burn (or operational cash flow if this liquidity measure is positive) is a financial measure that is not calculated in accordance with IFRS. Operational cash burn/cash flow is defined as the decrease or increase in our cash and cash equivalents (excluding the effect of exchange rate differences on cash and cash equivalents), minus:

• the net proceeds, if any, from share capital and share premium increases included in the net cash flow generated from/used in (–) financing activities

• the net proceeds or cash used, if any, in acquisitions or disposals of businesses, the acquisition of financial assets held at fair value; the movement in restricted cash and the net purchase/sale of financial investments, if any, the loans and advances given to third parties, if any, included in the net cash flow generated from/used in (–) investing activities

• the cash used for other liabilities related to the acquisition or disposal of businesses, if any, included in the net cash flow generated from/used in (–) operating activities.

This alternative liquidity measure is, in our view, an important metric for a biotech company in the development stage.

The following table presents a reconciliation of operational cash burn, to the closest IFRS measures, for each of the periods indicated:

Financial Guidance

In connection with the wind-down of the cell therapy activities, we expect an operating cash outflow of up to €50 million in Q1 2026, as well as one-time restructuring cash impact of €125 to €175 million in 2026, a reduction of €25 million compared to the prior guidance of €150 million to €200 million. In addition, we anticipate cash costs of approximately €35 million to €40 million for final implementation of the restructuring announced in January 2025. Costs related to the ongoing TYK2 program, including completion of the Phase 2 clinical trials in DM and SLE, as well as ongoing support to advance the program toward Phase 3 development, are expected to be up to €40 million in 2026.

We expect to be cash flow neutral to positive by the end of 2026, excluding any business development activities or currency fluctuations. We anticipate we will have approximately €2.775 billion to €2.850 billion in cash and financial investments, at December 31, 2026, based on a constant EUR/U.S. dollar exchange rate of 1.175 €/$ at December 31, 2025.

Going Concern Statement

The consolidated balance sheet shows €210.6 million accumulated result at December 31, 2025. We realized a consolidated net profit of €320.9 million for the year ended December 31, 2025. Our existing financial investments and cash and cash equivalents of €2,998.0 million at December 31, 2025 will enable us to fund our operating expenses and capital expenditure requirements for at least the next 12 months. The Board of Directors is also of the opinion that additional financing could be obtained, if required. Taking this into account, as well as the ongoing strategic redirection of the Company, the Board of Directors is of the opinion that it can submit the financial statements on a going concern basis. Whilst the financial investments and cash and cash equivalents are sufficient at least for the next 12 months, the Board of Directors points out that if the ongoing transformation evolves well, we may seek additional funding to be able to execute other business opportunities.