“Drug development requires both patience and perseverance, but also the ability to manage setbacks when results do not meet expectations. We entered the fall with high expectations ahead of two important clinical milestones for Umecrine Cognition and Modus Therapeutics. Unfortunately, Umecrine Cognition’s phase 1b/2a study did not meet its primary endpoint, while patient recruitment in Modus Therapeutics’ phase 2a study has been temporarily paused, with the implications still uncertain. Both developments mean that important clinical value drivers have either failed to materialize or been delayed, affecting the conditions for KDventures’ continued development.
This is naturally disappointing for both us and our shareholders. At the same time, we still have several promising projects and assets in our portfolio. In light of the changed circumstances, it is now important that we take an open-minded approach to reviewing both our holdings and KDventures’ own operations, and carefully evaluate the opportunities and strategic alternatives available to us.
The changed circumstances call for clear priorities and well-informed decisions. Our focus is to act responsibly and safeguard the long-term interests of the company and its shareholders”, says Viktor Drvota, CEO, KDventures.

Significant events during the third quarter

• The portfolio company PharmNovo completed a capital raise of approximately SEK 39 million, with participation from external investors. In connection with the transaction, KDventures' book value of its holding in PharmNovo was adjusted down by SEK 13.1 million to SEK 5 million during the second quarter 2026 (July 2026).
• The liquidation of the company KCIF Co-Investment Fund KB, jointly owned by the EIF (European Investment Fund), has begun. The remaining holding in OssDsign, which was owned by KCIF Co-Investment Fund KB, has been divested. After the divestment, KDventures does not have any ownership interest in OssDsign, either directly or indirectly (August 2026).
• The portfolio company Modus Therapeutics carried out a directed issue of MSEK 7.6. The net proceeds will finance the company’s development plan for the drug candidate sevuparin into 2027 (September 2026).
• The portfolio company Umecrine Cognition received two Notices of Allowance from the United States Patent and Trademark Office (USPTO) relating to patent applications for two second-generation compounds within the same drug class, GAMSA, as the company’s clinical drug candidate golexanolone (September 2026).
• The portfolio company Umecrine Cognition reported that the last patient has completed the final follow-up visit in the company’s phase 1b/2a study of golexanolone in patients with primary biliary cholangitis (PBC). The study evaluates the effect of golexanolone on fatigue and cognitive symptoms (September 2026).
• The portfolio company AnaCardio entered into a EUR 62.5 million Series B financing. The financing is co-led by Novo Holdings and the Ljungström family office and will fund the continued clinical development of the drug candidate AC01 through phase 2b (September 2026).

Significant post-period events

• The portfolio company Umecrine Cognition participated in The Michael J. Fox Foundation for Parkinson’s Research (MJFF) Parkinson’s Disease Therapeutics Conference (PDTC) 2026. In connection with the conference, Umecrine Cognition has also been invited to participate in an invitation-only pre-conference showcase featuring companies from MJFF’s therapeutics funding portfolio (October 2026).
• The portfolio company Modus Therapeutics decided, as a precautionary measure, to temporarily pause enrollment in Part 2 of the ongoing phase 2a study of sevuparin in chronic kidney disease (CKD) with anemia. The decision was made after a serious adverse event in a patient treated with sevuparin was reported to the relevant regulatory authorities as a suspected unexpected, serious adverse reaction (SUSAR), and following a review with the study’s safety committee. The pause is not the result of a regulatory decision. Modus Therapeutics’ preliminary assessment is that the pause will shift the proof-of-concept readout from around the turn of the year 2026/2027, as previously communicated, to the first quarter of 2027 (October 2026).
• KDventures announced that John Öhd is transitioning from his role as Chief Scientific Officer (CSO) to Senior Advisor at KDventures. Going forward, John will focus his operational involvement on his role as Chief Executive Officer of Modus Therapeutics AB (publ), one of KDventures’ portfolio companies (October 2026).
• The portfolio company Modus Therapeutics' phase 1b SEVUSMART study of the drug candidate sevuparin in children with severe malaria was published in the scientific journal Nature Communications following independent peer review. The study was conducted under the leadership of Professor Kathryn Maitland at Imperial College London, together with researchers from the SMAART consortium (October 2026).
• The portfolio company Biosergen completed in October its merger with Flerie AB, which meant that the holding in Biosergen was replaced by shares in Flerie AB (October 2026).
• The portfolio company Umecrine Cognition reported topline results from the second part of its phase 1b/2a clinical study of golexanolone in patients with primary biliary cholangitis (PBC) who experience clinically significant fatigue and cognitive symptoms. Golexanolone did not demonstrate a statistically significant improvement versus placebo in the prespecified, hierarchically tested PBC-40 cognition endpoint, and no treatment benefit was demonstrated in the supportive fatigue analysis. KDventures will adjust the carrying value of its holding in Umecrine Cognition from SEK 226.4 million to SEK 0 million, corresponding to a write-down of 100 percent. The write-down will have a negative impact on KDventures’ net asset value of SEK 226.4 million, equivalent to approximately SEK 0.30 per share in the fourth quarter of 2026 (October 2026).
• The Portfolio company SVF Vaccines entered into a research collaboration with Orexo AB (publ), a Swedish pharmaceutical company, to investigate whether Orexo’s proprietary AmorphOX® technology can be used to develop stable powder-based formulations of lipid nanoparticle-encapsulated messenger RNA (LNP-mRNA) vaccines (November 2026).

Financial update

• The net profit/loss for the third quarter was SEK -28.2 million (SEK -66.8 million in the third quarter of 2025). Earnings per share totaled SEK -0.04 (SEK -0.25 in the third quarter of 2025). Net profit/loss for the period January – September amounted to SEK -513.3 (-154.3) million
• The Change in fair value in the income statement of shares in portfolio companies for the third quarter amounted to SEK -25.2 million (SEK -65.4 million in the third quarter of 2025). A main reason is the valuation of AnaCardio which amounts to SEK -30.0 million, following the conclusion of a financing agreement that also includes new investors. This decline is partially offset by a positive exchange-rate effect in the valuation of Dilafor (the majority of which is attributable to KDev Investments, which became a wholly owned subsidiary in June 2026). Change in fair value of shares in portfolio companies for the period January – September amounted to SEK -483.6 (-80.3) million.
• The fair value of the portfolio was SEK 601.3 million at the end of September 2026, corresponding to a decrease of SEK 24.5 million from SEK 625.8 million at the end of the previous quarter.
• Net asset value amounted to SEK 647.4million at the end of September 2026 (SEK 1,085.4 million at the end of September 2025). The decrease in net asset value compared to the same period 2025 is mainly due to the valuation of Umecrine Cognition after a capital round that included new owners and to the more conservative valuation of Dilafor after KDventures' acquisition of Rosetta's shares in the jointly owned company KDev Investments. The decrease is partly offset by the cancellation of the potential dividend to Rosetta, which increases the Fair value of the part of the portfolio held in the now wholly owned subsidiary KDev Investments.
• The net asset value per share amounted to SEK 0.85 at the end of September 2026 (SEK 4.0 at the end of September 2025). The decrease in net asset value per share compared to the same period in 2025 is due to both the decreased net asset value and the fact that the number of shares in KDventures after the rights issue in February 2026 and the directed issue in June 2026 increased by 181 percent.
• Net sales totaled SEK 0.1 million during the third quarter of 2026 (SEK 0.3 million during the third quarter of 2025). Net sales for the period January – September totaled SEK 0.8 (1.2) million.
• KDventures invested a total of SEK 1.2 million in portfolio companies during the third quarter of 2026, (SEK 28.4 million in the third quarter of 2025). Third quarter 2026 investments in portfolio companies by KDventures and other specialized life sciences investors totaled SEK 48.8 million (SEK 63.1 million in the third quarter of 2025).
• Cash and cash equivalents (including short-term investments) decreased by SEK 8.5 million during the third quarter, an effect of a loan to a portfolio company and operating activities. Cash and cash equivalents and short-term investments amounted to SEK 42.9 million on 30 September 2026 (SEK 44.5 million on 30 September 2025).

The interim Report for KDventures AB for the period January-September 2026 is available as a PDF at www.kd-ventures.com.