Fosun Aribio option deal encouraging for ACW

Thanks for the questions about this received over the past few days on InvestorHub. Please see the related video update that explains more about Actinogen’s view of the Aribio AR1001 program, based on publicly available information. Key takeaways are:

·      Fosun’s payment for the option to marketing rights for major global markets demonstrates continued strategic interest in differentiated oral Alzheimer’s therapies, even for programs with meaningful development risk, although the structure and economics reflect the specific history between the two companies (Fosun already owned the rights to the Chinese territory)

·       The probability of success of the AR1001 phase 3 is not high in my view, given 5 key factors that increase risk:

• Clearly negative phase 2 data over 26 weeks – see https://pmc.ncbi.nlm.nih.gov/articles/PMC12501329/pdf/main.pdf (Actinogen saw positive CDR-SB endpoint data in high pTau181 patients)

• No pTau entry criterion is used in phase 3, despite posthoc subgroup data in phase 2 raising the hypothesis of some clinical efficacy in high pTau181 patients (Actinogen uses higher pTau181 as an entry criterion)

• Change in patient population from mid-stage Alzheimer’s patients in phase 2 to early-stage in phase 3 - early stage patients will tend to have lower pTau levels and progress more slowly (Actinogen focus is on the same, mild-moderate, later-stage population)

• Change in primary phase 3 endpoint to CDR-SB which was not previously studied

• Reliance on risky phase 2 biomarker data that have been recently invalidated as a predictor of clinical success by the semaglutide phase 3 failure (Actinogen follows its clinical data and the science of cortisol)

·       If the Aribio trial surprises, it would great news for patients with early-stage disease because that market segment is currently only served by the anti-amyloid antibodies, which have very modest efficacy, safety concerns and are expensive

·       Actinogen is concentrating its Xanamem program on later stage patients with mild to moderate dementia, which is a larger and separate market segment

Steve Gourlay, CEO