The following interim condensed consolidated financial statements have been approved by the Executive Board of the Company on September 13, 2023, and have been subject to a limited review by our Statutory Auditors. They have been examined by the Supervisory Board of the Company on September 13, 2023. INNATE PHARMA SA HALF-YEAR FINANCIAL REPORT JUNE 30, 2023 INNATE PHARMA S.A. French société anonyme governed by an Executive Board and a Supervisory Board with a share capital of 4,026,535.85 euros composed of ...

Disclaimer on Forward-Looking Information and Risk Factors This document contains forward-looking statements. The use of certain words, including "believe," "potential," "expect" and "will" and similar expressions, is intended to i statements. Although the Company believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to various risks and uncertairi cause the Company's actual results or financial condition to differ materially from those anticipated. Thes ...

Financial Data and Key Metrics Changes - The company ended Q1 2023 with a strong cash position, providing a runway into mid-2025, indicating effective resource management [16][44]. - The financial outlook remains stable with no significant changes in cash burn expected compared to previous communications [44]. Business Line Data and Key Metrics Changes - The lead proprietary asset, lacutamab, is in development for T-cell lymphoma, with final readouts expected in the second half of 2023 [3][54]. - The company is actively pursuing a fast-to-market strategy for lacutamab, which has received U.S. Fast Track and EU PRIME designations [54][56]. - The ANKET platform continues to expand, with multiple candidates in development, including IPH6501 targeting CD20, which is heading towards an IND this year [69][95]. Market Data and Key Metrics Changes - The company is focusing on niche markets such as Sézary syndrome and mycosis fungoides, with encouraging preliminary data from Phase II trials [86][64]. - The partnership with AstraZeneca for monalizumab is ongoing, with updates expected from the PACIFIC-9 study evaluating combinations in lung cancer [57][89]. Company Strategy and Development Direction - The company aims to maximize the ANKET platform and build strategic partnerships in oncology and beyond, as demonstrated by the recent deal with Takeda [42][94]. - The strategic priorities include advancing lacutamab, maximizing the ANKET platform, and continuing to build partnerships [42][76]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing regulatory discussions and the potential for lacutamab to meet significant unmet needs in aggressive disorders [34][18]. - The company is encouraged by the responses observed in clinical trials and is committed to further interactions with regulators [7][56]. Other Important Information - The recent deal with Takeda includes an upfront payment of $5 million and potential milestones totaling up to $410 million, showcasing the company's ability to monetize its pipeline [94]. - The company is leveraging its antibody engineering capabilities to develop novel molecules, focusing on both proprietary and partnered assets [61][85]. Q&A Session Summary Question: Regulatory strategy for lacutamab - Management confirmed ongoing discussions with the FDA regarding the regulatory strategy for lacutamab, emphasizing alignment with FDA guidelines [18]. Question: Rationale for using ADC in Celiac disease - Management stated that they are not experts in Celiac disease and referred to Takeda for more details on the rationale behind the ADC development [25]. Question: Context for upcoming oral presentation of CD123 ANKET at ASCO - Management indicated that the Phase I trial started in December 2021, focusing on AML and MDS, but could not disclose specific patient numbers or data points due to partnership agreements [26]. Question: Additional work needed for CD20-targeted ANKET to reach IND - Management confirmed that IND filing for the CD20-targeted ANKET is planned for this year, with the start of Phase I trials also expected in 2023 [31][32]. Question: Expected data from PTCL studies - Management highlighted that PTCL is an aggressive disorder with high unmet needs, and response rates from various agents typically range from 25% to 40% [34].

Financial Performance - Revenue for 2022 was €57,674,000, a decrease of 76.5% from €69,773,000 in 2020[32] - Operating loss for 2022 was €57,425,000, compared to an operating income of €1,079,000 in 2020[32] - Net loss from continuing operations in 2022 was €57,972,000, compared to a net loss of €829,000 in 2020[32] - Total assets decreased to €207,863,000 in 2022 from €307,423,000 in 2020, a decline of 32.4%[33] - Total shareholders' equity fell to €54,151,000 in 2022, down 65.2% from €155,976,000 in 2020[33] - Innate Pharma incurred net losses of €(58.1) million and €(52.8) million for the years ended December 31, 2022 and 2021, respectively[162] - The company expects to incur significant expenses and operating losses for the foreseeable future due to ongoing research and development activities[162] - As of December 31, 2022, Innate Pharma had cash, cash equivalents, short-term investments, and non-current financial assets totaling €136.6 million, which is expected to fund operations for the next two years[166] - The company anticipates that expenses will increase substantially as it advances its product candidates through clinical trials and regulatory approvals[166] Product Development and Clinical Trials - The company is focusing on developing product candidates in immuno-oncology, with several in clinical trials[38] - Monalizumab is currently being investigated in multiple Phase 1, 2, and 3 clinical trials under a co-development agreement with AstraZeneca[53] - The company has agreements with AstraZeneca and Sanofi for the development of several product candidates, indicating a collaborative approach to R&D[51] - The company returned Lumoxiti commercial rights to AstraZeneca to refocus on its R&D portfolio[37] - The Company has not yet completed clinical trials for product candidates including monalizumab, lacutamab, and others, and there is no assurance they will gain regulatory approval or become commercially viable[54] - The Company is developing a broad pipeline of product candidates based on its ANKET technology, which includes tri-specific and tetra-specific antibodies, with IPH6101/SAR'579 currently in Phase 1 clinical trials[59] - Patient enrollment for clinical trials is critical and may be delayed due to various factors, including the limited patient population for rare diseases like cutaneous T-cell lymphoma[64] - The Company competes with larger pharmaceutical companies that have significantly greater resources and experience in drug development and regulatory approvals[68] Regulatory Challenges - The marketing approval process for the Company's product candidates is complex and may prevent the commercialization of some or all candidates, materially impairing revenue generation[71] - The Company has never submitted a product candidate for marketing approval in the United States or the European Union, which poses additional challenges[74] - Regulatory processes for product candidates are complex and may lead to delays or increased costs in development, testing, and marketing[79] - The company faces significant risks in obtaining marketing authorization in jurisdictions outside the United States and Europe, which could limit market potential[83] - The company must navigate varying regulatory requirements across different countries, which complicates the approval process[83] - Regulatory authorities may require additional testing or impose new requirements that could delay product launches[82] - The evolving nature of regulatory requirements may result in unexpected costs and challenges in obtaining approvals[79] Financial Obligations and Funding - The company may need to raise additional funding to complete the development and commercialization of its product candidates, which may not be available on acceptable terms[165] - The company has accumulated tax loss carryforwards of €466.2 million as of December 31, 2022, with limitations on their use under applicable French law[185] - The company received cash payments from collaboration agreements amounting to €56.9 million, €15.3 million, and €57.8 million for the years ended December 31, 2022, 2021, and 2020, respectively[177] - The company benefits from the Research Tax Credit, which represented €7.9 million, €10.3 million, and €13.1 million for the years ended December 31, 2022, 2021, and 2020, respectively[180] - The company may be eligible for approximately $3.6 billion in future contingent payments from existing collaboration agreements, dependent on the achievement of specified milestones[175] Compliance and Legal Risks - The company is subject to various anti-corruption laws, including the FCPA, which could lead to significant penalties if compliance is not maintained[125] - Compliance with healthcare laws and regulations is essential, as violations could result in substantial penalties, reputational harm, and operational disruptions[131] - The Company faces potential increased costs and operational risks due to the complexities of compliance with various data protection regulations in the European Union[136] - The company has implemented a new Enterprise Resource Planning (ERP) system since August 1, 2020, to enhance the reliability of its financial information[197] - Despite improvements, management concluded that a material weakness still exists, primarily related to the classification and presentation of consolidated financial statements[198] - The company has initiated corrective actions to address identified control deficiencies, but there is no assurance that these measures will prevent future material weaknesses[199] Manufacturing and Supply Chain Risks - The Company relies on third-party manufacturers for all product candidates, lacking its own manufacturing capabilities, which introduces risks related to regulatory compliance and product quality[137] - Manufacturing issues previously led to a decision to limit patient enrollment in the Phase 1 clinical trial of lacutamab to ensure drug supply[139] - The transfer of manufacturing to another contract organization took several months and incurred additional costs, delaying patient enrollment in clinical trials[141] - The Company is dependent on a limited number of suppliers for key components, which poses risks if these suppliers fail to remain operational or compliant[143] - Non-compliance with regulatory standards by third-party suppliers could result in sanctions, including fines and delays in product approvals[146] Market and Competitive Environment - The company faces significant risks in product development, including regulatory approval and market commercialization challenges[36] - The company faces potential penalties if commercial prices increase faster than the consumer price index, affecting pricing strategies[101] - Legislative changes may increase Medicaid rebate liabilities and expand eligibility criteria, impacting the company's financial obligations[99] - The company anticipates ongoing pricing pressures that may hinder the ability to sell approved products at acceptable prices[105] - International operations may be adversely affected by geopolitical instability, impacting sales and financial conditions[114] Employee and Operational Risks - The company faces intense competition for qualified scientific and medical personnel, which is crucial for its success in clinical trials and product development[214] - Employee misconduct poses risks, including violations of regulatory standards, which could harm Innate's business and reputation[227] - The company has subscribed to cyber and fraud insurance, but it may be insufficient to cover potential financial and reputational impacts from system disruptions[203] - The company has obtained liability insurance coverage for its clinical trials, limited to €10 million per year[224] - A successful product liability claim exceeding insurance coverage could significantly impact Innate's earnings and capital resources[226]

Reporting Information - The report is filed under Form 6-K for the month of April 2023[2] - The registrant has indicated it will file annual reports under Form 20-F[2] Company Information - Innate Pharma S.A. is based in Marseille, France, with a principal executive office address at 117 Avenue de Luminy—BP 30191, 13009 Marseille[2] Financial Updates - The report includes a press release dated April 6, 2023, which may contain key financial updates[3] Signatory Information - The report is signed by Mondher Mahjoubi, Chairman of the Executive Board and Chief Executive Officer[7]

Europe Demonstrates better anti-tumor efficacy than approved benchmark antibodies in preclinical tumor models. | --- | --- | --- | --- | --- | --- | --- | --- | |------------------|----------------------|--------|-----------------------------------|----------------|-------|-----------------------|----------------| | | | | | | | | | | | IPH6101/SAR'579 | | IPH6401/SAR'514 | IPH62 | | OPTION | | | Ongoing programs | CD123 Phase 1 in AML | | Progression towards IND | B7-H3 Research | | 2 undisclosed targets | ...

Financial Data and Key Metrics Changes - The revenue and other income amounted to €57.7 million, primarily from collaboration and licensing agreements and governmental funding [70] - Operating expenses were €74.1 million, a 1% increase compared to 2021, while R&D expenses rose by 10% to €51.7 million due to clinical and nonclinical research [71] - Cash and cash equivalents stood at €136.6 million as of December 31, 2022, with an additional €25 million payment from Sanofi expected to be added [51][52] Business Line Data and Key Metrics Changes - The company is focusing on its lead product candidate, lacutamab, which is in development for T cell lymphoma, with final readouts expected in the second half of 2023 [9][21] - The ANKET platform continues to progress, with Sanofi signing a second deal, and multiple programs in early development [11][39] - Monalizumab is advancing in Phase 3 trials for lung cancer, with AstraZeneca leading the efforts [12][25] Market Data and Key Metrics Changes - The company is expanding its presence in the NK cell space, leveraging its antibody engineering capabilities to develop innovative molecules [18][36] - The partnership with AstraZeneca for monalizumab is expected to yield significant milestones, with a total package of up to $1.275 billion [34] Company Strategy and Development Direction - The company aims to create near-term value through its proprietary product candidate lacutamab and to build a sustainable foundation through various partnerships [8][19] - The focus remains on maximizing the value of its products while advancing its R&D engine to create a sustainable business [10][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress in clinical trials and partnerships, highlighting the importance of upcoming data readouts over the next 24 months [44][93] - The company is strategically managing resources to ensure continued investment in its vision and pipeline [40][55] Other Important Information - The company has received Fast Track designation for lacutamab in the U.S. and PRIME designation in the EU, indicating regulatory support for its development [29] - The company is exploring ADC technology alongside its ANKET platform, indicating a diversified approach to drug development [63] Q&A Session Summary Question: Can you elaborate on the registrational pathway for mycosis fungoides? - Management indicated that they are keeping options open for a complete registration trial on mycosis fungoides or a combination with Sézary syndrome, ensuring alignment with regulators [58][60] Question: Where does the linker payload technology for the ADC program come from? - The company confirmed that they have selected a development candidate for the ADC program IPH4501 and will provide updates later in the year [61] Question: What changes have occurred in the guidance for outcomes in CTCL? - Management noted that there have been clarifications in the guidance, and they will provide more details in upcoming calls [64][79] Question: Can you provide more details on the inclusion and exclusion criteria for the COMBO study? - The monotherapy trial is focused on KIR3DL2 positive patients with no maximum lines of therapy, while the COMBO study includes a comparator arm with chemotherapy [82][96] Question: How should we think about costs in 2023? - Management indicated that the cash burn for 2023 will be in the same range or slightly lower than previous years, allowing for funding of new studies without increasing costs [101]

[2022 Annual Report Overview](index=1&type=section&id=Innate%20Pharma%20Reports%20Full%20Year%202022%281%29%20Financial%20Results%20and%20Business%20Update) Innate Pharma advanced its clinical pipeline and maintained a strong financial position in 2022, marked by key partnerships and milestone payments [2022 Business and Financial Highlights](index=1&type=section&id=2022%20Business%20and%20Financial%20Highlights) In 2022, Innate Pharma advanced its clinical and preclinical pipeline, notably expanding its ANKET® platform partnership with Sanofi, which included a €25 million payment. The company reported encouraging efficacy data for lacutamab and received a $50 million milestone payment from AstraZeneca for monalizumab. The company maintained a solid financial position with a cash runway anticipated into mid-2025 - Expanded partnership with Sanofi for NK cell engager therapeutics, including the B7-H3 ANKET® program, resulting in a **€25 million payment**[3](index=3&type=chunk)[5](index=5&type=chunk) - Reported encouraging preliminary Phase 2 efficacy data for lacutamab in advanced cutaneous T cell lymphoma (Sézary syndrome and mycosis fungoides)[3](index=3&type=chunk)[5](index=5&type=chunk) - Received a **$50 million milestone payment** from AstraZeneca after the first patient was dosed in the monalizumab PACIFIC-9 Phase 3 lung cancer trial[5](index=5&type=chunk)[3](index=3&type=chunk) - Cash position was **€136.6 million** as of December 31, 2022, with an anticipated cash runway into mid-2025. This figure does not include the **€25 million payment** from Sanofi received post-period[5](index=5&type=chunk) [Pipeline Update](index=2&type=section&id=Pipeline%20highlights%3A) Innate Pharma's pipeline progressed with key clinical trials for lacutamab and ANKET® programs, alongside strategic advancements in partnered assets [Lacutamab (IPH4102)](index=2&type=section&id=Lacutamab%20%28IPH4102%2C%20anti-KIR3DL2%20antibody%29%3A) Lacutamab showed promising clinical activity and a favorable safety profile in advanced cutaneous T-cell lymphomas (CTCL). Final data from the TELLOMAK Phase 2 trial for mycosis fungoides (MF) and Sézary syndrome are expected in H2 2023. Additionally, two trials are ongoing for peripheral T-cell lymphoma (PTCL), with initial data also expected in H2 2023 - In the TELLOMAK Phase 2 trial, preliminary data for mycosis fungoides (MF) patients showed a global objective response rate (ORR) of **28.6%**[8](index=8&type=chunk) - For heavily pretreated Sézary syndrome patients, lacutamab demonstrated a global ORR of **21.6%** in the ITT population, with a **37.8% ORR** in blood and **35.1% ORR** in skin[8](index=8&type=chunk) - Two trials are ongoing for relapsed/refractory peripheral T-cell lymphoma (PTCL), a Phase 1b monotherapy trial and the Phase 2 KILT combination trial, with initial data for both expected in H2 2023[8](index=8&type=chunk) [ANKET® Platform](index=2&type=section&id=ANKET%C2%AE%20%28Antibody-based%20NK%20cell%20Engager%20Therapeutics%29%3A) The proprietary ANKET® platform is advancing with four public candidates. The partnership with Sanofi was expanded to include the B7-H3 targeted program (IPH62) and two additional targets, triggering a **€25 million** upfront payment. Sanofi is also progressing IPH6101 and IPH6401. Innate's proprietary tetra-specific ANKET®, IPH6501, is progressing towards a Phase 1 trial in 2023 - Sanofi licensed IPH62 (B7-H3 targeted) and has options for two more targets. Innate received a **€25 million upfront payment** and is eligible for up to **€1.35 billion** in milestones plus royalties[12](index=12&type=chunk) - Sanofi's decision to advance IPH6401 (BCMA-targeting) into IND-enabling studies triggered a **€3 million milestone payment** to Innate[12](index=12&type=chunk) - The proprietary CD20-targeted tetra-specific ANKET®, IPH6501, is on track for a Phase 1 clinical trial in 2023[10](index=10&type=chunk) [Monalizumab (Partnered with AstraZeneca)](index=3&type=section&id=Monalizumab%20%28anti-NKG2A%20antibody%29%2C%20partnered%20with%20AstraZeneca%3A) Monalizumab's development is focused on non-small cell lung cancer (NSCLC). The PACIFIC-9 Phase 3 trial in Stage III NSCLC is ongoing, triggering a **$50 million** milestone payment from AstraZeneca. However, the INTERLINK-1 Phase 3 study in head and neck cancer was discontinued due to futility - A **$50 million milestone payment** was received from AstraZeneca for dosing the first patient in the PACIFIC-9 Phase 3 trial for unresectable, Stage III NSCLC[13](index=13&type=chunk) - The Phase 3 INTERLINK-1 study in head and neck cancer was discontinued after a planned futility analysis did not meet the pre-defined efficacy threshold[13](index=13&type=chunk) - Phase 2 COAST trial results showed monalizumab with durvalumab reduced the risk of disease progression by **58%** (HR of **0.42**) compared to durvalumab alone in Stage III NSCLC[13](index=13&type=chunk) [Other Pipeline Assets](index=4&type=section&id=Other%20Pipeline%20Assets) The company is advancing other assets through partnerships and internal development. The MATISSE Phase 2 trial for IPH5201 (anti-CD39) in lung cancer has started, triggering a **$5 million** milestone from AstraZeneca. The Phase 1 trial for proprietary IPH5301 (anti-CD73) is ongoing. Conversely, development of avdoralimab (anti-C5aR1) in bullous pemphigoid has been discontinued - **IPH5201 (anti-CD39):** The MATISSE Phase 2 trial in neoadjuvant lung cancer has started, triggering a **$5 million milestone payment** from partner AstraZeneca[14](index=14&type=chunk)[17](index=17&type=chunk) - **IPH5301 (anti-CD73):** The investigator-sponsored CHANCES Phase 1 trial is ongoing, evaluating IPH5301 in combination therapy for HER2+ cancer patients[15](index=15&type=chunk) - **Avdoralimab (anti-C5aR1):** The company has discontinued the development of avdoralimab in bullous pemphigoid and will evaluate out-licensing options[16](index=16&type=chunk) [Corporate and Preclinical Update](index=5&type=section&id=Corporate%20Update%3A) Innate Pharma focused on advancing its ANKET® platform and ADCs, regained rights to preclinical programs, and made key corporate appointments in 2022 [Preclinical and Corporate Developments](index=5&type=section&id=Preclinical%20and%20Corporate%20Developments) Innate is focused on developing novel cancer treatments through its ANKET® platform and exploring Antibody Drug Conjugates (ADCs). The company regained full rights to four preclinical programs after AstraZeneca declined its option. Corporate actions in 2022 included establishing a **$75 million** At-The-Market (ATM) program, which remains unused, and making key appointments to the Supervisory Board and Leadership Team - Innate regained full rights to four preclinical molecules after AstraZeneca did not exercise its option under the "Future Programs Option Agreement"[19](index=19&type=chunk) - An At-The-Market (ATM) program was established to potentially offer and sell up to **$75 million** in American Depositary Shares (ADS), with the full amount remaining available as of year-end 2022[19](index=19&type=chunk) - Key leadership changes included the appointment of Dr. Sally Bennett to the Supervisory Board and two new members to the Leadership Team in January 2023[19](index=19&type=chunk) [Financial Performance](index=6&type=section&id=Financial%20highlights%20for%202022%3A) In 2022, Innate Pharma saw significant revenue growth from collaborations but reported an increased net loss due to a substantial non-cash impairment charge [Financial Summary](index=6&type=section&id=Financial%20Summary) For the year ended December 31, 2022, Innate Pharma's revenue more than doubled to **€57.7 million**, driven by collaboration agreements. However, the company recorded a net loss of **€58.1 million**, an increase from 2021, primarily due to a significant non-cash impairment charge of **€41.0 million** related to the discontinuation of the avdoralimab program. The company ended the year with a cash position of **€136.6 million** Financial Metric (in thousands of euros) | Financial Metric (in thousands of euros) | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Income Statement** | | | | Revenue and other income | 57,674 | 24,703 | | Total operating expenses | (74,099) | (72,528) | | Impairment of intangible asset | (41,000) | — | | Operating income (loss) | (57,425) | (47,825) | | Net income (loss) | (58,103) | (52,809) | | Basic loss per share (€) | (0.73) | (0.66) | | **Balance Sheet** | | | | Cash, cash equivalents and financial assets | 136,604 | 159,714 | | Total assets | 207,863 | 267,496 | | Shareholders' equity | 54,151 | 107,440 | | Total financial debt | 42,251 | 44,251 | - A significant non-cash impairment charge of **€41.0 million** was recorded for the avdoralimab intangible asset, following the decision to halt its development[22](index=22&type=chunk)[49](index=49&type=chunk) - Cash position stood at **€136.6 million** at year-end. This does not include a **€25.0 million payment** from Sanofi received in March 2023[22](index=22&type=chunk)[57](index=57&type=chunk) [Revenue Analysis](index=13&type=section&id=Revenue%20and%20other%20income) Total revenue and other income increased significantly to **€57.7 million** in 2022 from **€24.7 million** in 2021, primarily driven by a more than fourfold increase in collaboration and licensing agreements, partially offset by decreased government funding for research Revenue Source (in thousands of euros) | Revenue Source (in thousands of euros) | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Revenue from collaboration and licensing agreements | 49,580 | 12,112 | | Government financing for research expenditures | 8,035 | 12,591 | | **Total Revenue and other income** | **57,674** | **24,703** | - Collaboration revenue growth was driven by several key events: Monalizumab: **€14.9 million** increase due to a milestone from the PACIFIC-9 trial; IPH5201: **€4.7 million** recognized from a milestone payment; AstraZeneca Preclinical Programs: **€17.4 million** recognized after AstraZeneca declined its license option; Sanofi: **€3.0 million** milestone payment for advancing IPH6401/SAR'514[37](index=37&type=chunk) - Government funding for research decreased by **€4.6 million** (**36.2%**), mainly due to a reduction in the research tax credit from lower eligible expenses and a provision following a tax inspection[38](index=38&type=chunk) [Operating Expenses Analysis](index=14&type=section&id=Operating%20expenses) Operating expenses rose slightly by **2.2%** to **€74.1 million** in 2022, driven by increased R&D costs for preclinical programs, while G&A expenses decreased due to lower personnel and advisory fees Expense Category (in thousands of euros) | Expense Category (in thousands of euros) | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Research and development expenses | (51,663) | (47,004) | | Selling, general and administrative expenses | (22,436) | (25,524) | | **Total Operating expenses** | **(74,099)** | **(72,528)** | - R&D expenses increased by **€4.7 million**, mainly due to a **€5.0 million** increase in preclinical development program costs (notably IPH6501), partially offset by a **€4.3 million** decrease in clinical program expenses[41](index=41&type=chunk)[42](index=42&type=chunk) - G&A expenses decreased by **€3.1 million**, primarily due to lower wages, reduced non-scientific advisory fees, and a decrease in legal and compliance support costs[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) [Balance Sheet and Cash Flow](index=17&type=section&id=Balance%20sheet%20and%20Cash-flow%20items) As of December 31, 2022, Innate Pharma held **€136.6 million** in cash, with net cash used in operations improving to **€19.2 million**, influenced by significant milestone receipts from partners - Total cash, cash equivalents, and financial assets stood at **€136.6 million**, down from **€159.7 million** in 2021[54](index=54&type=chunk) - Shareholders' equity decreased to **€54.2 million** from **€107.4 million**, largely due to the net loss of **€58.1 million** for the period[56](index=56&type=chunk) Cash Flow Activity (in thousands of euros) | Cash Flow Activity (in thousands of euros) | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | (19,154) | (58,457) | | Net cash from / (used in) investing activities | 1,877 | (917) | | Net cash from / (used in) financing activities | (1,828) | 26,818 | - A post-period event in March 2023 was the receipt of a **€25.0 million payment** from Sanofi related to the B7-H3 ANKET® program license agreement[57](index=57&type=chunk)

Financial Data and Key Metrics Changes - The company reported a strong cash position with $151 million as of September 30, 2022, providing a runway into the second half of 2024 [37][86] - The financial outlook includes ongoing discussions with regulators regarding accelerated approval pathways, particularly for lacutamab [55] Business Line Data and Key Metrics Changes - The lead proprietary product candidate, lacutamab, is in development for T-cell lymphoma, with readouts expected in the second half of the year [8] - Encouraging preliminary data from the TELLOMAK trial for lacutamab showed a 28.6% overall response rate (ORR) in mycosis fungoides [15] - The company is advancing its multi-specific NK cell engager platform, ANKET, with the most advanced candidate, IPH6501, expected to file an IND next year [28][36] Market Data and Key Metrics Changes - The company is focusing on leveraging partnerships across industry and academia, including collaborations with AstraZeneca and Sanofi [10][36] - The competitive landscape for CD20 targeting bi-specifics is acknowledged, with plans to differentiate IPH6501 based on safety and efficacy [73] Company Strategy and Development Direction - The strategy centers around three key priorities: creating near-term value from lacutamab, developing innovative molecules through the ANKET platform, and building sustainable partnerships [8][10] - The company aims to validate its science and reinvest capital to advance its early portfolio [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of lacutamab in heavily pretreated populations, with ongoing discussions with regulators about accelerated approval [55][80] - The company is encouraged by preliminary data and expects to achieve several milestones over the next two years, including updates on clinical trials [34][36] Other Important Information - The company plans to present data at upcoming conferences, including the ASH Annual Congress and ESMO IO [30][36] - The ANKET platform is designed to create a new class of tri- and tetra-specific engagers to induce synthetic immunity against cancer [25] Q&A Session Summary Question: What are the expectations for the TELLOMAK trial and the tetra-specific ANKET? - Management confirmed that the selection of CD20 as a target for the tetra-specific ANKET was to limit variables and leverage a well-validated target [41][46] - Responses in Cohort 3 of the TELLOMAK trial were attributed to tumor heterogeneity and assay conditions [48] Question: What are the regulatory expectations for accelerated approval? - Management indicated that discussions with regulators are ongoing, and the benchmark for accelerated approval has become tougher recently [55] Question: What is the future of lacutamab if PTCL does not deliver? - Management stated that while PTCL data is crucial, the company has multiple avenues to explore the potential of lacutamab, including monotherapy and combination trials [80] Question: How will the patient population change as moga is used earlier? - Management noted that the trial will likely continue to recruit heavily pretreated patients, as access to moga has not significantly changed [82] Question: How does the company plan to file for approval in Sézary syndrome and mycosis fungoides? - The decision will depend on data strength, regulatory landscape, and potential partnerships [77]

Q3 2022 Financial Results and Business Update November 14, 2022 PARIS: IPH.PA NASDAQ: IPHA © 2021 Innate Pharma. All rights reserved. Disclaimer on Forward-Looking Information and Risk Factors This document has been prepared by Innate Pharma S.A. (the "Company") solely for the purposes of a presentation to investors concerning the Company. This document is not to be reproduced by any person, nor to be distributed. This document contains forward-looking statements. The use of certain words, including "believ ...