Financial Statements Condensed Consolidated Balance Sheets (Unaudited) The balance sheet shows a decrease in total assets and shareholders' equity from December 31, 2024, to June 30, 2025, while total liabilities remained relatively stable | Metric | June 30, 2025 (CHF thousands) | December 31, 2024 (CHF thousands) | | :--------------------------- | :------------------------------ | :-------------------------------- | | Total assets | 190,224 | 230,913 | | Total shareholders' equity | 74,743 | 112,270 | | Total liabilities | 115,481 | 118,643 | Condensed Consolidated Statements of Income/(Loss) (Unaudited) The company reported increased revenue for both the three and six months ended June 30, 2025, compared to the prior year, while operating losses slightly decreased and loss per share improved | Metric | For the Three Months Ended June 30, 2025 (CHF thousands) | For the Three Months Ended June 30, 2024 (CHF thousands) | For the Six Months Ended June 30, 2025 (CHF thousands) | For the Six Months Ended June 30, 2024 (CHF thousands) | | :-------------------------------- | :------------------------------------------------------- | :------------------------------------------------------- | :----------------------------------------------------- | :----------------------------------------------------- | | Total revenue | 1,306 | 687 | 2,296 | 687 | | Operating loss | (19,388) | (20,961) | (38,759) | (41,029) | | Loss for the period | (21,189) | (22,760) | (40,218) | (40,622) | | Basic and diluted loss per share | (0.21) | (0.23) | (0.40) | (0.41) | Condensed Consolidated Statements of Comprehensive Income/(Loss) (Unaudited) The total comprehensive loss for the three and six months ended June 30, 2025, decreased compared to the prior year, primarily reflecting the change in net loss for the period and minor currency translation differences | Metric | For the Three Months Ended June 30, 2025 (CHF thousands) | For the Three Months Ended June 30, 2024 (CHF thousands) | For the Six Months Ended June 30, 2025 (CHF thousands) | For the Six Months Ended June 30, 2024 (CHF thousands) | | :-------------------------- | :------------------------------------------------------- | :------------------------------------------------------- | :----------------------------------------------------- | :----------------------------------------------------- | | Loss for the period | (21,189) | (22,760) | (40,218) | (40,622) | | Other comprehensive income | 4 | — | 9 | 16 | | Total comprehensive loss | (21,185) | (22,760) | (40,209) | (40,606) | Condensed Consolidated Statements of Changes in Equity (Unaudited) Total shareholders' equity decreased significantly from January 1, 2025, to June 30, 2025, mainly due to the loss for the period, partially offset by share-based payments and share issuances | Metric | As of January 1, 2025 (CHF thousands) | As of June 30, 2025 (CHF thousands) | | :---------------------- | :------------------------------------ | :---------------------------------- | | Total shareholders' equity | 112,270 | 74,743 | | Loss for the period | (40,218) | (40,218) | | Share-based payments | 2,679 | 2,679 | Condensed Consolidated Statements of Cash Flows (Unaudited) The company experienced a significant shift from cash provided by operating activities in 2024 to cash used in operating activities in 2025, with investing activities turning positive due to net maturities of short-term financial assets, while financing activities continued to use cash | Metric | For the Six Months Ended June 30, 2025 (CHF thousands) | For the Six Months Ended June 30, 2024 (CHF thousands) | | :------------------------------------------ | :----------------------------------------------------- | :----------------------------------------------------- | | Net cash flows provided by/(used in) operating activities | (34,414) | 74,051 | | Net cash flows provided by/(used in) investing activities | 26,911 | (99,377) | | Net cash flows (used in) financing activities | (505) | (750) | | Net (decrease) in cash and cash equivalents | (8,008) | (26,076) | | Cash and cash equivalents at June 30 | 25,722 | 51,564 | Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) 1. Corporate information AC Immune SA is a clinical-stage biopharmaceutical company focused on discovering, designing, and developing novel medicines and diagnostics for neurodegenerative diseases, utilizing its proprietary SupraAntigen and Morphomer platforms - AC Immune SA is a clinical-stage biopharmaceutical company focused on neurodegenerative diseases (NDD) such as Alzheimer's disease (AD) and Parkinson's disease (PD)10 - The company leverages two proprietary technology platforms: SupraAntigen (conformation-specific biologics) and Morphomer (conformation-specific small molecules)10 - The corporate strategy targets AD, focused non-AD NDD (including Parkinson's disease, ALS, and NeuroOrphan indications), and diagnostics10 2. Basis of preparation and changes to the Company's accounting policies These interim financial statements are prepared in accordance with IAS 34 under the historical cost convention, with Swiss Francs as the reporting currency, and management makes critical judgments and estimates in areas like revenue recognition and share-based compensation, while maintaining a going concern basis supported by its cash position and short-term financial assets - The Interim Condensed Consolidated Financial Statements are prepared in accordance with International Accounting Standard 34 (IAS 34)12 - The financial statements are presented in Swiss Francs (CHF), which is AC Immune SA's functional currency and the Group's reporting currency14 - The Company believes it will meet its obligations for at least 12 months from the filing date, with a cash position of CHF 25.7 million and short-term financial assets of CHF 101.4 million as of June 30, 2025, supporting a going-concern basis20 Statement of compliance - Interim Condensed Consolidated Financial Statements are prepared in accordance with International Accounting Standard 34 (IAS 34)12 Basis of measurement - The financial statements are prepared under the historical cost convention13 Functional and reporting currency - The financial statements are presented in Swiss Francs (CHF), which is AC Immune SA's functional and the Group's reporting currency. The subsidiary uses the US Dollar (USD) as its functional currency14 Critical judgments and accounting estimates - Key areas requiring judgments, estimates, and assumptions include revenue recognition on Licensing and Collaboration Agreements (LCAs), clinical development accruals, net employee defined benefit liability, share-based compensation, right-of-use assets and lease liabilities, and the IPR&D asset16 Fair value of financial assets and liabilities - The fair value of the Company's financial assets and liabilities (receivables, short-term financial assets, cash, trade payables, lease liabilities) approximates their carrying values due to short-term maturity17 Accounting policies, new standards not yet effective, interpretations and amendments adopted by the Company - The accounting policies are consistent with those in the 2024 annual consolidated financial statements18 - IFRS 18, effective January 1, 2027, will change the structure of the statement of profit or loss and enhance disclosures; the Company is evaluating its impact19 Going concern - The Company expects to meet its obligations for at least 12 months, supported by CHF 25.7 million in cash and CHF 101.4 million in short-term financial assets as of June 30, 202520 - Financing has primarily come from public offerings, share issuances, contract revenues from LCAs, and grants21 - Inherent risks include uncertainty of project success, ability to raise additional capital, and the need to establish patent protection, collaborations, and attract key personnel21 3. Contract revenues and other operating income Contract revenue significantly increased for the three and six months ended June 30, 2025, primarily driven by the Takeda Pharmaceuticals agreement, which included an upfront payment and potential future milestones and royalties, with a portion of this revenue recognized and the remainder deferred related to unsatisfied performance obligations Contract Revenue (CHF thousands) | Period | 2025 | 2024 | | :-------------------------- | :--- | :--- | | Three Months Ended June 30, | 1,306 | 687 | | Six Months Ended June 30, | 2,296 | 687 | - In May 2024, the Company entered into a worldwide option and license agreement with Takeda Pharmaceuticals for active immunotherapies targeting Abeta, including ACI-24.060 for AD25 - Under the Takeda agreement, AC Immune received an upfront payment of USD 100.0 million (CHF 92.3 million) in May 2024 and is eligible for an option exercise fee and additional potential development, commercial, and sales-based milestones of up to approximately USD 2.1 billion25 - As of June 30, 2025, the Company recorded CHF 87.3 million in deferred contract revenue related to unsatisfied performance obligations under the Takeda agreement32 3.1 Licensing and collaboration agreements - The Takeda agreement includes a license option and development, CMC, and regulatory activities as distinct performance obligations27 - The USD 100.0 million upfront payment was allocated based on relative stand-alone selling prices: USD 87.4 million (CHF 80.7 million) to the license option and USD 12.6 million (CHF 11.6 million) to development, CMC, and regulatory activities30 - Revenue for the license option is deferred until exercise or expiration, while revenue for development, CMC, and regulatory activities is recognized over the estimated completion period using an input method31 4. Loss per share The basic and diluted loss per share improved for both the three and six months ended June 30, 2025, compared to the prior year, reflecting a slightly lower net loss and an increase in the weighted-average number of shares outstanding Loss per Share (EPS) | Metric | For the Three Months Ended June 30, 2025 | For the Three Months Ended June 30, 2024 | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :-------------------------------------------------------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net loss attributable to equity holders of the Company (CHF thousands) | (21,189) | (22,760) | (40,218) | (40,622) | | Weighted-average number of shares outstanding used to compute EPS basic and diluted | 100,631,371 | 99,549,910 | 100,519,884 | 99,467,690 | | Basic and diluted loss per share for the period attributable to equity holders | (0.21) | (0.23) | (0.40) | (0.41) | 5. Property, plant and equipment The net book value of property, plant and equipment slightly decreased from December 31, 2024, to June 30, 2025, due to depreciation exceeding additions Property, Plant and Equipment Carrying Amount (CHF thousands) | Metric | December 31, 2024 | June 30, 2025 | | :------------- | :---------------- | :------------ | | Carrying amount | 2,651 | 2,490 | - Depreciation expense for the six months ended June 30, 2025, was CHF 724 thousand35 6. Right-of-use assets, long-term financial assets and lease liabilities Right-of-use assets decreased due to depreciation, while lease liabilities and associated expenses increased for the six months ended June 30, 2025, and the company also holds long-term financial assets in the form of lease deposits Right-of-Use Assets Carrying Amount (CHF thousands) | Metric | December 31, 2024 | June 30, 2025 | | :------------- | :---------------- | :------------ | | Carrying amount | 5,437 | 4,926 | Lease-Related Expenses and Cash Outflows (CHF thousands) | Metric | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------------- | :------------------------------------- | | Depreciation of right-of-use assets | 511 | 337 | | Interest expense on lease liabilities | 92 | 59 | | Total cash outflow for leases | 965 | 762 | - Contractual undiscounted cash flows for lease obligations totaled CHF 5,323 thousand as of June 30, 202539 7. Accrued expenses Accrued expenses, primarily consisting of R&D costs, payroll, and other items, slightly decreased from December 31, 2024, to June 30, 2025 Accrued Expenses (CHF thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Accrued expenses | 11,476 | 12,098 | 8. Intangible assets The company holds an acquired IPR&D asset for Parkinson's disease, which remains at its carrying amount of CHF 50.4 million and is not yet amortized as it is not ready for use, with no impairment triggering events identified as of June 30, 2025 Intangible Assets (CHF thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------ | :------------ | :---------------- | | Acquired IPR&D asset | 50,416 | 50,416 | - The IPR&D asset is a clinically-validated active vaccine candidate for Parkinson's disease, not yet ready for use, and therefore not amortized41 - No triggering events for impairment of the IPR&D asset were identified as of June 30, 202541 9. Prepaid expenses Prepaid expenses, including R&D costs, administrative costs, and employee social obligations, decreased from December 31, 2024, to June 30, 2025 Prepaid Expenses (CHF thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Prepaid expenses | 2,542 | 4,302 | 10. Cash and cash equivalents and short-term financial assets Both cash and cash equivalents and short-term financial assets decreased from December 31, 2024, to June 30, 2025, and net proceeds from the maturity of short-term financial assets also saw a significant reduction compared to the prior year Cash and Short-term Financial Assets (CHF thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | 25,722 | 36,275 | | Short-term financial assets | 101,413 | 129,214 | - Net proceeds from the maturity of short-term financial assets amounted to CHF 27.8 million for the six months ended June 30, 2025, a decrease from CHF 99.0 million in the prior comparable period44 11. Share capital and Treasury shares The number of treasury shares remained consistent between December 31, 2024, and June 30, 2025 - The Company had 10,899,773 treasury shares remaining as of June 30, 2025, and December 31, 202446 12. Share-based compensation The number of outstanding share options and non-vested restricted share awards increased from December 31, 2024, to June 30, 2025, while share-based compensation expense decreased for the six months ended June 30, 2025, compared to the prior year Share Options and Restricted Share Awards | Metric | As of June 30, 2025 | As of December 31, 2024 | | :-------------------------------- | :------------------ | :---------------------- | | Outstanding share options | 5,259,656 | 5,010,827 | | Non-vested restricted share awards | 1,549,046 | 822,740 | - Share-based compensation expense charged against the income statement was CHF 2.7 million for the six months ended June 30, 2025, down from CHF 3.3 million in the prior comparable period51 Share-based option awards - The Company's 2016 Share Option and Incentive Plan (SOIP) authorizes various equity-based grants48 Share Option Activity | Metric | Outstanding at January 1, 2025 | Granted during the period | Exercised during the period | Outstanding at June 30, 2025 | | :----------------------- | :----------------------------- | :------------------------ | :-------------------------- | :--------------------------- | | Number of options | 5,010,827 | 369,231 | (15,000) | 5,259,656 | Restricted share awards Restricted Share Awards Activity | Metric | Non-vested at December 31, 2024 | Granted during the period | Exercised during the period | Vested during the period | Non-vested at June 30, 2025 | | :-------------------------------- | :------------------------------ | :------------------------ | :-------------------------- | :----------------------- | :-------------------------- | | Number of shares | 822,740 | 1,303,342 | (56,630) | (491,585) | 1,549,046 | - The expense charged against the income statement for restricted share awards was CHF 1.1 million for the three months ended June 30, 2025, and CHF 2.7 million for the six months ended June 30, 202551 13. Finance result, net The company reported a net finance loss for both the three and six months ended June 30, 2025, primarily driven by unfavorable foreign currency exchange differences, predominantly against the US Dollar, partially offset by financial income from short-term investments Net Finance Result (CHF thousands) | Period | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30, | (1,801) | (1,799) | | Six Months Ended June 30, | (1,459) | 407 | - The net finance loss is primarily due to unfavorable foreign currency exchange differences related to movements in the CHF versus foreign currencies, predominantly the US Dollar5354 14. Subsequent events Management has evaluated subsequent events through the issuance date of these interim financial statements and determined that no events warrant disclosure or recognition - No subsequent events were identified that warrant disclosure or recognition in these Interim Condensed Consolidated Financial Statements55
AC Immune(ACIU) - 2025 Q2 - Quarterly Report