Core Insights - Merck's acquisition of Terns Pharmaceuticals is primarily focused on TERN-701, a next-generation allosteric TKI for chronic myeloid leukemia (CML), which is expected to address unmet needs in the treatment landscape [2][4][6] Company Strategy - Merck's strategy emphasizes a science-led approach to business development, aiming to diversify its pipeline, particularly in oncology, with over 20 anticipated new growth drivers projected to represent a combined commercial opportunity exceeding $70 billion by the mid-2030s [3][4] Acquisition Details - The acquisition of Terns is valued at approximately $6.7 billion, with Merck agreeing to pay $53 per share, and the deal is expected to close in the second quarter of 2026, pending regulatory approvals [7][19] - Merck plans to account for the acquisition as an asset acquisition, anticipating a $5.8 billion R&D charge in 2026 and a negative EPS impact of approximately $0.17 in the first year [5][19] Product Potential - TERN-701 is positioned as potentially "best-in-class," with early clinical data showing promising efficacy and tolerability compared to existing TKIs, including higher rates of major molecular response (MMR) and deep molecular response (DMR) [6][9][10] - The drug targets an allosteric site on the ABL protein, aiming to overcome resistance mutations and minimize off-target effects, which could support higher dosing and more complete inhibition [8][10] Market Opportunity - CML is a chronic disease with an increasing prevalence, with an estimated 18,000 new patients diagnosed annually in the U.S., key European markets, and Japan [14] - Merck anticipates that TERN-701 could become a significant growth driver starting in the early 2030s, with a multibillion-dollar revenue potential [15] Competitive Landscape - Merck does not foresee significant barriers to market access for TERN-701, even amid generic competition for earlier-generation TKIs, and expects that differentiated clinical data will support its uptake [16]

Financial Data and Key Metrics Changes - The company ended 2025 with a strong balance sheet of $306 million in cash and investments, down from $371 million as of December 31, 2024 [17] - For Q4 2025, total net revenue was $0.6 million, a significant decrease from $11.6 million in Q4 2024, primarily due to the recognition of remaining deferred revenue related to the YUTIQ product rights [15] - Full year 2025 total net revenue was $31 million, compared to $43 million in 2024, again driven by the deferred revenue recognition [16] - Operating expenses for Q4 2025 totaled $71 million, up from $57 million in the prior year, mainly due to ongoing Phase III trials for DURAVYU [16] - The net loss for Q4 2025 was approximately $68 million or $0.81 per share, compared to a net loss of $41 million or $0.64 per share in the prior year [16] Business Line Data and Key Metrics Changes - DURAVYU is on track to deliver top-line data in wet AMD beginning in mid-2026, with the first patients dosed in pivotal Phase III DME trials [7][8] - The company is focused on building DURAVYU into a durable franchise targeting the largest retinal disease markets, which have a combined current global market of $10 billion [12] Market Data and Key Metrics Changes - The global market for wet AMD and DME is currently valued at $10 billion and is expected to grow [12] Company Strategy and Development Direction - The company aims to position DURAVYU as the first to market among current investigational sustained release programs in both wet AMD and DME, with a potential best-in-class profile [11] - The strategy includes a focus on commercial readiness and the appointment of a new Chief Commercial Officer to prepare for a successful U.S. launch [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in DURAVYU's blockbuster potential, citing its compelling clinical profile and favorable safety profile observed in over 190 patients across four completed clinical trials [8][9] - The company is well-capitalized to continue advancing DURAVYU through late-stage development programs, with cash expected to fund operations into Q4 2027 [18] Other Important Information - The company is preparing for regulatory submission and pre-approval inspection as it nears NDA submission for DURAVYU [13] Q&A Session Summary Question: Can you clarify the rate of ocular AEs seen with DURAVYU, particularly around vitreous floaters and cataracts? - The incidence of cataracts in treated patients was 5.8%, while vitreous floaters were reported in 5.2% of patients, consistent with expectations for injection studies [24][26] Question: How are you thinking about recent FDA chatter around single study-driven regulatory approvals? - The company welcomes a more rapid pathway to drug approvals but does not anticipate changing its strategy for current trials [32] Question: Will there be additional looks at masked safety in the wet AMD trials before they read out? - There will be ongoing safety monitoring by both internal and independent committees, with the next review scheduled for May [39] Question: What are the expectations for the reduction in treatment burden in the wet AMD studies? - The treatment burden will be measured after the loading doses, with expectations of a 60% reduction in the DURAVYU arm compared to the control arm [69] Question: How do you expect the steps or requirements to affect the adoption of vorolanib? - Initial adoption is expected among patients requiring frequent treatments, with potential expansion based on clinical trial outcomes [92]

Financial Data and Key Metrics Changes - The company ended 2025 with a strong balance sheet of $306 million in cash and investments, down from $371 million as of December 31, 2024 [17] - Total net revenue for Q4 2025 was $0.6 million, a significant decrease from $11.6 million in Q4 2024, primarily due to the recognition of remaining deferred revenue related to the YUTIQ product rights [15] - For the full year 2025, total net revenue was $31 million, compared to $43 million in 2024, again driven by the deferred revenue recognition [16] - Operating expenses for Q4 2025 totaled $71 million, up from $57 million in the prior year, mainly due to ongoing Phase 3 trials for DURAVYU [16] - The net loss for Q4 2025 was approximately $68 million or $0.81 per share, compared to a net loss of $41 million or $0.64 per share in the prior year [16] Business Line Data and Key Metrics Changes - DURAVYU is on track to deliver top-line data in wet AMD beginning in mid-2026, with the first patients dosed in pivotal Phase 3 DME trials [7][8] - The company is focused on building DURAVYU into a durable franchise targeting the largest retinal disease markets, which have a combined current global market of $10 billion [12] Market Data and Key Metrics Changes - The global market for wet AMD and DME is currently valued at $10 billion and is expected to grow, highlighting the significant commercial potential for DURAVYU [12] Company Strategy and Development Direction - The company aims to position DURAVYU as the first to market among current investigational sustained release programs in both wet AMD and DME, with a potential best-in-class profile [11] - The strategy includes a focus on a de-risked, clinically rigorous, and patient-centric approach to drug development [19] - The company is preparing for a potential U.S. launch of DURAVYU, with a strong emphasis on commercial readiness and operational expansion [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in DURAVYU's blockbuster potential, supported by its compelling clinical profile and favorable safety data [8] - The company is well-capitalized to continue advancing DURAVYU through late-stage development programs, with cash expected to fund operations into Q4 2027 [18] - Management highlighted the importance of upcoming milestones, including reporting top-line data for the Phase 3 LUGANO trial anticipated in mid-2026 [19] Other Important Information - The company welcomed Michael Campbell as the new Chief Commercial Officer, who brings extensive experience in product launches and oversight of ophthalmology franchises [12] - The company is expanding operations at its cGMP manufacturing facility in Massachusetts, which supports both NDA submissions and commercial supply [13] Q&A Session Summary Question: Can you clarify the rate of ocular AEs seen with DURAVYU, particularly around vitreous floaters and cataracts? - The incidence of cataracts in treated patients was 5.8%, while vitreous floaters were reported in 5.2% of patients, consistent with expectations for injection studies [24][26] Question: How are you thinking about recent FDA chatter around single study-driven regulatory approvals? - The company welcomes a more rapid pathway to drug approvals but does not anticipate changing its strategy for current trials [32][34] Question: Will there be additional looks at masked safety in the wet AMD trials before they read out? - The company has ongoing internal and independent Data Safety Monitoring Committee reviews, with the next meeting scheduled for May [39] Question: What is the expected safety profile in LUGANO LUCIA compared to DAVIO 2? - The company does not expect significant differences in safety profiles, as the insert design and drug dosage have been optimized [75][78] Question: How do you expect the steps or requirements to affect the adoption of vorolanib? - Initial adoption is expected among patients requiring frequent treatments, with broader adoption possible if clinical trials demonstrate superior efficacy [91][94]

J.P. Morgan Healthcare Conference Presentation January 13, 2026 Jay S. Duker, M.D. President and CEO © 2026 EyePoint. All Rights Reserved. Legal Disclaimers Various statements made in this presentation are forward-looking, within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, and are inherently subject to risks, uncertainties and potentially inaccurate assumptions. All statements that address activities, events or developments that we intend, expect, plan or believe may occur in t ...

Exelixis 2025 R&D Day Summary Company Overview - **Company**: Exelixis (NasdaqGS:EXEL) - **Focus**: Oncology, specifically solid tumor oncology Key Themes and Strategic Focus - **Multi-Compound, Multi-Franchise Strategy**: Exelixis aims to build a diverse pipeline of oncology products rather than focusing on single indications [4][5] - **Franchise Approach**: The company is prioritizing the development of franchise molecules and indications to enhance its market position and revenue potential [5][10] - **Patient-Centric Goals**: The overarching goal is to improve the standard of care for cancer patients, thereby benefiting both patients and shareholders [6][10] Financial Projections and Growth - **CABO Franchise Growth**: Projected cumulative growth of over 30% in CABO product revenues from 2023 to 2025, driven by new indications in the MET space [7] - **Zanza Development**: Zanza is positioned as a key molecule for future growth, with positive results from pivotal trials and an FDA filing based on the STELLAR-303 trial [8][9] Pipeline and Product Development - **Early-Stage Pipeline**: The pipeline includes three IND candidates (XB010, XB628, XB371) and new molecules like XB773 and XL557, which are advancing towards IND status [9] - **Focus Areas**: The company is concentrating on kidney cancer, neuroendocrine tumors, and colorectal cancer as primary targets for its pipeline [14] Clinical Trials and Research - **Ongoing Trials**: Exelixis has multiple ongoing or planned pivotal trials, including STELLAR-304 for non-clear cell renal cell carcinoma (RCC) and LITESPARK-033 for patients progressing after adjuvant Pembrolizumab [35][49] - **Zanza's Mechanism of Action**: Zanza is designed to target multiple pathways (MET, TAM kinases, VEGF) to combat resistance and improve patient outcomes [30][32] Unmet Medical Needs - **Non-Clear Cell RCC**: There is a significant unmet need in treating non-clear cell RCC, which has historically been underrepresented in clinical trials [20][24] - **Adjuvant Treatment Gaps**: The introduction of Pembrolizumab in the adjuvant setting has created a new patient population with unmet needs, which Exelixis aims to address with Zanza and HIF-2 inhibitors [49] Collaboration and Partnerships - **Expert Collaborations**: Exelixis collaborates with leading oncologists and institutions to enhance its research and development efforts, ensuring a strong focus on patient outcomes [60] Conclusion - **Commitment to Oncology**: Exelixis emphasizes its long-term commitment to advancing treatment options in oncology, particularly in renal cell carcinoma, with a focus on innovative therapies and patient care [61]

Core Insights - Exelixis is developing zanzalintinib, a next-generation oral investigational tyrosine kinase inhibitor (TKI) targeting receptor tyrosine kinases involved in cancer growth, with recent studies showing positive data [1] Study Results - In June 2025, Exelixis announced positive top-line results from the STELLAR-303 study, a phase III trial involving 901 patients with metastatic colorectal cancer, comparing zanzalintinib plus Tecentriq against regorafenib [2] - The STELLAR-303 study met one of its dual primary endpoints, showing a statistically significant improvement in overall survival (OS) for the intent-to-treat population treated with zanzalintinib plus Tecentriq compared to regorafenib [3] - Enrollment for the STELLAR-304 study was completed in May 2025, evaluating zanzalintinib in combination with Opdivo versus sunitinib in advanced non-clear cell renal cell carcinoma [4] - Exelixis has opted not to proceed with the phase III portion of the STELLAR-305 trial based on emerging data and competition in advanced squamous cell carcinoma [5] - The company initiated the phase III STELLAR-311 study in advanced neuroendocrine tumors, comparing zanzalintinib to everolimus [6] Competitive Landscape - The competitive environment for renal cell carcinoma (RCC) is intensifying, with significant competition for Exelixis's lead drug, Cabometyx, from various immunotherapy-TKI combinations [7] - Keytruda, approved for advanced RCC, accounts for approximately 50% of Merck's pharmaceutical sales, highlighting the competitive pressure in the market [10] Financial Performance - Exelixis shares have increased by 14% year-to-date, contrasting with a 0.9% decline in the biotech industry [11] - The company's shares are currently trading at a price/sales ratio of 4.09x forward sales, above its historical mean of 3.64x and the biotech industry's average of 1.59x [13] - The bottom-line estimate for 2025 has risen from $2.64 to $2.68, while the estimate for 2026 has decreased from $3.13 to $3.09 over the past 30 days [14]