Dicot Annual Report 2024 by beQuoted

Key Figures of the Year

124

Subscription rate in the unit issue in August

New patents granted

90 Equity ratio

8,135

Number of days LIB-01 showed efficacy, according to exploratory data from phase 1 % %

Number of shareholders as of December 31, 2024. An increase of more than 60% during the year

113 Cash balance at year-end

643

Clinical studies

Number of Swedish and international articles mentioning Dicot Pharma SEK million

Preclinical studies and other R&D

Breakdown of R&D expenses: % % %

Manufacturing related costs

Statement from the CEO

2024 was a fantastic year for Dicot Pharma, marked by strong momentum and significant study results, with several important development milestones reached. An oversubscribed rights issue stood out in the market and has resulted in a solid financial position for the company. Encouragingly, interest from both investors and medical experts continues to grow.

In the pharmaceutical industry, we often say: “It’s all about the science” – to demonstrate good study results. This is more true now than ever to attract interest in today’s challenging financial climate. That’s why our strong clinical results in 2024 are a golden asset – like the fact that we achieved a clear efficacy signal in phase 1 through smart study design and exploratory measurements. It also reduces the project’s risk profile. The subsequent share issue in August was a sign of strength, as was the exercise of warrants at the end of March 2025. This provides clear evidence that we attract a lot of interest.

But to fully unlock the potential of a new drug candidate and ensure a successful launch on the global market, more is required. For example, establishing efficient large-scale production and – this is very important – integrating commercial aspects early in the development. Additionally, to understand the regulatory requirements a product must meet to ultimately obtain market approval – something that well in advance must be built into study design etc.

On this theme, we’ve this year further increased our dialogue with regulatory agencies such as the FDA in the US. We’re also gaining deeper insight and understanding of important commercial factors such as market access, pricing strategies, and geographical differences – all of which are critical to achieving the best possible market positioning.

This information is also already now central to us in our discussions with potential partners. It strengthens our offering by clarifying the potential of LIB-01 and helps us determine requirements on a future partner and how to evaluate their commercial strength.

I’m proud to say that we’re on top of all these areas – we work proactively and leave nothing pending. All to maximize the project´s advancement. This, I believe, is made possible by Dicot Pharma being both a small and a large company – combining the best of two worlds. A small, agile team with vast experience and low fixed costs, while operating at the forefront globally through professional collaborations and world-leading experts.

In 2024, a new opportunity emerged. Research findings indicate that our substance may also have a positive effect on metabolic diseases. We have now launched a preclinical program to collect more data and decision support for next steps and future business model. We have previously seen signs that the substance also may impact premature ejaculation, based on early research by Professor Jarl Wikberg, the founder of Dicot Pharma.

This means we have multiple tracks under evaluation to expand the product portfolio. Erectile dysfunction, however, remains our primary focus – an area where LIB-01 holds enormous potential to revolutionize treatment regimens.

Although history is never a forecast for the future, the entire team and I are firmly committed to staying the course, delivering strong results, maintaining momentum, planning ahead, and delivering on our overarching mission: to make a real difference for affected men and couples.

Elin Trampe, Chief Executive Officer

Dicot Pharma is both a small and a large company – combining the best of two worlds

About Dicot Pharma

Dicot Pharma is developing LIB-01 into a completely new generation of erectile dysfunction drug for the global market, with the goal of surpassing currently available drugs. There is a significant medical need for new and improved treatments. With a longer duration of action, fewer side effects, and a differentiated mode of action, we aim to help affected men and couples to a better quality of life.

A clinical development program is currently underway with LIB-01, where Dicot Pharma in April 2024 completed a phase 1 trial primarily aimed at evaluating the safety profile. The results demonstrated that LIB-01 has a very favorable safety profile. In addition, a clear efficacy signal was observed, with participants reporting improved erectile function – an effect that persisted for a full four weeks after a three-day dosing period.

During the fourth quarter of 2024, a clinical phase 2a trial –also referred to as a proof-of-concept study – was initiated to demonstrate the effect of LIB-01 in treatment of erectile dysfunction.

a well-established method for large-scale production of natural pharmaceutical substances and a highly attractive option for future commercial manufacturing.

Dicot Pharma collaborates with world-leading partners in the development of LIB-01. For example, production is handled by the internationally recognized pharmaceutical manufacturer Thermo Fisher Scientific. In addition, the company has established a broad global network of medical and clinical experts.

An intensive IP strategy work has resulted in Dicot Pharma now having seven patent families and granted patents valid until 2042.

Dicot Pharma’s business model involves evaluating financial and industrial partnerships during clinical development to bring LIB-01 to commercialization. Financial partnerships aim to attract long-term major investors, while industrial partnerships would involve the licensing of rights for development and commercialization in exchange for revenues, including upfront payments, milestone payments, and royalty income from future sales.

The graph illustrates the efficacy signal from the phase 1 study. In one of the dosing groups, participants went from an average score of 18 at baseline to 26 at the end of the study. Meaning that participants went from erectile dysfunction to no dysfunction.

Early research conducted by the company’s founder, Professor Jarl Wikberg, also indicates that the substance may have an effect on premature ejaculation. In 2024, new data suggested that it may also influence factors associated with metabolic diseases, including conditions such as obesity and diabetes. A preclinical development program has now been launched for metabolic indications.

The active substance in LIB-01 is a synthetic molecule, derived from seeds used as starting material. Through an extraction process and several synthesis steps, compounds from the seeds are converted into the active substance. A parallel line of research is also evaluating an alternative production technology based on cell cultivation –

Increase quality of life and well-being with innovations that enhance sexual health.

A launch to crown his career

Professor François Giuliano, one of the world’s leading experts in sexual medicine and Dicot Pharma’s medical advisor, began his career studying Sildenafil – which later became Viagra – and predicts that his professional legacy will be crowned by the launch of LIB-01. He believes LIB-01 could represent a true paradigm shift in erectile dysfunction treatment. In this interview, he shares more about the evolution of sexual medicine, how Dicot Pharma entered his professional life, and his role in the ongoing clinical studies.

How did sexual medicine become your field of interest?

– At the end of my medical studies in urology, I was invited to take part in a new line of research: neurophysiological studies of male erection. Up to that point, erectile dysfunction patients were treated with injections – clearly an unpopular method – so there was a real need for alternatives.

One must understand that sexual medicine was uncharted territory in the late 1980s. There was very little research in the field, and it was barely recognized as a proper medical discipline. I was drawn to the immense possibilities ahead – to contribute to groundbreaking treatments and help establish a whole new medical science field. Nothing existed. Everything had to be built up. For several years, I conducted both clinical and experimental research and was soon considered a thought leader.

And then came Viagra…

– Yes, that was a truly major event. My CRO Pelvipharm developed animal models and carried out preclinical studies to further explore the substance’s mechanism and potential use. After its launch, Viagra was on the cover of every magazine. There were often misunderstandings and sweeping generalizations. I was concerned that people wouldn’t fully understand the drug, so I wrote a book to help clarify things –to counterbalance the misinformation many encountered.

How did you first hear about Dicot Pharma?

– A well-known Swedish sexologist, Professor Kerstin Fugl-Meyer – whom I’ve known for many years – reached out about six years ago and recommended the company. I wasn’t immediately enthusiastic. Many companies contact me, and most either seem a bit unserious in their research or destined to fail. But Kerstin was persistent, so I agreed to a meeting with Dicot Pharma. That led to Pelvipharm taking on the preclinical efficacy studies. I’m very grateful we did. Even the early animal studies showed that the company was on to something big.

Tell us about your role as a medical advisor in the phase 2a study.

– I work closely with Dicot Pharma’s Chief Scientific Officer, Charlotta Gauffin, especially in designing the study, and I serve on a committee that continuously evaluates LIB-01’s safety. I also train the clinics who practically conduct the studies. Once the results come in, I help evaluate the data.

How do you view Dicot Pharma’s approach to conducting studies?

– To be fair, clinical studies in this field are now very well defined, which makes the job easier. That said, one should not underestimate the work Charlotta and her team are doing. They operate smoothly and are extremely efficient. Going from animal studies to phase 2a in five years is an incredibly fast pace. For most development companies, it takes much longer.

What reactions to LIB-01 do you encounter among researchers and physicians?

– Most people in my field have been around for a long time, and as we’ve noted many times, nothing fundamentally new has emerged since Viagra and the drugs that followed. So, when experts in a niche field like this discover something entirely new in development – and that also seems robust – they get genuinely excited. That’s the reaction I receive every time I talk about Dicot Pharma’s work.

Can you envision how patients might receive LIB-01 upon a launch?

– This is a market where patients are very open to trying something new to improve their condition. We already see a clear level of interest just from how easy it has been to recruit participants to the phase 2a study.

What do you think will stand out most about LIB-01?

– That LIB-01 is so safe may be taken for granted. The long duration of action is what is truly groundbreaking. That is entirely new and something I’m sure many will appreciate. Everything points to LIB-01 having the potential to shift the paradigm in how erectile dysfunction is treated.

About Professor François Giuliano

Professor François Giuliano is a urological expert in sexual medicine and has participated in over twenty clinical trials, often as principal investigator. He has published more than 300 articles and authored a book on Viagra. He served as President of the European Society for Sexual Medicine (ESSM) from 2015 to 2017.

He divides his time between an academic laboratory, clinical work at Raymond Poincaré University Hospital in Paris, and his own company Pelvipharm – a world leader in preclinical studies within sexual medicine.

The Erectile Dysfunction Market

Global sales of erectile dysfunction drugs were estimated at approximately USD 5.2 billion in 2024. The market’s value is expected to grow by 6% annually between 2024 and 2030.

Market growth is driven by several factors, including an aging population, increased prevalence of underlying conditions such as diabetes and cardiovascular diseases, and improved access to treatment through digital healthcare providers.

Today, the market is dominated by PDE5 inhibitors, such as Viagra. These drugs were revolutionary when introduced in the late 1990s. However, they have their limitations.

World market erectile dysfunction today

USD 5,2 billion global sales 2024

Limiting factors

35-40% don’t achieve desired effect

Planning is often required

Disturbing side effects

= 50% drop-out rate

Significant portion have not tried potency drugs

Due to perceived shortcomings such as lack of effect, disruptive side effects, and the need for planning, many patients do not use them. In fact, around 50% of men who are prescribed these drugs discontinue treatment.

The addressable market is therefore considerably larger than the current sales volumes reflect. Additionally, the stigma surrounding erectile dysfunction is decreasing, and digital care options are making it easier for patients to seek help.

Future world market erectile dysfunction

6% annual growth

It has been 27 years since a new class of oral treatments for erectile dysfunction was approved. LIB-01 appears to have the potential to position itself as a new first-line therapy.

Market expansion triggers

New generation potency drug • Different mode of action • Sex without the need for planning

• No disturbing side effects

Lower threshold due to reduced stigma and digital healthcare providers

Dr Harin Padma-Nathan, former Professor of Urology, University of Southern California, Principal Investigator for Viagra and Cialis

Sustainable Business

Dicot Pharma is on an exciting growth journey, building an organization and business model designed to grow responsibly and successfully in collaboration with our partners. We strive to create value at every level – for them and for us –while minimizing any negative impact our operations may have on nature, the environment, and people. Our sustainability efforts are forward-leaning and include corporate governance, social and ethical responsibility, and environmental considerations.

The core of the business and the third UN goal

Good health and well-being are number three among the UN’s seventeen Sustainable Development Goals, with the rationale that it is “a fundamental prerequisite for people to reach their full potential and contribute to the development of society.” Target 3.4 particularly emphasizes the promotion of mental health and well-being. Target 3.7 states that by 2030, everyone should have access to sexual and reproductive healthcare.

Dicot Pharma’s vision for our future product is to improve health economics and quality of life by promoting sexual health and is fully aligned with the UN goal. The core of our business is to develop a product that will significantly improve treatment for the widespread issue of erectile dysfunction. Research shows that the condition leads to mental health issues and negatively affects both the man and his partner. A sustainable business approach also ensures that consumers not only receive a safe product, but also correct and transparent information.

The Code of Conduct keeps us accountable

Our Code of Conduct ensures that Dicot Pharma operates with the same values, principles, and goals throughout the entire value chain. The Code is adopted by the Board of Directors, reviewed continuously, and governs areas such as environmentally responsible production, workplace environment, gender equality, and anti-corruption.

The Code of Conduct holds us accountable for complying with laws and regulations, acting responsibly and ethically, and requiring the same from our partners.

Social and ethical responsibility at every level

By consistently adhering to the Code of Conduct, we build long-term relationships with employees, consultants, suppliers, and partners – contributing together to sustainable development. Sometimes it means putting pressure on suppliers to meet the requirements set out in the Code. Other times, it means engaging in sustainability projects, such as BioInnovation Africa, in collaboration with our partner Parceval Ltd in South Africa. The goal there is to promote sustainable and mutually beneficial business relationships between Europe and Africa. This is achieved by following high ethical, social, and environmental standards in the use of natural resources, and by securing sustainable supplies of the drug candidate’s raw materials.

Highlights of the Year

Outstanding clinical phase 1 results

Favorable safety profile. Well absorbed in the body. Clear efficacy signal showing improved erectile function and uniquely long duration – at least four weeks. Some of the very positive results from our clinical phase 1 study, completed in spring 2024.

Discovery of new indications

In June, data from the LIB-01 research program indicated that the substance may have an effect on metabolic diseases, such as obesity and diabetes. A preclinical program was launched during the fall, running in parallel with the development of the erectile dysfunction candidate.

A more distinct name

As we gradually scale up toward becoming a larger pharmaceutical company in pace with incoming clinical results, strengthening and internationalizing our brand became a natural part of that growth. This led to the decision in late May to add Pharma to our company’s name.

The move to Nasdaq First North

In November, we switched from Spotlight Stock Market, where we had been listed since 2018, to Nasdaq First North. The move is expected to support our continued growth, internationalization, and competitiveness. It also improves visibility and access to both Swedish and international capital markets.

Expanded patent protection

In the final months of the year, three new patents were granted in the US within a strategically important patent family. This protection is central to our IP strategy as it strengthens both product and method protection through 2042 and includes “Composition of Matter”, meaning that the active substance in LIB-01 is covered, which is considered especially valuable.

Conferences boosting reputation and awareness

During the year, we presented results at major industry events. At Europe’s largest sexual medicine congress, ESSM, in February 2024, we shared our preclinical results. At the US equivalent, SMSNA, in the fall, Professor Harin Padma-Nathan was on stage to present our in-depth phase 1 results. The reception was strong and interest high.

Strong support, successful share issue

“We’re extremely pleased with the strong support shown in the rights issue, both from our existing shareholders and from new investors. The fact that the issue was oversubscribed demonstrates the great interest in Dicot Pharma and the confidence in our pharmaceutical development.”

Cutting through the noise

Having open and clear communication with the market is something we highly value. During the year, Dicot Pharma gained visibility in outlets such as Dagens Industri, Omni, Svenska Dagbladet, finance podcasts, and across social media. In addition, we were mentioned in 643 Swedish and international editorial articles. Six issues of our newsletter DICOTnytt were also published.

Elin Trampe following the announcement of the outcome of the rights issue in August 2024, which was subscribed to 124%.

Quick

5 Questions for Håkan Wickholm

In November 2024, the management team was expanded with Håkan Wickholm taking on the role of Chief Business Officer. He brings decades of international experience from business development and commercial roles at AstraZeneca, as well as CEO and CBO at smaller development companies. Håkan’s overarching responsibility is to establish strategic partnerships and prepare Dicot Pharma for commercialization.

1 How did you first come across Dicot Pharma?

I read a press release about the company raising SEK 135 million at a time when no one else was managing that kind of financing. I raised my eyebrows, impressed. Shortly afterward, I was contacted by a recruiter asking if I might be interested in a role. Quite the coincidence, right?

2 You’ve held several roles at AstraZeneca. How does it compare to working at Dicot Pharma?

A lot is similar, but of course the scale and scope are much bigger there. For example, I led an AstraZenecaproject where we divested a number of products, including Alvedon and Nezeril, to other pharmaceutical companies. That project was hugely successful and generated SEK 1.7 billion.

But at the same time, it’s more fun in a smaller company. At Dicot Pharma, I’m involved in every process and closer to decision-making, which means we can move much faster.

3 How would you describe the company culture?

Thanks to Elin’s leadership, it’s a more open and listening culture than other smaller companies I’ve worked for. At the same time, the direction is extremely clearly communicated, so I feel that we´re all aligned and understand why we´re doing what we do.

4 What’s the most important aspect of business development to successfully bring LIB-01 to market?

There are a number of things, but key is the ability to process relevant data and understand each market’s unique conditions, for example, in terms of market access and reimbursement, to develop optimal pricing strategies. It’s also about LIB-01’s positioning ahead of commercialization, in order to create the kind of pull effect we believe LIB-01 has strong potential to generate, both among prescribing physicians and future users.

Moreover, my focus now is on successfully communicating LIB-01’s strategic and financial value with the goal of finding one or more partners for whom we have a strategic fit, and who meet our requirements for financial and operational conditions.

5 What do your friends say when you tell them you’re working on a new potency drug?

The general reaction is: “Wow, that’s different –sounds exciting!” A few of them have actually become shareholders. They’ve realized that not much has happened in this market for a long time.

Management Report

The Board of Directors and the Chief Executive Officer of Dicot Pharma AB (publ), corporate identity number 559006–3490, hereby submit the annual report for the financial year 2024. The annual report is presented in Swedish kronor (SEK). The company is headquartered in Uppsala, Sweden.

General about the business

Dicot Pharma is a pharmaceutical company in the field of sexual health, developing the candidate LIB-01 into a completely new generation of erectile dysfunction treatment for the global market, with the goal of outperforming currently available drugs. There is a significant medical need for new and improved treatments for erectile problems. With longer duration of action, fewer side effects, and a differentiated mode of action, Dicot Pharma aims to help affected men and couples to a better quality of life.

A clinical development program is underway in which Dicot Pharma, in April 2024, completed a phase 1 trial demonstrating that LIB-01 has a very favorable saftey profile. In addition, a clear efficacy signal was observed, an effect that persisted for a full four weeks after a three-day dosing period. In the fourth quarter of 2024, a phase 2a clinical trial, also known as proof of concept, was initiated to validate LIB-01’s effect on erectile function.

Sales of erectile dysfunction drugs were estimated at approximately USD 5.2 billion in 2024. Global demand is growing rapidly, but about half of all men discontinue treatment with currently available medications – suggesting LIB-01 has strong market potential.

Dicot Pharma’s business model is to evaluate both financial and industrial partnerships during clinical development to bring LIB-01 to commercialization. Financial partnerships aim to attract long-term major investors. Industrial partnerships would involve out-licensing rights for development and commercialization – in return for revenue through signing fees, milestone payments, and royalties on future sales.

During the year, the company collaborated with around twenty established partners worldwide, including pharmaceutical manufacturers and medical experts in four continents. All team members except the CEO, CSO, and CTO, and from January 2025 also a Director of CMC, are hired on a consultancy basis or through outsourcing.

Results

As a pre-commercial development-stage company in clinical phase, Dicot Pharma has no revenues.

Expenses for the year, SEK 50.9 million, were higher than last year (38.9). The increase is mainly attributed to the increased

activity in clinical studies and thus its costs. The development of LIB-01 has been on track during the year, both in terms of cost and time. All development and project costs are expensed as incurred in the income statement, and consequently there are no capitalized development costs in the balance sheet. Consequently, no future amortization costs will arise for activities carried out up to the year-end.

Other research and development have also been prioritized, as well as efforts for IP protection, which have led to increased costs.

During the year, Dicot Pharma had three employees and personnel costs amounted to SEK 8.2 million (6.1), an increase attributable to the full-year effect of new recruitment and one-off items.

Financial position

The costs of taking the company through clinical phase 1 were financed by a rights issue of units in January 2023. As planned, part of that issue was also used for important preparations for phase 2a, such as manufacturing the study drug and contracting the CRO.

Ahead of the start of the 2a study in the fourth quarter of 2024, working capital was strengthened through a unit issue in August 2024. The issue was subscribed to 124% and the Board therefore fully utilized the over-allotment option granted by an extraordinary general meeting. In total, the company received SEK 134.9 million before costs. Due to the high subscription, the underwriters were not allotted any shares but chose to receive 99.2% of the underwriting compensation in units instead of cash.

At the end of the year, Dicot Pharma had a cash position of SEK 113.4 million. This meant that Dicot Pharma was well financed over phase 2a and for preparations for phase 2b, and with a cash position that covers the whole of 2025.

The warrants of series TO 6 that were included free of charge in the unit issue had an exercise period in March 2025 and were then utilized to 96%, which meant that Dicot Pharma received SEK 43.8 million before costs. Each option could be exercised to subscribe for two shares for SEK 0.19 each, which corresponded to 70% of a volume-weighted average price. The proceeds from TO 6 are intended to be used for initial funding of phase 2b, where a clinical study is expected to start in 2026, and in parallel to help evaluate a broadening of the product portfolio with new indications including metabolic diseases.

To ensure Dicot Pharma’s continued development and management, the Board and management continuously evaluate various financing options. The Board considers the company’s conditions to be good to obtain sufficient financing to maintain and cover costs for the rate of development that the company strives for. The company’s expected future development looks good, given a good financial position, good results in drug development and promising opportunities for broadening the product portfolio. However, drug development always involves risks.

Dicot Pharma’s business model for the erectile dysfunction drug candidate LIB-01 is to continuously evaluate financial and industrial partnerships during clinical development to take the candidate to commercialization. Financial partnerships mean to attract long-term major investors. Industrial partnerships may involve licensing of development and commercialization rights in one or more markets in exchange for payment at contract signing, milestone payments and future royalties.

Key risks

For a detailed description of risk factors, please refer to Dicot Pharma’s EU Growth Prospectus dated August 14, 2024.

Clinical trials – substance efficacy

The outcome of clinical trials cannot be guaranteed. Trials may demonstrate that the pharmaceutical substance does not produce the expected effect, or that serious side effects are identified. In the worst-case scenario, this may result in the denial of market approval and termination of the trials.

Clinical trials – study design and endpoints

The outcome of clinical trials cannot be guaranteed. Trials may show that endpoints are not met, meaning that the expected effect according to the chosen study design is not achieved. Regulatory requirements may also change over time; for example, authorities may revise which endpoints must be included or how they are defined. This may lead to more extensive and/or costly trials.

Dependence on raw materials

Dicot Pharma engages suppliers for the delivery of raw materials currently used to produce the starting material for LIB-01. Raw materials on a sufficient scale for commercialization are not yet secured, but several technologies are being evaluated, with biotechnology being the main track.. There is a risk that the raw material cannot be sourced or produced in sufficient quantity.

Manufacturing

All stages of the manufacturing process must be optimized, scaled up, and validated before commercialization. There is a risk that this will take longer and cost more than the company had anticipated. Therefore, there is also current uncertainty regarding the future cost of goods sold.

Collaboration partners

Dicot Pharma operates largely as a virtual organization, which means it relies on several close partners in critical business areas such as manufacturing, legal counsel, and intellectual property. The dependency on skilled partners and good cooperation is thus critical for the company.

Licensees

There is a risk of delays in finding suitable partners for out-licensing. There is also a risk that pharmaceutical companies may require additional studies before entering into an agreement.

Dependence on key personnel

Dicot Pharma’s future growth is considered to be strongly dependent on the knowledge, experience, and commitment of its executive management, board of directors, and other key individuals. If one or more key persons leave Dicot Pharma, this may have negative consequences for the business and results, as well as if new qualified key persons cannot be recruited to the desired extent.

Protection of intellectual property and know-how

There is a risk that Dicot Pharma may be unable to fully assert or protect its rights. There is also a risk that new competing products are developed in ways that circumvent Dicot Pharma’s existing or potential future intellectual property rights. Furthermore, Dicot Pharma relies on know-how, and it cannot be ruled out that competitors may develop equivalent knowledge or that Dicot Pharma fails to effectively protect its expertise or brand.

Capital requirements

It cannot be ruled out that Dicot Pharma will have a greater capital requirement in the future than is currently deemed necessary. There is no guarantee that such an increased capital requirement can be raised on terms that are desirable for the shareholders and the market.

Profitability and commercialization

It cannot be excluded that it will take longer than expected for Dicot Pharma to achieve continuous, stable profitability. This may involve the company not succeeding in out-licensing and/ or future launches not being successful in one or more markets, for example due to incorrect pricing, insufficient marketing or regulatory challenges.

Significant Events During the Financial Year

Phase 1

In January, results were presented from the first part of the clinical phase 1 study, showing that LIB-01 has a very good safety profile and that no serious adverse events were reported. As the study demonstrated that LIB-01 is well absorbed and provides good exposure, it confirmed that the oral drug formulation selected by the company is suitable for human administration.

In April, it was announced that an effect signal was also captured in self-assessment questionnaires and in measurements with RigiScan®: participants reported an improvement in erectile function. For some, the effect persisted at the end of the study after four weeks. The statistical analysis was completed in June and reinforces these positive results.

The results from the phase 1 study were summarized in an abstract co-authored by several leading names in sexual medicine. The results were presented in October at the largest sexual medicine conference in the US. The speaker was American sexual medicine expert Dr. Harin Padma-Nathan. The results were also published in the scientific journal The Journal of Sexual Medicine.

Phase 2a

In April, Dicot Pharma announced that preparations for a phase 2a clinical trial had begun, with study drug material manufactured and a CRO partner contracted.

In July, Dicot Pharma reported that a pre-IND meeting had been successfully held with the US Food and Drug Administration (FDA), with positive feedback on the LIB-01 development program. This is seen as a validation of the program’s quality and an important step toward a future application to include US study sites in upcoming clinical trials. It is also important to ensure that the current development plan is aligned with the regulatory requirements for future market approval in the United States. In July, the Dicot Pharma submitted an application to initiate the study, and in October, approval was received from the relevant authorities in Sweden, Denmark, and the Netherlands. On November 20, it was announced that the first participant had been dosed according to the communicated timeline. The clinical part of the study is expected to run through mid-2025, followed by statistical analysis before results can be reported. The study is placebo-controlled and double-blinded and is set to include approximately 140 participants across six clinics. It is fully financed through the unit issue conducted in August.

Research findings – metabolic diseases

During the year, new results from the LIB-01 development program showed that the substance appears to be able to affect metabolic diseases. This may include conditions such as obesity, diabetes and high blood pressure. A thorough market analysis conducted by an external party has been matched with the company’s own available results in metabolic diseases, which together strongly motivates further research for a number of priority indications. As the financial situation allowed, in addition to the development of the potency drug candidate LIB-01, a preclinical development program in metabolic diseases was therefore initiated in September.

Patents

In January, Dicot Pharma submitted a patent application for a new production method for the starting material of LIB-01. The patent concerns a proprietary approach to cell cultivation, developed in collaboration with Uppsala University. The method enables the use of cultured plant cells for producing the starting material, a well-established technique for large-scale commercial manufacturing.

In June, Dicot Pharma submitted a patent application for the treatment of several new indications. Based on new data from the LIB-01 development program, the substance appears to affect metabolic diseases.

Dicot Pharma announced in October that the US Patent and Trademark Office had issued a Notice of Allowance for three patent applications related to LIB-01. These patents were granted in the US in November and December. The patent family is central to the company’s IP strategy, as it strengthens both product and method protection through 2042 and includes what is known as “Composition of Matter,” meaning that it covers the active substance in LIB-01 and is considered particularly important for strong patent protection.

Financing

On June 30, the Board of Directors announced its intention to carry out a rights issue, subject to approval at an extraordinary general meeting, to finance the phase 2a study. The EGM held on August 1, 2024, authorized the Board to proceed with the issue, consisting of shares and warrants. The largest shareholders, the company’s founder, and all Board members and executives participated in the offering.

The unit issue was carried out in August and subscribed to 124%. Due to strong demand, the overallotment option approved by the meeting was exercised in full, although not all interest could be met. The contracted guarantors received no allocation, but all those entitled chose to offset their guarantee compensation through units instead of cash. In total, Dicot Pharma raised SEK 134.9 million before issue costs.

In October, Nasdaq Stockholm announced that Dicot Pharma met the listing requirements for First North Growth Market Sweden. As part of the company’s growth and internationalization, the company therefore changed marketplace on November 7 from Spotlight Stock Market.

General meetings

At the Annual General Meeting held on May 6, all Board members and the auditor were re-elected. The meeting granted discharge from liability to the Board members and CEO for the financial year 2023. The meeting also resolved to change the company’s name to Dicot Pharma AB, to better position the company in an international context.

An extraordinary general meeting was held on August 1. The meeting adopted new Articles of Association, adjusting the limits for share capital and number of shares. The meeting authorized the Board to resolve on a preferential rights issue, an overallotment option of up to 5% of shares after the issue, and a directed issue to guarantors to allow offsetting of guarantee compensation. Finally, the meeting approved an incentive program for employees, involving a directed issue of warrants with a three-year vesting period.

Significant Events After the Financial Year

More than half of the approximately 140 participants in the phase 2a study had been dosed by early February 2024. The recruitment rate is high and on schedule. The study is expected to be reported in mid-2025.

The unit issue in August 2024 included warrants of series TO 6 at no cost. These could be exercised in March 2025 to subscribe for shares at a price of SEK 0.19 per share, corresponding to 70% of a volume-weighted average price. By a 96% subscription rate, the company raised SEK 43.8 million before costs.

In February 2025, Dicot Pharma was selected for the fourth consecutive year to present its study results at the European Society for Sexual Medicine, Europe’s largest conference in the field. Professor François Giuliano, urologist and expert in male sexual health, gave a podium presentation of the phase 1 clinical study results as well as the design of the ongoing phase 2a study, in which he is involved as a medical expert.

Cap table as of December 31, 2024

Multi-year comparison

Refer to notes for key ratio definitions

Proposal for appropriation of profits

At the disposal of the Annual General Meeting: (SEK) Loss brought forward -142,091,362

The Board of Directors proposes that the following amount will be carried over in the accounts 99,215,541

For further information regarding the company’s financial results and position, please refer to the subsequent income statement and balance sheet, along with accompanying notes.

Income Statement

Balance Sheet

Cash Flow Statement

Change in Equity

Unconditional shareholder’s contributions as of the balance sheet date amount to SEK 1,331,159 (1,331,159).

Note 1 – Accounting and valuation principles

The annual report has been prepared in accordance with the Annual Accounts Act and BFNAR 2012:1 Annual report and consolidated accounts (K3). The accounting principles are unchanged compared to the previous year.

Valuation principles

Receivables

Receivables have been recognised at the amounts at which they are expected to be received.

Other assets, provisions, and liabilities

Other assets, provisions, and liabilities have been measured at their acquisition cost unless otherwise stated below.

Revenue recognition

Revenues have been recognised at the fair value of what has been or will be received and is recognised to the extent that it is probable that the economic benefits will be realised by the company and the revenue can be calculated reliably.

Government grants

Government grants are recognised at fair value when there is reasonable assurance that the grant will be received and that the company will fulfil all related conditions. Grants received are recognised as other operating income in the income statement.

Intangible fixed assets

The company uses the cost model for internally generated intangible assets. This means that all development costs are expensed as incurred.

Note 2 – Other Operating Income

Tangible fixed assets

Property, plant and equipment are recognised at cost less accumulated depreciation and any impairment losses. The assets are depreciated on a straight-line basis over the assets’ estimated useful life. The useful life is reassessed at each balance sheet date. The following useful lives are applied:

Equipment, tools and machinery: 5 years

Borrowing costs

The borrowing costs incurred when the company borrows capital are recognised in the in the income statement in the period in which they arise.

Income tax

Current tax is the income tax for the current financial year which relates to the taxable profit for the year and that part of the previous financial year’s income tax that has not yet been recognised. Current tax is assessed at the probable amount based on the tax rates and tax regulations applicable on the balance sheet date.

Deferred tax relating to future tax effects is not recognised in the income statement and balance sheet. The total unutilised deficit amounts to SEK 247.2 (170.2) million. Considering that the company has consistently reported losses, and there is some uncertainty when tax surpluses arise, no deferred tax asset related to the loss carryforward is recognized.

Note 3 – Remuneration to Auditors

Note 4 – Staff

5 – Equipment

Note 6 – Information on Share Capital

The number of shareholders at year-end was 8,135 (5,041), an increase of 61% during the year. Since November 7, 2024, the share has been listed on Nasdaq First North Stockholm under the name DICOT. Prior to that, since June 20, 2018, the share was listed on Spotlight Stock Market.

(250,000)

- board of directors (300,000)

(6,000,000)

In total, there are six outstanding incentive programs in Dicot Pharma. The price of the warrants and future subscription price is based on the Black & Scholes model. There is no tax benefit for the warrant holders warrant holders, and therefore not any related costs for the company.

In August 2024, an extraordinary general meeting decided to introduce an employee stock option program for employees of the company. In order to exercise the options, the employee must remain employed and contribute to the company’s development for at least three years. The accounting cost that arises given that the options are exercised has been calculated to a total of SEK 0.3 million and will be expensed over 36 months starting October 1, 2024.

Note 7 – Definition of Key Ratios

Key Ratios

Equity Ratio (%)

Net Sales

Result After Financial Items

Adjusted equity (equity and untaxed reserves, net of deferred tax) as a percentage of total assets.

The main revenues of the business, invoiced costs, incidental revenues, and revenue adjustments.

Results after financial income and expenses but before taxes.

Note 8 – Significant events after the end of the financial year

Uppsala, on the day indicated by our electronic signatures

Eva Sjökvist Saers Chairman of the Board

Per-Göran Gillberg Director

Fredrik Buch Director

Michael Zell Director

Mikael von Euler-Chelpin Director

Jan-Eric Österlund Director

Elin Trampe Chief Executive Officer

Our audit report has been issued on the day indicated by our electronic signatures.

Öhrlings PricewaterhouseCoopers AB

Lars Kylberg

Authorized Public Accountant

Auditor’s report

To the general meeting of the shareholders of Dicot Pharma AB, corporate identity number 559006-3490

Report on the annual accounts

Opinions

We have audited the annual accounts of Dicot Pharma AB for the year 2024. The annual accounts of the company are included on pages 13-26 in this document.

In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of Dicot Pharma AB as of 31 December 2024 and its financial performance for the year then ended in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts.

We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for Dicot Pharma AB.

Basis for Opinions

We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of Dicot Pharma AB in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

Other Information than the annual accounts

This document also contains other information than the annual accounts and is found on pages 1-12. The Board of Directors and the Managing Director are responsible for this other information.

Our opinion on the annual accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information.

In connection with our audit of the annual accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts. In this procedure we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and that they give a fair presentation in accordance with the Annual Accounts Act. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts, The Board of Directors and the Managing Director are responsible for the assessment of the company’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intend to liquidate the company, to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibility

Our objectives are to obtain reasonable assurance about whether the annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts.

A further description of our responsibility for the audit of the annual accounts is available on Swedish Inspectorate of Auditors’ website: www.revisorsinspektionen.se/revisornsansvar. This description is part of the auditor´s report.

Report on other legal and regulatory requirements

Opinions

In addition to our audit of the annual accounts, we have also audited the administration of the Board of Directors and the Managing Director of Dicot Pharma AB for the year 2024 and the proposed appropriations of the company’s profit or loss.

We recommend to the general meeting of shareholders that the loss be dealt with in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year.

Basis for Opinions

We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of Dicot Pharma AB in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company’s type of operations, size and risks place on the size of the company’s equity, consolidation requirements, liquidity and position in general.

The Board of Directors is responsible for the company’s organization and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s financial situation and ensuring that the company’s organization is designed so that the accounting, management of assets and the company’s financial affairs otherwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfill the company’s accounting in accordance with law and handle the management of assets in a reassuring manner.

Auditor’s responsibility

Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect:

• has undertaken any action or been guilty of any omission which can give rise to liability to the company, or

• in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.

Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company’s profit or loss are not in accordance with the Companies Act.

A further description of our responsibility for the audit of the administration is available on Swedish Inspectorate of Auditors’ website: www.revisorsinspektionen.se/revisornsansvar. This description is part of the auditor´s report.

Uppsala on the date indicated by our electronic signature

Öhrlings PricewaterhouseCoopers AB

Lars Kylberg

Authorized Public Accountant

This is a translation of the Swedish language original. In the event of any differences between this translation and the Swedish language original, the latter shall prevail.