Financial Analysis

10. Commitments and contingencies Leases In January 2023, the Company entered into a lease agreement for office and laboratory space in Cambridge, Massachusetts. The Company concluded that the lease term was three years, representing the non-cancelable lease period. The lease expired in March 2026. In December 2021, the Company entered into a lease of office and laboratory space in Cambridge, United Kingdom. The lease has a contractual period of 10 years, cancelable by the Company on the fifth anniversary of the lease commencement date. The Company concluded that the initial lease term was five years, representing the non-cancelable lease period. In December 2025, the Company entered into a deed of variation to the lease, pursuant to which (i) the Company elected not to cancel the lease on the fifth anniversary of the lease commencement date and (ii) the annual rent was increased effective in December 2026, payable quarterly in advance following a nine-month rent-free period from December 2026 to September 2027. The Company accounted for the deed of variation as a modification to the existing lease and remeasured the right-of-use asset and lease liability based on the present value of remaining lease payments, discounted at the Companys incremental borrowing rate, and recognized an additional right-of-use asset and lease liability of $12.4 million on the modification date. The Company has a contractual right to renew the lease for a further 10-year period, which also may be c …

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7. Share-based compensation Equity plans 2024 Inducement Plan In July 2024, the Companys board of directors approved the 2024 Inducement Plan. The 2024 Inducement Plan allows for the granting of nonqualified share options, RSUs, and other equity awards under the plan to persons not previously an employee or director of the Company, or following a bona fide period of non-employment, as an inducement material to such persons entering into employment with the Company. Share options granted under the 2024 Inducement Plan have a 10-year contractual life and generally vest over a four-year service period with 25% of the award vesting on the first anniversary of the vesting commencement date and the balance thereafter in 36 equal monthly installments. I n the event of a change of control of the Company, as defined in the 2024 Inducement Plan, any outstanding awards under the 2024 Inducement Plan will vest in full immediately prior to such change of control. The Company initially reserved 1,500,000 of its ordinary shares, or the equivalent number of ADSs, for the issuance of awards under the 2024 Inducement Plan. As of June 30, 2026, there were 1,092,894 shares available for future issuance under the 2024 Inducement Plan. As of June 30, 2026, there were options to purchase 407,106 shares outstanding under the 2024 Inducement Plan. 2020 Equity Incentive Plan In June 2020, the Companys shareholders first approved the 2020 Plan, under which the Company may grant market value options, ma …

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3. Fair value of financial assets and liabilities Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: Level 1, quoted prices in active markets for identical assets or liabilities; Level 2, observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data; Level 3, unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The carrying values of cash, cash equivalents and restricted cash, research and development incentives receivable, prepaid expenses and other current assets, accounts payable and accrued expenses and other current liabilities approximate their fair values due to the short-term nature of these assets and liabilities. Cash, cash equivalents and restricted cash The Company considers all highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less at the date of purchase to be cash equivalents. …

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9. Income taxes During the three and six months ended June 30, 2026, the Company recorded an income tax provision of $0.1 million and $0.3 million, respectively, and during the three and six months ended June 30, 2025, the Company recorded an income tax benefit of $0.2 million and $1.3 million, respectively. The Company is subject to corporate taxation in the U.K. Due to the nature of its business, the Company has generated losses since inception and has therefore not paid U.K. corporation tax. The income tax provision recognized during the three and six months ended June 30, 2026 was primarily due to timing differences associated with discrete items for the settlement of RSUs. The benefit from income taxes recognized during the three and six months ended June 30, 2025 represents the tax impact from operating activities in the United States, which has generated taxable income based on intercompany service arrangements. Deferred tax assets in the United States do not have a valuation allowance against them because of profits that will be generated by an intercompany service agreement. The Company regularly assesses its ability to realize its deferred tax assets. Assessing the realization of deferred tax assets requires significant judgment. In determining whether its deferred tax assets are more likely than not realizable, the Company evaluated all available positive and negative evidence, and weighed the evidence based on its objectivity. After consideration of the evidence, …

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Recently issued accounting pronouncements not yet adopted In November 2024, the FASB issued ASU No. 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40) (ASU No. 2024-03), which requires more detailed disclosures about specified categories of expenses included in certain expense captions presented on the face of the consolidated statements of operations and comprehensive loss, including employee compensation, depreciation and amortization. ASU No. 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either prospectively to financial statements issued for reporting periods after the effective date of the ASU or retrospectively to all prior periods presented. The Company is currently evaluating the impact of the adoption of ASU No. 2024-03 on its consolidated financial statement disclosures. In September 2025, the FASB issued ASU No. 2025-06, Intangibles Goodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU No. 2025-06), which amends certain aspects of the accounting for and disclosure of software costs under ASC Subtopic 350-40, Internal-Use Software . The standard is effective for fiscal years beginning after December 15, 2027 and interim periods within fiscal years beginning after Decembe …

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8. Significant agreements For the three and six months ended June 30, 2026 and 2025, the Company recognized revenue for its collaborations with Bayer Consumer Care AG (Bayer), Novartis Pharma AG (Novartis), and Genentech, Inc. (Genentech). The following table summarizes the revenue recognized in the Companys condensed consolidated statements of operations and comprehensive loss from these arrangements (in thousands): Three Months Six Months Ended Ended June 30, June 30, 2026 2025 2026 2025 Collaboration revenue Bayer $ 629 $ 1,009 $ 1,516 $ 1,857 Novartis 1,491 2,896 Genentech 420 8,144 Total collaboration revenue $ 629 $ 2,920 $ 1,516 $ 12,897 Except as otherwise disclosed below, there have been no material changes to the contractual terms, or the associated accounting treatments for recognizing revenue, of the Companys significant agreements during the three and six months ended June 30, 2026 and 2025. Please refer to Note 9. Significant agreements to the Companys audited consolidated financial statements for the year ended December 31, 2025, included in the Companys 2025 Annual Report for further details on the Companys significant agreements. Bayer Collaboration Agreement On May 4, 2023, the Company and Bayer entered into a collaboration and license agreement (the Bayer Collaboration Agreement), pursuant to which the parties will perform research and discovery activities under a mutually agreed upon research plan during a research term up to a specified number of years pe …

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12. Segments and geographic information The Company operates and manages its business as a single operating segment , which is developing a unique class of chemically synthesized medicines based on its proprietary platform. The Companys chief operating decision maker (CODM) is the Companys Chief Executive Officer (CEO). The CODM reviews consolidated operating results, manages the business on a consolidated basis and utilizes consolidated net loss from the consolidated statements of operations and comprehensive loss as the primary measure of segment profit or loss in making decisions surrounding allocating resources and assessing performance of the Company. The CODM is regularly provided detailed expense information, including expenses by program and expense category, and the CODM makes decisions surrounding capital and personnel allocation using this information on a consolidated basis. The following table presents information about the Companys single operating segment, including significant segment expenses, for the three and six months ended June 30, 2026 and 2025 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Collaboration revenue $ 629 $ 2,920 $ 1,516 $ 12,897 Significant segment expenses Research and development: Zelenectide pevedotin (Nectin-4 BDC) 19,565 44,396 40,629 76,743 Nuzefatide pevedotin (EphA2 BDC) 2,165 1,828 4,686 4,346 BT1702 (MT1-MMP BRC) 338 558 Bicycle tumor-targeted immune cell agonists 356 (15) 891 1,112 Disc …

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2. Summary of significant accounting policies The Companys significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2025 included in the Companys Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission (the SEC), on March 17, 2026 (the 2025 Annual Report). Since the date of such consolidated financial statements, there have been no changes to the Companys significant accounting policies, other than those disclosed below. Use of estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition, the accrual for research and development expenses and research and development incentives receivable, share-based compensation expense, valuation of right-of-use assets and lease liabilities and income taxes, including the valuation allowance for deferred tax assets. The Company bases its estimates on historical experience, known trends and other market-specific or other relevan …

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6. Ordinary shares The Companys ordinary shares are divided into two classes: (i) ordinary shares and (ii) non-voting ordinary shares. Each holder of ordinary shares is entitled to one vote per ordinary share and to receive dividends when and if such dividends are recommended by the board of directors and declared by the shareholders. Holders of American Depositary Shares (ADSs) are not treated as holders of the Companys ordinary shares, unless they withdraw the ordinary shares underlying their ADSs in accordance with the deposit agreement and applicable laws and regulations. The depositary is the holder of the ordinary shares underlying the ADSs. Holders of ADSs therefore do not have any rights as holders of the Companys ordinary shares, other than the rights that they have pursuant to the deposit agreement with the depositary. The non-voting ordinary shares have the same rights and restrictions as the ordinary shares and otherwise rank pari passu in all respects with the ordinary shares except for the following: a holder of non-voting ordinary shares shall, in relation to the non-voting ordinary shares held, have no right to receive notice of, or to attend or vote at, any general meeting of shareholders save in relation to a variation of class rights of the non-voting ordinary shares; the non-voting ordinary shares shall be re-designated as ordinary shares by the Companys board of directors, or a duly authorized committee or representative thereof, upon receipt of a re-desi …

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13. Subsequent events In July 2026, Bayer provided the Company with a notice of termination of the Bayer Collaboration Agreement, effective in September 2026 after a contractual 60-day notice period. As a result, the Company expects to recognize the remaining deferred revenue under the arrangement of approximately $33.2 million in the third quarter of 2026.

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