Financial Analysis

3. Commitments and Contingencies License Agreement O n May 7, 2019, the Company entered into a license agreement with Takeda pursuant to which it was granted an exclusive license to commercialize vonoprazan fumarate in the United States, Canada and Europe, or the Takeda License. The Company also has the right to sublicense its rights under the agreement, subject to certain conditions. The agreement will remain in effect, on a country-by-country and product-by-product basis, until the later of (i) the expiration of the last to expire valid patent claim covering vonoprazan fumarate alone or in combination with at least one other therapeutically active ingredient, (ii) the expiration of the applicable regulatory exclusivity and (iii) 15 years from the date of first commercial sale, unless earlier terminated. The Company may terminate the Takeda License upon six months written notice. The Company and Takeda may terminate the Takeda License in the case of the other partys insolvency or material uncured breach. Takeda may terminate the Takeda License if the Company challenges, or assists in challenging, licensed patents . I n consideration of the Takeda License, the Company (i) paid Takeda $ 25 million in cash, (ii) issued Takeda 1,084,000 shares of its common stock at a fair value of $ 5.9 million, (iii) issued the Takeda Warrant to purchase 7,588,000 shares of its common stock at an exercise price of $ 0.00004613 per share at an initial fair value of $ 47.9 million, and (iv) issu …

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5 . Debt Total debt consists of the following (in thousands): June 30, December 31, 2026 2025 Long-term debt, current portion $ $ Long-term debt, non-current portion 175,000 216,495 Unamortized debt discount ( 10,413 ) ( 7,408 ) Total debt, net of debt discount $ 164,587 $ 209,087 On September 17, 2021, or the Closing Date, the Company entered into a Loan and Security Agreement, or, the Loan Agreement, with Hercules Capital, Inc., or Hercules, in its capacity as administrative agent and collateral agent and as a lender, or, in such capacity, the Agent or Hercules, and the other financial institutions that from time to time become parties to the Loan Agreement as lenders. The Loan Agreement initially provided for term loans in an aggregate principal amount of up to $ 200 million under multiple tranches. The Company has entered into several amendments to the Loan Agreement since the initial advance and the current loan terms provided for in the latest amendment are described below. On February 25, 2026, or the Fifth Amendment Closing Date, the Company entered into the Fifth Amendment to the Loan and Security Agreement, or the Fifth Loan Amendment, which, among other things, (i) provided for a new term loan advance of $ 175 million, or the Term Loan Advance, the proceeds of which, along with cash on the Company's balance sheet, were used to repay in full the existing secured obligations outstanding under the Loan Agreement, including principal, capitalized payment-in-kind intere …

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7. Stockholders Equity Common Stock From inception through June 30, 2026 , the Company sold 41,612,032 shares of common stock and 3,859,000 pre-funded warrants, generating net proceeds of approximately $ 665.3 million, after deducting underwriting discounts, commissions and offering costs. Underwritten Public Offering In January 2026, the Company sold 6,875,000 shares of common stock at a price of $ 16.00 per share and pre-funded warrants to purchase 1,250,078 shares of common stock at a price of $ 15.999 per pre-funded warrant, which represents the per share price for the common stock less the $ 0.001 per share exercise price for each such pre-funded warrant. The Company received gross proceeds of $ 130.0 million, before deducting underwriting discounts and commissions. The net purchase price after deducting the underwriting discounts and commissions and other offering expenses, was $ 15.01 per share or net proceeds of $ 122.0 million. Certain affiliates of Frazier Life Sciences IX, L.P., or Frazier, a significant stockholder and Dr. James Topper, who currently serves on the Company's Board of Directors, share voting and investment power of the securities held by Frazier. Frazier participated in the offering by purchasing pre-funded warrants on the same terms as all other investors at a purchase price of $ 15.999 , which represents the per share public offering price for the common stock less the $ 0.001 per share exercise price for each pre-funded warrant. Each pre-funded w …

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4. Lease Commitments As of June 30, 2026, the Company had operating leases for office space in both Buffalo Grove, Illinois and Florham Park, New Jersey, with weighted average remaining lease terms of 4.0 years and 4.7 years, respectively. In September 2025, the Company entered into amendments to its lease agreements for the New Jersey office space to extend the terms of the leases through February 2031. All operating leases contain an option to extend the term for one additional five year period , which was not considered in the determination of the right-of-use asset or lease liability as the Company did not consider it reasonably certain that it would exercise such options. The total rent expense for the three months ended June 30, 2026 and 2025 was $ 0.2 million and $ 0.3 million, respectively. Total rent expense for the six months ended June 30, 2026 and 2025 was $ 0.4 million and $ 0.5 million, respectively. Total short-term lease costs relating to leased vehicles were $ 1.9 million and $ 1.8 million for the three months ended June 30, 2026 and 2025, respectively. Total short-term lease costs relating to leased vehicles were approximately $ 3.7 million and $ 3.6 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, the future minimum annual lease payments under the operating leases were as follows (in thousands): Year ending December 31: 2026 $ 332 2027 719 2028 736 2029 753 2030 702 Thereafter 100 Total minimum lease payments 3,342 …

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Recently Adopted Accounting Standards There were no recently adopted accounting standards which would have a material impact on the Company's unaudited interim condensed financial statements. Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03 - Disaggregation of Income Statement Expenses , which requires more detailed disclosures about specified categories of expenses (including employee compensation, depreciation, and amortization) included in certain expense captions presented on the face of the income statement. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027, may be applied prospectively or retrospectively, and allows for early adoption. This standard is not expected to have an impact on any amounts recognized in our financial statements, but will result in more detailed disclosures addressing the categorization of expenses. The Company assesses the adoption impact of recently issued accounting standards by the Financial Accounting Standards Board or other standard setting bodies on the Company's financial statements as well as material updates to previous assessments, if any, from the Companys 2025 Form 10-K. There were no new accounting standards issued in the second quarter of 2026 that are expected to materially impact the Company. …

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10. Restructuring In May 2025, the Company implemented a cost reduction and organizational restructuring plan to reduce cash burn and focus resources on commercial execution. In connection with the restructuring, the Company's workforce was reduced by 26 employees, or approximately 6 %, including certain leadership changes all designed to right-size the organization. In 2025, the Company incurred restructuring charges of $ 9.2 million consisting of one-time termination benefits to affected employees for severance, non-cash stock-based compensation c osts, healthcare benefits and outplacement assistance. The costs were included in research and development and selling, general, and administrative expenses on the Companys condensed consolidated statement of operations and comprehensive loss. As of June 30, 2026, the Company had paid substantially all of the accrued restructuring charges. The following table summarizes activity related to the restructuring accrual during the six months ended June 30, 2026 and 2025 (in thousands): 2026 2025 Restructuring accrual as of January 1 $ 492 $ Restructuring expenses incurred 7,970 Cash paid ( 405 ) ( 2,105 ) Non-cash expenses ( 3,221 ) Restructuring accrual as of June 30 $ 87 $ 2,644 …

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8. Revenue Recognition To date, our only source of revenue has been from the U.S. sales of VOQUEZNA products, which the Company began selling during the fourth quarter of 2023. The Company records its best estimate of chargebacks, sales returns, sales discounts and other reserves to which customers are likely expected to be entitled to as contra accounts receivable charges, and within accrued expenses if payable to a third-party or related to product returns on the condensed balance sheets. During the six months ended June 30, 2026 and 2025 , the Company recognized $ 132.6 million and $ 68.0 million, respectively, of net product revenues related to sales of VOQUEZNA, VOQUEZNA DUAL PAK and VOQUEZNA TRIPLE PAK. The following table provides a summary of the Company's revenue allowances and related accruals for the six months ended June 30, 2026, which have been deducted in arriving at product revenues, net (in thousands): Customer Credits, Discounts and Allowances Rebates, Returns and Co-Pay Assistance (contra accounts receivable) (accrued expenses) Total Balance as of January 1, 2026 $ 10,646 $ 65,462 $ 76,108 Accruals 36,700 129,966 166,666 Utilizations ( 38,674 ) ( 107,679 ) ( 146,353 ) Balance as of June 30, 2026 $ 8,672 $ 87,749 $ 96,421

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9. Segment Information The Company's chief operating decision maker, or CODM, the Chief Executive Officer , manages the Companys business activities as a single reportable segment. The segment derives its current revenues from the sale of VOQUEZNA products. Accordingly, the CODM uses net income (loss) to measure segment profit or loss, allocate resources and assess performance. Further, the CODM reviews and utilizes functional expenses (research and development, general and administrative, sales and marketing and stock-based compensation) to manage the Companys operations. Other segment items included in net loss are interest income, interest expense and other expense, which are reflected in the condensed statements of operations and comprehensive loss. The measure of segment assets is reported on the condensed balance sheets as total assets. The following table presents selected financial information with respect to the Companys single operating segment for the six months ended June 30, 2026 and 2025 (in thousands): Six Months Ended June 30, 2026 2025 Product revenue, net $ 132,575 $ 68,023 Less: Cost of revenue 27,091 8,762 Research and development 13,660 15,280 General and administrative 15,187 19,521 Sales and marketing 83,833 149,434 Stock-based compensation 12,246 13,812 Interest income ( 3,246 ) ( 4,427 ) Interest expense 30,900 35,588 Other expense, net 855 179 Segment net loss $ ( 47,951 ) $ ( 170,126 ) …

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