PharmAla Executes Binding Letter of Intent for Formation of Special Purpose Vehicle to Develop Patented Novel MDXX Molecule APA-01

Executive Summary of April 27, 2026 Release

• PharmAla Biotech entered a binding Letter of Intent (LOI) with Aluvaris Inc. to form a Special Purpose Vehicle (SPV).
• The SPV is dedicated to clinical and regulatory development of APA-01, a novel MDXX class molecule for psychological trauma, TBI, and Stroke.
• PharmAla licenses global IP portfolio to the SPV in exchange for a one-time license fee and 3% perpetual royalty on net sales.
• Aluvaris is responsible for securing seed capital (Funding Threshold) required to finalize the IP license.
• Diteba Inc. retained as CRO for analytical and scientific services under GLP/GMP standards.
• Definitive agreement target date: June 8, 2026.

Evaluation of Most Recent News

• Nature of Impact: The LOI represents a monetization strategy for non-core IP without immediate equity dilution, provided the Funding Threshold is met by Aluvaris.
• Certainty Level: Conditional on Aluvaris securing capital and due diligence completion by June 8, 2026. LOIs are often non-binding regarding funding until definitive agreements are signed.
• Financial Implication: Potential future royalty stream (3%) and one-time fee. No immediate cash infusion to PharmAla's balance sheet unless Aluvaris meets the threshold immediately.
• Strategic Fit: Diversifies pipeline beyond LaNeo MDMA and ALA-002 into TBI/Stroke indications, reducing reliance on PTSD/MDMA regulatory outcomes alone.

Core Business

• Flagship Product: LaNeo™ MDMA (clinical-grade). Primary revenue driver through clinical trial supply and Australian commercial market via Cortexa JV.
• Pipeline Assets: ALA-002 (next-gen MDXX molecule with reduced cardiovascular signature) and APA-01 (novel MDXX for TBI/Stroke).
• Operations: GMP manufacturing in Australia and U.S. distribution sites established. Supply chain active for VA/DHA trials.