Satellos spends $4M (U.S.) on R&D in Q3 2025

Mr. Frank Gleeson reports SATELLOS REPORTS THIRD QUARTER 2025 RESULTS AND ANNOUNCES APPOINTMENT OF MARK NAWACKI TO BOARD OF DIRECTORS Satellos Bioscience Inc. has released its financial results for the third quarter ended Sept. 30, 2025, and has provided other corporate and clinical updates. "The second half of 2025 represents another important milestone for Satellos as we advance toward initiating the global phase 2 pediatric study of SAT-3247 and continue to generate meaningful data in adults with Duchenne," said Wildon Farwell, MD, Satellos chief medical officer. "With multiple regulatory submissions completed and our long-term adult clinical study LT-001 now under way, our focus is firmly on clinical execution for these patients." As Satellos advances its clinical programs and matures as an organization, the company is also taking steps to ensure alignment with its long-term value strategy. This includes maintaining a strong and independent board of directors with the experience to guide the next phases of development and growth. "We are pleased to strengthen our strategic leadership with the addition of Mark Nawacki to the board of directors," said Frank Gleeson, co-founder and chief executive officer of Satellos. "Mark's extensive experience founding and developing organizations through disciplined growth, acquisitions and licensing will add valuable perspective as we prepare for the next stage of SAT-3247 development and Satellos' continued growth." Corporate update In November, 2025, Satellos appointed Mark Nawacki, co-founder, president and former chief executive officer of Searchlight Pharma, to its board of directors. Mr. Nawacki brings more than two decades of experience across pharmaceuticals, corporate development, and mergers and acquisitions. He co-founded Searchlight Pharma in 2015 and served as president and CEO from its inception till May, 2024, guiding the organization's expansion through acquisitions, in-licensing and commercial growth into one of the three largest specialty pharmaceutical businesses in Canada. Searchlight was acquired by Apotex in June, 2024, and Mark continues to lead Searchlight, now the innovative, branded division of Apotex, as president. His earlier career includes senior corporate development roles at Paladin Labs and board positions with health care companies. Mr. Nawacki's transactional and leadership experience will support Satellos as it advances SAT-3247 through clinical development and provides perspectives on organizational growth. SAT-3247 clinical progress In September, 2025, Satellos announced the submission of an investigational new drug (IND) application to the United States Food and Drug Administration (FDA) to initiate a phase 2 clinical trial of SAT-3247 in ambulatory children with Duchenne muscular dystrophy (Duchenne or DMD). Parallel global regulatory filings were submitted in the United Kingdom, Europe, Serbia and Australia, with reviews progressing as expected. On Nov. 13, 2025, Satellos submitted a regulatory filing to Health Canada. The company continues to expect to enroll the first patient into the phase 2 study by the end of calendar 2025. Additionally, Satellos presented new data at the 30th Annual Congress of the World Muscle Society that demonstrated tolerability and initial efficacy of SAT-3247 in adults with DMD. Phase 1b participants demonstrated a 118.6-per-cent mean improvement in maximum grip strength in the dominant hand and 97.9 per cent in the non-dominant hand. Phase 1b participants also exhibited a 5.8-per-cent mean improvement in respiratory function as measured by predicted forced vital capacity (FVC). The first patient was dosed in the long-term follow-up, open-label study (LT-001) of SAT-3247 in adult males with DMD. The study will assess longer-term safety, changes in muscle composition by MRI and functional outcomes in participants. Initial results from patients returning from the phase 1b trial are anticipated following a further two months of drug treatment for a total of three months. Satellos currently expects to report these data and findings during calendar Q1 2026. Satellos plans to enroll additional patients beyond those returning from the previously reported study and such plans include expansion of LT-001 into the United States. Financial results (in United States dollars) Satellos had cash and cash equivalents and short-term investments of $34.6-million as of Sept. 30, 2025, compared with $48.5-million at Dec. 31, 2024. The decrease in funds available is due to the net loss in the current year period, as well as increased deposits related to the planned phase 2 clinical trial. For the three-months ended Sept. 30, 2025, Satellos reported a net loss of $5.8-million (three cents loss per share), compared with a net loss of $6.6-million (six cents loss per share) for the three-months ended Sept. 30, 2024. The decrease in net loss for the three-month period ended Sept. 30, 2025, compared with the same periods in 2024 was primarily a result of an impairment of $2.9-million to fully write down the remaining carrying value of an intangible asset recognized in the three months ended Sept. 30, 2024. This decrease was partially offset by increased research and development (R&D) and general and administrative (G&A) expenses. R&D expenses increased to $4.0-million for the three-months ended Sept. 30, 2025, compared with $2.4-million for the three-months ended Sept. 30, 2024. The increase in R&D expenses was the result of increased clinical costs associated with continuing and planned clinical trials, partially offset by decreased CMC activities related to the process development and manufacturing of SAT-3247 for clinical use in the prior-year period and preclinical costs due to IND enabling studies conducted to support the clinical regulatory filings for SAT-3247 as the company prepared with initiate phase 1 clinical development in Q3 2024. G&A expenses increased to $2.0-million for the three-months ended Sept. 30, 2025, as compared with $1.3-million for the three-months ended Sept. 30, 2024. The increase in general and administrative expenses in the current year period is primarily the result of increased salary and professional fees related to changes in headcount to support expanded operations and non-cash stock-based compensation expense due to new grants issued in the current period. The Satellos consolidated interim financial statements for the three and six months ended June 30, 2025, and the related management discussion and analysis will be available on SEDAR+. About SAT-3247 SAT-3247 is a proprietary, oral, small molecule drug being developed by Satellos as a novel treatment to regenerate skeletal muscle that is lost in Duchenne muscular dystrophy and other degenerative or injury conditions. Satellos is advancing SAT-3247 as a potential treatment for DMD, independent of dystrophin and regardless of exon mutation status. About Satellos Bioscience Inc. Satellos is a clinical-stage drug development company focused on restoring natural muscle repair and regeneration in degenerative muscle diseases. Through its research, Satellos has developed SAT-3247, a first-of-its-kind, orally administered small molecule drug designed to address deficits in muscle repair and regeneration. SAT-3247 targets AAK1, a key protein that Satellos has identified as capable of replacing the signal normally provided by dystrophin in muscle stem cells to effect repair and regeneration. By restoring this missing dystrophin signal in DMD, SAT-3247 enables muscle stem cells to divide properly and more efficiently, promoting natural muscle repair and regeneration. SAT-3247 is currently in clinical development as a potential disease-modifying treatment initially for DMD. Satellos also is leveraging its proprietary discovery platform MyoReGenX to identify additional muscle diseases or injury conditions where restoring muscle repair and regeneration may have therapeutic benefit and represent future clinical development opportunities. We seek Safe Harbor.