Translation: Original published in Finnish on 2/20/2026 at 7:40 am EET.

Herantis announced on Thursday that it has been selected for the Horizon Europe 2025 grant of 8 MEUR. The news is very positive, as this non-dilutive funding will cover a significant portion of the Phase II clinical trial for the HER-096 drug candidate, which we estimate will cost 15–20 MEUR in total. This financing decision strengthens the company's financial position and substantially reduces the pressure on the share price caused by a large dilutive share issue. We will update our estimates to reflect the new financing and the previous 4.2 MEUR share issue in connection with the H2'25 report at the latest.

Important step in funding Phase II trial

The 8 MEUR grant is intended to support the Phase II study of HER-096, which will evaluate the drug candidate's efficacy and safety in patients with Parkinson's disease. Herantis' financing puzzle has progressed rapidly during the beginning of the year. The company recently collected 4.2 MEUR in gross assets from a directed share issue. With the addition of this now-confirmed grant, the company already has a significant portion of the capital required for the Phase II trial. Furthermore, the company has an existing investment commitment of around 12 MEUR from the EIC Fund, which can cover up to a third of the financing to be raised. The company still needs additional funding to complete Phase II. We believe the newly received grant will significantly reduce the risk of the company having to carry out a large share issue at a potentially unfavorable valuation. We estimate the direct costs of the study to be approximately 15–20 MEUR, in addition to which the company will need further funds to cover administrative costs and other potential R&D expenses. According to our rough estimate, the company would still need around 8–10 MEUR in funding to complete Phase II. We believe this should also be achievable through equity financing without significant issues. The company still has the opportunity to secure financing through a partnership agreement during the spring, which we believe would be the most desirable option.

Scientific validation supports partnership negotiations

We consider being selected for the highly competitive Horizon Europe program a significant achievement for Herantis. The evaluation and funding decision made by an external panel of experts will help increase the credibility of the HER-096 candidate among potential pharmaceutical company partners.

Herantis aims to initiate the Phase II trial in 2026. The company is continuing to discuss with strategic partners and investors the securing of the remaining resources required for the study. While the grant does not cover the entire study, it lowers the threshold for beginning the study and permits negotiations to continue from a stronger position. Herantis will publish its financial statements on March 5, and we will update the financial news in our forecasts by that date at the latest.