Werewolf Therapeutics (HOWL) investor relations material

Executive summary

• Initiated a strategic review and restructuring in February 2026, including a 64% workforce reduction, to extend capital resources and explore alternatives such as asset sales, mergers, or partnerships.

• Entered asset purchase agreement with Jazz Pharmaceuticals for exclusive global rights to JZP898, previously licensed to Jazz in 2022, for $21M upfront and $2M contingent payment, and terminated the related collaboration agreement.

• Repaid all obligations under the K2 Health Ventures Loan Agreement in May 2026, discharging $31.4M in debt.

• Continues to evaluate strategic alternatives to maximize shareholder value, with Piper Sandler as exclusive financial advisor.

• Entered into a lease termination agreement, incurring a $2.7M fee, ending all rent obligations by October 2026.

Financial highlights

• Net loss for Q1 2026 was $13.5M, an improvement from $18.1M in Q1 2025, driven by reduced R&D spending.

• Cash and cash equivalents as of March 31, 2026, were $46.5M, down from $57.1M at year-end 2025.

• Operating expenses decreased to $13.3M from $18.0M year-over-year, primarily due to lower R&D costs.

• Research and development expenses fell to $8.2M from $13.1M, reflecting cost-cutting and trial completion.

• General and administrative expenses rose slightly to $5.1M, mainly due to higher professional fees for the strategic review.

• No revenue from product sales; accumulated deficit reached $488.9M.

Outlook and guidance

• Cash runway is insufficient to fund operations for twelve months from the report date; additional capital or strategic transactions are required.

• Strategic review process is ongoing, with no assurance or defined timeline for a successful outcome.

• R&D costs expected to decrease further as clinical trials complete and cost-saving measures continue.

• Plans to update cash runway guidance following recent asset sale and loan repayment.