Dr. Andre Boulet reports

DEVONIAN HEALTH GROUP REPORTS FINANCIAL RESULTS OF ITS FIRST QUARTER ENDED ON OCTOBER 31, 2025 AND PROVIDES CORPORATE UPDATE

Devonian Health Group Inc. has released operating and financial results for its first quarter ended on Oct. 31, 2025.

• Company continues preclinical studies for Thykamine in MASH and fibrosis, furthering the understanding of Thykamine's mechanism of action;
• Thykamine: a new player in the field of anti-inflammatory drugs published in the peer-reviewed journal, Biomedicines;
• Design for Thykamine phase 2/3 clinical study in pediatric Atopic Dermatitis is complete based on the positive results of the phase 2 in an adult population;
• Thykamine radiodermatitis pivotal clinical study in the process of being initiated;
• First quarter gross margin on distribution revenues of $500,000;
• First quarter net loss of $1.6-million, (one cent) per share;
• Private placements completed with gross proceeds of $2.7-million;
• Cash as of Oct. 31, 2025, of $6.6-million; company remains debt-free.

Management comments

"We are very pleased with the continued momentum across both our therapeutic and commercial activities this quarter. Thykamine's progress in preclinical MASH and fibrosis strengthens its profile as a promising first-in-class anti-inflammatory candidate, while the readiness of our phase 2/3 pediatric atopic dermatitis study marks an important milestone toward addressing a significant unmet medical need. Our gross margin performance, combined with the successful completion of $2.7-million in private placements, reflects growing confidence in our strategy and in the long-term value of our pipeline," said Dr. Andre Boulet, PhD, chief executive officer of Devonian.

Business highlights

• The company finalized the protocol for a 12-week, multicentre, randomized, double-blind, vehicle-controlled, phase 2/3 clinical study investigating the safety and efficacy of two strengths (0.05 per cent and 0.1 per cent) of PUR 0110 (Thykamine) Cream applied twice daily to pediatric patients (three months to 17 years of age) with mild to moderate atopic dermatitis (the Pediatric AD clinical study). The study is ready to be initiated following approval by regulatory agencies.
• The company is preparing its pivotal clinical study of Thykamine for radiodermatitis. It will be a double-blind, randomized, Glaxal-based, controlled multicentre study in patients with breast cancer.
• Preclinical studies are ongoing to highlight the potential of Thykamine to be used in the treatment of MASH.
• Further preclinical studies initiated to elucidate the potential use of Thykamine as an anti-fibrotic agent.
• On Nov. 26, 2025, subsequent to the close of the quarter, the company announced the appointment of Pierre Labbe as new board member following the resignation from the board of directors of Jean Forcione on Sept. 30, 2025.

Financial highlights

Financing

During the quarter ended Oct. 31, 2025, the company successfully completed $2.7-million of financing with issuance of units (common shares and warrants) through private placements, strengthening its liquidity. Cash and cash equivalents of $6.6-million at the end of the period, modestly lower than the $7.0-million reported as of July 31, 2025. The company is debt free.

Distribution revenues

Distribution revenues for the three-month period ended Oct. 31, 2025, were $1.05-million, an 83-per-cent decrease from $6.12-million in the comparable period, reflecting the expiry of the Dexlansoprazole distribution agreement in April, 2025.

Net loss

The company reported a net loss during the quarter of $1.6-million as compared with a net loss of $600,000 for the same period in 2024. The comparative period increases in net loss of nearly $1-million relates to the distribution revenues decline which reduced the gross margin by $1.5-million. This reduction was partially offset by a $500,000 savings in selling and administrative as well as financial expenses.

Cash flows

The company used $2.3-million in operating activities cash flows, compared with generating $2.6-million in the same period last year. The $4.9-million decrease in operating cash flows is mainly due to the net change in non-cash working capital items for an amount of nearly $3.5-million related to the payments of accounts payable, as well as the $1.4-million higher comparative net loss net of items not affecting cash.

To consult the interim consolidated financial statements for the three-month periods ended Oct. 31, 2025, and 2024, please visit the company's website or see the company profile on SEDAR+.

About Thykamine

Thykamine, the first pharmaceutical product issued from Devonian's Suprex platform, is a highly innovative product for the prevention and treatment of health conditions related to inflammation and oxidative stress including ulcerative colitis, atopic dermatitis, psoriasis, rheumatoid arthritis and other autoimmune disorders. The anti-inflammatory, anti-oxidative and immunomodulatory properties of Thykamine have been demonstrated by a considerable number of in vitro and in vivo studies as well as in a phase 2a clinical study in patients with mild-to-moderate distal ulcerative colitis and in a large phase 2 study in adult patients with mild-to-moderate Atopic Dermatitis. Both Thykamine and Suprex platform are covered by patents issued in several North American, European and Asian countries.

About Devonian Health Group Inc.

Devonian Health Group is a clinical-stage pharmaceutical company specializing in the development of drugs for various auto-immune inflammatory conditions with novel therapeutic approaches to targeting unmet medical needs. Devonian's core strategy is to develop prescription drugs for the treatment of inflammatory autoimmune diseases including but not limited to ulcerative colitis and atopic dermatitis. Based on a foundation of over 15 years of research, Devonian's focus is further supported by a U.S. Food and Drug Administration set of regulatory guidelines favouring drug development pathway for prescription botanical drug products.

Devonian is also involved in the development of high-value cosmeceutical products leveraging the same proprietary approach employed with their pharmaceutical offerings. Devonian also owns a commercialization subsidiary, Altius, focused on selling prescription pharmaceutical products in Canada, under a license from brand name pharmaceutical companies.

Devonian Health Group was incorporated in 2015 and is headquartered in Quebec (Quebec) Canada where it owns a state-of-the art extraction facility. Devonian is traded publicly on the TSX Venture Exchange and on OTCQB Venture Market.

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