Q3 Trading Update

Financial foundation strengthened via accounts receivable financing expansion to $15 million and

implementation of a 10% cost saving plan to the Group's operating cost base

Non-binding terms agreed with AOP Health for the provision of $10 million of new equity to drive growth, expecting positive cash flow by the end of 2025

London, UK, 29 October 2024: Shield Therapeutics plc (LSE: STX), a commercial stage pharmaceutical company specialising in iron deficiency, provides an unaudited trading update for Q3 2024 as well as confirming a $5 million extension to its working capital financing facility with Sallyport Commercial Finance ("Sallyport"), the implementation of a 10% cost saving plan to its operating cost base, and the entering into of a non-binding term sheet with AOP Health International Management AG ("AOP Health") for the potential provision of $10 million of new equity.

ACCRUFeR® performance

During the third quarter of 2024, Shield reported net revenues of $7.2 million from c.43,500 prescriptions of ACCRUFeR® with an average net selling price of $167 ("NSP") per prescription that included the impact of the summer buying pattern by wholesalers and pharmacies in June and July. Excluding July, the average NSP in Q3 was $192 per prescription and expectations are that NSP can be maintained at a similar level throughout Q4. Key Performance Indicators (KPIs) for Q3 2024 were:

• Total ACCRUFeR® Net Sales: $7.2 million, representing 4% growth compared to $6.9 million in Q2 24 and 76% growth compared to Q3 2023. The growth rate difference between revenues and prescription demand are due to the impact of wholesalers buying ahead of the July 4th weekend during the last week of June.
• Total Prescriptions: -c. 43,500, an increase of 20% over Q2 2024 and an 86% increase over Q3 2023.
• Average net selling price: $167 per prescription vs. $171 in Q2 2024 and $148 in Q3 2023. Excluding July, the average net selling price in Q3 2024 was $192 per prescription.
• Total Group Revenues: $8.0 million including royalties and milestones from global partners for Q3 2024 resulting in $20.0 million of revenue for the 9 months ended 30 September 2024. The Board's internal estimates indicate that trading remains in line with market expectations for 2024 and is expected to meet the total revenue covenant target of $31.5 million for full year 2024 under the debt facility agreement with SWK Funding LLC.

Balance sheet and cash resources

At 30 September 2024 Shield held cash and cash equivalents of $7.7 million vs. $8.1 million as at 30 June 2024.

Following analysis of the Q3 2024 ACCRUFeR® performance and the consequential impact on internal projections, the Board has concluded that additional capital is required whilst also taking measures to lower its operating cost base to help achieve the Company's goal of becoming cash flow positive by the end of 2025. Accordingly, Shield has agreed an expansion of its working capital financing with Sallyport from $10 million to $15 million and is implementing a reduction of 10% to its operating cost base to extend its cash runway, based on current internal estimates, into Q2 2025. Shield has also entered into a non-binding term sheet with AOP Health for the provision of $10 million of new equity to help the Company achieve its aim of becoming cash flow positive by the end of calendar 2025. Shield's rate of cash burn remains highly dependent on the sales growth for ACCURUFeR® achieving the Company's internal forecast.

Additional support from AOP Health

Shield's largest shareholder, AOP Health, has executed a non-binding term sheet to subscribe for ordinary shares of 1.5 pence each in Shield ("Ordinary Shares") at a subscription price of 4.0 pence per Ordinary Share, to raise aggregate gross proceeds of a minimum of $10 million (the "Subscription"). Should the Subscription proceed, AOP Health (excluding any of its concert parties) would come to hold shares carrying more than 50% of the voting rights in Shield. Therefore, the Subscription is conditional, inter alia, upon the (i) granting of a waiver by The Panel on Takeovers and Mergers (the "Takeover Panel") from the obligation of AOP Health to make an offer under Rule 9 of the Takeover Code; (ii) approval of the waiver proposed to be granted by the Takeover Panel, by an independent vote of Shield's shareholders (excluding AOP Health and its concert parties), at a meeting of Shield's shareholders (the "General Meeting"); and (iii) approval of the issue and allotment of the Ordinary Shares in connection with the Subscription for the purposes of the Companies Act 2006, at the General Meeting. The Subscription would also be a related party transaction under the AIM Rules. Further details of the Subscription and the General Meeting will be made available to the public via the Regulatory Information Service and will be included in a circular to be posted to Shield's shareholders and made available on Shield's website in Q4 2024. Shield may incorporate a broader equity offering to existing shareholders and other investors should the Subscription proceed.

If the Subscription is approved by Shield shareholders, AOP Health and their concert parties would subsequently be able to increase its aggregate interest in Ordinary Shares without incurring any obligation to make an offer for the Company under Rule 9 of the Takeover Code.

There can be no certainty that the Subscription will proceed, and Shield will make further announcements as required.

Anders Lundstrom, Interim Chief Executive Officer, commented: "It has been another successful quarter for Shield as we work towards becoming cash flow positive by the end of FY 2025. We continue to see increased demand for ACCRUFeR® in the US and across all our territories. Net sales, total prescriptions and the net selling price of ACCRUFeR® are all showing positive trends, and with a strengthened balance sheet and tight control of our cost base we will continue to build momentum behind ACCRUFeR® and make the steps required to transition to cash flow positive by the end of 2025."

Investor presentation

Interim CEO, Anders Lundstrom, and CFO, Santosh Shanbhag, will be hosting a live online presentation relating to the Q3 trading update via the Investor Meet Company platform at 2pm (GMT) on Thursday 31 October 2024.

The presentation is open to all existing and potential investors. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am (GMT) the day before the meeting or at any time during the live presentation.

Clinically low iron levels (aka iron deficiency, ID) can cause serious health problems for adults of all ages, across multiple therapeutic areas. Together, ID and ID with anemia (IDA) affect about 20 million people in the US and represent a $2.3B market opportunity. As the first and only FDA approved oral iron to treat ID/IDA, ACCRUFeR® has the potential to meet an important unmet medical need for both physicians and patients.