Kuros Biosciences Reports First Half of 2024 Results

Financial Highlights

• Direct MagnetOs sales increased by 159% to CHF 31.6 million from CHF 12.2 million in H1 2023; this corresponds to a sequential increase of 62% or CHF 12.1 million over H2 2023

• Total Kuros Medical Devices segment sales increased 148% to CHF 31.8 million from CHF 12.9 million

Kuros Medical Devices segment EBITDA increased 287% to CHF 8.6 million in H1 2024 compared to CHF 2.2 million in H1 2023, representing an EBITDA margin of 27%

Kuros Group achieved EBITDA of CHF 0.7 million in H1 2024, increased from EBITDA loss of CHF (3.0) million in H1 2023; adjusted EBITDA excluding the Fibrin-PTH costs, recurring and one-time share-based compensation totaled at CHF 4.0 million, representing an adjusted EBITDA margin of 12.5%

Cash and cash equivalents amounted to CHF 14.3 million, compared to CHF 14.2 million as of December 31, 2023; funds available (including trade and other receivables) totaled CHF 25.3 million as of June 30, 2024

Regulatory, Clinical & Commercial Highlights

• Peer-reviewed publication of MAXA Level 1 human clinical study outcomes in Spine demonstrates effectiveness of MagnetOs as a standalone alternative to autograft in challenging posterolateral fusions. Noninferiority of Magnetos versus autograft confirmed, with primary analysis even indicating MagnetOs superiority ¹

• FDA clearances for interbody use of MagnetOs Granules, MagnetOs Putty and MagnetOs Easypack Putty (following MagnetOs Flex Matrix interbody clearance late 2023)

• Recent FDA clearance for standalone use of MagnetOs Easypack Putty in PLF and use in pelvis and extremities, supporting the product family expansion outside of spine

• Launch of MagnetOs Granules and MagnetOs Putty in New Zealand

Outlook

• For the second half of 2024, Kuros expects a similar seasonal sales pattern as in previous years, which corresponds to around 60% of total annual sales. Furthermore, it can be confirmed that the organic growth path is securely financed and that the Group expects to continue generating a positive EBITDA, both unadjusted and adjusted for non-recurring and non-cash items, in the single-digit, and around break even in terms of operating cash flow for the first time.