A conversation with Henry and Gino
We sat down with our CEO, Henry Gosebruch, and Board Chair, Gino Santini, to discuss the company’s first six months of 2026, the strategic significance of the Ouro transaction, the evolution of Lakefront’s pipeline and the priorities for the remainder of the year.
Henry, in April 2026, Gino Santini was elected to the Board of Directors and appointed Board Chair. Can you help us understand why his background was the right fit?
Gino is a seasoned pharmaceutical executive who spent 27 years in various roles at Eli Lilly, including as President of US Operations and as Senior Vice President of Corporate Strategy and Business Development. Following his retirement from Lilly, he’s been a sought-after board member and has helped guide a number of biotechnology companies through transformations and value creation events.
I have known Gino for nearly two decades and am confident that his extensive operational, strategic, and business development expertise, shaped by decades of global leadership in our sector, will be invaluable as we execute our strategy to deliver meaningful patient impact and sustainable shareholder returns.
More broadly, I am really pleased with the talented group of directors who joined us to serve on our Board. As we transform, it’s important that the Board brings the right mix of capabilities and background. Our Board brings the skills and experience that are needed to provide effective oversight and strategic guidance to the company.
Gino, what is the Board focused on going forward?
The Board’s priority has been to define a clear and sustainable path forward for the company. We will focus on guiding management on building the capabilities needed to advance the new portfolio of exciting programs we acquired in connection with the Ouro transaction and to oversee the plan on maximizing the opportunities to create value with these programs.
Going forward, Lakefront has a very high bar to deploy cash for business development. We will continue to focus on clinically derisked opportunities in the areas where we believe we could bring unique insights that represent competitive advantage.
Henry, how would you summarize the first six months of 2026?
The first half of 2026 was about moving from strategic review to execution. Our objective wasn’t incremental rebuilding, but a fundamental reshaping of the company around programs we believe are capable of delivering meaningful patient impact and sustainable shareholder returns.
We began the year with a clear focus: to reshape the company around opportunities where we believe we can have the greatest patient impact and create shareholder value.
That meant taking decisive actions. We initiated the wind-down of our cell therapy operations. We became Lakefront Biotherapeutics. With Gilead, we completed the acquisition of Ouro Medicines, which gives us an exciting portfolio to advance. We also strengthened our leadership and governance, and we launched an initial €50 million stock repurchase program.
Gino, how do you view the strategic relationship with Gilead Sciences?
I believe the Gilead relationship can be a strategic advantage for Lakefront.
This advantage is exemplified in the structure of the Ouro Medicines transaction, which allows each company to contribute where it is best positioned. Lakefront is responsible for ongoing and future Phase 1/2 clinical studies of gamgertamig. Gilead will lead registrational and later-stage studies and is responsible for commercialization outside of Keymed’s territories. The two parties split the deal costs 50/50, enabling Lakefront to deploy only a portion of our available cash and leaving the majority of our capital available for other transactions, reflecting our clear focus on prudent capital allocation.
For Lakefront, that means we can play a meaningful role in advancing the program while retaining the potential to participate in long-term value through tiered royalties. In addition, the transaction includes a preclinical portfolio of three autoimmune programs, where Gilead holds an option to participate following clinical proof-of-concept through a 50/50 profit share, further extending the long-term value opportunity.
Henry, how should investors think about the immunology pipeline after the Ouro transaction?
The Ouro transaction is a significant milestone because it gives us a promising clinical-stage asset, expands our development opportunities in immunology, and strengthens our ability to create long-term value.
Accelerating the development of gamgertamig is front and center for us. The program has already received both Fast Track and Orphan Drug Designation from the U.S. FDA for autoimmune hemolytic anemia (AIHA) and immune thrombocytopenia (ITP), and we believe it has the potential to enter registrational studies in 2027.
Importantly, we’re continuing to build momentum across the clinical program. We currently have two Phase 1b studies actively enrolling patients across a range of autoimmune diseases. One study is evaluating gamgertamig in autoimmune cytopenias, including ITP and AIHA, while a second study is focused on seropositive autoimmune diseases such as idiopathic inflammatory myositis, Sjögren’s disease, pemphigus vulgaris, and pemphigus foliaceus. These studies are underway across multiple countries, including the United States, Australia, New Zealand, Czech Republic, and Japan.
Looking ahead, we expect to continue expanding the clinical development program, including the initiation of proof-of-concept basket studies in additional autoimmune diseases in 2027.
In addition, the transaction brought several earlier-stage autoimmune and inflammatory disease programs that provide future opportunities and further reinforce our long-term focus on targeted immune modulation.
Henry, what recent leadership and governance changes supported this next phase?
As we previously mentioned, Gino became Chair of the Board following shareholder approval at the company’s Annual General Meeting. We also added Dr. Paulo Fontoura to our Board earlier this year, although recently, Paulo tendered his resignation from the Board following his announced appointment as Global Head of R&D at Sanofi. We look forward to identifying a suitable replacement for Paulo soon.
I am extremely pleased with the management talent we have been able to attract. Operationally, the appointment of Dr. Eric Hedrick as Chief Medical Officer is especially important. Eric brings a twenty-five year track record successfully developing effective and commercially successful therapies to this important role.
We also strengthened the organization with Tania Philipp appointed as Chief People Officer. Tania’s established background supporting the vision, mission and objectives of life sciences companies is essential as we continue to execute on our transformation, welcome new colleagues and build the Lakefront culture.
We also are delighted that we have added an impressive team of individuals from Ouro to Lakefront, including Ruth Lan, Vice President Research and Translation, who will also serve on our senior leadership team.
Gino, how is Lakefront thinking about capital allocation?
Lakefront’s cash position is a strategic asset, and capital allocation is one of the Board’s most important responsibilities. The Company ended 2025 with cash and financial investments of approximately €3 billion. Following the Ouro transaction and after funding the portfolio to first approval for gamgertamig, we forecast to have at least €1.6 billion in cash remaining to fund other strategic opportunities. Lakefront benefits from the financial discipline and strong balance sheet built over many years. Our task now is to deploy that capital in a way that supports long-term value creation.
The Ouro transaction is a good example. It was a significant investment, but one we believe is consistent with the Company’s strategy and our objectives of adding proof-of-concept stage programs. At the same time, the transaction created additional flexibility through the amendment to the legacy Gilead collaboration.
Another example is the €50 million share repurchase program recently announced by Lakefront. The authorization for the Board to acquire Lakefront’s own shares was approved by the shareholders at the Extraordinary General Meeting in April 2026. The objective of the program is to deliver shareholder value. Following the closing of the Ouro transaction and related impact to cash, the Company expects its year end 2026 cash and financial investments balance to be in the range of €1.975 billion to €2.050 billion. This guidance includes the announced €50M share buyback program, which was not considered in the previous guidance range.
Henry, what are the top priorities for the second half of 2026?
We have four priorities for the remainder of the year.
First, we have completed the acquisition of Ouro Medicines with Gilead and integrated the Ouro employees and operational assets. Second, we intend to accelerate the advancement of gamgertamig and the preclinical pipeline, with a focus on high-quality clinical execution. Our objective is to initiate pivotal studies for gamgertamig in 2027 and to assess the most promising indication expansion opportunities. Third, we will continue the wind-down of our cell therapy activities in a responsible and disciplined manner. And finally, we will continue to evaluate new business development opportunities using a disciplined and selective approach.
How should shareholders think about Lakefront’s outlook?
Gino: Shareholders should view 2026 as a year of transition and execution. The company has changed its name, sharpened its strategy, added a new clinical development foundation through the Ouro transaction, strengthened its leadership and governance, and taken steps to return capital to shareholders.
There is still important work ahead, but we believe Lakefront is well-positioned. It is focused, well-capitalized and built around a strategy that combines savvy clinical development, business development, and disciplined capital allocation.
Henry: I agree. I’m proud of our achievements to date and optimistic about the future. We believe gamgertamig could represent a very important new type of treatment approach for immune reset therapy for patients across a large number of conditions. It has shown compelling clinical data thus far and it may have both a first-in-class advantage and best-in-class potential. I’m excited for the opportunity to accelerate its clinical development and make a difference for patients.