Letter from our CEO
Dear Shareholders,
The first half of 2026 marked the beginning of a new chapter for our company.
We became Lakefront Biotherapeutics, a name that reflects both the strategic direction we have set and the company we are building. It aligns our identity with our focus: advancing programs that have the potential to deliver meaningful outcomes for patients improved quality of life, while creating sustainable long-term value for shareholders. While our name has changed, our conviction has not.
The defining milestone of the first half of 2026 was the completion of the acquisition of Ouro Medicines with Gilead Sciences. This transaction represents a significant step forward in the execution of our strategy.
It brings gamgertamig into our portfolio, a clinical-stage T-cell engager with the potential to be first-in-class and best-in-class in serious antibody-mediated autoimmune diseases. We believe this program has the potential to address significant unmet medical needs and, if successfully developed and approved, to represent a meaningful long-term value creation opportunity for our shareholders. We’ve also in-licensed a preclinical portfolio of three additional autoimmune and inflammatory programs originally from Ouro, which further expands our pipeline and future opportunity. While early, we’re very excited about the potential for these assets.
The significance of the Ouro transaction extends beyond the acquisition itself. It advances our strategy in three important ways:
First, it strengthens our portfolio with a clinical-stage program that we believe has a compelling profile and an attractive path forward in serious autoimmune diseases.
Second, it expands our organization with an accomplished development team, that brings deep experience in advancing innovative medicines. At Lakefront, we had already assembled a team with strong business development expertise and a shared mission to deploy capital in a disciplined and selective way. With the addition of Ouro’s team and assets, we have further strengthened our ability to execute our strategy.
Third, the transaction enhances our financial and strategic flexibility. As part of the transaction, we amended our legacy Option, License and Collaboration Agreement (OLCA) with Gilead, enabling us to designate an additional $500 million of our cash for R&D or strategic transactions outside of Gilead partnerships, including up to $150 million for potential returns of capital. Shortly after closing, we announced an initial €50 million share repurchase program, reflecting our continued commitment to disciplined capital allocation and shareholder value creation.
The transaction also underscores the strength of our strategic relationship with Gilead. We believe this relationship can be a competitive advantage for us, particularly if we continue to evaluate opportunities that could be synergistic with Gilead’s portfolio and capabilities. Together, we have structured a collaboration that allows Lakefront to participate meaningfully in the development of gamgertamig and the preclinical assets, while enabling our shareholders to benefit from the potential value creation as these programs advance.
Looking ahead, our priorities are clear.
With the closure of the acquisition of Ouro Medicines with Gilead, we are combining the strengths of our teams to expand the already rapid development of our lead asset, gamgertamig, along with progressing the preclinical portfolio; completing the wind-down of our cell therapy activities in a responsible and disciplined manner; executing our initial share repurchase program; and continuing to evaluate additional business development opportunities with financial discipline and thorough strategic assessment.
Lakefront is a focused and well-capitalized biotechnology company. We combine clinical development capabilities, business development expertise and financial flexibility to pursue opportunities that we believe can deliver meaningful patient impact and attractive long-term returns. We forecast having at least €1.6 billion of capital remaining to fund additional strategic transactions and other capital allocation priorities after funding the portfolio to first gamgertamig approval.
We appreciate the continued support of our employees, patients, partners and shareholders as we build the next phase of our company.
Sincerely,
Henry Gosebruch
Chief Executive Officer
Lakefront Biotherapeutics