LTRN

• Corporate Restructuring: The company established Open Medicine AI (OMAI) as a separate 100%-owned subsidiary in August 2026 to commercialize Lantern's proprietary AI drug discovery platform. The separation was structured to allow OMAI to raise independent capital, pursue its own growth strategy, and eventually become a separately listed company, with Lantern remaining the largest shareholder. Lantern retains full access to the OMAI platform for its internal drug development programs. OMAI's multi-agentic AI system (Zeta) uses orchestrated specialized AI agents to cross-validate results for drug discovery tasks, with a projected $10 billion total market for AI-enabled oncology drug discovery by 2031. A dedicated informational call for OMAI will be held in mid-September 2026.
• LP300 (Never-Smokers, TKI-Progressed Non-Small Cell Lung Cancer): Following promising emerging data (median PFS of 8.4 months in L858R patients, 77% clinical benefit rate, 0.37 hazard ratio vs historical controls, confirmed as an independent predictor via adjusted regression), the company secured FDA no-objection for protocol amendments. Enrollment is now focused exclusively on the high-unmet-need L858R patient subgroup, treatment has been extended from 6 to up to 8 cycles, and the trial has transitioned to a lower-cost single-arm design. The trial continues enrolling in the U.S. and Taiwan, and the company is holding active partnering discussions for the program.
• LP184: The company secured EMA clearance for an investigator-initiated 39-patient phase 1b/2 trial in advanced bladder cancer (using a dual PTGR1/DNA damage repair deficiency biomarker strategy) at Denmark's national urologic cancer referral center. It also secured FDA clearance for a phase 1b/2 monotherapy trial in relapsed/refractory triple negative breast cancer, which is now moving toward site activation and launch. A new patent was issued for LP184's patient selection methodology, which builds on prior data showing tumor reduction in patients with DNA damage repair alterations.
• Other Pipeline Updates: LP284 continues clinical development in hematologic malignancies and adult soft tissue sarcomas, and received orphan drug designation earlier in 2026. The Star001 (LP184 repurposed using spironolactone for pediatric brain cancers) program has completed positive preclinical characterization with Johns Hopkins, and is being advanced to clinical trial for multiple rare pediatric cancer indications (each eligible for a priority review voucher upon approval). The company is working with two pediatric oncology consortia to finalize the trial path and enable compassionate use.

• No formal full-year financial guidance was provided, but the company confirmed it continues to maintain disciplined cost control: operating loss (excluding non-cash warrant accounting) decreased 25% year-over-year in Q2 2026 while advancing multiple clinical programs and launching OMAI.
• Enrollment of 15-16 additional patients under the amended LP300 protocol is expected over the next 4-6 months, with a potential data update toward the end of 2026.
• Additional clinical updates for all programs are expected over the coming quarters of 2026.
• OMAI plans to raise independent capital to fund its growth, with the long-term goal of a separate public listing.

Lantern Pharma operates two business segments: 1) Drug Development: This segment is the core clinical oncology pipeline of the company, with all R&D expenses for the quarter totaling $1.8 million (a 42% year-over-year decrease from $3.1 million in Q2 2025). It contributes 100% of current operating costs and has no reported revenue as all candidates remain in clinical trials. 2) AI Platform (Open Medicine AI): This newly established segment has no current reported revenue, with all related costs included in general and administrative expenses for the quarter. G&A expenses for Q2 2026 were $1.7 million, an 8% year-over-year increase from $1.6 million in Q2 2025.

• Forward-looking statements (including clinical trial results, OMAI commercial growth, and future performance) are subject to inherent risks and uncertainties that could cause actual results to differ materially, most notably risks related to clinical trial success, regulatory approvals, and competitive pressures.
• Additional funding is a top corporate priority; the company will need to pursue additional capital raises, collaborations, or other transactions to extend its operating runway given its current cash position.
• Early LP300 data comes from a small exploratory cohort that is not powered for statistical significance, and median PFS results may change as additional data is collected.
• The AI drug discovery market is competitive, and competitors may copy OMAI's methods, requiring OMAI to continuously invest in product development to maintain a technological lead.

Q: Can you update on LP300 data maturity, enrollment under the amended protocol, and the timing of the next data release? / A: All IRB approvals for the amended protocol (focused on L858R patients, 8 treatment cycles) are complete, and enrollment has resumed under the new structure in the U.S. and Taiwan. The company expects to enroll 15-16 new patients over the next 4-6 months, and a potential updated data readout is planned toward the end of 2026, with new enrollment data being the primary focus for the next update.

Q: How does OMAI's AI platform differ from existing competing AI drug discovery tools? / A: OMAI's platform is a next-generation multi-agentic system that differs from older single-model AI tools. It uses orchestrated specialized AI agents that challenge, cross-validate, and pass information between each other to generate auditable, publication-quality results. The platform is fully transparent and allows end users to tweak and customize analyses, a capability that has not been widely available from existing providers. OMAI is positioned to enable democratized, lower-cost AI-driven drug discovery that can reduce the need for large in-house bioinformatics teams.

Q: What is the primary benefit of the OMAI spin-out for Lantern shareholders? / A: Lantern retains 100% ownership of OMAI today, and will remain the largest shareholder after OMAI raises independent capital for its growth. AI software and clinical drug development are valued differently by investors, so the separation allows OMAI to be valued appropriately for its market opportunity, rather than being underappreciated as part of a clinical-stage biotech. Longer term, the company may explore options including distributing OMAI shares directly to Lantern shareholders or pursuing a separate listing on a public exchange.

Q: Have large pharmaceutical companies expressed interest in OMAI's Zeta platform? / A: Yes, Lantern has already received significant inbound interest from multiple large pharma companies (both small molecule and biologic groups), including several follow-up meetings and site visits. Large pharma is actively evaluating and partnering with agentic AI platforms to transform the economics of drug discovery, and OMAI's platform has proven very sticky with users that test it.