OSR Holdings CEO Emphasizes Strong Fundamentals Amid Market Volatility

In a letter to shareholders, CEO Kuk Hyoun Hwang said, in part, "As the compliance deadline under the minimum bid requirement of NASDAQ approaches, we recognize that market volatility and uncertainty can weigh on investor sentiment. Periods like this often test confidence, particularly for innovation-driven companies that are building long-term value rather than optimizing for short-term optics. I want to take this opportunity to reaffirm that the fundamentals of OSR Holdings. remain strong, and that the management team is firmly focused on executing against clearly defined value-creating milestones. Our Swiss biotech subsidiary, Vaximm, continues to make solid progress toward finalizing the global licensing transaction for its lead asset, VXM01. Based on the Binding Term Sheet recently executed with BCM Europe, the contemplated transaction structure includes: Up to $815M in development, regulatory, and commercial milestones $30M upfront consideration, consisting of $15M in cash and $15M in digital assets While the definitive agreement remains subject to customary conditions, diligence, and final documentation, discussions are advancing constructively and in line with the economic framework already disclosed. We view this potential licensing transaction as a meaningful validation of VXM01's platform value and of OSR Holdings' hub-and-spoke biotech strategy. In parallel, we are encouraged by the ongoing strategic discussions between our two medical device subsidiaries, RMC and Woori IO. Management teams from both companies are actively working toward a potential term sheet for a merger of the two entities. The strategic rationale for this combination has strengthened further in light of recent regulatory clarity from the U.S. Food and Drug Administration regarding the oversight of non-medical-grade consumer wearable devices. This clarification enables Woori IO to pursue a dual-track commercialization strategy: Consumer wearable products positioned as lifestyle and wellness management tools, which may be commercialized independently of medical-device regulatory approvals Medical-grade non-invasive continuous glucose monitoring devices, which will continue to progress through the appropriate regulatory pathways As a result of this improved regulatory visibility, Woori IO has recently begun receiving proactive inbound interest from global device distributors, including potential partners prepared to act as importers and local agencies across key international markets. The company aims to announce formal distribution engagements in due course. When combined with RMC's established, cash-flow-generating operating platform, we believe Woori IO's differentiated technology and expanded commercial optionality create a compelling foundation for growth. Upon consummation of such merger, the combined entity will be evaluated with a view toward a Korean listing, with consideration given to the growth-oriented KOSDAQ market which has recently reached its highest index level in approximately 25 years. OSR Holdings was built to create value through disciplined capital allocation, strategic partnerships, and the maturation of differentiated healthcare technologies. Short-term market dynamics do not change that mission, nor do they alter the intrinsic value we believe is being created across our portfolio."