Dr. Andre Boulet reports

DEVONIAN HEALTH GROUP INC. REPORTS FINANCIAL AND OPERATING RESULTS OF ITS THREE AND SIX MONTHS ENDED JANUARY 31, 2026

Devonian Health Group Inc. today highlighted its financial and operating results for the three and six months ended Jan. 31, 2026.

Highlights:

• Quarter ended Jan. 31, 2026, net loss of $2.2-million or 81 cents per share;
• Six months ended Jan. 31, 2026, net loss of $3.8-million or $1.37 per share;
• Cash as of Jan. 31, 2026, $1.3-million;
• Company remains debt free;
• Reverse split of the company's common shares at ratio of 60 to one effected on Jan. 22, 2026;
• Thykamine radiodermatitis prevention pivotal clinical study as a first priority for the company;
• Company continues preclinical studies for Thykamine in MASH (metabolic dysfunction-associated steatohepatitis) and fibrosis, furthering the understanding of Thykamine's mechanism of action;
• "Thykamine: A New Player in the Field of Anti-Inflammatory Drugs" published in the peer-reviewed journal, Biomedicines.

"We are pleased with the continued momentum to execute on our priorities and readiness to advance our pipeline," said Dr. Andre P. Boulet, PhD, chief executive officer and president of Devonian.

Corporate highlights

Board appointment and chief financial officer

On Nov. 26, 2025, the company announced the appointment of Pierre Labbe, CPA, as board director. Mr. Labbe was appointed chair of the audit committee effective Feb. 2, 2026.

On Feb. 2, 2026, the company announced the appointment of Dennis Turpin, CPA, as chief financial officer. Mr. Turpin remains on the board of directors. He succeeded Viktoria Krasteva.

Strategic update

Following the expiry of the Altius Healthcare LP distribution agreements, the company is transitioning toward a focused biopharmaceutical development strategy centred on Thykamine. The company is actively evaluating strategic alternatives for the Altius business while pursuing financing options to support its pipeline.

Steatohepatitis associated with metabolic dysfunction

Metabolic dysfunction-associated steatotic liver disease progresses to MASH, which features inflammation, hepatocellular bloating and subsequent worsening of fibrosis. If left untreated, MASH can progress to cirrhosis of the liver and hepatocellular carcinoma, liver failure, and death. Devonian recently completed a study investigating the effects of Thykamine on liver disease progression in the widely used STAM mouse model of MASH/fibrosis at SMC Laboratories in Japan (1). In this model, diabetic mice were fed into a high-fat diet and rapidly developed fatty liver disease caused by inflammation and fat accumulation in the organ. Resmetirom, a drug approved by the U.S. Food and Drug Administration (FDA) for the management of MASH, was used as a positive control at an oral dose of 3.0 milligrams per kilogram (mg/kg) once daily for three weeks. Thykamine, administered orally, at doses of 0.5 mg/kg, 5.0 mg/kg and 50.0 mg/kg, once daily for three weeks, suggests potential hepatoprotective effect preventing the progression of liver disease compared to the control (vehicle) group. The MASH study demonstrates that Thykamine has anti-inflammatory and anti-fibrotic effects with the potential to target the underlying pathology of the disease and thus halt the progression of the disease. Further studies are continuing to highlight the potential of Thykamine to be used in the treatment of MASH.

(1) In vivo efficacy study of Thykamine in STAM model of metabolic dysfunction-associated steatohepatitis, SMC Laboratories Inc., January, 2025.

Financial highlights

Net loss and comprehensive loss

For the three months ended Jan. 31, 2026, the net loss and comprehensive loss totalled $2.2-million or 81 cents per share, compared with a net loss of $200,000 or nine cents per share for the same period in 2025. This increase of $2-million in net loss and comprehensive loss is primarily due to lower distribution revenues, resulting from the previously announced Dexlansoprazole expiry of its distribution agreement in April, 2025. The lower distribution revenues reduced the comparative gross margin by $2.6-million, partly offset by lower operating expenses of $200,000 and lower income tax expenses of $400,000.

For the six-month periods ended Jan. 31, 2026, the net loss and comprehensive loss totalled $3.8-million or $1.37 per share, compared with a net loss and comprehensive loss of $800,000 or 36 cents per share for the same period in 2025. This increase of $3-million in net loss and comprehensive loss is primarily due to lower distribution revenues, resulting from the previously announced Dexlansoprazole expiry of its distribution agreement in April, 2025. The lower distribution revenues reduced the comparative gross margin by $4.0-million, partially offset by lower operating expenses of $700,000 and lower income tax expenses of $400,000 net of lower interest income of $100,000.

In August, 2025, Altius, which is ultimately owned by Devonian, was informed that the distribution agreement for Pantoprazole magnesium would not be renewed after its expiry date of April 23, 2026.

Altius continues to sell Cleo-35 while Pantoprazole magnesium will end, generating revenue after April 23, 2026. Distribution revenues will be driven by Cleo-35, a product to treat hormonal acne in women.

Liquidity and cash flows

As of Jan. 31, 2026, the company had cash and cash equivalents totalling $1.3-million, compared with $7-million as of July 31, 2025. For the six months ended Jan. 31, 2026, the company used $7.7-million of cash flows for its operating activities (composed of $3.2-million net loss after items not affecting cash and $4.5-million net change in non-cash working capital items), which were partially offset by the cash inflows of $2-million from two private placements completed during the same period. The company is debt free.

To consult the interim consolidated financial statements and the management's discussion and analysis of financial condition and results of operations for the three and the six months ended Jan. 31, 2026, and Jan. 31, 2025, please see the company's profile on SEDAR+.

About Thykamine

Thykamine, the first pharmaceutical product issued from Devonian's Suprex platform, is a highly innovative product for the prevention and treatment of health conditions related to inflammation and oxidative stress, including ulcerative colitis, atopic dermatitis, psoriasis, rheumatoid arthritis and other autoimmune disorders. The anti-inflammatory, anti-oxidative and immunomodulatory properties of Thykamine have been demonstrated by a considerable number of in vitro and in vivo studies, as well as in a phase IIa clinical study in patients with mild-to-moderate distal ulcerative colitis and in a large phase II study in adult patients with mild-to-moderate atopic dermatitis. Both Thykamine and Suprex platforms are covered by patents issued in several North American, European and Asian countries.

About Devonian Health Group Inc.

Devonian is a clinical-stage pharmaceutical company specializing in the development of drugs for various auto-immune fibroinflammatory disease with novel therapeutic approaches to targeting unmet medical needs. Devonian's core strategy is to develop prescription drugs for the treatment of fibroinflammatory autoimmune diseases, including, but not limited to, atopic dermatitis, radiodermatitis and ulcerative colitis.

Devonian is involved in the development of high-value cosmeceutical products leveraging the same proprietary approach employed with their pharmaceutical offerings. Devonian owns a commercialization unit, Altius, focused on selling prescription pharmaceutical products in Canada, under licences from brand-name pharmaceutical companies.

Devonian was incorporated in 2015 and is headquartered in Quebec, Canada, where it owns a state-of-the art extraction facility. Devonian is traded publicly on the TSX Venture Exchange (symbol GSD) and currently quoted on the OTCQB Venture Market (symbol DVHGF).

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