Replimune Group, Inc. Liquidation Value

Replimune Group, Inc. (REPL) is a clinical-stage biopharmaceutical company with no product revenue, an accumulated deficit of $1,189.3 million as of December 31, 2025, and a net loss of $240.7 million for the nine months ended December 31, 2025. Under a liquidation lens, recovery to equity is structurally negative: total assets of $333.6 million are dominated by cash and liquid securities, but total liabilities of $123.1 million must be settled at face value, and the asset haircut mechanics compress recoverable value before equity can participate.

Applying standard haircuts: cash and cash equivalents of $123.0 million recover at 100% ($123.0M); short-term investments (available-for-sale debt securities) of $146.2 million recover at approximately 95-100% given near-zero unrealized loss ($0) and minimal unrealized gain ($129K), yielding approximately $139-146M; prepaid and other current assets of $8.3 million recover at roughly 50-60% (~$4-5M); PP&E gross $29.8M less accumulated depreciation of $16.0M yields net book value of $13.8M, recoverable at 50-60% (~$7-8M); finance lease ROU assets of $33.0M and operating lease ROU assets of $3.5M carry zero liquidation value as these are contractual use rights that extinguish with operations; restricted cash of $1.7M recovers at 100%; other noncurrent assets of $1.2M recover at 0-50%. Total haircutted asset recovery: approximately $275-278M.

Liability stack at face value: current liabilities $50.1M (accounts payable $5.6M, accrued employee benefits $14.4M, accrued liabilities $40.4M including clinical trial accruals, finance lease current $2.9M, operating lease current $1.2M); long-term debt (Hercules) $47.6M noncurrent; finance lease noncurrent $22.1M; operating lease noncurrent $2.5M; other noncurrent liabilities $0.7M. Total liabilities: $123.1M. Finance lease total undiscounted obligation of $41.6M (vs. $25.0M carrying value) does not extinguish on wind-up; the full undiscounted obligation of $41.6M should be considered in a true liquidation scenario, which would erode equity recovery by an additional ~$16.6M versus the balance sheet carrying value. Similarly, operating lease undiscounted obligation is $4.6M versus carrying value of $3.7M.

Net recovery to equity on a conservative basis: ~$275M assets - $123M liabilities at book - $16.6M finance lease undiscounted excess = approximately $135-140M versus book stockholders' equity of $210.5M. All pipeline-related intangible value (RPx platform, RP1 BLA resubmission optionality) carries zero in liquidation.

Material developments since the prior filing (10-Q for period ended September 30, 2025): (1) A Third Amendment to the Hercules Loan Agreement was executed in January 2026, adding incremental debt drawdown capacity; the filing confirms this as a subsequent event that is included in the company's liquidity runway estimate extending to late Q1 2027. (2) The SEC opened a formal investigation in September 2025 connected to the RP1 BLA CRL; a class action and three derivative actions are active. No reserves are disclosed for these contingent liabilities; the filing does not separately XBRL-tag any loss contingency accrual, meaning any litigation liability is currently unquantified and not reflected in the balance sheet. (3) Material weaknesses in IT general controls remain unremediated as of December 31, 2025, first identified during the annual audit for fiscal year ended March 31, 2025; this does not affect current period financial statement reliability per management's assessment but introduces financial reporting risk.

Cash burn of approximately $224.2M for nine months operating activities implies a quarterly run-rate of approximately $75M, making the $269.1M total cash and short-term investments as of December 31, 2025 (per MD&A disclosure) a critical constraint. Filing discusses the Hercules third amendment drawdown and ATM proceeds in the subsequent event period as bridging liquidity to late Q1 2027 but does not separately XBRL-tag the incremental debt quantum.