8. Significant agreements

For the three and six months ended June 30, 2026 and 2025, the Company recognized revenue for its collaborations with Bayer Consumer Care AG (“Bayer”), Novartis Pharma AG (“Novartis”), and Genentech, Inc. (“Genentech”). The following table summarizes the revenue recognized in the Company’s condensed consolidated statements of operations and comprehensive loss from these arrangements (in thousands):

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Except as otherwise disclosed below, there have been no material changes to the contractual terms, or the associated accounting treatments for recognizing revenue, of the Company’s significant agreements during the three and six months ended June 30, 2026 and 2025. Please refer to Note 9. “Significant agreements” to the Company’s audited consolidated financial statements for the year ended December 31, 2025, included in the Company’s 2025 Annual Report for further details on the Company’s significant agreements.

Bayer Collaboration Agreement

On May 4, 2023, the Company and Bayer entered into a collaboration and license agreement (the “Bayer Collaboration Agreement”), pursuant to which the parties will perform research and discovery activities under a mutually agreed upon research plan during a research term up to a specified number of years per target program to generate radiopharmaceutical compounds incorporating optimized Bicycle constructs directed to two specified targets, under the oversight of a joint research committee.

In November 2025, Bayer provided the Company with a notice of termination of one of the initial target programs, effective in January 2026. The Company accounted for the notice of termination as a contract modification in the fourth quarter of 2025 as the notice of termination reduced the scope of the arrangement. As a result, the Company allocated the remaining unrecognized transaction price as of the modification date to the remaining unsatisfied and partially satisfied performance obligations and updated the measure of progress as of the modification date. The following table summarizes the allocation of the remaining unrecognized transaction price to the remaining unsatisfied and partially satisfied performance obligations as of the modification date (in thousands):

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During the three and six months ended June 30, 2026, the Company recognized revenue of $0.6 million and $1.5 million, respectively, and during the three and six months ended June 30, 2025, the Company recognized revenue of

$1.0 million and $1.9 million, respectively, in connection with the Bayer Collaboration Agreement. As of June 30, 2026 and December 31, 2025, the Company recorded deferred revenue of $33.2 million and $34.6 million, respectively, in connection with the Bayer Collaboration Agreement. In July 2026, Bayer provided the Company with a notice of termination of the Bayer Collaboration Agreement, effective in September 2026. As a result, the Company expects to recognize the remaining deferred revenue under the arrangement of approximately $33.2 million in the third quarter of 2026.

Novartis Collaboration Agreement

On March 27, 2023, the Company and Novartis entered into a collaboration and license agreement (the “Novartis Collaboration Agreement”), pursuant to which the parties agreed to perform research and discovery activities under a mutually agreed upon research plan during a research term of up to a specified number of years per target program to generate compounds incorporating optimized Bicycle constructs directed to two specified targets, under the oversight of a joint steering committee.

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In November 2025, Novartis provided the Company with a notice of termination of the Novartis Collaboration Agreement in its entirety, effective in February 2026 after a contractual 90-day notice period. Management exercised significant judgment in concluding that the notice of termination should be accounted for as a contract modification in the fourth quarter of 2025, as the notice of termination reduces the scope of the arrangement. Management concluded that the notice of termination substantively removed all remaining performance obligations, including remaining material rights, as of the date of the notice as Novartis did not benefit from any remaining activities performed during the notice period and the likelihood of exercising any remaining options was remote. As a result, the Company recognized the remaining unrecognized transaction price as revenue on the date of the notice of termination.

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The Company did not recognize any revenue in connection with the Novartis Collaboration Agreement during the three and six months ended June 30, 2026. During the three and six months ended June 30, 2025, the Company recognized revenue of $1.5 million and $2.9 million, respectively, in connection with the Novartis Collaboration Agreement. As of each of June 30, 2026 and December 31, 2025, the Company recorded zero deferred revenue in connection with the Novartis Collaboration Agreement.

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Ionis Agreements

On July 9, 2021, the Company and Ionis entered into a collaboration and license agreement, which was subsequently amended in 2021, 2022, 2023 and 2024 (collectively the agreement and all amendments, the “Ionis Agreements”). Pursuant to the Ionis Agreements, the Company granted to Ionis a worldwide exclusive license under the Company’s relevant technology to research, develop, manufacture and commercialize products incorporating Bicycle peptides directed to the protein coded by the gene TFRC1 (transferrin receptor) (“TfR1 Bicycle” molecules) intended for the delivery of oligonucleotide compounds directed to targets selected by Ionis for diagnostic, therapeutic, prophylactic and preventative uses in humans. Each party was responsible for optimization of such TfR1 Bicycle molecules and other research and discovery activities related to TfR1 Bicycle molecules, as specified by a research plan which was substantially completed in the second quarter of 2024, and thereafter Ionis is responsible for all future research, development, manufacture and commercialization activities.

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As of June 30, 2026, the combined licenses and research and discovery performance obligation is complete, and all revenue allocated to the combined licenses and research and discovery performance obligation has been recognized. The Company did not recognize any revenue in connection with the Ionis Agreements during the three and six months ended June 30, 2026 and 2025. As of each of June 30, 2026, and December 31, 2025, the Company recorded deferred revenue of $3.8 million in connection with the Ionis Agreements. The remaining revenue allocated to material rights is recorded as deferred revenue and the Company expects to recognize revenue upon exercise of or upon expiry of the respective option after approximately four to seven years from contract execution.

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Genentech Collaboration Agreement

On February 21, 2020, the Company entered into a Discovery Collaboration and License Agreement, as amended from time to time (as amended, the “Genentech Collaboration Agreement”), with Genentech. The collaboration focused on the discovery and development of Bicycle peptides directed to biological targets selected by Genentech and aimed at developing up to four potential development candidates against multiple immuno-oncology targets (“Genentech Collaboration Programs” #1 through #4) suitable for Genentech to advance into further development and commercialization, governed by a joint research committee. Under the Genentech Collaboration Agreement, Genentech also had the option to have the Company perform initial pre-clinical development and optimization activities in exchange for an additional specified milestone payment in the mid single-digit millions for each Genentech Collaboration Program (the “LSR Go Option”).

In January 2025, Genentech provided the Company with a notice of termination for Genentech Collaboration Program #4, effective in March 2025, and the Company recognized revenue of $7.5 million during the three months ended March 31, 2025. In July 2025, Genentech provided the Company with a notice of termination of the Genentech Collaboration Agreement, effective in August 2025.

The Company did not recognize any revenue in connection with the Genentech Collaboration Agreement during either of the three or six months ended June 30, 2026. During the three and six months ended June 30, 2025, the Company recognized revenue of $0.4 million and $8.1 million, respectively, in connection with the Genentech Collaboration Agreement. As of each of June 30, 2026 and December 31, 2025, the Company recorded zero deferred revenue in connection with the Genentech Collaboration Agreement.

Summary of Contract Assets and Liabilities

The following table presents changes in the balances of the Company’s contract liabilities (in thousands):

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Contract assets represent research and development services which have been performed but have not yet been billed and are reduced when they are subsequently billed. There were no contract assets at June 30, 2026 or December 31, 2025.

As of June 30, 2026, the Bayer and Ionis deferred revenue balances include $31.1 million and $3.8 million, respectively, allocated to material rights that will commence revenue recognition when the respective option is exercised or when the option expires.

During the three and six months ended June 30, 2026 and 2025, the Company recognized the following revenue as a result of changes in the contract asset and the contract liability balances in the respective periods (in thousands):

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