Overview

• Biotechnology firm's Q1 net loss narrowed yr/yr as operating expenses declined

• Company received FDA approval and launched AVLAYAH for Hunter syndrome in U.S.

• Denali received $200 mln from royalty funding deal; Takeda ended DNL593 collaboration

Outlook

• Denali expects results from Phase 1/2 study of DNL593 for FTD-GRN by end of 2026

• Company anticipates data from Phase 1b study of DNL628 for Alzheimer's in 1H 2027

• Denali plans regulatory filing for DNL921 for Alzheimer's in 1H 2026

Result Drivers

• AVLAYAH LAUNCH COSTS - Higher general and administrative expenses driven by increased headcount to support AVLAYAH commercial launch

• R&D EXPENSE DECLINE - Lower research and development expenses mainly due to timing of AVLAYAH commercial supply manufacturing and reduced small molecule program costs

Company press release: ID:nGNXC82ly

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Income		-$128.45 mln
Q1 Basic EPS		-$0.69
Q1 Operating Expenses		$137.36 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Denali Therapeutics Inc is $39.00, about 91.1% above its May 6 closing price of $20.41

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