Executive Summary / Key Takeaways

• Exicure, Inc. (NASDAQ:XCUR) is undergoing a profound strategic transformation, shifting from its historical nucleic acid therapy focus to a new direction anchored by the acquisition of GPCR Therapeutics USA Inc. and its lead clinical asset, GPC-100.
• The immediate investment thesis hinges on the upcoming Phase 2 clinical trial results for GPC-100 in Multiple Myeloma patients, anticipated in the fourth quarter of 2025, which could be a significant catalyst for the company.
• Beyond its core biotech focus, Exicure has embarked on a unique diversification strategy through its South Korean subsidiary, KC Creation, exploring eco-friendly energy and entertainment content, aiming for mid- and long-term value creation and brand synergy.
• Despite these strategic pivots, Exicure faces substantial liquidity challenges, with management expressing "substantial doubt" about its ability to continue as a going concern without additional financing, primarily through equity offerings.
• Investors should closely monitor the GPC-100 clinical trial readout, the company's ability to secure necessary funding, and the execution of its ambitious, diversified growth strategies amidst a highly competitive and capital-intensive biotechnology landscape.

A New Chapter: Exicure's Strategic Transformation

Exicure, Inc. is at a pivotal juncture, having dramatically reshaped its corporate identity and strategic direction. Founded in 2011 as an early-stage biotechnology company focused on nucleic acid therapies, Exicure underwent a significant strategic re-evaluation in September 2022, suspending all research and development activities to explore alternatives to maximize stockholder value. This period saw the divestment of its historical biotechnology intellectual property and assets in 2024, including its spherical nucleic acid (SNA)-related technology, marking a clear departure from its foundational drug discovery efforts.

The company's current narrative is defined by a transformative acquisition on January 19, 2025, of GPCR Therapeutics USA Inc. (GPCR USA) for $1.6 million in cash and $500,000 in equity. This move signaled Exicure's re-entry into clinical-stage biotechnology, specifically targeting hematologic diseases. Concurrently, a License and Collaboration Agreement was established with GPCR Therapeutics Inc., obligating Exicure to make milestone and royalty payments based on clinical trials, marketing authorizations, and net sales of GPCR's technologies. Further diversifying its portfolio, Exicure formed KC Creation Co., Ltd., a wholly-owned South Korean subsidiary, on March 26, 2025. This entity aims to collaborate with Korean bio-platform companies, develop eco-friendly renewable energy infrastructure, and even venture into Korean entertainment content, a move designed to enhance mid- and long-term value through investment recovery potential and brand synergy.

The biotechnology industry, particularly in clinical development, is characterized by high R&D costs, stringent regulatory pathways, and intense competition. Broad macroeconomic conditions, including global inflation, central bank actions, and geopolitical events, also exert pressure on capital markets and operational costs, impacting companies like Exicure.

Technological Differentiators and Clinical Progress

At the heart of Exicure's renewed biotechnology focus is GPC-100, a small molecule antagonist with a high binding affinity to a chemokine receptor. This compound is being developed by GPCR USA for stem cell mobilization in Multiple Myeloma patients, specifically those eligible for hematopoietic stem cell transplantation (bone marrow transplant). The current Phase 2 clinical trial involves the combined administration of GPC-100 and propranolol, a beta-blocker drug, to enhance stem cell mobilization. GPCR USA completed administering GPC-100 to 19 patients in the second quarter of 2025, with clinical trial results anticipated during the fourth quarter of 2025.

The strategic intent behind GPC-100 is to offer a potentially more effective or safer method for stem cell mobilization, a critical step in bone marrow transplants for blood cancer patients. While specific quantitative benefits over existing alternatives are not yet publicly detailed, the successful completion of patient administration in Phase 2 and the upcoming data readout suggest a potential for GPC-100 to improve patient outcomes in this niche but vital area. The company is also "Preparing for Expansion into Sickle Cell Disease and Acute Myeloid Leukemia" with burixafor (GPC-100), indicating a broader strategic vision for this lead program. This expansion, if successful, could significantly broaden the addressable market and revenue potential for Exicure. The presentation of new Burixafor clinical data at the 67th American Society of Hematology (ASH) Annual Meeting in December 2025 further underscores the company's commitment to advancing this technology.

The "so what" for investors lies in the potential for GPC-100 to establish a new standard of care or offer a significant improvement in stem cell mobilization. Positive Phase 2 results could de-risk the asset, attract further partnerships, and potentially lead to a substantial re-rating of Exicure's valuation. The expansion into Sickle Cell Disease and Acute Myeloid Leukemia also signals a long-term growth strategy that could leverage the same core technology across multiple hematologic indications, thereby enhancing its competitive moat and future financial performance.

Competitive Landscape and Strategic Positioning

Exicure operates within a highly competitive biotechnology landscape, particularly in the development of therapies for hematologic diseases. While the company's historical focus on spherical nucleic acid (SNA) technology offered a unique differentiator, its current competitive positioning is largely defined by GPCR USA's GPC-100 program.

Direct competitors in the broader hematology and oncology space include established players like Ionis Pharmaceuticals (IONS), Alnylam Pharmaceuticals (ALNY), AbbVie (ABBV), and Roche (RHHBY). Ionis and Alnylam, with their expertise in RNA-targeted therapies and RNA interference, respectively, possess mature pipelines and commercialized products, demonstrating consistent revenue growth and stronger profitability margins. For instance, Ionis has shown steady revenue growth from product sales and collaborations, along with improving profitability and positive cash flow. Alnylam also exhibits robust revenue growth from product launches and strong cash flow. In contrast, Exicure's financial performance reflects its earlier stage of development and reliance on R&D investments.

AbbVie, a major biopharmaceutical company with extensive resources and a diversified portfolio, and Roche, a global healthcare leader in oncology and neurology, represent formidable competitors with significant R&D capabilities and global reach. Exicure's collaboration with AbbVie for hair loss treatments, while separate from the GPC-100 program, highlights the importance of strategic partnerships for smaller biotech firms to leverage the resources and market access of larger entities.

Exicure's competitive advantage with GPC-100 will depend on the clinical efficacy and safety profile demonstrated in its trials, and how these compare to existing or emerging treatments for stem cell mobilization. The company's smaller scale and preclinical-stage focus for its core asset mean it lags behind many larger competitors in operational execution and established market presence. While its technological differentiation in GPC-100 could offer a niche advantage, Exicure's overall financial health and strategic adaptability are less robust than its more established rivals. The diversification into eco-friendly energy and entertainment content through KC Creation is a unique strategic response, aiming to create brand synergy and alternative revenue streams, but its impact on the core biotechnology competitive standing remains to be seen.

Financial Performance and Liquidity Challenges

Exicure's financial performance reflects a company in transition, marked by significant operational shifts and a renewed investment in R&D. For the nine months ended September 30, 2025, the company reported revenue of $500,000, which stemmed from an initial payment from the License and Collaboration Agreement with GPCR. This contrasts with the $500,000 in revenue generated during the same period in 2024 from a patent license agreement for cavrotolimod.

The company's net loss for the nine months ended September 30, 2025, was $2.05 million, an improvement from a net loss of $2.52 million for the nine months ended September 30, 2024. However, the third quarter of 2025 saw a net loss of $2.44 million, a notable increase from the $1.09 million net loss in the third quarter of 2024. This increase in loss for the quarter was primarily driven by the resumption of research and development expenses, which totaled $888,000 for the three months ended September 30, 2025, following the GPCR USA acquisition. General and administrative expenses also rose to $1.50 million for the three months ended September 30, 2025, due to additional expenses from the GPCR USA acquisition and increased professional services.

A significant non-recurring event impacting the financials was a $6 million gain recognized in the first quarter of 2025 from the early termination of the Chicago Lease. Conversely, the company recognized losses related to changes in the fair value of its contingent liability, amounting to $246,000 for the three months and $541,000 for the nine months ended September 30, 2025.

Liquidity remains a critical concern for Exicure. As of September 30, 2025, cash and cash equivalents stood at $4.44 million.

Net cash used in operating activities significantly increased to $7.41 million for the nine months ended September 30, 2025, up from $2.07 million in the prior year, primarily due to increased operating activities and higher headcount from the GPCR USA acquisition. Net cash used in investing activities was $2.26 million, mainly attributed to the GPCR USA acquisition and capital expenditures by KC Creation. While net cash provided by financing activities increased to $1.60 million for the nine months ended September 30, 2025, from $1 million in the prior year, largely due to common stock purchase agreements, management explicitly stated that existing cash and cash equivalents are "insufficient to continue to fund its operating expenses, and additional funding is needed."

This financial position has led management to conclude that "there is substantial doubt about the Companys ability to continue as a going concern within one year after the date these financial statements are issued." The company expects to seek additional financing primarily through equity offerings, acknowledging that obtaining such funding may be challenging given its current condition and future uncertainties.

Strategic Outlook and Risks

Exicure's immediate outlook is heavily tied to the success of the GPC-100 Phase 2 clinical trial results, expected in the fourth quarter of 2025. Positive data could validate the acquisition of GPCR USA and provide a much-needed catalyst for investor confidence and future financing efforts. The company's stated intention to expand burixafor into Sickle Cell Disease and Acute Myeloid Leukemia indicates a strategic roadmap for its lead biotech asset, aiming for broader market penetration and long-term value. The new leadership appointments, bringing "Deep Drug Development Expertise," are intended to drive this next phase of growth.

The diversification strategy through KC Creation, encompassing eco-friendly renewable energy and Korean entertainment content, represents a bold, albeit unconventional, attempt to build mid- and long-term value and brand synergy. The success of these ventures will depend on effective execution and market acceptance in areas far removed from traditional biotechnology.

However, the path forward is fraught with significant risks. The primary concern is the company's ability to secure additional capital. Without sufficient funding, Exicure may face bankruptcy protection or cease operations, potentially resulting in little to no value for stockholders. The uncertainty surrounding the reaction from investors and potential business partners to the recent changes in control and and management, coupled with limited experience in new business areas, could further complicate fundraising efforts. Maintaining its Nasdaq listing also remains a challenge, requiring compliance with minimum stockholders' equity and stock price requirements.

Legal proceedings, including ongoing stockholder derivative lawsuits and a breach of contract claim from a former employee, continue to pose potential liabilities and divert management resources, even if largely covered by insurance or subject to settlement agreements. Macroeconomic conditions, such as inflation, interest rate fluctuations, and geopolitical events, further add to the uncertainty, potentially increasing operational costs and impacting the availability of capital.

Conclusion

Exicure, Inc. stands at a critical juncture, undergoing a dramatic transformation from its historical biotech roots to a new, diversified strategic vision. The core investment thesis is now firmly anchored in the clinical development of GPC-100 for hematologic diseases, with the upcoming Phase 2 trial results representing a near-term, high-impact catalyst. This biotech pivot, combined with the ambitious, albeit speculative, diversification into renewable energy and entertainment through KC Creation, paints a picture of a company aggressively seeking new avenues for value creation.

However, the narrative is tempered by significant financial headwinds, most notably the "going concern" warning and the pressing need for substantial additional financing. The company's ability to successfully execute its GPC-100 program, secure necessary capital, and effectively manage its diverse new ventures will be paramount. For discerning investors, Exicure represents a high-risk, high-reward proposition, where the potential for a significant re-rating hinges on positive clinical data and successful capital raises, all within a fiercely competitive and capital-intensive industry. The strategic leadership and technological promise of GPC-100 offer a compelling upside, but the inherent financial vulnerabilities demand careful consideration.