Pharming Group N.V.

Annual Report (ESEF) • Apr 3, 2025

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Annual Report 2024 | 2 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Contents At a Glance 4 Chief Executive Officer's statement 5 Profile 6 Key figures 2024 14 Highlights 2024 15 Corporate Governance 46 Corporate Governance Statement 47 Board of Directors 54 Executive Committee 57 Report of the Board of Directors 60 Remuneration Report 2024 72 Strategy and Execution 16 Our strategy 17 Execution of our strategy 19 Sustainability (ESG) 92 General information 93 Environmental information 99 Social information 100 Governance information 104 Financial Performance 25 Financial review 2024 26 Outlook 2025 30 Information for investors and shareholders 31 Financial Statements 106 Consolidated financial statements 107 Notes to the consolidated financial statements 112 Company financial statements 159 Notes to the Company financial statements 161 Risk Management 32 Risk management and internal control 33 Risk factors 35 Strategic risks 36 Operational risks 39 Compliance and reputational risks 41 Financial and fraud risks 44 Other Information 169 Appropriation of result 170 Independent auditor's report 171 About Pharming 177 Glossary 191 References 194 Pharming Group N.V. Annual Report 2024 | 3 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About this report Forward-looking statements This 2024 Annual Report of Pharming Group N.V. and its subsidiaries ("Pharming", the "Company" or the "Group") may contain forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in these statements. These forward- looking statements are identified by their use of terms and phrases such as "aim", "ambition", "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "milestones", "objectives", "outlook", "plan", "probably", "project", "risks", "schedule", "seek", "should", "target", "will" and similar terms and phrases. Examples of forward-looking statements may include statements with respect to timing and progress of Pharming's preclinical studies and clinical trials of its product candidates, Pharming's clinical and commercial prospects, and Pharming's expectations regarding its projected working capital requirements and cash resources, which statements are subject to a number of risks, uncertainties and assumptions, including, but not limited to the scope, progress and expansion of Pharming's clinical trials and ramifications for the cost thereof; and clinical, scientific, regulatory, commercial, competitive and technical developments. In light of these risks and uncertainties, and other risks and uncertainties that are described in Pharming's 2024 Annual Report and the Annual Report on Form 20-F for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission, the events and circumstances discussed in such forward-looking statements may not occur, and Pharming's actual results could differ materially and adversely from those anticipated or implied thereby. All forward-looking statements contained in this Annual Report are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Any forward-looking statements speak only as of the date of this Annual Report and are based on information available to Pharming as of the date of this Annual Report. Pharming does not undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. Directors report 2024 within the meaning of section 2:391 of the Dutch Civil Code The following sections of this Annual Report form the directors report within the meaning of section 2:391 of the Dutch Civil Code: At a Glance, Strategy and Execution, Financial Performance, Risk Management, Corporate Governance and Sustainability (ESG). At a Glance Chief Executive Officer's statement 5 Profile 6 Key figures 2024 14 Highlights 2024 15 Pharming Group N.V. Annual Report 2024 | 5 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Chief Executive Officer's statement Chief Executive Officer's statement Building a leading global rare disease biopharma company I am delighted to have been appointed as CEO of Pharming and am deeply excited for the opportunities that lie ahead. The strength of the 2024 financial results, with record RUCONEST® revenue and strong Joenja® (leniolisib) growth, is testament to Pharming's momentum. We ended 2024 on a strong note, growing total revenues by 21% to US$297.2 million and exceeding our revenue guidance range of US$280-US$295 million. This achievement underscores the continued importance of RUCONEST® in the HAE treatment landscape as well as the solid commercial performance of Joenja® in just its first full year of sales. We enter 2025 with a number of ongoing regulatory reviews for leniolisib as we prepare for launches in key markets and for pediatrics. We also advanced our efforts to expand the addressable patient population for leniolisib, with two Phase II trials in additional primary immunodeficiencies, or PIDs, now underway. The genetically identifiable PIDs indication and the common variable immunodeficiency, or CVID, indication represent significantly larger market opportunities than APDS, with blockbuster revenue potential. We are also strengthening our clinical pipeline with the recently completed Abliva acquisition. This adds a value accretive potential first-in-disease treatment for primary mitochondrial diseases, KL1333, which has the opportunity to further transform Pharming's growth trajectory as it too has blockbuster potential. The acquisition aligns with our vision to become a leading global rare disease company and is well aligned with our operational capabilities. We are now moving to start the second wave of patient recruitment for the pivotal FALCON clinical trial as soon as possible. Pharming's 2024 financial performance was also noteworthy, with the company generating an operating profit and positive net cash flows from operations in the last two quarters of the year. This performance highlights the financial strength of our core commercial business and we are committed to driving efficiency as we grow. Looking to 2025, we will continue to invest diligently to develop our portfolio in the U.S. and Joenja® in key countries, to reach more patients with APDS, and to progress the significant opportunities in our R&D pipeline for PIDs and primary mitochondrial diseases. I firmly believe that Pharming is well-positioned to build on this positive momentum and embrace a new cycle of growth, delivering strong long-term value creation for our shareholders and continuing our mission to serve the unserved rare disease patients. I look forward to working with the Pharming team and our stakeholders to make this a reality. Fabrice Chouraqui Pharming Group N.V. Annual Report 2024 | 6 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Profile Profile Commercial products RUCONEST® - HAE 2024 Revenues (in US$ Millions) 252.2 2023: 227.1 p 11% Total revenue Total (in US$ Millions) 297.2 2023: 245.3 p 21% Pharming is a global biopharmaceutical company Joenja® (leniolisib) - APDS 2024 Revenues (in US$ Millions) 45.0 2023: 18.2 p 147% dedicated to transforming the lives of patients with rare, debilitating, and life-threatening diseases. We are commercializing and developing a portfolio of innovative medicines, including small molecules and biologics, to serve the unserved rare disease patient. Our commitment to the rare disease community requires us to be a sustainable partner for all stakeholder groups including but not limited to patients, employees, healthcare professionals, third-party suppliers and partners, our shareholders, and the wider society. We are headquartered in Leiden, the Netherlands, with Pipeline development Leniolisib for APDS Leniolisib for additional PIDs with immune dysregulation KL1333 for mtDNA primary mitochondrial disease 426 employees in 9 countries our U.S. headquarters located in Warren, New Jersey. We are dually listed on the Euronext Amsterdam (PHARM) and Nasdaq Global Select (PHAR) exchanges. Pharming Group N.V. Annual Report 2024 | 7 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Profile Our business Pharming's aim is to bring innovative medicines to unserved rare disease patients globally. Commercial products RUCONEST® (C1 esterase inhibitor [recombinant]) Marketed for the treatment of acute HAE attacks Our first commercialized product, RUCONEST®, is the first and only recombinant C1 esterase inhibitor (rhC1INH) protein replacement therapy approved for the treatment of acute attacks in adult and adolescent patients with hereditary angioedema (HAE). RUCONEST® is commercialized in the United States, the European Economic Area, and the United Kingdom through our own sales and marketing organization, and in the rest of the world through our distribution network. The United States is the largest market for RUCONEST®, representing 98% of the product's 2024 revenues. Joenja® (leniolisib) The first and only approved disease modifying treatment for APDS Our second commercialized product, Joenja® (leniolisib), is a small molecule kinase inhibitor approved for the treatment of activated phosphoinositide 3-kinase delta (PI3Kδ) syndrome (APDS), a primary immunodeficiency, or PID, in patients 12 years of age and older. Joenja® is approved in the United States, the United Kingdom, Australia and Israel and commercialized in the United States through our own sales and marketing organization. Pipeline development Leniolisib We have ongoing regulatory and clinical development efforts to make leniolisib available to APDS patients of all ages globally. We are also developing leniolisib for additional primary immunodeficiencies, or PIDs, with larger patient populations. To identify the PID patients who might benefit from leniolisib we have initiated two Phase II studies. The first of these studies is focused on genetically identifiable PIDs with immune dysregulation linked to altered PI3Kδ signaling. The second Phase II study includes patients with common variable immunodeficiency, or CVID, with immune dysregulation identified independently of genetics. The populations in these studies represent a significantly larger market opportunity than APDS alone. KL1333 In December 2024, we announced the proposed acquisition of Abliva AB, which was completed in March 2025. Abliva's lead product KL1333 is being studied in a pivotal clinical trial, with a positive interim analysis achieved, in mitochondrial DNA-driven primary mitochondrial diseases. This acquisition strengthens our late-stage pipeline with a potential first-in-disease asset. Business development We continue to pursue a strategy focused on value-accretive opportunities to grow our portfolio and pipeline in rare diseases. Pharming Group N.V. Annual Report 2024 | 8 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Profile Commercial products RUCONEST® Our first commercialized product, RUCONEST®, Stopped Attacks Relief of symptoms for at least 3 days2 in just one dose1 93% 97%† The most common adverse reactions (>=2%) reported in clinical trials were headache, nausea, and diarrhea.1 is the first and only recombinant C1 esterase inhibitor (rhC1INH) protein replacement therapy approved for the treatment of acute attacks in adult and adolescent patients with hereditary angioedema (HAE). RUCONEST® - a large molecule produced using the milk of transgenic rabbits - is delivered intravenously and is immediately and completely bioavailable to stop the progression of an HAE attack. RUCONEST® has been shown to normalize C1INH activity levels which are clinically relevant in HAE attack treatment.1,2 By irreversibly binding to and deactivating several target molecules, including coagulation factor FXII and the protease kallikrein, RUCONEST® stops the production of bradykinin and all other mediators and thereby stops the HAE attack. With over 10 years on the key U.S. market, RUCONEST® has Read more * Based on a post hoc analysis of pooled data from the randomized controlled study and open-label extension phases of 2 studies involving 127 patients aged ≥13 years who were treated with RUCONEST® 50 U/kg (max 4200 U) for acute attacks of HAE. Data for 72 hours were available for 68 of 127 patients. † 9 of 10 patients achieved symptom relief with just one dose of RUCONEST® at 50 U/kg (n=44) in the primary clinical study. In the primary clinical study, patients saw symptom relief in 90 minutes vs 152 minutes with placebo. In the extension study, symptom relief began in 75 minutes. 50 U/kg (max 4200 U) in clinical studies (open-label extension phase, n=44 [170 attacks]. a legacy of trust with over 800 prescribing U.S. physicians. RUCONEST® has been prescribed to more than 2,000 patients with HAE worldwide. Pharming Group N.V. Annual Report 2024 | 9 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Profile Joenja® (leniolisib) Our second commercialized product, Joenja®, is a small molecule kinase inhibitor for the treatment of activated phosphoinositide 3-kinase delta (PI3Kδ) syndrome (APDS), a rare primary immunodeficiency first characterized in 2013.3 Joenja® is the first and only treatment approved for APDS. As a disease modifying therapy, Joenja® targets the root cause of APDS, facilitating a balanced PI3Kδ pathway to improve the underlying immune defect in APDS and the myriad of clinical manifestations associated with the condition.4,5 Joenja® is approved and commercialized in the United States, and was approved in the United Kingdom and Israel in 2024 and Australia in 2025, for patients 12 years of age and older with APDS. On March 13, 2025, the National Institute for Health and Care Excellence (NICE) published positive final draft guidance recommending Joenja® (leniolisib) for reimbursement and use within the National Health Service (NHS) in England and Wales. Reimbursement negotiations for leniolisib with the Ministry of Health in Israel are also ongoing. As of December 31, 2024, we had 96 APDS patients on paid therapy in the U.S. and an additional five patients enrolled and pending authorization. In addition, there are currently 188 patients in a leniolisib Expanded Access Program (compassionate use), an ongoing clinical study, or a named patient program. Based on available literature, Pharming estimates APDS prevalence to be 1.5 patients per million.3,6 As of December 31, 2024, Pharming has identified over 880 diagnosed APDS patients of all ages in global markets, including over 240 patients in the United States. Reduction in lymphadenopathy at 12 week5,7 Increase in naive B cells at 12 weeks7 46% 37%† The most common adverse reactions (incidence >10%) were headache, sinusitis, and atopic dermatitis. We have several initiatives to support the diagnosis of APDS patients, including a sponsored genetic testing program in the U.S. and Canada, partnerships with several genetic testing companies who undertake their own testing efforts, family testing programs, and Variant of Uncertain Significance, or VUS, resolution efforts to confirm which VUSs should be classified as benign or pathogenic for APDS. Patients with disease causing or pathogenic variants could be diagnosed with APDS and, therefore, potentially be eligible for Joenja® treatment. One in vitro high throughput screening study was completed in the fourth quarter of 2024, identifying many novel variants Read more leading to PI3Kδ hyperactivity. Pharming is supporting clinical genetics laboratories across the US to be able to use their independent variant interpretation to reclassify variants and issue amended genetic testing reports for any variants these laboratories deem to be disease-causing. We anticipate that these endeavors will lead to the identification of new patients with APDS. Change in index lesions size was measured using log 10-transformed SPD of the largest lymph nodes (maximum of 6) identified as per Cheson criteria on CT/MRI. †In patients with <48% of naive B cells at baseline, the adjusted mean difference between Joenja® (n=8) and placebo (n=5) in the percentage of naive B cells out of total B cells was 37.30 (95% CI: 24.06, 50.54), p= 0.0002. The analysis excluded 2 patients from each treatment group due to protocol violations, 5 Joenja® patients and 3 placebo patients with >=48% naive B cells at baseline, 5 Joenja® patients with no day 85 measure, and 1 Joenja® patient with no baseline measurement. Pharming Group N.V. Annual Report 2024 | 10 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Profile Pipeline development Pharming's rare disease pipeline addresses large opportunities. Pharming has filed for regulatory approval of leniolisib for APDS in additional key markets and has ongoing clinical trials to support regulatory filings for approval in Japan and for pediatric label expansion. We are also developing leniolisib for primary immunodeficiencies (PIDs) with immune dysregulation linked to PI3Kẟ signaling in lymphocytes, and for common variable immunodeficiency (CVID) patients with immune dysregulation, which are both PID populations demonstrating clinical similarities to APDS. In December 2024, we announced the proposed acquisition of Abliva AB, which was completed in March 2025. Abliva's lead product KL1333 is being studied in a pivotal clinical trial, with a positive interim analysis achieved, in mitochondrial DNA-driven primary mitochondrial diseases. This acquisition strengthens our late-stage pipeline with a potential first-in-disease asset. We continue to pursue a strategy focused on value-accretive opportunities to grow our portfolio and pipeline in rare diseases. We discontinued development of OTL-105, an investigational gene therapy for the treatment of hereditary angioedema (HAE), in 2024. Regulatory approvals in 2024 Clinical trials initiated in 2024 2 1 Leniolisib for APDS: global regulatory filings The current status of global regulatory submissions for leniolisib for the treatment of APDS is as follows: European Economic Area (EEA) Our Marketing Authorisation Application, or MAA, to the European Medicines Agency, or EMA, for leniolisib as a treatment for APDS in adult and pediatric patients 12 years of age and older is under review. The EMA's Committee for Medicinal Products for Human Use, or CHMP, has affirmed the positive clinical benefit and safety of leniolisib, and has provided us an extension to January 2026 to submit a response to one remaining chemistry, manufacturing and controls, or CMC, request. We are on track to complete the manufacturing activities requested by the CHMP and to submit a response prior to this deadline. Additional markets Regulatory reviews are ongoing for APDS patients 12 years of age and older in Canada and Saudi Arabia. In Canada, Health Canada recently granted us an extension to February 2026 to respond to a request for additional CMC data, in line with the EMA extension. We plan to respond in early 2026 and expect a regulatory decision in 2026. We also made progress on additional leniolisib submissions Read more for patients 12 years of age and older. We filed a regulatory submission in Saudi Arabia in November 2024 and in South Korea in March 2025. We also anticipate filing for regulatory approval in Japan in mid-2025. Pharming Group N.V. Annual Report 2024 | 11 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Profile Leniolisib for APDS: clinical trials Clinical trials are ongoing to support APDS marketing approval for leniolisib in Japan and pediatric label expansion: Japan An ongoing single-arm, open-label Phase III clinical trial in Japan will evaluate the safety, tolerability, and efficacy of leniolisib in three adult and pediatric patients 12 years of age and older who have a confirmed APDS diagnosis. Patient enrollment in this study is now complete. We completed an interim analysis, after 12-weeks of treatment, for the Phase III clinical trial. The study's safety and efficacy findings were in line with data from the randomized controlled trial used to support approvals in adult and adolescent APDS patients in the U.S. and other countries, and support a regulatory filing with Japan's Pharmaceuticals and Medical Devices Agency, or PMDA, which is planned for mid-2025. Pediatric use In 2024, we progressed two pediatric clinical trials, for children 4 to 11 years of age and 1 to 6 years of age (utilizing an age appropriate formulation), at sites in the United States, Europe and Japan. The single-arm, open-label, multinational clinical trials are evaluating the safety, tolerability, and efficacy of leniolisib in children, who have a confirmed APDS diagnosis. The primary efficacy endpoints and secondary endpoints of the studies mirror those used to evaluate the clinical outcomes in the previous leniolisib Phase II/III APDS trials for patients 12 years of age and older. On December 11, 2024, positive top line results were announced for the Phase III clinical trial for children 4 to 11 years of age, which has been evaluating leniolisib tablets in 21 children with APDS. “ This is the first data from a clinical trial for younger pediatric patients with APDS, who have a significant unmet need for a disease modifying treatment. More than a quarter of known APDS patients are below the age of 12, so having a potential treatment option for these patients who suffer from a progressive, serious condition could be very important. We look forward to initiating regulatory filings for these younger pediatric patients in 2025.” Anurag Relan, MD, Chief Medical Officer The data are consistent with the improvements seen in the previously reported randomized controlled trial in adult and adolescent APDS patients. Global regulatory filings are planned to begin with a U.S. supplemental new drug application, or sNDA, in the second half of 2025. Read more In November 2023, the first patient was dosed in the Phase III clinical trial for children 1 to 6 years of age and enrollment in the study is continuing as planned. Eligible patients enrolled in both of the pediatric trials will continue to receive leniolisib for a year after the initial 12-week treatment period through an open-label extension trial. Pharming Group N.V. Annual Report 2024 | 12 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Profile Leniolisib for additional PID indications We have identified and prioritized other indications where there is significant unmet medical need and leniolisib has the potential to deliver value for patients. PI3Kδ has been identified as an important player in a variety of inflammatory and autoimmune disease states, and leniolisib has demonstrated an attractive, long-term efficacy, safety and tolerability profile in clinical trials conducted in both healthy volunteers and APDS patients. This provides a solid basis for our plans for the investigation and investment in further leniolisib indications. Primary immunodeficiencies (PIDs) with immune dysregulation Leniolisib, by modulating PI3Kδ activity, could help in the treatment of PID patients with immune dysregulation, positively impacting clinical manifestations including lymphoproliferation, autoimmunity and end-organ lympho-infiltrative disease. PIDs with immune dysregulation linked to altered PI3Kδ signaling On October 10, 2024, we announced the start of a Phase II, proof of concept, clinical trial evaluating leniolisib in 7 genetically identifiable PIDs with immune dysregulation linked to altered PI3Kẟ signaling in lymphocytes, with similar clinical phenotypes and unmet medical need to APDS, with the first patient being dosed on October 29, 2024. The PIDs included are ALPS-FAS8, CTLA4 haploinsufficiency9, NFKB1 haploinsufficiency10 and PTEN deficiency11, among others. Epidemiology suggests a combined prevalence of approximately seven and a half patients per million in this targeted PID population, compared to one and a half patients per million for APDS. The Phase II clinical trial is a single arm, open-label, dose range-finding study to be conducted in approximately 12 patients. The objectives for the trial will be to assess safety and tolerability, Not to scale with population sizes pharmacokinetic, pharmacodynamics, and explore clinical efficacy of leniolisib in a PID population, with evidence of elevated PI3Kδ signaling. The trial has been designed to inform a subsequent Phase III program. On December 17, 2024, we submitted a request for Fast Track Designation for leniolisib in PIDs linked to PI3K signaling to the U.S. FDA which was granted in February 2025. Common variable immunodeficiency (CVID) with immune dysregulation CVID with immune dysregulation represents a much larger group of PID patients, with their diagnosis identified independently of genetics. Read more Based on available CVID epidemiology, and the current understanding of CVID patients presenting with a similar clinical phenotype to APDS, we estimate that the targeted population has a prevalence of approximately 39 patients per million. We engaged with the FDA and EMA on the CVID indication and subsequently initiated a Phase II study for CVID patients with immune dysregulation, with the first patient dosed in March 2025. Pharming Group N.V. Annual Report 2024 | 13 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Profile KL1333 for mtDNA primary mitochondrial disease In December 2024, we announced the proposed acquisition of Abliva AB, a biotechnology company, based in Lund, Sweden, via a public cash offer to the shareholders to acquire all issued and outstanding shares of Abliva, for approximately US$66.1 million. The acquisition was completed in March 2025. Abliva's lead product KL1333 is being studied in a pivotal clinical trial in mitochondrial DNA-driven primary mitochondrial diseases and has the potential to significantly enhance our future growth trajectory. KL1333 is a potential first in disease therapy being studied in a pivotal clinical study (FALCON) in adult patients with genetically confirmed primary mitochondrial disease, or PMD, with mitochondrial DNA, or mtDNA, mutations who experience consistent, debilitating fatigue and muscle weakness (myopathy), and reduced life expectancy. PMD diagnoses can include MELAS-MIDD and KSS-CPEO spectrum disorders as well as MERRF syndrome. The drug candidate is intended for long-term oral treatment. Over 30,000 patients diagnosed with mtDNA primary mitochondrial disease would be potentially addressable by KL1333 in the U.S., EU4 (France, Germany, Italy, Spain) and the U.K., offering blockbuster potential for this product in the U.S. alone. KL1333 has shown positive clinical effects in a proof-of-concept Phase Ib study, and a pre-planned interim analysis of the ongoing pivotal FALCON trial demonstrating promising differences over placebo in both alternate primary efficacy endpoints passing futility. “ Our acquisition of Abliva adds KL1333, a potential first-in- disease treatment undergoing a pivotal clinical trial for mtDNA primary mitochondrial disease, to our high value rare disease pipeline. With over 30,000 addressable patients in the U.S., EU4 and UK, we are excited about the potential of this asset, which achieved a positive interim analysis in the registration trial.” Dr. Alexander Breidenbach, Chief Business Officer KL1333 has received Fast Track designation in the U.S. and Orphan Drug Designation for the treatment of PMD in the U.S. and EU. With the completion of the acquisition, we are now moving to Read more start the second wave of patient recruitment for the pivotal FALCON clinical trial. We anticipate the trial to read-out in 2027 with potential FDA approval by the end of 2028. Pharming Group N.V. Annual Report 2024 | 14 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Key figures 2024 Key figures 2024 Financial information (in millions US$) Total Revenues Overall cash and marketable securities RUCONEST® Revenues Joenja® Revenues 297.2 169.4 252.2 45.0 2023: 245.3 p 21% 2023: 215.0 q (21)% 2023: 227.1 p 11% 2023: 18.2 p 147% Includes cash equivalents and restricted cash. US$30.4 million of the US$45.6 million decrease is due to convertible bond refinancing Non-financial information Headcount at the end of the year Joenja® regulatory approvals Clinical trials initiated Clinical trials ongoing 426 3 2 4 2023: 415 p 2.65% ** Joenja® approved in Australia in March 2025 Phase II CVID clinical trial initiated in 2025 Pharming Group N.V. Annual Report 2024 | 15 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Highlights 2024 Highlights 2024 February • February 8: Recipient of the BioNJ Innovator award. April • April 8: Completion of enrollment in pediatric clinical trial of leniolisib for children 4 to 11 years of age with APDS. • April 18: Announces the placement of €100 million convertible bonds due 2029. • April 19: Announces repurchase of the outstanding €125 million convertible bonds due 2025. • April 30: Israel Ministry of Health granted Marketing Authorization for Joenja® (leniolisib). May • May 8: Termination of the research & licensing agreement with Orchard Therapeutics and discontinuation of the OTL-105 program announced. • May 21: Pharming AGM held. All proposals were approved, including the reappointment of Ms. Barbara Yanni and Dr. Mark Pykett as Non-Executive Directors. • May 30: Pharming provided update on ongoing regulatory review of leniolisib in the EU. September • September 25: Pharming granted marketing authorization in the U.K. for Joenja® (leniolisib). October • October 1: Pharming recognized as both a Gold and Silver Winner in two categories at the 16th Annual PM360 Trailblazer Awards. • October 10: Pharming announces start of Phase II clinical trial of leniolisib for primary immunodeficiencies (PIDs) with immune dysregulation. Read more December • December 1: Ms. Inés Bernal joined Pharming as Chief People Officer (CPO) and became a member of the Executive Committee. • December 11: Pharming announces positive top line data in pediatric clinical trial of leniolisib. • December 15: Pharming announces the proposed acquisition of Abliva AB, with its lead product KL1333 currently in a pivotal clinical trial for mitochondrial DNA-driven primary mitochondrial diseases. June • June 8: Pharming honored as Industry Innovator at National Organization for Rare Disorders (NORD®) 2024 Rare Impact Awards. July • July 16: 10-year anniversary of RUCONEST® U.S. FDA approval. Acquisition of Abliva AB was completed in March 2025 . Strategy and Execution Our strategy 17 Execution of our strategy 19 Pharming Group N.V. Annual Report 2024 | 17 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Our strategy Our strategy Read more Our vision is to become a leading global rare disease company with a diverse portfolio and presence in key global markets, by leveraging proven and efficient clinical development, supply chain and commercial infrastructure. Pharming creates sustainable long-term value by leveraging its core strengths in clinical development and rare-disease drug commercialization. We are leveraging our existing portfolio with a goal of delivering continued short-term growth. Thanks to its unique profile and many positive patient experiences, RUCONEST® is well positioned to continue being a preferred on-demand treatment for HAE attacks. In APDS, we expect to continue to identify and enroll new patients on Joenja®, supported by VUS resolution efforts, and prepare for launches in key countries outside the U.S. and expansion of the product label to the pediatric population. We are investing in our long-term growth, with potential new indications for leniolisib in PIDs with immune dysregulation which could significantly expand the addressable patient population. Our pivotal stage clinical program in primary mitochondrial diseases brings another pipeline opportunity with what we believe is large revenue potential. We will also continue to assess value-accretive opportunities to broaden our pipeline. We believe these growth opportunities, combined with a focus on organization efficiency, provide the foundation to realize our vision, deliver sustainable value, and fulfill our mission to serve the unserved rare disease patients. Pharming Group N.V. Annual Report 2024 | 18 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Our strategy Our company culture As a leading biopharmaceutical company, we focus on Our Core Values We care We collaborate We walk the talk Everything we do is in the interest of our patients Working together to achieve our goals We do what we say and say what we do We build strong relationships We are committed to the team We are aware of our impact We innovate in the interest of patients We pro-actively share information We have a sense of urgency We are dedicated to helping each other being successful We keep our entrepreneurial spirit alive We let integrity guide us serving the unserved rare disease patient and bringing them the solutions they need. Together, we can achieve great things. By collaborating, encouraging each other to go the extra mile and listen, assist and support even when things get tough. Combining each other's expertise leads to our continued growth, not only in size but also in the impact we have on patients. We are working together to create our future. It inspires us to go above and beyond for our patients. It is important that employees feel connected and engaged. Our Core Values and Behaviors are therefore an essential part of our company strategy. Our Behaviors Self development Teamwork Leading people Results orientation Pharming Group N.V. Annual Report 2024 | 19 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Execution of our strategy Execution of our strategy Outlook 2024 In 2024, the Company anticipated: • Total revenues between US$280 million and US$295 million (14% to 20% growth), with quarterly fluctuations expected. • Continued progress finding additional APDS patients in the U.S., supported by family testing and VUS validation efforts, and subsequently converting patients to paid Joenja® (leniolisib) therapy. • Increasing ex-U.S. revenues for leniolisib - from commercial availability or through our Named Patient Program and other funded early access programs in key global markets. • Completion of leniolisib clinical trials to support regulatory filings for approval in Japan and pediatric label expansion in key global markets. • Progress towards regulatory approvals for leniolisib in the EEA, the U.K., Canada, Australia, and Israel. • Initiate and advance a Phase II clinical trial for leniolisib in PIDs with immune dysregulation linked to PI3Kδ signaling to significantly expand the long-term commercial potential of leniolisib. • Continued operating cost investments to accelerate future revenue growth. Our current cash on hand and the continued cash flow from product revenues are expected to be sufficient to fund these investments. No material cash burn is expected prior to the impact of potential acquisition or in-licensing transactions. • Continued focus on potential acquisitions and in-licensing of clinical stage opportunities in rare diseases. Financing, if required, would come via a combination of our strong balance sheet and access to capital markets. No further specific financial guidance for 2024 was provided. Pharming Group N.V. Annual Report 2024 | 20 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Execution of our strategy Execution 2024 In 2024, we executed on our strategic objective of building a sustainable rare disease business by growing our total revenues including RUCONEST® and Joenja®, broadening the commercialization of Joenja® in the U.S. including efforts to find additional APDS patients, increasing our ex-U.S. revenues, and the continued development and management of our pipeline. We made strong progress during 2024 on pipeline development, including regulatory approvals and filings to bring leniolisib to APDS patients outside of the U.S., clinical trials to support APDS marketing approval for leniolisib in Japan and pediatric label expansion, and the initiation of clinical development for leniolisib in PID disorders with immune dysregulation representing a significantly enlarged market opportunity beyond APDS. In December 2024, we announced the proposed acquisition of Abliva AB. This acquisition was completed in March 2025 and broadened our pipeline with the addition of a development program in an ongoing pivotal clinical trial for mitochondrial DNA- driven primary mitochondrial diseases, a potential blockbuster indication with a significant unmet medical need. “ Pharming has now obtained four country approvals for Joenja® for APDS, bringing us closer to our goal of becoming a leading global rare disease company dedicated to patient communities with unmet medical needs.” Anurag Relan, MD, Chief Medical Officer Total revenues for the full year 2024 were US$297.2 million, a 21%, increase compared to US$245.3 million in 2023, exceeding our guidance of US$280 million - US$295 million. This was driven by record RUCONEST® revenue and strong Joenja® (leniolisib) growth. Net cash flows used in operating activities was US$1.8 million for the full year 2024. RUCONEST® sales RUCONEST® continued to provide a strong source of cash flow for the business, including funding leniolisib and pipeline development and management. RUCONEST® revenues for the full year 2024 were a record US$252.2 million, an 11% increase compared to 2023, significantly above our expectation for mid-single digit percentage growth. RUCONEST® ended the year on a strong note, demonstrating significant strength in the fourth quarter of 2024, with record revenues of US$79.7 million, a 9% increase compared to the fourth quarter of 2023. This revenue performance underscores the continued importance of RUCONEST® in the HAE treatment landscape. The U.S. market contributed 98% of 2024 revenues, while the EU and Rest of World contributed 2%. The strong RUCONEST® revenue growth in 2024 can be attributed to strong U.S. performance in new physicians prescribing RUCONEST®, new patient enrollments, and the total number of patients, which together resulted in over 6% unit sales growth vs. 2023. New patient enrollments in 2024 were up 24% vs. 2023. We also increased the RUCONEST® physician prescriber base by 11% during the year, in many cases adding previously unknown HAE prescribers. Commercialization of Joenja® (leniolisib) for APDS Joenja® (leniolisib) received FDA approval in March 2023 for the treatment of activated phosphoinositide 3-kinase delta (PI3Kδ) syndrome (APDS) in patients 12 years of age and older, and first commercial shipments to patients took place in April 2023. Since launch, we have made strong and rapid progress transitioning a significant percentage of the known eligible APDS patients in the U.S. onto commercial therapy. As of December 31, 2024, we had 96 APDS patients on paid therapy in the U.S. and an additional five patients enrolled and pending authorization, representing an increase of active patients and continued progress enrolling and moving eligible patients to paid therapy. Joenja® revenues were US$45.0 million for 2024, the first full year of sales following launch in April 2023, a 147% increase compared to 2023. The U.S. market contributed 90% of 2024 revenues, while the EU and Rest of World contributed 10%. In total, there are currently 188 patients in a leniolisib Expanded Access Program (compassionate use), an ongoing clinical study, or a named patient program. Pharming Group N.V. Annual Report 2024 | 21 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Execution of our strategy Our U.S. and global APDS patient finding efforts also progressed during the year. As of December 31, 2024, we had identified over 880 diagnosed APDS patients of all ages in global markets, including over 240 patients in the United States. We estimate total prevalence of ~2400 APDS patients in our key markets. We continued to advance several initiatives during 2024 to diagnose additional APDS patients, including a sponsored genetic testing program in the U.S. and Canada, partnerships with several genetic testing companies who undertake their own testing efforts, family testing programs, and Variant of Uncertain Significance, or VUS, resolution efforts. Our VUS resolution efforts are ongoing, including validation studies with various laboratories to confirm which VUSs can be classified as APDS. As results become available, patients with validated variants could be diagnosed with APDS and, therefore, potentially be eligible for Joenja® treatment. We are aware of approximately 1,200 patients in the U.S. with a VUS in the PIK3CD or PIK3R1 genes and are supporting validation studies with various laboratories to confirm which of these variants are pathogenic for APDS. Patients with disease- associated variants would receive a molecular diagnosis of APDS and, therefore, potentially be eligible for Joenja® treatment. Based on data from Pharming's navigateAPDS sponsored genetic testing program, PIK3CD and PIK3R1 VUSs are found at four times the frequency of those mutations currently classified as pathogenic / likely pathogenic for APDS. Furthermore, a completed literature review and pilot study resulted in 20% of VUS patients being reclassified to APDS, suggesting that there could be a significant increase in the number of APDS patients in the U.S. once those patients with a VUS are reclassified. As previously communicated, Pharming is supporting independent research to evaluate large numbers of VUSs without the need for additional patient testing. VUS resolution via high throughput screening methods is an established approach that is accepted as strong functional evidence for variant classification by various expert organizations including the American College of Medical Genetics (ACMG) and ClinGen (a National Institutes of Health-funded resource). One in vitro high throughput screening study was completed in the fourth quarter of 2024, identifying many novel variants leading to PI3Kδ hyperactivity. Pharming is now supporting clinical genetics laboratories across the U.S. to be able to use their independent variant interpretation to reclassify variants and thus issue amended genetic testing reports for any variants these laboratories deem to be disease-causing. We anticipate that these endeavors will lead to the identification of new patients with APDS. We received regulatory approvals for leniolisib for patients 12 years of age or older in the U.K. and Israel in 2024 and in Australia in 2025. During 2024, we advanced additional regulatory filings, to bring leniolisib to APDS patients outside of the U.S and we also made strong progress in our clinical trials to support APDS marketing approval for leniolisib in Japan and pediatric label expansion. Leniolisib global regulatory filings for APDS In the EEA, our Marketing Authorization Application (MAA) to EMA for leniolisib as a treatment for APDS in adult and pediatric patients 12 years of age and older is under review. On May 30, 2024, we announced that we received an updated List of Outstanding Issues, or LoOI, from the EMA's Committee for Medicinal Products for Human Use, or CHMP, which affirmed the positive clinical benefit and safety of leniolisib, in agreement with the assessment by the Ad-Hoc Expert Group, or AEG, and included one remaining chemistry, manufacturing and controls, or CMC, request. The CMC request relates to the definition of regulatory starting materials used in the manufacturing process for leniolisib. As we are committed to meeting all of the CHMP's specific requirements, additional data and quality controls were provided and we proposed implementation of the CMC request post- approval. The CHMP requested that this work be completed pre-approval and has granted us an extension to January 2026 to submit a response. We are on track to complete the manufacturing activities requested by the CHMP and to submit a response prior to this deadline. In the U.K., on March 12, 2024, we submitted a leniolisib MAA for APDS patients 12 years of age and older with the U.K. Medicines and Healthcare products Regulatory Agency, or MHRA, through the International Recognition Procedure, or IRP, on the basis of the U.S. FDA approval. On September 25, 2024, the U.K. MHRA granted marketing authorization for Joenja® (leniolisib) for the treatment of APDS in adult and adolescent patients 12 years of age and older. Joenja® was the first new medicine approved by the MHRA via the IRP using the U.S. FDA as reference regulator. On March 13, 2025, the National Institute for Health and Care Excellence, or NICE, published positive final draft guidance recommending Joenja® (leniolisib) for reimbursement and use within the National Health Service, or NHS, in England and Wales. On April 30, 2024, the Israeli Ministry of Health granted Marketing Authorization for Joenja® (leniolisib) for the treatment of APDS in adult and pediatric patients 12 years of age and older. Reimbursement negotiations for leniolisib with the Ministry of Health in Israel are ongoing. Pharming Group N.V. Annual Report 2024 | 22 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Execution of our strategy In March 2025, we received approval for Joenja® (leniolisib) from the Australian Therapeutic Goods Administration, or TGA, for the treatment of APDS in adult and adolescent patients 12 years of age and older. Regulatory review for APDS patients 12 years of age and older is ongoing in Canada. In July 2024, we submitted a response to a Health Canada Notice of Deficiency. We had ongoing interactions with Health Canada which recently granted us an extension to February 2026 to respond to a request for additional CMC data, in line with the EMA extension. We plan to respond in early 2026 and expect a regulatory decision in 2026. In Saudi Arabia, we submitted a New Drug Application for patients 12 years of age and older to the Saudi Food & Drug Authority, or SFDA, in November 2024, and expect a regulatory decision in 2026 subject to the SFDA's reliance procedure with the U.S. FDA. On May 15, 2024, South Korea granted Orphan Drug Designation “ The initiation of this second Phase II clinical study outside the APDS indication is a substantial expansion of our work in primary immunodeficiency disorders. CVID patients with immune dysregulation have significant clinical unmet need, with no approved therapies, and represent a significantly larger patient population.” Anurag Relan, MD, Chief Medical Officer for leniolisib in APDS. We submitted a New Drug Application for patients 12 years of age and older to the Ministry of Food and Drug Safety in South Korea in March 2025. Leniolisib clinical trials for APDS We completed an interim analysis, after 12-weeks of treatment, for the Phase III clinical trial in Japan evaluating leniolisib for the treatment of APDS in adult and pediatric patients 12 years of age and older. The study's safety and efficacy findings were in line with data from the randomized controlled trial used to support approvals in adult and adolescent APDS patients in the U.S. and other countries, and support a regulatory filing with Japan's Pharmaceuticals and Medical Devices Agency, or PMDA, which is planned for mid-2025. An approval decision would be expected in nine months based on priority review of the application due to orphan drug designation, or ODD, by the Ministry of Health, Labour and Welfare of Japan, or MHLW, for the treatment of APDS. In 2024, we progressed two global clinical trials in pediatric patients with APDS 4 to 11 years of age and 1 to 6 years of age to support global regulatory filings for pediatric label expansion. On December 11, 2024, we announced positive top line results for this Phase III clinical trial for children 4 to 11 years of age, which has been evaluating leniolisib tablets in 21 children with APDS. The data are consistent with the improvements seen in the previously reported randomized controlled trial in adult and adolescent APDS patients. Global regulatory filings are planned to begin with a U.S. supplemental new drug application, or sNDA, in the second half of 2025. In November 2023, the first patient was dosed in the clinical trial for children 1 to 6 years of age and enrollment in the study is continuing as planned. Leniolisib for additional Primary immunodeficiencies (PIDs) with immune dysregulation In December 2023, after receiving feedback from the U.S. FDA, we announced the expansion of our rare disease pipeline with plans to develop leniolisib for additional primary immunodeficiencies (PIDs). PIDs with immune dysregulation linked to altered PI3Kδ signaling After study setup in 2024, on October 10, 2024, Pharming announced the start of a Phase II, proof of concept, clinical trial evaluating leniolisib in PIDs with immune dysregulation linked to PI3Kẟ signaling in lymphocytes, with similar clinical phenotypes and unmet medical needs to APDS. The first patient was dosed in the study on October 29, 2024, and enrollment is progressing. CVID with immune dysregulation Additionally in 2024, we engaged with the FDA and EMA on the CVID indication and subsequently initiated a Phase II study for leniolisib in CVID patients with immune dysregulation, with the first patient expected to be dosed in March 2025. Pharming Group N.V. Annual Report 2024 | 23 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Execution of our strategy Pipeline development and management of additional rare disease assets Pharming announced in May 2024 that we had decided to terminate the research collaboration & licensing agreement with Orchard Therapeutics and discontinue the OTL-105 program. Additional information regarding this program can be found in the Pipeline Development section of this Annual Report. Pharming's business development and licensing group seeks partners whose mission and core values align with Pharming's commitment to serve rare disease patients. In December 2024, we announced the proposed acquisition of Abliva AB. Abliva's lead product, KL1333, is being studied in a pivotal clinical trial, with a positive interim analysis achieved, in mitochondrial DNA-driven primary mitochondrial diseases. On February 20, 2025, we announced ownership of shares and voting rights in Abliva AB exceeding 90% and thereby initiated the necessary activities to delist the Company from the Nasdaq Stockholm exchange. Following delisting, we expect to be able to start the second wave of patient recruitment for the ongoing pivotal FALCON clinical trial for KL1333 for the treatment of mtDNA-driven primary mitochondrial diseases. Pharming has initiated a compulsory acquisition procedure in respect of the remaining shares in Abliva under the Swedish Companies Act. On March 3, 2025, Nasdaq Stockholm approved Abliva's application for delisting and the last day of trading was on March 17, 2025. With these events, the acquisition of Abliva was completed. Organizational update Ms. Inés Bernal was appointed Chief People Officer, or CPO, as of December 1, 2024, to lead the development, execution and monitoring of Pharming's people and culture strategy, including the oversight and management of all people- and culture-related aspects across the global Pharming organization. On October 24, 2024, we announced that Sijmen de Vries, Executive Director and Chief Executive Officer, had informed the Board of Directors that he would not be available for reappointment at our next AGM. On January 21, 2025, we announced that the Board of Directors had nominated biopharmaceutical leader Mr. Fabrice Chouraqui to become Pharming's Chief Executive Officer and Executive Director, succeeding Mr. Sijmen de Vries. Mr. Chouraqui was appointed for a term of four years at the Extraordinary General Meeting of Shareholders (EGM) that took place on March 4, 2025. Upon the appointment of Mr. Chouraqui, Mr. Sijmen de Vries resigned from the Board of Directors. To ensure a smooth hand-over of tasks and responsibilities, Mr. de Vries will remain a strategic advisor to the new CEO until December 31, 2025. Sustainability (ESG) In 2024, we continued to make progress with our sustainability (ESG) program by taking key strategic actions to be in a position to file our first mandatory ESG report for the year 2025 in accordance with CSRD requirements and related ESRS reporting standards. We are closely monitoring the evolving regulatory landscape, particularly the European Commission's Omnibus proposal, unveiled on February 26, 2025, which may lead to significant changes to our sustainability reporting requirements. Additional information regarding the ESG program can be found in the section of this report titled Sustainability (ESG). Pharming Group N.V. Annual Report 2024 | 24 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Execution of our strategy Objectives 2025 Our objectives for 2025 are to reinforce RUCONEST®'s position as one of the cornerstone treatments for HAE, drive the uptake of Joenja® and broaden the addressable patient population in APDS, and shape an efficient and scalable organization to enable the continued growth of our pipeline. We are focused on finding additional APDS patients for Joenja® in the U.S., supported by ongoing VUS resolution efforts, and converting identified patients to commercial therapy. We are planning for a commercial launch in the U.K. and will continue to prepare for the commercialization of leniolisib for APDS in key countries, while ensuring that the treatment is accessible across geographies through early access programs. We expect progress towards additional global regulatory approvals for leniolisib for APDS and to submit regulatory filings in Japan and for pediatric label expansion in key global markets, which will contribute to future revenue growth. To expand the long-term commercial potential of leniolisib, we are advancing two ongoing Phase II proof of concept clinical trials for leniolisib in PIDs with immune dysregulation. “ Looking to 2025, we will reinforce RUCONEST®'s position as one of the cornerstone treatments for HAE, drive the uptake of Joenja® in APDS, and shape an efficient and scalable organization to enable the continued growth of our pipeline” Fabrice Chouraqui, Chief Executive Officer and Executive Director If approved, the genetically identifiable PIDs and CVID indications will represent significantly larger market opportunities than APDS, based on patient prevalence. Following the acquisition of Abliva, we intend to advance the ongoing pivotal FALCON clinical study for KL1333 in mitochondrial DNA-driven primary mitochondrial diseases. Our business development and licensing group will continue to search for value-accretive opportunities to grow our portfolio and pipeline in rare diseases. Finally, we will continue advancing our sustainability (ESG) program. So far, Pharming has been following a Corporate Sustainability Reporting Directive (CSRD)-centered approach to ESG reporting. We are closely monitoring the evolving regulatory landscape, particularly the European Commission's Omnibus proposal, unveiled on February 26, 2025, which may lead to significant changes to our sustainability reporting requirements. Financial Performance Financial review 2024 26 Outlook 2025 30 Information for investors and shareholders 31 Pharming Group N.V. Annual Report 2024 | 26 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Financial review 2024 Financial review 2024 RUCONEST®'s importance continued to be felt throughout 2024 as the Company increased the number of new physicians prescribing RUCONEST®, new patient enrollments and the total number of patients, which together resulted in 6% unit sales growth vs. 2023. RUCONEST® revenues in 2024 increased by 11% to US$252.2 million, driven by revenue growth in the U.S., significantly above our expectation for mid-single digit percentage growth. Joenja® (leniolisib) received U.S. FDA approval in March 2023 for the treatment of APDS in patients 12 years of age and older, During the first full year of sales following launch in April 2023, the Company continued progress enrolling and transitioning eligible patients to paid therapy. Revenue for 2024, the first full year of sales following launch in April 2023, was US$45.0 million, a 147% increase compared to 2023. Research and clinical development activities related to leniolisib were further focused on advancing Japan and pediatric clinical trials for APDS, to support regulatory filings and the start of the Phase II clinical trial for leniolisib in PIDs with immune dysregulation to significantly expand the long-term commercial potential of leniolisib beyond APDS. We further intensified our business development activities for value-accretive opportunities to grow our portfolio and pipeline in rare diseases, which resulted in the completion of the acquisition of Abliva AB in March 2025. This strengthens our late-stage clinical pipeline by adding KL1333 as a potential first-in-disease treatment for mitochondrial DNA-driven primary mitochondrial diseases. The key objectives for 2024 were: • To continue to execute on the commercial growth of RUCONEST® globally and Joenja® (leniolisib) for APDS in the U.S. • Focus on finding additional APDS patients in the U.S., supported by family testing and VUS validation efforts. • To continue preparing for the commercialization of leniolisib for APDS in additional geographies and seek to increase ex-U.S. revenues either from commercial availability or through funded early access programs. Expected revenue for Joenja® (leniolisib), if approved in markets outside of the U.S. and for pediatric patients, will contribute to further revenue growth. • To make significant investments in the next indication for leniolisib with plans to initiate and advance a Phase II clinical trial in PIDs with immune dysregulation linked to PI3Kd signaling. In addition, the Company will continue to invest in the franchise, further evaluating the lifecycle management options of leniolisib for any additional new indications. • To search for viable acquisition and in-licensing clinical stage opportunities in rare diseases to bolster our pipeline both near- and long-term. These potential acquisitions and licensing agreements will be financed through a combination of positive cash flow from the RUCONEST® and Joenja® business and available cash from our strong balance sheet. If required, Pharming may access additional funding from the capital markets. “ We ended 2024 on a strong note, growing total revenues by 21% to US$297.2 million and exceeding our revenue guidance range of US$280-US$295 million. This achievement underscores the continued importance of RUCONEST® in the HAE treatment landscape as well as the solid commercial performance of Joenja® in just its first full year of sales.” Fabrice Chouraqui, Chief Executive Officer and Executive Director Pharming Group N.V. Annual Report 2024 | 27 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Financial review 2024 Financial review Amounts in US$ million except per share data 2024 2023 % Change Consolidated Income Statement Revenues 297.2 245.3 21% Gross profit 261.8 220.1 19% Operating profit (loss) (8.6) (5.4) 59% Profit (loss) for the year (11.8) (10.5) 12% Consolidated Balance Sheet Overall cash & marketable securities 169.4 215.0 (21%) Share Information Basic earnings per share (US$) (0.018) (0.016) 13% Fully-diluted earnings per share (US$) (0.018) (0.016) 13% In 2024, Pharming revenues increased by 21% to US$297.2 million. However, the operating loss increased from US$5.4 million in 2023 to US$8.6 million in 2024. Similarly, the net loss increased from US$10.5 million in 2023 to US$11.8 million in 2024. This section will further elaborate on Pharming's financial performance in 2024. Income statement Revenues and Gross Profit Total revenues for 2024 grew by 21%, reaching US$297.2 million, compared to US$245.3 million in 2023. Total RUCONEST® revenues were 11% higher at US$252.2 million, compared to revenues of US$227.1 million for 2023. Joenja® revenues amounted to US$45.0 million in 2024, a 147% increase compared to 2023 (first sales commenced at the start of the second quarter of 2023). This increase was primarily driven by an increase in volume. Cost of sales increased by 40% from US$25.2 million in 2023 to US$35.4 million in 2024. Cost of inventories recognized as expenses in 2024 amounted to US$25.6 million compared to US$21.4 million in 2023. In addition to the higher unit sales volume, the rise was primarily attributed to rising production costs for RUCONEST®. The remainder of the increase in cost of sales in 2024 mainly stem from one-off impairment charges on inventory of US$4.8 million (2023: US$1.7 million) and royalty payments to Novartis on Joenja® sales of US$4.9 million (2023: US$2.1 million). Gross profit increased by US$41.7 million, or 19%, to US$261.8 million for the year 2024. The primary driver for this increase was higher sales volumes of RUCONEST® and Joenja®. Other income Other income decreased to US$2.2 million compared to US$23.3 million in 2023. Other income in 2023 was supported by the sale of the Rare Pediatric Disease Priority Review Voucher (PRV) to Novartis for a pre-agreed, one-time payment of US$21.3 million. Pharming Pharming Group N.V. Annual Report 2024 | 28 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Financial review 2024 Operating Profit (loss) and Other Operating Costs For 2024, the operating loss increased to a loss of US$8.6 million compared to a loss of US$5.4 million for the prior year. This change was mainly due to the decrease in other income and the expected increase in operating expenses from US$248.8 million in 2023 to US$272.6 million, offset by the above- mentioned increase in gross profit in 2024. The increase in operating expenses in 2024 was primarily related to a combination of continuing investments in Joenja® in the U.S., launch preparation for leniolisib outside of the U.S., increasing R&D investments to expand the addressable patient population for leniolisib, and increased payroll expenses due to business growth. Operating expenses in 2024 include one-off expenses, totaling US$6.2 million, including expenses related to the full impairment of the DSP facility at Pivot Park in Oss, the Netherlands, amounting to US$5.1 million (2023: US$4.7 million). Also contributing to the increase were legal and advisory fees associated with the acquisition of Abliva AB, totaling US$1.1 million in the fourth quarter of 2024. Operating Profit (loss) excluding one-time events The 2023 operating expenses included milestone payments for Joenja® of US$10.5 million in the second quarter and other income included one-time proceeds from the PRV sale of US$21.3 million. When compared on a like-for-like basis, excluding these one-time events in 2023, the operating loss decreased from US$16.2 million in 2023 to US$8.6 million in the current year. Finance income and expenses The net finance result amounted to a gain of US$1.9 million compared to a loss of US$6.3 million in 2023. This was primarily driven by a fair value gain of US$7.0 million upon the reclassification of the convertible bond-related derivative to equity. This fair value gain was a result of the decrease in value of the option component classified as a derivative from issuance until the physical settlement date of the newly issued convertible bond. Further positive results stem from favorable EUR/USD exchange rate developments, which led to a foreign currency gain of US$2.0 million compared to a loss of US$3.0 million in 2023. In addition, interest income from investments in marketable securities, which commenced in the second quarter of 2023, increased by US$1.2 million. These positive results were partially offset by the negative fair value adjustments in the BioConnection preference share of US$2.1 million (2023: US$0.9 million negative), US$2.8 million higher interest expenses and fees of US$1.2 million related to the 2024 issued convertible bond. Income tax credit (expense) Income tax credit (expense) shifted from a US$1.5 million credit for the year ending December 31, 2023, to a US$3.3 million expense for the year ending December 31, 2024. This tax expense mainly results from the profits of Pharming in the U.S. being taxed against a U.S. Federal and State combined tax rate of 27.96%, while the losses in the Netherlands only partly result in an offsetting tax credit, as the share-based compensation expenses and losses in associates are generally non-deductible based on Dutch tax law. Net loss for the year The Company had a net loss of US$11.8 million in 2024, compared to a net loss of US$10.5 million in 2023. In addition to the support in other income from the PRV and the milestone payments for Joenja® in 2023, the change was mainly due to an increase in gross profit, favorable EUR/USD exchange rate developments and the fair value gain upon the reclassification of the convertible bond-related derivative to equity, offset by an increase in operating expenses, higher tax expenses and higher interest expenses and fees on the 2024 issued convertible bonds. Balance sheet Intangible assets In 2024, intangible assets decreased by US$10.2 million, from US$71.3 million in 2023 to US$61.0 million in 2024. This decrease primarily resulted from regular amortization (amounting to US$6.3 million) and negative foreign currency effects (equivalent to US$4.0 million). The amortization relates to regular amortization of software, the RUCONEST® licenses (U.S. and EU) and the Joenja® license. The RUCONEST® license has a remaining amortization period of 13 years for the U.S. and 7 years for the EU. The Joenja® license has a remaining amortization period of 12 years. Property, plant and equipment The value of property, plant and equipment decreased from US$9.7 million in 2023 to US$7.8 million in 2024. This decline was primarily driven by regular depreciation (US$2.3 million) and negative foreign currency effects (US$0.5 million), partially offset by capital expenditures (US$0.8 million). Right-of-use assets The right-of-use assets decreased from US$23.8 million in 2023 to US$16.4 million in 2024. This decline was primarily driven by regular depreciation (amounting to US$3.9 million), negative foreign currency effects (equivalent to US$0.9 million) and the full impairment of the DSP facility at Pivot Park in Oss, the Netherlands (totaling US$5.1 million). The decrease in the right-to-use assets is partially offset by additions of cars (US$2.4 million) and building remeasurements (US$0.3 million). The 2024 building remeasurements were related to adjustments in the existing right-of-use assets to account for inflation-related higher lease payments. Pharming Pharming Group N.V. Annual Report 2024 | 29 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Financial review 2024 Investments Investments decreased by US$6.2 million to US$4.2 million as of December 31, 2024. This decline was primarily driven by the disposal of the equity investment in Orchard of US$2.1 million (following take-over), Pharming's share in the net loss of BioConnection of US$1.1 million and US$0.6 million impairment to equity value (accounted for using the equity method) and a fair value decrease of US$2.1 million in the preference share in BioConnection, carried at fair value through the statement of profit and loss (FVTPL). Inventories Inventories decreased from US$56.8 million as of December 31, 2023, to US$55.7 million as of December 31, 2024. Cash and cash equivalents and marketable securities Cash and cash equivalents alone decreased by US$6.8 million to US$54.9 million as of December 31, 2024. The cash and cash equivalents position is managed in combination with the marketable securities position. The combined total of cash and cash equivalents, together with restricted cash and marketable securities decreased from US$215.0 million at year-end 2023 to US$169.4 million at year- end 2024. This decrease was primarily driven by paid taxes of US$15.6 million and the repurchase of the outstanding convertible bonds amounting to US$134.9 million, offset by net proceeds of US$104.5 million for newly issued convertible bonds. Following negative operating cash flow in the first half of 2024, the third and fourth quarter operating cash flows were positive, also when adjusted for share based compensation. Shareholders' equity Shareholders' equity increased by US$2.3 million from US$218.8 million for the year ended December 31, 2023, to US$221.1 million for the year ended December 31, 2024. This increase was primarily driven by transactions recognized directly in equity relating to share based compensation and exercised options (totaling US$13.9 million) and the recognition of the value conversion rights of US$12.2 million related to the issued convertible bond in 2024. These increases were offset by the net loss of US$11.8 million and the other comprehensive loss of US$11.9 million. The other comprehensive loss was primarily driven by currency translation differences. Convertible bond The convertible bond position has decreased by US$56.0 million to US$82.4 million at year-end 2024, moving from US$138.4 million as of December 31, 2023. This decrease was mainly driven by the repurchase of the outstanding convertible bonds amounting to US$134.9 million, offset by the initial recognition of the newly issued convertible bonds for US$81.8 million. The difference between the initial recognition of the newly issued convertible bonds and the respective net proceeds of US$104.5 million relates to the initial value of the conversion option component. Following a fair value gain of US$7.0 million until the physical settlement date, the value of the conversion option component was reclassified to equity. Subsequently, the value of this equity component is not remeasured and amounts to US$12.2 million, net of income tax effects, at December 31, 2024. Lease liabilities Lease liabilities decreased by US$3.2 million, moving from US$33.1 million as of December 31, 2023, to US$29.9 million as of December 31, 2024. This decrease was primarily driven by monthly or quarterly lease payments of US$5.1 million and for the most part offset by new leases (amounting to US$2.4 million). Going concern Pharming's 2024 financial statements have been drawn up on the basis of a going concern assumption. The 2024 year-end combined total of cash and cash equivalents, together with restricted cash and marketable securities of US$169.4 million is expected to fund the Company for more than twelve months from the date of this report. The Board of Directors anticipates further investments following the Abliva acquisition and in the preparations of the launch of leniolisib outside the U.S., started in 2024 and further expected in 2025. These investments will continue to have a negative effect on our profits. Consequently, the combined total of cash and cash equivalents, together with restricted cash and marketable securities may reduce during 2025 as the company invests in its future. Revenue for Joenja® is expected to continue to increase from 2025 onwards. The company remains confident in the robustness of RUCONEST® sales, in the expansion of its pipeline, and the addition of Joenja® for the treatment of APDS. Presently, however, no further assurance can be given on either the timing or size of future profits. In addition, in the event that the Company needs to raise capital by issuing additional shares, shareholders’ equity interests may be diluted as to voting power, and their interests as to value will depend on the price at which such issues are made. The Company sees no further need to raise additional capital to support its current operations, but may take an opportunity to do so in either equity issue or through an expansion of the current convertible debt or to raise debt, or through a combination of such instruments, to support an acquisition or in-licensing of additional assets, if appropriate terms can be obtained that are in the best interests of shareholders. Pharming Group N.V. Annual Report 2024 | 30 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Outlook 2025 Outlook 2025 For 2025, the Company anticipates: • Total revenues between US$315 million and US$335 million (6% to 13% growth), with quarterly fluctuations expected. • Total operating expenses not to exceed the prior year pre- Abliva impact, and a preliminary estimate of US$30 million in Abliva-related operating expenses, including research and development and non-recurring transaction and integration expenses. • Significant progress finding additional APDS patients in the U.S., supported by VUS resolution efforts and subsequently converting patients to paid Joenja® (leniolisib) therapy. • Increasing ex-U.S. revenues for leniolisib - driven by funded access programs and commercial availability in the U.K. • Progress towards additional regulatory approvals for leniolisib for APDS patients 12 years of age or older, and submitting regulatory filings in Japan and for pediatric label expansion in key global markets. • Advancing the two ongoing Phase II clinical trials in PIDs with immune dysregulation to significantly expand the long-term commercial potential of leniolisib. • Advancing the ongoing pivotal FALCON clinical study for KL1333 in mitochondrial DNA-driven primary mitochondrial diseases. • Continued identification of value-accretive business development and licensing opportunities to develop our portfolio and pipeline. No further specific financial guidance for 2025 is provided. Pharming Group N.V. Annual Report 2024 | 31 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Information for investors and shareholders Information for investors and shareholders Share information Pharming Group N.V. is listed on both Euronext Amsterdam (symbol: PHARM) and on Nasdaq through a level-2 ADR program where ADSs are tradeable (symbol: PHAR). Pharming Group N.V.'s shares have been listed on Euronext Amsterdam (symbol: PHARM) since 1999. The shares (ISIN Code: NL0010391025) are only traded through the book-entry facilities of Euroclear Nederland. The address of Euroclear Nederland is: Herengracht 459-469, 1017 BS Amsterdam, the Netherlands. ABN AMRO Bank N.V. is the paying agent with respect to the shares. The address of the paying agent is: ABN AMRO Bank N.V., Gustav Mahlerlaan 10, 1082 PP Amsterdam, the Netherlands. Pharming Group N.V.'s ADSs have also been tradable on Nasdaq's Global Market (symbol: PHAR) since December 23, 2020. Each ADS (ISIN Code: NL0010391025) represents 10 of the Company's ordinary shares of €0.01 nominal value ("Ordinary Shares"). Level II listing is sponsored by J.P. Morgan Chase Bank N.A. JP Morgan Chase Bank, N.A. (located at 383 Madison Avenue, Floor 11, New York, NY 10179) acts as the depositary and registrar for the ADSs representing our ordinary shares. For further information please go to: https://www.adr.com/drprofile/71716E105 Financial calendar 2025 Publication of financial results for the first quarter of 2025 Annual General Meeting of Shareholders Publication of financial results for the second quarter and first half of 2025 Publication of financial results for the third quarter of 2025 Risk Management Risk management and internal control 33 Risk factors 35 Strategic risks 36 Operational risks 39 Compliance and reputational risks 41 Financial and fraud risks 44 Pharming Group N.V. Annual Report 2024 | 33 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Risk management and internal control Risk management Our risk management and internal control systems make use of various measures including: • Annual evaluation by the Board of Directors on the goal and objectives achieved; • Periodical updates to the Board of Directors reviewing accomplishments relating to operations, finance, commercial development, research and development, business development, clinical development, compliance matter, and investor relations; • Quarterly reporting and review of the financial position and projections by the Executive Committee to the Board of Directors; • Periodic review meetings by the Executive Committee with relevant managers; • Annual, quarterly and monthly meetings and control testing, incorporating financial and operational objectives, cash flow forecasts and the evaluation of business process activities; • According to the Company's whistleblower policy, each employee and any third-party may file a complaint regarding actual or alleged irregularities of a general, operational, fraud, ethical and financial nature in relation to the Company and its subsidiaries, including deviations from the Code of Conduct. Pharming has a Code of Conduct that addresses the key risks related to potential breaches of ethical standards, which has been communicated and trained to all employees and published on the Company's website; and • Regular meetings with the Audit Committee, the Board of Directors and the Independent Auditor to discuss the financial results, internal controls and procedures. The Company maintains records and procedures designed to: • Accurately and fairly reflect the transactions and disposition of the assets of the Company; • Provide reasonable assurance that transactions, receipts, and expenditures are recorded accurately, completely and made by authorized employees in accordance with IFRS accounting principles; and • Provide reasonable assurance of the prevention or timely detection of unauthorized transactions, or use and disposition of the Company's assets that could have a material effect on the financial statements. and internal control Risk management is integral to Pharming's strategy and to the achievement of Pharming's long-term goals. Pharming's Executive Committee is responsible for designing, implementing, and operating the Company's risk management and internal control systems. The Executive Committee is aware of the importance of a comprehensive approach to risk management and has developed a risk management and internal control framework, incorporating Pharming's strategy and the Five Components of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework. Pharming Group N.V. Annual Report 2024 | 34 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Risk management and internal control Internal Controls As previously disclosed, for the year ended December 31, 2023, we identified material weaknesses in our internal controls over financial reporting across each of the five components of the COSO framework pertaining to our Entity Level Controls (control environment, risk assessment, control activities, information and communication, and monitoring) and accordingly, across our business and IT processes. Remediation of Prior Year Material Weaknesses During the fiscal year ended December 31, 2024, we implemented an intensive program to strengthen the internal control environment and continued taking steps to execute our remediation plan including the following measures, amongst others: • Performing a detailed risk assessment over all areas of financial reporting, including the implementation of relevant internal control procedures and the completion of our risk and control matrices. • Upgrading our financial systems and implementing information technology general controls to actively manage segregation of duties, strengthen access controls, while maintaining other general IT procedures. As such, the material weaknesses identified in prior years relating to the Entity Level Controls and IT processes were effectively remediated. Current Material Weaknesses Although mitigating measures were implemented during the year ended December 31, 2024, and significant results were achieved, we did not fully remediate all material weaknesses previously identified, which gave rise to the following material weaknesses in business process controls as of December 31, 2024: • We did not maintain effective internal controls over the corporate income tax process. • We did not design and implement effective internal controls over the process for complex, non-routine transactions with a significant accounting impact. 2025 Remediation Plan We are in the process of remediating the material weaknesses identified including further developing and implementing formal policies, processes, internal controls and documentation relating to our financial reporting. Specifically, management plans to: • Implement more robust internal control procedures for reviewing corporate tax and complex, non-routine accounting transactions. This may include modifications in how we utilize, and review data received from third-party specialists supporting these areas. • Provide additional training and guidance for relevant personnel performing internal control procedures, specific to these areas. As we implement these remediation efforts and continue to evaluate and work to improve our internal control over financial reporting, our management may determine that additional steps or measures may be necessary to address and remediate the material weaknesses. Management may also determine that it is necessary to modify the 2025 remediation efforts depending on the circumstances and Company needs. We cannot assure you that these remediation efforts will be successful or that its internal control over financial reporting will be effective in accomplishing all control objectives at all times. Management will continue to assess the effectiveness of these remediation efforts in connection with its evaluations of internal control over financial reporting. Pharming Group N.V. Annual Report 2024 | 35 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Risk factors Risk factors In 2021, our Enterprise Risk Management framework was implemented and formal annual assessments began. We ensured that the risk owners and the leadership team understood the importance of timely risk identification, thorough assessment, and effective risk management, through a variety of trainings. During 2024, we continued to improve our Enterprise Risk Risk Type Strategic risks Operational risks Compliance and reputational risks Financial and fraud risks We aim to deliver on our strategic ambitions and priorities and are willing to accept reasonable risks to achieve these. We face operational challenges that may require management attention. Our objective is to avoid risks that could negatively impact our goal in achieving operational efficiency, while ensuring our quality standards are unaffected. We strive to be fully compliant with our Code of Conduct as well as national and international laws and regulations of the countries in which we operate. Our financial strategy is focused on a strong financial position and creating long-term value for our shareholders. The following risks are assessed in more detail in this Report: The following risks are assessed in more detail in this Report: The following risks are assessed in more detail in this Report: The following risks are assessed in more detail in this Report: Risks • Inability to build portfolio and expand the pipeline • Limited or no approval by regulatory authorities • Inadequate coverage and reimbursement • Inaccurate planning and sales forecasts • Changes in pricing regulation by local governments • Inadequate IT portfolio, IT recovery, and information security • Disruption in the end-to-end supply chain and/or product demand • Product quality issues • Inadequate performance by third-party R&D vendors • Non-compliance with national and international laws and regulations • Non-compliance with pharmaceutical industry rules and regulations • Non-compliance with Sox Regulations • Non-compliance with ESG standards • Enterprise value not recognized by investors • Inaccurate or fraudulent financial reporting • Insufficient liquidity • Fluctuations in FX rates Residual Risk ••••• ••••• ••••• ••••• Management assessment processes, as the risk landscapes evolved. We have built on the foundations obtained through the engagement of external advisors in 2022, and held interview sessions with various Executive Committee members and their teams to further identify, define, and assess Pharming's risk landscape and overall risk appetite. Once the risks have been defined and discussed, they are then scored for likelihood of occurrence and impact should the risks occur, while factoring in ongoing mitigation actions and future mitigation plans. The final risk scores and rankings are then shared with the Executive Committee and the Board of Directors. To determine if a risk is acceptable, the Board of Directors, as well as the Executive Committee, further discuss the nature of the various risks to the business and the level of risks the Company deems acceptable, with or without mitigation activity. Overall, the risk assessments are based on our strategic goals, our business principles, our policies and procedures, and taking into consideration the highly regulated markets in which we operate. Our risk appetite and approach to risk management differs by risk type. As part of the risk assessment, inherent risk is calculated which is a risk posed by an event before a company addresses it (i.e., the risk to the company in the absence of any internal business processes, controls, or other actions it might take to either reduce the likelihood of the event or mitigate the severity of its impact on enterprise value). The table below depicts the residual risk after inherent risks have been reduced or eliminated by risk controls. Pharming Group N.V. Annual Report 2024 | 36 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Strategic risks Strategic risks Executive Committee members, as part of the Enterprise Risk Management process, performed risk assessments over strategic risks and highlighted the most critical risks in this report. Inability to build portfolio and expand the pipeline The development and commercialization of pharmaceuticals is highly competitive. In particular, RUCONEST® - the first and only recombinant C1 inhibitor protein replacement therapy that is approved for the treatment of acute hereditary angioedema (HAE) attacks - faces competition from other products used to treat HAE. With the increase in prophylactic therapies from these competitors, including the pending launches of both acute and prophylactic oral treatments, RUCONEST® could experience challenges to its market share. In addition, Pharming might not be able to develop or obtain other successful and profitable products due to increased competition, challenges identifying patients with rare diseases or challenges in the patient insurance market environment. The latter may result in financial losses or an adverse impact on business continuity. Other than Joenja® (leniolisib), approved for APDS patients 12 years of age and older in the U.S, U.K., Australia and Israel with additional regulatory reviews and development for pediatrics ongoing, the remainder of our pipeline is at earlier stages of development including: leniolisib for APDS in pediatrics, leniolisib for additional primary immunodeficiencies and KL1333 for primary mitochondrial diseases. Our spending on current and future research and development programs may not yield any commercially viable product candidates. If we do not accurately evaluate the commercial potential for a particular product candidate, we may relinquish valuable rights to that product candidate through strategic collaborations, licensing, or other arrangements in cases in which it would have been more advantageous for us to retain sole development and commercialization rights to such product candidate. If any of these events occur, we may be forced to abandon our development efforts with respect to a particular product candidate or fail to develop a potentially successful product candidate. What are we doing to manage the risk? A set of activities to build our portfolio and expand the pipeline are ongoing, for example: • A business development process, an integration management process and a drug development process are currently in place. These will enable and support the acquisition or licensing of external assets, the integration of companies in case of an acquisition, and the successful development of new assets through regulatory approval and commercialization. • Procedures to add product candidates through strategic acquisitions have been implemented and have, for example, yielded Joenja®. Both our business development and research and development methodologies focus on high potential product candidates. • Each potential internal or external asset will be vetted through a business case analysis to assess product viability and commercial value. • Ongoing efforts are being made to identify additional patients and expand our products geographically, as we currently seek approvals from various medical regulatory authorities. A professional project management structure has been developed so that projects are properly managed and monitored. Limited or no approval by product regulatory authorities Regulatory authorities might limit the scope or not grant approval of a product candidate or indication introduction due to a number of reasons such as; clinical trial data and/or results which do not adequately support safety and effectiveness. These measures by authorities could result in financial losses and/or lost opportunities for Pharming. Our business is subject to extensive regulation by numerous state and federal government authorities in the United States, including the U.S. Food and Drug Administration (FDA), and by other regulatory authorities, including the European Medicines Agency (EMA). We are required in the United States and other countries in which we operate - or our partners and affiliates sell - to obtain the necessary regulatory agency approval before we manufacture, market, and sell our products. Once our products are approved, the FDA and other U.S. and ex-U.S. regulatory agencies have substantial authority to require additional testing and reporting, perform inspections at our manufacturing sites, change product labeling, or mandate withdrawals of our products. Failure to comply with applicable regulatory requirements may subject us to administrative and/or judicially imposed sanctions or monetary penalties as well as reputational damage and other harms. Furthermore, the development of novel approaches for the treatment of diseases - including development efforts in new and innovative modalities - present additional challenges and risks, including obtaining regulatory approvals from agencies that have limited experience assessing the development of such therapies. Clinical trial data and the results are subject to differing interpretations by regulatory authorities. The organization can Pharming Group N.V. Annual Report 2024 | 37 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Strategic risks view data as sufficient to support the safety, effectiveness and/or approval of an investigational therapy, and regulatory authorities may disagree and may require additional data, may limit the scope of the approval, or may deny approval altogether. These interpretations may also vary across regulatory authorities in different markets. There can be difficulty in predicting the time and cost of product development of novel approaches for the treatment of diseases across regulatory approval authorities. What are we doing to manage the risk? The risk described is multi-faceted and the following steps are being taken: • From a strategic perspective, we work with key stakeholders including doctors, patients, health authorities, and payers when designing our clinical development program to ensure our work can serve the needs of these different stakeholders. • Our clinical studies are managed by and experienced Project team that follow Good Clinical Practices (GCP) and procedures per industry standards. • Pharming works closely with regulatory authorities in the United States (FDA) and other countries and regions, including the EEA, the U.K., Canada, Australia, Israel, and Japan to identify key elements of new products, as well as their indications, to establish safety and efficacy, while providing relevant supporting data and addressing queries from the regulators in a timely manner. • We routinely institute methods to ensure clinical trial oversight, including centralized monitoring of clinical data by statistical and data management personnel. We also perform targeted on-site visits. • We continue to enhance our contract with research organizations to ensure that we have clear conditions, firm timelines, and the ability to obtain precise data that can be independently reviewed and confirmed. Inadequate or changed coverage and reimbursement for existing products Pharming might be faced with inadequate or changed reimbursement for our existing products. The resulting reimbursement payment rates may not be adequate or may require co-payments that are high, and that patients are unable to afford. We cannot be sure that coverage and reimbursement for our existing products in current and future markets will remain the same, and there is a risk that the coverage and profit margin may be decreased or negatively impacted in the future. What are we doing to manage the risk? • Pharming continues to proactively work with various government and private insurers, to help ensure that patients get access to the treatments that they need and that our products are sufficiently covered and reimbursed. • Our company continues to strive for clinical data that shows the medical and economic benefits we bring to patients with unmet medical illnesses. • We actively use available data to forecast the number of patients, coverage, reimbursements, and the financial returns of our existing products to track forecasts against actual profit margins throughout the year. Inaccurate planning and sales forecast data for new products Pharming might not be able to meet management's projected margins or revenue estimates for a product candidate or newly launched product. The latter could be due to an insurer's refusal to pay or restrictions in the reimbursement scheme resulting in limited or no market access. Other reasons could be the inability to properly diagnose and identify current or future patients, therefore, creating a short fall in patient number estimates. New product development and the indication expansions of existing products involves a high degree of uncertainty and risk, including errors in estimated sales forecasts. As is common within the biopharmaceutical industry, only a small number of research and development programs result in the commercialization of a new product. Solid clinical development plans are essential. Forecasts based on preclinical data or early-stage clinical trials may not materialize or may turn out differently than expected at later testing stages or larger scale clinical trials. As such, the results of clinical trials may indicate that our product candidates lack efficacy, have harmful or unexpected adverse events or side effects or raise other concerns that may significantly reduce the likelihood of regulatory approval. This may result in terminated programs, significant restrictions on use, safety warnings in an approved label, adverse placement within the treatment paradigm or significant reduction in the commercial potential of the product candidate. Even if we could successfully develop new products or indications, based on our forecasts, we may in error decide to discontinue the development of a product candidate or indication if, we believe based on our forecasts that commercialization will be difficult relative to the standard of care or other opportunities in our pipeline. Pharming Group N.V. Annual Report 2024 | 38 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Strategic risks What are we doing to manage the risk? To mitigate this risk structurally, we work to implement the following processes: • Formal processes for Budgeting and Forecasting. • Align and understand the completeness of the various data points that contribute to a more integrated business plan and forecast. • Agree on the ownership of various forecasting data points, frequency of reporting and data quality improvement steps. In addition, Pharming negotiates research organization contracts with clear conditions and limited capacity for budget expansions. Alongside the strong evidential position, all project plans are evaluated by the Executive Committee, and the planning and implementation of any clinical study is subject to approval from the Board of Directors. Development programs at Pharming may be partnered and sometimes co-funded, and therefore may be subject to the review processes of the funding partner or entity. The Medical Access and Marketing teams are developing evidence and campaigns that will be used to maximize the value story with medical insurers, while optimizing the price and patient access to all of Pharming's product offerings. Changes in pricing regulations by local governments Pharming's ability to achieve acceptable levels of coverage and reimbursement might be hindered by new unfavorable pricing regulations introduced by local government(s). This could be due to political developments or sentiment changes in the healthcare industry which could result in a material adverse effect on the business and financial performance. The laws and regulations that govern marketing approvals, pricing, insurance coverage and reimbursement for new drug products vary widely from country to country. Current and future legislation may significantly change the approval requirements in ways that could involve additional costs, cause delays in obtaining approvals or lead to unfavorable pricing and reimbursement. All European governments perform a detailed reimbursement assessment of all manufacturers' products before agreeing to a sales price and before the products can be marketed. In some markets, prescription drug pricing remains subject to continuing governmental control even after initial approval is granted. What are we doing to manage the risk? Pharming continues to monitor changes in pricing regulations implemented by local government(s). Pharming will continue to work directly with them and various private insurers to facilitate patient access to our current and future product offerings. We aim to do this at prices that are acceptable, while allowing Pharming to meet its financial obligations. Pharming Group N.V. Annual Report 2024 | 39 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Operational risks Operational risks Operational or operating risks in this case refers to third-party risks. These include production and manufacturing risks, information security risk, and personnel risk. Management, as part of the Enterprise Risk Management process, performed a risk assessment of operational risks and highlighted the most critical risks in this report. Inadequate IT portfolio, IT recovery and information security There is a risk that the IT portfolio and IT infrastructure may not be able to support Pharming's growth strategy. In addition, we may not be able to respond timely to or recover from IT incidents, which may compromise the confidentiality, integrity, and availability of sensitive data, including the personal data of employees, contractors, patients and other stakeholders. What are we doing to manage the risk? Pharming's IT governance has been strengthened with the IT Board and sound IT Strategy, including a comprehensive IT/Cybersecurity Roadmap 2024-25. IT is professionalizing to become a business partner and to become compliant with the NIS2 directive and SOX. The implementation of a full Information Technology Infrastructure Library (ITIL) and process will help to ensure that IT incidents are identified, formally documented, evaluated and that all follow-up actions are defined and executed on a timely basis. In addition, there will be increased monitoring of IT applications using automated tools and proper governance. Disruptions in the end-to-end supply chain and/or product demand Disruptions in the end-to-end supply chain or a change in product demand might lead to overproduction or underproduction and could disrupt the timely delivery of products to patients in existing and new markets/countries. In addition, for rare disease products requiring low production volumes, it is not always economically feasible to have multiple manufacturers. What are we doing to manage the risk? To be able to act on potential disruptions in demand, internal alignment between all relevant stakeholders and oversight during execution of the plans are critical. For products currently early in development stage, a new process has been developed and will be executed. For products which are in a launch strategy phase, including a proper shelf-life extension strategy, a commercial process is being developed. As part of the commercialization process and plans the right level of safety stock should be assessed considering regulatory requirements and financial value. Pharming continues to maintain an adequate safety stock based on our projections and estimates. Furthermore, our Enterprise Resource Planning (ERP) system helps us improve inventory planning. Stocks of materials are monitored closely by us as well as by the Contract Manufacturing Organizations (CMOs) we work with. Safety stocks of intermediate and finished products are being built/maintained to bridge a potential gap in the manufacturing and release process. Execution of the plans is monitored as part of the S&OP process which is continuously being reviewed for improvement opportunities. For newly developed and approved products, such as Joenja®, the Operations team starts a timely search for qualified CMOs who can handle with agility changes in the demand forecast. The latter allows us to build up a network of preferred CMOs, while carefully evaluating global supply chains as we develop and bring new products to market. As part of our continuous improvement process, alternative sources of materials are being evaluated as part of product development and manufacturing. This may include a second supplier for drug substance, filters, disposable bags, or moving from disposable materials to stainless steel. Product quality issues The quality of a product is determined by systems (quality and IT related), people, and the manufacturing process. Inadequate performance and deviations in one or more of these areas can lead to product quality issues and yield products that are not approved by the regulatory authorities. What are we doing to manage the risk? The following procedures are in place at Pharming to ensure the proper production and delivery of quality products: • The QA systems and processes internally as well as externally are audited on a regular basis and we use qualified CXOs. • Our GXP critical IT systems and manufacturing processes are qualified and validated. • Our materials are sourced from qualified suppliers. • Our clinical and commercial are tested according to specification. • Qualified people are being hired and people are continuously trained. • Standardized procedures are being used. • Development of formal processes for Budgeting and Forecasting. Pharming Group N.V. Annual Report 2024 | 40 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Operational risks The improvement areas that have been identified are GAP assessments, monitoring of critical suppliers/CXOs using KPIs, and having a better understanding of local requirement (e.g., Japan, Brazil). Inadequate performance by third-party R&D vendors Inadequate performance by third-party R&D vendors might impair the regulatory approval and commercialization of Pharming's product candidates. As such, Pharming's product candidates could be delayed, terminated, or the R&D programs could be materially and irreversibly impacted, due to mismanagement of the R&D process or by not having access to qualified and cost-effective third-party R&D vendors. Before a product may be sold, we must conduct clinical trials to demonstrate that our product candidates are safe and effective for human use. The results of those clinical trials are used as the basis to obtain approval from regulatory authorities, such as the United States' FDA. We are required to conduct clinical trials using an appropriate number of trial sites and patients to support efficacy and safety. The timing, number of trial sites and number of patients required for clinical trials vary substantially between regulatory bodies. As such, Pharming may spend several years and incur substantial expense in completing certain clinical trials. In addition, due to the rarity of the diseases we treat, we may have difficulty finding appropriate clinical trial sites and enough patients to participate in our clinical trials, particularly if competitors are conducting clinical trials in similar patient populations. Pharming relies on third-party R&D vendors to conduct significant aspects of our clinical trials, and we intend to rely on them in the future. Although Pharming designs clinical trials for product candidates, we depend on third-party R&D vendors to perform the clinical trials. Our reliance on third-party R&D vendors reduces our direct control over the clinical trial activities but does not relieve us of our regulatory or contractual duties. Outsourcing activities to a third-party is costly, potentially less efficient, and in general, more difficult to claim priority. The third- party R&D vendors we rely on may fail to successfully carry out their contractual duties or meet expected deadlines, which may cause delays in our preclinical and clinical studies. Furthermore, if the Clinical Laboratory Organizations (CLOs) or Contract Research Organizations (CROs) do not perform preclinical studies and clinical trials in a satisfactory manner, breach their obligations or fail to comply with regulatory requirements and other compliance obligations, then the development, regulatory approval and commercialization of our product candidates may be delayed, may not obtain regulatory approval and commercialize our product candidates, or our development programs may be materially and irreversibly harmed. If we are unable to rely on preclinical and clinical data collected by our CLOs or CROs, we could be required to repeat, extend the duration of, or increase the size of any clinical trials we conduct, and this could significantly delay commercialization and require significantly greater expenditures. What are we doing to manage the risk? Pharming's Legal, Regulatory, Research and Development, CMC, and Clinical departments focus on initiating and maintaining good relationships with competent third-party R&D vendors to help execute our drug development process. Importance is placed on the past performance and the reputation of the R&D vendors. Additionally, Pharming has structured Procurement and External Partnership Management activities to oversee and manage the quality and flexibility of outsourced commitments, while maintaining good relationships. In addition to maintaining control and managing the outsourced processes, we hold periodic meetings with the CLOs, CROs and CMOs to assess overall contract performance, timeliness of service and work quality. Pharming maintains good relationships with these parties, with a focus on the timeliness of services supplied. Contract progress and work quality are closely monitored, protocols and reports are duly reviewed for completeness and accuracy, and penalties for contractual defaults are carefully considered. The project management function maintains a risk mitigation log with adequate contingency planning. Pharming Group N.V. Annual Report 2024 | 41 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Compliance and reputational risks Compliance and reputational risks Management, as part of the Enterprise Risk Management process, performed risk assessments over compliance and reputational risks and highlighted the most critical risks in this report. However, other risks are also continuously being managed and monitored by the business, these include breaches of ethical standards; data privacy; bribery and corruption; contractual obligations; negative public opinion and increased regulatory scrutiny. Pharming has issued a revised Code of Conduct that addresses key risks related to potential breaches of ethical standards. In 2021, Pharming created a Disclosure Committee, made up of disparate departments within the business, who actively monitor the disclosure of Inside Information. Pharming has also created an Antitrust policy and a Promotional Compliance Policy, for which a comprehensive compliance training program is made available across the Company. Non-compliance with national and international laws and regulations There is a risk of non-compliance with national and international rules and regulations in the jurisdictions that Pharming operates, including non-compliance with local labor laws and with internal company policies or procedures. Violations of these laws and policies could lead to penalties or even the closure of our business in jurisdictions in which Pharming operates. Corporate Governance and Dutch US/listing requirements The Board of Directors and the Executive Committee of Pharming must comply with a variety of legal requirements, laws, regulations and Corporate Governance codes and best practices in the execution of their tasks and responsibilities, considering the dual stock listings in the Netherlands (Euronext Amsterdam) and the United States (Nasdaq). Non-compliance with corporate governance codes (AFM/SEC) and best practices may expose Pharming to criticism from investors and therefore reputation risks and a potential impact on the stock price. Pharming must comply with Dutch and U.S. reporting and filing/notification obligations and rules & regulations of the AFM, Euronext Amsterdam, NASDAQ, and SEC. Non-compliance can lead to penalties, fines or even a forced de-listing. It can also lead to adverse claims from investors/shareholders. Fair Trade and Anti-Competitive behavior Pharming executes several activities that may have the potential of restricting competition on the markets in which it operates. These include interactions with competitors (e.g., inappropriate strategy alignment or exchange of sensitive information), customers (e.g., excessive, predatory pricing or loyalty-inducing practices), distributors or suppliers (e.g., fixing resale prices). Depending on the market context and the nature of the arrangements. These activities generate a potential risk of breaching fair trade standards. Inside information In addition, Pharming may, consciously or unconsciously, engage in unlawful disclosure of Inside Information and engage in market manipulation. Furthermore, Pharming may enter into non- disclosure agreements and other agreements with third parties whereby confidential information may arise. As such, financial losses, regulatory fines, claims or reputational damage may occur. Non-compliance with internal policies or procedures Material changes in the applicable laws and regulations not timely reflected in our (internal) policies or procedures or lack of awareness on applicable (internal) policies and procedures, which could lead to penalties or reputational damage. What are we doing to manage the risk? Pharming works with various second line of defense teams (a.o., quality, legal, business integrity/compliance, corporate secretary, and internal control) to monitor compliance with applicable laws and regulations and compliance with the Dutch and SEC corporate governance codes and filing obligations. Pharming is enhancing its policies, processes, internal controls, and documentation related to key processes. We have a global Business Integrity program and a roadmap towards SOX compliance. The resource model for Business Integrity and Compliance has been strengthened. An annual review of the Enterprise Risk Management (ERM) top 20 risks has been held with the Executive Committee and risk mitigations plans and mitigation actions have been agreed and are in process. We have an "Insider Trading Code" in place that complies with the Market Abuse Regulation (MAR) and other prevailing laws and regulations and maintains a "Restricted Persons" register. Our Disclosure Committee actively monitors the timely disclosure of Inside Information and compliance with the disclosure requirements applicable to Pharming. Lastly, Pharming is developing a a set of regional standard operating procedures (SOPs) and policies, as well as a compliance network to assist in local compliance of local rules and regulations. Pharming Group N.V. Annual Report 2024 | 42 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Compliance and reputational risks Non-compliance with pharmaceutical industry rules and regulations Off-label and Disguised Promotion Pharming generates and duly communicates its products' data, including data which is outside existing approved indications for those products. These activities generate a potential risk of "off label promotion" if used to push for the sale of such products outside the approved indications. Furthermore, Pharming communicates on non-promotional scientific or corporate information, for example in the context of disease awareness, media relations or during service-related activities such as advisory board meetings. These activities could generate a potential risk of accusations of "disguised promotion" if such data and scientific information is used outside of the intended purpose to inform and educate in a non-promotional way, but instead is used for the purpose of promoting the sales of Pharming's products. What are we doing to manage the risk? Policies, processes, and experienced subject matter expert personnel provide the controls and oversight to help mitigate the risk of off-label and disguised promotions. The personnel utilize the policies and processes to review, evaluate and reject or approve these forms of communications. We have control documents such as our Code of Conduct, Advisory Board Policy, Promotional Compliance Policy, U.S. Field Manual, Non- Promotional Satellite Symposia Policy, Promotional Review Policy and process, Medical Review procedure, and others to establish requirements in compliance with applicable laws, regulations, and codes. Training is conducted for individuals responsible for these activities to re-enforce the requirements, standards and educate on the compliance requirements. Targeted monitoring and auditing are conducted to evaluate compliance with established requirements. Pharmacovigilance Pharming conducts a comprehensive pharmacovigilance (PV) program. Yet, the PV laws and requirements are very strict and a finding of non-compliance could cause Pharming to suffer reputational damage, incur monetary fines, and force us to stop or halt business activities. Pharming may be required to perform studies of additional indications/dosing strengths in case of frequent off-label usage. The handling of off-label cases incurs additional costs. Despite its efforts, Pharming may not meet its requirement to adequately train employees to properly identify and report PV incidents. What are we doing to manage the risk? The following actions are in place to help prevent a possible non-compliance with pharmacovigilance requirements: • We actively monitor key performance indicators related to expedited and periodic reporting. • Pharmacovigilance audits are performed by our internal Quality Assurance team and independent auditors and may include reviews of our business partners, such as specialty pharmacies, license partners and vendors. Action plans are implemented based on the outcome of the audits. • There are regular reviews and updates of the pharmacovigilance process and procedures and continuous training of the related staff. Non-compliance with SOX regulations In connection with the audits of our financial statements, we have identified material weaknesses in our internal control over financial reporting, specifically related to corporate income tax processes and complex, non-routine transactions with significant accounting impact. Although as previously mentioned, certain mitigating measures were implemented during the year ended December 31, 2024, we did effectively mitigate all previously identified material weaknesses, as indicated above. If we fail to maintain an effective system of internal controls, we may not be able to accurately or timely report our financial condition or results of operations, which may adversely impact our business and stock price. What are we doing to manage the risk? We are in the process of remediating the material weaknesses identified, including further developing and implementing formal policies, processes, controls and documentation relating to our financial reporting. Specifically, management plans to: • Enhance internal control procedures for reviewing corporate income tax. • Implement additional internal control procedures for reviewing complex, non-routine accounting transactions. This may include modifications in how we utilize, and review data received from third-party specialists supporting these areas. • Provide additional training and guidance for relevant personnel performing internal control procedures, specific to these areas. • Conduct testing in these areas earlier in the year to confirm that the relevant internal control procedures are performing as intended and make further amendments to our control framework if needed. Non-compliance to ESG standards The risk that Pharming is unable to comply with ESG reporting requirements (e.g., EU Taxonomy, CSRD, Climate-related disclosures from the SEC) due to other priorities and lack of expertise and guidance, which could lead to an adverse effect on Pharming's credibility with investors and shareholders and the Company's reputation, resulting in potential future regulatory fines. Our business and operations may be negatively impacted by the failure, or perceived failure, of achieving our environmental, social and governance objectives. We continue to work towards operating our business in an environmentally responsible and Pharming Group N.V. Annual Report 2024 | 43 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Compliance and reputational risks socially inclusive manner. Stakeholders, including our investors and our employees, have increasingly focused on our ESG practices. If our ESG practices fail to meet these stakeholders' expectations and standards, there could be a material adverse effect on our reputation, business and, ultimately, our stock price. Achieving our ESG goals requires long-term investments and broad, coordinated collaboration which may require Pharming to incur additional costs or allocate additional resources towards monitoring, reporting, and implementing our ESG practices. Furthermore, we may fail to accurately assess our stakeholders' ESG priorities, as such priorities have evolved and will continue to evolve. Any failure or perceived failure to meet our ESG program priorities could result in a material adverse effect on our reputation, business, and stock price. What are we doing to manage this risk? Pharming does not view ESG purely as an obligation, where the key is to be able to deliver the mandatory information. Instead, Pharming wishes to embed ESG more explicitly in our strategy, planning processes and internal reward systems to build a sustainable business. Integration of ESG into the overall strategy and practices is of utmost importance to guide and build a solid foundation to help improve our long-term performance. It can support sustainable development, have a positive impact on the environment and society, enhance the corporate reputation, strengthen stakeholder engagement, improve the workplace and the health and well-being of employees, help ensure accountability and transparency, and manage risks and opportunities. Pharming established an ESG steering committee with the aim of integrating ESG principals into Pharming's strategy. Please refer to section Sustainability (ESG) of this Annual Report for detailed information on our ESG activities. Pharming Group N.V. Annual Report 2024 | 44 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Financial and fraud risks Financial and fraud risks Management, as part of the Enterprise Risk Management process, performed a risk assessment over financial and fraud risks and highlighted the most critical risks in this report. Enterprise value not recognized by investors If our investors do not properly recognize our equity (or enterprise) value, Pharming may be at an increased risk of an unsolicited take-over approach. A clear internal view is needed on what our valuation should be and how we expect investors to react to news and company updates. It is also critical to properly inform shareholders so they can assess our commercial and development progress and value our shares appropriately. What are we doing to manage the risk? We periodically assess and update our long-term financial model. We also have a robust Investor Relations and Corporate Communications strategy, including strategic external communications and regular contacts with equity research analysts and investors to ensure they receive the information needed for valuation purposes. Inaccurate or fraudulent financial reporting The risk that Pharming's financial statements contain a material misstatement and/or that the company is not SOX compliant or not adhering to other AFM/SEC financial reporting requirements or timelines, due to lack of awareness of GAAP, IFRS, AFM, SEC rules, internal policies, processes and procedures, or intentional misbehavior (fraud) caused by internal or external pressures, resulting in a loss of confidence in the accounts by key external stakeholders and internal users, reputational damage and personal liability exposure for Directors. Fraud risk can be unexpected financial, material, or reputational loss as the result of fraudulent action(s) of persons internal or external to the organization. The risk of inaccurate financial reporting includes poor operational decisions, reputational damage, economic loss, penalties, fines, legal action, claims from shareholders, and even bankruptcy. Pharming can ensure accurate financial reporting by employing a network of internal controls, fortified by financial software which helps prevent and detect errors. What are we doing to manage the risk? An Anti-Fraud Framework was established encompassing fraud assessments. A quarterly fraud disclosure questionnaire must be completed by managers and process owners with the purpose of identifying changes in controls, which could allude to possible (indications of) fraud. In addition, an Anti-Fraud Policy and Alert Reporting Investigation Procedure were developed, and fraud awareness trainings were given and/or made available to all employees. The Company has implemented controls to establish a fraud governance process, to create a sound anti-fraud culture, to implement and maintain clear preventive and detective fraud controls. Pharming continues to develop sound internal controls and formalize best practices processes, to prevent balance sheet and P&L risks by periodically reviewing balance sheet and P&L accounts and as well as reviewing financial transaction for completeness and accuracy. Insufficient liquidity The risk that Pharming has insufficient cash to fund its operations and meet its financial obligations, due to adverse capital, credit market conditions and/or an inability to generate sufficient cash, resulting in a lower credit rating, or a weaker financial position could have an adverse impact on business continuity. Adverse capital and credit market conditions may significantly affect the ability to meet liquidity needs, cause limitations in accessing capital or face an in cost of capital. The same concern is valid for access to our restricted cash, which could be held at banks that experience financial difficulties. Prolonged exposure to liquidity risk or inability to generate enough income for the projects in scope, could lead to the inability to meet financial obligations, which could increase the risk of insolvency. What are we doing to manage the risk? Pharming is working on improving cash flow forecasting models to provide a more accurate view of liquidity. A Company financial forecasting model has been made, which forms the basis for this information for the medium- and long-term horizon (15 years forward). Any new business development project needs to be included in this model to understand the impact on cash flow and liquidity. Funding (both equity and debt) will be adjusted to the liquidity needs of the Company. In addition, we have recently hired a head of Treasury to further assist us in our liquidity forecasting endeavors. Pharming diversifies its cash holdings across several banks and across short term investment instruments including bank deposits, government treasury certificates and money market funds to reduce counterparty risk. Fluctuations in Foreign Exchange market rates Due to the international scope of our operations, fluctuations in exchange rates, particularly between the Euro and the U.S. dollar, may create an adverse impact. While the Company is headquartered in the Netherlands, we source materials, Pharming Group N.V. Annual Report 2024 | 45 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Financial and fraud risks products, and services from several countries outside the EU which are paid in local currencies. In addition to the U.S. commercialization of RUCONEST® and Joenja®, the projected commercialization of Joenja® in the European Union, as well as the commercialization of Joenja® in additional geographies, we expect to receive payments and generate costs in U.S. dollars, euro, the British pound, as well as additional currencies. Fluctuations in foreign exchange rates between the euro and the U.S. dollar, as well as other currencies may impact our result. As the intercompany balance payable by Pharming Healthcare Inc. to Pharming Technologies B.V. is in euros and the books of Pharming Healthcare Inc. are in U.S. dollars (functional currency Pharming Healthcare Inc. is U.S. dollars) a rate fluctuation may impact the balance payable of Pharming Healthcare Inc. to Pharming Technologies B.V. and is reflected in the income statement. Since the majority of Pharming's sales are invoiced and paid in U.S. dollars, and most of its costs and liabilities are valued in euros, any change in the relevant exchange rate means a corresponding change in the euro value of sales and a corresponding change in the loan balance in euros. What are we doing to manage the risk? Foreign exchange results is partly remediated by having Pharming Healthcare Inc. repaying its net payable balance to Pharming Technologies B.V., Pharming Group N.V. or Pharming Americas B.V. promptly using its cash balances. We aim to book and pay all intercompany charges and intercompany invoices on receipt of invoice as soon as possible, thereby reducing the intercompany balances. Pharming entities manage foreign exchange result risk on their cash by holding the cash balances in its own functional currency. Corporate Governance Corporate Governance Statement 47 Board of Directors 54 Executive Committee 57 Report of the Board of Directors 60 Remuneration Report 2024 72 Pharming Group N.V. Annual Report 2024 | 47 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Corporate Governance Statement Corporate Governance Statement The following paragraphs set out the Company's compliance to the Dutch Corporate Governance Code, our shareholder structure and the management structure of the Company. Dutch Corporate Governance Code The Dutch Corporate Governance Code (DCGC) contains both principles and best practice provisions for Boards of Directors, shareholders and general meetings of shareholders, financial reporting, auditors, disclosure, compliance, and enforcement standards. A copy of the DCGC can be found on www.mccg.nl. As a Dutch listed company, the Company is subject to the DCGC and therefore required to disclose in its Annual Board Report to what extent it complied with the principles and best practice provisions of the updated DCGC. Where we do not comply (for example, because of a conflicting NASDAQ requirement or otherwise), the Company shall state in its Annual Report why, and to what extent the Company deviated from it. Our most substantial deviations from the DCGC throughout the year 2024 are summarized below: • Article 3.3.2 of the DCGC (Remuneration of supervisory board members) recommends against providing equity awards as part of the compensation of a Non-Executive Director. However, we deviate from this recommendation and grant equity awards to our Non-Executive Directors, consistent with U.S. market practice and in accordance with the Remuneration Policy for the Board of Directors, as adopted by the General Meeting of Shareholders on May 21, 2024. To safeguard the independence of the Non-Executive Directors, consistent with the intentions of the DCGC, the number of shares awarded has been fixed and the grant has not been linked to the performance of Pharming Group. • Article 3.3.3 of the DCGC recommends that shares held by a Board member in the company on whose Board they serve should be long-term investments only. This provision has been deleted from the updated Remuneration Policy that was approved by the General Meeting of May 21, 2024, in accordance with the recommendations of proxy advisors, to preserve full independence of the non-executive directors, consistent with the intentions of the DCGC. • Article 4.2.3 of the DCGC (Meetings and presentations) recommends that all analyst meetings, analyst presentations, presentations to institutional or other investors and press conferences can be followed in real time, by means of webcasting, telephone or otherwise. Considering the Company's size, it would create an excessive burden to provide facilities that enable shareholders to follow in real time all the meetings with analysts, presentations to analysts, presentations to investors referred to in the best practice provision. However, the Company ensures that presentation materials used in such meetings or presentations are posted on the website in a timely fashion. Some meetings (such as the Annual General Meeting of Shareholders) are accessible in real time at least in audio format. The Company also holds both pre-recorded and live webinars at which key events such as quarterly financial statements or large corporate actions can be discussed. Meetings discussing financial results and other significant news are announced and conducted in accordance with this provision. In 2024 the Board of Directors approved the Stakeholder Dialogue Policy which is now published on our website. As a result thereof we no longer deviate from article 1.1.5 of the DCGC (Dialogue with stakeholders) which recommends companies to draw up a policy to facilitate dialogues with relevant stakeholders of the company. Articles of Association The prevailing Articles of Association of the Company are posted on the Company's website and are available in English and Dutch. The Articles of Association of the Company were most recently amended on May 23, 2023. Shareholder structure All ordinary shares issued by the Company are traded on Euronext Amsterdam under the symbol "PHARM". In addition, American Depository Receipts (ADRs) are traded on the NASDAQ Global Market Composite under the symbol "PHAR". JP Morgan Chase Bank, N.A. (located at 383 Madison Avenue, Floor 11, New York, NY 10179) acts as the depositary and registrar for the American depositary share (ADS) representing our ordinary shares. Each ADS will represent an ownership interest in a designated number of ordinary shares in our capital which will be deposited from time to time with the custodian, as agent of the depositary, under the deposit agreement among ourselves, the depositary (JP Morgan Chase Bank, N.A.), and the holders of American Depositary Receipts evidencing ADSs ("ADRs"), or other beneficial owners of an interest in ADSs from time to time. The rights of the holders of ADRs, or of other beneficial owners of the ADSs, derive from the terms of the deposit agreement as described above and, in the case of the beneficial owners, from the arrangements between the relevant beneficial owner and the Pharming Group N.V. Annual Report 2024 | 48 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Corporate Governance Statement holder of the corresponding ADRs. The obligations of the depositary and its agents are also set out in the aforesaid deposit agreement. For information on the ADSs and ADRs, you should read the prospectus (hereafter referred to the "ADS Prospectus") that is included in the Registration Statement on Form F-1 (333-250984), as filed with the SEC on December 17, 2020, and as further supplemented by the 2024 Annual Report on Form-20 F document, as filed with the SEC on April 3, 2025. As a foreign private issuer traded on Euronext Amsterdam, the Company is permitted to follow certain home country corporate governance practices in lieu of certain Nasdaq requirements. The rights of holders of ordinary shares and, therefore, certain of the rights of holders of the ADSs, are governed by Dutch law, including the provisions of the Dutch Corporate Governance Code, and by our Articles of Association. Reference is made to the subsequent sections for a summary of the main governance practices applied by Pharming. More details on the Company's authorized share capital and issued shares and the number of listed ADSs can be found in the Financial Review chapter of this Report and note 18. Shareholders' Equity. On April 25, 2024, the Company entered into a Subscription agreement under which the Company issued €100 million of convertible bonds due 2029 (the "New Bonds") to investors. The Company used the net proceeds of the New Bonds for the repurchase of the outstanding €125 million 3.00% senior unsecured convertible bonds due 2025 issued on January 21, 2020 (the "2025 Bonds"; ISIN: XS2105716554). For more details, reference is made to note 19. Convertible bonds in this report. Group structure The following table lists the (wholly-owned) subsidiaries of the Company and therefore, together with the Company, sets out the Pharming Group structure as per December 31, 2024: Entity Registered office Investment Pharming Americas B.V. The Netherlands 100% Pharming Intellectual Property B.V. The Netherlands 100% Pharming Technologies B.V. The Netherlands 100% Pharming Research & Development B.V. The Netherlands 100% Pharming UK Ltd. United Kingdom 100% Pharming Australia Pty. Ltd. Australia 100% Broekman Instituut B.V. The Netherlands 100% Pharming Healthcare, Inc. The United States 100% ProBio, Inc. The United States 100% The Company also holds a 23.60% minority stake in BioConnection Investments B.V. (BioConnection). BioConnection is a Dutch contract manufacturing organization that manufactures the sterile sealed vials of Pharming's product RUCONEST® from the purified drug substance. The investment has been treated as an associate company of the Group. More details can be found in note 13. Since July 1, 2021, Pharming Group entered into a strategic collaboration with Orchard Therapeutics (Orchard), a global gene therapy leader, to research, develop, manufacture, and commercialize OTL-105. During 2023, the Company held 1.0% of Orchard's ordinary share capital. On October 5, 2023, Orchard announced it had entered into a definitive agreement under which Japanese, Kyowa Kirin Co., Ltd., planned to acquire Orchard. The transaction was completed on January 24, 2024. On May 8, 2024, Pharming announced the decision to terminate the research collaboration & licensing agreement with Orchard Therapeutics and discontinue the OTL-105 program. More details can be found in note 13.3. During 2024, the Company completed the liquidation of its wholly owned subsidiary, Pharming B.V., a dormant subsidiary. The decision to liquidate was made as part of the Company's strategic realignment and efforts to streamline operations. The liquidation process was finalized on December 17, 2024, and Pharming B.V. was formally dissolved. Upon liquidation, there were no material assets or liabilities available at the dormant subsidiary. The liquidation did not result in a material financial impact for the Company and has been fully recognized in the Company's financial position. The liquidation process was conducted in accordance with applicable laws and regulations. No anti-takeover measures in place The Board of Directors believes that Pharming shareholders are the best persons to judge whether a takeover bid for the Company is fair for them at the time of offer, and after receiving an informed opinion from the Board of Directors regarding the advantages and disadvantages of such bid. Therefore, there are no anti-takeover measures in place that would restrict the Company's shareholders from receiving information about, or from accepting or rejecting a bid for their shares. However, we have adopted several provisions which may have an impact on a takeover of our Company, including: • a provision in our Articles of Association that Directors may only be removed at the general meeting of shareholders by a resolution adopted with a majority of the votes cast, representing at least one third of the issued share capital; if the majority of the votes cast are cast in favor of the removal, but such majority does not represent at least one third of the issued share capital, a new meeting may be convened in which the removal may be resolved upon with a majority of the votes cast, irrespective of the percentage of the issued share capital represented at the meeting; • members of the Board of Directors being appointed on the basis of a binding nomination by the Board of Directors, which can only be overruled by the general meeting of shareholders by a resolution adopted with the majority of the votes cast, Pharming Group N.V. Annual Report 2024 | 49 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Corporate Governance Statement provided such majority represents at least one third of the issued share capital; if the nomination is rejected by the majority of the votes cast, but such majority does not represent at least one third of the issued share capital, a new meeting may be convened in which the nomination may be rejected with a majority of the votes cast, irrespective of the percentage of the issued share capital represented at the meeting; in that event, the Board of Directors shall make a new nomination; and • requirements that certain matters, including an amendment of our Articles of Association or dissolution of the Company, may only be brought to our shareholders for a vote upon a proposal by the Board of Directors. It is also noted that the share-based incentive plans for our staff members, including share option plans and Long-term Incentive Plan (LTIP) schemes, will vest automatically and unconditionally in the event of a change of control of the Company, in accordance with the terms thereof. The automatic vesting in the event of a change of control does not apply for the share-based incentive plans for our Executive Director/CEO and the members of the Executive Committee, respectively. The Non-Executive Directors have no outstanding entitlements under any incentive plan. According to the aforementioned share-based incentive plans for the Executive Director/CEO and the Executive Committee members, the Executive Director and Executive Officers will be entitled to pro-rata vesting of outstanding but unallocated shares in the case of a change of control that has been approved by the General Meeting of Shareholders. However, this right may only be exercised for the performance period that has lapsed at that moment, subject to the pro-rata achievement of the applicable performance measures and targets. The remaining shares will vest in accordance with the predetermined times (i.e., no accelerated vesting) which is subject to the achievement of the applicable performance measures and targets. Moreover, in case of an unsolicited change of control becoming unconditional, the aforementioned share-based incentive plans do not vest automatically as result of the change of control becoming unconditional. In case of an event resulting in a change of control or in case of the announcement of a proposed formal public offer for the shares in the Company, the Board of Directors - without the participation of the Executive Director - can decide to settle the allocated shares in cash. Moreover, on April 25, 2024, the Company entered into a Subscription agreement under which the Company issued €100 million of convertible bonds due 2029 (the "New Bonds") to investors. Under this agreement, the conditions of the Bonds specify that in the event of a change of control of the Company, the conversion price of the Bonds which may be converted into Pharming shares, may change. This will be dependent upon the time elapsed between initiation of the Bonds and the date of the change of control relative to the normal repayment date of the Bonds in 2029. Such a provision is standard for bond instruments of this kind. Finally, it is noted that the execution of each, new share-based incentive plan for our staff members requires a resolution by the CEO and the Executive Committee. Such execution is not controlled by the staff members but is governed by the detailed terms and conditions applicable to these plans. Board structure Introduction The Company has a one-tier board structure, with a single Board of Directors composed of Executive and Non-Executive Directors. The Executive Directors manage the day-to-day business and operations of the Company and implement the Company's strategy, supported by a (non-statutory) Executive Committee chaired by the Chief Executive Officer. The Non-Executive Directors focus on the supervision of the policies and the functioning of the performance of the duties by the Executive Director(s) and the Company's general state of affairs. Our one-tier board structure allows the Company to integrate and leverage the knowledge, experience and wide range of backgrounds, education and expertise among the Executive and Non-Executive Directors into one single corporate body. We believe that the one-tier board structure accordingly warrants the quality and adequacy of our internal governance processes and decision-making. While the majority of Dutch companies traditionally apply a two- tier board structure, the DCGC endorses and facilitates one-tier board structures and includes specific principles and best practice provisions for the composition and functioning of one-tier boards. The Company complies with these principles and provisions. Role and responsibilities The statutory Board of Directors as a collective has shared responsibility for the management of the Company and the general course of affairs of the Company. Accordingly, the Board of Directors is, inter alia, jointly responsible for the following: • the continuity of the Company; • maintaining a culture focused on sustainable long-term value creation for the Company; • the achievement of the Company's objectives; • the long-term strategy; • the structure and operation of the internal risk management and control systems; • the financial reporting process; • compliance with laws and regulations; • the Company-shareholder relationship and stakeholder dialogues/management; and • corporate social responsibility (ESG) aspects that are relevant to the Company. The Board of Directors is assisted by the Corporate Governance Committee to determine and monitor the corporate governance structure of the Company and Group and to ensure compliance by the Company with the DCGC and other applicable rules and regulations governing corporate governance-related matters for Pharming Group N.V. Annual Report 2024 | 50 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Corporate Governance Statement Pharming. Supported by the Audit Committee, the Board of Directors supervises the financial and non-financial reporting process, ESG aspects that are relevant to the Company and the effectiveness of the internal risk management and control system. Assisted by the Remuneration Committee, the Board of Directors determines the remuneration of the individual members of the Board of Directors (within the remuneration policy adopted by the Annual General Meeting of Shareholders) and the members of the Executive Committee. Finally, supported by the Transaction Committee, the Board of Directors reviews and decides on M&A or other business development transactions. The reports of the respective committees are presented separately in this section. We believe that we have sufficiently ensured the independent supervision by our Non-Executive Directors via the following safeguards, each time in accordance with the DCGC: • The majority of our Board of Directors comprise of Non- Executive Directors. Our Board of Directors is currently seated by seven Non-Executive Directors and one Executive Director. • All Non-Executive Directors are independent within the meaning of the DCGC and applicable U.S. rules and regulations, as evaluated annually. • The Non-Executive Directors supervise the way in which the Executive Director/CEO, supported by the non-statutory Executive Committee, implements the Company's strategy and sustainable long-term value creation. • The Chairperson of our Board of Directors is a Non-Executive Director. Hence, our Board of Directors is not chaired by an Executive Director. • The Board of Directors' committees, (the Audit Committee, Remuneration Committee, Corporate Governance Committee, and the Transaction Committee), exclusively comprise of Non- Executive Directors. None of these committees is chaired by the Chairperson of the Board of Directors. The Board of Directors has adopted Board Rules that govern the procedures and decision making of the Board of Directors. The Board Rules describe in more detail the matters, including the related decision-making powers, which have been delegated to the Executive Director/CEO. The Board of Directors has also adopted charters to govern the procedures and decision-making of the committees established by the Board of Directors. The Board Rules and charters have been drafted to ensure compliance by the Company with both Dutch Corporate law, the DCGC and applicable U.S. rules and regulations. The Board Rules and charters are published on the Company's website. The Board Rules and the committee charters are evaluated at least every two years. Appointment Directors All members of our Board of Directors are statutory directors of the Company and appointed by the General Meeting of Shareholders upon a binding nomination of the Board of Directors. Upon the appointment of a member of the Board of Directors, the General Meeting shall also be proposed to determine whether that person is appointed as Executive Director or as Non-Executive Director. The Articles of Association of the Company contain an indemnification arrangement for current and former directors and other officers or employees, consistent with market practice and including customary carve-outs. The Company entered into indemnification agreements with the individual (Executive and Non-Executive) Directors and the Executive Officers or included indemnification provisions in their employment or management services agreements that are fully aligned with the indemnification arrangement in the articles of association. Pharming Group N.V. Annual Report 2024 | 51 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Corporate Governance Statement Board of Directors: composition 2024 In 2024, the Board of Directors comprised one Executive Director (also the Chief Executive Officer/CEO) and seven Non-Executive Directors. The first term of Ms. Barbara Yanni and Dr. Mark Pykett expired on the occasion of the Annual General Meeting of Shareholders on May 21, 2024. Ms. Yanni and Dr. Pykett were reappointed by the Annual General Meeting of Shareholders on May 21, 2024, for a term of four years (expiring at the closing of the Annual General Meeting of Shareholders to be held in the year 2028). Details on the composition of the Board of Directors in 2024 are included in the following table: Board composition 2024 Name Position (Re) appointments Current Term Dr. Richard Peters Chairperson 2023 Up to September 25, 2027 Mr. Sijmen de Vries Chief Executive Officer, Executive Director 2008, 2013, 2017, 2021 Resigned at EGM March 4, 2025. Term was scheduled to expire at AGM in 2025. Ms. Deborah Jorn Vice Chairperson 2019, 2023 Up to AGM in 2025 Ms. Barbara Yanni Non-Executive Director 2020, 2024 Up to AGM in 2028 Dr. Mark Pykett Non-Executive Director 2020, 2024 Up to AGM in 2028 Mr. Leonard Kruimer Non-Executive Director 2021 Up to AGM in 2025 Ms. Jabine van der Meijs Non-Executive Director 2021 Up to AGM in 2025 Mr. Steven Baert Non-Executive Director 2021 Up to AGM in 2025 The composition of the Board of Directors reflects the Company's growth ambitions and long-term strategy and meets Dutch statutory requirements. As reflected in the table below, the terms of Deborah Jorn, Leonard Kruimer, Steven Baert and Jabine van der Meijs are scheduled to expire at the closing of the AGM on June 11, 2025. On October 24, 2024, Sijmen de Vries announced that he would not be available for reappointment upon the scheduled expiration of his term. The Extraordinary General Meeting of Shareholders that was held on March 4, 2025, appointed Fabrice Chouraqui (date of birth: August 1, 1970, French national, U.S. citizen), upon the binding nomination of the Board of Directors, as the new Executive Director/CEO for a term of four years, effective as of the closing of the Extraordinary General Meeting of Shareholders and expiring at the closing of the Annual General Meeting of Shareholders to be held in the year 2029. Sijmen de Vries resigned from the Board of Directors at that same moment. The notice to convene the Annual General Meeting of Shareholders on June 11, 2025, will include details with regard to the nomination for reappointment, or the succession, as the case may be, of Deborah Jorn, Leonard Kruimer, Steven Baert and Jabine van der Meijs. Executive Committee The non-statutory Executive Committee supports the CEO with the execution of his tasks and responsibilities as Executive Director. Accordingly, the CEO is supported by the Executive Committee members in managing Pharming's day-to-day operations, ensuring sufficient oversight, and the execution of the strategy and all other goals and objectives across the organization. The Board of Directors adopted a charter for the Executive Committee that governs the procedures and the tasks and responsibilities of the Executive Committee, in accordance with the Board Rules. The Executive Committee Charter is compliant with Dutch Corporate law and the DCGC, as well as applicable U.S. rules. The Executive Committee Charter, which is evaluated at least every two years, has been published on the Company's website. Pharming Group N.V. Annual Report 2024 | 52 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Corporate Governance Statement The members of the Executive Committee report to the CEO. The CEO also chairs the meetings of the Executive Committee. The Board of Directors regularly receives business updates from the Executive Committee that are discussed during the scheduled meetings of the Board of Directors. The members of the Executive Committee also attend, as guests, the meetings of the Board of Directors held to discuss the quarterly and full year results, the Annual Report, the annual goals and objectives and the annual budget. Finally, the Board Rules specify those matters that require a decision by the full Board of Directors. Ms. Inés Bernal was appointed Chief People Officer, or CPO, effective December 1, 2024, to lead the development, execution and monitoring of Pharming's people- and culture-strategy, including the oversight and management of all other people- and culture-related aspects across the global Pharming organization. The following table sets forth information regarding the current members of the Executive Committee, who are referred to as Executive Officers, including their respective positions: Executive Committee Name Position First appointed in managerial capacity Executive Director/Chair Mr. Fabrice Chouraqui Chief Executive Officer and Executive Director March 4, 2025 Mr. Sijmen de Vries Chief Executive Officer and Executive Director October 13, 2008. Resigned on March 4, 2025 Executive Officers Mr. Anurag Relan Chief Medical Officer June 1, 2021 Mr. Jeroen Wakkerman Chief Financial Officer November 16, 2020 Ms. Mireille Sanders Chief Operations Officer August 1, 2019 Mr. Stephen Toor Chief Commercial Officer January 1, 2017 Mr. Ruud van Outersterp Chief Ethics & Compliance Officer May 1, 2021 Dr. Alexander Breidenbach Chief Business Officer September 1, 2023 Ms. Inés Bernal Chief People Officer December 1, 2024 More details regarding the current members of the Board of Directors and the Executive Committee can be found on the Pharming website. Composition of the Board of Directors and Executive Committee To further increase the range of viewpoints, perspectives, talents and experience within the Board and the Executive Committee, we strive for a mix of ages in the composition of those bodies, but we do not set a specific target in this respect. We believe that it is important for the Board of Directors and the Executive Committee to have a mix of experiences, qualifications, knowledge and abilities. We seek to combine the skills and experience of long-standing members of the Board of Directors and the Executive Committee with the fresh perspectives, insights, skills and experiences of new members. Experience and expertise of the Board of Directors and Executive Committee In terms of experience and expertise, we require the Board of Directors and the Executive Committee to be composed of individuals who are knowledgeable in one or more of the following areas to drive and support the successful execution of our sustainable long-term strategy: • the industry and markets in which the Company operates; • general management; • finance, administration and accounting; • risk management and controls; • strategy; • governance; • marketing and sales; • manufacturing, production and supply; • innovation, research and development; • safety, environment and sustainability; • human resources, personnel and organization; • stakeholder management; • information technology; and • legal and regulatory affairs. The Board of Directors conducted a self-evaluation to map the knowledge of the individual Non-Executive Members. That self- evaluation confirmed that the members, as a group, have the knowledge and skills available to adequately fulfil the tasks and responsibilities assigned to them. Pharming Group N.V. Annual Report 2024 | 53 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Corporate Governance Statement Works Council (the Netherlands) The Dutch Works Council was established in January 2023, with nine elected members representing all departments and locations across the Netherlands. In 2024, the Council continued to strengthen its expertise and processes to enhance representation of employees in company decision-making. Its primary goal is to formalize the value of employee feedback and insights, ensuring structured and effective dialogues between employees and management. The Works Council is an internal body that promotes and protects the interests of our employees in the Company. The Works Council under Dutch law has (among other things) the right to prior consultation for decisions or measures that will have a major impact on employees, including significant restructurings and large-scale recruitment. It also has the right of consent for decisions regarding (changes to) terms of employment of staff members (e.g., working hours), job and salary systems/structures and staff data processing. The Works Council also serves as a sounding board for the Board of Directors and Executive Committee, adding the employee perspective to decisions that may affect our organization and future. Pharming Group N.V. Annual Report 2024 | 54 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Board of Directors Board of Directors Fabrice Chouraqui, MBA, PharmD (1970) Title Chief Executive Officer (CEO) and Executive Director effective from March 4, 2025. Nationality French national, U.S. citizen Date of initial appointment March 4, 2025 Mr. Fabrice Chouraqui has been our Chief Executive Officer (CEO) and Executive Director since March 2025. Mr. Chouraqui was appointed for a four-year term at the EGM held on March 4, 2025. Mr. Chouraqui is responsible for the daily management of Pharming and the execution of our strategy. Mr. Chouraqui is a global pharmaceutical executive with a record of value creation at Flagship Pioneering, Novartis and Bristol-Myers Squibb. Other functions Non-Executive Board Member of Cellarity and also holds the position of independent Board member of OranoMed, a non-listed (and therefore private) subsidiary of Orano Group. Read more about Fabrice Chouraqui here Sijmen de Vries, MD, MBA (1959) Title Chief Executive Officer (CEO) and Executive Director up until March 4, 2025 Nationality Dutch Date of initial appointment October 13, 2008 Mr. Sijmen de Vries was our Chief Executive Officer (CEO) and Executive Director from 2008 until his resignation at the EGM held on March 4, 2025, following the appointment of Mr. Fabrice Chouraqui as our new CEO. To ensure a smooth hand-over of tasks and responsibilities, Mr. de Vries will remain a strategic advisor to the new CEO until December 31, 2025. Other functions Member of the Supervisory Board of BioConnection Investments B.V. and Non-Executive Director of Biodexa Pharmaceuticals plc. (formerly Midatech Pharma plc). Read more about Sijmen de Vries here Dr. Richard Peters (1962) Title Chairperson of the Board of Directors, Member of the Corporate Governance Committee and Member of the Transaction Committee Nationality Belgian national, U.S. citizen Date of initial appointment September 25, 2023 Dr. Richard Peters has been the Chairperson of the Board of Directors since September 25, 2023. Dr. Peters has over 30 years of experience in the healthcare industry and academia. Other functions Non-Executive Director for Kineta and Aprea Therapeutics, and is the founder and Executive Chairperson of TellBio. He is also a corporate advisor to Aura Biosciences. Read more about Dr. Richard Peters here Pharming Group N.V. Annual Report 2024 | 55 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Board of Directors Deborah Jorn, MBA (1958) Title Vice-Chair of the Board of Directors, Member of the Remuneration Committee and Member of the Audit Committee Nationality American Date of initial appointment May 22, 2019 Ms. Deborah Jorn has served as a Non-Executive Director since 2019. Ms. Jorn was reappointed by the General Meeting of Shareholders held on May 17, 2023, for a term of two years, ending at the Annual General Meeting in 2025. Other functions Ms. Jorn is Director & Founder of Jorn Consulting LLC. Ms. Jorn served as a member of the Board of Directors of Orexigen Therapeutics, Inc. from May 2016 until July 2018, Diurnal Group in 2021 and 2022 and Viveve Medical, Inc from May 2016 until March 2023. Read more about Deborah Jorn here Leonard Kruimer (1958) Title Non-Executive Director, Chairperson of the Audit Committee and Member of the Transaction Committee Nationality Dutch Date of initial appointment May 19, 2021 Mr. Leonard Kruimer has served as a Non-Executive Director since 2021. He has more than 40 years of experience in corporate finance, planning, and strategy, including 25 years in senior executive positions in private and publicly listed biotechnology companies. Other functions Mr. Kruimer is currently Chair of the Board at Swedish BioInvent International AB. In addition, he is a board member of both Zealand Pharma A/S in Copenhagen and of Swiss based Basiliea International AG. Previously, he served as member of the Board of Directors for Calgary- based Oncolytics Biotech Inc. He is Director of AI Global Investments (Netherlands) PCC Ltd. Read more about Leonard Kruimer here Jabine van der Meijs (1966) Title Non-Executive Director, Chairperson of the Corporate Governance Committee, Member of the Audit Committee and Member of the Remuneration Committee Nationality Dutch Date of initial appointment May 19, 2021 Ms. Jabine van der Meijs has served as a Non-Executive Director since 2021. Other functions Ms. van der Meijs is a Non-Executive Director at VFS Global AG and Grundfos Holding A/S. Ms. van der Meijs is also a Member of the Supervisory Board of Chane (formerly Koole Terminals Holding B.V.) and of the Centre for Human Drug Research. Previously, Ms. van der Meijs served as a Non-Executive Director on various boards, including V.Group Ltd, Kendrion N.V., Aeroports de Paris (France) and Brisbane Airport Corporation. Read more about Jabine van der Meijs here Pharming Group N.V. Annual Report 2024 | 56 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Board of Directors Barbara Yanni (1954) Title Non-Executive Director, Chairperson of the Transaction Committee, Member of the Audit Committee and Member of the Corporate Governance Committee Nationality American Date of initial appointment December 11, 2020 Ms. Barbara Yanni has served as a Non-Executive Director since 2020. Other functions Ms. Yanni currently serves on the Board of Directors of one other public biotechnology company: Trevena, Inc., and two private biotechnology companies, Mesentech and Delsona Therapeutics. Ms. Yanni formerly served on the Board of Directors of other public biotech companies, including Oncorus, Inc. (2021-2023) and Vaccinex (2015-2025) Read more about Barbara Yanni here Dr. Mark Pykett, VMD, PhD (1964) Title Non-Executive Director, Member of the Remuneration Committee and Member of the Transaction Committee Nationality American Date of initial appointment December 11, 2020 Dr. Mark Pykett has served as a Non-Executive Director since 2020. Other functions Dr. Pykett is currently Chief Executive Officer and Director of Orogen Therapeutics. Dr. Pykett currently also serves on the Board of Directors of the private companies InFlectis BioSciences and Myopax. Read more about Dr. Mark Pykett here Steven Baert (1974) Title Non-Executive Director, Chairperson of the Remuneration Committee and Member of the Corporate Governance Committee Nationality Belgian, Swiss citizen until March 31, 2023, U.S. citizen since April 1, 2023 Date of initial appointment May 19, 2021 Ms. Steven Baert has served as a Non-Executive Director since 2021. Other functions Mr. Baert currently serves as the Chief People Officer and member of the Executive Committee of GE Vernova, a leading energy transition company. He also serves as a Non-Executive Director on the supervisory board and member of the Compensation Committee of Servier, a French privately held pharmaceutical company and serves on the Board of the WeSeeHope USA, a charity that focuses on empowering children isolated by poverty in Africa. Read more about Steven Baert here Pharming Group N.V. Annual Report 2024 | 57 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Board of Directors Executive Committee Fabrice Chouraqui, MBA, PharmD (1970) Title Chief Executive Officer (CEO) and Executive Director effective from March 4, 2025. Nationality French national, U.S. citizen Date of initial appointment March 4, 2025 Mr. Fabrice Chouraqui has been our Chief Executive Officer (CEO) and Executive Director since March 2025. Mr. Chouraqui was appointed for a four-year term at the EGM held on March 4, 2025. Mr. Chouraqui is responsible for the daily management of Pharming and the execution of our strategy. Mr. Chouraqui is a global pharmaceutical executive with a record of value creation at Flagship Pioneering, Novartis and Bristol-Myers Squibb. Other functions Non-Executive Board Member of Cellarity and also holds the position of independent Board member of OranoMed, a non-listed (and therefore private) subsidiary of Orano Group. Read more about Fabrice Chouraqui here Sijmen de Vries, MD, MBA (1959) Title Chief Executive Officer (CEO) and Executive Director up until March 4, 2025 Nationality Dutch Date of initial appointment October 13, 2008 Mr. Sijmen de Vries was our Chief Executive Officer (CEO) and Executive Officer from 2008 until his resignation at the EGM held on March 4, 2025, following the appointment of Fabrice Chouraqui as our new CEO. To ensure a smooth hand-over of tasks and responsibilities, Mr. de Vries will remain a strategic advisor to the new CEO until December 31, 2025. Other functions Member of the Supervisory Board of BioConnection Investments B.V. and Non-Executive Director of Biodexa Pharmaceuticals plc., formerly Midatech Pharma plc. Read more about Sijmen de Vries here Jeroen Wakkerman (1969) Title Chief Financial Officer Nationality Dutch Date of initial appointment November 16, 2020 Mr. Jeroen Wakkerman was appointed Chief Financial Officer (CFO) in 2020. From 2015 to 2020, Mr. Wakkerman served as Chief Financial Officer of Nutreco N.V., a global leader in animal nutrition and aqua feed. Other functions Member of the Supervisory Board of the Dutch Diabetes Foundation. Read more about Jeroen Wakkerman here Pharming Group N.V. Annual Report 2024 | 58 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Board of Directors Anurag Relan, MD (1972) Title Chief Medical Officer Nationality American Date of initial appointment June 1, 2021 Mr. Anurag Relan was appointed Chief Medical Officer (CMO) in 2021. Prior to holding the CMO role, Mr. Relan served as Vice President Clinical Research and Medical Affairs at Pharming. Over the last 19 years at Pharming, Mr. Relan has held several leadership roles within the Company. Read more about Anurag Relan here Stephen Toor (1971) Title Chief Commercial Officer Nationality American Date of initial appointment January 1, 2017 Mr. Stephen Toor was appointed Chief Commercial Officer (CCO) in 2020. He oversees Pharming’s U.S. and ex-U.S. operations and the company's expansion to key markets and regions globally. Prior to that, Mr. Toor served as President and General Manager of Pharming Healthcare, Inc., our US subsidiary, and also oversaw the broader Americas region. Read more about Stephen Toor here Mireille Sanders, MSc (1968) Title Chief Operations Officer Nationality Dutch Date of Initial appointment August 1, 2019 Ms. Mireille Sanders was appointed Chief Operations Officer (COO) in 2020. Between 2019 and 2020, Ms. Sanders served as our Senior Vice President, Operations. Read more about Mireille Sanders here Pharming Group N.V. Annual Report 2024 | 59 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Board of Directors Ruud van Outersterp (1964) Title Chief Ethics & Compliance Officer Nationality Dutch Date of initial appointment May 1, 2021 Mr. Ruud van Outersterp was appointed Chief Ethics & Compliance Officer (CECO) in 2021. He also served as Company Secretary from April 2020 to April 2022. Other functions Mr. van Outersterp is also a Member of the Supervisory Board of a healthcare institution and is a teacher at the Governance Academy in Leusden, the Netherlands. Read more about Ruud van Outersterp here Dr. Alexander Breidenbach, MBA (1963) Title Chief Business Officer Nationality German Date of initial appointment September 1, 2023 Dr. Alexander Breidenbach was appointed Chief Business Officer (CBO) in 2023. Dr. Breidenbach has more than 20 years of partnering, R&D and management experience in bioscience. Dr. Breidenbach is responsible for the development and execution of our growth strategy and our future plans. Read more about Dr. Alexander Breidenbach here Inés Bernal (1977) Title Chief People Officer Nationality Australian Date of initial appointment December 1, 2024 Mr. Inés Bernal was appointed Chief People Officer (CPO) as of December 1, 2024, to lead the development, execution and monitoring of Pharming's people- and culture-strategy including the oversight and management of all other people- and culture-related aspects across the global Pharming organization. Over her 20-year career, Ms. Bernal has held numerous human resources leadership roles across a variety of industries. Read more about Inés Bernal here Pharming Group N.V. Annual Report 2024 | 60 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Report of the Board of Directors Report of the Board of Directors Composition and independence The (changes in the) composition of the Board of Directors for the financial year 2024 can be found in the section Corporate Governance. In the opinion of the Board of Directors, as verified annually, all Non-Executive Directors meet the independence requirements referred to in best practice provisions 2.1.7 to 2.1.9 inclusive of the DCGC as of December 31, 2024. The Board Rules require each Director to promptly report any actual or potential conflict of interest. Directors are also required to disclose any other board positions. An up-to-date overview of other board positions held by the current members of the Board of Directors can be found on our website. Details on the remuneration paid to the members of the Board of Directors, including a summary of the prevailing Remuneration Policy for the Board of Directors, as adopted by the General Meeting of Shareholders on May 21, 2024, can be found in the section Remuneration Report 2024 in this Annual Report. To the extent required, the Remuneration Report is incorporated herein by reference. Name: Sijmen de Vries Richard Peters Deborah Jorn Leonard Kruimer Jabine van der Meijs Barbara Yanni Mark Pykett Steven Baert Year of birth 1959 1962 1958 1958 1966 1954 1964 1974 Gender Male Male Female Male Female Female Male Male Nationality Dutch Belgian (U.S. citizen) American Dutch Dutch American American Belgian (U.S. resident) Pharming Group N.V. Annual Report 2024 | 61 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Report of the Board of Directors Activities Frequency of meetings The Board of Directors met twelve times in 2024 (2023: twelve times). Two meetings (in March and October) were held in the U.S., and one meeting (May 21, 2024) in Leiden, the Netherlands. Committee meetings were also held on each of these occasions (please refer to the subsequent subsections on the Committees). The other meetings were held using virtual meeting facilities. All members of the Board of Directors attended the Annual General Meeting of Shareholders held on May 21, 2024. The Executive Director also attended each of these meetings, except for when the composition, performance and the remuneration of the Executive Director were discussed, and related voting took place. The members of the Executive Committee also attended the scheduled quarterly meetings of the Board of Directors for business updates, the quarterly results, the 2023 Annual Report and the 2025 annual budget. In addition to the scheduled meetings, the Non-Executive Directors also attended several online meetings in connection with the search process for a new CEO, in anticipation of the scheduled expiration of the mandate of Mr. Sijmen de Vries, as CEO. Reference is made to the paragraph "Summary of specific activities" below. The individual presence (P) or absence (A) of the Non-Executive Directors during the scheduled meetings is reflected in the following schedule: Date January 24 March 12 March 19 March 20 April 2 May 7 May 21 July 1 July 31 October 22 October 23 December 13 % Present during 2024 Dr. Peters P P P P P P P P P P P P 100% Ms. Jorn P P P P P P P P P P P P 100% Ms. Yanni P P P P P P P P P P P P 100% Dr. Pykett P P P P P P P P P P P P 100% Ms. van der Meijs P P P P P P P P P P P P 100% Mr. Kruimer A P P P P P P P P P P P 92% Mr. Baert A P P P A P A P P P P P 75% Pharming Group N.V. Annual Report 2024 | 62 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Report of the Board of Directors Summary of specific activities As announced by the Board of Directors on October 24, 2024, Mr. Sijmen de Vries indicated that he would not be available for reappointment when his current term as Executive Director and Chief Executive Officer would expire at the Annual General Meeting of Shareholders on June 11, 2025. The Board started a search process, which was led by the Corporate Governance Committee and designed to nominate as new CEO a global biopharmaceutical executive, who has been successful in operating in different cross-cultural and regulatory settings. We looked for a seasoned and purpose-driven leader, with the experience and expertise that are required to develop and execute successfully Pharming's long-term growth strategy, and to work seamlessly with the Board of Directors and the Executive Committee to shape Pharming as a leading rare disease company. An extensive process was followed and all Non-Executive Directors were regularly updated and consulted. All Non- Executive Directors also participated in the interviews with the candidates on the short-list. Following these interviews, the Board unanimously concluded that Mr. Fabrice Chouraqui would be the right candidate to take over the executive leadership of Pharming and the Board of Directors adopted a resolution, upon the recommendation of the Corporate Governance Committee, to nominate Mr. Chouraqui to the Extraordinary General Meeting of Shareholders (EGM) that was decided to be convened for March 4, 2025. The Board of Directors also approved, upon the recommendation of the Remuneration Committee, the package agreed with Mr. Sijmen de Vries in view of his resignation at the EGM. During the scheduled meetings, the Board of Directors regularly discussed the Company's long-term strategy and the accompanying risks. Building on these updates and discussions, the Board of Directors, during the meeting on March 12, 2024, discussed and approved the annual goals and objectives for 2024 as proposed by the Executive Director - together with the Executive Committee - to support the execution of the Company's long-term strategy. The Board of Directors was regularly updated by the Executive Director and the Executive Committee during the scheduled quarterly meetings on the progress made in the further execution of the Company's strategy. Recurring topics discussed at these updates included commercial performance (sales results, forecasts and other developments with regards to RUCONEST®, in the U.S., Europe and the rest of the world, and Joenja® in the U.S.), the group's financial performance and ongoing clinical studies and product development programs. A tracker report, summarizing the performance on the specific Company's annual goals and objectives, was part of the quarterly updates. Among the other important topics covered by the Board in 2024 during its scheduled quarterly meetings were the review, discussion and, if applicable, endorsement and approval of: • the Annual Report for the financial year 2023; • the filing of the 2023 Annual Report on Form 20-F with the SEC; • the quarterly and full year financial and operational results, including related press releases; • the proposed grant of share-based compensation to staff members; • the annual budget for 2025; and • the Company's long-term goals and objectives. The Board of Directors, supported by the Audit Committee, discussed at least quarterly with the CEO and the members of the Executive Committee the enterprise, operational, compliance, financial and other risks to which the Company is exposed and the functioning of the Company's internal risk control framework and enterprise risk framework. Reference is made to the section Risk management and internal control in this Annual Report. Supported by the Audit Committee, the Board of Directors also reviewed and discussed the management letter, the audit report and the audit plan, respectively, as submitted by the external auditor, and the outcome of the annual evaluation of the performance by the external auditor. Supported by the Audit Committee the Board of Directors also reviewed and discussed the internal audit plan, internal audit charter and audit reports, respectively, as submitted by the internal Audit department. Throughout the year, the Board of Directors, supported by its Transaction Committee, reviewed certain business development opportunities presented by the Executive Committee. The Board of Directors approved on December 15, 2024, the public cash offer to the shareholders of Abliva AB of SEK 0.45 per share via a resolution outside of a meeting. Further details on this transaction can be found in note 28. Events after the reporting period. For reasons of confidentiality, taking into consideration Pharming's status of listed company, no further details are provided on any of the other business development opportunities that were considered. The Board of Directors was regularly updated by the Executive Director and the Executive Committee on the status of the regulatory approval process for leniolisib, including the EMA review. The Board of Directors was also updated regularly on the international launch plans for leniolisib and approved in that context, amongst others, the establishment of a legal entity in the United Kingdom, France and Germany. The Board of Directors was also regularly updated on the group's ESG Program, as endorsed by the Board on October 25, 2022. Reference is made to the separate section Sustainability (ESG) in this Annual Report. The Board of Directors acknowledged that good progress had been realized in the ESG Program on completion of the various milestones. Pharming Group N.V. Annual Report 2024 | 63 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Report of the Board of Directors During its meeting of March 20, 2024, the Board of Directors approved the Double Materiality Assessment and the ESG goals, based upon the outcome of the double materiality assessment of the material topics defined for the Company. During its meeting of December 13, 2024, the Board of Directors approved the proposed metrics for the material ESG topics Business Ethics, Animal Welfare and Climate Change and the proposed targets for Climate Change. The Board of Directors discussed on March 12, 2024, the performance by the Executive Director/CEO during the year 2023. This discussion was based on an evaluation by the Corporate Governance Committee and the Remuneration Committee of the Executive Director/CEO's performance on the goals and objectives that had been agreed upon. That same process was followed in the first quarter of 2025 for the evaluation of the Executive Director/CEO's performance on the goals and objectives agreed upon for 2024. During the meeting on March 12, 2025, the Board of Directors endorsed the recommendations by the committees on performance scores and the resulting pay-out for 2024 under the incentive plans as approved by our shareholders in May 2024. Reference is made to the section Remuneration Report 2024. During its meeting on March 12, 2024, the Board of Directors also endorsed to establish the Internal Audit Function and approved the Internal Audit Charter. The Internal Audit Function is designed to provide an independent, objective assurance and related consulting activity intended to add value and improve the organization's operations. It will help the organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of our processes. Reference is made to the separate report of the Audit Committee, as included in this Annual Report. The Board of Directors took into consideration, amongst other items, the ongoing implementation of the Internal Control Framework (ICF) and Enterprise Risk Management (ERM) framework, as further described in the section Risk management and internal control in this Annual Report. The Board of Directors also welcomed the appointment of the Chief People Officer, who was appointed as per December 1, 2024. The Board of Directors adopted a written resolution to approve the appointment. To preserve good governance, both the Board of Directors and the respective committees, installed by the Board of Directors, conduct a self-evaluation annually. In accordance with the DCGC, these evaluations generally cover the work and functioning of the Board of Directors, and include the activities in relation to the key objectives and long-term strategy of the Company, the interaction among the members and in relation to the Executive Committee, lessons learned, and finally, the structure and composition of the Board of Directors to ensure that the members bring the correct skill sets and background knowledge for the benefit of the Company. The self-evaluation for the committees also extends to the activities and functioning (including decision-making processes) of the committees. Finally, the self-evaluation covers the effectiveness of the Board Rules and the charters that govern the activities and decision-making processes by the Board of Directors and each of the committees, respectively. The self-evaluation for the year 2024 was held in the fourth quarter of 2024 by way of a comprehensive review of the effectiveness of the Board and its committees. The self-evaluation process included an online survey which was completed by the members of the Board of Directors. The main findings and proposed follow up actions were discussed by the Corporate Governance Committee during their meeting on January 21, 2025, and by the full Board of Directors on March 12, 2025. In summary positive feedback was received on the board dynamics and discussions, the size, composition and expertise of the Board of Directors. Throughout the year, the Board of Directors engaged in several training and development initiatives to strengthen governance and oversight capabilities. Board members participated in a comprehensive corporate governance training led by a leading law firm, enhancing their understanding of fiduciary responsibilities and regulatory compliance. Additionally, the Board consulted with external experts to evaluate the potential impacts on the outcomes of the U.S presidential elections on the organization's strategic priorities. To address emerging risks, the Board also underwent specialized training from a cybersecurity expert, equipping them with tools and insights to safeguard the organization against cyber threats. Pharming Group N.V. Annual Report 2024 | 64 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Report of the Board of Directors Committee activities in 2024 Audit Committee The Audit Committee supports the Board of Directors in monitoring and ensuring the integrity of the Company's financial reporting. The committee related tasks and responsibilities include, without limitation: • the supervision and monitoring of the financial accounting process; • the monitoring of the effectiveness of the Company's internal management system, internal audit system, and internal risk management and control systems; • the review of intended material financial disclosures by the Company (including the Annual Report, the Annual Report on Form 20-F, quarterly results and the related draft press releases); • the review of disclosures in applicable filings as required by the U.S. Securities Act, the Exchange Act and their related rules; • the appointment of the Director Audit & Risk, the monitoring of the independence of the internal audit department and the annual evaluation of the internal audit department's performance; • the review of the internal audit plan and audit reports, respectively; • the nomination for (re)appointment or dismissal of the external auditor, the monitoring of the external auditor's independence and the annual evaluation of the external auditor's performance; • the review of the external auditor's audit plan, management letter and audit report, respectively; • the monitoring of the Company's funding, application of information and communication technology by the Company, including risks relating to cybersecurity, and the Company's tax policy; and • the monitoring the Company's ESG initiatives and disclosure to ensure alignment with regulatory requirements, stakeholder expectations and the Company's strategic objectives. The Audit Committee is governed by a charter that complies with the best practice provisions of the DCGC and applicable NASDAQ rules. The charter was last updated on March 20, 2024, following an evaluation by the Audit Committee of the charter previously approved in December 2020. During the financial year 2024, the Audit Committee consisted of Mr. Kruimer (Chairperson), Ms. Jorn, Ms. Yanni and Ms. van der Meijs. The composition of our Audit Committee is consistent with the best practice provisions of the DCGC and with applicable SEC and Nasdaq regulations. The Audit Committee met six times in 2024 (2023: six times), either virtually or in person (in the USA on October 22, 2024). The external auditor, Deloitte Accountants B.V. (Deloitte) attended each meeting of the Audit Committee. The CEO and the CFO attended all meetings of the Audit Committee as guests. The individual presence (P) or absence (A) of the members of the Audit Committee is reflected in the following schedule: Date March 12 April 2 May 6 July 30 October 22 December 6 % Present during 2024 Mr. Kruimer P P P P P P 100% Ms. Jorn P P P A P P 83% Ms. Yanni P P P P P P 100% Ms. van der Meijs P P P P P P 100% During the Audit Committee meetings held in 2024, the following recurring items were reviewed and discussed: the quarterly and full year financial statements, the Annual Report 2023 and the Annual Report 2023 on Form 20-F, each time leading to a recommendation to the Board of Directors for approval and publication. The Audit Committee, during its review, monitored the financial statements, the sales revenues and underlying trends, the financing costs, cost control measures, the supply inventories, developments in the company's cash position and cash flow, and the impact of currency exchange risks on presented company results. During the meeting held on December 6, 2024, the Audit Committee discussed the proposed annual budget for 2025. The Audit Committee recommended the Board of Directors to endorse and approve the proposed annual budget. The Audit Committee reviewed and discussed the external auditor's 2024 audit plan (including proposed fees) and the management letter submitted by the external auditor. The Audit Committee approved the 2024 audit plan at the meeting held on July 30, 2024. The 2024 Audit Plan and the draft management letters were also shared and discussed with the full Board of Directors. Pharming Group N.V. Annual Report 2024 | 65 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Report of the Board of Directors The Audit Committee was updated by the CFO and the Director Audit & Risk during each of its scheduled meetings. Updates included discussion on the design and the status of the implementation of the enhanced internal control framework and enterprise risk management for compliance by the Company with the U.S. Sarbanes-Oxley Act, Public Company Accounting Oversight Board (PCAOB) and other applicable accounting standards. The Audit Committee also reviewed and discussed the internal audit reports during the year, including key findings, recommendations and management responses, to ensure the adequacy and effectiveness of internal controls and risk management processes. The Audit Committee updated the Board of Directors during its scheduled meetings. The Audit Committee also conducted an annual review of the Related Person Transactions within the meaning of the Company's Related Person Policy. The Audit Committee concluded on October 22, 2024, based on the information gathered, that (i) each of these transactions was entered into in the ordinary course of business, and (ii) without the involvement of the relevant related persons. Accordingly, the Audit Committee ratified these transactions in accordance with the prevailing policy. Reference is made to note 24. Related Party Transactions for the relevant transactions as per December 31, 2024. The Audit Committee furthermore reviewed and updated the Related Party Transaction Policy and recommended to the Board of Directors to approve the revised policy. The Board of Directors approved the Related Party Transaction Policy at its meeting held on October 23, 2024. Deloitte was appointed by the General Meeting of Shareholders held on May 17, 2023, as external auditor for the financial years 2023 and 2024. During its meeting on April 2, 2024, the Audit Committee discussed and confirmed the independence of the external auditor. The Audit Committee discussed during its meeting on March 11, 2025, the outcome of the evaluation and the performance of Deloitte and its duties as external auditor for the financial year 2024. The evaluation resulted in an overall positive outcome. During the meeting held on May 6, 2024, the Audit Committee reviewed and discussed the Tax Strategy, Tax Policy and Corporate Treasury Policy and made a recommendation to the Board of Directors to approve the revised policies and Tax Strategy. The Audit Committee also reviewed the CAPEX Policy and concluded that no changes were necessary to the existing policy. The Board of Directors approved the Tax Strategy, Tax Policy, and Corporate Treasury Policy at its meeting held on May 7, 2024. On March 12, 2024, the Audit Committee recommended to establish the Internal Audit Function and the Internal Audit Charter, which recommendation was endorsed by the Board on March 12, 2024. The Internal Audit responsibilities will be managed internally, however, to remain independent, the individual audit engagements will be either co-sourced or fully outsourced. The Internal Audit Function will be managed and led by the Director Audit & Risk, who, in the role of Head of the Audit Function, reports administratively to the CEO and functionally to the Chairperson of the Audit Committee. The Director Audit & Risk communicates and interacts directly with the Audit Committee, including in executive sessions and between Audit Committee meetings as appropriate. The Internal Audit Function is designed to provide an independent, objective assurance and related consulting activity intended to add value and improve the organization's operations. It will help the organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of our processes. At least once every two years with annual update, the Director Audit & Risk shall draw up an internal audit plan for review by the Audit Committee, the External Auditor and Executive Committee. The internal audit plan requires approval of the Audit Committee and the Board of Directors. The Director Audit & Risk will communicate the impact of resource limitations and significant interim changes to the Executive Committee and the Audit Committee. During the meeting held on October 22, 2024, the Audit Committee reviewed and discussed the Internal Audit Plan for 2025-2026 and the appointment of a new Director Audit & Risk. Upon the recommendation of the Audit Committee the Board of Directors approved the 2025-2026 Internal Audit Plan and the appointment of a new Director Audit & Risk during its meeting held on October 23, 2024. During its meeting of December 6, 2024, the Audit Committee reviewed and discussed the mandatory metrics according to EU CSRD law for the material ESG topics Business Ethics, Animal Welfare and Climate Change and the proposed targets for Climate Change and recommended the Board to endorse these metrics and targets. More details can be found in the Sustainability (ESG) section of this annual report. Pharming Group N.V. Annual Report 2024 | 66 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Report of the Board of Directors Remuneration Committee The tasks performed by the Remuneration Committee includes, amongst many items, the preparation and proposals, for the compensation of individual members of our Board of Directors, in accordance with the remuneration policy as adopted by our shareholders, as well as preparing our Remuneration Report to be included in our Annual Report. The composition of our Remuneration Committee is consistent with the best practice provisions of the DCGC, SEC and Nasdaq requirements. During the financial year 2024, the Remuneration Committee consisted of Mr. Baert (Chairperson), Ms. Jorn, Dr. Pykett and Ms. van der Meijs. The Remuneration Committee met five times in 2024 (2023: five times). The meeting on March 20, 2024, and the meeting on October 23, 2024, was held in the USA. The other meetings were held virtually. The individual presence (P) or absence (A) of the members of the Remuneration Committee is reflected in the following schedule: Date January 26 February 20 March 20 October 14 October 24 % Present during 2024 Mr. Baert P P P P P 100% Ms. Jorn P P P P P 100% Dr. Pykett P P P P P 100% Ms. van der Meijs P P P P P 100% The Remuneration Committee is governed by a charter that complies with the best practice provisions of the DCGC and applicable NASDAQ rules. The charter was last updated on March 20, 2024, following an evaluation by the Remuneration Committee of the charter previously approved in December 2020. During the meetings held on January 26, 2024, which was a joined meeting of the Remuneration Committee and the Corporate Governance Committee, and February 20, 2024, the Remuneration Committee discussed the company-wide goals and objectives as proposed by the Executive Director and the Executive Committee for 2024, including the applicable incentive plans. Related recommendations were submitted to the Board of Directors. During the meeting of January 26, 2024, the performance by the CEO in 2023 was also discussed. During the meeting on January 26, 2024, and March 20, 2024, the Remuneration Committee also discussed the incentive arrangements for the Executive Director/CEO and the members of the Executive Committee, including the determination for 2023 of the cash bonus and the vesting percentage for the already granted restricted performance shares and the conditional grant of performance shares for 2024-2026. The meetings resulted in recommendations on each of the agenda items that were submitted to the Board of Directors, in accordance with the applicable incentive plans. The Remuneration Committee recognized that the committee fees have not changed since 2020 and that the frequency of committee meetings and the workload has in the meantime increased significantly, taking into consideration Pharming's growth (including the launch of the second indication in the U.S. in 2023), its significant and still growing presence in the U.S. market, the long-term strategy and ambitions, and the enhanced tasks and responsibilities associated with the membership of the committees. Therefore, the Remuneration Committee concluded that the fees paid to the chairs and members of the respective Board committees needed to be increased as follows with retrospective effect from January 1, 2024: • Chair of the Audit Committee: €15,000; • Chairs of the other Committees: €12,500; and • Membership fees: 50% of the chair fee: €7,500 for Audit Committee membership and €6,250 for the membership of other committees. The increase also ensures that the fees remain aligned with the European market benchmark for the fees of the committee members. Related proposals were submitted to and approved by the Annual General Meeting of Shareholders scheduled for May 21, 2024. Pharming Group N.V. Annual Report 2024 | 67 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Report of the Board of Directors In light of the benchmark data provided by AON Radford, the Remuneration Committee decided to recommend to the Board of Directors to increase the fixed salary of the Executive Director (€624,000 in 2023) by 3% to €642,720 (US$694,395) for 2024. This salary increase takes into consideration the outcome of the compensation merit increases for our wider workforce and the performance by the Executive Director in 2023. The average 2024 increase for Pharming employees employed in Europe was 3%, as such the CEO received an increase that stayed at the same level as the average of the employees. The Board of Directors has adopted the Remuneration Committee's recommendation. The Remuneration Committee engaged an independent reward consultancy firm for a review of the Remuneration Policy for the Board of Directors that was adopted by our shareholders on December 11, 2020. The review of the Remuneration Policy was initiated in anticipation of the scheduled submission of a new draft Remuneration Policy for adoption by the Annual General Meeting of Shareholders scheduled for May 21, 2024, in accordance with Dutch statutory provisions requiring remuneration policies for board members to be submitted for adoption (at least) every four years. The review was aimed to ensure continued alignment of the new policy with market practice and applicable rules, regulations, and disclosures, taking into due consideration the guidelines issued by proxy advisors (including ISS and Glass Lewis) and expectations from external stakeholders. Accordingly, the Remuneration Committee engaged with several parties, including proxy advisors, to obtain their feedback on the new draft remuneration policy. Following these engagements, several changes were implemented, and this resulted in a revised remuneration policy that was adopted by the Annual General Meeting of Shareholders on May 21, 2024. The new policy became effective January 1, 2024. During the meetings held on October 14, 2024, and October 24, 2024, the Remuneration Committee discussed the annual grant of share-based compensation to staff members which resulted in a related recommendation that was submitted to the Board of Directors. The Remuneration Committee also engaged the independent reward consultancy firm for a review of the Remuneration Report template to ensure continued alignment of the report with market practice and applicable rules and regulations. Based on this review, the Remuneration Committee decided on several changes, reducing the size of the report, in addition to those changes already included in the report on the year 2023. Reference is made to the Remuneration Report 2024 as included in this Annual Report. The Remuneration Committee was consulted on the remuneration package to be paid to Mr. Chouraqui, as the new CEO, during the search process and initiated, amongst others, an external benchmark analysis to ensure consistency of the package with market standards in the US, the country of residence of Mr. Chouraqui. The Remuneration Committee was also consulted on the package agreed with Mr. Sijmen de Vries, in view of his resignation as CEO with effect from the EGM on March 4, 2025. More details can be found in the Remuneration Report as included in this Annual Report. The Remuneration Committee adopted written resolutions regarding the remuneration package granted to Mr. Chouraqui and the package agreed with Mr. de Vries. The Remuneration Committee was also consulted on the proposed remuneration package for Ms. Ines Bernal, as the new Chief People Officer, and made a positive recommendation to the Board of Directors on August 22, 2024, via a resolution outside of a meeting. Pharming Group N.V. Annual Report 2024 | 68 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Report of the Board of Directors Corporate Governance Committee During the financial year 2024, the Corporate Governance Committee consisted of Ms. van der Meijs (Chairperson), Dr. Peters, Ms. Yanni and Mr. Baert. The composition of our Corporate Governance Committee is consistent with the best practice provisions of the DCGC, SEC and NASDAQ requirements. The main tasks performed by the Corporate Governance Committee includes monitoring compliance by Pharming with the DCGC and corporate governance-related laws and regulations, compliance by Pharming with the Code of Conduct, monitoring and evaluating the functioning of the Board of the Directors, its committees and individual members and the recruitment and selection for nomination of new Directors. The committee also prepares recommendations to the Board of Directors regarding the intended appointment of new members of the Executive Committee. The Corporate Governance Committee is governed by a charter that complies with the best practice provisions of the DCGC and applicable NASDAQ rules. The charter was evaluated and the updated charter was approved on March 20, 2024. The Corporate Governance Committee met four times in 2024 (2023: three times), The meeting on March 20, 2024, and October 23, 2024, were held in the USA. The other meetings were held virtually. The individual presence (P) or absence (A) of the members of the Corporate Governance Committee is reflected in the following schedule: Date January 26 March 20 June 26 October 23 % Present during 2024 Ms. van der Meijs P P P P 100% Ms. Yanni P P P P 100% Mr. Baert P P P P 100% Dr. Peters P P P P 100% Activities in 2024 On October 24, 2024, it was announced by way of a press release that Mr. Sijmen de Vries, whose term as the Executive Director and Chief Executive Officer of Pharming was scheduled to expire at the closing of the Annual General Meeting of June 11, 2025, would not be available for reappointment. The Corporate Governance Committee started the search for a new Executive Director and Chief Executive Officer and to this end engaged a leading global executive search company. The committee prepared the nomination to the Extraordinary General Meeting of Shareholders on March 4, 2025, for the appointment of the new Executive Director and Chief Executive Officer. The Committee was also involved in the determination of the package agreed with Mr. Sijmen de Vries, in view of his resignation as CEO with effect from the EGM on March 4, 2025. More details can be found in the Remuneration Report as included in this Annual Report. The committee also prepared the nomination to the Annual General Meeting of Shareholders on May 21, 2024, for the reappointment of Ms. Barbara Yanni and Dr. Mark Pykett. The committee furthermore discussed and prepared for the scheduled expiration of the mandates of Ms. Deborah Jorn, Ms. van der Meijs, Mr. Leonard Kruimer and Mr. Steven Baert at the Annual General Meeting of Shareholders on June 11, 2025. The Corporate Governance Committee was regularly updated on the search for a new CPO and made a positive recommendation to the Board of Directors on the appointment of Ms. Inés Bernal as CPO on August 22, 2024, via a resolution outside of a meeting. The Board of Directors also approved the appointment of Ms. Inés Bernal as CPO via a resolution outside of a meeting. The Corporate Governance Committee also initiated and coordinated the annual self-evaluation by the Board of Directors and the respective committees. The self-evaluation for the year 2024 was held in the fourth quarter of 2024 by way of a comprehensive review of the effectiveness of the Board and its committees, using an online survey. The main findings were presented to the Corporate Governance Committee on January 21, 2025, and the Board of Directors on March 12, 2025, and an action plan was developed. The committee will coordinate and monitor the follow-up on these actions. Throughout 2024 the Corporate Governance Committee also coordinated and monitored the follow up of the agreed actions of the 2023 Board Evaluation. During a combined meeting with the Remuneration Committee, held on January 26, 2024, the Corporate Governance Committee reviewed the functioning of the Executive Director in 2023. The main conclusions and recommendations were submitted to the Board of Directors for the assessment of the impact on the vesting of applicable incentive plans. Reference is also made to the report of the Remuneration Committee. Pharming Group N.V. Annual Report 2024 | 69 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Report of the Board of Directors During the meeting on January 26, 2024, and March 20, 2024, the Corporate Governance Committee reviewed and discussed the results of the employee engagement survey including the proposed follow up actions. During the meeting on March 20, 2024, the Corporate Governance Committee reviewed and discussed the draft Corporate Governance Chapter of the 2023 Annual Report, including the described deviations from the Dutch Corporate Governance Code. During this meeting, the Corporate Governance Committee also reviewed and updated the Board Rules, Charter of the Executive Committee and Charter of the Disclosure Committee. The Board of Directors approved the updated Board Rules and charters at the meeting of March 20, 2024. The Corporate Governance Committee also reviewed and updated the Alert Reporting and Investigation Procedure that was first published in 2022. In January 2023, the EU Dutch Law regarding the "Whistleblower Protection Act" was amended to implement the EU Whistleblower Directive. The policy has been updated and approved by the Board on March 20, 2024, to reflect and ensure compliance with the prevailing regulations. Additionally, in 2024 Pharming expanded EthicsPoint, a hotline and incident management software to EU/RoW. This hotline and software have been used in the U.S. and have proven successful in providing ease of access to employees to raise their concerns while creating a culture of trust and addressing their concerns in a more standardized manner (24/7h call center with language support, a web intake form, as well as a QR code to our mobile site). The Corporate Governance Committee also reviewed and updated the Insider Trading Code to ensure that it remains to be fully aligned with applicable regulations and what is considered good market practice. The revised policy was approved by the Board of Directors on July 31, 2024. During its meeting of June 26, 2024, the committee reviewed and updated the Board Profile. During its meeting of June 26, 2024, and October 23, 2024, the Corporate Governance Committee also discussed the revised Competence & Knowledge Matrix of the Board of Directors and evaluated the size of the Board of Directors. During this meeting, the committee also reviewed and discussed the Onboarding Program for new board members and a proposal to issue a number of powers of attorney under the approved Power of Attorney Policy. For each of these topics related recommendations were made to the Board of Directors. The Corporate Governance Committee also reviewed and updated the Code of Conduct. The revised Code of Conduct was approved by the Board of Directors on October 23, 2024. During each scheduled meeting the Corporate Governance Committee was updated by the Business Integrity department on the Company's performance under the Code of Conduct. In 2024, three alerts were received for EU/RoW and one alert was received in the U.S. Initiation assessment was conducted by the Business Integrity department and some alerts were further investigated via support from external partners. Pharming Group N.V. Annual Report 2024 | 70 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Report of the Board of Directors Transaction Committee During the financial year 2024, the Transaction Committee consisted of Ms. Yanni (Chairperson), Dr. Peters, Mr. Kruimer and Dr. Pykett. The main tasks of the Transaction Committee include the review and assessment of business cases, including the valuation and analysis of any potential business development transaction, assessing the fit of that potential transaction with the Company's strategy and the main risks and mitigating actions, based on a recommendation and with reference to relevant documents as submitted by the Executive Director and to make recommendations to the Board of Directors on a potential business development transaction. The Transaction Committee is also entrusted with the review of potential structures for transactions, assessing inter alia the main risks for the Company and the mitigating actions, as proposed by the Executive Director, The Transaction Committee reviews and (if appropriate) approves a draft non-binding Letter of Intent or Memorandum of Understanding, or any similar draft document of a non-binding nature, to start a due diligence process for exploring a potential transaction, including approval of the issuance of that document to the relevant target company; and reviews and assesses the outcome of the due diligence process for any transaction to identify the main risks for the Company. The Transaction Committee is governed by a charter that complies with the best practice provisions of the DCGC and applicable NASDAQ rules. The charter was last updated on March 20, 2024, following an evaluation by the Transaction Committee of the charter previously approved in December 2022. The Transaction Committee met six times in 2024 (2023: one time). All meetings were held virtually. Date March 6 May 8 June 26 July 25 August 15 November 27 % Present during 2024 Ms. Yanni P P P P P P 100% Dr. Peters P P P P P P 100% Mr. Kruimer P A P P P P 83% Dr. Pykett A P P P P P 83% Activities in 2024 The Transaction Committee reviewed certain business development opportunities presented by the Executive Committee. Among others, the Transaction Committee discussed the public cash offer to the shareholders of Abliva AB, as further explained in note 28. Events after the reporting period of this Annual Report. During its meeting of November 27, 2024, the Transaction Committee concluded that considering the importance of this opportunity, the proposed transaction would require a review by the full Board of Directors. For reasons of confidentiality, taking into consideration Pharming's status of listed company, no further details are provided on any of the other business opportunities that were considered. Pharming Group N.V. Annual Report 2024 | 71 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Report of the Board of Directors Authorization of the financial statements The financial statements of Pharming Group N.V. for 2024, as presented by the Board of Directors, have been audited by Deloitte Accountants B.V. Their report is included in this Annual Report in the section Independent auditor's Report. The financial statements were unanimously approved by the Board of Directors and the members of the Board of Directors have signed these Statements on behalf of the Company. In accordance with best practice 1.4.3 of the Dutch Corporate Governance Code and Article 5:25c of the Financial Markets Supervision Act, taking into due consideration the explanation provided in the preceding paragraph and in the various other sections of this Annual Report, the Board of Directors states that, to the best of their knowledge: • This report provides sufficient insight into the nature of the Company's risk management and control systems and confirms that the control systems functioned properly in the year under review; • The report also provides sufficient insights into any weaknesses or failings in the effectiveness of the internal risk management and control systems; • The control systems provide reasonable assurance that the financial reporting does not contain any material inaccuracies; • Based on the current state of the Company, it is considered appropriate that the financial reporting is prepared on a going concern basis; and • The report identifies those material risks and uncertainties that are relevant to the expectation of the Company's continuity for the period of at least twelve months after the preparation of the report. Accordingly, the Board of Directors declares that, to the best of its knowledge and in accordance with applicable reporting principles, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit of the Group, and this Annual Report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group. For a detailed description of the risk factors, we refer to the Risk management chapter in this report. In accordance with the foregoing, the Board of Directors recommends the Annual General Meeting of shareholders to adopt the 2024 Financial statements and to discharge, and therefore to release from liability, the members of the Board of Directors for the exercise of their duties during the financial year 2024. Leiden, April 2, 2025 Richard Peters Fabrice Chouraqui Deborah Jorn Barbara Yanni Mark Pykett Leonard Kruimer Jabine van der Meijs Steven Baert Collectively the Board of Directors of Pharming Group N.V. Pharming Group N.V. Annual Report 2024 | 72 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Remuneration Report 2024 Letter from the Remuneration Committee Chair Dear Shareholder, On behalf of the Remuneration Committee, I am pleased to present to you the Remuneration Report of Pharming for the financial year 2024. The remuneration policy for the Board of Directors was adopted by the Annual General Meeting of Shareholders held on May 21, 2024, with 94.2% support, and reflects our long-standing remuneration principles to support the execution of Pharming's long-term business strategy. Furthermore, the Remuneration Report for the financial year 2023 received 95.6% of the votes. In this Remuneration Report, the Remuneration Committee reports on how the remuneration policy has been put into practice for our Executive and Non-Executive Directors during 2024. The Remuneration Committee continues to monitor the need for appropriate changes to our remuneration policy and disclosures, to ensure continued consistency with prevailing best practices. In that regard, the Remuneration Committee engaged Georgeson, an international strategic consultant, for a review of both the 2023 Remuneration Report and the feedback from proxy advisors and investors, for the 2024 Remuneration Report. Looking back on 2024 Remuneration Committee activities and developments Throughout the year 2024, the Remuneration Committee consisted of Ms. Deborah Jorn, Mr. Mark Pykett, Ms. Jabine van der Meijs, and myself as Chair. The Remuneration Committee met five times in 2024 to discuss the proposals and prepare related recommendations to the Board of Directors regarding the compensation of the Executive Director/ CEO, in accordance with the remuneration policy and incentive programs as adopted and approved by our shareholders, and the compensation of the members of the Executive Committee. Details on the activities of the Remuneration Committee can be found in the Annual Report. Remuneration Executive Director in 2024 Base salary The Remuneration Committee reviewed and discussed the fixed base salary of the Executive Director and decided to recommend to the Board of Directors to set the fixed salary of the Executive Director at €642,720 (US$694,395) for 2024, which represents a 3% increase compared to the previous year (2023: €624,000 (US$673,000)). This salary increase took into consideration the outcome of the review of the annual performance of the Executive Director in 2023, the performance results of the Company, and the outcome of the compensation merit increases for our wider workforce. The average 2024 increase for Pharming employees employed in Europe was also 3%. Incentive plans performance 2024 performance and STI outcome (annual bonus in cash) Pharming delivered a strong final performance in 2024, with record RUCONEST® revenue and strong Joenja® growth, and also solid progress on several other targets that had been set for the year. The company ended 2024 on a strong note, growing total revenues by 21% to US$297.2 million and exceeding the revenue guidance range of US$280-$295 million. For the 2024 STI, the Remuneration Committee calculated a total payout percentage of 85.2% on all one-year financial and non-financial targets that had been set for the STI 2024. A detailed CEO balanced scorecard on the financial and non-financial targets, including the calculation of the respective payout results for each quantifiable target based on the applicable schedule, can be found in Part III of this Remuneration Report. The total weighted payout result of 85.2% on all KPIs was multiplied by the 70% 'on target'-score to calculate the total payout amount on the STI 2024. The Remuneration Committee concluded that this resulted in a cash payment to the Executive Director equal to 59.6% of the fixed annual salary for 2024, i.e., €383,318 (US$414,137) gross. Pharming Group N.V. Annual Report 2024 | 73 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 2022-2024 Executive LTI performance 2,363,455 conditional (restricted) shares were awarded to the CEO for the performance years 2022- up to and including 2024. Vesting of the shares granted under the Executive LTI program was subject to the performance of the CEO on the applicable long-term targets, which was a combination of Total Shareholder Return (40% weighting) and strategic corporate objectives (60% weighting), during the performance period. The share-price performance of Pharming shares over the performance period 2022-2024 (comparing the VWAP as per January 1, 2022, versus the VWAP as per January 1, 2025, in accordance with the provisions of the Remuneration Policy) was +12%, while the ASCX index decreased by 3% and the IBB ETF decreased by 10% over the full aforementioned period. Accordingly, the score on Total Shareholder Return was 38% according to the applicable table. The Remuneration Committee determined the total score for the performance of the Executive Director on the corporate strategic objectives at 44.4%. For further details on the achievements versus the related targets, please consult Part III in this report. The vesting level of 82.4% resulted in a total number of 1,947,487 unconditional shares (gross) that vested for the CEO. Executive changes On October 24, 2024, Mr. Sijmen de Vries announced that he would not be available for reappointment upon the scheduled expiration of his term. The Extraordinary General Meeting of Shareholders (the "EGM") that was held on March 4, 2025, appointed Mr. Fabrice Chouraqui (date of birth: August 1, 1970, French national, U.S. citizen), upon the binding nomination of the Board of Directors, as the new Executive Director/CEO for a term of four years, effective as of the closing of the EGM and expiring at the closing of the Annual General Meeting of Shareholders to be held in the year 2029. Mr. de Vries supports the nomination of Mr. Chouraqui and confirmed his resignation from the Board of Directors effective at the closing of the EGM. Mr. de Vries will ensure a smooth hand-over of his tasks and responsibilities as Executive Director and CEO to Mr. Chouraqui and remains a strategic advisor to the new CEO until December 31, 2025. In that capacity, Mr. de Vries will continue to receive his monthly base salary, including emoluments, up to and including December 31, 2025. More details on the settlement of Mr. de Vries' outstanding contractual rights can be found in Part IV of this Remuneration Report. These details were also included in the materials that were published for the EGM. The remuneration package granted to Mr. Chouraqui, as new Executive Director and CEO, and (to the extent applicable) as approved by our shareholders at the EGM, is also outlined in Part IV of this Remuneration Report. I look forward to presenting this Remuneration Report at the Annual General Meeting of Shareholders on June 11, 2025. On behalf of the Remuneration Committee and the Non-Executive Directors, I would like to thank you for your continued support of Pharming. Steven Baert Chair of the Remuneration Committee Shareholder voting at General Meeting of Shareholders The following table sets out the voting results in respect of resolutions relating to remuneration over the past years. Resolution % Votes in Favor Approval remuneration package new CEO, to the extent applicable (voted on March 4, 2025) Binding 98.11% 2024 Remuneration Policy (voted on May 21, 2024) Binding 94.20% Remuneration Chair of the Board of Directors (voted on September 25, 2023) Binding 99.10% Fees chair and members Transaction Committee (voted on May 17, 2023) Binding 98.62% 2023 Remuneration Report (voted on May 21, 2024) Advisory 95.60% 2022 Remuneration Report (voted on May 17, 2023) Advisory 95.05% 2021 Remuneration Report (voted on May 18, 2022) Advisory 76.72% 2020 Remuneration Report (voted on May 19, 2021) Advisory 98.16% 2020 Remuneration Policy (voted on December 11, 2020) Binding 99.28% Pharming Group N.V. Annual Report 2024 | 74 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Part I: Brief Summary of the Executive Director remuneration elements The Executive Board remuneration policy is simple and transparent in design, and consists of the following key elements: Remuneration element Purpose Design and link to strategy Value Base salary • Involves fixed cash compensation. • To provide a fair and competitive basis for the total pay level to attract high caliber leaders. • In-depth benchmark annually. • Facilitates recruitment and retention, and is the basis for competitive pay. • Rewards performance of day-to-day activities. • Base salaries at Pharming target the median of the labor market peer group with possible exceptions based on experience. • The actual salary is to be determined based on the country of residence. • Any remuneration increases are in line with the wider workforce and typically effective from the 1 st of January each year. Pension • Defined-Contribution Pension Plan for Executive Directors based in the Netherlands. • Alternative pension benefits for Executive Directors based in other countries, with a value aligned with similar benefits offered to Pharming's staff members in the jurisdiction where the relevant Executive Board Member is residing (e.g. 401k in the U.S.). • Provides for employee welfare and retirement needs. • Designed to be competitive in the relevant market. • The CEO and Executive Committee receive a pension plan that is the same as all eligible Pharming employees. No additional executive pension benefits are awarded. • NL: pension contributions for the CEO, in accordance with the plan that also applies to the other employees based in the Netherlands, equals 27.83% of base salary. - For Dutch employees, including the CEO, the pensionable income is capped at €137,800 for 2024; this is the fiscal maximum. - A Net Employee Pension Scheme is offered to all employees whose pensionable income exceeds the specified maximum. • Other countries: value aligned with similar benefits offered to Pharming's staff members in the jurisdiction where the relevant Executive Board Member is residing. Benefits • Provides a range of benefits, including, but not limited to a car lease scheme, aligned with plans and programs offered to staff members in place of residence. • Provides market competitive benefits to aid retention. • The CEO and Executive Committee receive the same benefits as eligible Pharming employees. No additional executive benefits are granted. • NL: holiday allowance: 8.33% of the base salary. • Other countries: value aligned with similar benefits offered to staff members in place of residence. Pharming Group N.V. Annual Report 2024 | 75 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Remuneration element Purpose Design and link to strategy Value Short-term variable remuneration • Based on achieving annual measured, financial and non- financials goals. • Aims, at target level, for the median of the labor market peer group. • Is paid 100% in cash. • Drives and rewards sound business decisions for the short-term prospects of Pharming. • Aligns Executive Directors and shareholder interests. • At least 50% of the bonus opportunity is linked to financial performance. • Strategic goals and sustainability goals are set. • The committee undertakes a thorough assessment to ensure that targets are rigorous and sufficiently stretched. • On-target performance: 70% for the CEO / 50% of annual base salary for other Executive Board Members.1 • Maximum opportunity for CEO capped at 140% of base salary.1 • Threshold: 80% for each quantifiable target separately. • From the STI for 2024 onwards, a maximum of 200% applies for payout on each individual target. • Below threshold: no STI pay-out on targets below threshold level. • STI payout is made in cash. • The Remuneration Committee may apply judgement with discretion to make appropriate adjustments to the annual bonus. Long-term variable remuneration (Executive LTI program) • Is based on achieving three-year TSR (40% weighting) and strategic targets (60% weighting). • Aims, at target level, for the median of the peer group. • Is awarded through the vesting of shares, net of taxes. • Vested shares are blocked for another two years, with a five-year holding restriction since the date of the conditional performance grant. • Drives and rewards sound business decisions for the long-term prospects of Pharming. • Aligns Executive Director's and shareholder interests. • Supports Executive Board retention. • On-target performance: 300% of annual base salary for the CEO.2 • Maximum opportunity for CEO capped at 450% of base salary.2 • Threshold (as from the LTI for 2023-2025 onwards): 80% for each quantifiable target separately. • From the LTI for 2024-2026 onwards, a maximum of 200% applies for each individual target. • Below threshold: no vesting on targets below threshold level. • LTI payout is made in shares. Mandatory share ownership and holding requirement • To further align the interests of executives to shareholders. • The minimum shareholding requirement is 400% of annual base compensation for the CEO. The CEO may decide to accrue the required minimum shareholding over time by the vesting of after- tax performance shares from the Executive LTI program, without the requirement for own purchases. Severance pay • Ensure upfront clarity on pay in case of early departure. • Payments related to the early termination of a contract reflect performance achieved over time and shall not reward failure. • Maximum severance pay is 100% of the fixed annual remuneration. Not awarded in case of early termination at the CEO's initiative (unless due to culpable conduct or neglect by the Company and/or due to the CEO's culpable conduct or gross negligence).3 1 The Extraordinary General Meeting of Shareholders convened for March 4, 2025, approved an increase of the on-target payout to 75% of the annual base salary and a maximum payout of 150% of the annual base salary for Mr. Fabrice Chouraqui, as nominated new CEO. 2 The Extraordinary General Meeting of Shareholders convened for March 4, 2025, approved an increase of the on-target value to 425% of the annual base salary and a maximum payout of 637,5% of the annual base salary for Mr. Fabrice Chouraqui, as nominated new CEO. 3 The Extraordinary General Meeting of Shareholders convened for March 4, 2025, approved the grant of a severance payment for Mr. Fabrice Chouraqui, as nominated new CEO: a. equal to 200% of his fixed annual base salary, in case of a termination of his mandate as CEO without cause (i.e., absent serious culpable conduct or gross negligence on the part of the CEO)within twelve (12) months following a change of control of Pharming, including an unconditional acquisition by a third-party of the majority of the ordinary shares in Pharming; and b. absent a change of control as described sub a., equal to 100% of his fixed annual base salary in case of any other termination of the mandate and contract by Pharming without cause(i.e., absent serious culpable conduct or gross negligence on the part of the CEO) or by the CEO for good reason (i.e., serious culpable conduct or neglect on the part of Pharming). Pharming Group N.V. Annual Report 2024 | 76 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Quantum peer group European Peers: ADC Therapeutics, Alliance Pharma, Autolus Therapeutics, Basilea Pharmaceutica, Bavarian Nordic, BioGala, Biotest, Camarus, Cosmo Pharmaceuticals, Galapagos, Innate Pharma, Merus, Oxford Biomedica, uniQure, Valneva, Zealand Pharma. U.S. Peers: Anika Therapeutics, BioCryst PharmaCeuticals, Coherus BioSciences, Collegium Pharmaceutical, Enanta Pharmaceuticals, Heron Therapeutics, Ironwood Pharmaceuticals, Karyopharm Therapeutics, Ligand Pharmaceuticals, MannKind, Mirium Pharmaceuticals, Rigel Pharmaceuticals, Supernus Pharmaceuticals, Travere Therapeutics, Vanda Pharmaceuticals. During the year under review, MorphoSys, Immunogen, and Intercept Pharmaceuticals were acquired by Novartis, AbbVie and Alfasigma, respectively. The Remuneration Committee has initiated a full review of the peer group that is scheduled to be completed in the course of 2025. As a result of this review, the aforementioned companies will be replaced by other companies that are deemed a "best fit" in terms of financial, market and business profile, sector, and business/product focus while taking into consideration Pharming's positioning among the peer group and in respective markets. The updated composition of the peer group will be published on the company website once approved by the Remuneration Committee. Pharming Group N.V. Annual Report 2024 | 77 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Part II: Executive Director pay: implementation of the remuneration policy in 2024 Executive Director remuneration at a glance: total remuneration package paid to the CEO The table below shows the annual remuneration and the implementation of the remuneration policy in 2024 for the Executive Director/CEO expressed in a single figure and compared to 2023. All amounts were paid in euros and have been rounded. The US$ figures have been included to ensure consistency with the 2024 Annual Report, applying an FX rate of 1.0804 (average 2024) for the amounts paid in 2024. The amounts paid in 2023 have been calculated using an FX rate of 1.0790 (average 2023). in EUR '000 (US$ '000) Year Base Salary STI LTI Value of units vesting Pension cost Other emoluments Total Sijmen de Vries, CEO 2024 €643 US$694 €383 US$414 €1,801 US$1,946 €107 US$116 €32 US$35 €2,966 US$3,205 2023 €624 US$673 €570 US$615 €823 US$888 €107 US$115 €32 US$35 €2,156 US$2,326 Proportion of fixed and variable remuneration, including fair value costs for Pharming The following table reflects the amounts of fixed and variable remuneration paid to the CEO/ Executive Director in 2024 and in the past years, together with the fair value share-based payment costs incurred by Pharming. The amount of share-based compensation as reflected in the table includes the (pro-rata) fair value of the granted but unvested restricted shares that were granted in 2022, 2023 and 2024 to the CEO pursuant to the new Executive LTI Program. in EUR '000 (US$ '000) Year Base Salary STI Share based compensation Pension cost Other emoluments Total Sijmen de Vries, CEO 2024 €643 US$694 €383 US$414 €914 US$987 €107 US$116 €32 US$35 €2,079 US$2,246 2023 €624 US$673 €570 US$615 €1,271 US$1,371 €107 US$115 €32 US$35 €2,604 US$2,809 2022 €603 US$636 €374 US$394 €1,158 US$1,221 € 106 US$112 € 32 US$34 €2,273 US$2,396 2021 €574 US$681 €301 US$357 €1,344 US$1,594 € 101 US$120 € 32 US$38 €2,352 US$2,790 2020 €538 US$614 €377 US$431 €1,522 US$1,739 € 94 US$107 € 32 US$37 €2,563 US$2,927 Pharming Group N.V. Annual Report 2024 | 78 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Fixed remuneration Base salary The following table reflects the gross annual base salary (fixed remuneration) of the Executive Director/CEO paid in the financial year 2024: Fixed Remuneration in '000 in 2024 Fixed Remuneration in '000 in 2023 Sijmen de Vries, Chief Executive Officer €643 ( US$694) €624 ( US$673) All amounts were paid to the Executive Director in euros. The amounts have been rounded. The US$ figures have been included to ensure consistency with the 2024 Annual Report, applying an FX rate of 1.0804 (average 2024) for the amounts paid in 2024. The amounts paid in 2023 have been calculated using an FX rate of 1.0790 (average 2023). Benefits The Executive Director/CEO is entitled to additional benefits, such as a car lease scheme, as further described in Part I of this Remuneration Report. These benefits are fully consistent with those offered to other eligible Pharming employees. In the Netherlands, salaries are paid in 12 monthly installments and one additional monthly installment, entitled 'holiday allowance' which is paid typically in May/June. The allowance is equal to 8.33% of the base salary and included in the gross annual salary of staff and those Executive Board Members residing in the Netherlands. Pension The Executive Director/CEO pension arrangements for Executive Board Members residing in the Netherlands are based on defined contribution. For Mr. Sijmen de Vries, Pharming provides an annual contribution of 27.83% of the base salary, minus the franchise to the schemes of the Executive Director/CEO, in accordance with the Remuneration Policy and the contributions to other employees. For Dutch employees, the pensionable income is capped at €137,800 for 2024; this is the fiscal maximum. A Net Employee Pension Scheme is offered to all employees whose pensionable income exceeds the specified maximum. Variable remuneration The Remuneration Committee reviewed the performance of Mr. Sijmen de Vries as the Executive Director/CEO. During 2024, remuneration was paid in accordance with the Remuneration Policy. We note that there were no deviations from the Remuneration Policy, nor from the governance process in the execution of the policy. As announced in the 2023 Remuneration Report, the results on each of the KPIs for the 2024 STI are to be calculated in accordance with the following table: Actual score compared to target Payout % <80% —% On target 100% Each 1% exceeding target +3% Each 1% below target (3%) Pharming Group N.V. Annual Report 2024 | 79 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Accordingly, the results on the targets for the 2024 STI are summarized in the below table: Theme Weighting KPI/target Actual Actual vs target (+/-%) Impact on payout (+/- 3%) Payout % (weighted) Financial 20% Total revenue growth: Revenue growth to US$293M (q) Growth to US$297.2M 101% +3% 20.6% 10% Operating profit: Operating loss not exceeding US$15M Loss US$8.6M 143% +129% 10.0% 10% Cash & Marketable securities balance, net of debt funding: Balance of US$50M (q) US$86.9M 174% +222% 20.0% 10% Compliance with Sarbanes-Oxley Act: Compliance assessment by the Board of Directors Achieved: implementation and testing of all required internal controls, as audited by Deloitte 0% 0% 0% 15% Enhance workforce composition: – Leadership diversity by year-end 2024 - senior management/senior positions and ExCo: 50% female (q) – Staff turnover rate: less than 52 FTE (q) – Employee engagement score (to be assessed by the Board of Directors) 43% 43.4 FTE Not achieved 86% 117% 0% -42% 51% 0% 0% 7.6% 0% Execution 15% Leniolisib: – US: grow number of patients on therapy, securing reimbursement (q) – EMA MAA approval – Clinical development: progress pediatric & Japan studies – Life cycle: progress development of new leniolisib indication beyond APDS Growth slower than planned Not achieved in 2024 Studies progressing as planned PIDs study started 0% 0% 100% 100% 0% 0% 0% 0% 0% 0% 4.0% 3.0% 10% Business Development: One clinical-stage asset or other BD opportunity added to pipeline Public offer made to acquire Abliva 100% 0% 10.0% ESG (Impact/ Purpose) 10% Progress ESG program Consistent with the requirements imposed by the ESRS standards, the metrics for "Business Ethics", "Animal Welfare" and "Climate Change" and the climate change targets/KPIs were approved by the Board The Pharming ESG website page was launched 100% 0% 10.0% Total 85.2% (q) = quantitative KPI Pharming Group N.V. Annual Report 2024 | 80 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 The Remuneration Committee decreased the payout results on certain KPIs - including those set for operating profit - to ensure that these results adequately represent the related achievements by the CEO. The Remuneration Committee concluded that the total weighted payout result of 85.2% on all KPIs results in a cash payment to the Executive Board Member/CEO equal to 59.6% of the fixed annual salary for 2024, i.e., €383,318 gross. Payout of STI variable remuneration takes place only after verification by the external auditor of the Company's financial statements, including the financial KPIs on which the financial STI targets are based. A. Long-term variable remuneration (LTI): shares Shares awarded to the CEO for the performance years 2022-2024 under the new Executive LTI program, vested in the first quarter of 2025, applying the targets set at the start of the three-year performance period in 2022. The following table summarizes the tranches of shares for performance periods of three years each that have been awarded to the CEO but have not yet vested: Name Number of restricted LTI shares granted in 2023 (vesting Q1 2026) Number of restricted LTI shares granted in 2024 (vesting Q1 2027) Sijmen de Vries 1,681,570 1,824,602 The CEO is on track to meet the targets set for the respective performance periods. A retrospective disclosure will be included in the Remuneration Report following the end of the relevant performance periods. Vesting Executive LTI 2022-2024 The vesting results for the Executive Plan for the performance years 2022-2024 are explained below. In accordance with the applicable terms and conditions, the vesting of the shares is determined based on the performance of the CEO on the applicable long-term targets, which were a combination of Total Shareholder Return (40% weighting) and the performance on the strategic corporate objectives (60% weighting) during the respective calendar years 2022-2024. Total Shareholder Return metrics and targets (40% of LTI award) Set out below is a summary of Pharming's TSR performance relative to its peers as part of the TSR element of the Executive LTI program, based on the table included in the remuneration policy. Metric Targets Actual TSR relative to ASCX and IBB ETF index Below index Equal to index 10% above index 20% above index 40% above index 60% above index 80% above index 100% above index Position Relative to ASCX index +15% Position relative to IBB ETF index +22% Vesting 0 80% 90% 100% 110% 120% 130% 150% Pay-out 90% Vesting 100% The share-price performance of Pharming shares over the performance period 2022-2024 (comparing the VWAP as per January 1, 2022, versus the VWAP as per January 1, 2025, in accordance with the Remuneration Policy, was +12%, while the ASCX index decreased by 3% and the IBB ETF decreased by 10% over the full aforementioned period. This result places Pharming +15% against the ASCX and +22% against the Nasdaq Biotechnology Index peer group. Accordingly, with reference to the above table and applying the 40% weighting, the score on Total Shareholder Return is 38% (score to be measured for each of the indices separately: 90% score ASCX and 100% score IBB; average of 95%). Pharming Group N.V. Annual Report 2024 | 81 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Strategic objectives outcomes (60% of award) A summary of the CEO's performance on the strategic objectives for the years 2022-2024 is set out below: Target KPI Outcome Score 1. leniolisib progression of markets/APDS indication roll-out. U.S. approval 2023 EU approval 2023 Japan approval 2024 Pediatric approval 2024 U.S. reimbursement 2023 EU reimbursement 2023-2024 Japan reimbursement 2024 Achieved (deemed material by RemCo given strategic importance): U.S. approval 2023 U.S. reimbursement 2023 U.K. approval 2024 70% 2. Portfolio development from internal research technologies. Milestone planning 2023-2024 as adopted by the Board of Directors. Following internal review of company strategy, decisions taken on portfolio development from internal research technologies leading to discontinuation of programs for Pre- eclampsia, Pompe, AKI and expansion of transgenic (cattle) platform. This freed up resources for focus on APDS/leniolisib, initiation of development of secondary indications genetically defined PIDs and CVID. 100% 3. Milestones additional in-licensed development programs (e.g. OTL-105) by YE 2024 according to planning adopted by the ExCo and Board of Directors. Execution according to approved plan. Following non-achievement of defined (pre-clinical) results, the OTL-105 program was discontinued in accordance with development plan. This freed up resources for focus on APDS/leniolisib, initiation of development of secondary indications genetically defined PIDs and CVID. 50% 4. Quantity and quality of licensing and/or M&A targets to fill the 2025-2028 launch pipeline. Delivery of launch pipeline 2025-2028. The Board assessed the Business Development opportunities presented to them. Good process set up. 50% 5. ESG goals: implementation milestones according to action plan adopted in 2022; first ESG reporting included in Annual Report 2023. ESG reporting included in Annual Report from 2023. Achieved. ESG chapter was included in Annual Reports for 2022 and 2023 (consistent with CSRD timelines in effect in 2022). Pharming was on track over period 2022-2024. 100% Pharming Group N.V. Annual Report 2024 | 82 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 The vesting results on the targets for the Executive LTI 2022-2024 are summarized in the table below: Overall vesting of the Executive LTI program 2022-2024 Metric Weighting Vesting level TSR 40% 38.0% Strategic Objectives 60% 44.4% Total vesting percentage: 82.4% The vesting level of 82.4% resulted in a total number of 1,947,487 shares (gross) that vested for the CEO for the performance years 2022-2024. These shares are subject to a five-year retention period as of the grant in 2022. Payout of variable remuneration takes place only after verification by the external auditor of the financial statements, including the financial KPIs on which the financial targets were based. Pay ratio The Remuneration Committee considered the pay ratios within the Company and compared the payout of remuneration in 2024 to the Executive Director in an internal reference group, in accordance with the requirements set by the Dutch Corporate Governance Code. Pharming applies a methodology to calculate the internal pay ratio that is IFRS-driven. For 2024, the pay ratio between the compensation of the CEO and the mean compensation of employees (excluding the CEO) was 8.9:1 (2023: 12.0:1; 2022: 12.0:1; 2021: 13.7:1; 2020: 13.8:1). Compensation in each case comprises all salary, bonus, share-based compensation in cash or in kind and pension contributions. The lower pay ratio in 2024 resulted from the lower costs of share-based compensation. The aforementioned pay ratio is deemed consistent with levels which are appropriate for Pharming, given its size and complexity. Details of the staff costs can be found in note 7. Expenses by nature of the consolidated financial statements. The following table sets out the remuneration and company performance over the period 2020-2024 for the CEO (in EUR) and also visualizes the average employee salaries over the same period in Euro and USD: Annual % change 2024 vs 2023 2023 vs 2022 2022 vs 2021 2021 vs 2020 2020 vs 2019 Director's remuneration Sijmen de Vries, CEO and Executive Director (Euro comparison) (20%) 15% (3%) (8%) 82% Sijmen de Vries, CEO and Executive Director (USD comparison) (20%) 17% (14%) (5%) 85% Company performance - increase/(decrease) (USD comparison) Revenues 21% 19% 3% (6%) 10% Gross Profit 19% 17% 6% (6%) 12% Operating Result (60%) (130%) 34% (82%) 10% Net Result 12% (177%) (15%) (58%) (10%) Employees (full-time equivalent) 6% 15% 16% 24% 21% Average remuneration of employees on a full-time basis Employees of the Group 6% 18% (3%) (5%) 4% The annual % changes in the above USD information, reflect, amongst others, the change in FX rates. In addition, the change of the CEO's remuneration also reflects the changes in the costs of share- based compensation. Pharming Group N.V. Annual Report 2024 | 83 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Statement of compliance Derogation There were no deviations from the executive and non-executive directors' remuneration policy in 2024 that are not disclosed in this Remuneration Report. Termination payments The contractual severance arrangements as agreed with Mr. Sijmen de Vries as the Executive Director (maximum severance pay is 100% of the fixed annual remuneration) are compliant with the Dutch Corporate Governance Code. No termination payments were made to executive and non-executive directors on termination of employment or office in 2024. Malus and clawbacks In line with Dutch Law, the Dutch Corporate Governance Code and SEC requirements, malus and clawback provisions apply to the STIs and LTIs awarded to executive directors whereby variable remuneration may be reduced or (partly) recovered if certain circumstances apply. In 2024, no malus or clawback was applied to any remuneration of the executive directors. Loans and advances No loans or advances were granted to the CEO in the course of 2024. Share ownership The Remuneration Policy requires the Executive Director to acquire and hold shares in the Company with a value of at least 400% of his/her annual base salary. The minimum shareholding can be built up over five years. This minimum shareholding requirement aims to align the interests of the executive directors with those of the Company to drive long-term performance and value creation. The guidelines require that all after-tax shares be retained until the required level is met. In addition, the Executive Director shall comply with holding requirements under the Dutch Corporate Governance Code. This means that the Executive Director shall hold all after-tax shares received under the long-term incentive plan for a period of at least five years from the date of grant. As of December 31, 2024, the Executive Director held 8,594,721 unrestricted ordinary shares, representing a value of €7,950,117 (US$8,589,306). This is based on the Pharming closing share price on December 31, 2024: €0.925 (US$0.999). Therefore, as reflected in the table below, the Executive Director's share ownership well exceeds the minimum level. Pharming shares held by Executive Director/CEO in shares 2024 base salary in '000 Share Ownership (#) and value in '000 as of Dec. 31, 2024 Value as % of annual base salary 2024 2023 base salary in '000 Share Ownership (#) and value in '000 as of Dec. 31, 2023 Value as % of annual base salary 2023 Sijmen de Vries, Chief Executive Officer €643 8,594,721 1,237% €624 8,141,383 1,345% US$694 €7,950 US$8,589 US$673 €8,394 US$9,057 Once the requirements under the Pharming share ownership guidelines and under the Dutch Corporate Governance Code are met, shares may be sold by the Executive Director, subject to the Pharming Insider Code. Outstanding rights under Share Option and LTIP plans The Executive Director has no rights outstanding under any of the LTIP plans as granted until 2019. The Executive Director exercised his share options on May 20, 2024, in anticipation of the scheduled expiration date (May 22, 2024) of the remaining options that were granted to the Executive Director, with the approval of our shareholders, in 2019. No share option rights are outstanding. Pharming Group N.V. Annual Report 2024 | 84 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Part III: Executive Director pay: looking ahead to 2025 As explained in the Letter from the Remuneration Committee Chair, on October 24, 2024, Mr. Sijmen de Vries announced that he would not be available for reappointment upon the scheduled expiration of his term. On January 21, 2025, the Board of Directors announced the nomination of Mr. Fabrice Chouraqui (date of birth: August 1, 1970, French national, U.S. citizen) as his successor for a term of four years, effective as of the closing of the Extraordinary General Meeting of Shareholders (the "EGM") that was convened for his appointment on March 4, 2025, and expiring at the closing of the Annual General Meeting of Shareholders to be held in the year 2029. Sijmen de Vries resigned from the Board of Directors effective at the closing of the EGM. He will ensure a smooth hand-over of his tasks and responsibilities as Executive Director and CEO to Fabrice Chouraqui and remains a strategic advisor to the new CEO until December 31, 2025. In that capacity, Mr. de Vries will continue to receive his monthly base salary including emoluments, up to and including December 31, 2025. In recognition of Sijmen de Vries' dedicated commitment to Pharming over the past 16 years and his willingness to remain available as a strategic advisor to the new CEO to ensure a smooth transition in the best interest of Pharming, the Board of Directors granted Sijmen the status of Good Leaver as defined in his employment contract. Accordingly, the Board of Directors decided that: • Sijmen de Vries will receive the gross amount in settlement of the Short-Term Incentive Plan for the year 2025 pro-rata for the period January 1, 2025, up to and including the date of the EGM in the first quarter of the year 2026. This payout date is in accordance with the regular schedule (no accelerated payout) and subject to the score on the performance targets; and • the restricted shares granted to Sijmen de Vries pursuant to the Long-Term Incentive Plan for the performance periods 2023-2025 and 2024-2026, will vest in the first quarter of the year 2026 and the first quarter of the year 2027, respectively. These vesting dates are in accordance with the regular vesting schedule (no accelerated vesting). Vesting will be subject to the score on the performance targets and the vesting percentage will be calculated pro-rata up to and including June 11, 2025, (i.e., the originally scheduled date of the expiration of the mandate of Sijmen). Sijmen de Vries waived his right to the grant of new restricted shares pursuant to the Long-Term Incentive Plan for the performance period 2025-2027 and shall not receive a severance payment. The described settlement of Sijmen de Vries' outstanding contractual rights ensures that the tax liabilities for Pharming have been kept to a minimum. Incoming Executive Director/CEO As a U.S. resident, Fabrice Chouraqui has entered into an employment agreement with Pharming Healthcare Inc., the 100%-owned U.S. subsidiary of Pharming for an indefinite term. An intercompany agreement will be signed between the Company and Pharming Healthcare Inc. The employment agreement provides, amongst others, that the Remuneration Policy for the Board of Directors as approved by our shareholders on May 21, 2024, (hereafter the "Remuneration Policy") shall apply to the remuneration package of Mr. Chouraqui, subject to certain adjustments as specified below. The Remuneration Policy provides, amongst others, that the actual remuneration is to be determined based on the country of residence of the CEO, i.e., the U.S. standards apply for Fabrice Chouraqui, as a U.S. resident. Accordingly, the Board of Directors granted Fabrice Chouraqui the following remuneration package in accordance with the Remuneration Policy, in his capacity as Executive Director/CEO: 1. Annual base salary: USD 750,000 gross (reference year: 2025); 2. Annual Short-Term Incentive Plan in cash (STI): target score to be set at 75% of the fixed annual base salary; maximum payout is set at 150% of the fixed annual base salary; 3. Long-Term Incentive Plan in restricted performance shares (LTI): the on-target value level shall be equal to 425% of the annual base salary, while the maximum performance vesting level is set at 637.5% (i.e., 150% of the on-target value level); 4. Other benefits/provisions: in accordance with the Remuneration Policy, the remuneration package also includes all employee benefit plans and programs offered by Pharming Healthcare Inc. from time to time to its U.S. senior employees, including pension plans (401(k)), medical/dental/vision/ life insurance and a company car. Our shareholders approved the on-target values and maximum scores for the STI and LTI as set out above during the Extraordinary General Meeting of Shareholders held on March 4, 2025. During that same meeting, our shareholders also approved the severance payment arrangements agreed with Fabrice Chouraqui, including the severance payment equal to 200% of the fixed annual base salary, in case of a termination of the mandate of Fabrice Chouraqui as CEO without cause, i.e., absent serious culpable conduct or gross negligence on the part of the CEO) within twelve (12) months following a change of control of Pharming, including an unconditional acquisition by a third-party of the majority of the ordinary shares in Pharming. Pharming Group N.V. Annual Report 2024 | 85 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 The Remuneration Committee is of the opinion that the remuneration package for Mr. Chouraqui, as the new CEO, is appropriate in view of Mr. Chouraqui's strong track record as a global pharmaceutical and biotechnical leader, and the wealth of global expertise and deep international experience, across the entire biopharmaceutical value chain, that he will bring to Pharming. The proposed package also recognizes that Mr. Chouraqui, unlike Mr. Sijmen de Vries as outgoing CEO, is residing in the United States of America, by ensuring full consistence with U.S. benchmark data. The Board of Directors considered the benchmark report of AON Radford, as further described below, to ensure alignment with the U.S. market. As set out in the Remuneration Policy, Pharming has set the objective to align itself with European best practices in the field of remuneration, but will also need to ensure that it meets the urgent need to remain competitive in the important U.S. labor market, as the Company has established a significant and still growing presence in the US. As set out above, the Remuneration Policy also provides that the actual salary is to be determined based on the country of residence of the CEO, i.e., the United States of America for Mr. Chouraqui, as a U.S. resident. The foregoing balance is reflected in the peer group that has been composed by Pharming, consisting of European and U.S. companies active in Life Sciences as listed in Part II of this Remuneration Report. The following benchmark results were collected and presented by AON Radford in December 2024 for the remuneration package awarded to Mr. Chouraqui: • Annual Base Salary: The annual fixed base salary payable by Pharming to the CEO will be positioned between the 25th and 50th percentile for U.S. peers. The annual fixed base salary is positioned between the 50th and 75th percentile for European peers. • Equity/LTI and total remuneration: The combination of annual base salary and the annual STI bonus trails the 50th percentile for U.S. peers and is equal to the 75th percentile for European peers. The LTI grant is slightly above the 25thh percentile of the U.S. peers and just below the 75th percentile of the European peers. Mr. Chouraqui also received a one-off compensation in the first quarter of 2025 for the cash bonus and equity awards that forfeited due to his resignation from his previous role at Cellarity, Inc., to become the new CEO of Pharming, i.e., (like-for-like) cash compensation equal to the forfeited value of Mr. Chouraqui's entitlement to a short-term incentive plan in cash and compensation in the form of shares for the loss of value of equity awards. Based on the statement received from Cellarity, Inc., as verified by Pharming, the total forfeited value was US$990,000, of which US$110,000 represents the forfeited cash bonus and US$880,000 the forfeited equity awards, i.e., share option rights with a 4-year anticipated vesting period. This total forfeited value is substantially lower than the maximum value of US$3,200,000 as was mentioned in the Explanatory Notes for the EGM. The Board of Directors decided to grant Mr. Chouraqui the following like-for-like compensation, in full and final settlement of his right to compensation: (i) US$110,000 to be paid in cash for the 2024 annual incentive forfeiture; and (ii) US$880,000 to be granted in Restricted Share Units, which are subject to vesting in four (4) equal annual tranches of 25% each. The Remuneration Committee discussed the proposed short-term and long-term goals and objectives in connection with the applicable incentive plans for Mr. Chouraqui, as the new Executive Director. Related recommendations were submitted to the Board of Directors. 2025 STI goals An outline of the 2025 STI scorecard for the Executive Director, including the applicable weightings is provided below. As stated in our recently approved remuneration policy, from the financial year 2024 onwards, the financial targets have a weighting of 50% each time. All 2025 targets/KPIs will be disclosed retrospectively in the 2025 Annual Report. The Remuneration Committee has undertaken a thorough assessment to ensure that targets are sufficiently stretched in the context of potential remuneration delivered. Pharming Group N.V. Annual Report 2024 | 86 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 The following targets have been set to determine the payout of the cash bonus for the financial year 2025 under the short-term incentive plan. The vesting results for each of the individual (quantitative) KPIs for the 2025 STI as identified above are calculated in accordance with the following table: Theme Definition Link to strategy Total Weighting Weighting individual measures How to measure performance Financial Implementation financial strategy to ensure sustainable long-term value creation. Deliver sustainable, profitable growth, long-term value creation. 50% 20% Net revenue growth - quantitative target (USD) based on 2025 Financial Statements 20% Operating profit - quantitative target (USD) based on 2025 Financial Statements 10% Cash - quantitative target (USD) based on 2025 Financial Statements Portfolio & pipeline expansion Ensuring flawless execution of pipeline development strategy and sustainable long-term value creation. leniolisib: expand addressable patient population. Build a pipeline that delivers approved products. 30% leniolisib: • Number of patients on paid therapy • On track for EMA MAA approval 2026 • Clinical development: progress pediatric & Japan studies / filings • Life cycle: progress development of new leniolisib indications beyond APDS Abliva integration People & Organization Develop a high-performing organization. Attract and retain strong talents and drive engagement to enable delivery of strategy. 20% 10% 10% T Improve organizational health, including: • Turnover rate of voluntary leavers employees full year (company-wide) • Employee engagement score 2025 TOTAL 100% Pharming Group N.V. Annual Report 2024 | 87 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Actual score compared to target Payout result <80% 0% On target 100% Each 1% exceeding target +3% Each 1% below target (3)% A maximum payout result of 200% applies for each individual target. Pursuant to the remuneration policy, and as approved by our shareholders for Mr. Chouraqui, as our new Executive Director at the EGM, a 75% payout level applies for the total 'on target'-score, with a maximum payout of 150% for the CEO. For Mr. de Vries, a 70% on-target score and a maximum payout of 140% continues to be applied (the payout to be calculated pro-rata for the period starting January 1, 2025, and up to the EGM held on March 4, 2025). Executive LTI plan: goals for performance years 2025-2027 As set out in the Remuneration Policy, the financial and highly commercially sensitive targets for our Executive LTI Plan will be disclosed retrospectively after vesting of the relevant shares. To enhance transparency, a qualitative summary of these targets, in addition to the full upfront disclosure of all other targets set for the performance years 2025-2027, is provided below. The on-target value of the conditional shares to be awarded to Mr. Chouraqui, as our new CEO, under the Executive LTI plan annually, as approved by our shareholders for the new Executive Director at the EGM, is set at 425% of the fixed base salary, and the maximum performance value of shares is set at 637.5% of the fixed base salary (each time through a combination of the score on the TSR (40% weighting) and the corporate objectives (60% weighting). For Mr. de Vries, a 300% on-target value and a maximum vesting of 450% continue to be applied (the actual number of shares that will vest and be transferred to be calculated pro-rata up to the AGM to be held on June 11, 2025). Total Shareholder Return (40%) We will make no further adjustments to the TSR metric. Metric Targets TSR relative to ASCX and IBB ETF index Below index Equal to index 10% above index 20% above index 40% above index 60% above index 80% above index 100% above index Vesting 0 80% 90% 100% 110% 120% 130% 150% Strategic Objectives (60%) We outline the targets for the strategic objectives element of the Executive LTI plan 2025-2027 below. All goals and objectives specify the on-target and above target scores. The financial and highly commercially sensitive targets will be disclosed retrospectively in the 2027 Remuneration Report after vesting of the relevant shares. Pharming Group N.V. Annual Report 2024 | 88 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Strategic objectives as part of the Executive LTI plan 2025-2027 (40% TSR; 60% strategic objectives) Strategic Action Weighting How performance measure is assessed KPI Maintain RUCONEST® growth and value for HAE patients, despite new market entrance 15% Quantitative target for 3-year period on revenue growth RUCONEST® To be disclosed retrospectively Progress leniolisib life cycles 15% Targets for 3-year period related to life cycle management for leniolisib (new indications) EMA approval Other KPIs: to be disclosed retrospectively due to highly commercially sensitive nature Expand pipeline 15% Targets for continued pipeline expansion At least one new clinical program and/or Business Development opportunity KPI Abliva (development KL1333): to be disclosed retrospectively Drive operational efficiency 15% Targets for OPEX, Abliva and key operational efficiency initiatives KPI on OPEX and costs Abliva to be disclosed retrospectively due to highly commercially sensitive nature Implementation key automation programs according to schedule (E2E, Source to Pay) TOTAL 60% Note: These performance metrics are reflective of Pharming's updated long-term strategy. Reference is made to the section Our Strategy in the Annual Report. The vesting results for each of the individual (quantitative) KPIs for the 2025-2027 Executive LTI plan, as identified above, are calculated in accordance with the following table: Actual score compared to target Vesting result <80% 0% On target 100% Each 1% exceeding target +3% Each 1% below target (3)% A maximum vesting result of 200% applies for each individual target. Pharming Group N.V. Annual Report 2024 | 89 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Part IV: Non-Executive Directors: implementation of the remuneration policy in 2024 2024 Remuneration board of Non-Executive Directors In accordance with the remuneration policy, the following annual compensation structure applied in 2024 to the Non-Executive Directors. Non-Executive Board Member: • Chair: €90,000 per annum in cash and €40,000 per annum in ordinary shares in Pharming - effective since September 25, 2023, in accordance with the approval by the General Meeting of Shareholders held on that day; • Other Members: €45,000 per annum in cash and €30,000 per annum in ordinary shares in Pharming. All shares shall be valued at the 20 Day VWAP preceding the Annual General Meeting of Shareholders, without further restrictions for grant. Committee fees: • Audit Committee: Chair €15,000 and Member €7,500 per annum in cash; • Remuneration Committee: Chair €12,500 and Member €6,250 per annum in cash; • Corporate Governance Committee: Chair €12,500 and Member €6,250 per annum in cash; and • Transaction Committee: Chair €12,500 and Member €6,250 per annum in cash. The following table summarizes the respective fees. Roles and responsibilities 2024 Annual fee in cash 2024 Annual fee in shares 2023 Annual fee in cash 2023 Annual fee in shares Board Basic Non-Executive Director Fee €45,000 (US$48,618) €30,000 (US$32,412) €45,000 (US$48,555) €30,000 (US$32,370) Chair €90,000 (US$97,236) €40,000 (US$43,216) €90,000 (US$97,110) €40,000 (US$43,160) Committees Member of Audit Committee €7,500 (US$8,103) n/a €3,000 (US$3,237) n/a Member of Remuneration Committee €6,250 (US$6,753) n/a €3,000 (US$3,237) n/a Member of Corporate Governance Committee €6,250 (US$6,753) n/a €3,000 (US$3,237) n/a Member of Transaction Committee €6,250 (US$6,753) n/a €3,000 (US$3,237) n/a Chair of Audit Committee €15,000 (US$16,206) n/a €9,000 (US$9,711) n/a Chair of Remuneration Committee €12,500 (US$13,505) n/a €6,000 (US$6,474) n/a Chair of Corporate Governance Committee €12,500 (US$13,505) n/a €6,000 (US$6,474) n/a Chair of Transaction Committee €12,500 (US$13,505) n/a €6,000 (US$6,474) n/a All amounts were paid in euros and have been rounded. All shares are valued at the 20 Day VWAP preceding the Annual General Meeting of Shareholders in the relevant year. The US$ figures have been included to ensure consistency with the 2024 Annual Report, applying an FX rate of 1.0804 (average 2024) for the amounts paid in 2024. The amounts paid in 2023 have been calculated using an FX rate of 1.0790 (average 2023). Pharming Group N.V. Annual Report 2024 | 90 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 The total annual remuneration paid is based on the position of an individual in the Board of Directors and the committees. All reasonable travel and other expenses incurred by Non-Executive Directors in the course of performing their duties are considered to be business expenses and are therefore reimbursed. An additional compensation of €1,000 per day applies in case of extraordinary activities, as determined by the Chair of the Board of Directors. No loans or other financial commitments (advances, guarantees, shares or options) were made to Non-Executive Directors on behalf of the Company in 2024. Additionally, Non-Executive Directors are not entitled to participate in any benefits offered to Executives and staff. Compensation overview per Non-Executive Director in 2024 Name of Director, position Fixed fee in cash (‘000) Fixed fee in shares (‘000) Committee fee (‘000) Total (‘000) Dr. Richard Peters, Chair €90 (US$97) €40 (US$43) €13 (US$14) €143 (US$154) Deborah Jorn, Non-Executive Director €45 (US$49) €30 (US$32) €14 (US$15) €89 (US$96) Leonard Kruimer, Non-Executive Director €45 (US$49) €30 (US$32) €21 (US$23) €96 (US$104) Dr. Mark Pykett, Non-Executive Director €45 (US$49) €30 (US$32) €13 (US$14) €88 (US$95) Steven Baert, Non-Executive Director €45 (US$49) €30 (US$32) €19 (US$20) €94 (US$101) Jabine van der Meijs, Non-Executive Director €45 (US$49) €30 (US$32) €26 (US$28) €101 (US$109) Barbara Yanni, Non-Executive Director €45 (US$49) €30 (US$32) €26 (US$28) €101 (US$109) All amounts were paid in euros and have been rounded. There are no out of ordinary expenses to be reported. The US$ figures have been included to ensure consistency with the 2024 Annual Report, applying an FX rate of 1.0804 (average 2024) for the amounts paid in 2024. The amounts paid in 2023 have been calculated using an FX rate of 1.0790 (average 2023). Shares owned by Non-Executive Directors as of December 31, 2024 Name of Director Shares held December 31, 2024 Shares held December 31, 2023 Dr. Richard Peters, Chair 62,875 17,613 Ms. Deborah Jorn, Non-Executive Director 161,660 127,714 Mr. Leonard Kruimer, Non-Executive Director 121,231 112,123 Dr. Mark Pykett, Non-Executive Director 146,069 112,123 Mr. Steven Baert, Non-Executive Director 121,231 87,285 Ms. Jabine van der Meijs, Non-Executive Director 121,231 87,285 Ms. Barbara Yanni, Non-Executive Director 146,069 87,285 Pharming Group N.V. Annual Report 2024 | 91 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Remuneration Report 2024 Compensation per Non-Executive Director and former Supervisory Directors 2020-2023 The following table reflects the amounts of compensation paid to the Non-Executive Directors in the past five years. The amounts of compensation paid to the members of former Board of Supervisory Directors, who retired in 2020 and 2021, have been added for a comprehensive overview of the compensation at non-executive level in the past five years. It is emphasized that the former Board of Supervisory Directors was replaced by the Board of Directors as per December 11, 2020, which resulted in a significant change in tasks and responsibilities of the non-executive directors compared to the former supervisory directors. This change was reflected in the remuneration policy for the Board of Directors, as adopted by our shareholders on December 11, 2020. in EUR / US$ '000 Year Fixed remuneration Share-based payments Total Dr. Richard Peters 2023 €24 $26 €19 $20 €43 $46 2022 — — — — — — 2021 — — — — — — 2020 — — — — — — Ms. Deborah Jorn 2023 €51 $55 €30 $32 €81 87 2022 €52 $55 €30 $32 €82 $87 2021 €54 $64 €35 $42 €89 $106 2020 €54 $62 €35 $40 €89 $102 Ms. Barbara Yanni 2023 €57 $62 €30 $32 €87 94 2022 €50 $53 €30 $32 €80 $85 2021 €50 $60 €30 $36 €80 $96 2020 €31 $35 €21 $24 €52 $59 Dr. Mark Pykett 2023 €51 $55 €30 $32 €81 87 2022 €47 $50 €30 $32 €77 $82 2021 €47 $57 €30 $36 €77 $93 2020 €31 $35 €21 $24 €52 $59 Ms. Jabine van der Meijs 2023 €57 $62 €30 $32 €87 $94 2022 €54 $57 €30 $32 €84 $89 2021 €40 $47 €20 $24 €60 $71 2020 — — — — — — in EUR / US$ '000 Year Fixed remuneration Share-based payments Total Mr. Leonard Kruimer 2023 €57 $58 €30 $32 €87 $90 2022 €54 $57 €30 $32 €84 $89 2021 €40 $47 €20 $24 €60 $71 2020 — — — — — — Mr. Steven Baert 2023 €54 $58 €30 $32 €84 $90 2022 €52 $55 €30 $32 €82 $87 2021 €38 $45 €20 $24 €58 $69 2020 — — — — — — The following table includes the amounts of fixed and variable remuneration paid to the members of the former Board of Supervisory Directors who retired from the Board in 2020 and 2021, respectively, and former members of the Board of Directors. This table has been included for a comprehensive overview of the remuneration package at statutory board level in the past five years. in EUR / US$ '000 Year Fixed remuneration Share-based payments Total Mr. Paul Sekhri 2023 €51 $55 €30 $32 €81 $87 2022 €68 $72 €40 $42 €108 $114 2021 €65 $77 €46 $55 €111 $132 2020 €65 $74 €52 $59 €117 $133 Mr. Barrie Ward (retired in 2021) 2023 — — — — — — 2022 — — — — — — 2021 €19 $23 €17 $20 €36 $43 2020 €54 $62 €40 $46 €94 $108 Mr. Juergen Ernst (retired in 2020) 2023 — — — — — — 2022 — — — — — — 2021 — — €5 $6 €5 $6 2020 €50 $57 €37 $42 €87 $99 Mr. Aad de Winter (retired in 2020) 2023 — — — — — — 2022 — — — — — — 2021 €22 $26 €18 $21 €40 $47 2020 €57 $65 €40 $46 €97 $111 Sustainability (ESG) General information 93 Environmental information 99 Social information 100 Governance information 104 Pharming Group N.V. Annual Report 2024 | 93 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information General Information Sustainability (ESG) General information Pharming Group N.V. launched in early 2023 a program aimed to comply with the EU Corporate Sustainability Reporting Directive (CSRD), covering various Environmental, Social and Governance (ESG) aspects. This section describes the significant steps that were taken by Pharming during the year 2024 as part of its ESG program, based on the assumption that Pharming had to file its first mandatory ESG report for the year 2025 in accordance with CSRD requirements and related ESRS reporting standards. We are closely monitoring the evolving regulatory landscape, particularly the European Commission's Omnibus proposal, unveiled on February 26, 2025, which may lead to significant changes to our sustainability reporting requirements. These changes, to the extent known already, are under review by us, as we recognize that these amendments will fundamentally reshape ESG reporting and management. We are confident in the progress we have made so far and remain dedicated to upholding an impactful sustainability (ESG) program that is consistent with our company's strategy, vision and mission. Further announcements on the design of our sustainability (ESG) program going forward will be made as soon as more details are available. Pharming Group N.V. is also within the scope of the U.S. SEC's climate change disclosure requirements, which are designed to mandate companies to report on their climate-related risks and the financial impact of such risks. These rules aim to increase transparency around environmental factors, including greenhouse gas emissions and climate change related governance. Due to current SEC delays, Pharming's regulatory obligation to comply with these SEC's disclosure requirements is halted. Once the regulatory situation is resolved, Pharming will assess the impact and integrate these disclosures into its reporting processes as necessary. Nevertheless, Pharming will leverage the work already done to comply with CSRD to meet the U.S. SEC climate change disclosure requirements once they are in effect. In 2023, Pharming conducted a double materiality assessment (DMA) in accordance with the CSRD. This assessment identified both the sustainability impact of the company's activities on the environment and society, as well as how sustainability matters affect the company's financial performance.Additionally, Pharming performed an ESRS-reporting gap assessment and an organizational readiness analysis to ensure that the company is well prepared for the reporting requirements that were imposed by CRSD. In 2024, Pharming Group N.V. has continued its sustainability journey with significant progress, taking a series of strategic actions: • We established a cross-functional implementation team, bringing together the ESG Program Team and dedicated Business Owners for each material topic. This collaborative approach ensures that sustainability efforts are embedded across the organization, with clear accountability and expertise for each focus area. • We have started collecting the required data points for sustainability reporting ensuring alignment with the CSRD. • We have defined the methodologies for some of the metrics that were deemed essential for ensuring consistent and accurate reporting. This foundational work will enable Pharming to track and report our sustainability performance consistently over time. • To build organizational readiness, we organized training sessions for the Business Owners, ensuring they are well informed about CSRD developments and their implications for Pharming. Additionally, EU Taxonomy training was provided to ESG Steering Committee members and the finance reporting department, helping them understand the criteria and reporting requirements of the EU Taxonomy Regulation, to the extent applicable to Pharming. • We started the EU Taxonomy eligibility assessment, evaluating our business activities in relation to the EU Taxonomy Regulation. This assessment was started to determine how our operations align with the EU's framework for environmentally sustainable activities, to the extent applicable to Pharming. Pharming Group N.V. Annual Report 2024 | 94 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information General Information Basis for preparation Over the past years, Pharming has taken important steps to align the internal reporting processes and governance structure with the ESRS requirements. These preparations included establishing dedicated implementation teams, identifying key reporting requirements, and making updates towards our data collection and reporting practices, fostering collaboration across departments. This year's sustainability (ESG) section in this Annual Report is structured into four sections: General information covering basis for preparation with our connection to our strategy, our ESG roadmap and our stakeholders, material sustainability matters and sustainability governance. Environmental information focusing on climate change. Social information addressing, amongst others, employee well-being, employee training and skills development, and employee engagement as well as covering human rights, patient safety and product quality, and access to products and services. Governance information covering business ethics and animal welfare. Our approach reflects our commitment to transparent and responsible business practices. Connection to our strategy Pharming's strategy is presented in the section of this annual report titled Our strategy. Our ESG goals and objectives are closely related to our company's overall strategy, purpose, vision and mission. Our core values are also the foundation of our ESG program. It strengthens our ability to manage impacts, risks and opportunities of our material ESG topics. By embedding ESG into our strategy we create long-term value for our stakeholders. Pharming Group N.V. Annual Report 2024 | 95 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information General Information ESG roadmap 2022-2024 The major steps taken within the context of our ESG Journey so far, in accordance with CSRD requirements, are listed below. 2022 2023 2024 Initiation Definition Integration • ESG Program-Manager appointed • ESG Steering Committee installed (all three presiding members are members of the Executive Committee) • Task force assembled • Peer analysis performed • Defining high level plan: CSRD-centered ESG journey • Stakeholder analysis completed • Double Materiality Assessment material topics Pharming completed • Technical gap assessment and organizational readiness analysis completed • Implementation phased learning approach with prioritization • Final deployable ESG Roadmap, start implementation • Advance integration ESG, corporate values and strategic planning • Board approved metrics for mandatory topics and target setting for Climate Change • Implement and document all ESG processes and internal controls for solid ESG reporting • Upskill people • Review sustainability governance Pharming Group N.V. Annual Report 2024 | 96 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information General Information Our stakeholders We recognized five main stakeholders that Pharming should engage with closely: Patients Patients are the most important stakeholders for Pharming receiving our healthcare services, reflecting Pharming's purpose to serve the unserved rare disease patients. Healthcare professionals Healthcare professionals are also key stakeholders for Pharming achieving optimal healthcare and building trust. Pharming employees Recognizing employees as key stakeholder for any organization is essential for building and further shaping a sustainable organization. Pharming management Pharming management is an important stakeholder because of their decision-making authority and their role in driving innovation and adaptation within Pharming. Their involvement and support are critical for Pharming's success and sustainability. Investors Investors are essential for maintaining financial stability, driving growth, and creating sustainable long-term value for all stakeholders. These stakeholders have a significant impact on Pharming, and Pharming has a significant impact on these stakeholders. As part of our ongoing commitment to sustainability, Pharming has recently published an ESG stakeholder dialogue policy. This policy formalizes our approach to engaging with key stakeholders, ensuring their views and concerns are incorporated into our sustainability strategy. Pharming Group N.V. Annual Report 2024 | 97 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information General Information Materiality sustainability matters During 2023, Pharming conducted a double materiality analysis, in accordance with CSRD requirements, to identify and prioritize environmental, social, and governance matters that are most relevant for Pharming. The outcome of the double materiality assessment reflects (i) Pharming's most significant impacts on people and the environment, and (ii) the most significant sustainability-related risks and opportunities affecting Pharming. The process, supported by external consultants, was led by the ESG Program Manager and supervised by the internal ESG Steering Committee. Results were validated with the Executive Committee and the Board of Directors in 2024. Looking ahead to 2025, Pharming plans to update the double materiality assessment to refine its approach and ensure the sustainability matters selected for Pharming are continuously aligned with evolving business priorities, stakeholder expectations and regulatory requirements. This update will involve/reassessing the identified material topics, considering new risks and opportunities that have emerged since our initial assessment. The results of this updated assessment will be used to enhance the company's sustainability reporting, further integrate sustainability into business strategy and drive future initiatives in line with our Company's strategy, vision and mission. ESG theme Material topics Environmental Climate change Social Inclusion Employee well-being Employee training and skills development Employee engagement Human rights Patient safety and product quality Access to products and services Governance Business ethics Animal welfare European Sustainability Reporting Standards (ESRS) Pharming Group N.V. Annual Report 2024 | 98 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information General Information Sustainability governance Governance of ESG program The ESG program was led by our ESG program manager. The internal ESG Steering committee, with three members of Executive Committee provides guidance and oversight in biweekly meetings. In 2024, we advanced our governance structure, with a board representative appointed as the ultimate sponsor of the ESG program. Quarterly updates were given to Audit Committee and Board by the ESG program manager. The Executive Committee received monthly updates on the progress. The core ESG Program Team, orchestrating program execution, was enforced. Business Owners were appointed for each of the material ESG topics. Additional information regarding the governance can be found in the section of this report titled Corporate Governance. Pharming Group N.V. Annual Report 2024 | 99 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Environmental information Environmental information ESRS E1: Climate Change Climate change Climate Change is a global environmental issue, and at Pharming we acknowledge that we have a role to play in abating global greenhouse gas (GHG) emissions and reducing our environmental impact through our direct and indirect operations. Not only do we acknowledge the regulatory and scientific imperative for action on climate change, but we are aware that if we wish to live up to our mission and values: we always do the right thing and we care, then we must act as well. Pharming has been on a learning journey since 2022 to understand which activities in our business and value chain generate GHG emissions, and how we can improve the measurement of those emissions, in detail and accuracy. We have developed our measurement methodology in accordance with the principles and guidance of the European Sustainability Reporting Standards (ESRS) and the Greenhouse Gas Protocol (GHGP), and will continue to maintain alignment with these frameworks going forwards. In 2024, Pharming committed to align with the ESRS E1 of the CSRD, which set out reporting requirements related to targets, emissions and climate action. Our targets are set in line with the best practice from the Science Based Targets initiative (SBTi) that align our climate impact with the Paris Agreement. The Board of Directors discussed and approved the following proposed targets: Short-term targets: • Reduce 42% Scope 1 & 2 emissions in 2030 • Reduce 25% Scope 3 emissions in 2030 Long-term targets: • Net Zero emissions across Scope 1, 2 and 3 in 2050 We recognize that as a growing organization we will have challenges in reducing our absolute emissions to meet these targets, whilst allowing the company to grow. This is commonly understood as the challenge of 'decoupling' our emissions performance from our financial performance. We have identified several strategic levers that we believe will help us address this challenge and achieve our ambitious targets simultaneously. Increasing our energy efficiency is a top priority across all emission scopes, as we embrace the principle of sufficiency in our energy usage. Concurrently we will be switching our energy consumption towards low carbon sources, such as renewable energy, ensuring that the energy we need to use for our operations has as minimal impact on Climate Change. Lastly, a significant proportion of our emissions exists in Scope 3, including the products and services we purchase, consequently, we recognize that supplier collaboration will be key to ensuring we can reduce our climate impact in line with our Science Based Targets. We are currently in the process of refining our emissions calculation methodology to ensure it is auditable, repeatable, and scalable. Alongside these improvements, we are improving the accuracy of the GHG inventory to ensure our targets remain realistic and achievable. Lastly, we are working with internal and external stakeholders to develop and evaluate the impact of our decarbonization initiatives, prioritizing them for their emission abatement potential, financial impact to Pharming, and ease to implement. With these ongoing improvements we are preparing ourselves for a low carbon and sustainable operation at Pharming, whilst ensuring we can continue our mission of serving the unserved rare disease patient. Pharming Group N.V. Annual Report 2024 | 100 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Social information Social information Pharming identified several material ESG topics in the social pillar. ESRS S1: Own workforce In 2024, we began addressing and evaluating our disclosure gaps related to our own workforce across the four material topics outlined below. Inclusion Pharming aspires to foster an inclusive culture where all of Pharming's stakeholders feel respected and valued; from our employees and shareholders to our customers and partners. We continually look for new ways to improve our inclusive culture. Employee well-being Pharming recognizes the opportunities employee well-being offers, including talent attraction and retention that support business growth, innovation, and more effective leadership. Employee well-being is important because it contributes to a positive work culture, higher levels of productivity, a stronger company reputation and more. One of our core values is We Care, recognizing the importance of employee well-being. Our employees play a vital role in the continuing success of Pharming. We are dedicated to attracting, motivating and retaining the most talented employees in our field by actively promoting a high-performance environment where people from different backgrounds and careers are eager to learn from all stakeholders. The Dutch Works Council was established in January 2023, with nine elected members representing all departments and locations across the Netherlands. In 2024, the Council continued to strengthen its expertise and processes to enhance representation of employees in company decision-making. Its primary goal is to formalize the value of employee feedback and insights, ensuring structured and effective dialogues between employees and management. Employee training and skills development Pharming has a material impact on employees by ensuring equal treatment and growth opportunities through facilitating continuous professional growth and developing employees' skills. We also recognize that to remain competitive in the highly competitive biotech industry we must continuously develop the expertise and competencies of our people. To do this, Pharming offers training, mentorship, and other skills development-related activities to all employees. Continuous learning is also made possible with the Pharming Academy and inspirational sessions called Pharming Academy Talks, were organized throughout the year. Several cohorts of the Leadership program ran in 2024. Our Performance management and development philosophy is built around the belief that to perform at our best and to reach our goals, we must work well together, role model the right behaviors, and use our knowledge and skills to get the desired results. Reviewing the talent of our people happens throughout the year in performance review cycle. While there are three, formal appraisal meetings per year, we encourage performance conversations and feedback on an ongoing basis helping to stimulate self-development and keep Specific, Measurable, Achievable, Relevant and Time-Bound (SMART) goals on track. Pharming Group N.V. Annual Report 2024 | 101 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Social information By aligning goals with competencies, setting SMART goals, creating action plans, providing feedback and support, and evaluating competency development, we foster continuous improvement and growth of our employees. This Competency Framework, and the subsequent priority competencies, are the backbone of our people strategy and programs, and are being integrated into our performance management process and into the new Pharming Academy for Learning & Development. We have invested in a learning and development approach and system that supports this philosophy and is based on the following principles: • Learning opportunities are everywhere Continuous learning and improvement from anyone and anywhere • We help each other grow We empower employees: feedback, guidance, self- development • We have a consistent learning environment with one language Consistency across business units using our Blueprint framework and Development Council • Learning is a personal journey The expert was once a beginner • We create learning memories We learn from the best, with in-house experts across the organization and excellent external partners/providers Employee engagement Pharming recognizes the importance of offering competitive labor conditions. These include appropriate employment terms such as adequate wages, freedom of association, work councils and information, consultation and participation rights of workers and more. We continuously invest in the education of our people to increase their knowledge in innovative and sustainable technologies. We work together with industry and educational institutions to search for new treatments and technologies, as well as to be a training ground for their students. Pharming believes that competitive remuneration plays a vital role in attracting and retaining the most talented employees within our industry. A consistent and competitive remuneration structure, which applies across the workforce, is another core principle to promote a culture of shared purpose and performance, focusing all staff members to deliver on Pharming's mission, vision and strategy and creating long-term stakeholder value. Regular feedback is an important aspect of Pharming's culture. Pharming conducted a global employee survey in November 2023, followed by a mini pulse survey in December 2024. Results of the survey are being used to identify and implement workplace improvements. Employee statistics The Company hired 88 new employees in 2024 (82 in 2023). In 2024, 77 employees left the Company (57 in 2023). As of December 31, 2024, 426 people were employed by Pharming Group compared to 415 in 2023. In 2024, our headcount grew by 2.65% to further strengthen our organization across all disciplines in line with the business strategy. Social performance Employees 426 (2023: 415) Headcount at the end of the year 2024 2023 2022 The Netherlands 231 222 227 Australia 2 0 0 France 14 20 22 Germany 7 6 3 Italy 2 3 2 Spain 1 2 1 Turkey 1 1 0 United Kingdom 16 18 11 United States 152 143 124 Total 426 415 390 2024 2023 2022 Research and development 139 139 156 General and administrative 133 124 83 Marketing and sales 111 103 93 Production 43 49 58 Total 426 415 390 Pharming Group N.V. Annual Report 2024 | 102 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Social information ESRS S2: Workers in the value chain Human rights Human rights of the workers in the value chain has been identified as an important topic for Pharming and peers in the industry. Pharming recognizes that any potential impact on workers in the supply chain (including contractors and suppliers) and their exposure to forced labor and child labor should be vigorously addressed. Integrating human rights into the supply chain due diligence is not only morally imperative but also essential for business success, resilience, and sustainability in today's global marketplace. In 2024, we published a Modern Slavery and Human Trafficking Statement, which can be found on our corporate website. We also drafted a Human Rights statement. ESRS S4: Consumers and end users We have initiated efforts throughout 2024 to address and evaluate our disclosure gaps related to two key material topics under ESRS S4: Patient Safety and Product Quality, and Access to Products and Services. In doing this we have identified that the majority of the gaps to address were common across the two topics. As a result, we decided to combine them to make the assessment more efficient. Patient safety and product quality Consistent with our company's purpose and embedded in our Core Values is the premise that everything we do is in the interest of our patients. This reinforces our commitment to patient safety and product quality. Ensuring the quality of products and patient safety is an objective we commit to by developing robust production processes and delivering high quality and safe products. To achieve this, the requirements of Good Clinical Practices (GCP), Good Pharmacovigilance Practices (GVP), Good Manufacturing Practices (GMP) and Good Distribution Practices (GDP), along with the numerous national and regional regulatory laws and standards are the foundation of our Quality Management System policies and procedures. Our Quality Assurance department is involved in all quality- related matters, reviews and approval of quality-related documents and conduct of internal audits to monitor the compliance with the principles of GMP, GDP, GVP and GCP and Pharming's policies and procedures. We aim to ensure continuous improvement of our processes, our products and Pharming as a whole. We carefully select and manage a supplier and vendor network which includes Contract Manufacturing Organizations (CMOs), Wholesalers and Distributors, Contract Laboratory Organizations (CLOs), Clinical Research Organizations (CROs), Clinical Sites, and Pharmacovigilance Service Providers. Our external audit program, and supplier assessment and (re)qualification processes together with the use of Master Service Agreements, Quality Assurance Agreements and Safety Data Exchange Agreements underpin this and ensure our commitment to patient safety and product quality is maintained when we outsource. Patient safety To manage, support and fulfill our obligations and commitment to the safety of our patients, Pharming has a Global Pharma- covigilance department. This is responsible for the global safety surveillance of Pharming's products through the monitoring of safety reports, which are received worldwide from unsolicited and solicited sources. The department works with qualified contract partners who perform delegated pharmacovigilance activities in their territory. All safety reports are entered into our global safety databases to ensure we can assess the full safety profile of our products and respond to any safety signals accordingly. We train our employees and contract partners in the required processes and routes to report safety concerns to us. The reporting contact information is provided to prescribing doctors and patients. Our pharmacovigilance system and its components are fully described in our Pharmacovigilance System Master File (PSMF). To maintain its accuracy and relevance, we mandate a review and update at least once per quarter, and we successfully completed this for 2024. Product quality The processes, from product manufacturing to the delivery to the end user, are established and maintained to ensure the product quality. The manufacture, according to defined specifications, for all relevant materials, intermediates and final products, and the quality control testing are outsourced to qualified and licensed CMOs and CLOs. GMP is applied throughout. Critical process parameters and all analytical measures are validated and re- validated if major changes occur. Production equipment, utilities and instruments are well maintained, and critical equipment and instruments are calibrated and qualified. The release of finished product is done by the Pharming Qualified Person (QP). The QP checks that the GMP quality system is adhered to during all production steps and that the manufactured product meets the required specifications. Transport of packaged drug product to wholesale license holders and marketing authorization holders is performed by a qualified transporter. The distributors are responsible to ensure that counterfeit control measures are taken and that product recipients are authorized to receive medicinal product. Pharming Group N.V. Annual Report 2024 | 103 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Social information Pharming has processes in place to record, investigate and resolve product quality complaints, to evaluate and initiate recalls should they be required, to describe the process for returned products and to ensure no falsified product can be introduced in the Pharming supply chain. Access to products and services Pharming serves the unserved rare disease patients through our innovative medicines. We are committed to working with policymakers to provide broad and sustainable access to our medicines. In the US, eligible patients may qualify for copay savings program or our Patient Assistance Program in the event coverage cannot be altered. Patients can access our products through participation in one of our clinical trials. All Pharming sponsored clinical trials are approved by regulatory authorities and ethics committees, and conducted in strict accordance with Good Clinical Practices. As part of our responsibility as a clinical trial sponsor, trial sites and investigators are assessed prior to selection, monitored throughout the trial by our qualified external Clinical Research Organizations, and audited by Pharming's Quality Assurance department. This ensures the ethical and safe conduct of the trial, protecting our patients' rights and safety. In addition to our clinical trials, we may also provide patients with early access to our products prior to regulatory approval, upon the request of a physician. Pharming Group N.V. Annual Report 2024 | 104 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Governance information Governance information Pharming identified two material ESG topics in the Governance pillar. ESRS G1: Business conduct Business ethics Ethical and regulatory expectations and scrutiny are increasingly growing in our sector, raising the level of complexity. Within this context, Pharming always places business integrity at the core of our culture and as an essential part of the way we work. We firmly believe that any good business is unreservedly an ethical business. We demonstrate this and understand that a robust reputation is essential for any strong successful business today. We strive to gain the trust of our patients and stakeholders based on the fact that we conduct our business with integrity, transparency, quality and respect, collectively and as individual employees. We aim to stand accountable as individual employees, showing patients, healthcare professionals, the authorities and society at large that they can trust our actions as well as our words and that we own business integrity, choosing to do the right thing even when it is hard, even when no one is watching. Based on our solid long-term strategy and business integrity framework, we have introduced new and enhanced policies in 2024, accompanied by more operational procedures, covering a variety of corporate and healthcare compliance matters. The introduction of these policies and procedures has been accompanied by a training program, targeted at audiences selected according to a risk-based approach. Pharming Group N.V. Annual Report 2024 | 105 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Governance information We expect all Pharming management, employees, officers and contractors to act in line with our Code of Conduct by conducting any business related to Pharming according to our principles and ethical standards. In 2024, our Code of Conduct was updated. Inter alia, an ESG chapter was added to the Code of Conduct, which can be found in the Corporate Governance section of Pharming's corporate website. We take privacy and data protection seriously. Compliance with the General Data Protection Regulation ("GDPR") and other privacy regulations remains a priority for Pharming. Pharming has a whistleblower policy in place, referred to as Alert Reporting and Investigation Procedure, which can be found in the Corporate Governance section of the Company's website. In January 2023, the EU Dutch Law regarding the "Whistleblower Protection Act" was amended to implement the EU Whistleblower Directive. The policy has been updated and approved by the Board of Directors on March 20, 2024, to reflect and ensure compliance with the relevant regulations. This Alert Reporting and Investigation Procedure describes the reporting and investigation procedures for suspected breaches of the Pharming Code of Conduct, policies, or any law or regulation applicable to the Pharming organization. The procedure applies to all Pharming entities in all countries. Pharming has a strict non-retaliation policy. To support the reporting of suspected breaches of the Pharming Code of Conduct, policies, or any law or regulation applicable to the Pharming organization, a Speak Up! framework is scheduled to be launched globally in 2025, providing multiple channels that can be used for reporting and ensuring strict confidentiality. Pharming has a material positive impact on society, employees, customers, shareholders, and suppliers through behaviors that support transparent and sustainable business practices to the benefit of all stakeholders, taking into account (effectiveness of) whistleblowing protection, policies, training and other initiatives that promote ethical business conduct. Moreover, potential negative impact on society, employees, customers, shareholders, and suppliers in the event of corruption, bribery or anti-competitive behavior that is linked to Pharming or its business partners, non-compliance with Pharming's Code of Conduct, Business Principles and other policies, including conflicts of interest, economic extortion, misappropriation of monetary assets, manipulation of information, and misstatement of (non-)financial information would have a very material effect on Pharming. To provide a transparent picture as per the CSRD and in accordance with the principles and guidance of the European Sustainability Reporting Standards (ESRS), a reporting methodology was defined and endorsed by the Pharming Board of Directors in 2024. Animal welfare Our proprietary transgenic manufacturing technology platform is the foundation upon which we started our Company. We have developed a unique, scalable, reproducible, current Good Manufacturing Practices, or cGMP, validated methodology for the production of c1-esterase inhibitor (recombinant human protein). Our manufacturing process utilizes transgenic animals to produce this human recombinant protein in their milk. This process enables the production of the protein in the milk of the animals without the animals being subjected to unnecessary discomfort or being altered in other aspects of their biology. We raise the rabbits at specialized facilities with high standards of animal husbandry, welfare and security. These facilities further incorporate protections against contamination from the outside environment. All institutions using animals for research or production of medicinal products must comply with EU and national regulations regarding experimental animals. Before commencing any activity involving animals, a project license application must be approved by the Dutch regulatory ethics committee. We have a comprehensive Code of Conduct which not only enforces the strict regulatory control over our transgenic biological materials and animals, with regard to the environment and particularly the continuous well-being of our animals, but also emphasizes our commitment to treat animals respectfully, refining procedures and reducing discomfort and stress as much as possible. Furthermore, an Animal Welfare Body consisting of the company veterinarian and animal technicians is established in every country where Pharming operates animal facilities. In 2024, Pharming established a working team with the purpose of evaluating the gaps and having an entity specific metric in place which was endorsed by the company board in Q4 2024. A system for collecting data on animal welfare issues was proposed. This allowed the establishment of a metric to support monitoring animal welfare by Pharming's already-established animal welfare body. The relevant issues and severity levels were defined, and the data collection mechanism was presented to the Animal Welfare Bodies, which will begin using the tool in 2025. Financial Statements Consolidated financial statements 107 Notes to the consolidated financial statements 112 Company financial statements 159 Notes to the Company financial statements 161 Pharming Group N.V. Annual Report 2024 | 107 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Consolidated statement of income Consolidated financial statements Consolidated statement of income For the year ended December 31 Amounts in US$ ‘000 notes 2024 2023 Revenues 5 297,200 245,316 Costs of sales 7 (35,399) (25,212) Gross profit 261,801 220,104 Other income 6 2,177 23,349 Research and development (83,147) (68,914) General and administrative (70,650) (55,877) Marketing and sales (118,802) (124,049) Other Operating Costs 7 (272,599) (248,840) Operating profit (loss) (8,621) (5,387) Fair value gain (loss) on revaluation 13, 19 4,990 (930) Other finance income 8 6,843 3,663 Other finance expenses 8 (9,944) (9,069) Finance gain (cost) net 1,889 (6,336) Share of net profits (loss) in associates using the equity method 13 (1,760) (289) Profit (loss) before tax (8,492) (12,012) Income tax credit (expense) 9 (3,349) 1,464 Profit (loss) for the year (11,841) (10,548) Basic earnings per share (US$) 27 (0.018) (0.016) Diluted earnings per share (US$) 27 (0.018) (0.016) The notes are an integral part of these financial statements. Pharming Group N.V. Annual Report 2024 | 108 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Consolidated statement of comprehensive income Consolidated statement of comprehensive income For the year ended December 31 Amounts in US$ ‘000 notes 2024 2023 Profit (loss) for the year (11,841) (10,548) Currency translation differences 18 (11,980) 5,936 Items that may be subsequently reclassified to profit or loss (11,980) 5,936 Fair value remeasurement investments 18, 13.3 79 1,167 Items that shall not be subsequently reclassified to profit or loss 79 1,167 Other comprehensive income (loss), net of tax (11,901) 7,103 Total comprehensive income (loss) for the year (23,742) (3,445) The notes are an integral part of these financial statements. Pharming Group N.V. Annual Report 2024 | 109 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Consolidated balance sheet Consolidated balance sheet as at December 31 Amounts in US$ ‘000 notes 2024 2023 Non-current assets Intangible assets 10 61,039 71,267 Property, plant and equipment 11 7,752 9,689 Right-of-use assets 12 16,382 23,777 Long-term prepayments 90 92 Deferred tax assets 9 30,544 29,761 Investment accounted for using the equity method 13 466 2,285 Investment in equity instruments designated as at FVTOCI 13 — 2,020 Investment in debt instruments designated as at FVTPL 13 3,767 6,093 Restricted cash 15 1,505 1,528 Total non-current assets 121,545 146,512 Current assets Inventories 16 55,724 56,760 Trade and other receivables 17 54,823 46,158 Marketable securities 14 112,949 151,683 Cash and cash equivalents 15 54,944 61,741 Total current assets 278,440 316,342 Total assets 399,985 462,854 Amounts in US$ ‘000 notes 2024 2023 Equity Share capital 7,769 7,669 Share premium 488,990 478,431 Other reserves (209) (2,057) Accumulated deficit (275,489) (265,262) Shareholders’ equity 18 221,061 218,781 Non-current liabilities Convertible bonds 19 78,154 136,598 Lease liabilities 20 26,968 29,507 Total non-current liabilities 105,122 166,105 Current liabilities Convertible bonds 19 4,245 1,824 Trade and other payables 21 66,611 72,528 Lease liabilities 20 2,946 3,616 Total current liabilities 73,802 77,968 Total equity and liabilities 399,985 462,854 The notes are an integral part of these financial statements. Pharming Group N.V. Annual Report 2024 | 110 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Consolidated statement of changes in equity Consolidated statement of changes in equity For the year ended December 31 Amounts in US$ ‘000 notes Share capital Share premium Other reserves Accumulated deficit Total equity December 31, 2022 7,509 462,297 (8,737) (256,431) 204,638 Profit (loss) for the year — — — (10,548) (10,548) Reserves — — — — — Other comprehensive income (loss) for the year — — 7,103 — 7,103 Total comprehensive income (loss) for the year — — 7,103 (10,548) (3,445) Other reserves 18 — — (423) 423 — Income tax benefit from excess tax deductions related to share-based payments — — — 204 204 Share-based compensation 18, 22 — — — 9,251 9,251 Options exercised / LTIP shares issued 18 160 16,134 — (8,161) 8,133 Value conversion rights of convertible bonds 19 — — — — — Total transactions with owners, recognized directly in equity 160 16,134 (423) 1,717 17,588 Balance at December 31, 2023 7,669 478,431 (2,057) (265,262) 218,781 Profit (loss) for the year — — — (11,841) (11,841) Reserves — — 1,555 (1,555) — Other comprehensive income (loss) for the year — — (11,901) — (11,901) Total comprehensive income (loss) for the year — — (10,346) (13,396) (23,742) Other reserves 18 — — (31) 31 — Income tax benefit from excess tax deductions related to share-based payments — — — (66) (66) Share-based compensation 18, 22 — — — 11,248 11,248 Options exercised / LTIP shares issued 18 100 10,559 — (8,044) 2,615 Value conversion rights of convertible bonds 19 — — 12,225 — 12,225 Total transactions with owners, recognized directly in equity 100 10,559 12,194 3,169 26,022 Balance at December 31, 2024 7,769 488,990 (209) (275,489) 221,061 The notes are an integral part of these financial statements. Further detail on the other reserves is included in note 18. Shareholders' equity . Pharming Group N.V. Annual Report 2024 | 111 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Consolidated statement of cash flows Consolidated statement of cash flows For the year ended December 31 Amounts in US$ ’000 notes 2024 2023 Profit (loss) before tax (8,492) (12,012) Adjustments to reconcile net profit (loss) to net cash used in operating activities: Depreciation, amortization, impairment of non-current assets 7, 10,11,12 16,070 15,925 Equity settled share based payments 18 11,248 9,251 Fair value loss (gain) on revaluation 13, 19 (4,990) 930 Gain on disposal from PRV sale — (21,279) Disposal of leases 12, 20 22 — Other finance income 8 (6,843) (3,663) Other finance expenses 8 9,887 9,069 Share of net losses in associates using the equity method 13 1,758 289 Other — (1,079) Operating cash flows before changes in working capital 18,660 (2,569) Changes in working capital: Inventories 16 (503) (14,434) Trade and other receivables 17 (6,783) (18,539) Payables and other current liabilities 21 (2,769) 16,228 Restricted cash 15 (17) (216) Total changes in working capital (10,072) (16,961) Amounts in US$ ’000 notes 2024 2023 Interest received 8 5,201 2,883 Income taxes received (paid) 9 (15,584) (655) Net cash flows generated from (used in) operating activities (1,795) (17,302) Capital expenditure for property, plant and equipment 11 (790) (1,437) Proceeds on PRV sale 6 — 21,279 Investment intangible assets 10 (6) (27) Disposal of investment designated as at FVOCI 13 2,098 — Purchases of marketable securities 14 (284,314) (382,014) Proceeds from sale of marketable securities 14 314,630 232,811 Net cash flows generated from (used in) investing activities 31,618 (129,388) Payment of lease liabilities 20 (4,008) (4,038) Interests on lease liabilities 20 (1,141) (1,088) Net proceeds of issued convertible bonds 19 104,539 — Repurchase of convertible bonds 19 (134,924) — Interests on convertible bonds 19 (4,457) (4,046) Settlement of share based compensation awards 18 5,579 8,133 Net cash flows generated from (used in) financing activities (34,412) (1,039) Increase (decrease) of cash (4,589) (147,729) Exchange rate effects (2,208) 2,128 Cash and cash equivalents at January 1 15 61,741 207,342 Total cash and cash equivalents at December 31 54,944 61,741 The notes are an integral part of these financial statements. Pharming Group N.V. Annual Report 2024 | 112 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Notes to the consolidated financial statements 1. Corporate information The consolidated financial statements of Pharming Group N.V. ("the Company", "Pharming" or "the Group"), Leiden for the year ended December 31, 2024, were authorized for issue in accordance with a resolution of the Board of Directors on April 2, 2025. The financial statements are subject to adoption by the Annual General Meeting of shareholders, which has been scheduled for June 11, 2025. Pharming Group N.V. is a limited liability public company, which is listed on Euronext Amsterdam ("PHARM"). The Company's American Depositary Shares ("ADSs") are listed on the Nasdaq Global Market ("Nasdaq") under the symbol "PHAR". Each ADS represents 10 of the Company's ordinary shares of €0.01 nominal value. In April 2024, Pharming Group N.V. issued convertible bonds, see note 19. Convertible bonds. These bonds are listed on the Frankfurt Exchange (Börse Frankfurt; ISIN: XS2763018889). The headquarters and registered office of Pharming Group N.V. is located at: Darwinweg 24 2333 CR Leiden The Netherlands Pharming Group N.V. is registered at the Chamber of Commerce in the Netherlands under number 28048592. Pharming Group N.V. is the ultimate parent company of Pharming Group. A list of subsidiaries is provided in note 2.3 Basis of consolidation. Pharming Group N.V. is a global biopharmaceutical company dedicated to transforming the lives of patients with rare, debilitating, and life-threatening diseases. Pharming is commercializing and developing a portfolio of innovative medicines, including small molecules and biologics. Pharming is headquartered in Leiden, the Netherlands, and has employees around the globe who serve patients in over 30 markets in North America, Europe, the Middle East, Africa, and Asia-Pacific. Date of authorization of issue The financial statements were signed and authorized for issue by the Board of Directors on April 2, 2025. The adoption of the financial statements is reserved for the shareholders in the Annual General Meeting of Shareholders (AGM) on June 11, 2025. 2. Accounting principles and policies 2.1 Basis of preparation The consolidated financial statements are prepared in accordance with the IFRS® Accounting Standards as issued by the International Accounting Standards Board, or IASB, and as adopted by the European Union. The consolidated financial statements have been prepared under the historical cost convention, unless otherwise stated. The preparation of financial statements in conformity with IFRS and Book 2 Title 9 of the Dutch Civil Code requires the use of certain material accounting estimates. It also requires the Board of Directors to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 2.5 Material accounting judgements and estimates. These financial statements are presented in US Dollars (US$, USD) and rounded to the nearest thousand dollar ($'000), unless stated otherwise. 2.2 New and revised IFRS standards The Company applied for the first-time certain amendments, which are effective for annual periods beginning on or after January 1, 2024, as disclosed below. • Amendments to IFRS 7 and IAS 7: Supplier Finance Arrangements • Amendments to IFRS 16: Lease Liability in a Sale and Leaseback • Amendments to IAS 1: Classification of Liabilities as Current or Non-current • Amendments to IAS 1: Non-current Liabilities with Covenants Pharming Group N.V. Annual Report 2024 | 113 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements. The Company has not early adopted any other standard, interpretation or amendment that has been issued but are not yet effective. The new and amended standards and interpretations that are issued, but are not yet effective or endorsed for use in the EU, up to the date of issuance of the Group's financial statements, which the Group intends to adopt, if applicable, when they become effective, are disclosed below. • Amendments to IAS 21: Lack of Exchangeability • IFRS 18: Presentation and Disclosures in Financial Statements • IFRS 19: Subsidiaries without Public Accountability: Disclosures The Board of Directors does not expect that the adoption of the Standards listed above will have a material impact on the financial statements of the Company in future periods, except for IFRS 18 Presentation and Disclosures in Financial Statements. IFRS 18 replaces IAS 1, carrying forward many of the requirements in IAS 1 unchanged and complementing them with new requirements. In addition, some IAS 1 paragraphs have been moved to IAS 8 and IFRS 7. Furthermore, the IASB has made minor amendments to IAS 7 and IAS 33 Earnings per Share. IFRS 18 introduces new requirements to: • present specified categories and defined subtotals in the statement of profit or loss; • provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements; and • improve aggregation and disaggregation. An entity is required to apply IFRS 18 for annual reporting periods beginning on or after January 1, 2027, with earlier application permitted. The amendments to IAS 7 and IAS 33, as well as the revised IAS 8 and IFRS 7, become effective when an entity applies IFRS 18. IFRS 18 requires retrospective application with specific transition provisions. The Board of Directors anticipate that the application of these amendments may have an impact on the group's consolidated financial statements in future periods. 2.3 Basis of consolidation The consolidated financial statements include Pharming Group N.V. and its controlled subsidiaries, after the elimination of all intercompany transactions and balances. Subsidiaries are consolidated from the date the acquirer obtains effective control until control ceases. An entity is considered effectively controlled if the Company, directly or indirectly, has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Acquisitions of subsidiaries are accounted for using the acquisition method of accounting. The financial statements of the subsidiaries are prepared for the same reporting year as Pharming Group N.V., using the same accounting policies. Intercompany transactions, balances and unrealized gains and losses on transactions between group companies are eliminated. The following table provides an overview of the consolidated subsidiaries at December 31, 2024: Entity Registered office Investment % Pharming Americas B.V. The Netherlands 100 Pharming Intellectual Property B.V. The Netherlands 100 Pharming Technologies B.V. The Netherlands 100 Pharming Research & Development B.V. The Netherlands 100 Pharming Australia Pty Ltd Australia 100 Pharming UK Ltd The United Kingdom 100 Broekman Instituut B.V. The Netherlands 100 Pharming Healthcare, Inc. The United States 100 ProBio, Inc. The United States 100 Liquidation of Pharming B.V. During 2024, the Company completed the liquidation of its wholly owned subsidiary, Pharming B.V., a dormant subsidiary. The decision to liquidate was made as part of the Company's strategic realignment and efforts to streamline operations. The liquidation process was finalized on December 17, 2024, and Pharming B.V. was formally dissolved. Upon liquidation, there were no material assets or liabilities available at the dormant subsidiary. The liquidation did not result in a material financial impact for the Company and has been fully recognized in the Company's financial position. The liquidation process was conducted in accordance with applicable laws and regulations. Pharming Group N.V. Annual Report 2024 | 114 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements 2.4 Accounting principles and policies Foreign currency translation In preparing the financial statements of the Group, transactions in currencies other than the entity's functional currency (foreign currencies) are recognized at the rates of exchange prevailing on the dates of the transactions. At each reporting date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences are recognized in profit or loss in the period in which they arise except for: • Exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings; • Exchange differences on transactions entered into to hedge certain foreign currency risks; and • Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur in the foreseeable future (therefore forming part of the net investment in the foreign operation), which are recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal or partial disposal of the net investment. For the purpose of presenting consolidated financial statements in US Dollars, the assets and liabilities of the Group's operations having a different functional currency are translated at exchange rates prevailing on the reporting date. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the date of transactions are used. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in a foreign exchange translation reserve. The following exchange rates were applied: Applied exchange rates December 31, 2024 Average 2024 December 31, 2023 Average 2023 EUR/USD 1.0350 1.0804 1.1002 1.0790 AUD/USD 0.6224 0.6596 Not used Not used GBP/USD 1.2488 1.2772 Not used Not used Distinction between current and non-current An item is classified as current when it is expected to be realized (settled) within 12 months after the end of the reporting year. Liabilities are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting year. Intangible assets acquired separately Intangible assets acquired separately are measured at historical cost. The cost of intangible assets acquired in a business combination is recognized and measured at fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Variable considerations that are part of the purchase of an intangible asset are recognized as a liability when the considerations become due. Intangible assets with finite lives are amortized over the useful life and assessed for impairment whenever there is an indication that the intangible assets may be impaired and at the end of each reporting period. The estimated useful lives, residual values and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Changes in the expected useful life, according to the straight-line method, or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of income in the relevant expense category consistent with the function of the intangible asset. Derecognition of intangible assets An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized. Biological Assets Under IAS 41 "Agriculture", the Board of Directors is required to assess whether 'biological assets' which are contributing to production of our cash flows should be accounted for as assets. The Board of Directors have assessed Pharming's biological assets and conclude that these do not qualify to be recognized under the relevant standard IAS 41 "Agriculture" due to their uniqueness and very special transgenic nature and thus all relevant costs are expensed through the income statement. Pharming Group N.V. Annual Report 2024 | 115 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Property, plant and equipment Property, plant and equipment is stated at cost less accumulated depreciation charges and accumulated impairment charges. Generally, depreciation is calculated using a straight-line basis over the estimated useful life of the asset. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of income in the year the asset is derecognized. Residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. All costs that are directly attributable to bringing an asset to the location and condition necessary for it to be capable of operating in the manner intended by management, will be capitalized. These costs include direct employee benefits, rent and testing costs. Capitalization will be done until the asset is capable of operating in the manner intended by management. Investments in associates An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting. Under the equity method, an investment in an associate is recognized initially in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other comprehensive income of the associate. When the Group's share of losses of an associate exceeds the Group's interest in that associate (which includes any long-term interests that, in substance, form part of the Group's net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. The requirements of IAS 36 are applied to determine whether it is necessary to recognize any impairment loss with respect to the Group's investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases. When a Group entity transacts with an associate of the Group, profits and losses resulting from the transactions with the associate or joint venture are recognized in the Group's consolidated financial statements only to the extent of interests in the associate or joint venture that are not related to the Group. Financial assets Financial assets are recognized when the Company becomes a party to the contractual provisions of a financial instrument. Financial assets are derecognized when the rights to receive cash flows from the financial assets expire, or if the Company transfers the financial asset to another party and does not retain control or substantially all risks and rewards of the asset. Purchases and sales of financial assets in the normal course of business are accounted for at settlement date (i.e., the date that the asset is delivered to or by the Company). At initial recognition, the Company measures its financial assets at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset. After initial recognition, the Company classifies its financial assets as subsequently measured at either (i) amortized cost, (ii) fair value through other comprehensive income or (iii) fair value through profit or loss on basis of both: • The Company's business model for managing the financial assets; and • The contractual cash flow characteristics of the financial asset. Subsequent to initial recognition, financial assets are measured as described below. At each balance sheet date, the Company assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired and recognizes a loss allowance for expected credit losses for financial assets measured at either amortized costs or at fair value through other comprehensive income. If, at the reporting date, the credit risk on financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12 months of expected credit losses. If, at the reporting date, the credit risk on a Pharming Group N.V. Annual Report 2024 | 116 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements financial instrument has increased significantly since initial recognition, the Company measures the loss allowance for the financial instrument at an amount equal to the lifetime expected credit losses. Financial assets at amortized cost Financial assets are measured at amortized cost if both (i) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest of on the principal amount outstanding. A financial asset measured at amortized cost is initially recognized at fair value plus transaction cost directly attributable to the asset. After initial recognition, the carrying amount of the financial asset measured at amortized cost is determined using the effective interest method, less any impairment losses. Financial assets at fair value through other comprehensive income (FVTOCI) On initial recognition, the Group may make an irrevocable election (on an instrument-by-instrument basis) to designate investments in equity instruments as at FVTOCI. Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in the legal reserve fair value revaluation. The cumulative gain or loss is not reclassified to profit or loss on disposal of the equity investments, instead, it is transferred to retained earnings. Financial assets at fair value through profit and loss (FVTPL) Financial assets that do not meet the criteria for being measured at amortized cost or FVTOCI are measured at FVTPL. Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognized in profit or loss. The net gain or loss recognized in profit or loss includes any dividend or interest earned on the financial asset and is included in the 'fair value gain (loss) on revaluation' line item (note 13. Investments). Fair value is determined in the manner described in note 13. Investments. Impairment of assets Assets that have an indefinite useful life and assets not yet available for use are not subject to depreciation or amortization and are tested at least annually for impairment. Assets that are subject to depreciation or amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows. Non-financial assets for which an impairment loss is recorded, are reviewed for possible reversal of the impairment at each reporting date. Inventories Inventories are stated at the lower of cost and net realizable value. Cost comprises direct materials and, where applicable, direct labor costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the First in First out (FIFO) method. Net realizable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. Trade and other receivables Trade and other receivables are recognized initially at transaction price. Subsequent measurement is at amortized cost using the effective interest method, less the expected credit loss. Trade receivables are amounts due from customers for goods sold in the ordinary course of business. They are generally due for settlement within 30 days and therefore are all classified as current. For trade receivables and contract assets, the Company applies a simplified approach in calculating expected credit loss. The Company assesses the expected credit loss that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value. Cash and cash equivalents Cash and cash equivalents are defined as cash on hand, demand deposits and short-term, highly liquid investments (maturity less than 3 months) readily convertible to known amounts of cash and subject to insignificant risk of changes in value. For the purpose of the statement of cash flow, cash and cash equivalents do not include restricted cash and the interest on cash is accounted for as operating cash flow. Marketable securities Marketable securities are financial assets held for short-term purposes which are principally traded in liquid markets and are classified within current assets on the consolidated balance sheet. Marketable securities are measured as financial assets as described above. The financial impacts related to Pharming Group N.V. Annual Report 2024 | 117 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Marketable securities are recorded in 'Other finance income' in the consolidated statement of income. The cash (re)payments relating to Marketable securities are classified as investing activities. The cash flows relating to interest from Marketable securities held at amortized cost are classified as cash flows generated from operating activities. Equity The Company only has ordinary shares, and these are classified within equity upon issue. Shares transferred in relation to settlement of (convertible) debt are measured at fair value with fair value based on the closing price of the shares on the trading day prior to the settlement date. Equity is recognized upon the recognition of share-based payment expenses; shares issued upon exercise of such options are measured at their exercise price. Transaction costs associated with an equity transaction are accounted for as a deduction from equity to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided. Transaction costs related to the issue of a compound financial instrument are allocated to the liability and equity components of the instruments in proportion to the allocation of proceeds. Financial liabilities Financial liabilities are classified as either financial liabilities at fair value through profit or loss (derivative financial liabilities) or financial liabilities at amortized cost (trade and other payables). All financial liabilities at amortized cost are initially recognized at the fair value of the consideration received less directly attributable transaction costs; transaction costs related to the issue of a compound financial instrument are allocated to the liability and equity components of the instruments in proportion to the allocation of proceeds. After initial recognition, financial liabilities are subsequently measured at amortized cost using the effective interest method. Gains and losses are recognized in the statement of income when the liabilities are paid off or otherwise eliminated as well as through the amortization process. Purchases and sales of financial liabilities are recognized at settlement date. A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expired. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the statement of income. Convertible bonds The convertible bonds are classified as hybrid financial instruments under IAS 32 and pursuant to it the debt host contract and the embedded derivative for the fair value of the conversion rights into Pharming shares (the "conversion option") are recognized separately. The component parts of convertible bonds issued by the Group are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. A conversion option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Company's own equity instruments is an equity instrument. If, or until, this fixed-for-fixed criterion is not met, the conversion option is recognized as a financial liability derivative at fair value through profit or loss. When this fixed-for-fixed criterion is met at a later date, the conversion option is reclassified to equity at fair value, resulting in a fair value result immediately prior to the reclassification. If the fixed-for-fixed criterion is met, at the date of issue, the fair value of the debt host contract is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortized cost basis using the effective interest method. The conversion option classified as equity at issuance is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. If the fixed-for-fixed criterion is not met, the conversion option classified as a financial liability derivative at recognition is measured using a pricing model. Upon and in case of reclassification to equity when the fixed-for-fixed criterion is met at a later date, the conversion option is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. The debt host contract is measured as the difference between the proceeds from the bond and the value of the conversion option at initial recognition. This debt host contract is subsequently measured at amortized cost. Direct costs associated with the issue of the convertible bonds are allocated to the debt host contract and the conversion option in amounts proportional to the allocation of the gross proceeds. They are accounted for respectively in the amortized cost (debt host contract) and in equity (conversion option meeting fixed-for-fixed criterion at initial recognition), or in the income statement (conversion option not meeting fixed-for-fixed criterion at initial recognition). Pharming Group N.V. Annual Report 2024 | 118 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements In the case the Company extinguishes the convertible bond before maturity through an early redemption or repurchase, the difference between the carrying amount of the debt host contract (or part of the debt host contract) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, will be recognized in the income statement. Provisions Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). The expense relating to any provision is presented in the statement of income net of any reimbursement. Trade and other payables Trade and other payables are initially recognized at fair value. Subsequent measurement is at amortized cost using the effective interest method. Revenue recognition In order to determine when to recognize revenue and at what amount, the Company applies the following five steps, based on transfer of control over goods to the customer: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract. Performance obligations are promises in a contract to transfer to a customer goods that are distinct; 3. Determine the transaction price. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. If the consideration promised in a contract includes a variable amount, an entity must estimate the amount of consideration to which it expects to be entitled in exchange for transferring the promised goods or services to a customer; 4. Allocate the transaction price to each performance obligation on the basis of the relative stand- alone selling prices of each distinct good or service promised in the contract; and 5. Recognize revenue when a performance obligation is satisfied by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). A performance obligation may be satisfied at a point in time (typically for promises to transfer goods to a customer) or over time (typically for promises to transfer services to a customer). For a performance obligation satisfied over time, an entity would select an appropriate measure of progress to determine how much revenue should be recognized as the performance obligation is satisfied. All of the Group's revenue from contracts with customers is derived from delivery of goods, specifically pharmaceutical products. The Group does not provide any additional services (including financing services) or equipment to its customers. In accordance with IFRS 15, revenue is recognized when the customer obtains control of the goods. For the Group's contracts the customer usually obtains control immediately after shipment of the product, which arrives at the customer within a short time frame. The vast majority of the Group's contracts for revenue with customers are subject to chargebacks, discounts and/or rebates relating directly to customers or to ultimate reimbursement claims from government or insurance payers. These are accounted for on an estimated net basis, with any actual discounts and rebates used to refine the estimates in due course. These variable elements are deducted from revenue in the same period as the related sales are recorded. Due to the nature of these variable elements, it is not practicable to give meaningful sensitivity estimates due to the large volume of variables that contribute to the overall discounts, rebates and chargebacks accruals. Other income Other income consists of gains upon sale of investments, income from government grants and gain on the sale of the Rare Pediatric Disease Priority Review Voucher (PRV). Pharming receives certain grants which support the Company's research efforts in defined research and development projects. These subsidies generally provide for reimbursement of approved costs incurred as defined in various grants. Subsidies are recognized if the Company can demonstrate it has complied with all attached conditions and it is probable that the grant amount will be received. Grants are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes as expenses the related costs for which the grants are intended to compensate. The Company includes income from grants under other income in the statement of income in order to enable comparison of its statement of income with companies in the life sciences sector. Pharming was granted the PRV by the Food and Drug Administration (FDA) in March 2023 in connection with the approval of Joenja®. The sale price was a contractually defined sales price pursuant to the terms of the August 2019 exclusive license agreement between Pharming and Novartis for leniolisib. The Board of Directors made an assessment on the classification of this Pharming Group N.V. Annual Report 2024 | 119 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements transaction, taking into account the requirements in IAS 1 and concluded that it is most appropriate to classify the transaction in Other income. Pension plan For all Dutch employees, the Company participates in defined contribution pension plans with an independent insurance company. Defined contributions are expensed in the year in which the related employee services are rendered. Employees in the United States are enabled to participate in a 401k plan, which also qualifies as a defined contribution plan. To become an eligible participant, an employee must complete 6 months of service and attain the age of 18 years. The employer matches 100% of the first 3% the employee contributes to their 401k plan and 50% of any amount over 3% up to 5%. Any employee contribution over 5% is not matched. Costs of the 401k plan are expensed in the year in which the related employee services are rendered. Share-based payment The costs of option plans are measured by reference to the fair value of the options on the date on which the options are granted. The fair value is determined using the Black-Scholes model. The costs of these options are recognized in the income statement (share-based compensation) during the vesting period, together with a corresponding increase in equity (other reserves). If required, the estimate of the number of equity instruments expected to vest is revised on a yearly basis. The impact of this revision is reflected in the statement of profit and loss (other operating costs) and statement of other comprehensive income. Share-based payment charges do not affect liabilities or cash flows in the year of expense since all transactions are equity-settled. Pharming's employee option plan states that an employee is entitled to exercise the vested options within five years after the date of the grant. The period in which the options become unconditional is defined as the vesting period. Long Term Incentive Plan For a limited number of board members and officers, performance shares are granted free of charge. A maximum number of predetermined shares vest three years after the grant date, provided that the participant to the long-term incentive plan is still in service (continued employment condition), with actual shares to be transferred based on the relative achievement of Pharming's share price compared to a peer group. The maximum number of shares immediately vests upon a change of control. The fair value is determined using Monte Carlo simulation. The costs of the LTIP are recognized in the income statement during the vesting period. The fair value at the grant date includes the market performance condition (relative total shareholder return performance) but excludes the three-year service condition. The performance includes Total Shareholder Return (40% weighing) and achievement of long-term strategy-oriented objectives (60% weighing). The Total Shareholders Return is compared to a peer group. The shares granted to the Executive Director under the LTIP, will vest in 3 years after the grant date, subject to the achievement of targets for a three-year performance period, their relative weightings and the pay-out limits. All shares will be subject to a retention period of 5 years from the date of grant. In order to fully become entitled to the shares vesting under the LTI conditions the participant must be a member of the Board of Directors as Executive Board Member at the vesting date. The costs of the LTIP are recognized in the income statement during the vesting period. Restricted Stock Unit Plan For a limited number of board members and officers, restricted stock units are granted free of charge. A maximum number of predetermined shares vest four years after the grant date, provided that the participant to the long-term incentive plan is still in service (continued employment condition). The fair value is determined to be the market price at the grant date. The costs of the RSU grant are recognized in the income statement during the vesting period. Leases The Group assesses whether a contract is or contains a lease at the inception of the contract. The Group recognizes a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is a lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which the economic benefits from the leased assets are consumed. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Pharming Group N.V. Annual Report 2024 | 120 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Lease payments included in the measurement of the lease liability comprise: • Fixed lease payments. • Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date. The lease liability is presented as a separate line in the consolidated balance sheet. The lease liability is subsequently measured by increasing the carrying amount to reflect the interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Group remeasures the lease liability (and makes a corresponding adjustment to the related right- of-use asset) whenever: • The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. • The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which case the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used). • A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of modification. The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognized and measured under IAS 37. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use, unless those costs are incurred to produce inventories. Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. The right-of-use assets are presented as a separate line in the consolidated balance sheet. The Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in the 'Property, Plant and Equipment' policy. Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability. The related payments are recognized as an expense in the period in which the event or condition triggers those payments occur. As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. For contracts that contain lease components and one or more additional lease or non-lease components, the Group allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non- lease components. The Group has not used this practical expedient. Income tax The income tax expense or credit for the period is the tax payable on the current period's taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. The Board of Directors periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate based on amounts expected to be paid to the tax authorities. Deferred income tax is provided in full, using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined using tax rates that have been enacted or Pharming Group N.V. Annual Report 2024 | 121 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized, or the deferred income tax liability is settled. Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to use those temporary differences and losses. The Company has assessed all its income tax amounts and provisions in the light of IFRIC 23 'Accounting for Uncertain Income Taxes', and has concluded that it is probable that its particular tax treatment will be accepted in all relevant jurisdictions and thus it has determined taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment included in its income tax filings. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. Earnings per share Basic earnings per share are calculated based on the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share are computed based on the weighted average number of ordinary shares outstanding including the dilutive effect of shares to be issued in the future under certain arrangements such as option plans and convertible loan agreements. 2.5 Material accounting judgements and estimates The preparation of financial statements requires judgments and estimates that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements. The resulting accounting estimates will, by definition, seldom equal the related actual results. The main estimates and assumptions that have a risk of causing an adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. Judgements: Biological Assets Under IAS 41 "Agriculture", the Board of Directors is required to assess whether 'biological assets' which are contributing to production of our cash flows should be accounted for as assets. The Board of Directors has assessed Pharming's biological assets and conclude that these do not qualify to be recognized under the relevant standard IAS 41 "Agriculture" due to their uniqueness and very special transgenic nature and thus all relevant costs are expensed through the income statement. Estimates: Revenue - U.S. Revenue Rebate Accruals Revenue is recognized when control has been transferred to the customer. Revenue is reduced by chargebacks and rebates for government healthcare programs, discounts to specialty pharmacies and wholesalers, and product returns given or expected to be given, which vary by patient groups. Chargebacks and rebates for healthcare programs depend upon the submission of claims sometime after the initial recognition of the sale. The liability for this variable consideration is made, at the time of sale, for the estimated chargebacks and rebates, mainly U.S. Medicaid, based on available market information and historical experience. Because the amounts are estimated they may not fully reflect the final outcome, and the amounts are subject to change dependent upon, amongst other things, the types of patient groups. The level of these liabilities is being reviewed and adjusted regularly in the light of contractual and legal obligations, historical charges and trends, past experience and projected mixtures of patient groups. The Group acquires this information from both internal resources and external parties. Future events could cause the assumptions on which the accruals are based to change, which could affect the future results of the Group. More information around accruals for rebates and discounts can be found in note 21 of the notes to the consolidated financial statements. 3. Going concern assessment In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. These consolidated financial statements have been prepared for the Group as a going concern. The 2024 year-end balance of cash and cash equivalents, restricted cash and marketable securities of US$169.4 million is expected to fund the Company for more than twelve months from the date of this report. Following the approval of Joenja® (leniolisib) by the U.S. FDA in March 2023, and the U.K. MHRA in September 2024, the Company has increased investments in strengthening the organization and marketing and sales activities. The Board of Directors anticipates further investments in the preparations for the launch and commercialization of leniolisib in other key global launch markets in 2025. In addition, following the acquisition of Abliva AB in the first quarter of 2025, the overall cash position has decreased and additional investments in the acquired pipeline are expected. Pharming Group N.V. Annual Report 2024 | 122 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements These investments will have a negative effect on the result in the year 2025. Consequently, cash and cash equivalents, restricted cash and marketable securities may reduce during the year as the company invests in its future. The company remains confident in the robustness of RUCONEST® sales, growth and expansion of Joenja® sales and the expansion of its pipeline. Presently, however, no further assurance can be given on either the timing or size of future profits. In addition, in the event that the Company needs to raise capital by issuing additional shares, shareholders' equity interests may be diluted as to voting power, and their interests as to value will depend on the price at which such issues are made. The Company sees no further need to raise capital to support its current operations, but may take an opportunity to do so in either equity issue or through an expansion of the current convertible debt or to raise debt, or through a combination of such instruments, to support an acquisition or in-licensing of additional assets, if appropriate terms can be obtained that are in the best interests of shareholders. Macro-economic developments like pressure on energy supply, increased inflation and higher interest rates have an impact on Pharming and are managed by price increases on our products in line with CPI development and fixed interest on our convertible bond. Overall, based on the outcome of this assessment, Pharming's 2024 financial statements have been drawn up on the basis of a going concern assumption. Notwithstanding their belief and confidence that Pharming will be able to continue as a going concern, the Executive Directors and Officers emphasize that the actual cash flows may potentially ultimately deviate up or down from our projections to various reasons. In the absence of an (improbable) absolute catastrophe such as banning of the product from sale in a major market, the Executive Directors and Officers believe that the Company will have more than sufficient resources to meet all obligations as they fall due. 4. Segment information Operating segments are components of the Company that engage in business activities from which it may incur expenses, for which discrete financial information is available and whose operating results are evaluated regularly by the Company's Chief Operating Decision Maker ("CODM") to make decisions about resources to be allocated to the segment and assess its performance. The Executive Members of the Board of Directors are considered the CODM. CODM reviews the Company's results under four operating segments based on a combination of the products that the Company has launched - RUCONEST® and Joenja®, and the main geographies where sales are consummated - focused on the U.S. and reporting, in aggregate, Europe and Rest of the World ("RoW"). The four operating segments correspond to each of its four reportable segments for financial reporting purposes. The CODM reviews revenues and gross profit to assess the performance of their operating segments. The CODM does not review financial information on a segmental basis below gross margin, and balance sheet information is not allocated to the company's reportable segments. There are no intersegment sales. Total revenues and gross profit per each operating and reportable segment for the period ended for the years ended December 31, 2024 and 2023 are: Amounts in US$ ‘000 2024 2023 RUCONEST® Joenja® Total RUCONEST® Joenja® Total Revenues: US 246,649 40,500 287,149 221,213 17,894 239,107 Europe and RoW 5,590 4,461 10,051 5,921 288 6,209 Total revenues 252,239 44,961 297,200 227,134 18,182 245,316 Gross profit: US 221,093 35,136 256,229 202,441 15,417 217,858 Europe and RoW 1,126 4,446 5,572 2,026 220 2,246 Total gross profit 222,219 39,582 261,801 204,467 15,637 220,104 Substantially all of the Company's non-current assets are located in The Netherlands. Pharming Group N.V. Annual Report 2024 | 123 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements 5. Revenues The increase in revenues was driven by higher sales of RUCONEST® in the U.S. market (US$246.6 million in 2024 compared to US$221.2 million in 2023) and higher sales of Joenja® worldwide (US$45.0 million in 2024 compared to US$18.2 million in 2023). Revenues of RUCONEST® in Europe and Rest of World amounted to US$5.6 million in 2024 compared to US$5.9 million in 2023. Revenues of Joenja® in Europe and Rest of World is revenue through Named Patient Programs and amounted to US$4.5 million in 2024 compared to US$0.3 million in 2023. Two U.S. customers represent approximately US$227.7 million (77%) of our net revenues in 2024, per customer US$134.8 million and US$92.9 million respectively. In 2023 these two, U.S. customers represent approximately US$204.3 million (83%) of our net revenues, per customer US$108.4 million and US$95.9 million respectively. These customers are specialty wholesale companies that are specialized in distribution of pharmaceuticals in our and competitors' disease area and distribute our product. 6. Other income Other income related to the following: Amounts in US$ ‘000 2024 2023 Grants 2,106 1,784 Proceeds from PRV sale — 21,279 Other 71 286 Total 2,177 23,349 The received grants amounted to US$2.1 million in 2024 (US$1.8 million in 2023). The grants are annual payroll-tax reimbursement granted by the Dutch and French governments for research and development activities actually conducted by the Company in those countries. In June 2023, Pharming announced that it had entered into a definitive agreement to sell its Rare Pediatric Disease Priority Review Voucher (PRV) to Novartis for a one-time payment of US$21.3 million. Pharming was granted the PRV by the FDA in March 2023 in connection with the approval of Joenja®. The sale price was a contractually defined percentage of the PRV value pursuant to the terms of the August 2019 exclusive license agreement between Pharming and Novartis for leniolisib. 7. Expenses by nature Costs of sales Costs of sales in 2024 and 2023 were as follows: Amounts in US$ ‘000 2024 2023 Cost of inventories recognized as expenses (25,645) (21,404) Royalty fees (4,907) (2,145) Obsolete inventory impairments (4,847) (1,663) Total (35,399) (25,212) Pharming expensed royalty fees to Novartis on Joenja® sales, amounting to US$4.9 million in 2024 (2023: US$2.1 million). See note 25. Commitments and contingencies for further information on the royalty fees to Novartis. Obsolete inventory impairment stems from the valuation of the inventories against lower net realizable value and mainly relates to products no longer eligible for commercial sales. Impairments related to inventories designated for commercial activities amounted to a charge of US$4.8 million in 2024 (2023: US$1.7 million). Costs of research and development Research and development costs are specified as follows: Amounts in US$ ‘000 2024 2023 Employee costs (29,869) (26,830) Amortization costs intangible assets (232) (218) Impairment losses intangible assets — (253) Depreciation Property, plant and equipment and right of use assets (1,449) (1,636) Direct Operating Expenses (47,232) (36,226) Other indirect research and development costs (4,365) (3,751) Total research and development costs (83,147) (68,914) As percentage of net sales (28)% (28)% Pharming Group N.V. Annual Report 2024 | 124 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Operating expenses for research and development activities increased to US$83.1 million in 2024 from US$68.9 million in 2023. The increase in costs mainly relates to current year's spend in research in leniolisib for the treatment of activated phosphoinositide 3-kinase delta (PI3Kδ) syndrome (APDS) for patients under 12 years old, research on the use of leniolisib for additional primary immunodeficiencies (PIDs) beyond APDS and costs relating to activities in EU and the rest of the world for the purpose of receiving regulatory approval to commercialize Joenja® for APDS. Primarily due to these activities, both the direct operating expenses and the employee costs have increased in 2024. Costs of general and administrative activities General and administrative costs are specified as follows: Amounts in US$ ‘000 2024 2023 Employee costs (25,526) (21,216) Amortization costs IFA (617) (650) Depreciation PPE and right of use assets (2,926) (3,118) Impairment losses PPE and right of use assets (5,027) (4,663) Direct Operating Expenses (18,790) (11,240) Other indirect general and administrative costs (17,764) (14,990) Total general and administrative costs (70,650) (55,877) As percentage of net sales (24)% (23)% Operating expenses for general and administrative activities increased to US$70.7 million in 2024 from US$55.9 million in 2023. The increased employee costs are mainly related to more staff employed following the growth of the organization. Direct operating expenses mainly increased due to one-off costs relating to the public cash offer to the shareholders of Abliva AB to acquire all issued and outstanding shares of Abliva AB, additional costs for (internal) audits and a general increase due to business growth. Other indirect general and administrative costs mainly increased due to additional contractor and consultant costs required for growth in the internal organization. Furthermore, during 2024, we've recognized an additional impairment loss relating to impaired assets in connection with our cancelled downstream production capacity at Pivot Park in Oss, the Netherlands. Costs of marketing and sales activities Marketing and sales costs are specified as follows: Amounts in US$ ‘000 2024 2023 Employee costs (48,791) (44,478) Amortization costs intangible assets (5,424) (4,985) Depreciation PPE and right of use assets (394) (403) Direct Operating Expenses (57,058) (67,366) Other indirect marketing and sales costs (7,135) (6,817) Total marketing and sales costs (118,802) (124,049) As percentage of net sales (40)% (51)% Operating expenses for marketing and sales decreased in 2024 to US$118.8 million from US$124.0 million in 2023. In 2023, Pharming had paid US$10.4 million in Development and Regulatory Milestone payments as a result of the first commercial sale of Joenja® in 2023, which was recorded as direct operating expenses. See note 25. Commitments and contingencies for more information on the leniolisib milestone commitments. Excluding the one-off milestone payment in 2023, the marketing and sales expenses increased, mainly due to the further expansion of the commercial organization and infrastructure in the U.S., Europe and other key global launch markets, in view of the U.S. FDA approval in March 2023, the U.K. MHRA approval in September 2024, and the anticipated approval by other regulatory authorities in 2025 and beyond. Employee benefits Amounts in US$ ‘000 2024 2023 Salaries (80,026) (71,690) Social security costs (9,278) (8,604) Pension costs (3,629) (2,980) Share-based compensation (11,253) (9,251) Total (104,186) (92,525) Salaries include holiday allowances and cash bonuses for staff. Pharming Group N.V. Annual Report 2024 | 125 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Employee benefits are included in: Amounts in US$ ‘000 2024 2023 Research and development (29,869) (26,830) General and administrative (25,526) (21,216) Marketing and sales (48,791) (44,479) Total (104,186) (92,525) The number of employees Average full time equivalent 2024 2023 Research and development 129 131 General and administrative 125 104 Marketing and sales 109 100 Production 41 47 Total 404 382 The average number of full time equivalents (FTEs) working outside the Netherlands was 196 (2023: 181). The increase of the total number of FTEs was in line with the overall business growth across the Company. Employee benefits of production related FTEs have been included in the value of inventories. Employee benefits are charged to research and development costs, general and administrative costs, or marketing and sales costs based on the nature of the services provided by each employee. Depreciation and amortization charges Amounts in US$ ‘000 notes 2024 2023 Property, plant and equipment 11 (1,395) (1,494) Intangible assets 10 (6,273) (5,852) Right of use assets 12 (3,374) (3,664) Total (11,042) (11,010) The variances in depreciation charges and amortization charges in 2024 as compared to 2023 mainly stems increased amortization of intangible assets our Joenja® license subsequent to the FDA approval in March 2023, after which amortization started. In 2024, a full year of amortization is applicable. Depreciation of Right of use assets decreased due to the impairments taken on our DSP facility in Oss, the Netherlands. Independent auditor's fees Both the 2024 and the 2023 audit were performed by Deloitte Accountants B.V. Amounts in US$ ‘000 2024 2023 Audit Fees (1,690) (1,328) Audit Related Fees — — Tax advisory — — Total (1,690) (1,328) 8. Other finance income and expenses Amounts in US$ ‘000 2024 2023 Interest income 4,858 3,663 Foreign currency gains 1,985 — Other finance income 6,843 3,663 Amortization and interest on convertible bonds (7,699) (4,876) Fees and expenses on repayment and issuance convertible bonds (1,151) — Interest leases (1,038) (1,088) Foreign currency losses — (2,971) Other finance expenses (56) (134) Other finance expenses (9,944) (9,069) Total other finance income and expenses (3,101) (5,406) Interest income Since 2023, the Company has used excess cash to invest in euro denominated readily convertible S&P AAA-rated government treasury certificates with a maturity of six months or less from the date of acquisition. Since 2024, excess cash has also been used to invest in money market funds. As a result of these purchases, the interest income has increased compared to 2023. Reference is made to note 14. Marketable securities for more information on these investments. Pharming Group N.V. Annual Report 2024 | 126 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Foreign currency results These results primarily follow from the revaluation of bank balances which are denominated in foreign currencies, mainly but not exclusively in U.S. dollars, and the timing of foreign currency payments against the actual exchange rate as compared to the original exchange rate applied upon the charge of fees or expenses. The gains in 2024 are mainly a result of the revaluation of monetary items in U.S. dollars, incorporated in the Dutch entities where the functional currency is euro. Expenses on convertible bonds Amortization and interest on convertible bonds in 2024 and 2023 relate to the amortized costs and coupons on the convertible bonds as disclosed in note 19. Convertible bonds. The amortized costs are calculated at the effective rate of interest, which takes account of any equity component on recognition such as early repayment options. The fees and expenses on repayment and issuance of the convertible bonds relate to the premium paid over the current carrying amount upon repayment and to the direct costs allocated to the conversion option as disclosed in note 19. Convertible bonds. 9. Income tax Income taxes on ordinary activities The following table specifies the current and deferred tax components of income taxes in the income statement: Amounts in US$ ‘000 2024 2023 Income tax credit (expense) Current tax Current tax on profit or loss for the year (9,287) (5,343) Adjustments for current tax of prior periods 315 241 Total current tax expense (8,972) (5,102) Deferred income tax Deferred tax on profit or loss for the year 7,469 6,639 Adjustments for deferred tax of prior periods (1,846) (73) Total deferred tax credit (expense) 5,623 6,566 Income tax credit (expense) (3,349) 1,464 Effective income tax rate Pharming Group's effective rate in its consolidated income statement differed from the Netherlands' statutory tax rate of 25.8%. The following table reconciles the tax credit (expense) at the statutory rate to actual credit (expense) for the year in the consolidated income statement: Amounts in US$ ‘000 2024 ETR % 2023 ETR % Reconciliation of tax charge Profit, (loss) before taxation (8,492) (12,012) Profit/(loss) multiplied by standard rate of tax in The Netherlands 2,190 25.8% 3,099 — Effects of: Tax rate in other jurisdictions 999 11.8% 1,123 9.4% Non-taxable income 657 7.7% 6 0.1% Non deductible expenses (1,527) (18.0)% (266) (2.2)% Share based payments (2,510) (29.6)% (2,022) (16.8)% Adjustments of prior periods (1,531) (18.0)% 168 1.4% Change in statutory applicable tax rate — — (De)recognition of deferred tax assets (333) (3.9)% — U.S. State taxes and other (1,294) (15.2)% (644) (5.4)% Income tax credit (expense) for the year (3,349) (39.4)% 1,464 12.2% Factors affecting current and future tax charges The primary difference between the nominal and the effective tax for 2024 stems from U.S. profits being taxed at a combined Federal and State tax rate of 27.96%, while a portion of the losses in the Netherlands does not result in an offsetting tax credit due to being partially attributable to non- deductible expenses. Pharming Group N.V. Annual Report 2024 | 127 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Deferred tax The balance of the net deferred tax assets/(liabilities) is therefore shown below: Amounts in US$ ‘000 2024 2023 Total deferred tax assets 41,923 37,863 Total deferred tax liabilities (11,379) (8,102) Total net deferred tax assets (liabilities) 30,544 29,761 The deferred tax assets and liabilities are offset to the extent there is a legally enforceable right to set off current tax assets against current tax liabilities and to the extent the intention exists to settle on a net basis or realize the asset and settle the liability simultaneously. The significant components and annual movements of deferred income tax assets as of December 31, 2024, and December 31, 2023, are as follows: Amounts in US$ ‘000 2024 2023 Intangible assets 3,289 2,183 Accruals 4,015 4,151 Lease liabilities 6,292 7,063 Unrealized profit in inventory 10,498 8,453 Other 5,923 3,484 Tax losses 11,906 12,529 Total deferred tax assets 41,923 37,863 Amounts in US$ ‘000 Intangible assets Lease liabilities Accruals Unrealized profit in inventory Other Tax losses Total At January 1, 2023 9,876 7,042 2,026 3,176 3,545 3,546 29,211 (Charged)/credited - to profit or loss (7,806) (177) 2,103 5,077 566 8,702 8,465 - other movement — (19) 22 — (192) — (189) - to accumulated deficit — — — — (457) — (457) - currency translation 113 217 — 200 22 281 833 At December 31, 2023 2,183 7,063 4,151 8,453 3,484 12,529 37,863 (Charged)/credited - to profit or loss 1,107 (371) (133) 1,811 3,076 (416) 5,074 - other movement — — — — — — — - to accumulated deficit — — — 847 (626) 540 761 - currency translation (1) (400) (3) (613) (11) (747) (1,775) At December 31, 2024 3,289 6,292 4,015 10,498 5,923 11,906 41,923 Based upon the Company's latest budget for 2025 and its long-range forecasts for the five years thereafter, it is considered probable that there will be sufficient taxable profits in the future to realize the deferred tax assets, and therefore these assets should continue to be recognized in these financial statements. Accruals represent deferred tax assets recognized for temporary differences between the carrying amount and tax bases of accrued liabilities in the U.S. The increase in the deferred tax for other is primarily due to an increase of the deferred tax asset related to inventory impairments in the U.S. The unused tax losses were incurred by the Dutch fiscal unity and Pharming Healthcare. Pharming Group N.V. Annual Report 2024 | 128 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements The calculation of the deferred tax asset is as shown below: Amounts in US$ ‘000 2024 2023 Net Operating Losses - Netherlands Net Operating Losses at year-end 46,143 48,490 Portion selected for deferred tax asset 46,143 48,490 Tax rates used: 2024 and later: 25.8% (2023: 25.8%) 11,905 12,511 Total tax effect Netherlands 11,905 12,511 Net Operating Losses - U.S. Net Operating Losses at year-end 17 260 Portion selected for deferred tax asset 17 260 Tax rate used: 2024 and later: 7.26% (2023: 7.26%) 1 19 Total tax effect U.S. 1 19 Tax effect Netherlands - losses deferred 11,905 12,511 Tax effect U.S. - losses deferred 1 18 Total deferred tax asset 11,906 12,529 The current part of the net deferred tax assets is US$11.9 million (2023: US$10.5 million). The component and annual movement of deferred income tax liabilities as of December 31, 2024, and December 31, 2023, are as follows: Amounts in US$ ‘000 2024 2023 Tangible fixed assets (2,916) (4,865) Convertible bonds (5,067) — Other liabilities (3,396) (3,237) Total deferred tax liabilities (11,379) (8,102) Amounts in US$ ‘000 Tangible fixed assets Convertible bonds Other liabilities Total At January 1, 2023 (6,238) — — (6,238) (Charged)/credited - to profit or loss 1,516 — (3,414) (1,898) - other movement 13 — 178 191 - to other comprehensive income — — — — - currency translation (156) — (1) (157) At December 31, 2023 (4,865) — (3,237) (8,102) (Charged)/credited - to profit or loss 1,749 (1,038) (160) 551 - other movement — — — — - to other comprehensive income — (4,251) — (4,251) - currency translation 200 222 1 423 At December 31, 2024 (2,916) (5,067) (3,396) (11,379) Pharming Group N.V. Annual Report 2024 | 129 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements 10. Intangible assets Amounts in US$ ‘000 RUCONEST® for HAE (EU) Development costs RUCONEST® licenses Joenja® license Software Total At cost 563 250 67,583 23,703 4,621 96,720 Accumulated: Amortization charges (563) — (20,054) — (982) (21,599) Carrying value at January 1, 2023 — 250 47,529 23,703 3,639 75,121 Amortization charges — — (3,681) (1,300) (884) (5,865) Impairment charges — (253) — — — (253) Assets acquired — — — — 27 27 Divestments - cost — (253) — — (18) (271) Divestment - accumulated amortization — — — — 12 12 Divestment - impairment charges — 253 — — — 253 Currency translation - cost 18 3 2,126 744 142 3,033 Currency translation - amortization (18) — (702) (26) (44) (790) Movement 2023 (250) (2,257) (582) (765) (3,854) At cost 581 — 69,709 24,447 4,772 99,509 Accumulated: Amortization charges (581) — (24,437) (1,326) (1,898) (28,242) Carrying value at December 31, 2023 — — 45,272 23,121 2,874 71,267 At cost 581 — 69,709 24,447 4,772 99,509 Accumulated: Amortization charges (581) — (24,437) (1,326) (1,898) (28,242) Carrying value at January 1, 2024 — — 45,272 23,121 2,874 71,267 Amortization charges — — (3,686) (1,735) (852) (6,273) Impairment charges — — — — — — Assets acquired — — — — 6 6 Divestments - cost (570) — — — — (570) Divestment - accumulated amortization 570 — — — — 570 Divestment - impairment charges — — — — — — Currency translation - cost (11) — (4,131) (1,449) (283) (5,874) Currency translation - amortization 11 — 1,603 151 148 1,913 Movement 2024 — — (6,214) (3,033) (981) (10,228) At cost — — 65,578 22,998 4,495 93,071 Accumulated: Amortization charges — — (26,520) (2,910) (2,602) (32,032) Carrying value at December 31, 2024 — — 39,058 20,088 1,893 61,039 Pharming Group N.V. Annual Report 2024 | 130 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Category Description Amortization period Total Remaining RUCONEST® for HAE (EU) RUCONEST® for HAE (EU) development costs 10 years Fully amortized RUCONEST® license RUCONEST® license for HAE (US) 20 years 12 years RUCONEST® license RUCONEST® license for HAE (EU) 12 years 7 years Joenja® license Joenja® license for APDS 14 years 12 years Software Software development costs 3 to 5 years 1 to 5 years RUCONEST® for HAE (EU) The Company has capitalized development costs in relation to RUCONEST® for HAE in the European Union. Following market launch of the product in 2010 the amortization of the asset started, and no further development costs have been capitalized in respect to this item since then. These development costs are fully amortized since the end of 2021. Development costs During 2023, the Company decided to discontinue the Pompe disease program and therefore impaired and disposed the remaining assets related to the development costs for alpha-glucosidase for Pompe disease. RUCONEST® license The RUCONEST® license relates to the RUCONEST® acquisition of all North American commercialization rights from Bausch Health in 2016 and the RUCONEST® acquisition of all European commercialization and distribution rights from Swedish Orphan International AB ("Sobi") in 2020. Joenja® license In August 2019, Pharming entered into a development collaboration and license agreement with Novartis to develop and commercialize leniolisib, a small molecule phosphoinositide 3-kinase delta (PI3Kδ) inhibitor being developed by Novartis to treat patients with activated phosphoinositide 3-kinase delta syndrome (APDS). Following FDA approval per March 24, 2023, the amortization of the Joenja® license commenced. Since 2023, no additional development costs were capitalized. Software Amortization of software is mainly related to the ERP system SAP S/4HANA. Pharming Group N.V. Annual Report 2024 | 131 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements 11. Property, plant and equipment Amounts in US$ ‘000 Operational facilities Leasehold Improvement Machinery and equipment Other Asset under construction Total At cost 4,659 5,282 8,278 4,691 6 22,916 Accumulated depreciation (2,866) (2,108) (4,915) (2,635) — (12,524) Carrying value at January 1, 2023 1,793 3,174 3,363 2,056 6 10,392 Investments 32 60 682 488 175 1,437 Internal transfer - cost — — — 6 (6) — Internal transfer - accumulated depreciation — — — — — — Other - cost 74 60 432 — — 566 Other - accumulated depreciation (59) (59) (434) — — (552) Divestments — (14) (11) (120) — (145) Depreciation charges (365) (258) (860) (919) — (2,402) Depreciation of disinvestment — 8 6 120 — 134 Currency translation - cost 148 158 279 66 4 655 Currency translation - accumulated depreciation (98) (70) (183) (45) — (396) Movement 2023 (268) (115) (89) (404) 173 (703) At cost 4,913 5,546 9,660 5,131 179 25,429 Accumulated depreciation (3,388) (2,487) (6,386) (3,479) — (15,740) Carrying value at December 31, 2023 1,525 3,059 3,274 1,652 179 9,689 Pharming Group N.V. Annual Report 2024 | 132 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Amounts in US$ ‘000 Operational facilities Leasehold Improvement Machinery and equipment Other Asset under construction Total At cost 4,913 5,546 9,660 5,131 179 25,429 Accumulated depreciation (3,388) (2,487) (6,386) (3,479) — (15,740) Carrying value at January 1, 2024 1,525 3,059 3,274 1,652 179 9,689 Investments — 197 219 230 144 790 Internal transfer - cost — — — 175 (175) — Internal transfer - accumulated depreciation — — — — — — Other - cost — — — — — — Other - accumulated depreciation — — — — — — Divestments — — — — — — Depreciation charges (355) (266) (756) (900) — (2,277) Depreciation of disinvestment — — — — — — Currency translation - cost (291) (311) (582) (152) (3) (1,339) Currency translation - accumulated depreciation 216 148 410 115 — 889 Movement 2024 (430) (232) (709) (532) (34) (1,937) At cost 4,622 5,432 9,297 5,384 145 24,880 Accumulated depreciation (3,527) (2,605) (6,732) (4,264) — (17,128) Carrying value at December 31, 2024 1,095 2,827 2,565 1,120 145 7,752 Category Depreciation period Operational facilities 10-20 years Leasehold improvements 5-15 years Machinery and equipment 5-10 years Other property, plant & equipment 5-10 years In 2024, the Company had capital expenditures of US$0.8 million (2023: US$1.4 million), mainly related to new machinery and equipment. Depreciation charges on production related property, plant and equipment of US$0.8 million in 2024 (2023 : US$0.9 million) have been included in the value of inventories and an amount of US$1.5 million of the total 2024 depreciation costs has been charged to the statement of income (2023: US$1.5 million). Pharming Group N.V. Annual Report 2024 | 133 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements 12. Right-of-use assets This note provides information for leases where the Group is a lessee. The balance sheet shows the following amounts relating to leases: Amounts in US$ ‘000 Buildings Cars Total At cost 32,884 3,334 36,218 Accumulated depreciation (6,185) (1,280) (7,465) Carrying value at January 1, 2023 26,699 2,054 28,753 Additions — 1,413 1,413 Remeasurement 1,865 — 1,865 Divestments — (756) (756) Depreciation charges (2,913) (1,289) (4,202) Depreciation of disinvestment — 700 700 Impairment (4,663) — (4,663) Currency translation - cost 873 18 891 Currency translation - accumulated depreciation (213) (11) (224) Movement 2023 (5,051) 75 (4,976) At cost 30,959 4,009 34,968 Accumulated depreciation (9,311) (1,880) (11,191) Carrying value at December 31, 2023 21,648 2,129 23,777 Additions — 2,395 2,395 Remeasurement 338 — 338 Divestments (305) (1,694) (1,999) Depreciation charges (2,627) (1,280) (3,907) Depreciation of disinvestment 186 1,515 1,701 Impairment (5,027) — (5,027) Currency translation - cost (1,431) (41) (1,472) Currency translation - accumulated depreciation 557 19 576 Movement 2024 (8,309) 914 (7,395) At cost 24,534 4,669 29,203 Accumulated depreciation (11,195) (1,626) (12,821) Carrying value at December 31, 2024 13,339 3,043 16,382 During 2022, the lease for the DSP facility at Pivot Park in Oss, the Netherlands commenced and resulted in an investment of US$14.6 million. The intention for this facility was primarily to set up an independent production line, which was cancelled and the building remained empty and unused resulting in impairments for a total of US$8.6 million in 2022 and 2023. In 2024, Pharming entered into negotiations to terminate this lease. As a result, the Company has fully impaired the corresponding right-of-use asset, leading to an impairment expense of US$5.0 million as of December 31, 2024. The building remeasurement is related to adjustments in the existing right-of-use assets to account for inflation-related higher lease payments. The Company applies for the recognition exemption for short-term leases and lease of low-value assets. The respective lease payments are recorded in the consolidated statement of income and are immaterial to the financial statements. Amounts recognized in the statement of income Depreciation charges on production related right-of-use assets of US$0.5 million in 2024 (2023: US$0.5 million) have been included in the value of inventories and an amount of US$3.4 million of the total 2024 depreciation costs has been charged to the statement of income (2023: US$3.7 million). The statement of income shows the following amounts relating to leases: Amounts in US$ ‘000 2024 2023 Depreciation right of use buildings (2,094) (2,380) Impairment right of use buildings (5,027) (4,663) Depreciation right of use cars (1,280) (1,284) Interest expense (note 8) (1,038) (1,088) Total expense right of use assets (9,439) (9,415) Pharming Group N.V. Annual Report 2024 | 134 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Lease charges The non-cancellable leases at December 31, 2024, have remaining terms of between one and thirteen years and generally include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions. The expected lease charges after the end of the reporting year have been disclosed in note 26. Financial risk management. Allocations of the lease charges to cost of sales or general and administrative expenses have been based on the nature of the asset in use. 13. Investments 13.1 Investments accounted for using the equity method The investment in BioConnection group (BioConnection) announced in April 2019 provides the Company with significant influence over BioConnection, and as such has been treated as an associate of the Group. As at December 31, 2024, the asset relates to an investment in the ordinary shares of BioConnection Investments B.V. During the second quarter of 2022, Pharming entered into a share purchase agreement, following receipt of an offer for all shares in BioConnection by Gimv, a European investment company listed on Euronext Brussels. The existing shareholders (including Pharming) reached agreement with Gimv on the sale of all issued and outstanding shares to a new holding company (BioConnection Investments B.V.) incorporated by Gimv, followed by a partial re-investment by existing shareholders of the purchase price in the share capital of BioConnection Investments B.V. The re-investment relates to the purchase of ordinary shares and a preference share. The transaction diluted Pharming's stake in this investment from 43.85% in 2021 to 23.60% in 2022. The Company made an assessment on the accounting treatment of the agreement and concluded that the sale of the BioConnection ordinary shares and purchase of the BioConnection Investments B.V. ordinary shares shall be considered as a dilution of an existing equity stake in an investment accounted for using the equity method. Hence Pharming recognized the dilution of its equity stake as a reduction of the carrying amount of the investment accounted for using the equity method. The preference share is valued as an investment in debt instruments designated as at fair value with changes through profit and loss (FVTPL). Name of entity Place of business % of ownership interest Nature of relationship Measurement method 2024 2023 BioConnection Investments B.V. Oss, NL 23.60 23.60 Associate Equity Amounts in US$ ‘000 Carrying value at January 1, 2023 2,501 Share in net profit (loss) (289) Currency translation 73 Carrying value at December 31, 2023 2,285 Share in net profit (loss) (1,131) Impairment (629) Currency translation (59) Carrying value at December 31, 2024 466 In accordance with IAS 36, the Company reviewed the carrying value of the investment in BioConnection for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In 2024, based on a comprehensive review of the investee's performance, financial position, expected future cash flows and market conditions, the Company determined that an impairment is required. Basis to determine the impairment expense relates to the required fair value calculation for the relating investment in debt instruments designated at FVTPL (the preference share). This calculation relates to a discounted cash flow model for which more details can be found at note 13.2. The Company will continue to monitor the performance of this investee and assess whether additional impairments may be necessary in future periods, depending on changes in circumstances or the performance of the investee. Financial information of BioConnection Investments B.V. per December 31, 2023, is filed at the Dutch Chamber of Commerce under number 85610658 (www.kvk.nl). Pharming Group N.V. Annual Report 2024 | 135 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements The latest available financial information of BioConnection Investments B.V. as filed at the Dutch Chamber of Commerce, for the year 2023 is as follows (translated from euro to USD using the closing rate 2024 of 1.0350 for balance sheet positions and the average rate over 2024 of 1.0804 for the net result): Amounts in US$ ‘000 December 31, 2023 Total assets 61,727 Total equity 51,951 Net result (5,339) In the Board of Director's judgement, the investment in BioConnection constitutes an investment in an associated company and is therefore not consolidated, as Pharming has significant influence but does not have control of BioConnection and is embargoed by a shareholders agreement between the shareholders of BioConnection from influencing any activity between the two parties which is in any significant way different from the relationship which existed between the two prior to the investment. In 2024, the ownership of Pharming remains unchanged. As a result, there were no movements in the carrying value other than Pharming's share in net profit, incurred impairment expenses and currency translation effects. 13.2 Investment in debt instruments designated as at FVTPL The asset relates to the preference share as obtained as part of the agreement referred to above relating to BioConnection Investments B.V. The Board of Directors made an assessment on the accounting treatment of the preference share obtained. The Board of Directors concluded that the asset should be recognized as a financial asset (debt instrument) measured at initial recognition at fair value, subsequently measured at fair value through profit and loss. The fair value was calculated based on a commonly accepted valuation method, the option pricing model ("OPM"), which considers the share classes as call options on the total shareholders' equity value according to the rights and preferences of each class of equity. The payoff profile of the share classes was analyzed through a portfolio of call options, with the total equity value of a company as the underlying asset of the options and specific terms for each option calibrated to mirror, in aggregate, the payoff profile of the share classes. Relying on the forward-looking Black-Scholes-Merton ("BSM") financial instrument pricing framework, the OPM effectively captures the full range of potential outcomes for the share classes at exit. The OPM takes into consideration the full spectrum of risks in terms of future potential upside or downside but does not require explicit estimates of the possible future outcomes. The BSM model is commonly used to price assets on financial markets and allows to estimate the theoretical value of a call option, using six key parameters, namely the underlying equity value, strike price, time to maturity, risk free rate, expected volatility of the underlying equity and dividend yield on the underlying equity, which is a Level 3 input in terms of IFRS 13. Significant increases or decreases in equity value, volatility and time to maturity and below assumptions in isolation would result in a significantly lower or higher fair value assessment. The following assumptions were used in the BSM model to determine the fair value of the asset: 2024 2023 Expected time to maturity 4 years 4 years Volatility 50% 50% Risk-free interest rate 2.60% 1.99% The carrying amount of this investment has changed as follows: Amounts in US$ ‘000 2024 2023 January 1 6,093 6,827 Fair value changes (2,051) (930) Currency translation (275) 196 Balance at December 31 3,767 6,093 Sensitivity analysis To illustrate the exposure of the carrying value of the investment to further fair value movements as a result of changes in the economic environment, a sensitivity analysis of fair value has been prepared over the key drivers most affected by the current uncertainties. It is possible that there will be movements in these key inputs after December 31, 2024. While it is unlikely that these reported inputs would move in isolation, these sensitivities have been performed independently to illustrate the impact each individual input has on the reported fair value and they do not represent management's estimate at December 31, 2024. Pharming Group N.V. Annual Report 2024 | 136 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements The main assumptions in determination of the equity value are shown in below table: Preference share BioConnection (in million US$) Revenue level Fair value Discount rate Fair value EBITDA margin Fair value -10.0% 0.1 -2.0% 4.8 -5.0% 1.7 -5.0% 2.1 -1.0% 4.3 -2.5% 2.8 Base case 3.8 Base case 3.8 Base case 3.8 +5.0% 5.0 +1.0% 3.3 +2.5% 4.6 +10.0% 6.1 +2.0% 2.9 +5.0% 5.3 The impact of the remaining variables on the BSM model are shown in below table: Preference share BioConnection (in million US$) Time to maturity Fair value Volatility Fair value - 2 years 4.1 -10.0% 4.0 - 1 year 3.9 -5.0% 3.9 Base case 3.8 Base Case 3.8 + 1 year 3.6 +5.0% 3.6 + 2 years 3.5 +10.0% 3.4 13.3 Investments in equity instruments designated as at Fair Value Through Other Comprehensive Income At December 31, 2023, the Group held 0.54 percent of the ordinary share capital of Orchard Therapeutics Plc. (Orchard), a global gene therapy leader. On October 5, 2023, Orchard announced it had entered into a definitive agreement with Japanese company Kyowa Kirin Co., Ltd., for the acquisition of Orchard for US$16.00 per American Depositary Share (ADS) in cash plus an additional contingent value right (CVR) of US$1.00 per ADS (a total of US$17.00 per ADS). The transaction was successfully completed on 24 January 2024. In 2024, the Company also received the full amount for the CVR. Based on the total offer price of US$17.00, the Company has received US$2.1 million for its shares held in Orchard in 2024. Pharming has terminated the research collaboration & licensing agreement with Orchard and discontinued the OTL-105 program. Name of entity Place of business % of ownership interest Nature of relationship Measurement method 2024 2023 Orchard Therapeutics Plc. London, UK —% 0.54% Investment Fair value The fair value as at December 31, 2023, was determined on the basis of the trading price as at that date. Amounts in US$ ‘000 Carrying amount Carrying value at January 1, 2023 403 Fair value adjustments through OCI (pre-tax) 1,573 Disposal of investment designated as at FVOCI — Currency translation 44 Carrying value at December 31, 2023 2,020 Fair value adjustments through OCI (pre-tax) 106 Disposal of investment designated as at FVOCI (2,098) Currency translation (28) Carrying value at December 31, 2024 — The pre-tax cumulative loss on the Orchard investment amounted to US$2.3 million and has been recognized through other comprehensive income throughout the holding period. Pharming Group N.V. Annual Report 2024 | 137 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements 14. Marketable securities Amounts in US$ ‘000 2024 2023 Government treasury certificates 50,525 151,683 Money market funds 62,424 — Total marketable securities 112,949 151,683 Government treasury certificates, denominated in euros, are readily convertible, carry an S&P AAA rating, and have a maturity of six months or less from the acquisition date. These certificates are classified as held-to-maturity and measured at amortized costs. We have considered the expected credit loss and recognized no impairment losses, due to the AAA credit ratings. Reference is made to note 26. Financial risk management showing the difference between the carrying amount and the fair value. Since 2024, the Company has also invested in SEC Rule 2a-7 compliant institutional money market funds, which offer enhanced financial flexibility. The carrying value of the marketable securities include accrued interest and dividends of US$0.4 million in 2024 (2023: US$0.7 million ). 15. Restricted cash, cash and cash equivalents Amounts in US$ ‘000 2024 2023 Restricted cash (non-current) 1,505 1,528 Cash and cash equivalents 54,944 61,741 Total restricted cash, cash and cash equivalents 56,449 63,269 Cash is free at disposal of the Company, except for restricted cash, which amounts to US$1.5 million in 2024 (2023: US$1.5 million). Restricted cash includes deposits for rent. For purposes of the cash flow statement, restricted cash is not considered as "cash and cash equivalents". 16. Inventories Inventories mainly include batches RUCONEST® and Joenja® and work in progress available for production of RUCONEST® and Joenja®. Amounts in US$ ‘000 2024 2023 Finished goods 16,297 18,349 Work in progress 39,002 37,706 Raw materials 425 705 Balance at December 31 55,724 56,760 Changes in the adjustment to net realizable value: Amounts in US$ ‘000 2024 2023 Balance at January 1 (4,276) (1,971) Addition to impairment (7,608) (3,878) Release of impairment 15 — Usage of impairment 2,749 1,673 Currency translation 457 (100) Balance at December 31 (8,663) (4,276) The inventory valuation at December 31, 2024, of US$55.7 million (2023 : US$56.8 million) is stated net of an impairment of US$8.7 million (2023: US$4.3 million). The impairment primarily relates to products no longer eligible for commercial sales. Inventories are available for use in commercial, preclinical and clinical activities. Estimates have been made with respect to the ultimate use or sale of product, taking into account current and expected sales as well as preclinical and clinical programs. These estimates are reflected in the additions to the impairment. The releases to the impairment relate to amendments to the estimates as a result of the fact that actual sales can differ from forecasted sales and the fact that vials allocated to preclinical and clinical programs can be returned to inventory. The costs of vials used in preclinical and clinical programs are presented under the research and development costs. Usage of impairment relates to the destruction of inventory previously impaired. Cost of inventories recognized as expenses included in the cost of sales in 2024 amounted US$25.6 million (2023: US$21.4 million). The main portion of inventories at December 31, 2024, have expiration dates starting beyond 2025 and are generally expected to be sold and/or used before expiration. Pharming Group N.V. Annual Report 2024 | 138 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements 17. Trade and other receivables Amounts in US$ ‘000 2024 2023 Trade receivables 41,531 35,408 Prepaid expenses 4,651 3,543 Value added tax 3,638 3,804 Other receivables 1,596 2,145 Taxes and social securities 3,407 1,258 Balance at December 31 54,823 46,158 Trade receivables are amounts due from customers for goods sold in the ordinary course of business. They are generally due for settlement within 30-60 days and therefore are all classified as current. The Company's outstanding trade receivables are mainly related to the sales in the U.S. The increase in trade receivables relates to the increased sales in the fourth quarter as compared to the same period in 2023 and timing of customer orders and payments around year-end. The Company did not recognize any expected credit losses. Pharming measures the loss allowance for trade receivables at an amount equal to lifetime ECL. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date. Pharming has a limited number of customers with long-term relationships, without a history of shortfalls. As a result, no loss allowance for expected credit losses is recognized. Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value. 18. Shareholders' equity The Company's authorized share capital amounts to US$10.9 million (€10.6 million ), exchange rate (EUR:US$) equals 1:1.0350) and is divided into 1,056,000,000 ordinary shares with a nominal value of €0.01 each. All 680,308,735 (€6.8 million) shares outstanding at December 31, 2024, have been fully paid-up. Other reserves include those reserves related to currency translation, fair value revaluation, participating interest, capitalized development costs and the conversion option of the convertible bond as disclosed in 19. Convertible bonds. Please refer to the Consolidated statement of changes in equity and to note 27. Earnings per share and diluted shares. The Consolidated statement of changes in equity and note 27. Earnings per share and diluted shares further describe the background of the main equity movements in 2024 and 2023. Net result and accumulated deficit Article 21.1 of the articles of association reads as follows: 'the Board of Directors shall annually determine the amount of the distributable profit – the surplus on the profit and loss account – to be reserved.' The Board of Directors has proposed to forward the net loss for the year 2024 to the accumulated deficit. Anticipating the adoption of the financial statements by the shareholders at the Annual General Meeting of shareholders, this proposal has already been reflected in the financial statements. Share-based compensation Share-based compensation within equity includes those transactions with third parties, the board of directors and employees in which payment is based in shares or options, based on current or future performance. For 2024 these transactions were valued at US$11.2 million and for 2023 at US$9.3 million (see note 22. Share-based compensation). Value conversion rights of convertible bonds The equity component of the convertible bond as recorded at the physical settlement date amounts to US$12.2 million, net of tax. Reference is made to note 19. Convertible bonds. Options exercised / LTIP shares issued In 2024, options were exercised and LTIP shares were issued for a total of 9,235,492 shares. In 2023, options were exercised and LTIP shares were issued for a total of 14,725,018 shares. Adjustment to share capital On May 17, 2023, the AGM approved a 20% increase of the Company's authorized capital. As a result the share capital increased from 880,000,000 ordinary shares with a nominal value of €0.01 each to 1,056,000,000 ordinary shares with a nominal value of €0.01 each. There were no adjustments to the authorized share capital in 2024. Pharming Group N.V. Annual Report 2024 | 139 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Other reserves Amounts in US$ ‘000 Legal Reserve Currency translation reserve (CTA) Legal Reserve Capitalized development cost Legal Reserve participating interest Reserve Fair value revaluation Reserve Convertible bond Total Balance at January 1, 2023 (6,384) 402 233 (2,988) — (8,737) Reserves — — — — — — Other comprehensive income (loss) for the year 6,042 18 (124) 1,167 — 7,103 Other reserves — (314) (109) — — (423) Value conversion rights of convertible bonds — — — — — — Balance at December 31, 2023 (342) 106 — (1,821) — (2,057) Reserves (187) — — 1,742 — 1,555 Other comprehensive income (loss) for the year (11,980) — — 79 — (11,901) Other reserves (1) (30) — — — (31) Value conversion rights of convertible bonds — — — — 12,225 12,225 Balance at December 31, 2024 (12,510) 76 — — 12,225 (209) The other reserves concern the reserve fair value revaluation, reserve participating interest, currency translation differences of foreign investments, capitalized development costs and the conversion option of the convertible bond as disclosed in 19. Convertible bonds. Adjustments to the reserve participating interest relate to the undistributed profits of the participating interest. Adjustments to the currency translation reserve reflect the effect of translating euro operations denominated in euro since their functional currency is different from the reporting currency. The legal reserves for capitalized development costs has decreased in 2023, as the Company discontinued the Pompe disease program and hence the related legal reserve was released. The remaining legal reserve for capitalized costs relates to the ERP system SAP S/4HANA. For more information, reference is made to note 10. Intangible assets. There were no additional internally developed capitalized costs in 2024. The other reserve fair value revaluation related to the changes in fair value between the acquisition date and balance sheet date on our investment in equity instruments designated at fair value through OCI, which were disposed of in 2024 as disclosed in 13. Investments. The other reserve convertible bond relates to the conversion option of the convertible bond as disclosed in 19. Convertible bonds. Pharming Group N.V. Annual Report 2024 | 140 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements 19. Convertible bonds Recognition and movements of the convertible bonds were as follows: Amounts in US$ ‘000 2024 2023 Balance at January 1 138,422 133,386 Repurchase (134,924) — Carrying value initial recognition 81,785 — Interest paid (cash flow) (4,457) (4,046) Amortization 5,725 830 Accrued interest 1,972 4,046 Currency translation (6,124) 4,206 Balance at December 31 82,399 138,422 - Current portion 4,245 1,824 - Non-current portion 78,154 136,598 In April 2024, the Company offered €100 million (US$104 million) of senior unsecured convertible bonds due 2029 (the "New Bonds") convertible into new and/or existing ordinary shares in the capital of the Company. The offer was fully subscribed. The net proceeds of the issue of the bonds were used for the repurchase of the outstanding €125 million (US$129 million) 3.00% senior unsecured convertible bonds due 2025 issued on January 21, 2020 (ISIN: XS2105716554), which has been launched concurrently to the offering of the New Bonds to strengthen its financial position while enhancing flexibility for the continued execution of its business strategy over the next several years. The New Bonds have a principal amount of €100,000 each. The New Bonds are issued at par and carry a coupon of 4.50% per annum payable semi-annually in arrears in equal installments on April 25 and October 25 of each year, commencing on October 25, 2024. Unless previously converted, redeemed or purchased and cancelled, the New Bonds will be redeemed at par on April 25, 2029. The initial conversion price has been set at €1.2271 (US$1.2700), representing a premium of 37.5% above the volume weighted average price (VWAP) of a Share on Euronext Amsterdam between opening of trading on the launch date and the pricing of the offering (i.e. €0.8924 (US$0.9236)). The initial conversion price of the New Bonds will be subject to customary adjustment provisions as set out in the terms and conditions. The number of ordinary shares initially underlying the New Bonds is 81,492,951, representing 12% of the Company's current issued share capital. The New Bonds are listed on the Frankfurt Exchange (ISIN: XS2763018889). The New Bonds are classified as hybrid financial instruments under IAS 32 and pursuant to it the debt host contract and the embedded derivative for the fair value of the conversion rights into Pharming shares (the "conversion option") are recognized separately. Initial recognition values for the individual components were determined as follows: • the conversion option at recognition was measured using a pricing model. As the Company did not have sufficient placement capacity to fulfil conversion of the New Bonds into ordinary shares at the date of issue, the conversion option was recognized as a financial liability derivative. During the shareholder's meeting on May 21, 2024, the Company received shareholder approval to increase share capital to support the potential conversion. At the Physical settlement notice date of June 11, 2024, when the New Bond holders were notified that the cash settlement alternative would no longer be available, the conversion option was reclassified to equity at fair value, which resulted in a fair value gain of US$7.0 million immediately prior to the reclassification. Subsequently, the value of this equity component is not remeasured and amounts to US$12.2 million, net of income tax effects, at December 31, 2024. Parameters used in determination of fair value of the conversion option: Parameter At initial recognition Immediately prior to reclassification Share price 0.8924 0.7690 Conversion price per share 1.2271 1.2271 Dividend yield —% —% Expected term in years 5.00 4.85 Risk-free rate 2.90% 3.01% Volatility 44.34% 43.99% Barrier price per share 1.5952 1.5952 • the debt host contract component was measured as the difference between the proceeds from the bond and the value of the conversion option at initial recognition. This debt host contract is subsequently measured at amortized cost, which amounts to US$82.4 million at December 31, 2024. Direct costs associated with the issue of the New Bonds were allocated to the debt host contract (US$2.2 million) and the conversion option (US$0.6 million) in amounts proportional to the above- mentioned initial value. They were accounted for respectively in the amortized cost (debt host contract) and in the income statement (conversion option). Pharming Group N.V. Annual Report 2024 | 141 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements 20. Leases Lease liabilities can be specified as follows: Amounts in US$ ‘000 2024 2023 Balance at January 1 33,123 33,308 Additions 2,425 1,295 Remeasurement 338 1,865 Interest expense accrued 1,141 1,193 Payments of lease liabilities (5,149) (5,126) Disposals of lease liabilities (309) (319) Currency translation (1,655) 907 Balance at December 31 29,914 33,123 - Current portion 2,946 3,616 - Non-current portion 26,968 29,507 Additions in 2023 and 2024 relate to newly leased cars and remeasurement reflects inflation-related higher lease payments on buildings. Future minimum lease payments as at December 31, 2024 , and 2023 are as follows: 2024 2023 Amounts in US$ ‘000 Minimum payments Present value of payments Minimum payments Present value of payments Within one year 4,730 4,650 5,071 4,995 After one year but not more than five years 15,267 13,764 16,024 14,369 More than five years 15,322 11,500 18,996 14,104 Balance at December 31 35,319 29,914 40,091 33,468 21. Trade and other payables Amounts in US$ ‘000 2024 2023 Accounts payable 10,103 16,022 Taxes and social security 3,284 6,234 Other accruals 13,917 15,634 Accruals for employees 16,117 16,019 Accruals for rebates and discounts 14,631 11,643 Accrual for production 8,559 6,976 Balance at December 31 66,611 72,528 The decrease in accounts payable is mainly due to timing of payments. The Other accruals relate to general expenses for which no invoice was received yet. Accruals for employees mainly relate to bonuses for employees, holiday allowances and non-taken vacation days and increased due to an increase in the number of employees, partly offset by a decrease on bonuses for employees. The accrual for rebates and discounts has increased, mainly due to the increase of revenues and timing of settlements. Finally, accruals for production relate to production activities by our CMOs for which no invoice is received yet. The increase is mainly related to timing of invoicing by these CMOs. 22. Share-based compensation The remuneration policy for the Board of Directors was adopted by the Annual General Meeting of Shareholders held on May 21, 2024, and governs the remuneration of both the Executive and the Non-Executive Directors (hereafter referred to as the "Remuneration Policy"). In accordance with Dutch law, the policy must be submitted to our shareholders for adoption every four years. The Policy refers to an undefined number of Executive Directors and Non-Executive Directors. Since May 19, 2021, the Board of Directors is composed of one Executive Director (i.e., the CEO) and seven Non-Executive Directors. In case of future appointments of additional Executive Directors, the Policy shall also be applicable to the remuneration packages for these additional Directors, if any, in accordance with the terms thereof. Therefore, any reference below to Executive Director in the singular also includes the plural, and vice-versa, subject to more restrictive deviations in the Policy and except for specific references to the CEO. The remuneration packages of the individual Directors are determined by the Board of Directors, without the involvement of the Executive Director in the deliberations and decision-making Pharming Group N.V. Annual Report 2024 | 142 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements concerning his own remuneration, and each time within the restrictions set by the remuneration policy. Arrangements in the form of shares or rights to subscribe for shares will each time remain subject to the approval of the shareholders at the General Meeting, notwithstanding the adopted policy. On December 11, 2020, the shareholders approved the proposals that were submitted accordingly for the new long-term incentive program for the Executive Director, as described in the Remuneration Policy, and the one-off transition arrangement for the implementation of that new program. Our shareholders also authorized the Board of Directors, for a period of eighteen months, as the company body authorized to grant and issue the ordinary shares to the Executive Director under the new long-term incentive program and the one-off transition arrangement, respectively, and to exclude any preemptive rights of existing shareholders in connection with these issuances. The total expense recognized in 2024 for share-based payment plans amounts to US$11.2 million (2023: US$9.3 million). The total expenses for share-based payment plans in 2024 is specified as follows: Share-based compensation (in U.S.$ '000) 2024 2023 Non-executive directors' remuneration 238 246 Employee options 703 1,654 Long term incentive plan 4,153 4,006 Restricted stock units 6,154 3,345 Balance at December 31 11,248 9,251 The employee options expense decreased due to a change in the employee share-based compensation plans where since 2022 RSU's have been granted instead of employee options. No new employee option grants were applicable for 2024. The restricted stock units expense increased significantly as the program was introduced in 2022 and is now active for two full years over a 4-year vesting period per grant. 22.1 Models and assumptions IFRS 2 describes a hierarchy of permitted valuation methods for share-based payment transactions. If possible, an entity should use market prices at measurement date to determine the fair value of its equity instruments. If market prices are unavailable, as is the case with Pharming's option plans and long-term incentive plan, the entity shall estimate the fair value of the equity instruments granted. A valuation technique should be used to estimate the value or price of those equity instruments as it would have been at the measurement date in an arm's length transaction between knowledgeable, willing parties. The valuation technique shall be consistent with generally accepted valuation methodologies for pricing financial instruments and shall incorporate all factors and assumptions that knowledgeable market participants would consider in setting the price. Whatever pricing model is selected, it should, as a minimum, take into account the following elements: • The exercise price of the option; • The expected time to maturity of the option; • The current price of the underlying shares; • The expected volatility of the share price; • The dividends expected on the shares; and • The risk-free interest rate for the expected time to maturity of the option. Models and assumptions option plans The costs of option plans are measured by reference to the fair value of the options at the grant date of the option. Note that during 2024 no options were granted to employees. The six elements above are all incorporated in the Black-Scholes model used to determine the fair value of options. The exercise price of the option and the share price are known at grant date. Volatility is based on the historical end-of-month closing share prices over a period prior to the option grant date being equal to the expected option life, with a minimum of 3 years. It is assumed no dividend payments are expected. The total number of shares with respect to which options may be granted pursuant to the option plans accumulated, shall be determined by Pharming, but shall not exceed 10% of all issued and outstanding shares of Pharming on a diluted basis. Shares transferred or to be transferred, upon exercise of options shall be applied to reduce the maximum number of shares reserved under the plans. Unexercised options can be re-used for granting of options under the option plans. Pharming may grant options to a member of the Executive Committee or an employee: • At the time of a performance review; • Only in relation to an individual: a date within the first month of his or her employment; • In case of an extraordinary achievement; and • In case of a promotion to a new function within Pharming. Pharming Group N.V. Annual Report 2024 | 143 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements The option exercise price is the price of the Pharming shares on the stock exchange on the trading day prior to the date of grant. Vested options can be exercised at any time within five years following the date of grant. Unexercised options shall be deemed lapsed and shall cease to exist automatically after five years. Exercise of options is subject to compliance with laws and regulations in the Netherlands. Exercise of options is including withholding taxes. Each option is equal to one share unless otherwise stated. Options are not applicable for early retirement. The following assumptions were used in the Black-Scholes model to determine the fair value of options at grant date: 2024 2023 Expected time to maturity n/a 1-4 years Volatility n/a 38% - 46% Risk-free interest rate n/a 2.20% - 2.68% Option plan employees Article 2.1 of the option plan for employees' states: Pharming may grant options to any employee. The criteria for the granting of the options up to December 11, 2020, was determined by the Board of Supervisory Directors of Pharming, at its sole discretion. Up to December 11, 2020, the Board of Management proposed (i) whether the criteria for granting an option have been met by a potential participant and (ii) the number of options to be granted. As from December 11, 2020, the execution of the Company's remuneration policy and other benefits policies and incentive programs, as approved by the Board of Directors (to the extent required), for all staff members of the Company and its subsidiaries, excluding the CEO and the other members of the Executive Committee, is delegated to the Chief Executive Officer. Article 4.4 of the employee option plan deals with the vesting scheme of employee options and reads as follows: in case of the termination of the employment of a participant, except for retirement and death, Pharming at its sole discretion is entitled to decide that the options of the participant shall lapse. The following schedule shall apply for the cancellation: • In the event of termination of employment within one year as of a date of grant, all options shall lapse; • In the event of termination of employment after the first year as of a date of grant, all options, less 1/4 of the number of options shall be lapsed. The number of options to be cancelled decreases for each month that the employment continued for more than one year as of that date of grant by 1/48 of the number of options granted of that date of grant. Models and assumptions Long Term Incentive Plan For the long-term incentive plan, the following elements of Pharming and/or the peer group are included in order to determine the fair value of long-term incentive plan share awards, using Monte Carlo simulation: • Start and end date of performance period; • The grant date; • The share prices; • Exchange rates; • Expected volatilities; • Expected correlations; • Expected dividend yields; and • Risk free interest rates. Volatilities are based on the historical end-of-month closing share prices over the 3 years. Correlations are based on 3 years of historical correlations based on end-of-month closing quotes, taking into account exchange rates. Expected dividend yields for peers and risk-free interest rates (depending on the currency) are obtained from Bloomberg. Under the LTIP, restricted shares are granted conditionally each year with shares vesting based on the market condition in which the total shareholder return performance of the Pharming share is compared to the total shareholder return of a peer group of other European biotech companies. During 2024, there were no LTIP grants other than the grants for the executive directors and members of the executive committee as disclosed below. Long Term Incentive Plan for the Executive Directors and members of the Executive committee As part of the Remuneration Policy, the Long Term Incentive Program is applicable to Executive Directors and has been aligned with prevailing "best practices" and is performance related only. For the Executive Directors, the on-target value of the shares to be awarded under the newly designed LTI Program, as described in the remuneration policy, is set at 300% of the gross annual salary for the CEO (representing 50% below the lowest quartile of the U.S. benchmark group and just below the top quartile of the EU benchmark group for the executive directors) and 200% for the members of the Executive committee (representing between 20 and 30% below the lowest quartile of the U.S. benchmark group and just in the top quartile of the EU benchmark group for the Executive Directors). Pharming Group N.V. Annual Report 2024 | 144 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements EU and U.S. benchmark group: Company Location Location Europe ADC Therapeutics Epalinges, Switzerland Alliance Pharma Chippenham, United Kingdom Autolus Therapeutics London, United Kingdom Basilea Pharmaceutica Basel, Switzerland Bavarian Nordic Hellerup, Denmark BioGaia Stockholm, Sweden Biotest Dreieich, Germany Camurus Lund, Sweden Cosmo Pharmaceuticals Dublin, Ireland Galapagos Mechelen, Belgium Innate Pharma Marseille, France Merus Utrecht, the Netherlands Oxford Biomedica Oxford, United Kingdom uniQure Amsterdam, the Netherlands Valneva Saint-Herblain, France Zealand Pharma Copenhagen, Denmark Company Location Location U.S. Anika Therapeutics Bedford, MA BioCryst Pharmaceuticals Durham, NC Coherus BioSciences Redwood City, CA Collegium Pharmaceutical Stoughton, MA Enanta Pharmaceuticals Watertown, MA Heron Therapeutics San Diego, CA Ironwood Pharmaceuticals Boston, MA Karyopharm Therapeutics Newton, MA Ligand Pharmaceuticals San Diego, CA MannKind Danbury, CT Mirum Pharmaceuticals Foster City, CA Rigel Pharmaceuticals South San Francisco, CA Supernus Pharmaceuticals Rockville, MD Travere Therapeutics San Diego, CA Vanda Pharmaceuticals Washington, DC Pharming Group N.V. Annual Report 2024 | 145 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements The maximum value of the shares that can vest under the LTI program is set at 450% of the gross annual salary for the CEO and 300% for other Executive Directors and Officers. Executive Directors are required to retain the shares awarded under the LTI program for a minimum of five years from the date of grant. The shares granted to the Executive Directors under the LTI program will vest in three years after the grant date, subject to the achievement of the targets set by the Board of Directors, upon proposal of the Remuneration Committee, for the three-year performance period (i.e., double-trigger vesting), their relative weightings and the pay-out limits. All shares awarded will be subject to a retention period of five years from the date of grant (i.e., two years after vesting), in accordance with the best practice provisions of the DCGC. The performance objectives include the Total Shareholder Return (40% weighing) and the achievement of long-term strategy-oriented objectives (60% weighing). The peer group used to determine the Total Shareholder Return is composed of the companies included in the AScX Index and the NASDAQ Biotechnology Index, represented by the IBB ETF, respectively, equally weighted, at the time of the determination. The thresholds and payout percentages for the LTI program are given by the following table, as to be determined for each of the AScX and IBB indices separately (each weighted at 50% of pay-out): TSR equal to index 80% pay-out TSR 10% above index 90% pay-out TSR 20% above index 100% pay-out TSR 40% above index 110% pay-out TSR 60% above index 120% pay-out TSR 80% above index 130% pay-out TSR 100% above index 150% pay-out TSR below index 0% pay-out The range of assumptions used in the Monte Carlo simulation to determine the fair value of long- term incentive plan share awards at grant date were: 2024 2023 Volatilities 40.5% 42% Risk-free interest rates 2.53% 2.34% Dividend yields 0.00% 0.00% Restricted Stock Units Article 2.1 of the plan states: This Plan is effective as of October 26, 2022, and shall be executed in compliance with the Articles of Association and applicable law and concerns Pharming's (senior) management. The RSU plans are not applicable for the board of directors, nor the executive committee. For each participant, the RSU's granted to them will vest in four equal tranches of twelve months, provided that at the time of vesting such participant is still an employee. No performance criteria are applicable to this plan. The fair value of the grant is, in line with IFRS 2, the actual share price at date of the grant. The relating expense will be charged to Pharming's results over the vesting for the following tranches: a. a first tranche of 25% of the RSU's granted, vesting twelve months after the Vesting Commencement Date; b. a second tranche of 25% of the RSU's granted, vesting two years after the Vesting Commencement Date; c. a third tranche of 25% of the RSU's granted, vesting three years after the Vesting Commencement Date; and d. a fourth tranche of 25% of the RSU’s granted, vesting four years after the Vesting Commencement Date. One-off transition arrangement for the Chief Executive Officer In 2020, the implementation of a new three-year vesting scheme under the LTIP had a major impact on the remuneration packages of existing Executive Directors for the period 2020-2023, as the Executive Directors' packages feature annual option and share grants. The share-based compensation under these packages and plans over this three-year period would have resulted in three option grants, with guaranteed vesting of a total of 8,400,000 options for the CEO on the basis of continued tenure over the three-year period. In addition, the CEO would have been eligible for three annual restricted share grants pursuant to the LTIP of up to 30% of the base salary. Pharming Group N.V. Annual Report 2024 | 146 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements To mitigate the described impact, the Company has agreed to a one-off transition arrangement with the CEO as approved at the General Meeting of Shareholders on December 11, 2020. This one-off transition arrangement provides for (i) the conversion of the total number of 8,400,000 options for the CEO (i.e., the total number of share options that was expected to be granted in 2021, 2022 and 2023 without the arrangement) into one grant for a total number of 4,200,000 shares for 2020, which vesting will be governed by the performance-based criteria of the new LTI program, and (ii) the vesting of the performance shares in three annual tranches in the first quarter of 2021, 2022 and 2023, subject to the performance-based criteria of the new LTI program for Executive Directors as described above in the Long Term Incentive Plan for the Executive Directors paragraph. In addition, the grant and each of the three potential vestings of the granted shares under the Long-term Incentive One-Off Arrangement is subject to: i. a five-year retention period for the granted shares; ii. the annual pro-rata satisfaction upon vesting of the set long-term performance targets, as determined by the Board of Directors; and iii. the other terms and conditions applicable to the LTI Program pursuant to the Remuneration Policy for the Board of Directors dated December 11, 2020. Pursuant to the one-off transition arrangement, the CEO has waived all his rights for the grant of restricted shares and option rights, respectively, under the LTIP and the existing option plans for the financial year 2020. On December 22, 2020, a total number of 4,200,000 (restricted) shares was granted to the CEO in accordance with the terms of the one-off transition arrangement. During 2024, no one-off transition grants, nor payments, nor share deliveries occurred. 22.2 Option plans An overview of activity in the number of options for the year 2024 is as follows (please also refer to note 27. Earnings per share and diluted shares in respect of movements since the reporting date)(note that the dollar weighted average exercise price is translated using the closing exchange rate for the respective year (2024: 1:1.0350)): 2024 2023 Number Weighted Average Exercise Price (US$) Number Weighted Average Exercise Price (US$) Balance at January 1 34,482,312 0.952 47,596,801 0.897 Forfeited (634,874) 0.896 (1,423,375) 0.992 Expired (3,707,334) 0.840 (205,000) 0.847 Granted — — 270,000 1.349 Exercised (5,901,167) 0.784 (11,756,114) 0.857 Balance at December 31 24,238,937 0.932 34,482,312 0.952 - Vested 19,816,437 0.942 9,284,834 0.856 - Unvested 4,422,500 0.889 25,197,478 0.987 For the options outstanding at the end of the year, the range of exercise prices and weighted average remaining contractual life is as follows (note that the range of exercise prices is translated using the closing exchange rate for the respective year (2024: 1:1.0350): 2024 2023 Range of exercise prices (US$) 0.73 - 1.54 0.78 - 1.63 Weighted average remaining contractual life (years) 1.41 1.91 Exercised options 2024 In 2024 a total of 5,901,167 options have been exercised with an average exercise price of US$0.78. In 2023 a total of 11,756,114 options have been exercised with an average exercise price of US$0.86. All options outstanding at December 31, 2024, are exercisable with the exception of the unvested options granted to the employees still in service. The 2024 share options for the employees, vest after one year under the condition the employees are still in service at vesting date. Exercise prices of options outstanding at December 31, 2024, and the exercise values are in the following ranges (note that the exercise value in US$ is translated using the closing exchange rate for the respective year (2024: 1:1.0350)): Pharming Group N.V. Annual Report 2024 | 147 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements 2024 2023 Exercise prices in US$ Number Exercise value in US$ ’000 Number Exercise value in US$’000 0.57 – 0.85 10,460,750 8,555 6,739,000 4,967 0.85 – 1.63 13,778,187 14,045 27,743,312 24,862 Balance at December 31 24,238,937 22,600 34,482,312 29,828 Granted options In 2024, the Company granted no options to employees. In 2023, the Company granted 270,000 options to employees with a weighted average exercise price of US$1.35; fair values for options granted in 2023 were in the range of US$0.223 - US$0.581. 22.3 Long Term Incentive Plan An overview of the number of LTIP shares granted in 2021-2024 and in total as well as the fair value per share award is as follows (note that the fair value per share award in US$ is translated using the closing exchange rate for the respective year (2024: 1:1.0350)): Participant category 2021 2022 2023 2024 Total Executive Members of the Board of Directors 1,337,888 2,363,455 1,681,570 1,824,602 7,207,515 Executive Committee 6,301,400 5,816,083 4,221,870 4,997,299 21,336,652 Senior managers 812,500 — — — 812,500 Total 8,451,788 8,179,538 5,903,440 6,821,901 29,356,667 Fair value per share award (US$) 0.887 0.517 0.880 0.896 The following table provides an overview of LTIP shares granted, forfeited or issued in 2021-2024 as well as the number of LTIP shares reserved at December 31, 2024: Participant category Granted Issued Forfeited / Unvested Reserved at December 31, 2024 Executive Members of the Board of Directors 7,207,515 (403,353) (2,195,941) 4,608,221 Executive Committee 21,336,652 (1,877,545) (5,301,855) 14,157,252 Senior managers 812,500 (77,613) (734,887) — Total 29,356,667 (2,358,511) (8,232,683) 18,765,473 Pharming Group N.V. Annual Report 2024 | 148 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements 22.4 Restricted Stock Units An overview of the granted RSU's to the Company's (senior) managers, as well as the number of RSU's reserved at December 31, 2024, is as follows: Grant year Granted Issued Forfeited / Unvested Reserved at December 31, 2024 Reserved at Weighted average fair value per share in US$ 2024 12,091,227 — (42,112) 12,049,115 0.797 2023 7,979,250 (1,764,059) (705,875) 5,509,316 1.155 2022 4,931,000 (2,243,622) (509,500) 2,177,878 1.004 Total 25,001,477 (4,007,681) (1,257,487) 19,736,309 0.919 22.5 Transition arrangement for the Chief Executive Officer On December 22, 2020, a total number of 4,200,000 (restricted) shares was granted to the CEO in accordance with the terms of the one-off transition arrangement. These shares vested in three equal annual tranches in 1Q 2021, 1Q 2022 and 1Q 2023, subject to the pro-rata achievement of the long- term targets under the new LTI program. The third year of the 3-year performance period for the 2021 share grant pursuant to the LTI one-off transition arrangement, ended on December 31, 2022. Accordingly the Board of Directors, upon a recommendation of the Remuneration Committee, determined in the first quarter of 2023 the vesting of the second annual tranche of the total number of 4,200,000 shares conditionally granted to the Chief Executive Officer (i.e., 1,400,000 shares). The performance on both the TSR and the strategic corporate objectives, applying the respective weightings, led to the following vesting level under the One-Off Transition Arrangement for the CEO (i.e., second annual tranche of 1,400,000 shares): Metric definition Achievement Weighting Vesting level TSR 115% 40% 46% Strategic Objectives 90% 60% 54% Total 100% 100% In accordance with the resulting 100% vesting level, a total number of 1,400,000 shares vested in 2023 for the CEO for the third annual tranche of the shares granted under the LTI One-Off Transition Arrangement. These shares are subject to a retention period of five years. 23. Board of Directors In connection with the listing of our ADSs on Nasdaq, we converted our two-tier board structure into a one-tier board structure, with a single board of directors consisting of the executive director and non-executive directors. The new structure became effective on December 11, 2020. Since that date, the Board of Directors is jointly responsible for the management of the Company. The daily management of the Company and the execution of the strategy are entrusted to the CEO, as the only Executive Director. The CEO is supported by the non-statutory Executive Committee in the execution of his tasks and responsibilities. The Non-Executive Directors share statutory management responsibility but focus on the supervision on the policy and functioning of the performance of the duties by the Executive Director and the Company's general state of affairs. Dr. S. de Vries was the Company's sole Executive member of the Board of Directors during 2024 and continued to be the Chief Executive Officer until March 4, 2025, after which he was succeeded by Mr. Fabrice Chouraqui. The Board of Directors has the following members: Name Position Dr. R. Peters Chair of the Board of Directors and Non-Executive Board Member Ms. D. Jorn Vice Chair of the Board of Directors and Non-Executive Board Member Ms. B. Yanni Non-Executive Board Member Dr. M. Pykett Non-Executive Board Member Ms. J. van der Meijs Non-Executive Board Member Mr. L. Kruimer Non-Executive Board Member Mr. S. Baert Non-Executive Board Member Dr. S. de Vries Executive Board Member and Chief Executive Officer until March 4, 2025 Mr. F. Chouraqui Executive Board Member and Chief Executive Officer as of March 4, 2025 Pharming Group N.V. Annual Report 2024 | 149 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Non-Executive members Board of Directors Remuneration For 2024 the annual compensation of the non-executive members of the Board of Directors was as follows: Responsibility Cash in Euro's (per annum) Ordinary shares in Euro's * (per annum) Cash in US Dollars (per annum) Ordinary shares in US Dollars * (per annum) Chair of the Board of Directors 90,000 40,000 97,236 43,216 Non-Executive Director 45,000 30,000 48,618 32,412 Chair Audit Committee 15,000 16,206 Member Audit Committee 7,500 8,103 Chair Remuneration Committee 12,500 13,505 Member Remuneration Committee 6,250 6,753 Chair of the Transaction Committee 12,500 13,505 Member of the Transaction Committee 6,250 6,753 Chair Governance Committee 12,500 13,505 Member Governance Committee 6,250 6,753 All shares to be valued at the 20 day VWAP preceding the Annual General Meeting of Shareholders, without further restrictions or grant. An additional compensation of EUR1,000 (US$1,080) per day in case of extraordinary activities, as determined by the Chair of the Board of Directors. Compensation of the Non-Executive members of the Board of Directors for 2024 and 2023 was as follows: Amounts in US$ ‘000 Year Cash Share-Based Payment Total Dr. Richard Peters 2024 111 43 154 2023 26 20 46 Mr. Paul Sekhri 2024 — — — 2023 55 32 87 Ms. Deborah Jorn 2024 64 32 96 2023 55 32 87 Ms. Barbara Yanni 2024 77 32 109 2023 62 32 94 Dr. Mark Pykett 2024 63 32 95 2023 55 32 87 Ms. Jabine van der Meijs 2024 77 32 109 2023 62 32 94 Mr. Leonard Kruimer 2024 72 32 104 2023 58 32 90 Mr. Steven Baert 2024 69 32 101 2023 58 32 90 Total 2024 533 235 768 2023 431 244 675 Pharming Group N.V. Annual Report 2024 | 150 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Shares At December 31, 2024, the Non-Executive members of the Board of Directors held the following numbers of shares: December 31, 2024 Ordinary shares Dr. Richard Peters 62,875 Ms. Deborah Jorn 161,660 Mr. Leonard Kruimer 121,231 Dr. Mark Pykett 146,069 Mr. Steven Baert 121,231 Ms. Jabine van der Meijs 121,231 Ms. Barbara Yanni 146,069 Total 880,366 All shares held by the Non-Executive members of the Board of Directors are unrestricted. Loans or guarantees During the year 2024, the Company has not granted loans or guarantees to any member of the Non- Executive members of the Board of Directors. No loans or guarantees to Non-Executive members of the Board of Directors were outstanding at December 31, 2024. Executive members Board of Directors Remuneration The Executive Board Member is entitled to the following remuneration packages: I) Fixed remuneration: annual base salary; II) Variable remuneration: the variable remuneration components are (a) an annual bonus in cash as a percentage of the fixed component (short-term incentive) and (b) a (share- based) long-term incentive; and III) Others: contribution pension premiums, travel allowance and holiday allowance. Compensation was as follows and includes the entire year 2024, up to December 31, 2024: Amounts in US$ ‘000 Year Fixed remuneration Short term variable: annual bonus Share based payments Post- employment benefits Other Total Mr. Sijmen de Vries 2024 $694 $414 $987 $116 $35 $2,246 2023 $673 $615 $1,371 $115 $35 $2,809 Options The following table gives an overview of movements in number of option holdings of the individual members of the executive board of directors in 2024, the exercise prices and expiration dates up to December 31, 2024, (note that the exercise price in US$ is translated using 2024 closing exchange rate (1:1.0350)): January 1, 2024 Granted 2024 Exercised 2024 Forfeited/ expired 2024 December 31, 2024 Exercise price (US$) Expiration date Mr. Sijmen de Vries 2,800,000 — 2,800,000 — — 0.833 May 22, 2024 Shares At December 31, 2024, the executive members of the board held the following numbers of shares: Shares held As at December 31, 2024 Mr. Sijmen de Vries 8,594,721 Long term Incentive Plan Year Granted Settled Forfeited / Unvested December 31, 2024 Mr. Sijmen de Vries 2024 1,824,602 — (948,127) 876,475 2023 1,681,570 — (313,279) 1,368,291 2022 2,363,455 — — 2,363,455 The forfeited / unvested category relates to an adjustment to the service period in relation to the announcement by Mr. Sijmen de Vries on October 24, 2024, that he would not be available for reappointment upon the scheduled expiration of his term. Pharming Group N.V. Annual Report 2024 | 151 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Loans or guarantees During the year 2024, no loans or guarantees have been granted to the Executive members of the Board of Directors. No loans or guarantees to the Executive member of the Board of Directors were outstanding at December 31, 2024. The Executive member of the Board of Director is the sole statutory director. 24. Related party transactions Related parties' disclosure relates mainly to key management compensation and to transactions with the associated company BioConnection Investments B.V. (BioConnection). Key management includes members of the Board of Directors: Amounts in US$ ‘000 2024 2023 Salaries and other short-term employee benefits 1,676 1,756 Post-employment benefits 116 115 Share-based compensation 1,222 1,615 Total 3,014 3,486 All direct transactions with members of the Board of Directors have been disclosed in notes 22. Share-based compensation and 23. Board of Directors of these financial statements. Related party transactions with BioConnection are in the ordinary course of that company's fill & finish business and amounted to US$4.6 million in 2024 (2023: US$4.7 million). At December 31, 2024, the Company owed BioConnection US$1.5 million (2023: US$1.7 million) for fill & finish services supplied. In addition, BioConnection owed US$0.3 million (2023: US$0.5 million) to the Company at December 31, 2024. 25. Commitments and contingencies Material agreements At the end of 2024 the Company had several agreements with third parties related to the manufacturing of RUCONEST® and Joenja® and development of new products. In these agreements certain minimum volumes are committed. Total future commitments under these agreements are approximately US$41.6 million (2023: US$58.3 million), of which US$24.8 million relates to 2025 and US$16.8 million relates to 2026 and further. All expenditures relate to the cost of goods. Leniolisib milestone commitments In August 2019, Pharming entered into a development collaboration and license agreement with Novartis to develop and commercialize leniolisib, a small molecule phosphoinositide 3-kinase delta (PI3Kδ) inhibitor being developed by Novartis to treat patients with activated phosphoinositide 3- kinase delta (PI3Kδ) syndrome (APDS). In November 2022, Pharming submitted regulatory filings to the FDA and EMA for the purpose to commercialize leniolisib. On March 24, 2023, Pharming received FDA approval for the commercialization of leniolisib in the United States of America. Pharming is awaiting CHMP's opinion on the leniolisib regulatory filing submitted to EMA. Pharming has agreed upon phased Development and Regulatory Milestone payments of US$20.5 million. As a result of the first commercial sale in the US, Pharming has paid US$10.4 million in Development and Regulatory Milestone payments in 2023. Furthermore, Pharming is committed to one-off Sales Milestone payments when annual net sales exceed set thresholds for the first time. The total commitment equals US$180.0 million when yearly net sales reach US$500.0 million. The first milestone equals US$5.0 million when yearly net sales reach US$50.0 million. After a sales threshold has been reached for the first year, the milestone payment for that threshold does not recur. In 2024, the Company has not reached the first sales milestone of yearly net sales of US$50.0 million and therefore did not make any sales milestone payment. In addition to these milestone payments, the Company has agreed to pay royalty fees to Novartis on net sales in jurisdictions where regulatory approval has been obtained. These royalties are calculated as a fixed percentage over net sales, growing to a maximum of 18% when net sales exceed US$300.0 million. These royalty payments have a term of 10 years. The minimum royalty liability of 12% is applicable for sales up until US$150.0 million. The timing of the milestone payments and royalty payments is uncertain as these are highly dependent on the enrollment of new patients for leniolisib. In 2024, the Company has made US$4.9 million in royalty payments to Novartis (2023: US$2.1 million). Public cash offer Abliva AB ("Abliva") On December 15, 2024, Pharming announced a recommended public cash offer to the shareholders of Abliva to acquire all issued and outstanding shares of Abliva. Pharming, through its wholly-owned subsidiary Pharming Technologies B.V., offered the shareholders SEK 0.45 in cash per share in Abliva. The transaction was valued at approximately US$66.1 million. In February 2025, the deal was completed and for further details, reference is made to note 28. Events after the reporting period. Pharming Group N.V. Annual Report 2024 | 152 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements 26. Financial risk management General Pharming is exposed to several financial risks: market risks (being currency risk and interest rate risk), credit risks and liquidity risks. The Board of Directors and the Executive Committee are responsible for the management of currency, interest, credit and liquidity risks and as such ultimately responsible for decisions taken in this field. Capital risk management The Company manages its capital to ensure that it will be able to continue as a going concern. This includes a regular review of cash flow forecasts and, if deemed appropriate, subsequent raising of funds through execution of equity and/or debt transactions. In doing so, the Board of Directors' and Executive Committees' strategy is to achieve a capital structure which takes into account the best interests of all stakeholders. Pharming's capital structure includes cash and cash equivalents, marketable securities, debt and equity. Compared to last year the Company has allocated a portion of the euro denominated readily convertible S&P AAA-rated government treasury certificates with a maturity of six months or less, to SEC Rule 2a-7 compliant institutional money market funds, which offer enhanced financial flexibility. Currency risk This is the risk that the fair value of assets, liabilities and especially the future cash flows of financial instruments will fluctuate because of changes in foreign exchange rates. Pharming's policy for the management of foreign currency risks is aimed at protecting the operating profit and positions held or recorded in foreign currencies, in particular of the United States Dollar (USD) for the Group. Certain payments and sales in the U.S. are being and will be received in USD. Some direct payments of U.S. activities are carried in USD through the Dutch entities. At December 31, 2024, the Group's cash and cash equivalents, including restricted cash, and marketable securities amounted to US$169.4 million . This balance consists of cash assets denominated in euro for a total amount of US$146.2 million or €141.3 million (applying an exchange rate EUR/USD at December 31, 2024, of 1.0350) and cash assets in U.S. Dollars for a total amount of US$22.2 million. The US Dollar cash balance will mainly be used for the commercialization activities of the U.S. organization. The remaining cash balance (equivalent to US$1.0 million) is denominated in British pounds and Australian dollars, and is utilized by the respective local entities. Cash and cash equivalents (including restricted cash), accounts receivables and inventories denominated in USD amounted in total to US$71.9 million (€69.5 million), respectively US$28.7 million (€27.7 million) for the trade and other payables denominated in USD. Pharming performed a sensitivity analysis by applying an adjustment to the spot rate at year-end. As the balance of the cash and cash equivalents (including restricted cash), accounts receivables, inventories, trade and other payables, denominated in USD, at year-end is US$43.2 million, a 10% strengthening or weakening of the euro versus US dollar would have an impact of US$4.3 million on the Group's gain (weakening of the euro) or loss (strengthening of the euro). The balance sheet positions denominated in other foreign currencies are minimal, resulting in a correspondingly low currency risk. Interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Pharming's interest rate risk policy is aimed at minimizing the interest rate risks associated with the financing of the Company and thus at the same time optimizing the net interest costs. This policy translates into a certain desired profile of fixed- interest and floating interest positions, including those generated by cash and cash equivalents and marketable securities and those paid on finance lease liabilities. As the interest rate on the convertible bond is a fixed percentage, Pharming concluded that the total risk on interest is not material. The issue of the Convertible Bonds due 2029 at a fixed interest rate of 4.50% p.a. has rendered this concern obsolescent. The interest on the vast majority of the Company's financial instruments is not variable with market interest rates. More information on the Convertible Bonds due 2029 can be found in note 19. Convertible bonds. Credit risk Credit risk is defined as the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge obligations. Pharming manages credit risk exposure through the selection of financial institutions having a high credit rating, using credit rating reports issued by institutions such as Standard & Poor's and Moody's. The exposure to credit risk at December 31, 2024, is represented by the carrying amounts of cash and cash equivalents, marketable securities and trade and other receivables. The carrying amounts of the cash and cash equivalents (including restricted cash) as at December 31, 2024, amounted to US$56.4 million and was held through financial institutions with a A- to A rating from Standard & Poor's, A3 to Aa3 ratings from Moody's and A to AA- ratings from Fitch. Marketable securities at December 31, 2024, amounted to US$112.9 million (2023: US$151.7 million). As of December 31, 2024, US$50.5 million was held in S&P AAA-rated government treasury certificates with a maturity of six months or less from the date of acquisition (2023:US$151.7 million). We have considered the expected credit loss and recognized no losses, due to the AAA credit ratings. Since 2024, the Company has also invested in SEC Rule 2a-7 compliant institutional money market Pharming Group N.V. Annual Report 2024 | 153 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements funds, which offer enhanced financial flexibility. As of December 31, 2024, these investments amounted to US$62.4 million. Complying with SEC Rule 2a-7, these funds ensure liquidity and stability through requirements on liquidity, maturity limits, credit quality and diversification. Trade and other receivables at December 31, 2024, amounted to US$54.8 million. As at the date of these financial statements, these amounts have largely been settled, including receipts in cash and receipt of goods and services in exchange of prepaid expense items. Based on the credit ratings of cash and cash equivalents (including restricted cash) as well as the positions taken with respect to marketable securities and trade and other receivables, the Company considers that this risk is adequately managed. Liquidity risk The liquidity risk refers to the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. Pharming's objective is to maintain a minimum level and certain ratio of cash and cash equivalents (including short-term deposits and readily convertible S&P AAA- rated government treasury certificates with a maturity of six months or less and SEC Rule 2a-7 compliant institutional money market funds). The strategy of the Company is to repay its obligations through generation of cash income from operating activities such as product sales. In case such cash flows are insufficient, the Company relies on financing cash flows as provided through the issuance of shares or incurring financial liabilities. Note 3. Going concern assessment of these financial statements more extensively describes the Company's going concern assessment. The following table presents the financial liabilities at year-end 2024, showing the remaining undiscounted contractual amounts due including nominal interest. Liabilities denominated in foreign currency have been converted at the exchange rate at December 31, 2024. Pharming Group N.V. Annual Report 2024 | 154 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Maturity profile of financial liabilities: Amounts in US$ ’000 2025 2026 2027 2028 2029 and onwards Total Prior year total Trade and other payables 66,611 — — — — 66,611 72,528 Lease Liabilities 4,730 4,688 4,257 3,738 17,906 35,319 40,091 Convertible Bonds 4,658 4,658 4,658 4,658 110,486 129,118 143,714 Total 75,999 9,346 8,915 8,396 128,392 231,048 256,333 Fair value estimation The Company uses the following hierarchy for determining the fair value of financial instruments measured at fair value: • Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and • Level 3: Inputs for the asset or liability that are not based on observable market data or which are based on the probability of future events occurring (that is, unobservable inputs). The following table presents the assets that are measured at fair value at year-end 2024 and 2023: 2024 2023 Amounts in US$ ’000 Level 1 Level 3 Total Level 1 Level 3 Total Investments in equity instruments designated as at FVTOCI — — — 2,020 — 2,020 Investments in debt instruments designated as at FVTPL — 3,767 3,767 — 6,093 6,093 Balance at December 31 — 3,767 3,767 2,020 6,093 8,113 Pharming Group N.V. Annual Report 2024 | 155 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements The following table includes carrying values and the estimated fair values of financial instruments: Amounts in US$ ‘000 2024 2023 Carrying value Fair value Carrying value Fair value Assets: Cash and cash equivalents, including restricted cash 56,449 56,449 63,269 63,269 Marketable securities 112,949 112,949 151,683 151,746 Trade and other receivables 54,823 54,823 46,158 46,158 Liabilities: Convertible Bond 82,399 82,399 138,422 138,422 Lease Liabilities 29,914 29,914 33,123 33,123 Trade and other payables 66,611 66,611 72,528 72,528 The fair value of the Marketable securities is based on observable market information (level 1 valuation). The above other fair values of financial instruments are based on internal calculations. Cash and cash equivalents, trade and other receivables as well as trade and other payables are stated at carrying amount, which approximates the fair value in view of the short maturity of these instruments. The fair values of finance lease liabilities (both non-current and current portion) are based on arm's length transactions. The following table sets out an analysis for each of the period presented of the net position of the convertible bond, cash and cash equivalents and marketable securities, showing the remaining undiscounted contractual amounts due including nominal interest. Pharming Group N.V. Annual Report 2024 | 156 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements Amounts in US$ ‘000 2024 2023 Cash and cash equivalents 54,944 61,741 Restricted cash 1,505 1,528 Marketable securities 112,949 151,683 Convertible bond - current (4,245) (1,824) Convertible bond - non-current (78,154) (136,598) Net cash (debt) 86,999 76,530 Cash and cash equivalents 54,944 61,741 Restricted cash 1,505 1,528 Marketable securities 112,949 151,683 Gross debt - fixed interest rates (82,399) (138,422) Gross debt - variable interest rates — — Net cash (debt) 86,999 76,530 Reconciliation of liabilities arising from financing activities: 2023 Cashflows Non - Cash changes 2024 Amounts in US$ ’000 Acquisition, disposal and reclassification Interest Expense Accrued Amortized costs Fair Value Changes Foreign exchange effects and other Convertible Bond 138,422 (4,457) (53,139) 1,972 5,725 — (6,124) 82,399 Lease Liabilities 33,123 (5,149) 2,425 1,141 — — (1,626) 29,914 Derivative financial liabilities — — 7,041 — — (7,041) — — Total liabilities from financing activities 171,545 (9,606) (43,673) 3,113 5,725 (7,041) (7,750) 112,313 Pharming Group N.V. Annual Report 2024 | 157 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements 27. Earnings per share and diluted shares Basic earnings per share is calculated based on the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is normally computed based on the weighted average number of ordinary shares outstanding including the dilutive effect of shares to be issued in the future under certain arrangements such as option plans. However, as the net result represents a loss in 2024, the diluted earnings per share are equal to the basic earnings per share for 2024. For 2024 and 2023, the basic and diluted earnings per share are: 2024 2023 Net profit (loss) attributable to equity owners of the parent (in US$ ’000) (11,841) (10,548) Weighted average shares outstanding 671,347,279 657,020,521 Basic profit (loss) per share (in US$) (0.018) (0.016) Weighted average diluted shares outstanding 785,412,134 725,463,948 Diluted profit (loss) per share (in US$) (0.018) (0.016) The diluted net loss used in the calculation of dilutive profit per share amounts to US$11.8 million. Difference between the weighted average shares outstanding and the weighted average diluted shares outstanding used for basic profits calculations per share relates to restricted stock units (RSU), options and LTIP. The 81,492,951 shares related to the convertible bonds are anti-dilutive and are therefore excluded from the weighted average number of ordinary shares for the purpose of diluted earnings per share. Diluted shares The composition of the number of shares and share rights outstanding as well as authorized share capital as per December 31, 2024, and the date of these financial statements is provided in the following table. Movements of shares and other instruments between December 31, 2024, and April 2, 2025, are shown in the table below: December 31, 2024 Shares issued Other April 2, 2025 Shares 680,308,735 3,622,343 — 683,931,078 RSU 19,736,309 (89,378) 401,989 20,048,920 Options 24,238,937 (255,000) (530,716) 23,453,221 Convertible bonds 81,492,951 — — 81,492,951 LTIP 18,765,473 (3,277,965) 6,418,792 21,906,300 Issued 824,542,405 — 6,290,065 830,832,470 Available for issue 231,457,595 — (6,290,065) 225,167,530 Authorized share capital 1,056,000,000 — — 1,056,000,000 28. Events after the reporting period New Chief Executive Officer and Executive Director On January 21, 2025, we announced that the Board of Directors had nominated biopharmaceutical leader Mr. Fabrice Chouraqui as Pharming's new Chief Executive Officer and Executive Director, succeeding Mr. Sijmen de Vries. Mr. Chouraqui was appointed for a term of four years at the Extraordinary General Meeting of Shareholders (EGM) that took place on March 4, 2025. Upon the appointment of Mr. Chouraqui, Mr. Sijmen de Vries resigned from the Board of Directors. To ensure a smooth hand-over of tasks and responsibilities, Mr. de Vries will remain a strategic advisor to the new CEO until December 31, 2025. Acquisition of Abliva AB On February 20, 2025, we announced ownership of shares and voting rights in Abliva AB exceeding 90% and thereby initiated the necessary activities to delist the Company from the Nasdaq Stockholm exchange. Following delisting, we expect to be able to start the second wave of patient recruitment for the ongoing pivotal FALCON clinical trial for KL1333 for the treatment of mtDNA-driven primary mitochondrial diseases. Pharming has initiated a compulsory acquisition procedure in respect of the remaining shares in Abliva under the Swedish Companies Act. On March 3, 2025, Nasdaq Stockholm approved Abliva's application for delisting and the last day of trading was on March 17, 2025. With these events, the acquisition of Abliva was completed. As of March 31, 2025, the Company holds 97.47% of ordinary shares of Abliva AB. Pharming Group N.V. Annual Report 2024 | 158 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the consolidated financial statements The acquisition of Abliva will be accounted for as a business combination. Substantially all of the value of the acquisition is concentrated in a single asset, KL1333. Following delisting in March 2025, the acquisition will be reflected in our financial statements beginning with the first quarter 2025. As of the reporting date, the Purchase Price Allocation (PPA) for the acquisition is in progress. Consequently, further disclosures regarding goodwill, as well as the fair value of assets and liabilities, have not yet been completed. The PPA process is ongoing, and once finalized, the appropriate adjustments and disclosures will be made. At this point we expect the US$66.1 million acquisition price to be allocated to the fair value of the acquired identifiable assets and liabilities, with any excess to be recorded as goodwill. We do not expect any P&L impact at the acquisition date, besides recognition of acquisition costs incurred in 2025. At the reporting date, a total of US$2.3 million was incurred in other operating expenses in relation to this transaction. The Board of Directors identified no other events after the reporting period affecting the 2024 financial statements. Pharming Group N.V. Annual Report 2024 | 159 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Company financial statements Company financial statements Company statement of income For the year ended December 31 Amounts in US$ ‘000 notes 2024 2023 Revenues 3 63,110 62,016 Other income 467 — Operating expenses 4 (59,916) (58,840) Operating result 3,661 3,176 Fair value gain (loss) on revaluation 7,041 — Other finance income and expenses 16 2,675 2,990 Finance cost, net 9,716 2,990 Result before tax 13,377 6,166 Income tax credit (expense) 7 (207) 147 Result before share in result of investments 13,170 6,313 Share in result of investments 12 (25,011) (16,861) Profit for the year 11 (11,841) (10,548) The notes are an integral part of these financial statements. Pharming Group N.V. Annual Report 2024 | 160 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Company balance sheet Company balance sheet As at December 31 (after proposed appropriation of net profit) Amounts in US$ ‘000 notes 2024 2023 Non-current assets Intangible assets 5 24,607 28,628 Property, plant and equipment 6 545 881 Right-of-use assets 6 3,186 3,606 Long-term prepayments 90 92 Deferred tax asset 7 10,417 15,559 Financial assets 12 158,906 202,136 Restricted Cash 10 466 488 Total non-current assets 198,217 251,390 Current assets Trade and other receivables 8 3,787 4,011 Marketable securities 9 112,949 151,683 Cash and cash equivalents 10 2,244 3,893 Total current assets 118,980 159,587 Total assets 317,197 410,977 Amounts in US$ ‘000 notes 2024 2023 Equity Share capital 7,769 7,669 Share premium 488,990 478,431 Other reserves (209) (2,057) Accumulated deficit (275,489) (265,262) Shareholders’ equity 11 221,061 218,781 Non current Liabilities Convertible bonds 13 78,154 136,598 Lease liabilities 6 2,907 3,405 Total non-current liabilities 81,061 140,003 Current Liabilities Convertible bonds 13 4,245 1,824 Intercompany payables 11 624 39,361 Trade and other payables 14 9,532 10,313 Lease liabilities 6 674 695 Total current liabilities 15,075 52,193 Total shareholders’ equity and liabilities 317,197 410,977 The notes are an integral part of these financial statements. Pharming Group N.V. Annual Report 2024 | 161 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the Company financial statements Notes to the Company financial statements 1. General Within Pharming, the entity Pharming Group N.V. acts as a holding company of the operating companies. Its activities are limited to the arrangement of financial transactions with third parties and to provide the operating companies with support in the field of legal, financial, human resources, public relations, IT and other services. 2. Summary of material accounting policy information The Company financial statements have been prepared in accordance with accounting principles generally accepted in the Netherlands. The accounting policies applied are the same as those used in the consolidated financial statements in accordance with the provisions of article 362-8 of book 2 of the Dutch Civil Code, except for investments in subsidiaries and intercompany receivables and payables. Investments in subsidiaries are accounted for using the equity method. Intercompany receivables and payables are stated at nominal value. Investments in subsidiaries are those investments with a positive equity value. In the event the equity value of a Group company together with any long-term interests that, in substance, form part of our net investment in the Group company, becomes negative, additional losses are provided for, and a liability is recognized, only to the extent that we have incurred legal or constructive obligations or made payments on behalf of the subsidiary. The Company shall, upon identification of a credit loss on an intercompany loan and/or receivable, eliminate the carrying amount of the intercompany loan and/or receivable for the value of the identified credit loss. 3. Revenues The revenues of the Company relate to intercompany charges to group companies. 4. Expenses by nature Operating expenses in 2024 and 2023 were as follows: Amounts in US$ ‘000 2024 2023 Direct operating expenses (13,477) (19,656) Employee costs (excl. Share based compensation) (25,013) (20,653) Facilities and infrastructure (2,926) (2,748) Share-based compensation (11,253) (9,251) Depreciation and amortization charges (3,667) (3,188) Other operating expenses (3,580) (3,344) Total (59,916) (58,840) Direct operating costs decreased mainly as a result of the Development and Regulatory Milestone payment of US$10.4 million following the first commercial sale of Joenja® in 2023. See note 25. Commitments and contingencies of the consolidated financial statements for more information on the leniolisib milestone commitments. The increased costs are mainly related to the increased employee costs resulting from more staff employed, contractors and consultants hired, following the growth of the organization, one-off costs relating to the public cash offer to the shareholders of Abliva AB to acquire all issued and outstanding shares of Abliva AB and additional costs for (internal) audits. Employee information All employees of Pharming Group N.V. in both 2024 and 2023 were based in the Netherlands and in France. The average number of full-time equivalent employees in 2024 was 93 (2023: 87). The average number of full-time equivalent employees working outside the Netherlands was 18 (2023: 22). Pharming Group N.V. Annual Report 2024 | 162 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the Company financial statements 5. Intangible assets Amounts in US$ ‘000 Development costs RUCONEST® licenses Joenja® license Software Total At cost 250 8,000 23,703 136 32,089 Accumulated: Amortization charges — (2,005) — (101) (2,106) Carrying value at January 1, 2023 250 5,995 23,703 35 29,983 Amortization charges — (680) (1,300) (19) (1,999) Impairment charges (253) — — — (253) Divestments - cost (253) — — — (253) Divestment - accumulated amortization 253 — — — 253 Currency translation - cost 3 251 745 4 1,003 Currency translation - amortization — (76) (26) (4) (106) Movement 2023 (250) (505) (581) (19) (1,355) At cost — 8,251 24,448 140 32,839 Accumulated: Amortization charges — (2,761) (1,326) (124) (4,211) Impairment charges — — — — — Carrying value at December 31, 2023 — 5,490 23,122 16 28,628 Amortization charges — (681) (1,735) (10) (2,426) Impairment charges — — — — — Divestments - cost — — — — — Divestment - accumulated amortization — — — — — Currency translation - cost — (489) (1,449) (8) (1,946) Currency translation - amortization — 192 151 8 351 Movement 2024 — (978) (3,033) (10) (4,021) At cost — 7,762 22,999 132 30,893 Accumulated: Amortization charges — (3,250) (2,910) (126) (6,286) Carrying value at December 31, 2024 — 4,512 20,089 6 24,607 More information is available in note 10. Intangible assets of the consolidated financial statements Pharming Group N.V. Annual Report 2024 | 163 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the Company financial statements 6. Tangible assets 6.1. Property, plant and equipment Property, plant and equipment include leasehold improvements related to office investments in the Company's headquarters and other items such as office furniture and equipment as well as IT-hardware. Amounts in US$ ‘000 Leasehold improvements Machinery and equipment Other Total At cost 405 1,326 1,689 3,420 Accumulated depreciation (388) (933) (1,020) (2,341) Carrying value at January 1, 2023 17 393 669 1,079 Investments — 32 220 252 Other - cost 9 — — 9 Other - accumulated depreciation (9) — — (9) Divestment — (5) — (5) Depreciation charges (6) (140) (332) (478) Depreciation of divestment — 4 — 4 Currency translation - cost 11 41 57 109 Currency translation - amortization (12) (32) (36) (80) Movement 2023 (7) (100) (91) (198) At cost 425 1,394 1,966 3,785 Accumulated depreciation (415) (1,101) (1,388) (2,904) Carrying value at December 31, 2023 10 293 578 881 Investments 7 8 158 173 Other - cost — — — — Other - accumulated depreciation — — — — Divestment — — — — Depreciation charges (6) (112) (351) (469) Depreciation of divestment — — — — Currency translation - cost (26) (83) (123) (232) Currency translation - amortization 25 70 97 192 Movement 2024 — (117) (219) (336) At cost 406 1,319 2,001 3,726 Accumulated depreciation (396) (1,143) (1,642) (3,181) Carrying value at December 31, 2024 10 176 359 545 Pharming Group N.V. Annual Report 2024 | 164 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the Company financial statements 6.2. Leases This note provides information for leases where the Company is a lessee. i. Amounts recognized in the balance sheet The balance sheet shows the following amounts relating to leases: Right of use assets Amounts in US$ ‘000 Buildings Cars Total At cost 5,482 426 5,908 Amortization charges (1,766) (249) (2,015) Carrying value at January 1, 2023 3,716 177 3,893 Additions — 38 38 Remeasurement 271 — 271 Divestments — (74) (74) Depreciation charges (606) (105) (711) Depreciation of divestment — 74 74 Currency translation - cost 177 13 190 Currency translation - amortization (67) (8) (75) Movement 2023 (225) (62) (287) At cost 5,930 403 6,333 Accumulated depreciation (2,439) (288) (2,727) Carrying value at December 31, 2023 3,491 115 3,606 Additions — 338 338 Remeasurement 338 — 338 Divestment (305) (227) (532) Depreciation charges (654) (118) (772) Depreciation of divestment 186 227 413 Currency translation - cost (353) (29) (382) Currency translation - amortization 164 13 177 Movement 2024 (624) 204 (420) At cost 5,610 485 6,095 Accumulated depreciation (2,743) (166) (2,909) Carrying value at December 31, 2024 2,867 319 3,186 Lease liabilities Amounts in US$ ‘000 2024 2023 Current 674 695 Non-current 2,907 3,405 Balance at December 31 3,581 4,100 ii. Amounts recognized in the statement of income The statement of income shows the following amounts relating to leases: Amounts in US$ ‘000 2024 2023 Depreciation right of use buildings (654) (606) Depreciation right of use cars (118) (105) Interest expense (note 16) (231) (242) Total expense right of use assets (1,003) (953) Pharming Group N.V. Annual Report 2024 | 165 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the Company financial statements 7. Income tax The Company represents the head of the Dutch fiscal unity and the disclosures in this note relate to the tax position of the entire Dutch fiscal unity. Deferred income tax The net balance of deferred tax assets and liabilities is specified as follows: Amounts in US$ ‘000 2024 2023 Total deferred tax assets 18,165 20,149 Total deferred tax liabilities (7,748) (4,590) Total net balance of deferred tax assets and liabilities 10,417 15,559 The significant components and annual movements of deferred income tax assets as of December 31, 2024, and January 1, 2024, are as follows: Amounts in US$ ‘000 2024 2023 Deferred tax assets Intangible assets — — Other 45 595 Lease liabilities 6,215 7,044 Tax losses 11,905 12,510 Total deferred tax assets 18,165 20,149 Amounts in US$ ‘000 Intangible assets Other Lease liabilities Tax losses Total At January 1, 2023 9,874 979 7,043 3,498 21,394 (Charged)/credited - to profit or loss (9,988) — (216) 8,731 (1,473) - other movement — — — — — - to other comprehensive income — (406) — — (406) - currency translation 114 22 217 281 634 At December 31, 2023 — 595 7,044 12,510 20,149 (Charged)/credited - to profit or loss — 30 (429) (399) (798) - other movement — — — — — - to other comprehensive income — (568) — 540 (28) - currency translation — (12) (400) (746) (1,158) At December 31, 2024 — 45 6,215 11,905 18,165 For more information on deferred taxes see note 9. Income tax to the consolidated financial statements. Pharming Group N.V. Annual Report 2024 | 166 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the Company financial statements The component and annual movement of deferred income tax liabilities as of December 31, 2024, and January 1, 2024, are as follows: Amounts in US$ ‘000 2024 2023 Deferred tax liabilities Tangible fixed assets (2,681) (4,590) Convertible bonds (5,067) — Total deferred tax liabilities (7,748) (4,590) Amounts in US$ ‘000 Tangible fixed assets Convertible bonds Total At January 1, 2023 (5,813) — (5,813) (Charged)/credited - to profit or loss 1,378 1,378 - to other comprehensive income — — — - currency translation (155) (155) At December 31, 2023 (4,590) — (4,590) (Charged)/credited - to profit or loss 1,709 (1,038) 671 - to other comprehensive income — (4,251) (4,251) - currency translation 200 222 422 At December 31, 2024 (2,681) (5,067) (7,748) Income tax expenses In 2024, the Company was liable to a tax expense of US$0.2 million. 8. Trade and other receivables Amounts in US$ ‘000 2024 2023 Prepaid expenses 635 310 Value added tax 2,356 2,357 Other receivables 181 86 Taxes and Social Securities 615 1,258 Balance at December 31 3,787 4,011 Trade and other receivables at December 31, 2024, are substantially short-term in nature. 9. Marketable securities The backgrounds of the Marketable securities have been provided in note 14. Marketable securities of the consolidated financial statements. 10. Restricted cash, Cash and cash equivalents Amounts in US$ ‘000 2024 2023 Restricted cash (non-current) 466 488 Cash and cash equivalents 2,244 3,893 Total restricted cash, cash and cash equivalents 2,710 4,381 The holding company Pharming Group N.V. has entered into a joint liability agreement with a bank and other Group companies. Pursuant to this agreement, the entity at December 31, 2024, is jointly liable for commitments relating to bank guarantees from other group companies for an aggregate amount of US$0.5 million with a maturity of more than one year after the end of the reporting year. Pharming Group N.V. Annual Report 2024 | 167 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the Company financial statements 11. Shareholders' equity The Company's authorized share capital amounts to US$10.9 million (€10.6 million , exchange rate (EUR:US$) equals 1:1.0350) and is divided into 1,056,000,000 ordinary shares with a nominal value of €0.01 each. All 680,308,735 (€6.8 million) shares outstanding at December 31, 2024, have been fully paid-up. Movements in shareholders' equity for 2024 and 2023 were as follows: Amounts in US$ ‘000 2024 2023 Balance at January 1 218,781 204,638 Net profit (loss) (11,841) (10,548) Foreign currency translation (11,901) 7,103 Total comprehensive income (23,742) (3,445) Income tax benefit from excess tax deductions related to share-based payments (66) 204 Share-based compensation 11,248 9,251 Options exercised 2,615 8,133 Conversion rights of convertible bonds 12,225 — Total transactions with owners 26,022 17,588 Balance at December 31 221,061 218,781 For a detailed movement schedule of equity for the years 2024 and 2023, please refer to note 18. Shareholders' equity of the consolidated financial statements. 12. Financial assets Movements of the provision for investments for the years 2024 and 2023 were as follows: Amounts in US$ ‘000 2024 2023 Balance at January 1 (91,881) (64,361) Reclassification to the provision for investments — 10,414 Share in results of investments (36,817) (35,421) Contributions to investments 207,274 — Release of provision (80,596) — Exchange rate effects 1,669 (2,513) Balance at December 31 (351) (91,881) At year-end 2024 and 2023, the provision for subsidiaries was set off against intercompany receivable balances in Pharming Group N.V.: Amounts in US$ ‘000 2024 2023 Provision for investments (351) (91,881) Investments in subsidiaries with positive equity 141,705 31,416 Receivable from group companies 17,552 262,601 Net financial assets 158,906 202,136 See note 2.3 Basis of consolidation for a list of direct subsidiaries of Pharming Group N.V. The Company's direct investments are: Entity Registered office Investment % Pharming Americas B.V. The Netherlands 100% Pharming Intellectual Property B.V. The Netherlands 100% Pharming Technologies B.V. The Netherlands 100% Broekman Instituut B.V. The Netherlands 100% Pharming Healthcare, Inc. The United States 100% ProBio, Inc. The United States 100% Pharming Group N.V. Annual Report 2024 | 168 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Notes to the Company financial statements 13. Convertible bonds The backgrounds of the convertible bonds have been provided in note 19. Convertible bonds of the consolidated financial statements. 14. Trade and other payables Amounts in US$ ‘000 2024 2023 Accounts payable 1,030 830 Other payables 8,502 9,483 Balance at December 31 9,532 10,313 Trade and other payables at December 31, 2024, are short-term in nature. 15. Related party transactions Related parties' disclosure relates mainly to transactions with group companies and the associate company BioConnection Investments B.V. and with the key management of Pharming. Related party transactions with group companies consist of recharged costs for US$63.1 million (2023: US$62.0 million) and are recognized as revenues. These transactions take place in the ordinary course of business and are at arm's length. In 2024, Pharming Group N.V. did not engage in any transactions with BioConnection Investments B.V. All direct transactions with members of the Board of Directors have been disclosed in notes 23. Board of Directors and of the consolidated financial statements. 16. Other finance income and expenses Amounts in US$ ‘000 2024 2023 Interest income 4,345 3,231 Intercompany interest, net 7,355 5,430 Foreign currency results 58 (423) Interest on convertible bonds (7,699) (4,876) Fees and expenses on repayment and issuance convertible bonds (1,151) — Interest leases (231) (242) Other finance expenses (2) (130) Total other finance income and expenses 2,675 2,990 17. Commitments and contingencies The backgrounds of the commitments and contingencies have been provided in note 25. Commitments and contingencies of the consolidated financial statements. Of these, the leniolisib milestone commitments relate to Pharming Group N.V. The Company has issued declarations of joint and several liabilities for debts arising from the actions of Dutch consolidated participating interests, as described in article 2:403 of the Netherlands Civil Code. Other information Appropriation of result 170 Independent auditor's report 171 About Pharming 177 Glossary 191 References 194 Pharming Group N.V. Annual Report 2024 | 170 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Appropriation of result Appropriation of result Article 21.1 of the articles of association reads as follows: 'the Board of Directors shall annually determine the amount of the distributable profit – the surplus on the profit and loss account – to be reserved'. The Board of Directors proposes to forward the net loss for the year 2024 of US$11.8 million to the accumulated deficit. Leiden, April 2, 2025 The Board of Directors Fabrice Chouraqui – Executive member of the Board of Directors, President and Chief Executive Officer The original copy has been signed by the Board of Directors. Pharming Group N.V. Annual Report 2024 | 171 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Independent auditor's report Independent auditor's report To: The shareholders and the Board of Directors of Pharming Group N.V. REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS 2024 INCLUDED IN THE ANNUAL REPORT Our opinion We have audited the financial statements 2024 of Pharming Group N.V., based in Leiden. The financial statements comprise the consolidated and company financial statements. In our opinion: • The accompanying consolidated financial statements give a true and fair view of the financial position of Pharming Group N.V. as at December 31, 2024, and of its result and its cash flows for 2024 in accordance with International Financial Reporting Standards as adopted by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil Code. • The accompanying company financial statements give a true and fair view of the financial position of Pharming Group N.V. as at December 31, 2024, and of its result for 2024 in accordance with Part 9 of Book 2 of the Dutch Civil Code. The consolidated financial statements comprise: 1. The consolidated statement of financial position as at December 31, 2024. 2. The following statements for 2024: the consolidated income statement, the consolidated statements of comprehensive income, changes in equity and cash flows. 3. The notes comprising material accounting policy information and other explanatory information. The company financial statements comprise: 1. The company balance sheet as at December 31, 2024. 2. The company profit and loss account for 2024. 3. The notes comprising a summary of the accounting policies and other explanatory information. Basis for our opinion We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the 'Our responsibilities for the audit of the financial statements' section of our report. We are independent of Pharming Group N.V. in accordance with the EU Regulation on specific requirements regarding statutory audit of public-interest entities, the Wet toezicht accountantsorganisaties (Wta, Audit firms supervision act), the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore, we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics for Professional Accountants). We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Information in support of our opinion We designed our audit procedures in the context of our audit of the financial statements as a whole and in forming our opinion thereon. The following information in support of our opinion was addressed in this context, and we do not provide a separate opinion or conclusion on these matters. Materiality Based on our professional judgment we determined the materiality for the financial statements as a whole at US$ 3.8 million. The materiality is based on 1.3% of revenue from continuing operations. We have also taken into account misstatements and/or possible misstatements that in our opinion are material for the users of the financial statements for qualitative reasons. We agreed with the Board of Directors that misstatements in excess of US$ 189 thousand, which are identified during the audit, would be reported to them, as well as smaller misstatements that in our view must be reported on qualitative grounds. Pharming Group N.V. Annual Report 2024 | 172 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Independent auditor's report Scope of the group audit Pharming Group N.V. is at the head of a group of components. The financial information of this group is included in the financial statements of Pharming Group N.V. Based on our risk assessment, we determined the nature, timing and extent of audit procedures to be performed including determining the components at which to perform audit procedures. In establishing the overall group audit strategy and plan, we determined the type of work that needed to be performed at the components. All audit procedures on both group and component level were performed by the group engagement team and we did not make use of component auditors. Our group audit mainly focused on the components in the Netherlands and the United States as they represent the vast majority of the group's activities. In addition, we performed analytical procedures with regards to the portion of significant account balances included in other components that were not selected for testing to ensure that we obtained sufficient and appropriate audit evidence on a consolidated level. By performing the procedures mentioned above at components, together with additional procedures at group level, we have been able to obtain sufficient and appropriate audit evidence about the group's financial information to provide an opinion on the financial statements. Audit approach fraud risks We identified and assessed the risks of material misstatements of the financial statements due to fraud. During our audit we obtained an understanding of the company and its environment and the components of the system of internal control, including the risk assessment process and management's process for responding to the risks of fraud and monitoring the system of internal control and how the Board of Directors exercises oversight, as well as the outcomes. We evaluated Pharming’s fraud risk assessment and made inquiries with the Board of Directors, those charged with governance and others within the group. We evaluated several fraud risk factors to consider whether those factors indicate a risk of material misstatement due to fraud. We involved our forensic specialists in our risk assessment and in determining the audit response. We evaluated the design and relevant aspects of the system of internal control and in particular the fraud risk assessment, as well as, among others, the code of conduct, whistle blower procedures and incident registration. We evaluated the design and the implementation and, where considered appropriate, tested the operating effectiveness, of internal controls designed to mitigate fraud risks. As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect to financial reporting fraud, misappropriation of assets and bribery and corruption in close co-operation with our forensic specialists. We evaluated whether these factors indicate that a risk of material misstatement due to fraud is present. We identified the following fraud risks and performed the following specific procedures: • We identified a risk of material misstatement due to fraud related to revenue recognition related to the estimate of the U.S. revenue rebate accrual mainly consisting out of U.S. Medicaid. Refer to 'Our key audit matters' for our procedures performed. • Furthermore, we identified a risk of material misstatement due to fraud related to management override of controls. Management is in a unique position to perpetrate fraud because of management's ability to manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. We incorporated elements of unpredictability in our audit. We also considered the outcome of our other audit procedures and evaluated whether any findings were indicative of fraud or non- compliance. We considered available information and made enquiries of relevant executives, directors (including internal audit and legal counsel) and the Board of Directors. We tested the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements. We evaluated whether the selection and application of accounting policies by the group, particularly those related to subjective measurements and complex transactions, may be indicative of fraudulent financial reporting. We evaluated whether the judgments and decisions made by management in making the accounting estimates included in the financial statements indicate a possible bias that may represent a risk of material misstatement due to fraud. Management insights, estimates and assumptions that might have a major impact on the financial statements are disclosed in note 2.5 “Material accounting judgements and estimates” of the financial statements. We performed a retrospective review of management judgments and assumptions related to significant accounting estimates reflected in prior year financial statements. The evaluation of the U.S. revenue rebate related liability is a significant area to our audit as the determination of the rebate accrual is subject to significant management judgment. To evaluate the reasonableness of management's estimates and Pharming Group N.V. Annual Report 2024 | 173 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Independent auditor's report assumptions required a high degree of auditor judgment and an increased extent of effort. Reference is made to the section “Our key audit matters”. For significant transactions we evaluated whether the business rationale of the transactions suggests that they may have been entered into to engage in fraudulent financial reporting or to conceal misappropriation of assets. This all did not lead to indications for fraud potentially resulting in material misstatements. Audit approach compliance with laws and regulations We assessed the laws and regulations relevant to the company through discussion with the Board of Directors, legal counsel and reading minutes and reports of internal audit. We involved our forensic specialists in this evaluation. As a result of our risk assessment procedures, and while realizing that the effects from non- compliance could considerably vary, we considered the following laws and regulations: (corporate) tax law, the requirements under the International Financial Reporting Standards as adopted by the European Union (EU-IFRS) and Part 9 of Book 2 of the Dutch Civil Code with a direct effect on the financial statements as an integrated part of our audit procedures, to the extent material for the financial statements. We obtained sufficient appropriate audit evidence regarding provisions of those laws and regulations generally recognized to have a direct effect on the financial statements. Apart from these, Pharming Group N.V. is subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts and/or disclosures in the financial statements, for instance, through imposing fines or litigation. Given the nature of Pharming Group N.V.'s business and the complexity of FDA and other healthcare authority regulation, there is a risk of non-compliance with the requirements of such laws and regulations. In addition, we considered major laws and regulations applicable to listed companies. Our procedures are more limited with respect to these laws and regulations that do not have a direct effect on the determination of the amounts and disclosures in the financial statements. Compliance with these laws and regulations may be fundamental to the operating aspects of the business, to Pharming Group N.V.'s ability to continue its business, or to avoid material penalties (e.g., compliance with the terms of operating licenses and permits or compliance with environmental regulations) and therefore non-compliance with such laws and regulations may have a material effect on the financial statements. Our responsibility is limited to undertaking specified audit procedures to help identify non-compliance with those laws and regulations that may have a material effect on the financial statements. Our procedures are limited to (i) inquiry of management, the Board of Directors and others within Pharming Group N.V. as to whether Pharming Group N.V. is in compliance with such laws and regulations and (ii) inspecting correspondence, if any, with the relevant licensing or regulatory authorities to help identify non-compliance with those laws and regulations that may have a material effect on the financial statements. Naturally, we remained alert to indications of (suspected) non-compliance throughout the audit. Finally, we obtained written representations that all known instances of (suspected) fraud or non- compliance with laws and regulations have been disclosed to us. Audit approach going concern We are responsible for obtaining reasonable assurance that the group is able to continue as a going concern. Management is responsible to assess the group's ability to continue as a going concern and disclosing in the financial statements any events or circumstances that may cast significant doubt on the group's ability to continue as a going concern. As explained in the note 3. “Going concern assessment” and note 26 “Financial risk management ”, management has prepared the financial statements of Pharming Group N.V. based on the going concern assumption. No events or circumstances have been identified which cause significant doubt about the entity's ability to continue its operations (going concern risks). Our procedures to evaluate the going concern assessment of management include: • Consider whether management's assessment of going concern contains all relevant information of which we are aware as a result of our audit and review of the other information. In addition, we inquired with management about the key assumptions underlying the going concern assessment. • Inquiry with management regarding their knowledge of events and/or circumstances beyond the period of management's assessment. • We reconciled the cash and cash equivalents position as used in the going concern assessment to the audited position at December 31, 2024. • We evaluated managements' financial forecasts and analysis prepared for a period of at least 12- months from the date of preparation of the financial statements. This included consideration of the reasonableness of key underlying assumptions by evaluating historically realized and future expected operating and capital expenditure as well as evaluating mathematical accuracy of the assessment. • We evaluated the adequacy of disclosures made in the financial statements in respect of going concern. Our audit procedures did not produce results that were inconsistent with management's assumptions and judgments in applying the going concern assumption. Pharming Group N.V. Annual Report 2024 | 174 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Independent auditor's report Our key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements. We have communicated the key audit matters to the Board of Directors. The key audit matters are not a comprehensive reflection of all matters discussed. Key audit matter Trade and other payables — U.S. Revenue Rebate Accruals Description As of December 31, 2024, the Company recognized U.S. revenue rebate accruals. The sales in the United States are subject to rebates relating directly to customers or to ultimate reimbursement claims from government or insurance payers, mainly consisting of U.S. Medicaid ("U.S. revenue rebate accruals"). These are accounted for on an estimated basis. The U.S. revenue rebate accrual involves the use of significant assumptions and judgments in its calculation. These significant assumptions and judgments include historical claims experience, unbilled claims, and claims submission time lags. Given the complexity of this estimate, together with the limited amount of historical data available and judgments necessary to develop this estimate, and the internal control over financial reporting deficiencies identified, auditing this estimate required both extensive audit effort and a high degree of auditor judgment when performing auditing procedures and evaluating the results of those procedures, and therefore we identified the U.S. revenue rebate accruals as a key audit matter. The company's disclosures concerning these estimates are included in notes 2.4, 2.5, 5 and 21 to the consolidated financial statements. How the key audit matter was addressed in the audit Our audit procedures related to the assumptions and judgments made by management in estimating the U.S. revenue rebate accruals included the following, amongst others: • We evaluated the appropriateness and consistency of the Company's method, data, and assumptions used to calculate the U.S. revenue rebate accruals. • We tested the mathematical accuracy of the U.S. revenue rebate accruals calculation. • We tested significant assumptions and key inputs used to calculate the U.S. revenue rebate accruals, namely, testing rebate claims received during the financial year against source documentation and assessing the reasonableness of the Board of Directors' forecast by comparing to historical claims. • We evaluated the Company's ability to estimate U.S. revenue rebate accruals accurately by comparing actual claims received during the current year to historical estimates. Our observations Our procedures did not result in any reportable material matters. REPORT ON THE OTHER INFORMATION INCLUDED IN THE ANNUAL REPORT The annual report contains other information, in addition to the financial statements and our auditor's report thereon. The other information consists of: • The director's report including, amongst others, the report of the Remuneration Committee. • Other information as required by Part 9 of Book 2 of the Dutch Civil Code. Based on the following procedures performed, we conclude that the other information: • Is consistent with the financial statements and does not contain material misstatements. • Contains all the information regarding the management report and the other information as required by Part 9 of Book 2 of the Dutch Civil Code. We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements. By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is substantially less than the scope of those performed in our audit of the financial statements. The board is responsible for the preparation of the other information, including the directors' report in accordance with Part 9 of Book 2 of the Dutch Civil Code. Pharming Group N.V. Annual Report 2024 | 175 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Independent auditor's report REPORT ON OTHER LEGAL and REGULATORY REQUIREMENTS and ESEF Engagement We were engaged by a resolution at the Annual General Meeting of Shareholders as auditor of Pharming Group N.V. on May 22, 2019, as of the audit for the year 2019 and have operated as statutory auditor ever since that financial year. No prohibited non-audit services We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on specific requirements regarding statutory audit of public-interest entities. European Single Electronic Format (ESEF) Pharming Group N.V. has prepared its annual report in ESEF. The requirements for this are set out in the Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single electronic reporting format (hereinafter: the RTS on ESEF). In our opinion, the annual report, prepared in XHTML format, including the (partly) marked-up consolidated financial statements, as included in the reporting package by Pharming Group N.V. complies in all material respects with the RTS on ESEF. Management is responsible for preparing the annual report including the financial statements in accordance with the RTS on ESEF, whereby management combines the various components into one single reporting package. Our responsibility is to obtain reasonable assurance for our opinion whether the annual report in this reporting package complies with the RTS on ESEF. We performed our examination in accordance with Dutch law, including Dutch Standard 3950N 'Assurance-opdrachten inzake het voldoen aan de criteria voor het opstellen van een digitaal verantwoordingsdocument' (assurance engagements relating to compliance with criteria for digital reporting). Our examination included amongst others: • Obtaining an understanding of the company's financial reporting process, including the preparation of the reporting package. • Identifying and assessing the risks that the annual report does not comply in all material respects with the RTS on ESEF and designing and performing further assurance procedures responsive to those risks to provide a basis for our opinion, including: - obtaining the reporting package and performing validations to determine whether the reporting package containing the Inline XBRL instance and the XBRL extension taxonomy files has been prepared in accordance with the technical specifications as included in the RTS on ESEF; - examining the information related to the consolidated financial statements in the reporting package to determine whether all required mark-ups have been applied and whether these are in accordance with the RTS on ESEF. DESCRIPTION OF RESPONSIBILITIES REGARDING THE FINANCIAL STATEMENTS Responsibilities of the Board of Directors for the financial statements The Board of Directors is responsible for the preparation and fair presentation of the financial statements in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code. Furthermore, the Board of Directors is responsible for such internal control as the board determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. As part of the preparation of the financial statements, the Board of Directors is responsible for assessing the company's ability to continue as a going concern. Based on the financial reporting frameworks mentioned, the board should prepare the financial statements using the going concern basis of accounting unless the Board of Directors either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. The Board of Directors should disclose events and circumstances that may cast significant doubt on the company's ability to continue as a going concern in the financial statements. The non-executive directors from the Board of Directors are responsible for overseeing the company's financial reporting process. Pharming Group N.V. Annual Report 2024 | 176 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Independent auditor's report Our responsibilities for the audit of the financial statements Our objective is to plan and perform the audit engagement in a manner that allows us to obtain sufficient appropriate audit evidence for our opinion. Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect all material misstatements, whether due to fraud or error, during our audit. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion. We have exercised professional judgment and have maintained professional scepticism throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit included among others: • Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. • Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board. • Concluding on the appropriateness of the board's use of the going concern basis of accounting, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern. • Evaluating the overall presentation, structure and content of the financial statements, including the disclosures. • Evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We are responsible for planning and performing the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the financial statements. We are also responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We bear full responsibility for the auditor's report. We communicate with the non-executive directors from the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control that we identified during our audit. In this respect we also submit an additional report to the audit committee in accordance with Article 11 of the EU Regulation on specific requirements regarding statutory audit of public-interest entities. The information included in this additional report is consistent with our audit opinion in this auditor's report. We provide the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the Board of Directors, we determine the key audit matters: those matters that were of most significance in the audit of the financial statements. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, not communicating the matter is in the public interest. Eindhoven, 2 April 2025 Deloitte Accountants B.V. A.J.M. Zwama-Bombeeck Pharming Group N.V. Annual Report 2024 | 177 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming About Pharming Pharming is a global biopharmaceutical company dedicated to transforming the lives of patients with rare, debilitating, and life- threatening diseases. We are commercializing and developing a portfolio of innovative medicines, including small molecules and biologics, to serve the unserved rare disease patient. Our commitment to the rare disease community requires us to be a sustainable partner for all stakeholder groups including but not limited to patients, employees, healthcare professionals, third-party suppliers and partners, our shareholders, and the wider society. We are headquartered in Leiden, the Netherlands, with our U.S. headquarters located in Warren, New Jersey. We are dually listed on the Euronext Amsterdam (PHARM) and Nasdaq Global Select (PHAR) exchanges. Business overview Our first commercialized product, RUCONEST®, is the first and only recombinant C1 esterase inhibitor, or rhC1INH, protein replacement therapy. It is approved for the treatment of acute attacks in adult and adolescent patients with hereditary angioedema, or HAE. RUCONEST® is commercialized in the United States, the European Economic Area, and the United Kingdom through our own sales and marketing organization, and in the rest of the world through our distribution network. Our second commercialized product, Joenja®(leniolisib), is a small molecule kinase inhibitor that was in-licensed from Novartis in 2019. Joenja® is approved in the United States, United Kingdom, Australia and Israel, for the treatment of activated phosphoinositide 3-kinase delta, or PI3Kδ, syndrome, or APDS, a primary immunodeficiency, or PID, in adult and pediatric patients 12 years of age and older. Joenja® is commercialized in the United States through our own sales and marketing organization. We have filed for regulatory approval of leniolisib for APDS in additional key markets and have ongoing clinical trials to support regulatory filings for approval in Japan and for pediatric label expansion. We are also developing leniolisib in additional PIDs, which affect significantly more patients than APDS, for which we have initiated two Phase II studies. The first of these studies is focused specifically on genetically identifiable PIDs with immune dysregulation linked to altered PI3Kδ signaling. This study includes ALPS-FAS, CTLA4 haploinsufficiency, NFKB1 haploinsufficiency and PTEN deficiency, among others. The second is a broader Phase II study for common variable immunodeficiency, or CVID, with immune dysregulation identified independently of genetics. These PID populations represent a significantly larger market opportunity than APDS alone, with the broader CVID with immune dysregulation patient population including most of the narrower genetically identified PIDs with immune dysregulation linked to altered PI3Kẟ signaling population. We completed the acquisition of Abliva AB in March 2025, strengthening our late-stage pipeline with the addition of KL1333. KL1333 is a potential first-in-disease asset for mitochondrial DNA- driven primary mitochondrial diseases, being studied in a pivotal clinical trial with a positive interim analysis achieved. We continue to pursue a strategy focused on the value-accretive opportunities to grow our portfolio and pipeline in rare diseases. The following chart summarizes the status of our commercialized product and development program portfolio: Pharming Group N.V. Annual Report 2024 | 178 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming Our markets RUCONEST® - HAE Market The value of the combined global acute and prophylactic market in 2024 for hereditary angioedema, or HAE, medications is, according to Global Data, approximately $3.3 billion per annum. Joenja® (leniolisib) - APDS Market Discovered in 2013, activated phosphoinositide 3-kinase delta, or PI3Kδ, syndrome, or APDS, is a rare, genetic condition which affects approximately 1.5 people per million globally, according to literature.3,6 United States (U.S.) We market and distribute RUCONEST® directly through our in- house commercial organization based in the U.S. The U.S. market has evolved with 75% of patients now using a prophylactic therapy, up from 30% in 2018. Many patients on prophylactic therapy will experience breakthrough attacks which will require an acute medication like RUCONEST®. As of December 31, 2023, RUCONEST® was the second most prescribed acute treatment, after icatibant, and serves patients across the frequency and severity of attacks spectrum. Joenja®, the first and only approved treatment for APDS, received FDA approval for patients 12 years of age and older on March 24, 2023. We market Joenja® directly in the U.S. European Economic Area (EEA) and United Kingdom (U.K.) In January 2020, we reacquired the commercial rights to distribute RUCONEST® in Europe from Swedish Orphan Biovitrum AB, or SOBI. The European HAE market is highly competitive, especially with the launch of generic icatibant. While offering broader patient choice, it impacts the uptake of RUCONEST® in Europe. Nevertheless, the efficacy and reliability of RUCONEST® in both therapeutic effect and supply is leading to greater adoption by national medicines agencies and important clinics across the region. Joenja® (leniolisib) is currently under regulatory review with the European Medicines Agency, or EMA. On September 25, 2024, the U.K. Medicines and Healthcare products Regulatory Agency, or MHRA, granted marketing authorization for Joenja® (leniolisib) for the treatment of APDS in adult and adolescent patients 12 years of age and older. On March 13, 2025, the National Institute for Health and Care Excellence, or NICE, published positive final draft guidance recommending Joenja® (leniolisib) for reimbursement and use within the National Health Service, or NHS, in England and Wales. Middle East & North Africa (MENA) We create access to RUCONEST® in the Middle East and North Africa, or MENA, through a mixture of direct sales and marketing, local partnerships, commercial partners and the ongoing utilization of the HAEi GAP program in certain territories. In Israel, our existing partner Kamada has consolidated its RUCONEST® activities. In addition, in 2021 we entered into an exclusive license agreement with Newbridge Pharmaceuticals for the distribution of RUCONEST® in the MENA. On April 30, 2024, the Israeli Ministry of Health granted Marketing Authorization for Joenja® (leniolisib) for the treatment of APDS in adult and pediatric patients 12 years of age and older. We have an agreement with Kamada Ltd., an Israel-based commercial stage global biopharmaceutical company with a portfolio of marketed products for rare and serious conditions focused on diseases of limited treatment alternatives, to commercialize Joenja® in Israel. Reimbursement negotiations for leniolisib with the Ministry of Health in Israel are ongoing. China We have granted the China State Institute of Pharmaceutical Industry, or CSIPI, an exclusive license to commercialize rhC1INH in China and the CSIPI is collaborating with the Chengdu Institute of Biological Products, or CDIBP. On December 15, 2023, the CDIBP announced that it received the clinical trial permit from the Center for Drug Evaluation of the National Medical Product Administration for the clinical development of rhC1INH in China. We may receive certain regulatory and manufacturing-associated milestones, and we are eligible to receive low to mid-single digit royalties from sales in China by the CSIPI, affiliates of the CSIPI and sublicensees of the CSIPI. Other markets RUCONEST® continues to be commercialized in Colombia, Costa Rica, the Dominican Republic and Panama through our partner, Cytobioteck. RUCONEST® is also available globally through the HAEi Global Access Program, or HAEi GAP, for patients who need it. Market expansion - leniolisib Our strategy is to make leniolisib available for APDS patients in key markets globally. We intend to market leniolisib directly in the U.K., Japan, Germany, France, Italy, Spain, Canada and Australia, and are building the necessary commercial capabilities. Pharming Group N.V. Annual Report 2024 | 179 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming Commercial products RUCONEST® for treatment of hereditary angioedema (HAE) Our lead product, RUCONEST® is the first and only recombinant C1 inhibitor protein replacement therapy that is approved for the treatment of acute attacks in adult and adolescent patients with HAE. HAE is a serious, debilitating, and potentially life-threatening disease. HAE is a rare genetic condition that occurs in between approximately 1 in 10,000 and 1 in 50,000 people worldwide.12 In its most common forms, HAE is caused by a functional deficiency of a plasma protein called C1-inhibitor, or C1INH. The patients' C1INH deficiency leads to the uncontrolled activation of the complement cascade, resulting in the over- production of some mediators, leading to the leaking of fluid from blood vessels to the tissue space. The most common symptoms of an HAE attack are caused by overproduction of the bradykinin initiator protein, kallikrein, and thus excessive leakage of fluid into tissue spaces (edema or swelling). Patients may suffer bouts of excruciating abdominal pain, nausea and vomiting that is exacerbated by swelling in the intestinal wall. Airway, or laryngeal, swelling is particularly dangerous and can lead to death by asphyxiation. Untreated, attacks can last for several days. The approach to treatment has been initially focused on replacing the missing protein with exogenous C1INH, either collected from pooled plasma or derived recombinantly. More recently, with greater understanding of the pathogenesis, treatments have been developed to block the patients' contact system. RUCONEST® has been shown to normalize C1INH activity levels and has been shown to be clinically relevant in HAE attack treatment. The standard posology for the treatment of HAE attacks is 50 units per kilogram of the reconstituted product. RUCONEST® is administered through a slow intravenous, or IV, injection over approximately five minutes. One vial contains 2100 U of lyophilized product to be reconstituted with 14ml of water for injection. RUCONEST® irreversibly binds to several target molecules, including, importantly the coagulation factor FXII and the protease kallikrein, which (when unbound) cleaves a plasma protein into bradykinin and other products. By binding to and chemically deactivating these molecules, RUCONEST® stops the production of bradykinin and all other mediators and thereby stops the HAE attack. Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming The figure to the right demonstrates the importance of C1INH on multiple inflammatory cascades, and its significance for HAE. Adapted from a clinical cascade developed in partnership with Dr. Allen Kaplan. This is a current scientific understanding of the cascades. Clinical implications are unknown. Market access We currently market RUCONEST® in the United States, the United Kingdom and the European Economic Area through our own sales force. We have various access programs designed to ensure that physicians can request RUCONEST® on behalf of individual patients, who meet the eligibility criteria and receive local health authority approval, in certain countries where RUCONEST® is not commercially available. For additional information on partner distribution networks please see Our markets. section of this Annual Report. Patent protection RUCONEST® has patent protection in the U.S. and EU until October 7, 2026, as well as biologics reference product exclusivity in the United States expiring July 16, 2026. Competition In the core U.S. market for RUCONEST®, there are four approved therapies to treat acute HAE attacks and an additional four therapies for attack prevention. These therapies have transformed the lives of HAE patients. The early years of treatment focused on limiting the consequences of attacks, and very few patients used prophylactic medications. With the improvement of prophylactic therapy, many patients now use this and have had significant benefit. Nevertheless, patients taking prophylactic medications still experience breakthrough attacks and immediate access to an acute treatment medication is required and recommended in all HAE treatment guidelines. With two of the prophylactic medications (HAEGARDA® and TAKHZYRO®), published data from randomized-controlled studies13 indicate that approximately 50% of patients still had breakthrough attacks. Likewise, with the oral prophylactic medication ORLADEYO®, 90% of patients had breakthrough attacks in a randomized-controlled clinical trial. Lastly, many patients need to re-dose acute therapies that do not address the underlying C1INH deficiency. In addition to the approved therapies to treat acute HAE attacks and to prevent attacks, there are several development stage candidates expected to receive approval in the U.S. RUCONEST®, a recombinant C1 esterase inhibitor that blocks production of bradykinin, is an option for patients who continue to experience breakthrough attacks while on prophylaxis or for patients who need to re-dose other acute therapies due to relapse of their attacks. As RUCONEST® is intravenously delivered it is immediately and completely bioavailable to stop the progression of an HAE attack. Pharming Group N.V. Annual Report 2024 | 181 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming Joenja® (leniolisib) for the treatment of activated phosphoinositide 3-kinase delta (PI3Kẟ) syndrome (APDS) Discovered in 2013, APDS is a rare, genetic condition which affects approximately 1.5 people per million globally, according to literature.3,6 It is a clinically heterogenous disease that can lead to end-organ damage and early mortality. APDS is a progressive primary immunodeficiency and regulatory disorder characterized by severe, recurrent sinopulmonary infections; persistent, severe, or recurrent herpes virus infections, particularly Epstein-Barr virus, or EBV, and Cytomegalovirus, or CMV; lymphadenopathy, hepatomegaly, splenomegaly, and/or nodular lymphoid hyperplasia; autoimmune cytopenias; enteropathy; bronchiectasis; possible malignancy, especially lymphoma; and dysregulated B and T cell function. Although awareness of APDS has increased since its discovery in 2013, the disease may still be misdiagnosed in patients not seen by a specialist. Increased education among physicians is needed to aid early diagnosis and accurate treatment. Diagnostic delay may lead to an accumulation of damage over time, including bronchiectasis. APDS patients also have a significant risk of developing lymphoma due to the unchecked lymphoproliferation. Management of APDS frequently includes treatment such as prophylactic antibiotics, immunoglobulin replacement, immunosuppression, chemotherapy for lymphoma, or stem cell transplantation. Many of these drugs can cause serious side effects and transplant comes with a significant risk of morbidity and mortality.14 Patients with APDS have been reported to experience early mortality with their survival probability being up to 28% lower than the global population.15 Lymphoma has been reported to be the leading cause of death in patients with APDS (24%), followed by infections (17%).16 Joenja® (leniolisib) Joenja® (leniolisib) is an oral small molecule PI3Kẟ inhibitor approved in the United States, United Kingdom, Australia and Israel, as the first and only targeted treatment indicated for APDS in adult and pediatric patients 12 years of age and older. Joenja® inhibits the production of phosphatidylinositol-3-4-5- trisphosphate, which serves as an important cellular messenger and regulates a multitude of cell functions such as proliferation, differentiation, cytokine production, cell survival, angiogenesis, metabolism and cell migration or trafficking. Results from a randomized, placebo-controlled Phase II/III clinical trial showed Joenja® to be clinically efficacious in both co-primary endpoints of the study. Joenja® demonstrated statistically significant impact on immune dysregulation and normalization of immunophenotype in the APDS patients that were enrolled. Data from the APDS open-label extension study also supports the safety and tolerability of long-term leniolisib administration.17,18 We have filed for regulatory approval in additional key markets for APDS patients 12 years of age and older. Leniolisib is also being evaluated in two Phase III clinical trials in children with APDS. For one of these trials, we announced positive top line results which are consistent with the improvements seen in the randomized controlled trial. A Phase III clinical trial is also ongoing in Japan in adult and pediatric patients 12 years of age and older with APDS. Pharming Group N.V. Annual Report 2024 | 182 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming Clinical studies7,17,18,19 In partnership with Novartis, we assessed the efficacy and safety of leniolisib in patients with APDS in a Phase II/III potentially registration enabling study. The study was composed of two sequential parts. The first part included six patients in an open- label dose escalation study designed to assess the safety, tolerability, pharmacodynamics and pharmacokinetics of leniolisib. The first part of the study showed that oral leniolisib led to a dose-dependent reduction in PI3K/AKT pathway activity assessed ex-vivo and improved immune dysregulation. We observed normalization of circulating transitional and naive B- cells, reduction in PD-11CD41 and senescent CD571CD42 T cells and decreases in elevated serum immunoglobulin M and inflammatory markers including interferon g, tumor necrosis factor, CXCL13, and CXCL10. After 12 weeks of treatment, all patients showed amelioration of lymphoproliferation with lymph node sizes and spleen volumes reduced by 39% (mean; range, 26%-57%) and 40% (mean; range, 13%-65%), respectively. Leniolisib was well tolerated and improved laboratory and clinical parameters in APDS, supporting the specific inhibition of PI3Kδ as a potential therapy in APDS and other diseases characterized by over-activation of the PI3Kδ pathway.19 The second part was a randomized, blinded, placebo-controlled study, which enrolled 31 patients with APDS who were 12 years of age or older. Patients were randomized 2:1 to receive either leniolisib 70mg twice daily or placebo for 12 weeks. Following this, patients were permitted to roll over to an open-label extension study to evaluate long-term safety, tolerability, and efficacy of leniolisib. Primary outcome measures were differences from baseline in lymph node size and in percentage of naïve B cells in peripheral blood, assessed as proxies for immune dysregulation and deficiency.18 The primary efficacy results demonstrated clinical efficacy of leniolisib over placebo with a statistically significant reduction in the size of the lymph nodes (p=0.0006) and normalization of immune dysfunction, as evidenced by increased proportion of naïve B cells (p=0.0002). Key secondary evaluations were supportive, including patient and physician global assessment tools which showed increased well-being and less disease activity, respectively, of patients randomized to leniolisib as compared to placebo.17 In the study, leniolisib was generally well-tolerated. The majority of reported adverse events in both treatment groups were classified as mild. There were no adverse events that led to discontinuation of study treatment, there were no deaths, and the incidence of serious adverse events, or SAEs, was lower in the leniolisib group than the placebo group. None of the SAEs were suspected to be related to study treatment.17 The open-label extension, or OLE, study was completed in January 2025 and included 37 patients with APDS 12 years of age and older who, at the time of data cutoff for the interim analysis, had received 70mg of the selective PI3Kδ inhibitor leniolisib twice a day for at least 25 weeks; 66% were exposed for 96 weeks or longer, with a median duration on study therapy of approximately two years; four patients had more than five years exposure. The study was primarily designed to assess the safety and tolerability of long-term leniolisib treatment in adult and adolescent patients with APDS who previously participated in a Phase II/III leniolisib study. The OLE study's secondary endpoints were intended to evaluate the efficacy and pharmacokinetics of long-term leniolisib treatment in these patients.18 The interim analysis found that leniolisib was well tolerated to this point in the OLE study. It also indicated the durability of the efficacy results seen in the randomized, controlled trial, which showed significant improvement over placebo in the co-primary endpoints of reduction in lymph node size and increase in naïve B cells. The majority of adverse events, or AEs, reported in the interim analysis were grades 1 and 2, and included upper respiratory tract infection, headache and pyrexia. Grade 1 AEs are the least severe and grade 5 the most severe. Overall, 13.5% of AEs were study drug-related; these affected five patients and included weight gain (n=3), arthralgia (n=1), hyperglycemia (n=1), and decreased neutrophil count (n=1). Of all AEs assessed in the analysis, 16.2% were classified as serious, but none of these were identified as related to study treatment. There was one death among study participants which was identified as not related to study treatment. Among study participants, some experienced reductions in APDS disease markers, with levels of response varying between individuals. Responses included: • reduced lymphadenopathy, splenomegaly, and IgM levels; • improved or resolved anemia, thrombocytopenia, and lymphopenia; and • resolved neutropenia in all affected patients. Two post-hoc analyses were performed to assess infection rates and immunoglobulin replacement therapy, or IRT, usage. 37% of participants who were on IRT were able to reduce their IRT use while taking leniolisib. Six patients became IRT-independent, with four of those patients having been IRT-independent for one to two-and-a-half years at the data cutoff.18 The median time to IRT reduction was 12.1 months and the median time to IRT discontinuation was 11.9 months.5 IRT use was captured by the investigator as concomitant medication at each study visit per protocol. IRT utilization was not prespecified as an endpoint or analysis and is observational only; no determination of statistical significance can be made and no conclusions should be drawn. Patients on leniolisib were also observed to have a reduction in the number of infection days.18 This decrease in annualized infection rates was accompanied by no appreciable increase in antibiotic use despite the reduction in IRT utilization. Although safety was the primary objective of the OLE study, this post hoc analysis was not powered to provide any statistical significance of efficacy and therefore no conclusions should be drawn. Pharming Group N.V. Annual Report 2024 | 183 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming Regulatory approvals United States On March 24, 2023, the FDA approved our New Drug Application, or NDA, of Joenja® (leniolisib) for the treatment of adult and pediatric patients 12 years of age and older with APDS. The FDA evaluated the Joenja® application for APDS under Priority Review, which is granted to therapies that have the potential to provide significant improvements in the treatment, diagnosis or prevention of serious conditions. Joenja® was launched in the U.S. in early April 2023. United Kingdom On March 12, 2024, we submitted a Marketing Authorisation Application, or MAA, with the MHRA for APDS patients 12 years of age and older through the International Recognition Procedure, or IRP, which replaced the European Commission Decision Recognition Procedure, or ECDRP, beginning January 1, 2024, on the basis of the U.S. FDA approval. On September 25, 2024, the U.K. MHRA granted marketing authorization for Joenja® (leniolisib) for the treatment of APDS in adult and adolescent patients 12 years of age and older. Joenja® was the first new medicine approved by the MHRA via the IRP using the U.S. FDA as reference regulator. Israel On April 30, 2024, the Israeli Ministry of Health granted Marketing Authorization for Joenja® (leniolisib) for the treatment of APDS in adult and pediatric patients 12 years of age and older. Australia We filed regulatory submissions for APDS patients 12 years of age and older in Australia in the third quarter of 2023. We received positive feedback from the Australian Advisory Committee on Medicines and in March 2025, we received approval for Joenja® (leniolisib) from the Australian Therapeutic Goods Administration, or TGA, for the treatment of APDS in adult and adolescent patients 12 years of age and older. Market access We currently market Joenja® (leniolisib) for the treatment of APDS in adult and pediatric patients 12 years of age and older in the United States. On March 13, 2025, the National Institute for Health and Care Excellence, or NICE, published positive final draft guidance recommending Joenja® (leniolisib) for reimbursement and use within the National Health Service, or NHS, in England and Wales. We have an agreement with Kamada Ltd., an Israel-based commercial stage global biopharmaceutical company with a portfolio of marketed products for rare and serious conditions focused on diseases of limited treatment alternatives, to commercialize Joenja® in Israel. Reimbursement negotiations for leniolisib with the Ministry of Health in Israel are ongoing. We have named patient and early access programs designed to ensure that physicians can request leniolisib on behalf of individual patients living with APDS, who meet the eligibility criteria and receive local health authority approval, in certain countries where leniolisib is not commercially available. For additional information on regulatory status, please see the section titled leniolisib for APDS. Patent protection We expect to have patent protection for leniolisib in APDS under the Novartis composition of matter patent (U.S. Patent No. 8,653,092, EU patent EP2590974B1) through July 2036 in the U.S. and EU, which we anticipate may be extended to January 2037 if we obtain a pediatric extension. The USPTO adjusted the expiration when the patent was granted to account for delays in the approval of the patent, and an additional patent term extension was applied for shortly after the FDA approved Joenja® (leniolisib). Similarly, in the EU, a supplemental protection certificate will be applied for shortly after approval in the EU. It is these extensions which we anticipate will result in the 2036 expiration. In the European Economic Area, upon successful completion of the agreed PIP, leniolisib would be eligible for up to an additional two years of marketing exclusivity in the EU, on top of the ten- year EU market exclusivity after market approval as result of its EU Orphan Drug Designation. Thus, we anticipate that the patent protection will extend beyond the marketing exclusivity. APDS patient diagnostic support On March 2, 2021, we announced the launch of a sponsored genetic testing program called navigateAPDS, designed to assist clinicians in identifying patients and their family members with APDS, which may lead to earlier diagnosis. A genetic test enables a clinician to confirm their clinical suspicions and definitively diagnose APDS. Our support of the navigateAPDS program will continue to facilitate genetic testing and counselling for eligible individuals in the United States and Canada at no charge. The navigateAPDS program offers testing with comprehensive immunodeficiency panels, providing critical information on potential genetic causes of immunodeficiencies and dysregulation that a patient may have. In addition to providing genetic testing to individuals who may present with a clinical picture known to be associated with APDS, navigateAPDS offers pre-test and post-test genetic counseling through a third party, and all blood relatives of patients found to have a positive molecular diagnosis of APDS are qualified for familial variant testing through the program. By offering access to this testing, physicians and patients are able to better understand the genetic underpinnings of their disease and manage their condition more precisely. Pharming Group N.V. Annual Report 2024 | 184 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming In Europe, we are intensifying our patient identification efforts together with leading immunology centers of excellence treating patients with APDS and other rare immune deficiencies. Based on available literature, we estimate APDS prevalence to be 1.5 patients per million.3,6 Our U.S. and global APDS patient finding efforts progressed during the year. As of December 31, 2024, we had identified over 880 diagnosed APDS patients of all ages in global markets, including over 240 patients in the United States. Of the identified patients in the U.S., over 150 patients are 12 years of age and older and eligible for treatment with Joenja®. We continued to advance several initiatives during 2024 to diagnose additional APDS patients, including our sponsored genetic testing program in the U.S. and Canada, partnerships with several genetic testing companies who undertake their own testing efforts and family testing programs. We have initiated a number of programs collaborating with clinicians and patients to aid in reducing the barriers and allowing the appropriate testing in families with APDS, to help identify family members of APDS patients who may also be affected by this disease. APDS is an inherited genetic disease and we believe that many of the over 240 APDS patients already identified in the U.S. are likely to have family members who remain undiagnosed. APDS patient finding - VUS resolution APDS is diagnosed based on clinical symptoms, assessment of immune cell function and genetic testing. For a patient to receive a definitive APDS diagnosis, a genetic test revealing a disease- causing (pathogenic or likely pathogenic) variant in either the PIK3CD or PIK3R1 genes is required. Patients with clinical symptoms compatible with APDS frequently receive inconclusive genetic variant test results, i.e., previously unseen variants in the PIK3CD or PIK3R1 genes. It is important to determine if these VUSs cause APDS. As of December 31, 2024, we are aware of approximately 1,200 patients in the U.S. with a VUS in the PIK3CD or PIK3R1 genes and are supporting validation studies with various laboratories to confirm which of these variants are pathogenic for APDS. Patients with disease-associated variants would receive a molecular diagnosis of APDS and, therefore, potentially be eligible for Joenja® treatment. Based on data from our navigateAPDS sponsored genetic testing program, PIK3CD and PIK3R1 VUSs are found at four times the frequency of those mutations currently classified as pathogenic / likely pathogenic for APDS. Furthermore, a completed literature review and pilot study resulted in 20% of VUS patients being reclassified to APDS, suggesting that there could be a significant increase in the number of APDS patients in the U.S. once those patients with a VUS are reclassified. We are supporting independent research to evaluate large numbers of VUSs without the need for additional patient testing. VUS resolution via high throughput screening methods is an established approach that is accepted as strong functional evidence for variant classification by various expert organizations including the American College of Medical Genetics, or ACMG, and ClinGen (a National Institutes of Health-funded resource). One in vitro high throughput screening study was completed in the fourth quarter of 2024, identifying many novel variants leading to PI3Kδ hyperactivity. We are now supporting clinical genetics laboratories across the U.S. to be able to use their independent variant interpretation to reclassify variants and thus issue amended genetic testing reports for any variants these laboratories deem to be disease-causing. We anticipate that these endeavors will lead to the identification of new patients with APDS. Pharming Group N.V. Annual Report 2024 | 185 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming Pipeline development Leniolisib for APDS: global regulatory filings European Economic Area In October 2020, we announced that the European Commission had granted orphan drug designation for leniolisib for the treatment of APDS, based on a positive opinion from the Committee for Orphan Medicinal Products, or COMP, of the European Medicines Agency, or EMA. In January 2022, a positive decision was made by the EMA on the Pediatric Investigation Plan, or PIP, for leniolisib. For the registration of new medicines in Europe, biopharmaceutical companies are required to provide a PIP which outlines the strategy for investigation of a new medicinal product in the pediatric population. The positive PIP opinion from the Pediatric Committee is an endorsement of the clinical program to evaluate the safety and efficacy of leniolisib in patients from 1 year of age to less than 18 years of age with APDS. In August 2022, we announced the leniolisib MAA was granted accelerated assessment by EMA's CHMP. The accelerated assessment reduces the review timeframe from 210 days to 150 days. Upon request, EMA will grant an accelerated assessment of an MAA if they decide the product is of major interest for public health, and in particular, from the viewpoint of therapeutic innovation. In October 2022, we submitted an MAA to EMA for leniolisib as a treatment for APDS in adult and pediatric patients 12 years of age and older. The MAA was supported by positive data from a Phase II/III study of leniolisib, announced on February 2, 2022, which met its co-primary endpoints of reduction in lymph node size and increase in percentage of naïve B cells in patients with APDS. Furthermore, safety data from the study showed that leniolisib was well tolerated by participants. Also submitted as part of the MAA were data from a long-term, open-label extension clinical trial in patients with APDS treated with leniolisib. On October 28, 2022, we announced that our MAA for leniolisib had been validated for scientific evaluation under an accelerated assessment by the CHMP. In February 2023, we announced that the CHMP decided to shift its assessment of the MAA for leniolisib to a standard review timetable. We received the list of questions from the EMA, which included a request to submit updated data from the ongoing long- term extension study collected after the interim analysis included in the original MAA. In May 2023, we submitted our response to the CHMP Day 120 list of questions. Subsequently, as part of the MAA review procedure timetable, we received the CHMP's Day 180 list of outstanding issues in July 2023. In August 2023, we announced that considering the rarity of the disease and the unmet need for the treatment of APDS patients, the CHMP would consult an Ad-hoc Expert Group, or AEG, at a closed meeting also involving our representatives including leniolisib investigators and APDS patients. Under EMA regulations, the CHMP may call an AEG meeting when a medicine is being assessed that requires input from specialized scientific advisors on matters that may fall outside the expertise of the EMA's established Scientific Advisory Groups, as is typically the case for rare diseases with few experts. In October 2023, we submitted our response to the CHMP Day 180 list of outstanding issues, or LoOI, In November 2023, we received a Day 180 Second LoOI from the CHMP. The CHMP consulted the AEG at a meeting held at the end of November 2023. On May 30, 2024, we announced that we received an updated LoOI from the CHMP which affirmed the positive clinical benefit and safety of leniolisib, in agreement with the assessment by the AEG, and included one remaining chemistry, manufacturing and controls, or CMC, request. The CMC request relates to the definition of regulatory starting materials used in the manufacturing process for leniolisib. As we are committed to meeting all of the CHMP's specific requirements, additional data and quality controls were provided and we proposed implementation of the CMC request post- approval. The CHMP requested that this work be completed pre-approval and has granted us an extension to January 2026 to submit a response. We are on track to complete the manufacturing activities requested by the CHMP and to submit a response prior to this deadline. Additional markets We filed regulatory submissions for APDS patients 12 years of age and older in Canada in the third quarter of 2023. In July 2024, we submitted a response to a Health Canada Notice of Deficiency. We have had ongoing interactions with Health Canada who recently granted us an extension to February 2026 to respond to a request for additional CMC data, in line with the EMA extension. We plan to respond in early 2026 and expect a regulatory decision in 2026. In Saudi Arabia, we submitted a New Drug Application for patients 12 years of age and older to the Saudi Food & Drug Authority, or SFDA, in November 2024, and expect a regulatory decision in 2026 subject to the SFDA's reliance procedure with the U.S. FDA. On May 15, 2024, South Korea granted Orphan Drug Designation for leniolisib in APDS. We submitted a New Drug Application for patients 12 years of age and older to the Ministry of Food and Drug Safety in South Korea in March 2025. We also anticipate filing for regulatory approval in Japan in mid-2025. Pharming Group N.V. Annual Report 2024 | 186 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming Leniolisib for APDS: clinical trials Japan clinical trial - APDS In May 2023, the Ministry of Health, Labour and Welfare of Japan, or MHLW, granted leniolisib orphan drug designation, or ODD, for the treatment of APDS. In August 2023, the first patient was enrolled in a Phase III clinical trial in Japan evaluating leniolisib for the treatment of APDS in adult and pediatric patients 12 years of age and older. Patient enrollment in this study is now complete. The single-arm, open-label clinical trial will evaluate the safety, tolerability, and efficacy of leniolisib in three patients, 12 years of age and older, who have a confirmed APDS diagnosis. Each patient will receive weight-based dosing up to 70mg of leniolisib twice daily for 12 weeks. The study's primary efficacy endpoints and secondary endpoints mirror those used to evaluate the clinical outcomes in each of the earlier leniolisib APDS trials. We completed an interim analysis, after 12-weeks of treatment, for the Phase III clinical trial in Japan. The study's safety and efficacy findings were in line with data from the randomized controlled trial used to support approvals in adult and adolescent APDS patients in the U.S. and other countries, and support a regulatory filing with Japan's Pharmaceuticals and Medical Devices Agency, or PMDA, which is planned for mid-2025. An approval decision would be expected in nine months based on priority review of the application due to ODD. Eligible patients enrolled in the trial will continue to receive the investigational drug for at least an additional year through an open-label extension trial. Pediatric clinical trials - APDS We have developed a clinical plan to include children as young as one year of age. During the first half of 2022, we received positive decisions from the EMA and MHRA on the Pediatric Investigation Plan, or PIP, for leniolisib as a treatment for APDS in children. The leniolisib PIP includes two planned, global clinical trials in pediatric patients with APDS 4 to 11 years of age and 1 to 6 years of age. These two studies were initiated in 2023 and will support global regulatory filings for pediatric label expansion. Patients 4 to 11 years of age This Phase III clinical trial is evaluating the investigational drug leniolisib in children with APDS at sites in the United States, Europe, and Japan. The single-arm, open-label, multinational clinical trial evaluates the safety, tolerability, and efficacy of leniolisib tablets in children 4 to 11 years of age. The study's primary efficacy endpoints are a reduction in index lymph node size and an increased proportion of naïve B cells out of total B cells from baseline at 12 weeks. Secondary endpoints include an assessment of the ability of leniolisib to modify health-related quality of life based on measures of physical, social, emotional, and school functioning using a validated patient questionnaire. These endpoints mirror those used to evaluate the clinical outcomes in previous leniolisib APDS trials for patients 12 years of age and older. The first patient was enrolled in the clinical trial in February 2023, and we initially sought to enroll 15 patients. We announced the completion of enrollment on April 8, 2024, with 21 children with APDS enrolled in the study. On December 11, 2024, we announced positive top line results for the multinational Phase III clinical trial. The data are consistent with the improvements seen in the previously reported randomized controlled trial in adolescent and adult APDS patients. We plan to include data from this clinical trial in global regulatory filings for the approval of leniolisib for pediatric patients with APDS, beginning with a U.S. submission in the second half of 2025. All 21 patients enrolled completed the 12-week treatment period. Lymphoproliferation improved as measured by a mean reduction in index lesion size and immunophenotype correction was demonstrated by an increase in the percent of naïve B cells. The improvements in lymphoproliferation and immunophenotype correction were seen across the four dose levels being investigated and were consistent with the improvements previously reported in adult and adolescent patients. All treatment emergent adverse events were reported to be mild to moderate in nature. There were no drug related serious adverse events, and all patients completed the 12-week treatment period. Patients 1 to 6 years of age This Phase III pediatric clinical trial is evaluating a new pediatric formulation of the investigational drug leniolisib in children with APDS at sites in the United States, Europe and Japan. The single-arm, open-label, multinational clinical trial is evaluating the safety, tolerability, and efficacy of leniolisib in 15 children 1 to 6 years of age who have a confirmed APDS diagnosis. These patients will receive a specific, pediatric granulated formulation of leniolisib. The study's primary efficacy endpoints and secondary endpoints mirror those used to evaluate the clinical outcomes in the previous leniolisib Phase II/III APDS trials for patients 12 years of age and older. The first patient was dosed in November 2023 and enrollment in the study is continuing as planned. Eligible patients enrolled in both of the pediatric trials will continue to receive leniolisib for a year after the initial 12-week treatment period through an open-label extension trial, to further evaluate the safety, tolerability, and efficacy in these patients. Pharming Group N.V. Annual Report 2024 | 187 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming Leniolisib for additional PID indications As we continue to work towards regulatory approvals of leniolisib for APDS in additional geographies and pediatric label expansion, we have identified and prioritized other indications where there is significant unmet medical need and leniolisib has the potential to deliver value for patients. PI3Kδ has been identified as an important player in a variety of inflammatory and autoimmune disease states, and leniolisib has demonstrated an attractive, long-term efficacy, safety and tolerability profile in clinical trials conducted in both healthy volunteers and APDS patients. This provides a solid basis for our plans for the investigation and investment in further leniolisib indications. Primary immunodeficiencies (PIDs) with immune dysregulation In December 2023, we announced the expansion of our rare disease pipeline with plans to develop leniolisib for additional primary immunodeficiencies, or PIDs, which affect significantly more patients than APDS. Leniolisib, by modulating PI3Kδ activity, could help in the treatment of PID patients with immune dysregulation, positively impacting their clinical manifestations of autoimmunity and end-organ lympho-infiltrative disease. PIDs with immune dysregulation linked to altered PI3Kδ signaling Based on our APDS experience, leniolisib has potential to be an effective and tolerable chronic treatment approach for PIDs with immune dysregulation linked to PI3Kδ signaling. During 2024, we worked towards setup of a Phase II, proof of concept, clinical trial evaluating leniolisib in 7 genetically identifiable PIDs with immune dysregulation linked to enhanced PI3Kẟ signaling in lymphocytes, with similarities in their spectrum of noninfectious autoimmune, lymphoproliferative and/or end- organ lympho-infiltrative clinical phenotypes and in their unmet medical need to APDS. The clinical trial includes PID patients with ALPS-FAS8, CTLA4 haploinsufficiency9, NFKB1 haploinsufficiency10 and PTEN deficiency11, among others. Specifically, PTEN patients with immunodeficiency are frequently described as 'APDS-like'20, patients with ALPS-FAS display predominantly lymphoproliferative clinical manifestations with frequent cytopenic episodes21, and CTLA4 haploinsufficiency22 as well as NFKB1 haploinsufficiency10 patients demonstrate lymphoproliferative, cytopenic, and/or organ-specific autoimmune/inflammatory complications of immune dysregulation. Epidemiology suggests a combined prevalence of approximately seven and a half patients per million in this targeted PID population, compared to one and a half patients per million for APDS. The first patient in this clinical trial was dosed on October 29, 2024. Not to scale with population sizes The Phase II clinical trial is a single arm, open-label, dose range- finding study to be conducted in approximately 12 patients. The objectives for the trial are to assess safety and tolerability, pharmacokinetics, pharmacodynamics, and explore clinical efficacy of leniolisib. The trial has been designed to inform a subsequent Phase III program. The Phase II clinical trial is being conducted at the National Institute of Allergy and Infectious Diseases, or NIAID, part of the National Institutes of Health, or NIH, with lead investigator Gulbu Uzel, M.D., Senior Research Physician, and co-investigator V. Koneti Rao, M.D., FRCPA, Senior Research Physician, Primary Immune Deficiency Clinic (ALPS Clinic). In December 2024, we submitted a request for a Fast Track Designation for the treatment of PIDs linked to PI3Kδ signaling to the U.S. FDA, which was granted in February 2025. Fast Track is an FDA process designed to facilitate the development, and expedite the review of drugs to treat serious conditions that fulfill an unmet medical need. CVID with immune dysregulation CVID with immune dysregulation represents a much larger group of PID patients, which may be identified independently of genetics. Based on available CVID epidemiology, and the current understanding of CVID patients presenting with a similar clinical phenotype to APDS23, we estimate that the targeted population has a prevalence of approximately 39 patients per million. CVID represents the largest group of symptomatic primary immunodeficiency (PID) patients, where approximately 50% display autoimmune, lymphoproliferative and/or end-organ lympho-infiltrative clinical manifestations driven by immune dysregulation.24, 26, 27 Pharming Group N.V. Annual Report 2024 | 188 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming CVID patients with immune dysregulation have a large unmet medical need, with an 11-fold enhanced rate of mortality as compared to CVID patients with infectious manifestations alone, and the majority exhibit similarities in their spectrum of clinical manifestations to APDS patients. This strongly suggests commonalities in pathophysiology between APDS and CVID patients with immune dysregulation. This CVID with immune dysregulation population includes most of the patient population for the genetically identified PIDs with immune dysregulation linked to altered PI3Kẟ signaling discussed above, and represents a much wider opportunity for leniolisib development and potential for a wider benefit for PID patients. We engaged with the FDA and EMA on the CVID indication and subsequently initiated a Phase II study for leniolisib in CVID patients with immune dysregulation, with the first patient dosed in March 2025. The Phase II clinical trial is a single arm, open-label, dose range- finding, multi-center study to be conducted in approximately 20 patients 12 years of age and older. The trial will include patients with a CVID diagnosis, a requirement for evidence of lympho- proliferation and at least one additional clinical manifestation of immune dysregulation, including interstitial lung disease, autoimmune cytopenias, or enteropathy. The objectives for the trial will be to assess safety and tolerability, pharmacokinetics, pharmacodynamics, and explore clinical efficacy of leniolisib in the targeted CVID with immune dysregulation population. The trial has been designed to inform a subsequent Phase III program. The lead investigator for the Phase II study is Jocelyn Farmer, M.D./PhD, Director of the Clinical Immunodeficiency Program of Beth Israel Lahey Health (Lahey Hospital & Medical Center in Burlington, MA), with additional clinical sites in the U.S., UK and EU. Pharming Group N.V. Annual Report 2024 | 189 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming KL1333 for mtDNA primary mitochondrial disease In December 2024, we announced the proposed acquisition of Abliva AB, a biotechnology company, based in Lund, Sweden, focused on developing medicines for the treatment of mitochondrial disease. This rare and often very severe disease occurs when the cell's energy provider, the mitochondria, do not function properly. The acquisition was completed in March 2025. Abliva's lead product, KL1333, a regulator of the essential co- enzymes NAD⁺ and NADH, is being studied in a pivotal clinical study (FALCON) in adult patients with genetically confirmed primary mitochondrial disease, or PMD, with mitochondrial DNA, or mtDNA, mutations who experience consistent, debilitating fatigue and muscle weakness (myopathy), and reduced life expectancy. KL1333 has been designed to treat chronic fatigue and myopathy (muscle weakness) in genetically confirmed adult patients with primary mitochondrial disease. Diagnoses can include MELAS- MIDD and KSS-CPEO spectrum disorders as well as MERRF syndrome. The drug candidate is intended for long-term oral treatment. Over 30,000 patients diagnosed with mtDNA mitochondrial disease would be potentially addressable by KL1333 in the U.S., EU4 (France, Germany, Italy, Spain) and the U.K. KL1333 has shown positive clinical effects in a proof-of-concept Phase Ib study, and a pre-planned interim analysis of the ongoing pivotal FALCON trial demonstrated promising differences over placebo with both alternate primary efficacy endpoints passing futility. KL1333 has received Fast Track designation in the U.S. and Orphan Drug Designation for the treatment of PMD in the U.S. and EU. We are now moving to start the second wave of patient recruitment for the pivotal FALCON clinical trial. We anticipate the trial to read-out in 2027 with potential FDA approval by the end of 2028. FALCON is a Phase II, global, randomized, placebo-controlled, pivotal study evaluating the safety and efficacy of KL1333 in adult patients with primary mitochondrial disease who experience consistent, debilitating fatigue and myopathy (muscle weakness), the most common and impairing symptoms. A total of 180 patients with mitochondrial DNA mutations who meet the eligibility criteria will be randomized 3:2 to receive KL1333 (total daily dose of 50mg-100mg) or placebo administered twice daily for 48 weeks. The two alternative primary endpoints assess consistent fatigue (using the PROMIS® Fatigue Mitochondrial Disease Short Form) and myopathy (using the 30 second Sit-to-Stand test), only one of which must be positive to file for marketing approval. An interim analysis evaluating 24-week data from the first wave of patients confirmed the strong safety profile of KL1333, and both primary endpoints passed futility, meaning that both have the potential to demonstrate benefit in the final analysis of the study. We believe KL1333 has blockbuster potential in the U.S. alone and has the potential to significantly change our future growth trajectory. We funded this acquisition using existing cash, and anticipate covering costs to complete the pivotal trial with positive cash flows from our existing business. The acquisition of Abliva further strengthens our clinical pipeline with the addition of a potential first-in-disease therapy. Pharming Group N.V. Annual Report 2024 | 190 Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information About Pharming Pre-clinical pipeline OTL-105 In 2021, we entered into a license agreement with Orchard Therapeutics to research, develop, manufacture and commercialize OTL-105, an investigational ex vivo autologous hematopoietic stem cell, or HSC, gene therapy for the treatment of patients with HAE due to a deficiency of C1INH. This novel approach has the potential of being curative, allowing HAE patients to live a normal life, without being dependent upon acute or prophylactic use of HAE medication. OTL-105 is based on Orchard Therapeutics' ex-vivo autologous gene therapy platform approach which is designed to use the HAE patients' own blood stem cells and insert those cells into a working copy of the gene that is reduced in HAE. In pre-clinical proof of concept studies, gene-corrected stem cells produced relevant active C1-esterase inhibitor. Preclinical development of OTL-105 continued, including work towards the preparation of preclinical proof of concept studies. On January 24, 2024, Kyowa Kirin Co., Ltd., a Japan-based global specialty pharmaceutical company, completed the acquisition of Orchard Therapeutics. On May 8, 2024, we announced that, consistent with our current strategy as well as prioritization of clinical development expansion of leniolisib into additional PID indications, we had decided to terminate the research collaboration & licensing agreement with Orchard Therapeutics and discontinue the OTL-105 program. Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Glossary Glossary ADR/ADS American Depositary Receipt/Share. AEs Adverse events. AFM Dutch Authority for the Financial Markets. AGM Annual General Meeting of Shareholders. AKI Acute Kidney Injury (AKI) is a sudden episode of kidney failure or kidney damage. ALPS-FAS Autoimmune lymphoproliferative syndrome (ALPS) with FAS mutation is a primary immunodeficiency with immune dysregulation caused by certain mutations in the FAS gene. APDS or activated phosphoinositide 3-kinase delta (PI3Kδ) syndrome (APDS) is a primary immunodeficiency disease caused by activating gain of function mutations in gene contributing to the control of the immune system. Individuals with this condition often have high numbers of non-properly functioning white blood cells. Bausch Health Companies Inc. Formerly known as Valeant Pharmaceuticals International, develops, manufactures and markets pharmaceutical products and branded generic drugs, primarily for skin diseases, gastrointestinal disorders, eye health, and neurology. BioConnection B.V. Contract services and manufacturing organization for the development and manufacturing of injectable (bio)pharmaceutical products. BSM Black-Scholes-Merton, financial instrument pricing framework. BoD Board of Directors. BOM The Board of Management. C1INH C1 esterase inhibitor or C1INH is an inhibitor protein present in human blood. C1INH is involved in the regulation of one of the key proteins in the complement system (C1), which is part of the natural inflammatory response of the body. Insufficient C1 inhibitor levels or activity can cause inflammation and HAE attacks. CBO Chief Business Officer. CCO Chief Commercial Officer. CDIBP Chengdu Institute of Biological Products, a Sinopharm Company. CDZ173 Novartis project name for leniolisib. CECO Chief Ethics & Compliance Officer. CEO Chief Executive Officer. CFO Chief Financial Officer. CHMP Committee for Medicinal Products for Human Use (CHMP) is the European Medicines Agency's (EMA) committee responsible for human medicines. Clinical trial/study Clinical trials typically range from Phase I to Phase IV and are performed on human individuals ranging from healthy people to patients, to evaluate safety and efficacy of new pharmaceutical products before they can be approved. CLO Contract Laboratory Organization. CMC Chemistry, Manufacturing & Control. CMO Contract Manufacturing Organization or Chief Medical Officer. COMP Committee for Orphan Medicinal Products in the EU. Complement system The complement system is a major part of the immune system, responsible for certain immune-mediated inflammation reactions, including most reactions that cause vascular edema (swelling). Convertible Bonds These are corporate bonds offered by a publicly traded company that give the bond holder the right to exchange the bond for a pre-determined quantity of stock. COO Chief Operations Officer. CPO Chief People Officer. CRO Contract Research Organization. CSIPI China State Institute of Pharmaceutical Industry, a Sinopharm company. CSRD Corporate Sustainability Reporting Directive. CTLA4 haploinsufficiency is a primary immunodeficiency with immune dysregulation caused by certain mutations in the CTLA4, or cytotoxic T-lymphocyte associated protein 4, gene. Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Glossary CVID Common variable immunodeficiency. Cytobioteck Privately-owned Bogota, Colombia based specialty healthcare company. DSP Downstream Processing. EBITDA Earnings before Interest, Tax, Depreciation & Amortization. Defined as Profit for the year adjusted to exclude Income tax credit (expense), Financial cost, net and Depreciation of Property, plant and equipment and Amortization of Intangible assets. (Adjusted) EBITDA Defined as Profit for the year adjusted to exclude Income tax credit (expense), Financial cost, net, Depreciation of Property, plant and equipment, Amortization of Intangible assets and Impairments/(reversal) of certain capitalized development expenses as defined. ECDRP The European Commission Decision Reliance Procedure allows a company to submit a product that has received approval from EMA to the U.K.'s MHRA. This path was replaced by the International Recognition Procedure (IRP) from January 1, 2024. EEA European Economic Area. EMA The European Medicines Agency is the regulatory office for pharmaceuticals in the European Union. EPS (Earnings per share) Basic earnings per share are calculated based on the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share are computed based on the weighted average number of ordinary shares outstanding including the dilutive effect of shares to be issued in the future under certain arrangements such as option plans, warrants issued and convertible loan agreements. ESG Environmental, Social, Governance. ESRD European Sustainability Reporting Standards. EU European Union. ExCo Executive Committee. FDA The FDA or Food and Drug Administration is the regulatory office responsible for drug approval in the United States. GCP Good Clinical Practices. GDPR General Data Protection Regulation. GLP Good Laboratory Practice. GMP/ GMP status Good Manufacturing Practice is a term that is recognized worldwide for the control and management of manufacturing and quality control testing of foods and pharmaceutical products. HAE Hereditary Angioedema is a human genetic disorder caused by insufficient activity or concentration of the C1 inhibitor protein in the plasma. HAEi Hereditary Angioedema International (patient organization). HAEi GAP HAEi Global Access Program. FRS, IAS and IASB International Financial Reporting Standards (IFRS) along with International Accounting Standards (IAS) are a set of accounting standards issued by the International Accounting Standards Board (IASB). Immunoglobulin M (IgM) is one of several isotypes of antibody (also known as immunoglobulin). IND Investigational New Drug application is the process through which a product must pass to get to the next stage of drug development known as clinical trials. IRP International Recognition Procedure. The U.K. MHRA's new international recognition route for medicines utilizing pre-existing approvals from other countries including the United States. IRT Immunoglobulin Replacement Therapy. Joenja® is the global registered trademark for leniolisib. When discussing the commercialized product in the U.S., or other countries where the product has received regulatory approval, we use the trademarked name Joenja® instead of leniolisib. Kamada partners with international pharmaceutical companies in exclusive marketing and distribution arrangements for the Israeli market. Leniolisib Also known as CDZ173, is a synthetic phosphoinositide 3-kinase delta (PI3Kδ) inhibitor developed for the treatment of activated phosphoinositide 3-kinase delta syndrome (APDS). When discussing clinical trials or studies or when discussing the product as related to markets outside of regulatory approvals, we use the term leniolisib. LTIP Long Term Incentive Plan. MAA Marketing Authorization Application is a request for market approval to the EMA in the European Union. MHLW Ministry of Health, Labour and Welfare of Japan. Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information Glossary MHRA The U.K.'s Medicines and Healthcare Products Regulatory Agency. mtDNA Mitochondrial DNA-related primary mitochondrial disease. NDA New Drug Application, the vehicle through which drug sponsors formally propose that the FDA approve a new pharmaceutical for sale and marketing in the U.S. Net cash (debt) Defined as convertible bonds minus cash and cash equivalents, restricted cash and marketable securities. NFKB1 haploinsufficiency is a primary immunodeficiency with immune dysregulation caused by certain mutations in the NFKB1, or nuclear factor KB subunit 1, gene. NHS National Health Service in England and Wales. NICE National Institute for Health and Care Excellence. Novartis Swiss multinational pharmaceutical company based in Basel, Switzerland. OLE Open-label extension study. Orchard Therapeutics gene therapy company with a strategic partnership with Pharming for the development of OTL-105 which was discontinued in 2024. Orphan Drug/ Orphan Drug status A drug being developed to treat a rare disease (affecting less than 200,000 individuals in the U.S.A.) can receive Orphan Drug designation from the FDA. PDCO Pediatric Committee in the EU. PDUFA Prescription Drug User Fee Act. PI3Kδ Phosphoinositide 3-kinase delta. PID Primary immunodeficiency. PIM Promising Innovative Medicine. PIP Pediatric Investigation Plan. PMD Primary Mitochondrial Disease. PMDA Japan's Pharmaceuticals and Medical Devices Agency. Pompe is a rare multisystem genetic disorder that is characterized by absence or deficiency of the lysosomal enzyme alpha- glucosidase (GAA). Pre-eclampsia (PE) is a life-threatening multisystem condition in pregnancies leading to increased maternal and neonatal mortality and morbidity. Primary Immunodeficiency (PID) is a rare, genetic disorder that impairs the immune system. PTEN deficiency is a primary immunodeficiency with immune dysregulation caused by certain mutations in the PTEN, or phosphatase and tensin homolog, gene. QA Quality Assurance. R&D Research and Development. Recombinant refers to the combination of one form of genetic material (DNA) from one source with the DNA of a different biological source from a different species. rhaGLU alpha-glucosidase recombinant human alpha- glucosidase. rhC1INH Recombinant human C1 esterase inhibitor or rhC1INH is the active component of RUCONEST®. RoW Rest of World, outside of Europe and the U.S. RUCONEST® RUCONEST® is the global registered trademark for Pharming's recombinant human C1 inhibitor. SAEs Serious adverse events. SEC U.S. Securities and Exchange Commission. Sinopharm China National Pharmaceutical Group Co., Ltd. SOBI Swedish Orphan Biovitrum International AB. SOP Standard operating procedures. SOX Sarbanes-Oxley Act. TGA Australian Therapeutic Goods Administration. Transgenic an organism is called transgenic when its cells carry genetic material from another species in addition to or replacement of parts of its own genetic material. Treasury stocks Also known as treasury shares or reacquired stock refers to previously outstanding stock that is bought back from stockholders by the issuing company. VWAP Volume Weighted Average Price of shares. U.K. United Kingdom. U.S. or U.S.A. United States of America. Contents At a Glance Strategy and Execution Financial Performance Risk Management Corporate Governance Sustainability (ESG) Financial Statements Other Information References References 1 RUCONEST® Prescribing Information. Pharming Healthcare 2020 2 Bernstein JA, et al. Ann Allergy Asthma Immunol. 2017 Apr;118(4):452-455 3 Lucas CL, et al. Nat. Immunol. 2014;15(1):88-97 4 Nunes-Santos CJ, et al. J. Allergy Clin. Immunol. 2019;143(5):1676-1687 5 Data on file. 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