Oslo, Norway, October 23, 2023 - Nykode Therapeutics ASA (the "Company") refers
to its interim report for the fourth quarter of 2022 and annual report for 2022,
in which the Company publicly stated that the Norwegian Tax Authorities had
questioned the use of taxable gain/loss account for up-front payments under a
license agreement entered into in 2020, and if the payments should be recognized
as taxable income in full in 2020. 

As described in the reports, the effect of any change would be a
reclassification of deferred tax to tax payable in the financial statements.
Today the Norwegian Tax Authorities have in a formal decision reiterated their
position that the payments in question should be treated as taxable income in
full in 2020. This will generate a tax payable currently estimated to
approximately USD 30 million.

The Company continues to believe that the use of taxable gain/loss account is
the appropriate treatment, a view which has also been confirmed with third party
tax experts. As previously communicated Nykode will appeal this decision and the
Company is now expected to settle the tax payable while it awaits the outcome of
such appeal (as is mandatory under Norwegian law).

"We do not agree with the Norwegian Tax Authorities in this case and have
received reconfirmation from leading external tax experts supporting that our
use of taxable gain/loss account is the appropriate treatment. We have been
prepared for today's outcome as a potential scenario and it will as such not
change any of Nykode's operational plans to execute on the company's strategy
over the next years." said Michael Engsig, CEO of Nykode Therapeutics.  

Nykode Therapeutics had a cash position of USD 174 million at the end of the
second quarter 2023.


About Nykode Therapeutics
Nykode Therapeutics is a clinical-stage biopharmaceutical company dedicated to
the discovery and development of novel immunotherapies with a focus on treatment
of cancer and autoimmune diseases. Nykode's modular vaccine technology
specifically targets antigens to APC, which have been shown to induce broad,
strong and long-lasting antigen specific immune responses which correlates with
clinical responses in cancer.

Nykode's lead product candidates are VB10.16, a therapeutic vaccine for the
treatment of HPV16 induced malignancies which demonstrated favorable safety and
efficacy results from its Phase 2 trial for the treatment of cervical cancer