Highlights

• Algorae Pharmaceuticals shares rose 8.33% to AUD 0.013 during the morning session on 3 July 2026.

• The company reported independent preclinical validation of its AlgoraeOS v2 platform.

• AOS2 tested 24 predicted drug combinations with CBD across four cancer cell models.

• The validation program generated approximately 10,000 data points.

• AOS2 showed improved predictive power compared with the earlier AOS1 model.

• Algorae will now assess further investigation and intellectual property options for selected combinations.

Algorae Pharmaceuticals Ltd (ASX:1AI) shares advanced 8.33% to AUD 0.013 during the morning session on 3 July 2026, following the release of a preclinical validation update for its AlgoraeOS v2 drug-combination prediction platform. The stock remains up 30.00% over the past six months, with investors responding to the company’s announcement that independent testing had shown improved predictive accuracy for the enhanced version of its AI-enabled discovery platform.

The update centred on independent validation work completed by the Victorian Centre for Functional Genomics at the Peter MacCallum Cancer Centre. The program tested selected drug combinations predicted by AlgoraeOS v2, also referred to as AOS2, and compared the results with the company’s earlier AOS1 model.

AOS2 Validation Marks Key Platform Progress

Algorae reported positive preclinical results from the independent validation of AOS2, its updated drug-combination prediction platform.

The validation study was undertaken by the Victorian Centre for Functional Genomics at the Peter MacCallum Cancer Centre under the supervision of Professor Kaylene Simpson and Chief Scientific Officer Dr James McKenna.

The work followed Algorae’s earlier announcement on 30 March 2026, when the company said it had partnered with the VCFG to independently assess predictions generated by AOS2.

The AOS2 prediction set included CBD in combination with more than 3,000 approved and investigational drugs across 170 cell lines. From this broader dataset, 24 drugs were selected for laboratory testing in combination with CBD.

Around 10,000 Data Points Generated

The validation program assessed 24 CBD-drug combinations across four established cancer cell lines: T98G, A2058, K-562 and RD.

Across these cell models, the program completed 96 assessments of CBD-drug-cell line combinations covered by AOS2 predictions.

The study used high-throughput microscopy and chemiluminescent viability assays to measure cell proliferation. Including replicates and controls, the program generated approximately 10,000 data points.

Each combination was assessed using four recognised drug interaction models:

• Highest Single Agent.

• Bliss independence.

• Zero Interaction Potency.

• Loewe additivity.

Algorae said this approach provided a comprehensive and conservative assessment of whether the tested drug combinations worked synergistically.

AOS2 Shows Improved Predictive Power

One of the key outcomes from the validation program was that AOS2 demonstrated improved predictive power compared with the preliminary AOS1 model.

Using previously defined internal thresholds, AOS2 identified approximately a 2.5-fold higher proportion of confirmed synergistic combinations relative to predicted outcomes compared with AOS1.

The company said this result shows that enhancements made to the AlgoraeOS platform translated into improved predictive capacity.

The validation also indicated that AOS2 could help prioritise drug combinations that are more likely to show biological synergy when tested in laboratory conditions.

Uncertainty Metrics Add Further Screening Layer

Algorae highlighted the addition of uncertainty metrics as a key improvement in AOS2.

These metrics were applied to each model prediction and provided an additional layer for assessing predictive capacity and model accuracy.

According to the company, uncertainty metrics may help triage potential candidate combinations by offering additional insight into the confidence level of model predictions.

This feature is intended to support more targeted selection of combinations for further preclinical evaluation.

Synergy Models Support Consistency of Results

The company also noted that three of the four synergy models were closely aligned during the validation program.

Algorae said this was consistent with observations from the initial validation program and supported the repeatability of its validation process.

The alignment across multiple models provided further support for the consistency of AOS2’s synergy predictions, while the broader dataset helped the company compare the updated model against the earlier AOS1 version.

Potential Drug Combinations Identified

Across both in vitro validation programs, Algorae said several potential synergistic drug combinations had been identified.

These combinations may now be considered for further preclinical in vitro or in vivo assessment.

The company also plans to review intellectual property opportunities for the most promising candidates where applicable.

This next step is important because validated drug-combination candidates could become part of future discovery and optimisation programs.

Multi-Anchor Program to Broaden Pipeline

Following completion of the AOS2 validation program, Algorae will now initiate validation work for its multi-anchor combination pipeline.

As announced on 18 May 2026, the company extended its program to an additional 18 anchor drugs.

This broader program evaluated more than 9 million potential drug-drug-cell line combinations.

From this work, AlgoraeOS identified more than 6,000 combinations indicating potential synergy.

The company plans to begin a further in vitro validation program using a small subset of these candidates. These combinations will involve anchor drugs from approved and investigational compounds with diverse mechanisms of action.

Phenomics Australia Voucher Supports Next Program

The next validation program will be supported by a AUD 49,109 voucher awarded to Algorae under the Phenomics Australia and Therapeutic Innovation Australia Pipeline Accelerator 2025-26 Round 2 scheme.

The funding will support experimental work in partnership with the Victorian Centre for Functional Genomics.

The company noted that the scheme attracted 28 applications, of which 13 were selected for funding.

The voucher reduces the total cost to Algorae of accessing these experimental services.

About Algorae Pharmaceuticals

Algorae Pharmaceuticals is an AI-enabled pharmaceutical company focused on drug-combination discovery and pharmaceutical commercialisation.

Its proprietary platform, AlgoraeOS, uses machine learning and deep neural networks to identify synergistic drug combinations and guide dose selection for preclinical development.

Alongside its AI discovery work, the company operates AlgoraeRx, a commercialisation business that sources, licenses and supplies generic and specialty medicines in Australia and New Zealand through partnered manufacturers and established distribution channels.

Algorae collaborates with research institutions and industry partners to support development of AI-predicted therapies and expand access to medicines.

What This Means for Investors?

Algorae’s latest update provides independent preclinical validation for the enhanced AOS2 platform and shows improved predictive accuracy compared with the preliminary AOS1 model. The testing of 24 CBD-drug combinations across four cancer cell lines generated approximately 10,000 data points and identified potential synergistic combinations for further review. With the company preparing to validate its broader multi-anchor program, supported by a AUD 49,109 Phenomics Australia voucher, investors are likely to monitor future validation outcomes, preclinical follow-up and any intellectual property developments linked to promising drug combinations.