Business Overview: Alumis Inc. (NASDAQ: ALMS)

---

Executive Summary

Alumis Inc. is a clinical-stage biopharmaceutical company developing oral, small-molecule therapies for autoimmune and inflammatory diseases. The company's lead program targets TYK2 (tyrosine kinase 2) inhibition, a validated mechanism of action for treating conditions such as psoriasis, psoriatic arthritis, and other immune-mediated diseases, positioning Alumis as a competitor in one of biopharma's most actively pursued therapeutic classes following the approval of the first TYK2 inhibitor by a larger pharmaceutical competitor.

Headquartered in South San Francisco, California, Alumis completed its Nasdaq IPO in 2024 and, in 2025, announced a proposed merger with ACELYRIN, Inc., another clinical-stage immunology-focused biopharmaceutical company, reflecting the broader industry trend of consolidation among clinical-stage immunology developers seeking greater scale and pipeline diversification.

---

1. Core Business Model & How They Work

Alumis develops oral small-molecule immunology therapeutics designed to offer a more convenient alternative to injectable biologic therapies commonly used to treat autoimmune and inflammatory diseases, advancing candidates through clinical trials toward potential regulatory approval and commercialization.

[ TYK2 & Other Immunology Target Discovery ] ➡️ [ Oral Small-Molecule Drug Development ] ➡️ [ Clinical Trials (Psoriasis, Psoriatic Arthritis, and Other Indications) ] ➡️ [ Potential FDA Approval ] ➡️ [ Commercialization as an Oral Alternative to Injectable Biologics ]

Key Operational Drivers

1. Oral Convenience vs. Injectable Biologics: A central value proposition across Alumis's pipeline is offering patients an oral pill alternative to the injectable biologic therapies that dominate treatment for many autoimmune and inflammatory conditions, potentially improving convenience and treatment adherence.
2. Validated TYK2 Mechanism: TYK2 inhibition has already been validated as an effective and commercially successful mechanism by a larger pharmaceutical competitor's approved product, providing Alumis a lower-risk (though still competitive) path by pursuing a mechanism with established clinical proof of concept.
3. Pipeline Diversification via ACELYRIN Merger: The proposed combination with ACELYRIN aims to broaden Alumis's immunology pipeline and clinical/commercial capabilities, reflecting a strategy of building scale through consolidation in the competitive immunology biotech landscape.
4. Large Autoimmune Disease Market Opportunity: Psoriasis, psoriatic arthritis, and related autoimmune/inflammatory conditions represent a large and growing global market, supporting significant commercial opportunity for a differentiated, well-positioned oral therapy.

---

2. Business Segments

Alumis operates as a single integrated clinical-stage immunology biopharmaceutical business organized around its pipeline:

• TYK2 Inhibitor Program: Lead oral small-molecule candidate targeting psoriasis, psoriatic arthritis, and potentially other TYK2-mediated autoimmune conditions.
• Additional Immunology Pipeline: Earlier-stage programs targeting other autoimmune and inflammatory disease mechanisms, further expanded by the pending ACELYRIN combination.

---

3. Product Portfolio & Revenue Contributors

---

4. Competitive Landscape

                    High Oral Immunology Therapeutics Focus
                                 │
       Bristol Myers Squibb (Sotyktu) ●│      ● Alumis (TYK2 inhibitor pipeline)
                                 │
   AbbVie (Rinvoq) ●             │              ● Ventyx Biosciences
                                 │
─────────────────────────────────┼─────────────────────────────────
   Established/Approved Oral      │              Clinical-Stage Challenger
   Immunology Therapy            │
                                 │
    Injectable Biologics          │
    (Novartis, J&J, others) ●     │
                                 │
                    Low Oral Immunology Therapeutics Focus

Competitors by Domain

TYK2 Inhibition / Oral Psoriasis-Psoriatic Arthritis Treatment

• Key Competitors: Bristol Myers Squibb's Sotyktu (deucravacitinib) is the first approved TYK2 inhibitor and the direct commercial benchmark Alumis's lead program must ultimately compete against or differentiate from.
• Dynamics: Sotyktu's approval and commercial launch validated the TYK2 mechanism but also set a high competitive bar; Alumis must demonstrate meaningful differentiation (efficacy, safety, or dosing convenience) to compete for market share in an already-established category.

Broader Autoimmune/Inflammatory Disease Treatment

• Key Competitors: AbbVie (Rinvoq, Skyrizi, Humira franchise), Johnson & Johnson, Novartis, and numerous other large pharmaceutical companies with extensive injectable biologic and oral franchise in psoriasis and psoriatic arthritis.
• Dynamics: This is one of the largest and most competitive areas of pharmaceutical development, with numerous well-established, highly effective biologic therapies that Alumis's oral candidates must differentiate against on convenience and/or efficacy grounds.

---

5. Strategic Strengths & Moats vs. Strategic Risks

Competitive Strengths (The Moat)

• Validated mechanism of action: Pursuing TYK2 inhibition after Bristol Myers Squibb's Sotyktu approval provides scientific de-risking relative to a completely novel, unproven mechanism.
• Oral convenience differentiation: An oral pill alternative to injectable biologics offers a genuine patient-convenience advantage in a therapeutic category still dominated by injectables.
• Pipeline scale from pending ACELYRIN combination: The proposed merger aims to create a larger, more diversified immunology-focused biopharmaceutical company with broader clinical and commercial capabilities.

Strategic Risks & Vulnerabilities

1. Competing against an already-approved, first-in-class rival: Bristol Myers Squibb's head start with Sotyktu creates significant commercial and clinical differentiation pressure on Alumis's lead program.
   • Mitigation Strategy: Pursuing differentiated clinical trial data (efficacy, safety, or dosing profile) to support a competitive positioning against the incumbent.
2. Merger integration risk: The proposed combination with ACELYRIN carries execution risk typical of any biopharmaceutical merger, including pipeline prioritization and organizational integration challenges.
   • Mitigation Strategy: Careful strategic planning around combined pipeline prioritization to maximize the value of the merged entity's assets.
3. Clinical and regulatory risk: As with any clinical-stage biopharmaceutical program, Alumis's candidates face inherent risk of trial failure or regulatory delay.
   • Mitigation Strategy: Leveraging the validated TYK2 mechanism to reduce (though not eliminate) overall program risk.

---

6. Financial Overview & Performance Matrix

---

7. Summary Conclusion

Alumis has positioned itself in one of immunology biopharma's most actively pursued therapeutic classes by developing an oral TYK2 inhibitor following the commercial validation of this mechanism by Bristol Myers Squibb's Sotyktu, while pursuing additional pipeline diversification through its proposed combination with ACELYRIN. The oral-convenience value proposition versus injectable biologics provides a clear differentiation angle in a very large autoimmune disease market.

The company's long-term trajectory depends on generating clinical data sufficiently differentiated from the already-approved Sotyktu to carve out meaningful commercial share, successfully executing the ACELYRIN combination to build a more diversified and scaled immunology pipeline, and securing the substantial capital required to advance its programs through the remaining stages of clinical development and eventual commercialization.