Seikagaku : Financial Results for the Second Quarter of Fiscal Year 2022

Exploring the Innovative

Promise of Glycoscience

Financial Results

for the 2nd Quarter of Fiscal Year 2022

(April 1, 2022 - September 30, 2022)

（TSE：4548）

Contents

	2nd Results	P3
 Net Sales / Income	P3-7
	FY2022 Forecasts	P8
 Net Sales / Income	P9-10
 Trend in R&D Expenses	P11

• Sales by Business Segment P12

 Domestic Pharmaceuticals	P12-13
	Overseas Pharmaceuticals	P14-15
	LAL	P16

Exploring the Innovative

Promise of Glycoscience

 Mid-term Management Plan	P17
 Summary of Previous Mid-term	P19
Management Plan
 Overview of Current Mid-term	P21
Management Plan
 Key Measures	P24
 Sustainability	P38
 Numerical targets	P43
 Basic Policy on Profit Distribution	P44
 Appendix	P47

< Cautionary Notes >

This material contains forward-looking statements regarding future management strategies or performance forecasts. These statements are based on judgments derived from information that is currently available to Seikagaku and are subject to risk and uncertainty. Actual results and developments may differ significantly from these forward-looking statements due to various factors.

Information about pharmaceutical products or medical devices (including products currently in development) included in this material is not intended to constitute an advertisement or medical advice.

2

Overview for 2Q of FY 2022

Exploring the Innovative Promise of Glycoscience

		2Q FY2022				Year-on-Year
(Millions of Yen)		Results		Change			% of Change
Net sales		17,258			-3,272		-15.9%
Operating Income		2,610			-3,428		-56.8
	3,600			-2,793		%
Ordinary Income					-43.7
								%
Net Income		3,141			-1,877		-37.4%
R&D Expenses		3,407				-394		-10.4%
(excluding royalty income)		(19.7%)				(-2.7pt)
Average Exchange Rate (1US$)			￥133.98				+24.18
			2Q FY2022	2Q FY2021		(Reference)
			Results	Results		FY2022 Forecasts
Net Income per Share		¥56.32	¥89.07	¥48.12

3

Net sales by Business Segment (2Q of FY2022)

Exploring the Innovative Promise of Glycoscience

			2Q FY2022	Year-on- % of
	(Millions of Yen)	Results	Year	Change
		Net sales	17,258	-3,272	-15.9%
	Pharmaceuticals	11,692	-4,444	-27.5%
		Domestic	5,808	-997	-14.7%
		Pharmaceuticals
		Overseas	4,384	-65	-1.5%
		Pharmaceuticals
		Bulk Products	1,497	+167	+12.6%
		/CDMO
		Royalty Income	1	-3,548-100.0%
	LAL Business	5,566	+1,171	+26.7%
(Overseas sales)	10,353	+1,218	+13.3%

• Foreign exchange impact on overall net sales ： approx. +1,250million yen

Domestic Pharmaceuticals

▶ ARTZ（Joint-function improving agent）

• Shipment volume up due to shipment timing, but sales down due to the impact of NHI drug price reductions

▶ JOYCLU（Joint-function improving agent）

• Substantial decline in sales reflecting concentration of shipments in 1H FY2021 because of the launch

▶ OPEGAN series（Ophthalmic viscoelastic devices）

• Sales down due to a sales partner inventory adjustment and NHI drug price reductions

▶ MucoUp

（Submucosal injection agent for endoscopic surgery）

• Sales down, reflecting a decline from high level of shipments in first half of previous fiscal year and impact of NHI reimbursement price revision
• HERNICORE (Treatment for lumbar disc herniation)
• Sales up as a result of the shipment schedule
  4

Net sales by Business Segment (2Q of FY2022)

Exploring the Innovative Promise of Glycoscience

		2Q FY2022	Year-on- % of
(Millions of Yen)	Results	Year	Change
	Net sales	17,258	-3,272	-15.9%
Pharmaceuticals	11,692	-4,444	-27.5%
	Domestic	5,808	-997	-14.7%
	Pharmaceuticals
	Overseas	4,384	-65	-1.5%
	Pharmaceuticals
	Bulk Products	1,497	+167	+12.6%
	/CDMO
	Royalty Income	1	-3,548-100.0%
LAL Business	5,566	+1,171	+26.7%
(Overseas sales)	10,353	+1,218	+13.3%

Overseas Pharmaceuticals

*Foreign exchange impact on Overseas Pharmaceuticals: approx. +500 million yen

• Gel-Onein the U.S. (Single injection)
• Sales substantially up, fueled by the impact of yen appreciation

Gel-One:Single-injection joint function improving agent

• SUPARTZ FX in the U.S. (Multiple injection）
• Sales down due to shipment timing
• ARTZ in China (Multiple injection)
• Sales down substantially, with no shipments through July due to a packaging material change
• Resumption of shipments in August, on schedule

＊ Foreign exchange impact on overall net sales ：
approx. +1,250million yen	5