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

Exploring the Innovative

Promise of Glycoscience

Financial Results

for the 3rd Quarter of Fiscal Year 2022

(April 1, 2022 - December 31, 2022)

（TSE：4548）

Contents

 3rd Results	P3
 Net Sales	P3-8
	Income	P9
	Trend in R&D Expenses	P10

Exploring the Innovative

Promise of Glycoscience

 Research and Development	P11
 SI-6603	P12
(Lumbar disc herniation)
 SI-614	P13
(Dry Eye)
 SI-613	P14
(Osteoarthritis/Enthesopathy)
 SI-722	P15
(Interstitial cystitis and bladder pain syndrome)
 SI-449 (Adhesion Barrier)	P16
 Dividends from Surplus and	P17
Treasury Stock Acquisition
 Appendix	P18

< 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.

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Overview for 3Q of FY 2022

Exploring the Innovative Promise of Glycoscience

	3Q FY2022	Year-on-Year	(Reference)
	FY2022 Full Year Forecasts
（百万円）	Results	Change	% of Change	FY 2022	Degree of
	Forecasts	Progress
Net sales	26,162	-1,983	-7.0%	33,500	78.1%
Operating	3,407	-2,827	-45.4%	1,700	200.4%
Income
Ordinary	4,218	-2,687	-38.9%	2,900	145.5%
Income
Net Income	3,628	-1,735	-32.4%	2,650	136.9
				%
R&D Expenses	5,355	-500	-8.6%	8,000	66.9%
(excluding royalty
income)	(20.5%)	(-3.3pt)		(23.9%)
Rate (1US$)	¥136.53	+25.43		¥140.00
Average Exchange

	3Q FY2022	3Q FY2021	(Reference)
	Results	Results	FY2022 Forecasts
Net Income per Share	¥65.42	¥95.25	¥48.12

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Net sales by Business Segment (3Q of FY2022)

Exploring the Innovative Promise of Glycoscience

			3Q FY2022	Year-on- % of
	(Millions of Yen)	Results	Year	Change
		Net sales	26,162	-1,983	-7.0%
	Pharmaceuticals	17,953	-3,466	-16.2%
		Domestic	8,850	-323	-3.5%
		Pharmaceuticals
		Overseas	6,922	+179	+2.7%
		Pharmaceuticals
		Bulk Products	2,178	+225	+11.5%
		/CDMO
		Royalty Income	1	-3,548-100.0%
	LAL Business	8,209	+1,483	+22.1%
(Overseas sales)	15,680	+1,757	+12.6%

Domestic Pharmaceuticals

• ARTZ（Joint-function improving agent）
• Market size at the prior-year level (-0.6%)
• Deliveries to medical institutions up due to switching from competing products (+1.7%)
• Market share up as well (+1.5 pt)
• Company sales down because of NHI drug price reductions, despite higher shipment volume due to shipment timing adjustment
• JOYCLU（Joint-function improving agent）
• Launched in May 2021
• Information provision efforts aimed at ensuring appropriate use
• Company sales up due to longer selling period than in FY2021

＊ Foreign exchange impact on overall net sales ：
approx. +2,250million yen	4

Exploring the Innovative

Safety Information on Joint Function Improving Agent JOYCLUPromise of Glycoscience

Blue Letter (rapid safety information) issued in June 2021 Seikagaku is further raising awareness among healthcare professionals and taking measures to identify the cause

Dear Healthcare Professionals Letter of Rapid Safety Communication (Blue Letter) issued on June 1 in response to multiple reports of anaphylaxis occurring in patients following administration of JOYCLU

• To ensure patient safety by promptly alerting healthcare professionals of the situation to enable the provision of appropriate treatment and measures
• Addition of a WARNING section to the drug package insert and revision of the IMPORTANT PRECAUTIONS section
• Leaflet created to alert patients and their families to the risk of side effects
• Continued gathering of safety information and provision of safety-related information
• Physician-ledclinical research to identify the cause initiated in April 2022

Continue gathering of safety information and provision of safety-related

information in collaboration with sales partner Ono Pharmaceutical Aim to contribute to appropriate treatment on the basis of clinical research findings

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