Sysmex : Forms Capital and Business Tie-up with KAINOS Laboratories to Drive Growth in the Immunochemistry Field- Deepening Alliance in Reagent Development/Production to Create a Win-Win Situation - (PDF：180KB)

February 25, 2022

Sysmex Corporation

Sysmex Forms Capital and Business Tie-up with KAINOS Laboratories

to Drive Growth in the Immunochemistry Field

- Deepening Alliance in Reagent Development/Production to Create a Win-Win Situation -

Sysmex Corporation (HQ: Kobe, Japan; Chairman and CEO: Hisashi Ietsugu) announced today that

it has formed a capital and business tie-up with KAINOS Laboratories, Inc. (Head Office: Bunkyo-ku,

Tokyo; Representative Director and President: Shiro Kamiji) with a view toward strengthening capabilities to develop and produce diagnostic reagents in the immunochemistry field.

On May 12, 2021, Sysmex announced the Group mid-term management plan, which will conclude in the fiscal year ending March 31, 2024. In an attempt to achieve high growth through proactive investment in key fields (hemostasis, immunochemistry and life science), we are prioritizing the allocation of management resources to these key fields in order to create new value and enhance product lineups. In immunochemistry, one of the key fields, we are delivering new diagnostic technologies to medical settings, while at the same time expanding the diagnostic reagent lineup to better cater to clinical needs unique to each market, such as Japan, China, and the Asia Pacific region.

Sysmex and KAINOS have been collaborating with each other to expand the lineup of immunochemistry diagnostic reagents, with KAINOS assuming responsibilities for the development and production of selected diagnostic reagents for the HISCL™ series, Sysmex's immunochemistry measurement platform.

On February 25, 2022, the two companies agreed to a new capital and business tie-up concerning the development and production of immunochemistry diagnostic reagents. Pursuant to this agreement, KAINOS will dispose of its treasury stock (230,000 shares) through a third-party allocation to Sysmex. With this, Sysmex will own 5.05% of KAINOS's shares outstanding. The date of acquisition of the shares is scheduled for March 14, 2022.

By further advancing its collaborative relationship with KAINOS through this tie-up, Sysmex intends to accelerate the expansion of its immunochemistry diagnostic reagent line while simultaneously contributing to resolution of the various challenges faced by medical professionals through the provision of its products and services and thus accelerating growth in the immunochemistry field.

Objectives of the tie-up

• Sysmex will utilize KAINOS's development and supply system of distinctive diagnostic reagents in an effort to accelerate the expansion of its diagnostic reagent portfolio, which specifically responds to the diverse diagnostic needs of the global market.
• KAINOS will leverage Sysmex's global sales and service network to further establish its foothold in the global market as it develops and supplies diagnostic reagent products for Sysmex's HISCL™ series and other measurement platforms.
• Both companies will drive business development by continuously bolstering their own strengths through mutual collaboration.

About KAINOS
Company name:	KAINOS Laboratories, Inc.
Date established:	May 1, 1975
Business activities:	Development, manufacturing, marketing, distribution, and import/export
	of pharmaceuticals, diagnostic reagents, medical supplies, etc.
Address:	38-18, Hongo 2-chome,Bunkyo-ku, Tokyo, Japan
Representative:	Shiro Kamiji, Representative Director and President

Reference

May 12, 2021 press release entitled "Sysmex Announces New Group Mid-Term Management Plan - Harnessing Group Wide Capabilities and Promoting Corporate Reforms with a View to Sustainable Growth -"https://www.sysmex.co.jp/en/news/2021/pdf/210512_03.pdf

Sysmex's materiality

Sysmex has identified "Resolution of medical issues through products and services" as one of the issues that we prioritize (materiality) as we work to develop and supply products with high clinical value. Leveraging our proprietary technology and the global network that we have cultivated thus far, we continue to strive to contribute to the development of healthcare and the healthy lives of people.

The purpose of this press release is to communicate our business activities to our stakeholders. It may or may not include information about Sysmex's products or their research and development, but this is not intended for promotion, advertising or medical advice. The information contained in this press release is current as of the date of the announcement but may be subject to change without prior notice.