Uncertainty in Pharmaceutical R&D, Regulatory Approval and Sales

「In the pharmaceutical business, the Group is making maximum effective use of its resources by focusing on disease areas in which it can leverage the foundation and expertise in small-molecule drug discovery accumulated to date, and is working to shorten research and development periods and reduce costs through efficient drug discovery research using AI and data science. The Group is also seeking to accelerate research and development and improve the probability of successful drug discovery by working with companies and academic institutions in Japan and overseas to establish proprietary drug discovery technologies, while expanding its pipeline through the proactive out-licensing and in-licensing of compounds to build a stable earnings base.」

「The various risks relating to the Group's pharmaceutical business include the following: ・The risk that the Group will be unable to research, develop or launch pharmaceuticals with commercial value ・The risk that pharmaceutical research and development will require a long period of time and substantial research and development expenditure ・The risk that research and development, manufacturing or sales of pharmaceuticals will have to be discontinued because of unexpected side effects or inadequate clinical results」