SEIKAGAKU CORPORATION

The Group consists of the Company and 7 subsidiaries and conducts research and development, manufacturing and procurement, and sales of pharmaceuticals and LAL (Limulus amebocyte lysate) products. Its principal products are pharmaceuticals and LAL products, corresponding to its 2 business segments. The Pharmaceuticals segment covers the research and development, manufacturing and procurement, and sales of products including joint function-improving agents, ophthalmic surgical aids, treatments for lumbar disc herniation, and submucosal injection materials for endoscopy. It also includes active pharmaceutical ingredients and contract manufacturing of pharmaceuticals. The LAL segment covers the research and development, manufacturing and procurement, and sales of endotoxin-testing reagents and in vitro diagnostic pharmaceuticals for glucan testing. As a focus of its medium-term management plan, the Group had positioned obtaining US approval for and launching SI-6603, a treatment for lumbar disc herniation, as a priority for future business development, but this objective was not achieved. In the domestic market, the Group continues to maintain a high market share despite the impact of reductions in the official drug prices of joint function-improving agents. In overseas markets, the US market is showing a gradual expansion trend, although the impact of government policies remains uncertain. The Chinese market is gradually expanding against a backdrop of a growing elderly population, while price competition has intensified as the centralized procurement system has expanded. The priority measures under the medium-term management plan are to maximize the approval and launch of SI-6603, accelerate research and development by leveraging drug discovery technologies, maintain and enhance the business value of joint function-improving agents, establish a global production system, and expand the LAL business. The Group is also promoting sustainability as an important management issue.