Risk of Customer Development Stagnation and Employee Infections Due to COVID-19

「The classification of COVID-19 under the Infectious Diseases Control Law was changed to Category 5, and the economy is gradually recovering as social and economic activity normalizes.」

「Research and development activity at domestic and overseas pharmaceutical companies, the Group’s major customers, has recovered from the stagnation caused by the spread of COVID-19, and demand for PXB mice has increased.」

「During the cumulative second-quarter period, Japan’s economy was moving toward normalization of social and economic activity as restrictions on movement imposed due to COVID-19 were eased, although」

「Although overseas revenue temporarily declined because customers’ research and development activity stagnated due to the impact of COVID-19, it has been recovering since the previous fiscal year, and the order environment remains firm.」

「Research and development activity at pharmaceutical companies and research institutions, the Group's major customers, recovered from the impact of the COVID-19 pandemic. Development of anti-hepatitis B drugs by overseas pharmaceutical companies was also active, and revenue remained firm in both the domestic and overseas markets.」

「Research and development activity at pharmaceutical companies and research institutions, the Group’s major customers, showed signs of recovery, and revenue remained firm in both the domestic and overseas markets.」

「Research and development activity at pharmaceutical companies, the Group’s major customers, stagnated due to the impact of COVID-19 and continued to do so for an extended period, particularly in some areas of the United States and Europe where infections spread widely. Laboratory operations gradually resumed as economic activity reopened, and orders recovered toward the second half through progress in developing anti-hepatitis B virus drugs in the pharmacology field and approaches to potential customers using the web.」

「In overseas markets, where the group is focusing its efforts, orders from major pharmaceutical companies, its main customers, have been delayed because research and development activity has remained stagnant for an extended period in the United States and some parts of Europe, where COVID-19 had spread particularly widely. As a result, overseas sales fell substantially below the prior-year period. In the domestic market, laboratory operations gradually resumed after the state of emergency was lifted in May 2020. Efforts to identify potential customers through web seminars launched as a new initiative during the COVID-19 pandemic contributed to orders, and domestic sales exceeded the prior-year period.」

「Although laboratory operations in Japan and overseas at the Group's principal customers, pharmaceutical companies and research institutions, gradually resumed as economic activity restarted, research and development activities remained stalled in the United States and some parts of Europe, where COVID-19 infections were spreading. As a result, revenue and orders in both the pharmacology and efficacy evaluation and safety-related fields fell below the prior-year period.」

「However, laboratory operations at pharmaceutical companies and research institutions, the Group’s major customers, became restricted as COVID-19 spread, resulting in delays and other issues with testing plans. Although laboratory operations in Japan and overseas gradually resumed from June, a full recovery in the order environment had not been achieved because infections were still increasing in some areas of the United States, and both revenue and orders received fell below the same period of the previous year.」

「If the spread of COVID-19 causes new drug development at pharmaceutical companies, the Group’s major customers, to stagnate, this may affect the Group’s operating performance. As infection-prevention measures, the Group has restricted business travel and visitors, introduced working from home, and installed acrylic partitions, while requiring employees to undergo health checks and consistently use masks, wash their hands, and disinfect with alcohol.」