Expansion of production facilities at the Zao Plant and annual capacity of 2.5 million units

「In the pharmaceutical manufacturing and marketing business, we are proceeding with construction of the Zao No. 2 Plant to fulfill our responsibility to ensure a stable supply and respond to further growth in demand, and the plant was completed in June 2026. Regarding operations, we are preparing to bring forward the planned start from July 2027 to March 2027 to ensure a stable supply of core products for which demand from medical institutions is high.」

「In the pharmaceutical manufacturing and sales business, the Group is proceeding with construction of the Zao Second Plant toward commencement of operations in July 2027. At the Coai Sei head office plant, also in Yamagata, it is also taking steps to ensure pharmaceutical quality and safety and strengthen its stable supply system ahead of the scheduled renewal of its pharmaceutical manufacturing license in December 2026.」

「In the pharmaceutical manufacturing and marketing business, the Company made capital investments of ¥3,004.601 million. This was primarily attributable to the construction of the Zao No. 2 Plant by Koai Sei Co., Ltd., which proceeded as planned.」

「Koai Sei Co., Ltd., a consolidated subsidiary of the Company, entered into a construction management and construction contract for the construction of the Zao No. 2 Plant on 20 September 2024.」

「Capital investment by the Group is generally planned individually by the Company and its consolidated subsidiaries, with coordination led by the Company. (1) Construction of significant facilities Company name Business site Location Segment Description of facility Planned investment Funding method Scheduled start and completion Total (¥ thousand) Amount already paid (¥ thousand) Start Completion Coai Sei Co., Ltd. Yamagata City, Yamagata Prefecture Pharmaceutical manufacturing and sales business Construction of the Zao Second Plant 6,500,000 468,629 Internal funds, funds from capital increases, and borrowings September 2024 June 2026」

「The pharmaceutical warehouse being constructed at the Zao Plant began operations in March 2024.」

「The company also decided to construct a second plant on the Zao Plant premises to accommodate further demand growth and fulfill its responsibility to ensure stable supply. The second plant will be a high-potency sterile pharmaceutical manufacturing facility designed for mass production of 12 million 1–2 mL prefilled syringes per year.」

「As part of these efforts, the company is proceeding with construction of a new pharmaceutical warehouse on the Zao Plant premises to increase production of products expected to see further demand growth and establish a stable supply system, with operations scheduled to begin around March 2024.」

「To strengthen production capacity for products expected to see further demand growth and improve the stable supply system, construction of a new pharmaceutical warehouse is currently under way on the Zao Plant premises, with operations scheduled to begin around March 2024.」

「Among the injectables that are a strength of our pharmaceutical manufacturing and marketing business, the gap from prevailing market prices is small. We are focusing in particular on manufacturing highly potent injectables, for which substitution by generic drugs has been relatively limited, while working to further improve productivity. As part of these efforts, we decided to build a new pharmaceutical warehouse on the site of the Zao Plant in order to increase production of products for which further demand growth is expected and establish a stable supply system. The warehouse will strengthen production capacity by securing stable inventories of raw materials and increasing the number of products manufactured. By improving our stable supply system, we aim to further expand the pharmaceutical manufacturing and marketing business.」

「From January 2023, operation of the in-line visual inspection system for plastic syringes, which had been introduced progressively at the Zao Plant, is expected to support preparations for increased production and improve productivity.」

「Since December 2017, we have undertaken contract manufacturing of Maxacalcitol Intravenous Injection Syringe for Dialysis, indicated for “secondary hyperparathyroidism under maintenance dialysis.” At Coai Sei Co., Ltd.'s Zao Plant, handover of the vial line following the syringe line was completed in June 2019, and」

「The syringe line is already in operation at the plant, and the vial liquid formulation and lyophilization lines are scheduled to begin operating in succession.」

「Sales grew substantially after we began increasing production of Maxacalcitol Intravenous Injection for Dialysis, which was launched in January 2018.」

「Production has also begun at the high-potency injectable drug plant of Maxacalcitol Intravenous Injection for Dialysis. We have established a two-shift production system to increase output and expect this to make a further contribution to results.」

「Planned investment: ¥1,296.000 million　Start: October 2017　Completion: October 2018　New capacity: 2.5 million units/year」