Seikagaku : Financial Results for the Fiscal Year 2022

Exploring the Innovative

Promise of Glycoscience

Financial Results

for the Fiscal Year 2022

(April 1, 2022 - March 31, 2023)

（TSE：4548）

Contents

	FY2022 Results	P3
 Net Sales / Income	P4-8
	FY2023 Forecasts	P9
 Net Sales / Income	P10-11
 Trend in R&D Expenses	P12

• Sales by Business Segment P13

 Domestic Pharmaceuticals	P13-15
	Overseas Pharmaceuticals	P16-17
	LAL	P18

Exploring the Innovative

Promise of Glycoscience

 Research and Development	P19
 SI-6603	P20
(Lumbar disc herniation)
 SI-614 (Dry Eye)	P21
 SI-722	P22
(Interstitial cystitis and bladder pain syndrome)
 SI-449 (Adhesion Barrier)	P23
 Progress Against the Mid-Term	P24
Management Plan in Fiscal 2022

• Basic Policy on Profit Distribution P25
• AppendixP26

< Cautionary Notes >

This material contains forward-looking statements regarding future management strategies or performance forecasts. These statements are based on judgments derived from information that is currently available to Seikagaku and are subject to risk and uncertainty. Actual results and developments may differ significantly from these forward-looking statements due to various factors.

Information about pharmaceutical products or medical devices (including products currently in development) included in this material is not intended to constitute an advertisement or medical advice.

2

Overview of FY 2022

Exploring the Innovative Promise of Glycoscience

		FY2022	Year-on-Year	Comparison with Forecasts
(Millions of Yen)		Results	Change	% of Change	Change	% of Change
Net sales		33,456	-1,394	-4.0%	-43		-0.1%
Operating		2,114	-2,381	-53.0%	+414		+24.4%
Income
Ordinary		3,069	-2,325	-43.1%	+169		+5.8%
Income
Net Income		2,236	-1,496	-40.1%	-413		-15.6
						%
R&D Expenses		7,951	-1,053	-11.7%	-48		-0.6%
(excluding royalty
income)		(23.8%)	(-5.4pt)		(-0.1pt)
Rate (1US$)		¥135.48	+23.10
Average Exchange
			FY2022 Results	FY2021 Results	FY2022 Forecasts
Net Income per Share	¥40.49	¥66.32	¥48.12
R O E		3.3%	%
			5.7

3

Net sales by Business Segment (FY2022)

Exploring the Innovative Promise of Glycoscience

			FY2022	Year-on- % of
	(Millions of Yen)	Results	Year	Change
		Net sales	33,456	-1,394	-4.0%
	Pharmaceuticals	22,723	-2,972	-11.6%
		Domestic	11,271	-175	-1.5%
		Pharmaceuticals
		Overseas	8,534	+881	+11.5%
		Pharmaceuticals
		Bulk Products	2,916	+309	+11.9%
		/CDMO
		Royalty Income	1	-3,988-100.0%
	LAL Business	10,732	+1,577	+17.2%
(Overseas sales)	20,048	+2,130	+11.9%

• Foreign exchange impact on overall net sales ： approx. +3,050million yen

Domestic Pharmaceuticals

▶ ARTZ（Joint-function improving agent）

• Sales down due to the impact of NHI drug price reductions, despite higher shipment volume because of an increase in deliveries to medical institutions and the impact of shipment timing

▶ JOYCLU（Joint-function improving agent）

• Sales up because of a longer selling period than in FY2021

▶ OPEGAN series（Ophthalmic viscoelastic devices）

• Sales at the prior-year level, with higher shipment volume accompanying market recovery and shipment adjustments of competing products offsetting NHI drug price reductions

▶ MucoUp

（Submucosal injection agent for endoscopic surgery）

• Sales down due to the impact of an NHI reimbursement price revision
• HERNICORE (Treatment for lumbar disc herniation)
• Sales up due to the impact of shipment timing
  4

Net sales by Business Segment (FY2022)

Exploring the Innovative Promise of Glycoscience

		FY2022	Year-on- % of
(Millions of Yen)	Results	Year	Change
	Net sales	33,456	-1,394	-4.0%
Pharmaceuticals	22,723	-2,972	-11.6%
	Domestic	11,271	-175	-1.5%
	Pharmaceuticals
	Overseas	8,534	+881	+11.5%
	Pharmaceuticals
	Bulk Products	2,916	+309	+11.9%
	/CDMO
	Royalty Income	1	-3,988-100.0%
LAL Business	10,732	+1,577	+17.2%
(Overseas sales)	20,048	+2,130	+11.9%

Overseas Pharmaceuticals

*Foreign exchange impact on Overseas Pharmaceuticals: approx. +1,150 million yen

• Gel-Onein the U.S. (Single injection)
• Sales substantially up due to yen depreciation

Gel-One:Single-injection joint function improving agent

• SUPARTZ FX in the U.S. (Multiple injection）
• Sales up due to yen depreciation
• ARTZ in China (Multiple injection)
• Sales substantially down, reflecting the absence of shipments until July due to a packaging material change coupled with a decrease in local sales due to the impact of COVID-19

＊ Foreign exchange impact on overall net sales ：
approx. +3,050million yen	5