August 5, 2024

SEIKAGAKU CORPORATION
Consolidated Financial Results (Japan GAAP) (Summary)for the First Three Months of Fiscal 2024
(Three-Month Period Ended June 30, 2024)
Listed exchanges: Tokyo Stock Exchange (Prime Market)
Stock code number: 4548
URL: https://www.seikagaku.co.jp/en/(All amounts have been rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Three Months of Fiscal 2024
(from April 1, 2024 to June 30, 2024)(1) Consolidated Financial Results(Percentages indicate changes from the same period in the previous fiscal year)
Net sales

Operating income

Millions ofYen

Millions ofYen%

Ordinary income
Millions ofYen%%First three months of fiscal 2024

10,022

3.7

1,640

26.3

2,186

11.6

First three months of fiscal 2023

9,661

16.3

1,298

15.3

1,959

14.3

Net income attributable toowners of parent
Millions of%
Yen

Net income per share

Diluted net income
per share

Yen

Yen

First three months of fiscal 2024

1,901

0.7

34.84

-

First three months of fiscal 2023

1,887

26.4

34.62

-

(Note) Comprehensive income:First three months of fiscal 2024:
First three months of fiscal 2023:

3,158 million yen [3.6%]
3,048 million yen [41.0 %](2) Consolidated Financial Position
Total assets

Total equity

Equity ratio

Millions of Yen

Millions of Yen%

As of June 30, 2024

83,41474,731

89.6

As of March 31, 2024

81,79572,282

88.4(Reference) Shareholders’ equity:
As of June 30, 2024: 74,731 million yen
As of March 31, 2024: 72,282 million yen

2. Dividends

Fiscal 2023
Fiscal 2024
Fiscal 2024
(Forecast)

1st QuarterYen-

2nd Quarter
Yen
13.00

Dividends per share
3rd Quarter
Yen-

15.00

-(Note) Revision of the forecasts most recently announced: No1Year-end

AnnualYen
13.00

Yen
26.00

15.00

30.00

* Notes(1) Changes in the status of material subsidiaries during the period: No(2) Application of specific accounting methods for preparing the quarterly consolidated financial
statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and retrospective restatements(a) Changes in accounting policies accompanying revisions in accounting standards: Yes(b) Changes other than those in (a) above: No(c) Changes in accounting estimates: No(d) Retrospective restatements: No(4) Number of shares issued (common stock):(a)Number of shares at the end of the period(including treasury stock)

As of June 30,
2024

56,814,093 shares

As of March 31,
2024

56,814,093 shares(b) Number of treasury stock at the end ofthe period

As of June 30,
2024

2,253,745 shares

As of March 31,
2024

2,253,745 shares(c) Average number of shares issued during
the period (three months)

First three monthsof fiscal 2024

54,560,348 sharesFirst three monthsof fiscal 2023

54,541,064 shares* This financial reports are not subject to the quarterly review procedures of the certified public accountant and auditfirm.
* Disclaimer regarding forward-looking information including appropriate use of forecasted financial results
The forecast shown in these materials are based on information currently available and certain assumptions that theCompany regards as reasonable. Actual performance and other results may differ materially from these forecasted figures due
to various factors.

21. Results of Operations for the First Quarter of Fiscal 2024 (Three-Month Period Ended June 30, 2024)(1) Qualitative explanation on quarterly financial results
In the first three months (April 1 to June 30, 2024) of the fiscal year ending March 31, 2025 (fiscal 2024), netsales were ¥10,022 million, up 3.7% from the first quarter of fiscal 2023. The increase is attributable to higher
royalty income and higher overseas sales in the LAL business, despite lower sales of Gel-One, an intra-articularsingle-injection viscosupplement for the treatment of knee osteoarthritis for the U.S. market, and ARTZ forChina.
Operating income rose 26.3% year on year to ¥1,640 million, due in part to lower R&D expenses. Ordinary
income and net income attributable to owners of parent rose 11.6% and 0.7% year on year, respectively, to¥2,186 million and ¥1,901 million.
1) Net sales by segment
Pharmaceutical Business
Seikagaku has adopted a business model of focusing management resources on R&D and manufacturing byforming alliances with domestic and overseas companies that have expertise in the Company’s product fields andentrusting sales to these business partners, rather than having an in-house pharmaceuticals sales division. In viewof this business structure, in addition to providing an overview of product sales from Seikagaku to business
partners, the Company also reports on the status of sales from business partners to medical institutions using“deliveries to medical institutions” or “local sales volume” as performance indicators.
- Domestic Pharmaceuticals (¥2,791 million, down 15.7% year on year )Revenue from domestic pharmaceuticals fell 15.7% year on year, mainly because of lower sales of ARTZ, a joint
function improvement agent for knee osteoarthritis, and the OPEGAN series of ophthalmic viscoelastic devices.
Deliveries to medical institutions of ARTZ increased year on year thanks to continued switching from competingproducts. However, the Company’s sales declined due to a shipment volume adjustment accompanying facilities
maintenance for the purpose of production system expansion at the Company’s plant.
Deliveries to medical institutions of the OPEGAN series increased year on year, reflecting a continued gradualmarket growth trend accompanying population aging. Nevertheless, the Company’s sales fell year on year,
following a temporary increase in shipments of Seikagaku products in the prior-year first quarter due to limited
shipments of competing products.
The Company’s sales of HERNICORE, a treatment for lumbar disc herniation, declined year on year, while salesof MucoUp, a submucosal injection agent for endoscopic surgery, increased.
The Company’s sales of the joint function improvement agent JOYCLU increased year on year. The Company
issued a Dear Healthcare Professionals Letter of Rapid Safety Communication (Blue Letter) concerning
JOYCLU on June 1, 2021 and is continuing cooperative efforts with sales partner Ono Pharmaceutical Co., Ltd.
to gather side effects reports and other information and provide safety-related information.
- Overseas Pharmaceuticals (¥1,147 million, down 50.6% year on year )Revenue from overseas pharmaceuticals fell 50.6% year on year due to lower sales of Gel-One, an intra-articularsingle-injection viscosupplement for the treatment of knee osteoarthritis for the U.S. market, and lower sales ofARTZ for China, despite higher sales of SUPARTZ FX, an intra-articular 5-injection viscosupplement for thetreatment of knee osteoarthritis for the U.S. market.
Although local sales volume of Gel-One was at the prior-year level, the Company’s sales declined due toshipment timing.
Although local sales volume in the U.S. of SUPARTZ FX was at the prior-year level, the Company’s sales
increased due to the impact of yen depreciation.
Sales volume of ARTZ for China fell sharply year on year, reflecting bringing forward of shipments into fiscal
2023.
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- Bulk Products and Contract Development and Manufacturing Organization (¥732 million, down 12.4%year on year )The Company’s sales decreased 12.4% year on year due to lower sales of bulk products and of contractdevelopment and manufacturing and other services of overseas subsidiary Dalton Chemical Laboratories, Inc.
As a result of these developments and an increase in royalty income (¥2,388 million, up 241.5% year on year),sales from the Pharmaceuticals business segment fell 1.6% year on year to ¥7,059 million.
LAL Business
Sales from the LAL business segment increased 19.1% year on year to ¥2,962 million. In addition to higher salesin Japan, sales at overseas subsidiary Associates of Cape Cod, Inc. rose year on year thanks to steady progress indevelopment of new customers for PyroSmart NextGen recombinant reagent for endotoxin detection.
(2) Explanation of forward-looking information, including the forecast of consolidated financial results
There is no change in the full-year forecast of consolidated financial results announced on May 13, 2024.

(3) Research and Development Activities
To contribute to healthy and fulfilling lives for people around the world, the Seikagaku Group focuses its researchand development on glycoscience as its area of specialization and aims to create original pharmaceuticals andmedical devices.
To achieve early and continuous launching of new products, which hold the key to future business growth, theGroup will engage in efficient R&D activities focused on target compounds and high-priority target diseases andmake efforts to increase the number of projects through reinforcement of unique drug-discovery technologies andutilization of open innovation.
Total R&D expenses in the first three months of fiscal 2024 were ¥1,557 million, or 20.4% of net sales (excludingroyalties).
The status of progress of principal R&D activities is described below.
SI-6603 (treatment for lumbar disc herniation: developed in the U.S.)
Seikagaku submitted a Biologics License Application (BLA) for SI-6603 in March 2024, which was accepted forfiling by the U.S. Food and Drug Administration (FDA) in May 2024. Preparations are currently underway toobtain approval.
SI-6603, which contains condoliase as its active pharmaceutical ingredient, is a therapeutic agent directlyinjected into the lumbar disc. It does not require general anesthesia and is less invasive to the patient thansurgical treatment. Since a single-injection treatment is expected to improve the symptoms of lumbar discherniation, the Company aims to provide SI-6603 as a new treatment option.
There is no substantial change on the other R&D activities.
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