February 8, 2023

SEIKAGAKU CORPORATION
Consolidated Financial Results (Japan GAAP) (Summary)for the First Nine Months of Fiscal 2022
(Nine-Month Period Ended December 31, 2022)
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 Nine Months of Fiscal 2022
(from April 1, 2022 to December 31, 2022)(1) Consolidated Financial Results(Percentages indicate changes from the same period in the previous fiscal year)
Net sales
Millions ofYen

Operating income
Millions ofYen%

Ordinary income
Millions ofYen%%First nine months of fiscal 2022

26,162(7.0)

3,407(45.4)

4,218(38.9)

First nine months of fiscal 2021

28,145

37.0

6,234

283.7

6,905

231.5

Net income attributable toowners of parent
Millions of%YenFirst nine months of fiscal 2022
First nine months of fiscal 2021

3,628

Net income per share

Diluted net income
per share

YenYen(32.4)

5,364

188.6(Note) Comprehensive income:First nine months of fiscal 2022:
First nine months of fiscal 2021:

6,471
6,164

65.42-

95.25-

million yen [5.0%]
million yen [235.6%](2) Consolidated Financial Position
Total assets

Total equity

Equity ratio

Millions of Yen

Millions of Yen%

As of December 31, 2022

76,636

69,76791.0

As of March 31, 2022

75,244

66,34088.2(Reference) Shareholders’ equity:
As of December 31, 2022:
As of March 31, 2022:

69,767 million yen
66,340 million yen

2. Dividends

Fiscal 2021
Fiscal 2022
Fiscal 2022
(Forecast)

1st QuarterYen-

2nd Quarter
Yen
15.00
13.00

Dividends per share
3rd Quarter
Yen-(Note) Revision of the forecasts most recently announced: No1Year-end

AnnualYen
15.00

Yen
30.00

13.00

26.00

3. Forecast of Consolidated Financial Results for Fiscal 2022 (from April 1, 2022 to March 31, 2023)
Net sales

Fiscal 2022

Operating income

Millionsof Yen%33,500(3.9)

Millionsof Yen

1,700(Percentages indicate changes from the previous fiscal year)
Net income
Net income
Ordinary income
attributable toper shareowners of parent
Millionsof Yen%

(62.2)

2,900%

Millionsof Yen(46.2)

2,650%(29.0)

Yen48.12(Note) Revision of the forecasts most recently announced: No* Notes(1) Changes in the status of material subsidiaries during the period: No(2) Application of specific accounting methods for preparing the quarterly consolidated financialstatements: 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 December
31, 2022

56,814,093 shares

As of March 31,2022

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

As of December
31, 2022

2,273,029 shares

As of March 31,
2022

567,822 shares(c) Average number of shares issued during
the period (six months)

First nine monthsof fiscal 2022

55,468,720 sharesFirst nine monthsof fiscal 2021

56,317,323 shares*This financial reports are not subject to the quarterly review procedures of the certified public accountant and audit
firm.
* 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 dueto various factors.

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1. Results of Operations for the First Nine Months of Fiscal 2022
(Nine-Month Period Ended December 31, 2022)(1) Qualitative explanation on quarterly financial results
In the first nine months (April 1 to December 31, 2022) of the fiscal year ending March 31, 2023 (fiscal 2022),
net sales were ¥26,162 million, down 7.0% year on year. Growth in the LAL business was offset by declining
sales in the pharmaceutical business due to a substantial decline in royalty income and the impact of National
Health Insurance (NHI) drug price reductions in Japan.
Operating income fell 45.4% year on year to ¥3,407 million as a result of the sales decrease,notwithstanding a decrease in R&D expenses accompanying completion of subject enrollment in an additional
clinical study underway in the U.S. for SI-6603, a treatment for lumbar disc herniation. Ordinary income and net
income attributable to owners of parent fell 38.9% to ¥4,218 million and 32.4% to ¥3,628 million, respectively,
declining less steeply than operating income because of the recording of foreign exchange gains due to yen
depreciation.
1) Net sales by segment
Pharmaceuticals Business- Domestic Pharmaceuticals (¥8,850 million, down 3.5% year on year)
Deliveries to medical institutions of ARTZ, a joint function improvement agent for knee osteoarthritis, increasedyear on year thanks to successful measures to promote switching from competing products. The Company’s sales
fell due to the impact of NHI drug price reductions, despite an increase in shipment volume resulting fromshipment timing.
The Company’s sales of the joint function improvement agent JOYCLU, launched on May 19, 2021,
increased year on year, reflecting a longer selling period than in the first nine months of fiscal 2021. Although
the Company called attention to the risk of shock or anaphylaxis in the Important Side Effects section of theJOYCLU package insert, in response to multiple reports of shock or anaphylaxis occurring in patients following
administration of JOYCLU, the Company issued a Dear Healthcare Professionals Letter of Rapid Safety
Communication (Blue Letter) on June 1, 2021 to increase awareness of these side effects among healthcare
professionals. The Company is continuing cooperative efforts with sales partner Ono Pharmaceutical Co., Ltd. toproactively gather side effects reports and other information and provide safety-related information. Also, sinceApril 2022 the Company has been conducting a clinical study to identify the cause of the side effects with thecooperation of specialists and medical institutions.
Deliveries to medical institutions of the OPEGAN series of ophthalmic viscoelastic devices increased year
on year, with the market gradually returning to the pre-COVID growth trend. The Company’s sales rose as aresult of an increase in shipment volume, despite the impact of NHI drug price reductions.
The Company’s sales of MucoUp, a submucosal injection agent for endoscopic surgery, decreased,reflecting a decline in shipments from a high level in the first nine months of the previous fiscal year and theimpact of an NHI reimbursement price revision.
Although deliveries to medical institutions of HERNICORE, a treatment for lumbar disc herniation,
remained at the prior-year level, the Company’s sales rose as a result of shipment timing.
- Overseas Pharmaceuticals (¥6,922 million, up 2.7% year on year)
Local sales volume in the U.S. of Gel-One, an intra-articular single-injection viscosupplement for the treatmentof knee osteoarthritis, decreased year on year, reflecting the impact of a health insurance system change relating
to price disclosure implemented in July 2022. The Company’s sales increased substantially, fueled by the impactof yen depreciation.
Local sales volume in the U.S. of SUPARTZ FX, an intra-articular 5-injection viscosupplement for thetreatment of knee osteoarthritis, rose slightly, despite continuation of unfavorable market conditions due to thetrend toward preference for products that require fewer injections. The Company’s sales were at the prior-year3

level as a result of shipment timing.
Local sales volume in China of ARTZ fell sharply, reflecting the impact of factors including limitation ofaccess to outpatient services accompanying the renewed spread of COVID-19. The Company’s sales declined
substantially because there were no shipments in the first quarter due to a packaging material change. Shipments
restarted in August 2022.
- Bulk Products and Contract Development and Manufacturing Organization (¥2,178 million,
up 11.5% year on year)
Although sales of bulk products were at the prior-year level, sales of contract development and manufacturing
and other services of overseas subsidiary Dalton Chemical Laboratories, Inc. rose due to the impact of yendepreciation.
As a result of these developments and a steep decline in royalty income (¥1 million, down 100.0% year on year),sales from the Pharmaceuticals business segment fell 16.2% year on year to ¥17,953 million.
LAL Business
Sales from the LAL business segment increased 22.1% year on year to ¥8,209 million, reflecting the impact ofyen depreciation on the results from overseas subsidiary Associates of Cape Cod, Inc. and steady sales in Japan.
(2) Explanation of forward-looking statements, including the forecast of consolidated financial results
Although income in the first nine months of fiscal 2022 has already reached the full-year forecast results in theconsolidated financial forecast for fiscal 2022, which was announced on November 8, 2022, in light of expected
fourth-quarter developments such as a decrease in sales of contract testing services at an overseas subsidiary,
higher expenses to result from concentration of R&D expenses in the quarter and soaring fuel costs, andconcentration of periodic plant maintenance because of a semiconductor shortage and other factors, there is nochange to the forecast of consolidated financial results.
Note: The above forecast has been prepared on the basis of economic circumstances, market trends, and otherassumptions made at the time of release of this document. Actual results may differ from the forecast due to avariety of factors.

3) Research and Development Activities
To contribute to healthy and fulfilling lives for people around the world, the Seikagaku Group focuses its
research and development on glycoscience as its area of specialization and aims to create original
pharmaceuticals and medical devices.
To achieve early and continuous launching of new products, which hold the key to future business growth,
the Group will engage in efficient R&D activities focused on target compounds and high-priority target diseases
and make efforts to increase the number of projects through reinforcement of unique drug-discovery
technologies and utilization of open innovation.
Total R&D expenses in the first nine months of fiscal 2022 were ¥5,355 million, or 20.5% of net sales(excluding royalties).
The status of progress of principal R&D activities is described below.

SI-614 (treatment for dry eye: developed in the U.S.)
Subject enrollment has been completed for a Phase III clinical study being conducted since May 2022 with theobjective of evaluating efficacy and safety. After obtaining data from the clinical study currently underway, theCompany plans to select a sales partner and conduct a second Phase III clinical study and a long-term study.
SI-614 is a substance produced by introducing a hydrophobic group into hyaluronic acid using Seikagaku’s
own proprietary technology. Ocular instillation of SI-614 in patients is expected to improve symptoms of dry eyeby stabilizing the tear film and promoting corneal epithelial wound healing. Through development of SI-614, the4Company aims to provide a new option for the treatment of dry eye.
There is no substantial change in the other R&D activities.
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