English translation

Summary of Financial Results
for the First Quarter of Fiscal Year Ending December 31, 2016
[Japanese GAAP] (Non-consolidated)
May 10, 2016
Company Name

SymBio Pharmaceuticals Limited

Listing: Tokyo Securities Exchange

Securities Code4582

URL: http://www.symbiopharma.com/

Representative

Representative Director,
President and Chief Executive Officer

Fuminori Yoshida

Director, Finance & Accounting

Contact Person
Scheduled Date to File
Quarterly Report

Tetsuya Maruyama
Date of dividend
payment (plan)May 11, 2016

Supplementary materials for quarterly financial results:

Yes

No

Holding of quarterly earnings performance review:

Yes

No

TEL +81-3-5472-1125－(millions of yen – rounded down, unless otherwise stated)

1. Business Results for the First Quarter of FY 2016 (January 1, 2016 to March 31, 2016)(1) Operating Results (cumulative)(Percentages indicate year-on-year changes)
Operating Income
Ordinary Income
Quarterly Net Income
Net Sales(loss)(loss)(loss)
millions of yen%

millions of yen%

millions of yen%

millions of yen

%

193
408

(52.7)
135.0

(518)
(332)

－
－

(655)
(418)

－
－

(652)
(420)

－
－

1Q FY 2016
1Q FY 2015

Quarterly Net Income(loss) per share

Diluted Quarterly Net
Income per share

Yen(20.15)(12.98)Yen－－

1Q FY 2016
1Q FY 2015

(Note) Diluted quarterly net income per share is not stated above due to quarterly net loss per share, despite the potential dilution of shares.

(2) Financial Position

1Q FY 2016 (as of March 31, 2016)
FY 2015 (as of December 31, 2015)(Reference) Equity:

Total Assets

Net Assets

millions of yen
4,438
4,984

millions of yen
3,804
4,431

1Q FY 2016 (as of March 31, 2016)
FY 2015 (as of December 31, 2015)

Equity Ratio
%
78.4
82.9

3,479 million yen
4,131 million yen

2. Dividends

FY 2015
FY 2016
FY 2016 (Forecast)

1st Quarter
Yen－－

Annual Dividend per Share
2nd Quarter
3rd Quarter
Fiscal Year End
Yen
Yen
Yen
0.00
－
0.00
0.00

(Note) Revision of dividend forecasts recently announced:－
Yes ・ No

0.00

Full Year
Yen
0.00
0.00

3. Earnings Forecasts for FY 2016 (January 1, 2016 to December 31, 2016)(Percentages indicate year-on-year changes)

Operating
Income (loss)

Net Sales
millions of yen

Full Year

2,339% millions of yen

21.0(2,778)

Ordinary
Income (loss)

Net Income (loss)
per share% millions of yen%

millions of yen%

Yen(2,811)－(2,815)－(83.22)－

Yes ・ No

(Note) Revision of earnings forecasts recently announced:

Notes:(1) Application of special accounting treatment in
preparation of quarterly financial reports:

Net Income (loss)

Yes ・ No

(2) Changes in accounting policies, changes in accounting estimates and restatements after error corrections:(a) Changes in accounting policies due to revisionof accounting standards:

Yes ・ No(b) Changes in accounting policies due to otherreasons:

Yes ・ No(c) Changes in accounting estimates:

Yes ・ No(d) Restatements after error correction:

Yes ・ No

(3) Number of shares outstanding (common stock)(i) Number of shares outstanding at the end of
the period (including treasury stock)

1Q FY 2016

32,390,923 shares

FY 2015

32,390,923 shares(ii) Number of shares of treasury stock at theend of the period

1Q FY 201675 shares

FY 201575 shares(iii) Average number of shares during the period(cumulative)

1Q FY 2016

32,390,848 shares

1Q FY 2015

32,390,848 shares* Status of quarterly review
The review of quarterly financial statements as required by the Financial Instruments and Exchange Act was underway as of thedate of this disclosure document.
* Explanation regarding the appropriate use of earnings forecasts and other matters
All forecasts presented in this document, including earnings forecasts, are based on the information currently available tomanagement and assumptions judged to be reasonable. Actual results may differ substantially from these forecasts due to various
factors. Regarding the assumptions on which the Company’s earnings forecasts are based and their usage, please refer to “1.
Qualitative Information Concerning Quarterly Financial Results, and (3) Qualitative information concerning earnings forecasts,”
on Page 2 of the attachment.

SymBio Pharmaceuticals Limited (4582) Summary of Financial Results [Japanese GAAP] (Non-consolidated)
Results for the first quarter of fiscal year ending December 31, 2016

Index of the attachment
1. Qualitative Information Concerning Quarterly Financial Results …………………………………………………….……

1(1) Qualitative information concerning business results ……………………………………………………………………

1(2) Qualitative information concerning financial position …………………………………………….……………………

2(3) Qualitative information concerning earnings forecasts …………………………………………………………………

2

2. Quarterly Financial Statements ………………………………………………………………………………………….….

3(1) Balance sheets …………………………………………………………………………………………………………..

3(2) Statements of operations (cumulative)…………………………………………………………………………………..

5(3) Notes on quarterly financial statements …………………………………………………………………………………

6(Notes regarding going concern assumption) ……………………………………………………………………………

6(Notes regarding significant changes in shareholders’ equity) ………………………………….………………………

6(Significant subsequent events) …………………………………………………………..……………….………………

6

SymBio Pharmaceuticals Limited (4582) Summary of Financial Results [Japanese GAAP] (Non-consolidated)
Results for the first quarter of fiscal year ending December 31, 2016

1. Qualitative Information Concerning Quarterly Financial Results(1) Qualitative information concerning business results
Progress in the Company’s business for the first quarter of FY 2016 is as follows:(i) Domestic[Anticancer agent: SyB L-0501 (generic name: bendamustine hydrochloride, trade name: TREAKISYM®)]
The Company markets TREAKISYM® in Japan through its business partner, Eisai Co., Ltd. (“Eisai”), for the indicationsof refractory/relapsed low-grade non-Hodgkin’s lymphoma and mantle cell lymphoma. Net sales through Eisai increased as
expected.
For patients who need new therapies and to maximize the product value of TREAKISYM®, the Company continues topursue three additional indications:Regarding the indications of first-line low-grade non-Hodgkin’s lymphoma and mantle cell lymphoma, the Company
filed a supplemental New Drug Application (sNDA) in Japan to the Pharmaceuticals and Medical Devices Agency(“PMDA”) in December 2015. In the EU, the Company received a notice from Astellas Pharma GmbH (Head office:Germany) that they withdrew their application in January 2016. However, the Company has continued with procedures forapproval in Japan in consultation with the PMDA.
Regarding the indication of chronic lymphocytic leukemia, the Company filed a sNDA in December 2015, and approval
processes are undergoing towards early approval. TREAKISYM® was designated as an orphan drug (pharmaceutical for thetreatment of rare diseases) for the indication of chronic lymphocytic leukemia in June 2012. In addition, the “Evaluation
Committee on Unapproved or Off-Labeled Drugs with High Medical Needs,” a committee established by the Ministry of
Health, Labour and Welfare in Japan, requested the Company to further develop TREAKISYM®.
Thirdly, regarding the indication of refractory/relapsed intermediate/high-grade non-Hodgkin’s lymphoma, the Company
continues to discuss the path forward for approval with the PMDA.
[Anticancer agents: SyB L-1101 (intravenous formulation) and SyB C-1101 (oral formulation), generic name: rigosertib]
For the global Phase III trial of the intravenous formulation of rigosertib conducted by Onconova Therapeutics, Inc.
(Head office: Pennsylvania, U.S.; “Onconova”), the U.S. Licensor of the agent, the Company is in charge of the clinicaldevelopment in Japan and has started the domestic trial in December 2015. The global Phase III trial is conducted withclinical trial sites in more than ten countries worldwide, for higher-risk myelodysplastic syndrome (HR-MDS) patients who
do not respond to the current standard treatment with hypomethylating agents (HMAs) or who relapse after treatment under
the current standard of care (“primary HMA failure”). The Company is working on procedures for patient enrollment.
Regarding the oral formulation of rigosertib, the Company started its domestic Phase I clinical trial of the oral
formulation of rigosertib in combination with azacitidine (Note) for the target indication of HR-MDS in December 2015,
and is working on procedures for patient enrollment. The Company plans to complete this clinical trial promptly, and its
participation in the global Phase III clinical trial to be conducted by Onconova is under consideration.
(Note)

About azacitidine (Vidaza®: currently marketed by Nippon Shinyaku Co., Ltd.): This drug was confirmed toextend overall survival for the first time in the Phase III clinical trial for the indication of HR-MDS, and wasapproved in Japan in 2011. It is currently used as a first-line drug for MDS patients who have difficulties inhematopoietic stem cell transplantation.

[Patient-controlled iontophoretic transdermal system for the short-term management of acute postoperative pain: SyB P1501]
In October 2015, the Company entered into an agreement with Incline Therapeutics, Inc., a wholly-owned subsidiary of
U.S.-based The Medicines Company (Head office: New Jersey, U.S.), for an exclusive license to develop andcommercialize in Japan SyB P-1501, a patient-controlled iontophoretic transdermal system for the short-term managementof acute postoperative pain. The Company has continued preparations for a domestic Phase III clinical trial to test SyB P1501.
[New drug candidates]
The Company has continued with search and evaluation activities to identify promising new drug candidates to actively
seek for global rights of new drug candidates, aiming to secure the Company’s growth potential from a medium-to-longterm perspective for new drug candidates, and at the same time to convert into a pharmaceutical company with bothsustainability and profitability.

-1-SymBio Pharmaceuticals Limited (4582) Summary of Financial Results [Japanese GAAP] (Non-consolidated)
Results for the first quarter of fiscal year ending December 31, 2016(ii) Overseas
SyB L-0501 is also marketed in South Korea, Taiwan and Singapore. Since shipment to sales partners in each of thesecountries are planned to be made in and after the second quarter, overseas sales were not recognized for the first quarter offiscal year ending December 31, 2016.
(iii) Business results
As a result of the above, net sales totaled 193,183 thousand yen for the first quarter of fiscal year ending December 31,
2016, primarily reflecting product sales of SyB L-0501 in Japan. For the domestic sales of TREAKISYM®, the shipping
plans to Eisai are concentrated in and after the second quarter and the product sales to overseas markets are planned after thesecond quarter as well. Accordingly, overall net sales showed a year-on-year decrease of 52.7%.
Selling, general and administrative expenses totaled 574,911 thousand yen (a year-on-year increase of 27.0%), including
research and development (“R&D”) expenses of 223,560 thousand yen (a year-on-year increase of 8.4%) primarily due to
expenses associated with the clinical trial conducted in Japan for the global Phase III trial of the intravenous formulation ofrigosertib, the domestic Phase I clinical trial of the oral formulation of rigosertib in combination with azacitidine, andpreparations for the domestic Phase III clinical trial of SyB P-1501.
As a result, operating loss of 518,404 thousand yen was recognized for the first quarter of fiscal year ending December
31, 2016 (operating loss of 332,295 thousand yen for the first quarter of the previous fiscal year). In addition, mainly
because the Company recorded non-operating expenses totaling 138,890 thousand yen primarily comprising foreignexchange loss, ordinary loss totaled 655,445 thousand yen (ordinary loss of 418,875 thousand yen for the first quarter of theprevious fiscal year) and net loss totaled 652,631 thousand yen (net loss of 420,496 thousand yen for the first quarter of theprevious fiscal year).
Segment information has been omitted as the Company operates within a single segment of the pharmaceutical industry
which includes the development and commercialization of drugs, manufacturing, marketing and other related activities.
(2) Qualitative information concerning financial position
Total assets as of March 31, 2016 stood at 4,438,199 thousand yen, a decrease of 546,089 thousand yen from the previous
fiscal year end. This was primarily due to decreases of 573,609 thousand yen in cash and deposits, 300,742 thousand yen
in accounts receivable-trade, and 16,769 thousand yen in advances paid, off-setting an increase of 307,441 thousand yen inmerchandise and finished goods.
Liabilities stood at 633,248 thousand yen, an increase of 80,771 thousand yen from the previous fiscal year end, primarilyreflecting an increase of 117,907 thousand yen in accounts payable-trade.
Net assets decreased by 626,860 thousand yen from the previous fiscal year end to 3,804,950 thousand yen primarily due
to recording of net loss of 652,631 thousand yen for the first quarter.
As a result, the equity ratio decreased by 4.5 percentage points from the previous fiscal year end to 78.4%.
(3) Qualitative information concerning earnings forecasts
No revision was made to the earnings forecasts for FY 2016 as of the date of this document.

-2-

SymBio Pharmaceuticals Limited (4582) Summary of Financial Results [Japanese GAAP] (Non-consolidated)
Results for the first quarter of fiscal year ending December 31, 2016

2. Quarterly Financial Statements(1) Balance sheets(Unit: thousands of yen)

FY 2015(as of December 31, 2015)
AssetsCurrent assets
Cash and deposits
Accounts receivable-trade
Merchandise and finished goods
Prepaid expenses
Advances paid
Other

1Q FY 2016(as of March 31, 2016)

4,261,438
300,742
133,029
38,591
79,63913,337

3,687,828－
440,471
39,83662,86957,182

4,826,778

4,288,189

22,20830,747

21,69029,047

52,95650,738Intangible assets
Software
Software in progress
Lease assets

50,506900
594

45,527900432

Total intangible assets

52,001

46,859Investments and other assets
Long-term prepaid expenses
Lease and guarantee deposits

1,227
51,326

1,065
51,34652,55352,411

Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Tools, furniture and fixtures, net
Total property, plant and equipment

Total investments and other assets
Total non-current assets
Total assets

157,510150,010

4,984,289

4,438,199

319,866
183,690
14,183
14,999437,774
149,297
11,864
18,710Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-other
Income taxes payable
Forward exchange contracts
Other

18,20014,318

Total current liabilities

550,940

631,964

1,537

1,284

Non-current liabilities
Provision for retirement benefits
Total non-current liabilities
Total liabilities

-3-

1,537

1,284

552,477

633,248

SymBio Pharmaceuticals Limited (4582) Summary of Financial Results [Japanese GAAP] (Non-consolidated)
Results for the first quarter of fiscal year ending December 31, 2016
(Unit: thousands of yen)

FY 2015(as of December 31, 2015)
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Stock acquisition rights
Total net assets
Total liabilities and net assets-4-

1Q FY 2016(as of March 31, 2016)

8,330,775
8,300,775(12,499,609)(17)

8,330,775
8,300,775(13,152,240)(17)

4,131,924

3,479,292

299,887

325,658

4,431,811

3,804,950

4,984,289

4,438,199

SymBio Pharmaceuticals Limited (4582) Summary of Financial Results [Japanese GAAP] (Non-consolidated)
Results for the first quarter of fiscal year ending December 31, 2016(2) Statements of operations (cumulative)(For the first quarter of the fiscal year ending December 31, 2016)(Unit: thousands of yen)

Net sales
Cost of goods sold

1Q FY 2015
(from January 1, 2015
to March 31, 2015)
408,221287,805

1Q FY 2016
(from January 1, 2016
to March 31, 2016)
193,183
136,676

120,416

56,506Gross profit
Selling, general and administrative expenses

452,711574,911

Operating loss

(332,295)(518,404)

3,967
895
18

1,849
－
－

4,880

1,849

4
2,213
160
88,501
581

1
2,243
－
136,644－

91,460138,890(418,875)(655,445)

366

4,903

366

4,903

1,037

1,139

Non-operating income
Interest income
Interest on securities
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission fees
Stock issuance costs
Foreign exchange losses
Other
Total non-operating expenses
Ordinary loss
Extraordinary gain
Gain on reversal of stock acquisition rights
Total extraordinary gain
Extraordinary loss
Loss on retirement of non-current assets
Total extraordinary losses

1,037

1,139

(419,546)(651,681)

Income taxes-current

950

950

Total income taxes

950

950

(420,496)(652,631)

Loss before income taxes

Net loss-5-

SymBio Pharmaceuticals Limited (4582) Summary of Financial Results [Japanese GAAP] (Non-consolidated)
Results for the first quarter of fiscal year ending December 31, 2016(3) Notes on quarterly financial statements(Notes regarding going concern assumption)
None to be reported.
(Notes regarding significant changes in shareholders’ equity)
There are no significant changes in shareholders’ equity compared to the end of the previous fiscal year.
(Significant subsequent events)
1. Issuance of 37th stock acquisition rights (stock option)
At the Board of Directors’ meeting held on March 30, 2016, a resolution was passed regarding the issuance of stockacquisition rights as a stock option to six (6) Directors of the Company as follows. The stock option was allotted to relevant
Directors on the allotment date of April 14, 2016.
Number of stock option

2,365 units

Class and number of shares
underlying the stock option

Common stock

236,500 shares

Issue price/ Total issue priceof the stock option

Issue priceTotal issue price

27,200 yen
64,328,000 yen

Amount to be paid in for the stock
optionAmount to be paid in: 272 yen per share
The person who receives the allotment of stock acquisition rights shall set off
his/her claims for compensation against the Company in lieu of payment of monies
for the stock acquisition rights allotted.

Exercise price of the stock option

Exercise price per share of one (1) yen

Period during which the stock
option can be exercised

From March 31, 2019 to March 30, 2026

Terms and conditions for exerciseof the stock option(1) The person allotted shall be a director or employee of the Company or its
affiliate at the time of exercise. However, the terms and conditions for the
exercise of stock option described herein shall not apply when: (a) the person
resigns from the Company or its affiliate due to the expiry of her/his term, (b)the person retires from the Company or its affiliate due to compulsory
retirement age or (c) the Board of Directors resolves that he/she has resigned or
retired on an amicable basis.
(2) For other terms and conditions, the Company and Directors shall comply withthe “Stock Option Allotment Agreement” concluded between the parties.

Paid-in capital amount increased
due to the issuance of shares upon
exercise of the stock option

Increase in the amount of paid-in capital due to the issuance of shares upon theexercise of stock option shall be one-half of the maximum amount of paid-in capitalincrease and others, which is calculated in accordance with Article 17 of the
Corporation Accounting Rules, and any fraction less than one (1) yen arising
therefrom shall be rounded up to the nearest one (1) yen.

Matters concerning transfer of thestock option

Requires approval at the Board of Directors’ meeting.

-6-

SymBio Pharmaceuticals Limited (4582) Summary of Financial Results [Japanese GAAP] (Non-consolidated)
Results for the first quarter of fiscal year ending December 31, 2016

2. Issuance of 38th stock acquisition rights (stock option)
At the Board of Directors’ meeting held on March 30, 2016, a resolution was passed regarding the issuance of stockacquisition rights as a stock option to 73 Company employees as follows. The stock option was allotted to relevant employeeson the allotment date of April 14, 2016.
Number of stock option

3,950 units

Class and number of shares
underlying the stock option

Common stock

Issue price/ Total issue priceof the stock option

Issue priceTotal issue priceAmount to be paid in for the stock

Amount to be paid in: 272 yen per share
The person who receives the allotment of stock acquisition rights shall set off

395,000 shares
27,200 yen
107,440,000 yen

optionhis/her claims for compensation against the Company in lieu of payment of monies
for the stock acquisition rights allotted.

Exercise price of the stock option

Exercise price per share of one (1) yen

Period during which the stock
option can be exercised

From March 31, 2019 to March 30, 2026

Terms and conditions for exerciseof the stock option(1) The person allotted shall be a director or employee of the Company or its
affiliate at the time of exercise. However, the terms and conditions for the
exercise of stock option described herein shall not apply when: (a) the person
resigns from the Company or its affiliate due to the expiry of her/his term, (b)the person retires from the Company or its affiliate due to compulsory
retirement age or (c) the Board of Directors resolves that he/she has resigned or
retired on an amicable basis.
(2) For other terms and conditions, the Company and Company employees shallcomply with the “Stock Option Allotment Agreement” concluded between theparties.

Paid-in capital amount increased
due to the issuance of shares upon
exercise of the stock option
Matters concerning transfer of thestock option

Increase in the amount of paid-in capital due to the issuance of shares upon theexercise of stock option shall be one-half of the maximum amount of paid-in capitalincrease and others, which is calculated in accordance with Article 17 of the
Corporation Accounting Rules, and any fraction less than one (1) yen arising
therefrom shall be rounded up to the nearest one (1) yen.
Requires approval at the Board of Directors’ meeting.

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SymBio Pharmaceuticals Limited (4582) Summary of Financial Results [Japanese GAAP] (Non-consolidated)
Results for the first quarter of fiscal year ending December 31, 2016

3. Issuance of the 3rd unsecured convertible bonds with stock acquisition rights and the 39th stock acquisition rights
The Company made a resolution at the Board of Directors’ meeting held on April 6, 2016 to issue the 3rd unsecured
convertible bonds with stock acquisition rights (hereinafter, the constituents are the “Convertible Bond Type Stock Acquisition
Rights” and the “Bonds”) and the 39th stock acquisition rights, for which payments were completed on April 22, 2016. The
details are as follows.
(1) 3rd unsecured convertible bonds with stock acquisition rights
Number of stock acquisition rights

40 units
Issue price per Bond shall be 75 million yen (100 yen per 100 yen par value)

Issue price

The issue price of the Convertible Bond Type Stock Acquisition Rights shall be
gratis.

Total issue price3,000,000,000 yen

Number of residual securities fromthe issuance

14,218,009 shares

Conversion price

211 yen

Method for subscription or
allotment (allottee)

The Bonds shall be allotted to the following entity by third-party allotment.
Whiz Healthcare Japan 2.0 Investment Limited PartnershipManaging Partner : Whiz Partners

Interest rate

The Bonds do not bear interest.

Due date of redemption

April 22, 2019

Collaterals

No secured mortgage or guarantee is provided for the Bonds with Stock Acquisition
Rights. There are no assets especially reserved for the Bonds with Stock Acquisition
Rights.

Use of the funds(1) Expenses related to acquisition of companies who own new drug candidates anddevelopment of such new drug candidates subsequent to said acquisition(2) Expenses related to acquisition of rights for new drug candidates anddevelopment of such new drug candidates subsequent to said acquisition ofrights(3) Expenses related to development of SyB P-1501 and SyB C-1101 for higher-risk
myelodysplastic syndrome (HR-MDS) (in combination with azacitidine)-8-

SymBio Pharmaceuticals Limited (4582) Summary of Financial Results [Japanese GAAP] (Non-consolidated)
Results for the first quarter of fiscal year ending December 31, 2016

OthersDirection to exercise by the Company
The allottee may exercise the Convertible Bond Type Stock Acquisition Rights atwill, but
(1) The Company may, on or after the due date of payment, at any time during theperiod until two business days before the final business day of the exercise periodof the Convertible Bond Type Stock Acquisition Rights, direct the allottee toexercise the Convertible Bond Type Stock Acquisition Rights by providing written
notice, in the event that (i) the Company concludes a binding business partnershipagreement or equivalent document (excluding non-disclosure agreements or similar
items) (hereinafter the “Business Partnership Agreements, etc.”) regarding its
business (including research and development, licensing, sales, procurement, andproduction, and not limited to the above) with a third-party that has beenpreapproved by Whiz Partners, and (ii) the Company requires 1,000 million yen or
more in funding to fulfill its duties under the Business Partnership Agreements, etc.
on or before the exercise request date. The allottee shall make the exercise within
two business days of the day of the relevant direction. However, the number ofConvertible Bond Type Stock Acquisition Rights that the Company may direct
exercise of based on this item (1) shall have an upper limit of a cumulative 13 units(total principal amount of 975 million yen; 4,620,853 shares underlying the stockacquisition rights). (The number of Convertible Bond Type Stock Acquisition
Rights that the Company may direct exercise of based on item (2) below shall not
be included in the upper limit of the number of Convertible Bond Type Stock
Acquisition Rights that the Company may direct exercise of based on this item (1).)
Furthermore, the Company may not direct the allottee to exercise within fivebusiness days of the day that an exercise request is made resulting from direction to
exercise the Convertible Bond Type Stock Acquisition Rights based on item (2)below, within five business days of an exercise request from the allottee to exercise
the Convertible Bond Type Stock Acquisition Rights or the stock acquisition rights,
or during a period in which the allottee or Whiz Partners is in possession ofundisclosed insider information of the Company.
(2) On or after April 22, 2018, in the following cases, the Company may direct theallottee to exercise the Convertible Bond Type Stock Acquisition Rights at any time
during the period until two business days before the final business day of theexercise period of the Convertible Bond Type Stock Acquisition Rights. The
allottee shall make the exercise within two business days of the day (hereinafter the“Exercise Direction Date”) of the relevant direction.
1) If the closing price of the Company’s common shares on Tokyo Stock
Exchange, Inc. (hereinafter the “Tokyo Stock Exchange”) exceeds 150% of theconversion price for ten consecutive trading days including the Exercise
Direction Date (if there is a day within the relevant period without a closing
price, ten trading days excluding the relevant day; hereinafter the same applies),
the Company may, with an upper limit of a cumulative 10 units of theConvertible Bond Type Stock Acquisition Rights (total principal amount of 750
million yen; 3,554,502 shares underlying the stock acquisition rights), direct theallottee to exercise the Convertible Bond Type Stock Acquisition Rights(excluding the Convertible Bond Type Stock Acquisition Rights provided initem (1) above).
2) If the closing price of the Company’s common shares on the Tokyo Stock
Exchange exceeds 200% of the conversion price for ten consecutive trading
days including the Exercise Direction Date, the Company may, with an upper
limit of a cumulative 20 units of the Convertible Bond Type Stock Acquisition-9-

SymBio Pharmaceuticals Limited (4582) Summary of Financial Results [Japanese GAAP] (Non-consolidated)
Results for the first quarter of fiscal year ending December 31, 2016

Rights (total principal amount of 1,500 million yen; 7,109,004 shares
underlying the stock acquisition rights), including the exercise of theConvertible Bond Type Stock Acquisition Rights in the previous item, direct
the allottee to exercise the Convertible Bond Type Stock Acquisition Rights(excluding the Convertible Bond Type Stock Acquisition Rights provided initem (1) above).
However, in either case, the Convertible Bond Type Stock Acquisition Rights that
may be directed to be exercised on the relevant Exercise Direction Date shall havean upper limit of 20% of the average daily trading volume for the aforementioned
period.
Furthermore, the Company may not direct the allottee to exercise the Convertible
Bond Type Stock Acquisition Rights within five business days of the day that an
exercise request is made resulting from direction to exercise the Convertible Bond
Type Stock Acquisition Rights based on item (1) above, within five business daysof an exercise request from the allottee to exercise the Convertible Bond Type
Stock Acquisition Rights or the stock acquisition rights, or during a period in which
the allottee or Whiz Partners is in possession of undisclosed insider information of
the Company.
Redemption requests from the allottee
The allottee may, only in cases 1) to 5) below, on or after the due date of payment
and during the period until April 22, 2018 (inclusive), through written notification
to the Company at least 15 business days before the intended redemption date,request advanced redemption of the Bonds, wholly or partly, held by the allottee inan amount equivalent to the face value multiplied by a ratio of 110.0%.
Furthermore, this item shall not apply on or after April 23, 2018.
1) Organizational restructuring of the Company
2) Transfer of all, or a significant portion, of the Company’s business
3) Request for dissolution or bankruptcy, initiation of corporate reorganization
proceedings, initiation of civil rehabilitation proceedings, initiation of special
liquidation, or initiation of other insolvency proceedings of the Company
4) Delisting or determination to delist the Company’s common shares
5) If a significant infringement of the Investment Agreement is made by theCompany or if a notification to request correction of a minor infringement ismade by Whiz Partners and the infringing state is not improved within two
weeks
The preceding respective items for the subscription shall be on the condition thatthe notification becomes effective in accordance with the Financial Instruments andExchange Act.

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SymBio Pharmaceuticals Limited (4582) Summary of Financial Results [Japanese GAAP] (Non-consolidated)
Results for the first quarter of fiscal year ending December 31, 2016(2) 39th stock acquisition rights
Number of stock acquisition rights

104 units (43,000 shares per stock acquisition right)

Class and number of shares
underlying the stock acquisitionrightsCommon stock

4,472,000 shares

Issue price/ Total issue priceof the stock acquisition rights

Issue priceTotal issue price

94,000 yen
9,776,000 yen

Exercise price of the stockacquisition rights

Exercise price per share of 211 yen

Method for subscription or
allotment (allottee)

The Bonds shall be allotted to the following entity by third-party allotment.
Whiz Healthcare Japan 2.0 Investment Limited PartnershipManaging Partner : Whiz Partners

Period during which the stock
option can be exercised

From April 23, 2016 to April 22, 2021

Terms and conditions for exerciseof the stock acquisition rights

Partial exercise of each Stock Acquisition Right shall not be permitted.

Paid-in capital amount increased
due to the issuance of shares upon
exercise of the stock acquisitionrightsIncrease in the amount of paid-in capital due to the issuance of shares upon theexercise of stock option shall be one-half of the maximum amount of paid-in capitalincrease and others, which is calculated in accordance with Article 17 of the
Corporation Accounting Rules, and any fraction less than one (1) yen arising
therefrom shall be rounded up to the nearest one (1) yen.

Matters concerning transfer of thestock option

Requires approval at the Board of Directors’ meeting.

Use of the funds(1) Expenses related to acquisition of companies who own new drug candidates anddevelopment of such new drug candidates subsequent to said acquisition(2) Expenses related to acquisition of rights for new drug candidates anddevelopment of such new drug candidates subsequent to said acquisition ofrights(3) Expenses related to development of SyB P-1501 and SyB C-1101 for higherrisk myelodysplastic syndrome (HR-MDS) (in combination with azacitidine)

4. Issuance of new shares on the exercise of stock acquisition rights
During the period from April 1, 2016 to May 10, 2016, the Company issued new shares based on the exercise of rights
regarding a portion of the 34th stock acquisition rights. The summary of such exercise of the stock acquisition rights is asfollows.
Number and type of shares issued:
Common stock 2,054,600 shares
Total amount issued:
Amount transferred to capital from the total amount issued:- 11 -

685,044 thousand yen
342,522 thousand yen