December 16, 2019
SanBio Co., Ltd.

Message from Representative Director and President,
Keita Mori, regarding disclosures made on December 13, 2019

SanBio Co., Ltd. (the “Company”) has received a number of inquiries regarding theConsolidated Financial Results for the Nine Months Ended October 31, 2019, released on
December 13, 2019. I offer my sincere apologies for any concerns raised among thestakeholders who have provided the Company with generous support over the years, andbelow offer answers to the questions posed.
1) Regarding change in timing of approval filing for regenerative cell medicine SB623
for chronic motor deficit from traumatic brain injury in Japan
Previously, the Company aimed to file for manufacturing and marketing approval of SB623
for indication of chronic motor deficit from traumatic brain injury (TBI) during FY01/20.
However, the Company now will aim to file for approval during FY01/21. We regret to convey
this message concerning a timing change, having previously reiterated that preparations were
under way with a view to filing during FY01/20.
The revised timing stems from changes to the schedule for preparing commercial production,in order to ensure stable supply once the product is on the market. The Company decided it
would be best to allow plenty of time for these preparations, having determined that furtherwork was needed to build a stable supply system capable of reliably delivering this muchawaited new drug to all patients.
2) Regarding termination of joint development and license agreement with SumitomoDainippon Pharma for regenerative cell medicine SB623 for chronic motor deficit
from ischemic stroke in North AmericaOn December 13, 2019, SanBio, Inc., SanBio’s subsidiary in the United States, andSumitomo Dainippon Pharma Co., Ltd. had agreed to discontinue joint development ofregenerative cell medicine SB623 for chronic motor deficit from ischemic stroke in North
America, and to terminate the license agreement concluded between the two companies.
The Company has been asked whether or not termination of the agreement signifies an end
to development of SB623. SanBio intends to continue development with an eye toward afuture global rollout, based on comprehensive consideration of a number of factors including
favorable clinical trial data from Phase 1/2a of the chronic motor deficit from ischemic stroke
program and Phase 2 of the chronic motor deficit from TBI program, and the fact that nosafety issues were observed in Phase 2b of the former program. With the termination of thisagreement, all rights to SB623 as a treatment for chronic motor deficit from ischemic strokein North America will return to the SanBio Group (SanBio and SanBio, Inc.). From among themany options available, including an alliance with a new partner, the Company will look toidentify the approach to deliver this new drug to patients in the timeliest possible fashion. Anew development schedule will be released once planning reaches a stage at which theCompany can make a public announcement.

Finally, I again offer my sincere apologies for any concerns raised among the stakeholders
who have provided the Company with generous support over the years.
The Company will first seek to launch SB623 as a treatment for chronic motor deficit fromtraumatic brain injury in Japan and North America, and build a foundation for the postmarketing production, logistics, commercial distribution, and appropriate use. In addition, wewill pursue the development of SB623 for additional indications, such as ischemic stroke,
cerebral hemorrhage, and ophthalmic diseases, and deliver the product to as many patientsas possible in the shortest possible time.
It was my decision to allow plenty of time for laying the foundations needed for SanBio to fulfil
its corporate social responsibility and become a company that delivers value to patients.
Hereafter, the Group will make a concerted effort in this respect, and we ask for further
support from stakeholders as we pursue this challenge.
SanBio Co., Ltd.
Representative Director and President
Keita Mori