RLAST UPDATE【2016/6/13】

SymBio Pharmaceuticals | 4582 |Research Report by Shared Research Inc.
Shared Research Inc. has produced this report by request from the company discussed in the report. The
aim is to provide an “owner’s manual” to investors. We at Shared Research Inc. make every effort to provide
an accurate, objective, and neutral analysis. In order to highlight any biases, we clearly attribute our data
and findings. We will always present opinions from company management as such. Our views are ours
where stated. We do not try to convince or influence, only inform. We appreciate your suggestions andfeedback. Write to us at sr_inquiries@sharedresearch.jp or find us on Bloomberg.

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SymBio Pharmaceuticals | 4582 |Shared Research Report

LAST UPDATE【2016/6/13】

INDEX
Executive summary --------------------------------------------------------------------------------------------------- 3
Key financial data ----------------------------------------------------------------------------------------------------- 4
Recent updates --------------------------------------------------------------------------------------------------------- 5
Highlights ----------------------------------------------------------------------------------------------------------------------- 5
Trends and outlook ---------------------------------------------------------------------------------------------------------- 7
Business ----------------------------------------------------------------------------------------------------------------- 14
Business description ------------------------------------------------------------------------------------------------------- 14
Business strategy ------------------------------------------------------------------------------------------------------------ 17
Pipeline ------------------------------------------------------------------------------------------------------------------------ 21
Research and Development --------------------------------------------------------------------------------------------- 30
Earnings structure ---------------------------------------------------------------------------------------------------------- 32
Strengths and weaknesses ----------------------------------------------------------------------------------------------- 34
Market and value chain --------------------------------------------------------------------------------------------- 35
Market strategy -------------------------------------------------------------------------------------------------------------- 35
Historical performance --------------------------------------------------------------------------------------------- 38
Income statement ---------------------------------------------------------------------------------------------------------- 44
Balance sheet ---------------------------------------------------------------------------------------------------------------- 46
Cash flow statement ------------------------------------------------------------------------------------------------------- 48
Other information---------------------------------------------------------------------------------------------------- 50
History -------------------------------------------------------------------------------------------------------------------------- 50
News and topics ------------------------------------------------------------------------------------------------------------ 51
Major shareholders --------------------------------------------------------------------------------------------------------- 57
Top management----------------------------------------------------------------------------------------------------------- 57
Employees -------------------------------------------------------------------------------------------------------------------- 57
Other --------------------------------------------------------------------------------------------------------------------------- 57
Company profile ------------------------------------------------------------------------------------------------------------ 62

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SymBio Pharmaceuticals | 4582 |Shared Research Report

SymBio Pharmaceuticals ＞ Executive summary

LAST UPDATE【2016/6/13】

Executive summary
SymBio in-licenses drugs for development and sale
SymBio is a specialty pharmaceutical company that buys the right to develop and commercialize drug candidates in orderto address the underserved medical needs of patients in Japan and the rest of Asia. With its main focus on the areas of
oncology, hematology, and pain management, the company typically seeks in-licensing opportunities for niche markets
from pharmaceutical and biotech companies based in the US or EU.
Notably, the company does not conduct basic research and outsources preclinical/clinical development, employing afabless in-licensing approach. Using its proprietary in-house “search engine,” the company identifies, assesses andin-licenses only quality drug candidates having proof-of-concept established in human subjects. The company firstscreens third-party drug candidates being tested in clinical trials, then presents the in-licensing opportunities to its
Scientific Advisory Board for further assessment of the science behind each molecule, preclinical/clinical data, target
market, and the feasibility of receiving marketing approval from Japanese regulatory authorities.
According to the company, the typical development timeline of an oncology drug in Japan from preclinical studies tomarketing approval is about 10 to 17 years. However, the company secured marketing approval for its first oncology drug
under development in Japan, Treakisym, in only four years after the first clinical trial was initiated, with product launch
only two years after US marketing approval and around the same time that approval was granted in Europe. Within three
years of its launch, Treakisym captured more than 50% of the non-Hodgkin’s lymphoma (NHL) and mantle cell lymphoma(MCL) market in Japan.
As of February 2016, the company’s pipeline consisted of four drugs in the development pipeline: Treakisym (anticancer
agent for hematologic malignancies), rigosertib (anticancer agent for myelodysplastic syndromes) IV and oral
formulations, and SyB P-1501 (patient-controlled analgesia for pain management).

Earnings
In its mid-term plan, SymBio projects sales of JPY2.3bn–JPY3.0bn and a net loss of JPY3.6bn–JPY3.8bn in FY12/18. The
company will seek regulatory approval for first-line treatment for low-grade NHL and MCL in FY12/16, and aims forapproval of Treakisym for chronic lymphocytic leukemia (CLL). This will result in milestone payments and recording ofsales. The company expects R&D expenses to fall for Treakisym, but to rise for rigosertib and clinical trials for SyB P-1501,
resulting in higher overall SG&A expenses.

Strengths and weaknesses
Shared Research thinks SymBio’s strengths include its unique candidate selection process, strong product development
team, and business strategy focusing on niche markets. Weaknesses include the lack of its own sales force and fundingneeds (see Strengths and weaknesses).

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SymBio Pharmaceuticals | 4582 |Shared Research Report

SymBio Pharmaceuticals ＞ Key financial data

LAST UPDATE【2016/6/13】

Key financial data
Income statement

FY12/09

FY12/10

FY12/11

FY12/12FY12/13

FY12/14

FY12/15

Par.

Par.

Par.

Par.

Par.

Par.

Par.

Est.

Sales

1,191

1,450

1,883

1,955

1,532

1,955

1,933

2,339

YoY

-26.9%

21.7%

29.8%

3.9%

-21.6%

27.6%

-1.1%

21.0%

Gross profit

1,191

1,212

658

593

318

527

583
10.7%

(JPYmn)FY12/16

YoY-26.9%

1.7%-45.7%-9.9%-46.4%

65.6%

GPM

100.0%

83.6%

35.0%

30.3%

20.8%

26.9%

30.2%

-208

-613

-2,067-1,700-1,681-1,303-2,552-2,778

YoY

-

-

-

-

-

-

-

-

OPM

-

-

-

-

-

-

-

-

-214

-638

-2,095-1,729-1,601-1,110-2,630-2,811

YoY

-

-

-

-

-

-

-

-

RPM

-

-

-

-

-

-

-

-

-218

-642

-2,105-1,733-1,605-1,116-2,632-2,815

YoY

-

-

-

-

-

-

-

-

NPM

-

-

-

-

-

-

-

-

Operating profit

Recurring profit

Net income

Per share data
Shares issued ('000)

101

112

19,131

19,131

30,63430,63432,391

EPS

-32.5

-59.3

-143.6

-90.6

-69.3

-36.3

-81.3

-

-

-

-

-

-

-

EPS (fully diluted)
Dividend per share
Book value per share

-

-

-

-

-

-

-

402.8

365.4

345.3

254.7

239.5

208.8

127.6

-86.9

Balance sheet (JPYmn)
Cash and equivalents

4,121

4,016

6,511

4,840

7,264

6,591

4,261

Total current assets

4,218

4,213

7,178

5,421

7,634

7,290

4,827

Tangible fixed assets, net

13

22

17

14

9

49

53

Other fixed assets

27

27

48

57

37

49

53

Intangible assets

2

1

13

11

8

66

52

4,261

4,263

7,256

5,502

7,687

7,454

4,984

Accounts payable

-

1

309

330

-

306

320

Short-term debt

-

-

-

-

-

-

-

Total current liabilities

205

178

646

599

251

488

551

Total assets

Long-term debt

-

-

-

-

-

-

-

Total fixed liabilities

2

2

5

4

3

2

2

Total liabilities

207

180

651

602

254

490

552

4,054

4,083

6,606

4,900

7,433

6,964

4,432

-

-

-

-

-

-

-

Cash flows from operating activities

-211

-754

-2,074-1,659-1,677-1,266-2,272

Cash flows from investing activities

-4

-116

-117

-411

-1,332314

1,489

Cash flows from financing activities

2,963

663

4,611

-1

4,057

544

-3

ROA

-7.6%

-15.1%-36.5%-27.2%-24.3%-14.7%-42.3%

ROE-8.1%-15.8%-39.4%-30.2%-26.3%-15.8%-48.3%

Equity ratio

95.1%

95.8%

91.0%

89.1%

96.7%

93.4%

88.9%

Net assets
Interest-bearing debt
Statement of cash flows (JPYmn)

Financial ratios

Source: Shared Research based on company data.
Figures may differ from company materials due to differences in rounding methods.

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SymBio Pharmaceuticals | 4582 |Shared Research Report

SymBio Pharmaceuticals ＞ Recent updates

LAST UPDATE【2016/6/13】

Recent updates
Highlights
On June 13, 2016, SymBio announced the start of phase III clinical trials for the patient-controlled analgesia, SyB P-1501.
The company started phase III clinical trials for SyB P-150—a patient controlled analgesia for the short-term managementof acute postoperative pain during hospitalization.
The company obtained exclusive development and commercialization rights for the drug in Japan from the Medicines
Company in October 2015. The product, launched in the US, was approved by the US Food and Drug Administration(FDA) in April 2015, and also approved by the European Medicines Agency (EMA) in November 2015.
SymBio will proceed with phase III clinical trials, and hopes to obtain manufacturing and marketing approval for the drugin Japan in 2019.

On June 6, 2016, Shared Research updated this report based on interviews with the company.

On May 11, 2016, the company announced the establishment of a US subsidiary.

Overview of subsidiary
Name: SymBio Pharma USA, Inc.
Date established: June 11, 2016
Shareholder ratio: 100% subsidiary of SymBio Pharmaceuticals
Business activities: R&D, manufacturing and sales of pharmaceutical products

On May 10, 2016, the company announced earnings results for Q1 FY12/16; see the results section for details.

On April 6, 2016, the company announced the issue of a third series unsecured convertible bonds with subscription
rights to new shares, and series 39 subscription rights to new shares by third-party allotment.
The company expects to receive total funds of about JPY3.9bn, net of expenses. The company plans to use the funds for
expenses related to the development of new drug candidates between April 2016 and December 2018. As of April 6,
2016, SymBio was negotiating license agreements for several new drug candidates with client companies. The amount offunding required is based on costs to acquire rights to new drug candidates or to acquire companies with new drugcandidates, as well as estimated developments costs, primarily those required to conduct clinical trials upon acquiring
companies with new drug candidates or acquiring rights to new drug candidates.

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SymBio Pharmaceuticals | 4582 |Shared Research Report

SymBio Pharmaceuticals ＞ Recent updates

LAST UPDATE【2016/6/13】

Overview of the offering
Third series of unsecured convertible bonds with subscription rights to new shares▶ Payment date:▶ Number of stock subscription rights:▶ Issue price of bonds:▶ Issue price of stock subscription rights:▶ Number of potential shares:▶ Total funding amount:▶ Conversion price:▶ Subscription and allocation method:

April 22, 2016
40 units
JPY75mn (JPY100 per JPY100 par value)
Gratis
14,218,000
JPY3.0bn
JPY211
Issued to Whiz Healthcare Japan 2.0 Investment Limited Partnership via

third-party allotment.

Series 39 subscription rights to new shares▶ Allotment date:▶ Number of stock subscription rights:▶ Issue price:▶ Number of potential shares:▶ Total funding amount:

April 22, 2016104 units
JPY10mn (JPY94,000 per unit)
4,472,000
JPY953mn(JPY10mn from the issue of subscription rights to
new shares; JPY944mn from the exercise of subscription rights)▶ Exercise price:▶ Subscription and allocation method:

JPY211
Issued to Whiz Healthcare Japan 2.0 Investment Limited Partnership via

third-party allotment.

On March 17, 2016, Shared Research updated the report following interviews with the company.

For corporate releases and developments more than three months old, see the News and topics section.

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SymBio Pharmaceuticals | 4582 |Shared Research Report

SymBio Pharmaceuticals ＞ Recent updates

LAST UPDATE【2016/6/13】

Trends and outlook
Quarterly trends and results
Quarterly Performance (cumulative)

FY12/16

FY12/15(JPYmn)

Q1

Q2

Q3

Q4

Q1

Sales

408

976

1,332

1,933

193

135.0%

0.1%

-1.2%

-1.1%

-52.7%

YoY
Gross profit

Q2

FY12/16
Q3

Q4% of FYFY Est.

8.3%

2,339
21.0%

120

283

395

583

57

YoY

272.1%

14.3%

11.8%

10.7%

-53.1%

GPM

29.5%

28.9%

29.7%

30.2%

29.2%

453

931

1,383

3,135

575

1.1%

4.2%

4.7%

71.3%

27.0%

SG&A / sales

110.9%

95.3%

103.8%

162.1%

297.6%

Operating profit

-332

-648

-988

-2,552-518-2,778

YoY

-

-

-

-

-

-

OPM

-

-

-

-

-

-

-419

-674

-1,056-2,630-655-2,811

YoY

-

-

-

-

-

-

RPM

-

-

-

-

-

-

-420

-676

-1,059-2,632-653-2,815

YoY

-

-

-

-

-

-

NPM

-

-

-

-

-

SG&A expenses
YoY

Recurring profit

Net income

Quarterly Performance

FY12/15(JPYmn)

Q1

Q2

Q3

Q4

Q1

Sales

408

568

356

601

193

YoY

135.0%-29.2%

-4.5%

-1.0%

-52.7%

120

162

113

188

57

YoY

272.1%-24.5%

5.8%

8.5%-53.1%

GPM

29.5%

28.6%

31.6%

31.3%

29.2%

453

478

452

1,752

575

1.1%

7.3%

6.0%

243.7%

27.0%

SG&A / sales

110.9%

84.1%

127.0%

291.6%

297.6%

Operating profit

-332

-316

-340

-1,564

-518

YoY

-

-

-

-

-

OPM

-

-

-

-

-

-419

-255

-382

-1,574

-655

YoY

-

-

-

-

-

RPM

-

-

-

-

-

-420

-256

-383

-1,573

-653

YoY

-

-

-

-

-

NPM

-

-

-

-

-

Gross profit

SG&A expenses
YoY

Recurring profit

Net income-

FY12/16Q2

Q3

Q4Source: Shared Research based on company data.
Figures may differ from company materials due to differences in rounding methods.

Q1 FY12/16 results
Q1 FY12/16 sales totaled JPY193mn (-52.7% YoY) due to domestic and overseas sales of SyB L-0501 (Treakisym).
As shipments to Eisai Co., Ltd. (TSE1: 4523) are expected to be focused in Q2 and subsequent quarters and sales ofoverseas products are planned from Q2, Treakisym domestic sales declined—though sales are in line with the FY12/16
full-year forecast . The company is expecting Treakisym sales to rise year-on-year over the course of the full year.
SG&A expenses rose 27.0% YoY to JPY575mn. R&D expenses rose to JPY224mn (+8.4%) on expenses for clinical trials inJapan that are part of global Phase III trials for the intravenous version of rigosertib; expenses for domestic phase I trials forthe oral version of rigosertib for use in combination with azacitidine; and expenses related to preparations for domestic
Phase III trials for SyB P-1501.
As a result, operating loss totaled JPY518mn (versus a loss of JPY332mn the preceding year). The company also reported arecurring loss of JPY655mn (JPY419mn loss) due to non-operating expenses of JPY139mn (mainly on forex losses ofwww.sharedresearch.jp

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SymBio Pharmaceuticals | 4582 |SymBio Pharmaceuticals ＞ Recent updates

LAST UPDATE【2016/6/13】

JP134mn). Net loss was JPY653mn (loss of JPY420mn in the previous year).

Domestic
Treakisym (SyB L-0501; anticancer agent; generic name: bendamustine hydrochloride)The company markets the anticancer agent Treakisym in Japan through its business partner, Eisai Co., Ltd. (TSE1: 4523)
for the indications of refractory or relapsed low-grade non-Hodgkin’s lymphoma (NHL) and mantle cell lymphoma (MCL).
In Q1, product sales to Eisai were largely in line with plan.
In Japan, the company submitted a new drug application (NDA) to Japan’s Pharmaceuticals and Medical Devices Agency(PMDA) in December 2015 for a first-line treatment of low-grade NHL and MCL. Meanwhile, in Europe, though thecompany received notification on January 2016 from Astellas Pharma that its application had been withdrawn, after
consulting with the PMDA, it plans to continue with the approval process in Japan, and hopes to win approval before theend of 2016.
Regarding chronic lymphocytic leukemia (CLL), the company filed an NDA in December 2015 and is looking for quick
approval as the process proceeds. The company aims at winning the approval before the end of 2016. Treakisym wasdesignated as an orphan drug (drug for the treatment of rare diseases) for CLL in June 2012, and the Evaluation
Committee on Unapproved or Off-Labeled Drugs with High Medical Need has also submitted a development request to
the company.
SymBio is still considering applying for approval for use of the drug for relapsed or refractory aggressive NHL.

Rigosertib (SyB L-1101 [IV]/SyB C-1101 [oral]; anticancer agent)
Onconova Therapeutics, Inc., the licensor, is currently conducting a global Phase III trial and SymBio Pharmaceuticals
started the Japan trial in December 2015. The global Phase III trial addresses higher risk myelodysplastic syndrome (MDS)
patients who do not respond to treatment or relapsed after treatment with hypomethylating agents (HMAs), the current
standard of care (“Primary HMA Failure”) and is under way at clinical trial sites in more than ten countries worldwide. The
company is currently preparing to begin patient enrollment.
SymBio started domestic Phase I clinical trials for the oral (IV) form of rigosertib (used in combination with azacitidine) for
higher-risk myelodysplastic syndrome (MDS) in December 2015, and was preparing to begin patient enrollment. The
company is looking to quickly complete joint trials, and is considering participating in the global clinical trial to be
conducted by Onconova.

SyB P-1501, a post-operative patient-controlled analgesia
In October 2015 SymBio reached an in-licensing agreement with The Medicines Company (through its wholly owned
subsidiary Incline Therapeutics) for the development and commercialization of SyB P-1501, a post-operative
patient-controlled analgesia known as IONSYS in the US. SymBio acquired exclusive development and marketing rights forJapan. Preparations are underway to start domestic phase III clinical trials in 2016.

New drug candidates
From a long-term perspective, SymBio will continue to search for and evaluate promising drug candidates, and acquire

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SymBio Pharmaceuticals | 4582 |SymBio Pharmaceuticals ＞ Recent updates

LAST UPDATE【2016/6/13】

global rights for these drugs to ensure its long-term growth and become a sustainable and profitable pharmaceuticalcompany.
In April 2016, the company issued of a third series of unsecured convertible bonds with subscription rights to new shares,
and series 39 subscription rights to new shares by third-party allotment, and raised JPY3.9bn (net expenses); JPY3.0bn
from the third series of unsecured bonds with subscription rights to new shares, JPY10mn from the issue of subscription
rights to new shares, and JPY944mn from the exercise of subscription rights. As of April 2016, the company has been intalks with potential partner companies to develop multiple new drug candidates, and plans to use the raised funds toobtain rights to new drug candidates or finance the acquisition of companies that own the rights to new drug candidates,
and cover development expenses (particularly for clinical trials after acquisitions).

Overseas
The company marketed Treakisym in Korea, Taiwan, and Singapore, but did not book sales for Q1 because shipments tooverseas clients are planned from Q2 and after.

For details on previous quarterly and annual results, see the Historical performance section.

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SymBio Pharmaceuticals | 4582 |Shared Research Report

SymBio Pharmaceuticals ＞ Recent updates

LAST UPDATE【2016/6/13】

Full-year company forecasts
FY12/16 Forecasts(JPYmn)Sales
CoGS
Gross Profit
GPM
SG&A
SG&A / Sales
R&D expenses
Operating Profit
OPM
Recurring Profit
RPM
Net Income
Net Margin

FY12/15FY Act.
1,933
1,350
583
30.2%
3,135
162.1%
2,035-2,552-2,630-2,632-

FY12/16
FY Est.
2,339

3,605
154.1%
2,180-2,778-2,811-2,815-

Source: Shared Research based on company data.
Figures may differ from company materials due to differences in rounding methods.

Earnings outlook
Sales are expected to reach JPY2.3bn (+21.0% YoY), attributable to higher sales from Treakisym. The company also
forecasts revenue from milestone payments as it attains expected regulatory approval for Treakisym as a treatment for
non-Hodgkin’s lymphoma (NHL) and mantle cell lymphoma (MCL).
R&D expense is expected to total JPY2.2bn (up from JPY2.0bn in FY12/15), while total SG&A expense–including R&D–isprojected to reach JPY3.6bn (up from JPY3.1bn).
R&D spending is slated to increase with the targeting of additional indications for Treakisym and development toward
NDA applications for 1) intravenous and oral rigosertib and 2) SyB P-1501, which was in-licensed in FY12/15. The
company will also work jointly with Teikyo Heisei University on the development of an anti-cancer drug using the TTR1
nano-agonist molecule.
As a result, SymBio forecasts an operating loss of JPY2.8bn (operating loss of JPY2.6bn in FY12/15), a recurring loss of
JPY2.8bn (recurring loss of JPY2.6bn in FY12/15), and a net loss of JPY2.8bn (net loss of JPY2.6bn in FY12/15).

Pipeline
Treakisym
Supplemental NDAs were filed in FY12/15 for indications as a first-line treatment for refractory/relapsed low-grade NHL,MCL and CLL. Work is under way to respond to matters raised by the PMDA and speed up the approvals. SymBio aims toacquire regulatory approval for these indications during FY12/16.

Intravenous and oral rigosertib
The company is moving ahead with the Japan edition of the global Phase III trial for the intravenous version of rigosertib,and hopes to quickly begin initial patient enrollment. Similarly, SymBio aims to quickly start initial patient enrollment forthe domestic Phase I trial of the oral version of rigosertib for use in combination with azacitidine. Regarding developmentwith low-risk MDS as the target efficacy, SymBio will consider it while watching development progress at Onconova
Therapeutics.
SyB P-1501, a post-operative patient-controlled analgesia
SymBio reached an in-licensing agreement for SyB P-1501 in FY12/15. Preparations are under way to start a domestic
phase III clinical trial in Q3 FY12/16.

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SymBio Pharmaceuticals | 4582 |Shared Research Report

SymBio Pharmaceuticals ＞ Recent updates

LAST UPDATE【2016/6/13】

Long-term outlook
When it released its FY12/15 results, SymBio also announced a mid-term plan for FY12/16 through FY12/18.
Midterm Plan

FY12/15

FY12/16

FY12/17

FY12/18(JPYmn)

Act.

Est.

TargetTarget

Sales

1,933

2,339

2,604～2,188

2,974～2,298

Operating Profit-2,551-2,778-3,379～-3,521-3,526～-3,778

Recurring Profit-2,630-2,811-3,412～-3,554-3,559～-3,811

Net Income-2,632-2,815-3,416～-3,558-3,563～-3,815

Source: Shared Research based on company data.

Main pipeline schedule
Main Pipeline Schedule

FY12/15

FY12/16

Treakisym(first-line treatment of low-grade NHL and
MCL)

Apply forapproval

Obtainapproval

Treakisym(CLL)

Apply forapproval

Obtainapproval

Rigosertib (IV)(relapsed and refractory high-risk MDS)

Participate inglobal trials

Rigosertib (oral)(high-risk MDS [in combination withazacitidine])

Phase I clinical
trialsSyB P-1501
Patient-controlled analgesia for pain
management

FY12/17

FY12/18

Apply forapproval

Completephase I clinical
trialsPhase III
clinical trials

Apply forapproval

Source: Shared Research based on company data

Earnings targets
Sales
Based on the assumptions below, the company’s mid-term plan calls for an increase in Treakisym sales growth by securing
a larger market share alongside an expansion of its applications.
SymBio plans to hold seminars for doctors in Japan to promote Treakisym as an efficacious and safe alternative treatment
to existing drug therapies within the relapsed or refractory low-grade NHL and MCL market. Such efforts may also lead toan increase in per-patient sales as patients complete additional treatment cycles.
The company filed a domestic sNDA for approval to use Treakisym in the treatment of first-line low-grade NHL, MCL, and
CLL in December 2015. It expects to receive approval in FY12/16.
Sales of Treakisym for the indication of first-line low-grade NHL will likely affect overall sales in FY12/17 and FY12/18.
According to the company, the upper estimate for sales is the case in which it receives approval, and the lower estimate isif approval is not granted.

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SymBio Pharmaceuticals | 4582 |SymBio Pharmaceuticals ＞ Recent updates

LAST UPDATE【2016/6/13】

SG&A
SG&A expenses, including R&D costs, are expected to increase under the medium-term management plan as thecompany pursues clinical trials of SyB P-1501 and the IV and oral forms of rigosertib. SymBio intends to continue withevaluations and deliberations regarding new product development candidates, but any expenses related to the launchand development of these candidates are not included in medium-term plan estimates.
Concerning other SG&A expenses, the company is considering the establishment of its own sales network, and has madeexpense estimates under the assumption that preparations will begin during FY12/17.

Mid-term plan assumptions
Pipeline progress
Treakisym▶ To increase sales for indications of relapsed or refractory low-grade NHL and MCL, SymBio plans to promote a strategic

marketing partnership with Eisai to continue with efforts to make Treakisym’s benefits well-known.
▶ An approval application for the manufacturing and sale of Treakisym as a first-line treatment for refractory/relapsed

low-grade NHL, MCL and CLL was completed in December 2015. The company plans for approval to be granted
during FY12/16.
▶ Concerning the use of Treakisym for relapsed or refractory aggressive NHL, phase II clinical trials have been completed,and deliberations aimed at winning approval will continue. Sales and expenses related to these indications have notbeen incorporated into the medium-term plan.

Rigosertib▶ Rigosertib (IV) for relapsed and refractory high-risk MDS is slated to undergo Japanese clinical trials as part of global

phase III trials being undertaken in cooperation with Onconova. The company aims for approval during FY12/19.
▶ Phase I clinical trials are underway in Japan for rigosertib for high-risk MDS (in combination with azacitidine), and thetrials are scheduled to be completed during FY12/17. Development that set out efficacy targets for bloodtransfusion-dependent low-risk MDS is being evaluated based on

development progress at Onconova.

SyB P-1501: Patient-controlled analgesia for pain management
Phase III clinical trials for short-term management of acute postoperative pain are scheduled to begin during FY12/16,
with plans for approval during FY12/18.

Anti-cancer drug using the TTR1 nano-agonist molecule
Joint development with Teikyo Heisei University will proceed in FY12/16, with evaluations being made toward
implementing a global licensing scheme.

Reorganization of sales force ahead of rigosertib sales
The company will consider reorganizing its sales force in preparation for the launch of rigosertib. In August 2008, thecompany established an exclusive partnership with Eisai for Treakisym. Eisai agreed to cover one-time payments,
milestone payments in accordance with clinical trial stage, and half of R&D expenses, as well as 100% of sales andmarketing costs. Shared Research estimates that Eisai takes a margin of about 50% on domestic Treakisym sales at the
National Health Insurance (NHI) drug price - SymBio’s margin is just over 10%. The company also expects its margin towww.sharedresearch.jp

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improve as procurement costs fall in line with higher sales.
As of February 2016, SymBio had not entered into an exclusive domestic sales agreement for rigosertib with any
company. According to its medium-term plan, the company will consider the creation of its own sales framework tocoincide with approval to manufacture and sell rigosertib in IV form. Following conversations with the company, Shared
Research estimates that Eisai has 120-130 specialist medical representatives focusing on oncologic conditions. Labor costs
would increase if SymBio were to create its own sales force of 30-40 medical representatives to sell rigosertib, but thecompany could realize a significantly higher profit margin on rigosertib sales than with Treakisym.

Introduction of new drug candidates
According to the medium-term plan, the company will continue to evaluate numerous candidate drugs, and will move toacquire promising candidates that enhance its corporate value. Shared Research expects the company to spend between
JPY500mn and JPY1bn in one-time payments per new drug candidate and incur additional R&D expenses.
In April 2016, the company issued of a third series of unsecured convertible bonds with subscription rights to new shares,
and series 39 subscription rights to new shares by third-party allotment, and raised JPY3.9bn (net expenses); JPY3.0bn
from the third series of unsecured bonds with subscription rights to new shares, JPY10mn from the issue of subscription
rights to new shares, and JPY944mn from the exercise of subscription rights. As of April 2016, the company has beencollaborating with partner companies to develop multiple new drug candidates, and plans to use the raised funds toobtain rights to new drug candidates, finance the acquisition of companies that own the rights to new drug candidates,
and cover development expenses (particularly for clinical trials after acquisitions).

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Business
Business description
SymBio licenses drugs for development and sale in Japan and Asia Pacific
President and CEO, Fuminori Yoshida, established SymBio in March 2005 to address underserved medical needs in Japanand the Asia Pacific region, with main focus on oncologic, hematologic and autoimmune diseases. The company aspires
to be a leading specialty pharmaceutical company in the Asia Pacific region. Its strategic approach to drug development
negates the need for costly and time-consuming investment in earlier-stage R&D activities with an in-house search andevaluation team to identify and assess only quality drug candidates having proof-of-concept established in humansubjects.

Strategy Overview (details to follow)◤

Proof-of-concept: The company reduces product development risk by focusing on drug candidates undergoingclinical development with preclinical/clinical data establishing safety and efficacy in human subjects.

◤

Screening: The company uses an in-house search and evaluation team to screen and evaluate drug candidates
having a high unmet medical in Japan and other Asia Pacific markets with the potential to secure marketing approvalin a shorter clinical development period. A select number of drug candidates will then undergo rigorous review by
the company’s Scientific Advisory Board (SAB).

◤◤

Fabless: The company outsources preclinical/clinical studies and manufacturing to reduce fixed costs.
New areas: The company targets drugs with the potential to receive orphan drug designation and thus, secure alonger marketing exclusivity period due to high unmet medical needs—including oncology, hematology, and pain
management—and smaller patient populations. Larger pharmaceutical companies may be reluctant to develop
drugs in niche markets due to limited sales potential—SymBio sees an opportunity to avoid intense competition in
the marketplace by focusing on the development of orphan or ‘orphan-like’ drugs.

◤

Global expansion strategy: The company identifies and capitalizes on opportunities to grow sales by acquiring
the right to develop drug candidates in Japan and other international markets.

Proof-of-concept: Per company materials, “confirming the efficacy and safety of a new drug candidate in human subjects through clinical
trials…”

As of March 2016, the company had evaluated some 500 drug candidates since its establishment in March 2005, signingon four deals.
According to the company, the development of a drug—from preclinical studies to approval—usually takes 10 to 17 years.
A newly developed chemical compound has a 1/100,000 chance of securing regulatory approval. By contrast, thecompany’s first product, Treakisym, received approval for domestic production only five years after signature of theLicense Agreement. The company achieved sales of JPY4.2bn in Japan in the third year after launch (FY12/13), equivalent
to a market share of over 50%.
An example of the company’s ability to identify and pursue quality in-licensing opportunities with proof-of-concept
established is the license agreement signed for the development and commercialization right to rigosertib—currently inwww.sharedresearch.jp

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phase I clinical trials in Japan. In July 2011, once phase II clinical trials in the US established the drug’s proof-of-concept,
SymBio secured an exclusive right to all indications for rigosertib in Japan and South Korea from Onconova within sevenmonths from the initial meeting between the two companies. The following year, Baxter International Inc. entered into anagreement with Onconova for the commercialization rights to rigosertib in Europe with a USD50mn upfront payment and
USD337.5mn in pre-commercial milestones tied to MDS and pancreatic cancer indications (in addition to an existing
equity investment with Onconova of USD55mn), a market that is approximately twice the size of Japan.

Four products under development: Treakisym, rigosertib (IV and oral), and SyB P-1501
Treakisym
For patients that have developed resistance to other drugs, Treakisym is safer and more effective than existing treatments.
In October 2010, SymBio received approval to use the drug in Japan for relapsed or refractory low-grade NHL and MCL,
having previously received orphan drug designation and priority review for these two indications.
Refractory conditions are difficult to treat, or do not respond to treatment.

As of February 2016, SymBio has been undergoing the approval process for Treakisym for the indications of first-line
low-grade NHL, MCL, and CLL. The company expects to receive approval for these indications in FY12/16.

Rigosertib
Rigosertib is a treatment for myelodysplastic syndromes (MDS). According to the company, rigosertib may be used alone
or—due to its safety—in combination with other anticancer drugs. The drug is being developed in both intravenous (IV)and oral forms.
In February 2014, Onconova completed phase III clinical trials for the IV form of rigosertib in patients with relapsed or
refractory MDS in Europe, and its efficacy was proven in subgroup analysis. SymBio also completed patient registration forphase I domestic clinical trials in January 2015. From August 2015, Onconova has been conducting global phase III clinical
trials for patients with higher-risk MDS who had failed or relapsed after prior therapy with hypomethylating agents(HMAs). Within Japan, the company has been conducting joint global phase III clinical trials in cooperation with
Onconova.
For the oral form of the drug, Onconova is conducting phase II clinical trials in the US for high-risk MDS (in combination
with azacitidine) and transfusion-dependent low-risk MDS. In Japan, SymBio is conducting a phase I clinical trial forhigh-risk MDS (with azacitidine). It may participate in global trials that Onconova plans to launch in FY12/16 or FY12/17.

SyB P-1501
SyB P-1501 (known as IONSYS in the US) is a drug delivery system allowing post-operative patients to manage their pain.
As a needle-free alternative, SyB P-1501 is anticipated to improve treatment satisfaction as it lessens the physical andpsychological burden on patients. It is also expected to offer increased safety and convenience for medical institutions,decreasing the labor and costs required to manage electric pumps. SymBio obtained exclusive development andmarketing rights for the drug in Japan from The Medicines Company in October 2015.
The Medicines Company received approval for Ionsys from the US Food and Drug Administration (FDA) in April 2015. It
has already begun marketing the drug in the US. The European regulatory agency also granted approval to the drug inNovember 2015. In Japan, safety of the drug has already been established in a phase I clinical trial on healthy adults, andwww.sharedresearch.jp

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SymBio plans to launch phase III clinical trials in FY12/16, with application for approval to follow in FY12/18. The company
aims to obtain approval in Japan in FY12/19.

Revenue: milestone payments and Treakisym
Revenue comes from milestone payments and product sales. Operating losses have persisted since the company’s
foundation with the exception of FY12/08 when the company booked an operating profit due to a one-time contract
payment from Eisai for an exclusive domestic right to sell Treakisym (see Historical performance). For FY12/16, thecompany expects an operating loss, recurring loss, and net loss of JPY2.8bn each. Over the course of the mid-term plan
(FY12/16–FY12/18), the company expects to post annual operating losses of JPY2.8–3.8bn.
SymBio expects annual operating losses of JPY9.8–10.2bn in total between FY12/16 and FY12/18. To achieve
medium-term growth, the company needs to continue considering the in-licensing of new drug candidates fordevelopment and commercialization. As of the end of FY12/15, the company had cash and deposits plus securities ofabout JPY4.3bn. More cash may be necessary to continue bankrolling growth.

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Business strategy
In-licenses drug candidates from pharma companies in the US or EU
Unlike conventional pharmaceutical companies, SymBio does not conduct basic research or develop its own drugcandidates in labs or clinics. Rather, it in-licenses drug candidates from pharmaceutical and biotech companies based in
the US or EU.
The company focuses on developing drugs that have strong safety and efficacy data in clinical trials, providing an
opportunity to develop new drugs more likely to succeed and secure regulatory approval with the use of bridging datawhenever possible to shorten development timelines. Because the company does not conduct basic research, thecompany can file an NDA and start selling a drug within five to six years of securing the development andcommercialization right. The company increases the chance that drug candidates it in-licenses will be approved in the
future through an effective in-house screening process and rigorous evaluation by the company’s Scientific Advisory
Board.
The overall aim is to reduce development risk, streamline expenses, and expand revenue opportunities. This hinges on
the five strategies, namely post proof-of-concept, screening, fabless, niche market, and global expansion.

SymBio targets compounds with an established proof-of-concept
The pharmaceutical business requires substantial financial commitment in terms of upfront investment, not to mention
the number of years of development required in order to realize a return on the investment and the high risk of failure inclinical studies from Phase I through III. According to the company, the probability of a chemical compound having asignal with pharmacological activity in a particular disease being approved as a drug is 1/20,000 to 1/25,000, and only
15–20% of drugs that manage to enter the marketplace achieve profitability for the sponsor. Given the high rate of
attrition of drug candidates in clinical development, SymBio reduces development risk by only targeting quality drugcandidates undergoing clinical development with proof-of-concept established in human subjects and/or market sales.
NDA filings that use clinical data generated overseas can expedite product development in Japan and other parts of Asia,
slashing development costs and improving the overall success rate.
Post-proof-of-concept strategy

Source: Shared Research based on company data.

It may be possible for the company to file NDAs in Japan by bridging Japanese Phase I clinical trials with foreign data
through its participation in global phase III studies, thereby avoiding the need to complete domestic phase II and/or

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phase III studies for marketing approval.

Screening: independent search network plus evaluation experience
The company identifies quality chemical compounds owned by pharmaceutical and biotech companies in the US or EU
using a proprietary “search engine” and rigorous evaluation process. These candidates are first screened in-house by thesearch and evaluation team, whose members have extensive product development experience working at various
pharmaceutical and biotech companies.

Onsite due diligence
After a select team visits the potential licensor to conduct due diligence, a decision is made regarding whether to pursue
the in-licensing opportunity based on the results of onsite due diligence and input from the company’s SAB members.

Only four drugs out of 500+ have met the company’s stringent criteria since its foundation
As of March 2016, the company had screened over 500 candidates. It acquired four. The first was Treakisym, which Eisai
Co., Ltd. (TSE1: 4523) sells in Japan. Clinical trials for additional Treakisym indications are underway. In addition to
Treakisym, the company is also developing intravenous and oral versions of rigosertib, an anti-cancer drug for
myelodysplastic syndromes, and SyB P-1501, a patient-controlled analgesia for pain management.
Drug candidate selection process

Source: Shared Research based on company data.
CDA = confidential disclosure agreement

Scientific Advisory Board
The Scientific Advisory Board is comprised of former directors of pharmaceutical companies, researchers, and doctors,
and meets three times a year. Typically, the SAB panel evaluates two to three drug candidates that have been selected via
the company’s in-house screening process. This in-house screening of only those drug candidates having
proof-of-concept established in human subjects with supportive efficacy and safety data followed by SAB assessment
enables the company to reduce development risk and to pursue only those opportunities having the best chance ofreaching the marketplace.

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Scientific Advisory Board members

NameProfileGeorge Morstyn, M.D., Ph.D.

Presently Chairman GBS Venture Capital firm, Deputy Chairman VictorianComprehensive Cancer Centre, Director of Co-operative Research Centre for Cancer
Therapeutics and Proacta.
Former Senior Vice-President of Development and CMO at Amgen Inc..

Robert Lewis, M.D., Ph.D.

Former Senior Vice-President of US R&D, Aventis Pharmaceuticals;
Chief Scientific Officer, Cell Therapeutics; Head of Discovery Research,
Syntex Pharmaceuticals; Associate Professor, Harvard Medical School
Currently serves as consultant in Immunology/Inflammation, Roche Palo Alto;
Adjunct Faculty Member, Rockefeller University, New YorkTomomitsu Hotta, M.D.

Honorary President, National Cancer Center
Honorary Director, Nagoya Medical Center

Makoto Ogawa, M.D., Ph.D.

Honorary President, Aichi Cancer Center

Tatsutoshi Nakahata, M.D., Ph.D.

Deputy Director and Professor of Center for iPS Cell Research andApplication (CiRA), Institute for Integrated Cell-Material Sciences, Kyoto University
Honorary member, The Japanese Society of Hematology

Toshio Suda, M.D., Ph.D.

Professor, Keio University School of Medicine(Chair in Developmental and Differential Biology)
Guest Professor, Institute of Molecular Embryology and Genetics, Kumamoto University
Vice President, The Japanese Society of Hematology in 2012

Tsutomu Takeuchi, M.D., Ph.D.

Professor of Medicine, Keio University, School of Medicine(Division of Rheumatology, Clinical Immunology, Department of Internal Medicine)

Shinji Nakao, M.D., Ph.D.

Professor, Kanazawa University College of Medical, Pharmaceutical and Health Sciences,
Division of Cancer Medicine Cellular Transplantation Biology (Hematology/Respirology)
Executive Director, The Japanese Society of Hematology in 2012

Toshio Heike, M.D., Ph.D.

Professor, Kyoto University Graduate School of Pharmaceutical Sciences (Developmental
Medicine, Pediatrics)
Director, Clinical Genetics Unit, Kyoto University Hospital
Director, Division for iPS Cell Application Development, Kyoto University Hospital

Source: Shared Research based on company data.

A fabless strategy with a lean management team
SymBio seeks to reduce costs and raise profits by finding the right partner(s) to develop and commercialize drugs nimblyand efficiently through flawless execution.
Specifically, the company designs clinical trial protocols and whenever possible, will participate in global phase III studies
being conducted by its partner(s) overseas with the aim of shortening development timelines in Japan. It may be possible
to file NDAs in Japan using foreign data to support or "bridge” data generated in Japanese clinical trials, thereby avoiding
the need to complete domestic phase II and/or Phase III studies for marketing approval. The company uses its wellestablished network for bendamustine to coordinate with medical professionals, outsourcing routine development
duties. Production is also outsourced either to the company that originally granted the product license, or to otherdomestic or foreign manufacturer(s).

Focusing on niche markets: oncology, hematology, and pain management
SymBio focuses on drugs for underserved medical needs—even when the market may be as small as JPY10bn—rather thanwww.sharedresearch.jp

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focusing on blockbuster drugs with sales in the hundreds of billions of yen. It aims to take advantage of therapeutic areasthat tend to be overlooked in the pharmaceutical industry and thus, lack effective drugs. Specifically, the company
specializes in therapeutic areas with high barriers to entry, such as oncology, hematology, and pain management.
According to the company, globally Japan has the third largest oncology market after the US and EU, and the market is
expected to continue to expand due to Japan’s aging population. However, regarding the type of tumors that anticancer
drugs can effectively treat, there is a considerable range of indications with a limited number of patients who will benefit
from approved cancer treatments, particularly in the elderly population where the occurrence of serious adverse events
can be prohibitive. As a result, barriers to entry are high—developing cancer drugs for niche markets is especially difficult
and requires a high level of expertise. Concerns about having sufficient profit margins from marketed drugs to fund large
operations means that major pharmaceutical companies may be reluctant to target indications with limited patientnumbers for development, presenting an opportunity with fewer competitors in the marketplace for smaller and more
specialized pharmaceutical companies such as SymBio.

Strategy for global expansion
The company is seeking to develop new drugs that are complementary to Treakisym and rigosertib to sell in China/HongKong, Taiwan, South Korea, and Singapore, as well as in Japan. In the medium-term plan announced in February 2016, thecompany maintains that it will not limit itself to the Japan and Asia regions, but will always look to acquiring global rights
when discovering, evaluating, and negotiating terms for new drug development candidates. In line with this thinking, theSymBio acquired an exclusive license for the global development, manufacture, and commercialization for anti-cancer
drugs utilizing the TTR1 nano-agonist molecule, a drug jointly developed with Teikyo Heisei University.

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Pipeline
Name/Code

Category

Licensed country

Indications

Japan

Refractory/relapsed
low-grade NHL
Refractory/relapsed
MCL
Refractory/relapsed
MCLFirst-line
low-grade NHL,MCL
CLL

Singapore
Treakisym
SyB L-0501

Anti-cancer agent

Low-grade B-cell NHL
CLL
CLL

Anti-cancer agent(oral)SyB P-1501

Patient-controlled
pain management

Market approval(2010/1/20)

Market approval(2014/6/16)

China

Low-grade NHL

Clinical trials underway

Low-grade NHL

Market approval(2009/12/30)

Japan

Eisai Co., Ltd.
(exclusive development and sales
rights granted to Eisai)
Eisai Co., Ltd.
(exclusive development and sales
rights granted to Eisai)

Teva Pharmaceutical Industries Ltd.
(China)(exclusive development and sales
rights granted to Teva)

Market approval(2011/10/18)

Innopharmax, Inc. (Taiwan)(exclusive development and sales
rights granted to Innopharmax)

Refractory/relapsed
high-risk MDS

Global trials PIII―

High-risk MDS

PI (completed: 2015/6)―

CLL

Rigosertib(oral)SyB C-1101

Apply for approval

Refractory/relapsed
low-grade NHL

Low-grade NHL

Eisai Co., Ltd.
(co-developed; exclusive sales rights
granted to Eisai)

Apply for approvalMarket approval(2011/5/31)

TaiwanAnti-cancer agent(IV)

PII (completed)

MM

CLL

Sales partnerMarket approval(2010/10/27)

Korea

Hong Kong

Rigosertib(IV)
SyB L-1101

Development stage

Japan
High-risk MDS (with azacitidine) PI
Japan

Management of acutepostoperative pain

PI completed――

Preparations for PIII underway

Source: Shared Research based on the company website

As of February 2nd, the following drugs were in the development pipeline:▶ Treakisym, targeting indication for first-line low grade NHL and MCL indications▶ Treakisym, targeting indication for chronic lymphocytic leukemia▶ Treakisym, targeting indication for first-line treatment for low-grade NHL and MCL▶ Rigosertib (intravenous form), targeting indication for relapsed or refractory higher-risk myelodysplastic syndrome▶ Rigosertib (oral form), targeting indication for high-risk MDS▶ Rigosertib (oral form, in combination with azacitidine), targeting indication for high-risk MDS▶ SyBP-1501, patient controlled analgesia for pain management

SyB L-0501(generic: bendamustine HCI; product name: Treakisym)
SyB L-0501 (Treakisym) or bendamustine hydrochloride is an anticancer agent. It is used as a treatment for low-gradeNHL, MCL, MM and CLL.

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LAST UPDATE【2016/6/13】*Bendamustine was developed in 1971 by Jenapharm in former East Germany, where it was approved as a first-line treatment for low-gradeNHL, MM, and CLL. After the unification of Germany in 1990, bendamustine was again evaluated for its effectiveness against these indications.
In 2005, Germany approved the use of the drug for untreated low-grade NHL, MM and CLL. The drug was also approved in several other
European countries in 2007. In the US, Treanda (bendamustine) was approved in March 2008 for relapsed or refractory NHL and CLL, withsales in October the same year. A separate application was filed in the US (2008) for the additional indication of previously untreated CLL.

According to the company, no cross-resistance has been shown for this drug, which means it is safer and more effective
than existing treatments for target indications. In October 2010, SymBio received regulatory approval in Japan to market
the drug for relapsed or refractory low-grade NHL and MCL. Eisai covers 100% of the marketing and sales costs, and has
been selling the drug since its launch in December 2010 (see Earnings structure).
As of February 2016, the company was preparing to file domestic applications for first-line treatment of low-grade NHL,MCL, and CLL. The domestic approval process is underway, and SymBio is aiming for approval during FY12/16.

Lymphatic cancer
Lymphatic cancer is a malignant growth of lymphatic corpuscles in white blood cells. It causes inflammation of thelymphatic nodes. Lymphatic cancer is divided into Hodgkin’s lymphoma (HL) and non-Hodgkin’s lymphoma (NHL).
Among the Japanese population, only 4% of lymphatic malignancies are HL. About 70-80% of NHL cases affect B-cells; theremaining 20-30% affect T/NK cells. Physicians examine tissue and determine the method of treatment depending on thetype of cancerous cells observed: they look at the grade (high, intermediate, or low, depending on the aggressiveness ofthe disease) and clinical staging, which shows to what extent the cancer has spread.
Lymphatic malignancy: frequency by type

Category

Frequency

Non-Hodgkin's lymphoma

94%

B lymphocytes

69%

T/NK lymphocytes

25%

Hodgkin's lymphoma

4%

Other

2%

Source: Japanese Society for Lymphoreticular Tissue Research (JSLTR)

Treakisym in-licensed from Astellas; Eisai handles sales
In December 2005, SymBio signed a license agreement for the exclusive right to bendamustine in Japan with Astellas
Deutschland GmbH (“Astellas”), a subsidiary of Astellas Pharma Inc. The company entered into a second license
agreement with Astellas in March 2007 to extend its exclusive development and commercialization right for
bendamustine to China/Hong Kong, Taiwan, South Korea, and Singapore.
In August 2008, SymBio granted Eisai Co., Ltd. (“Eisai”) the co-development and exclusive marketing right for Treakisym
in Japan. Under the agreement, SymBio receives one-time payments from Eisai as well as milestone payments based on
the clinical trial stage for a particular indication, plus revenues after supplying Treakisym to Eisai. Eisai shoulders half of thedevelopment costs for Treakisym, including labor costs for researchers and outsourcing costs for clinical trials (seeEarnings structure).
SymBio has granted exclusive marketing rights for Treakisym to InnoPharmax, Inc. in Taiwan, Cephalon, Inc. in China, andEisai in South Korea and Singapore. In return, SymBio receives one-time milestone payments, and books revenue from thewww.sharedresearch.jp

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sale of the drug to these companies.

Approval for relapsed or refractory low-grade NHL, MCL
In October 2010, five years after acquiring the right to Treakisym, SymBio received marketing approval in Japan forrelapsed or refractory low-grade NHL and MCL. In FY12/15—following the domestic launch of the drug in December
2010—Treakisym sales to end users reached JPY4.8bn.
According to the company, Japan has about 4,700 patients who suffer from relapsed or refractory NHL and MCL. SymBio
thinks annual Treakisym sales could reach JPY4.5bn-JPY5.0bn.

Treakisym: additional indications
As of February 2016, Treakisym was undergoing the domestic approval process for first-line treatment of low-grade
NHL/MCL, CLL. It was also under development by the company for relapsed or refractory moderate to high-grade NHL as
part of its plans for label expansion.
Market for Treakisym and number of patients
Non-Hodgkin's Lymphoma
Low-grade B-cell

High and intermediate grade

Chronic Lymphatic Leukemia
Number of patients: 700

Number of patients: 7,100
Initial treatment

Obtain approval in FY12/16 (planned)

Obtain approval in FY12/16 (planned)

Approval already obtainedi n the US/Europe

Phase III trials complete in Europe

Filed for marketing approval in Japan

Filed for marketing approval in Japan

Number of patients: 4,700
Relapsed andrefractory
conditions

Approval obtained
Approval obtained in Japan in Oct. 2010
Sales launched in Japan in Dec. 2010

Number of patients: 6,700
Consultation on application underway
Phase II trials complete in Japan

Source: Shared Research based on company data.

First-line treatment of low-grade NHL and MCL
In Japan, R-CHOP therapy—a combination of rituximab with CHOP chemotherapy drugs (cyclophosphamide,
doxorubicin, vincristine, and prednisolone)—is standard first-line treatment for low-grade NHL and MCL despite thefrequent occurrence of adverse events due to toxicity. Researchers have yet to establish the most appropriate method oftreatment using rituximab in combination with chemotherapy.
Phase III clinical trials conducted overseas have demonstrated that rituximab in combination with bendamustine (R-B
therapy) was safer and more efficacious than standard R-CHOP therapy for previously untreated low-grade B-cell NHL.
Based on these results, the National Comprehensive Cancer Network (NCCN) and European Society for Medical
Oncology (ESMO) guidelines recommend the use of R-B therapy as first-line therapy for patients with untreatedlow-grade NHL. The efficacy and safety of R-B therapy demonstrated during clinical trials for previously untreatedlow-grade NHL led to recommendations as first-line treatment for this indication.

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Development status: Astellas withdraws European approval request; final analysis for US BRIGHT trials planned
A randomized phase III trial was completed in March 2011 by Dr. M. J. Rummel and researchers affiliated with Study
Group Indolent Lymphomas (StiL) in Germany investigating efficacy and safety of bendamustine + rituximab (B-R) vs
R-CHOP in first-line low-grade NHL and MCL. An application based on the results of this study was submitted in March2012 to the German Federal Institute for Drugs and Medical Devices (BfArM), but the submission was withdrawn inJanuary 2016. According to the company, the Astellas subsidiary stated that its reasoning for withdrawal was not related
to the efficacy nor the safety of Treakisym. BRIGHT trials (additional phase III trials) underway in the US are scheduled forfinal analysis in 2017, and the company plans to decide upon its course of action upon completion of the analysis.
The European phase III clinical trial was conducted at 81 facilities in Germany, treating patients who were newly
diagnosed between September 2003 and August 2008 with stage III or IV low-grade NHL or MCL. The trials involved acomparison between R-CHOP and the bendamustine-rituximab (B-R) regimen (bendamustine is marketed as Levact®,
Ribomustin®, or Ribovact® in Europe). A total of 275 patients underwent R-CHOP therapy, while 274 were administered
the B-R combination. The median follow-up period was 45 months. Clinical results showed that the medianprogression-free survival period was 69.5 months for the bendamustine hydrochloride-rituximab group while that for the
R-CHOP group was 31.2 months (p<0.0001), demonstrating the superiority of the B-R therapy.

p-value: In statistics, the p-value indicates the randomness of an observed result, or how trustworthy the sample is. A p-value of 0.01 indicatesthat an observed result will occur randomly one out of 100 times. Generally, if the value is below 5%, the result is statistically significant.

sNDA filing in Japan for first-line low-grade NHL and MCL in FY12/15
Since November 2011, the company has been conducting domestic phase II clinical trials in cooperation with Eisai forfirst-line low-grade NHL and MCL indications. Based on these results, and with data from European phase III clinical trials,
SymBio filed an application for approval for first-line low-grade NHL and MCL indications for Treakisym. After submission
in February 2016, the withdrawal for approval from the European subsidiary of Astellas was reported to the PMDA, andthe Japanese approval process will not be affected by the developments in Europe.
The company plans to receive approval for Treakisym for first-line low-grade NHL and MCL indications during FY12/16.

Patient population
SymBio estimates that there are 7,100 first-line low-grade NHL and MCL patients in Japan—1.5 times the number ofpatients with relapsed or refractory low-grade NHL and MCL. Treakisym sales could reach JPY5.5bn–JPY6bn as theJapanese population continues to age.

Treakisym targeting chronic lymphocytic leukemia (CLL)
Astellas’ European subsidiary has obtained approval in the US and the EU to market Treakisym for the indication of
untreated CLL. In Japan, Treakisym was designated as an orphan drug (drug for the treatment of rare diseases) in June2012 by the Review Committee on Unapproved or Off-Label Drugs with High Medical Needs after it was determined that
this drug met critical demand for new therapies to treat CLL.

R&D status: application in FY12/15
The use of Treakisym to treat CLL has already been approved in the US and Europe. In October 2015, SymBio completed
a pivotal phase II trial for Treakisym in CLL as a joint project with Eisai. In light of the phase II results, an application for
approval was made in December 2015. Approval is planned to be obtained in FY12/16.

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Potential patient population, expected sales
SymBio estimates that there are about 700 CLL patients in Japan. Shared Research estimates that sales could reach
JPY300mn–JPY350mn. This estimate is based on Treakisym sales per patient with relapsed or refractory low-grade NHL or
MCL.

Relapsed or refractory DLBCL (aggressive NHL)
Diffuse large B-cell lymphoma (DLBCL), or aggressive NHL, progresses rapidly but recovery may be expected in patientsfor whom anti-cancer drugs are effective. R-CHOP is the standard initial therapy for DLBCL, the most common type ofNHL.
But according to the company, DLBCL patients relapse or become refractory to R-CHOP used as first-line therapy in about
40% of cases, and only patients who are 65 or younger can undergo chemotherapy at higher doses together withautologous stem cell transplants. Because the majority of relapsed or refractory DLBCL patients are elderly, physiciansmust consider potential side effects when selecting a suitable treatment. Weaker patients—due to age or otherillnesses—have limited choices for treatment, and there is a need for a safer, more effective method of treatment such as
Treakisym.

R&D status
In March 2012, the company completed final analysis and evaluation of data from its phase II clinical trial using Treakisym
in combination with rituximab for relapsed or refractory DLBCL (aggressive NHL). The trial, with clinical trial sites in both
Japan and South Korea, demonstrated an improved prognosis with a median progression free survival (PFS) of 6.7 months
as well as clinically manageable side effects in elderly patients.
SymBio had planned to file for marketing approval in Japan following completion of the phase II clinical trial andpresentation of the data at the 54th American Society of Hematology (ASH) Annual Meeting in December 2012, however,the company decided to delay submission of the marketing application after subsequent consultations with thePharmaceuticals and Medical Devices Agency (PMDA).

Potential patient population
According to SymBio, the number of relapsed or refractory DLBCL (aggressive NHL) patients in Japan is approximately
6,700.

SyB L-1101 (intravenous)/SyB C-1101 (oral) (generic name：rigosertib)
Rigosertib is a tumor-specific dual-specificity inhibitor, which inhibits both the PI3K (phosphoinositide 3-kinase) and thePLK (polo-like kinase 1) pathway. It is being developed in the US and EU by Onconova as a treatment for myelodysplastic
syndromes (MDS) as well as in other indications such as first-line MDS and AML (in combination with Vidaza), and headand neck cancer (solid tumor).
According to SymBio, rigosertib’s high safety profile enables the drug to be used as both a monotherapy and incombination with other anticancer drugs. It is being developed in both intravenous and oral forms.
Onconova: A US biopharmaceutical company. Established in 1998, Onconova focuses on discovering and developing small molecule drugcandidates to treat cancer.

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Myelodysplastic Syndromes (MDS)
MDS is a refractory disease with a poor prognosis and progression to acute myeloid leukemia (AML) in approximately
30% of cases. It leads to abnormalities in hematopoietic stem cells that produce blood cells, resulting in a lack of blood.
Blood cells produced this way are abnormally shaped. This change in the cells is called dysplasia. The disease typicallyleads to frequent anemia with some patients dying from infection or bleeding due to the reduction in blood cells. The
average survival period is about three to five years, with some patients surviving 10 years or longer. It is still not clear whatenvironmental or genetic factors are responsible for the occurrence of MDS, although those who have received radiation
treatment or taken anti-cancer drugs may have a higher risk of developing the disease (source: Japan Adult Leukemia
Study Group: JALSG).
The seriousness of MDS is determined with the use of the International Prognostic Scoring System (IPSS). The IPSS score is
calculated based on the ratio of myeloblasts (immature blood cells) in the bone marrow, chromosome analysis, and theresults of a general laboratory blood test. The risk level is assessed based on the number of years that the patient is
expected to live, disease progression, and the probability that the disease may lead to acute myeloid leukemia. Risk
categories: low, intermediate-1, intermediate-2, and high. Lower-risk MDS refers to low and intermediate-1 patients,
while higher-risk MDS refers to intermediate-1 and high in the IPSS risk categories.

Acquired rights from Onconova to develop and sell rigosertib in Japan, Korea
In July 2011 SymBio bought the exclusive right to develop and sell the intravenous (IV) and oral forms of rigosertib
following completion of Onconova’s phase II US clinical trial for the IV form. In September 2012, Baxter International Inc.
acquired the exclusive right to develop and sell rigosertib in Europe.

Development status of rigosertib
As of February 2016, SymBio is developing the IV form of rigosertib for the indication of relapsed or refractory high-risk
MDS, and the oral form for high-risk MDS (in combination with azacitidine).
Onconova has been conducting joint global phase III clinical trials in over 10 countries since August 2015 for the
intravenous form of rigosertib in high-risk MDS patients who had failed or relapsed after prior therapy withhypomethylating agents (HMAs). In the Japanese market, the company has been conducting the joint global phase III
clinical trials in cooperation with Onconova since December 2015.
As of February 2016, Onconova is conducting phase II clinical trials for the oral form of rigosertib in the US for theindications of high-risk MDS (in combination with azacitidine) and transfusion-dependent lower-risk MDS. In Japan,
SymBio conducted phase I clinical trials for the indication of high-risk MDS (without any supplements), completing thetrials in June 2015. The company also initiated phase I trials for the indication of high-risk MDS (with azacitidine) in
FY12/16.

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Market for Rigosertib (oral form) and number of patients
Low-risk MDSHigh risk MDSFirst-line

First-line

Relapsed/refractory
Number of patients: 3,200
Obtain approval in FY12/19 (planned)

Intravenous

Oral

Joint international trial Phase III trials

Number of patients: 7,800

Number of patients: 3,200

Obtain approval in 2019-2020 (planned)

Schedule TBC

Phase II trials underway in the US

Phase II trials underway in the US
Phase I trials complete in Japan
Phase I trials underway in Japan(with azacitidine)

Source: Shared Research based on company data.

IV form of Rigosertib for post-HMA higher-risk MDSHigher-risk MDS is likely to cause a decline in blood cells or lead to leukemia. Treatment may involve stem cell transplants,
depending on the patient’s age, condition, and the compatibility of the donor. In the US and Europe, Vidaza (azacitidine)and Dacogen (decitabine) are standard drug therapies for this treatment. In Japan, Vidaza (being marketed by Nippon
Shinyaku) is also administered in cases where stem cell transplants are not used. (for Vidaza, see Market and value chain)
However, some cases of higher-risk MDS show resistance to standard treatment with hypomethylating agents (HMAs)
such as Vidaza and Dacogen, including relapse following treatment. The most advanced research being conducted forrigosertib as of February 2015 was for the treatment of patients with higher-risk MDS who had progressed on, failed orrelapsed after prior therapy with HMAs. According to the company, no drugs have been approved for the treatment of
post-HMA higher-risk MDS patients as of February 2016.

R&D status: ongoing joint international phase III clinical trial in patients with recurrent high-risk MDS following HMA therapy
In February 2014, Onconova completed its phase III ONTIME clinical trial for the intravenous form of the drug in MDS
patients in the US who showed resistance to standard treatment with HMAs, or who experienced recurrence of thedisease after treatment with HMAs.
Of the 299 patients enrolled in the phase III clinical trial, 199 were administered rigosertib and 100 were placed in thecontrol group. The overall survival (OS) period for those who received rigosertib was 8.2 months, while OS for thecontrol group (BSC) was 5.8 months. However, with a p-value of 0.27, there was no statistically significant difference
between the two groups.
Among patients whose condition had deteriorated or not responded to previous treatment using hypomethylating
agents (184 of 299 people, or 62%), the overall survival period for higher-risk MDS patients who received rigosertib was
8.5 months, while for those in the control group (BSC) it was 4.7 months. The p-value was 0.022, showing a statisticallywww.sharedresearch.jp

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significant difference. The hematological toxicity of the conventional anti-cancer agent was approximately 60%. Withrigosertib, toxicity of Grade 3 or above did not exceed 7%, and non-hematological toxicity did not exceed 3%,
confirming safety of the drug.
In August 2015, Onconova submitted plans to US Food and Drug Administration (FDA) and regulatory agencies inEngland, Germany, and Australia for global phase III comparative trials of rigosertib for patients who did not see resultsfrom low methylation, or experienced higher-risk refractory or relapsed MDS following HMA treatment. These global trials
are currently ongoing.

SymBio responsible for operation of global phase III clinical trials within Japan
SymBio initiated its phase I clinical trial for intravenous rigosertib to treat relapsed or refractory higher-risk MDS in June
2012. Patient registration was completed in January 2015, and phase I clinical trials were completed in October 2010.
Based on the outcome of discussions with the FDA and European regulatory agencies and Onconova’s future
development, the company has been operating the global phase III clinical trials within Japan since December 2015, andaims for approval during FY12/19.

Oral form of rigosertib for first-line high-risk MDS (in combination with azacitidine)
R&D status: phase I and II clinical trials underway
As of February 2016, Onconova is conducting phase I and II clinical trials of the oral form of rigosertib for the indication ofhigh-risk MDS (in combination with azacitidine).
During phase I of the trials, the 18 patients took only rigosertib (oral) in week one, rigosertib and azacitidine in week two,
only rigosertib in week three, and nothing in week four. The safety profile of this treatment was comparable tomonotherapy with azacitidine. Of the 18 patients, marrow complete remission or marrow complete remission withincomplete recovery of blood counts was reported in 9.
As of February 2016, phase II of the trial is underway by Onconova at three locations in the US and Europe, including the
MD Anderson Cancer Center in Texas.

Domestic phase I clinical trials
SymBio completed domestic phase I clinical trial of rigosertib (oral, without supplements) for the indication of high-risk
MDS in June 2015. In FY12/16, the company launched phase I clinical trials to confirm the safety of the drug in
combination with azacitidine for treatment of high-risk MDS. The company may also participate in global trials conductedby Onconova between FY12/16 and FY12/17.

Oral form of rigosertib for transfusion-dependent lower-risk MDS
Lower-risk MDS corresponds to all the low-risk categories and intermediate-1 of the IPSS with a blast-cell ratio (the ratio of
blast cells in the marrow and peripheral blood) of less than 5%. It is primarily caused by a decline in blood cells. It poses a
low risk of progression to acute leukemia.
Patients who do not suffer a large decline in blood cells and who do not have any subjective symptoms are placed underobservation instead of being treated. Those who develop anemia receive an infusion of red blood cells in accordance with
their age. Sometimes an immunosuppressant is used to prevent lymphocyte cells from attacking hematopoietic stem
cells. Depending on a patient’s age and condition, and HLA compatibility with a donor, an allogeneic hematopoietic stem

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cell transplant is sometimes carried out. Patients who are not suitable candidates for an allogeneic hematopoietic stem
cell transplant, but who are in critical condition due to hematopoietic failure, may be given Vidaza.

R&D status
Onconova is conducting a phase II clinical trial in the US for the oral form of rigosertib in first-line transfusion-dependent,
lower-risk MDS. As of February 2016, the company was in discussions with the FDA regard to design a phase III clinical
trial.
The company plans to concentrate on domestic phase I clinical trials (with azacitidine) for the oral form of rigosertib forhigh-risk MDS patients. Concerning clinical trials for transfusion-dependent, lower-risk MDS patients, SymBio plans tomake deliberations based on development progress at Onconova.

Patient population, estimated sales
According to SymBio estimates, patients with lower-risk MDS in Japan number about 7,800, with 3,200 MDS patientsclassified as higher-risk.
Nippon Shinyaku Co., Ltd. (TSE1: 4516) has been selling azacitidine in Japan as first-line therapy for MDS under the
product name Vidaza since March 2011. According to Nippon Shinyaku, sales of Vidaza were JPY9.7bn for FY03/14(+38.1% YoY). The company expects to book sales of JPY10.8bn for FY03/15. Shared Research thinks that sales of theintravenous and oral forms of rigosertib could match or exceed sales of Vidaza, used when patients who receive treatment
with Vidaza relapse.

SyB P-1501 (Ionsys [US product name] for patient-controlled analgesia)
SymBio obtained exclusive development and marketing rights to Ionsys in Japan from The Medicines Company (US) in
October 2015. Ionsys is a patient-controlled analgesia (PCA) system for post-operative pain management. It uses a credit
card-size device on the patient’s arm or chest to deliver a set dose of fentanyl (a synthetic opiate painkiller) at the press ofa button. This dose is absorbed transdermally without the need for needles or other invasive measures.
Post-operative pain management
Post-operative patients experience various forms of pain, so safe and effective forms of analgesia are key to improving
treatment satisfaction and quality of life. BB Research has estimated the worldwide market for pain management drugs
and devices at USD36.6bn in 2014, a figure expected to increase to USD44.3bn by 2020 based on 3.2% annual growth.
As of February 2016, many hospitals had begun using PCA, which allows patients to control administration of their pain
medications based on their own symptoms. The drug is delivered through an electronic pump at the touch of a button. A
cassette with diluted fentanyl is connected to an epidural or intravenous line. When necessary, the patient activates thedevice and a safe, effective dose of the analgesic is delivered automatically to control pain.
Conventional PCA methods used needles and constituted a mental and physical burden on patients. The electronic
pumps used also required maintenance, incurring high costs. Both doctors and patients were looking for a safer, moreconvenient PCA method.

SyB P-1501: expected to alleviate mental and physical patient burden, improve treatment satisfaction, save on labor and costs.
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fentanyl transdermally using the principle of iontophoresis. Older generations of PCA devices required electronic pump
maintenance , but SyB P-1501 eliminates the need for programming, line installation, power cords, accessories, drug
dilution, inspection, and refilling. This results in a safer, more convenient system which also allows hospitals to save laborand costs.

SyB P-1501 (left) and conventional PCA system (right)

Source: Company data

R&D status: Marketed in the US, approved in the EU, and phase III clinical trial ongoing in JapanThe Medicines Company received approval from the US Food and Drug Administration (FDA) in April 2015, and SyB
P-1501 is already marketed in the US. European regulators approved the drug in November 2015.
In Japan, domestic phase I trials have already established safety of the drug in healthy adults, and SymBio plans to launchphase III trials in 2016. The company expects approval in Japan in FY12/19.

Patient population, estimated sales
According to SymBio, about 1 million patients receive PCA treatment in Japan each year, accounting for 20% of all
surgeries. Of these, the company estimates 330,000 (about 34%) patients use IV-based PCA systems. The company
envisions switching of IV-based PCA to SyB P-1501. Price for the drug is about USD200 in the US, so the company
estimates annual sales of about JPY6.6bn assuming equivalent pricing in Japan and full switching of the IV-based PCA
patient population to SyB P-1501.

Research and Development
Anti-cancer drug utilizing the TTR1 nano-agonist molecule
A team led by Dr. Isao Ishida, Professor of the Faculty of Pharmaceutical Sciences, Teikyo Heisei University, discovered an
antibody that acts against TRAIL-R1, which is an expression on the surface of cancer cells or cancer stem cells, andmodified it to impart more efficient anti-cancer activity (TTR1 nano-agonist). A drug delivery technique using an
expression system in Bifidobacterium¹ was developed that enables the TTR1 nano-agonist to act selectively on hypoxic
cancer tissue. The anti-cancer activity and safety of this new anti-cancer drug has been confirmed in animal models.
In February 2016, the company announced that it had signed an agreement with Teikyo Heisei University to jointly
research and develop an innovative anti-cancer drug which uses the TTR1 nano-agonist molecule². Based on theagreement, the company will provide resources to implement preclinical and IND-enabling studies in collaboration withwww.sharedresearch.jp

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Teikyo Heisei University. SymBio also acquired the right to enter into an exclusive license agreement with Teikyo Heisei
University to globally develop and commercialize this innovative drug globally.
Joint development with Teikyo Heisei University will occur throughout FY12/16, and evaluations will be made toward
introducing a global licensing scheme.

Bifidobacterium¹: Genus of Gram-positive bacteria, and are one of the major genera of bacteria that make up the colon flora in mammals, withprobiotic activity limited to anaerobic environments. Bifidobacterium strains are important probiotics and widely used in the food industry(e.g. yogurt). As many types of cancer (specifically solid tumors such as pancreatic cancer) grow in a hypoxic environment, intravenously
administered Bifidobacterium expressing the TTR1 nano-agonist molecule will selectively live in cancer tissue and effectively kill cancer cells via
TTR1 nano-agonist molecule expression.
TTR1 nano-agonist²: Member of the tumor necrosis factor (TNF) family that exerts its apoptotic activity in human cells when it trimerizes bybinding to its transmembrane receptors, TRAIL-R1 and TRAIL-R2. It is difficult to form a trimeric structure using conventionalanti-TRAIL-R1antibodies, and thus apoptosis-inducing ability is typically weak. Camelids (e.g. camels, alpacas, llamas) produce functional
antibodies devoid of light chains of which the single N-terminal domain is fully capable of antigen binding. These single-domain antibody
fragments (VHHs or sdAb) have several advantages for biotechnological applications: they are well expressed in microorganisms, have a highstability and solubility, and can penetrate tissues relatively easily. Trivalent anti-TRAIL-R1 single-domain antibodies (TTR1: an abbreviation for
Trivalent anti-TRAIL-R1) used in our collaboration have agonistic activities and induce apoptosis, thus we call them TTR1 nano-agonist(s).

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SymBio Pharmaceuticals ＞ Business

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Earnings structure
Earnings structure(JPYmn)Sales
Product Sales

FY12/09

FY12/10

FY12/11

FY12/12FY12/13

FY12/14

1,191

1,450

1,883

1,955

1,532

1,955

1,933

-

326

1,632

1,955

1,432

1,940

1,933

FY12/15

Treakisym Sales to End Users (Reference)

-

644

3,390

3,940

4,230

4,320

4,760

Product Sales / Sales to End Users

-

50.6%

48.2%

49.6%

33.9%

44.9%

40.6%

Royalty Revenue

1,191

1,124

250

-

100

15

-

Sales to Eisai

1,085

1,446

1,872

1,930

1,486

1,908

-

Non-Eisai Sales

106

4

10

26

46

47

-

-

238

1,224

1,362

1,214

1,428

1,350

CoGS / Product Sales

-

73.1%

75.0%

69.7%

84.8%

73.6%

69.8%

CoGS / Sales to End Users

-

37.0%

36.1%

34.6%

28.7%

33.1%

28.4%

Product Procurement

-

238

1,434

1,322

1,175

1,550

1,242

CoGS

Gross Profit

1,191

1,212

658

593

318

527

583

SG&A

1,399

1,825

2,725

2,293

1,999

1,830

3,135

Personnel

323

343

365

413

441

479

488

Research

817

1,118

1,945

1,438

1,053

774

2,035

Other
Operating profit

259

364

415

442

505

577

612

-208

-613

-2,067-1,700-1,681-1,303-2,552

Source: Shared Research based on company data.

Sales
The company’s sales are made up of product sales and royalty revenue. Per the above table, most of the sales haveoriginated from Eisai.

Product sales
Product sales are revenue from selling Treakisym. The company began booking product sales in FY12/10, when it
obtained approval for Treakisym and started selling the anti-cancer agent in December 2010. In FY12/14, product sales
comprised sales of bendamustine to Eisai and InnoPharmax. Bendamustine is supplied wholesale at the NHI price minus apercentage based on past transactions. Shared Research estimates this percentage to be about 40%.

Royalty revenue
Royalty revenue includes one-time contract payments and milestone payments. Since granting the exclusive marketingright for Treakisym to Eisai in August 2008, SymBio books one-time payments and milestone payments in accordance withclinical trial stage.

CoGS
Cost of goods sold refers to procurement costs for drugs. As mentioned earlier, the company’s only product on themarket as of July 2014 was Treakisym (bendamustine). Astellas supplies bendamustine to the company for about 75% of
SymBio’s wholesale price. Margins may improve as sales increase.
SymBio receives bendamustine in nude vials from Astellas, carries out the packaging and labelling, and supplies the drug
wholesale to Eisai. SymBio pays Astellas in euros, with these transactions usually taking place several months apart. Thus,
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forward foreign-exchange contracts, and by reporting gains and losses on forex as a non-operating profit (or loss).

SG&A
Labor and R&D are the main SG&A expenses. Labor costs have been trending upward in line with business growth. R&D
expenses fluctuate depending on the progress of clinical trials and new license agreements from in-licensing activities.
According to the company, in-licensing expenses are between JPY500mn and JPY1bn per drug, and domestic clinical trials
cost between JPY1bn and JPY2bn. Note: Eisai pays half of the development costs for Treakisym in Japan.

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Strengths and weaknesses
Strengths◤

Unique candidate selection process: SymBio makes decisions on in-licensing new drug candidates based on an
initial assessment and screening process by its in-house search and evaluation team. The final decision is made by
the company after evaluation by a team of medical experts—the Scientific Advisory Board (SAB). President Yoshida’s
extensive range of contacts in the pharmaceutical industry built during his tenure at Amgen Japan and Amgen Inc. isa significant hurdle for competitors attempting to emulate the quality of the company’s search and evaluation team,
SAB panel and selection process.

◤

Strong product development: Treakisym (bendamustine hydrochloride)—the first drug the company
developed—received marketing approval in Japan just five years after the license agreement was signed with
Astellas. Treakisym, launched by the company in December 2010, is being used by a number of Japanese physicians
and is considered to be an essential drug for the treatment of relapsed or refractory low-grade NHL and MCL. The
company’s success with Treakisym demonstrates its strong product development capabilities and nimbleness. Three
additional indications are now under development by the company for the drug (relapsed or refractory aggressive
NHL; first-line low-grade NHL and MCL; and chronic lymphocytic leukemia), which may receive marketing approvalin the future.

◤

Strong share in niche markets: SymBio focuses on niche markets for rare oncologic and hematologic diseases, inaddition to pain management. The company takes advantage of a less competitive environment by developing
drugs for indications that serve a limited number of patients and require a high degree of in-house expertise. Thus,
the company has succeeded in securing more than 50% of the target market for Treakisym in relapsed or refractory
low-grade NHL and MCL in the third year after launch.

Weaknesses◤

Lack of sales force: The company does not currently have its own sales force, thus Treakisym is being sold throughEisai, an alliance partner. The company is considering the creation of its own sales and marketing organization for
rigosertib and other drugs approved beyond rigosertib. Such efforts could drive up costs and impact the company’s
future profitability.

◤

Funding needs: It takes time and significant investment for pharmaceutical and biotech companies to develop andcommercialize drugs, and they must secure funding on a regular basis to cope with the uncertainty of their earnings.
For SymBio, cash and equivalents plus short-term investments totaled about JPY4.3bn at the end of FY12/15. But thecompany expects a total net loss of JPY9.8–10.2bn over the period of its mid-term plan (FY12/16–FY12/18). The
company’s operations would be affected if it fails to secure additional funding.

◤

Dependence on a single individual: Founding President and CEO, Fuminori Yoshida, has played a central role in
all aspects of SymBio’s management since its foundation. If for any reason Mr. Yoshida is unable to perform his
duties, this could have an impact on company operations.

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SymBio Pharmaceuticals ＞ Market and value chain

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Market and value chain
Market strategy
Lymphatic cancer: patient population, market size, drugs
Newly diagnosed patients with lymphatic cancer
In 2011, the number of people diagnosed with lymphatic cancer in Japan was 24,778, according to the Center for Cancer
Control and Information Services. Of these, 19,080, or 77.0%, were 60 years or older. The number of people newly
diagnosed with lymphatic cancer has been rising along with Japan’s aging population. This number rose by 80% from2001 to 2011. This number is expected to rise to 29,700. According to the Center for Cancer Control and Information
Services, there were an estimated 29,700 lymphatic cancer patients in Japan in 2015.
Patients newly diagnosed with lymphatic malignancy
35,00030,00025,00020,00015,00010,000
5,000
0

1975

1980

1985

1990

1995

2000

2005

2010

2015

Patients newly diagnosed with lymphatic malignancy
Number of patients

1975

1980

1985

1990

1995

2000

2005

2010

2015

4,013

4,741

6,635

9,297

11,195

13,307

16,991

23,91929,700

3.6

4.1

5.5

7.5

8.9

10.5

13.3

Incidence rate (per 100,000)

18.7 -

Source: Center for Cancer Control and Information Services, National Cancer Center.
2015 data based on estimates

Market for lymphatic cancer drugs may expand
According to the Fuji Keizai Group, the domestic market potential for anticancer agents was JPY769.1bn in 2012. The
market is growing, and is expected to hit JPY1.1tn by 2021—the result of a larger elderly population in Japan and moretreatable patients as cancer is discovered at an earlier stage. Within this market, the market for lymphatic cancer drugs is
expected to expand to JPY60.2bn in 2021 from JPY38.9bn in 2012.
Market for drugs for lymphatic malignancy(JPYbn)Anticancer agents
Breast cancer
Lymphatic malignancy

2012
769.1
119.5
38.9

YoY
105.0%
112.4%
111.5%

2021 (Est.)
1,061.4
199.4
60.2

Growth (2021/2012)
138.0%
166.9%
154.8%

Source: Fuji Keizai Groupwww.sharedresearch.jp

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SymBio Pharmaceuticals ＞ Market and value chain

LAST UPDATE【2016/6/13】

Treakisym market potential and patient population
The company estimates that the number of patients being treated for relapsed or refractory low-grade NHL in Japan is
4,700. Treakisym sales reached JPY4.8bn (+10.3%) in FY12/15.
The company estimates that the number of Japanese patients receiving first-line treatment for low-grade NHL and MCL isabout 7,100 (phase II completed); the number of patients with relapsed or refractory aggressive NHL is about 6,700(phase II completed). Japanese patients with CLL is estimated to be about 700 (phase II ongoing). The estimate for total
number of users and potential users of Treakisym: 19,200.
Treakisym indications and number of patients
Condition

Patients

Progress

Notes

Relapsed or refractory low-grade NHL,
relapsed or refractory MCL

4,700

Approval granted

Sales: JPY4.8bn(FY12/15)

First-line low-grade NHL, first-line MCL

7,100

Clinical trials underway

Apply for marketing approval

Relapsed or refractory intermediate- or
high-grade NHL

6,700

Clinical trials underway

Consultation on application underway

CLL

700

Clinical trials underway

Apply for marketing approval

Source: Shared Research based on company data.
*Sales based on NHI prices.

Drugs competing with Treakisym
As of February 2015, these include rituximab and ibritumomab tiuxetan. Immunochemotherapy (the combination of
immunotherapy and chemotherapy drugs) is often used to treat B-cell lymphatic malignancies.

Rituximab (product name: Rituxan)
The drug, co-developed by the US companies IDEC Pharmaceuticals and Genentech, Inc. received US approval in
November 1997 as the world’s first monoclonal antibody.
Rituxan consists of a portion of both mouse antibody and IgG, a human antibody. It attaches itself to the CD20 antigen
that appears on B cells in the body and fights tumors through complement-dependent cytotoxicity and antibody‐dependent cell‐mediated cytotoxicity effects (source: Chugai, Zenyaku Kogyo).
In Japan, Zenyaku Kogyo and Chugai have been jointly selling the drug since September 2001. Chugai’s Rituxan sales
were JPY29.0bn in 2015.

Ibritumomab tiuxetan (product name: Zevalin)
Like Rituxan, the antibody drug Zevalin targets CD20 antigen on B cells. It combines the antibody with a radioactive
substance and attacks B cells with radiation. The treatment is only available at medical institutions authorized to handle
radioactive elements.
Zevalin was approved in January 2008 as a treatment for refractory lymphatic cancer (low-grade B-cell NHL). It is sold by
Fujifilm RI Pharma Co., Ltd., a subsidiary of Fujifilm Holdings Corporation.

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SymBio Pharmaceuticals ＞ Market and value chain

LAST UPDATE【2016/6/13】

MDS patients, drugs
Market potential and number of patients
MDS patient population estimated at 11,000
A high proportion of people aged 60 or older suffer from MDS. The number of patients totaled 9,000 in 2008, with 2,781
deaths from the disease according to Japan’s Ministry of Health, Labour and Welfare (MHLW). SymBio estimates that there
are currently about 11,000 MDS patients in Japan amid a larger elderly population. Even though the number of patients
continues to rise, there is a high unmet medical need in Japan with no effective treatment available.
Rigosertib indications and number of patients
Condition

Patients

Low-risk MDS

7,800

High-risk MDS

3,200

Source: Shared Research based on company data.

Drugs competing with rigosertib
According to the company, as of February 2016, Nippon Shinyaku Co., Ltd.’s Vidaza is the only IV drug approved in Japanfor the main indication of MDS.

Azacitidine (product name: Vidaza)
Vidaza, developed by Pharmion Corporation (now Celgene Corporation) in the US, is a treatment for first-line
intermediate and higher-risk MDS. Nippon Shinyaku Co., Ltd. signed a license agreement with Pharmion in 2006 to sellthis drug in Japan, obtaining marketing approval in January 2011 following the completion of domestic clinical trials.
In addition to killing cancerous cells, azacitidine inhibits DNA methylation. It becomes effective after use for three to six
months, with bone marrow suppression as the main side effect (a decline in white blood cells and platelets). However,while the use of hypomethylating agents such as azacitidine and decitabine (Dacogen) in the treatment of MDS has
improved the outcome of patients who tend to have very poor survival, about half of MDS patients do not respond,
progress, or relapse at different times after their response on these HMAs, followed by an extremely poor prognosis.
According to Nippon Shinyaku, Vidaza is the only approved drug in Japan for the first-line treatment of higher-risk MDS,
with no effective treatment available once patients treated with Vidaza relapse. Nippon Shinyaku booked Vidaza sales of
JPY10.8bn in FY03/15 (+11.6% YoY) and expects sales of JPY12.0bn in FY03/16.

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SymBio Pharmaceuticals ＞ Historical performance

LAST UPDATE【2016/6/13】

Historical performance
FY12/15 results
FY12/15 sales totaled JPY1.9bn (-1.1% YoY) due to domestic and overseas sales of SyB L-0501 (Treakisym).
Treakisym domestic sales rose 24.0% YoY, but overseas sales fell 76.1% on factors including the earlier booking of ordersin Korea in FY12/14.
SG&A expenses rose 71.3% YoY to JPY3.1bn due to expenses incurred for clinical trials for oral and intravenous rigosertib
and Treakisym, and the booking of R&D expenses of JPY2.0bn (+162.8%) in conjunction with the in-licensing expenses
for SyB P-1501 (IONSYS for post-operative patient-controlled analgesia) and “other” SG&A expenses of JPY1.1bn (+4.2%).
As a result, operating loss totaled JPY2.6bn (versus a loss of JPY1.3bn the preceding year). The company also reported arecurring loss of JPY2.6bn (JPY1.1bn loss) due to non-operating expenses of JPY96mn (mainly on forex losses of JPY86mn).
Net loss totaled JPY2.6bn (JPY1.1bn loss the preceding year).
Progress towards FY12/16 targets is as follows.

Domestic
Treakisym (SyB L-0501; anticancer agent; generic name: bendamustine hydrochloride)The company markets the anticancer agent Treakisym in Japan through its business partner, Eisai Co., Ltd. (TSE1: 4523)
for the indications of refractory or relapsed low-grade non-Hodgkin’s lymphoma (NHL) and mantle cell lymphoma (MCL).
Sales through Eisai increased as expected. NHI price-based sales rose 10.3% YoY.
Phase II clinical trial of Treakisym for the first-line treatment of low-grade NHL and MCL had already been completed andthe company submitted a new drug application (NDA) to Japan’s Pharmaceuticals and Medical Devices Agency (PMDA)
in December 2015. Meanwhile, in Europe, review of the application by Astellas Pharma is under way by European
authorities.
Regarding the phase II clinical trial for chronic lymphocytic leukemia (CLL), the company filed an NDA in December 2015.
Treakisym was designated as an orphan drug (drug for the treatment of rare diseases) for CLL in June 2012, and the
Evaluation Committee on Unapproved or Off-Labeled Drugs with High Medical Need has also submitted a development
request to the company.
In addition to the 100mg dosage of Treakisym, SymBio Pharmaceuticals also filed in December 2015 for approval of asmaller 25mg dosage as an amount that could actually be used at medical facilities.
SymBio is still considering applying for approval for use of the drug for relapsed or refractory aggressive NHL.
Rigosertib (SyB L-1101 [IV]/SyB C-1101 [oral]; anticancer agent)
The company is conducting a domestic phase I clinical trial for the intravenous (IV) form of rigosertib in relapsed or
refractory higher-risk myelodysplastic syndromes (MDS), a hematological malignancy. Patient enrollment was completed
in January 2015, and the trial was completed in October 2015.

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LAST UPDATE【2016/6/13】

Onconova Therapeutics, Inc., the U.S. licensor, is currently conducting a global Phase III trial and SymBio Pharmaceuticals
started the Japan trial in December 2015. The global Phase III trial addresses higher risk MDS patients who do not respondto treatment with hypomethylating agents (HMAs), the current standard of care (“Primary HMA Failure”) and is under
way at clinical trial sites in more than ten countries worldwide.

SyB P-1501, a post-operative patient-controlled analgesia
In October 2015 SymBio reached an in-licensing agreement with The Medicines Company (through its wholly owned
subsidiary Incline Therapeutics) for the development and commercialization of SyB P-1501, a post-operative
patient-controlled analgesia known as IONSYS in the US. SymBio acquired exclusive development and marketing rights forJapan. Preparations are under way to start a domestic phase III clinical trial in 2016.

Overseas
The company marketed Treakisym in Korea, Taiwan, and Singapore. Product sales were mostly in line with targets.

Q3 FY12/15 results
Sales for Q3 FY12/15 totaled JPY1.3bn (-1.2% YoY) due to domestic and overseas sales of SyB L-0501 (Treakisym).
Overall Treakisym sales fell 1.2% YoY. Though domestic sales of Treakisym increased 6.1% YoY, overseas sales declined
due to shipments having been frontloaded in FY12/14.
SG&A expenses came to JPY1.4bn (+4.7% YoY), including research and development expenses worth JPY598mn (+9.7%).
These expenses mainly covered clinical trials for additional SyB L-0501 indications and costs pertaining to preparing the
New Drug Application (NDA) for submission, as well as clinical trials for SyB L-1101 (intravenous formulation) and SyB
C-1101 (oral formulation), and preparation for the next phase of clinical trials. Other SG&A expenses came to JPY785mn(+1.3%).
As a result, operating loss totaled JPY988mn (Q3 FY12/14: loss of JPY967mn). The company also reported a recurring lossof JPY1.1bn (Q3 FY12/14: loss of JPY941mn), owing to non-operating expenses of JPY82mn, mainly from forex losses of
JPY74mn. Net loss totaled JPY1.1bn (Q3 FY12/14: loss of JPY944mn)

Domestic
Treakisym (SyB L-0501; anticancer agent; generic name: bendamustine hydrochloride)The company markets the anticancer agent Treakisym in Japan through its business partner, Eisai Co., Ltd. (TSE1: 4523)
for the indications of refractory or relapsed low-grade non-Hodgkin’s lymphoma (NHL) and mantle cell lymphoma (MCL).
Sales through Eisai increased as expected.
SymBio completed the phase II clinical trial of Treakisym for the first-line treatment of low-grade NHL and MCL in February
2014. Along with the regulatory approval process for the application submitted by Astellas Pharma Europe Ltd. (aEuropean subsidiary of Astellas Pharma Inc.; TSE1: 4503) in the European Union, the company is also continuing toprepare the New Drug Application (NDA) for submission in Japan, having entered preliminary consultations with thePharmaceuticals and Medical Devices Agency (PMDA).
The company completed patient enrollment for a phase II clinical trial for chronic lymphocytic leukemia (CLL) in Octoberwww.sharedresearch.jp

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2014, and completed the trial in October 2015. It plans to file a Supplemental New Drug Application (sNDA) for
marketing approval in Q1 FY12/16.. Treakisym was designated as an orphan drug (drug for the treatment of rare diseases)
for CLL in June 2012, and the Evaluation Committee on Unapproved or Off-Labeled Drugs with High Medical Need has
also submitted a development request to the company.
SymBio is still considering applying for approval for use of the drug for relapsed or refractory aggressive NHL.

Rigosertib (SyB L-1101 [IV]/SyB C-1101 [oral]; anticancer agent)
The company is conducting a domestic phase I clinical trial for the intravenous (IV) form of rigosertib in relapsed or
refractory higher-risk myelodysplastic syndromes (MDS), a hematological malignancy. Patient enrollment was completed
in January 2015, and tests were completed in October 2015.
Onconova Therapeutics, Inc., the U.S. licensor, is currently conducting a global Phase III trial for higher risk MDS patients
who do not respond to treatment with hypomethylating agents (HMAs), the current standard of care (“Primary HMA
Failure”), at clinical trial sites in more than ten countries worldwide. Following its completion of the domestic Phase I
clinical trial, SymBio also decided to participate in the global clinical trial in October 2015.
As for SyB C-1101 (oral formulation, or Oral rigosertib), the company’s domestic Phase I clinical trial for the target
indication of higher risk MDS was completed in June, 2015. The company plans to continue clinical trials for thedevelopment of Oral rigosertib in combination with azacitidine for higher risk MDS, as well as for lower risk
transfusion-dependent MDS, and is considering participating in the global clinical trial to be conducted by Onconova.

Ionsys (fentanyl iontophoretic transdermal system)
In October 2015, the company concluded a licensing agreement with The Medicines Company for development andcommercialization of Ionsys, a drug system for post-operative patient-controlled pain management. The company
obtained exclusive development and marketing rights in Japan, and plans to initiate a domestic phase III study in 2016.

Overseas
The company marketed Treakisym in Korea, Taiwan, and Singapore. Product sales were mostly in line with targets.

Q2 FY12/15 results
Sales for Q2 FY12/15 totaled JPY976mn (+0.1% YoY) due to domestic and overseas sales of SyB L-0501 (Treakisym).
Overall Treakisym sales rose 1.7% YoY. Though domestic sales of Treakisym increased 11.6% YoY, overseas sales declined
51.2% YoY. Shipments to South Korea totaled JPY273mn, but this was mainly because shipments had been frontloaded in
FY12/14. Excluding this impact, overall product shipments rose 30% YoY.
SG&A expenses came to JPY931mn (+4.2% YoY), including research and development expenses worth JPY404mn(+9.0%), mainly for clinical trials for SyB L-1101 (intravenous formulation) and SyB C-1101 (oral formulation), and other
SG&A expenses worth JPY527mn (+0.7%).
As a result, operating loss totaled JPY648mn (Q2 FY12/14: loss of JPY646mn). The company also reported a recurring lossof JPY674mn (Q2 FY12/14: loss of JPY713mn), owing to non-operating expenses of JPY35mn, mainly from forex losses ofwww.sharedresearch.jp

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JPY29mn. Net loss totaled JPY676mn (Q2 FY12/14: loss of JPY715mn)

Domestic
Treakisym (SyB L-0501; anticancer agent; generic name: bendamustine hydrochloride)The company markets the anticancer agent Treakisym in Japan through its business partner, Eisai Co., Ltd. (TSE1: 4523)
for the indications of refractory or relapsed low-grade non-Hodgkin’s lymphoma (NHL) and mantle cell lymphoma (MCL).
Sales through Eisai increased as expected.
SymBio completed the phase II clinical trial of Treakisym for the first-line treatment of low-grade NHL and MCL in February
2014. The company is preparing the New Drug Application (NDA) for submission in Japan. The company will apply for
approval as soon as the regulatory approval process for the application submitted by Astellas Pharma Europe Ltd. (aEuropean subsidiary of Astellas Pharma Inc.; TSE1: 4503) is completed in the European Union.
The company completed patient enrollment for a phase II clinical trial for chronic lymphocytic leukemia (CLL) in October
2014. It plans to complete the trial and file an sNDA for marketing approval as soon as possible. Treakisym was designatedas an orphan drug (drug for the treatment of rare diseases) for CLL in June 2012.
The company is still considering applying for approval for use of the drug for relapsed or refractory aggressive NHL.
Rigosertib (SyB L-1101 [IV]/SyB C-1101 [oral]; anticancer agent)
The company is conducting a domestic phase I clinical trial for the intravenous (IV) form of rigosertib in relapsed or
refractory higher-risk myelodysplastic syndromes (MDS), a hematological malignancy. Patient enrollment was completed
in January 2015.
Onconova Therapeutics, Inc., the U.S. licensor, plans to conduct a global Phase III trial for higher risk MDS patients who
do not respond to treatment with hypomethylating agents (HMAs), the current standard of care (“Primary HMA Failure”),
with clinical trial sites in more than ten countries worldwide. SymBio is considering its participation in the global clinical
trial which is planned to begin in 2H of 2015 after completion of the domestic Phase I clinical trial.
As for SyB C-1101 (oral formulation, or Oral rigosertib), the company’s domestic Phase I clinical trial for the target
indication of higher risk MDS was completed in June, 2015. The company plans to continue clinical trials for thedevelopment of Oral rigosertib in combination with azacitidine for higher risk MDS, as well as for lower risk transfusion
dependent MDS, and is considering participating in the global clinical trial to be conducted by Onconova.

Overseas
The company marketed Treakisym in Korea, Taiwan, and Singapore. Product sales were mostly in line with targets.

FY12/14 results
Sales for FY12/14 totaled JPY2.0bn (+27.6% YoY) due to domestic and overseas shipments of Treakisym.
Sales of Treakisym were JPY1.9bn (+35.5% YoY). Domestic sales totaled JPY1.5bn (+12.9% YoY), while overseas sales were
JPY472mn (up 3.6x). The significant increase in overseas sales was because the company added one year of inventory(JPY273mn) in South Korea following a change of manufacturing location.

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LAST UPDATE【2016/6/13】

Milestone revenues were JPY15mn (-85% YoY), which the company booked on the approval of Treakisym for theindication of relapsed or refractory low-grade NHL in Korea.
SG&A expenses were JPY1.8bn (-8.4% YoY), including R&D expenses of JPY774mn (-26.5% YoY). Despite clinical trial
expenses for Treakisym and the oral and IV forms of rigosertib, overall R&D expenses were down year-on-year becauseclinical trials for additional indications for Treakisym wound down. Other SG&A expenses totaled JPY1.1bn (+1.6% YoY).
As a result, operating loss totaled JPY1.3bn (FY12/13: loss of JPY1.7bn). The company also reported a recurring loss of
JPY1.1bn (FY12/13: loss of JPY1.6bn). The recurring loss narrowed owing to non-operating gains of JPY215mn, including
forex gains of JPY189mn, JPY16mn in interest received, and JPY8mn from interest on investment securities. Net loss totaled
JPY1.1bn (FY12/13: loss of 1.6bn).

Domestic
Treakisym
SymBio completed the phrase II clinical trial of Treakisym for the first-line treatment of low-grade NHL and MCL in
February 2014. The company is analyzing and evaluating data from the trial as it prepares to file a supplemental new drug
application (sNDA) for marketing approval. Astellas Pharma GmbH (“Astellas”; European subsidiary of Astellas Pharma
Inc.; TSE1: 4503) has already applied for approval in Europe.
The company completed the patient enrollment for a phase II clinical trial for CLL in October 2014. Treakisym wasdesignated as an orphan drug (drug for the treatment of rare diseases) for CLL in June 2012.
The company is still considering applying for approval for use of the drug for relapsed or refractory aggressive NHL.

Rigosertib
The company is conducting a domestic phase I clinical trial for the intravenous (IV) form of rigosertib in relapsed or
refractory higher-risk myelodysplastic syndromes (MDS).
In February 2014, licensor Onconova Therapeutics, Inc. (“Onconova”; Nasdaq: ONTX) announced the results of its phase
III ONTIME clinical trial in patients with higher-risk MDS. Compared with best supportive care (BSC), the clinical trial did
not show a statistically significant improvement in the overall survival period (primary outcome measures). However,group analysis showed a statistically significant difference in the survival period for patients whose condition had
deteriorated or those who had not responded to previous treatment using hypomethylating agents (HMAs).
Onconova held discussions with regulatory agencies in the US and Europe regarding the possibility of seeking approval
based on the results of the phase III trial. The regulators have confirmed that patients who had not responded to HMAs
would require a new treatment. In response, the company announced that it would develop the new treatment. SymBio
will continue with its current phase I clinical trials in Japan. Post-phase I development in Japan will depend on thedevelopment in the US and Europe.
A domestic phase I clinical trial using the oral form of rigosertib is also underway in Japan for the treatment of high-risk
MDS patients. The patient enrollment for the trial was completed in August 2014.

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Overseas
Bendamustine (domestic product name: Treakisym) was approved in South Korea for the additional indication of relapsed
or refractory low-grade NHL in June 2014. The product is now sold by Eisai’s Eisai Korea Inc. unit. The subsidiary also sells
the drug for two other indications—CLL and multiple myeloma (MM).
In Taiwan, the drug is being marketed by InnoPharmax Inc. In Singapore, Eisai (Singapore) Pte. Ltd. markets the drug.
Overseas sales increased by 2.2 times the estimate after the company added one year of inventory in South Korea inconnection with a factory alignment.

FY12/13 results
Treakisym sales in Japan and other parts of Asia were JPY1.5bn (-21.6% YoY) due to adjustments in distribution inventory.
Sales to end users were JPY4.2bn (+7.4% YoY). However, Treakisym sales totaled JPY1.4bn (-26.8% YoY) due toadjustments in Treakisym distribution inventory at Eisai.
The company earned JPY100mn in royalty revenue (no such revenue was posted a year earlier). The company received
milestone payments associated with the start of the phase II clinical trial for CLL.
The company posted R&D costs of JPY1.1bn (-26.8% YoY) due to clinical trials for additional Treakisym indications, andrigosertib indications. R&D costs declined from a year earlier as development for Treakisym nears completion. With otherexpenses totaling JPY946mn (+10.6% YoY), total SG&A expenses were JPY2.0bn (-12.9% YoY).
Operating loss was JPY1.7bn (almost unchanged from a year earlier). There were non-operating expenses of JPY35mn
associated with payment of fees and stock issuance costs. The company posted a non-operating profit of JPY114mn due
to currency gains. Consequently, recurring loss was JPY1.6bn (a loss of JPY1.7bn a year earlier), and net loss was 1.6bn (aloss of JPY1.7bn a year earlier).

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SymBio Pharmaceuticals ＞ Historical performance

LAST UPDATE【2016/6/13】

Income statement
FY12/15

FY12/09

FY12/10

FY12/11

FY12/12FY12/13

FY12/14(JPYmn)

Par.

Par.

Par.

Par.

Par.

Par.

Par.

Total Sales

1,191

1,450

1,883

1,955

1,532

1,955

1,933

YoY

-26.9%

21.7%

29.8%

3.9%

-21.6%

27.6%

-1.1%

-

238

1,224

1,362

1,214

1,428

1,350

Gross Profit

1,191

1,212

658

593

318

527

583

GPM

100.0%

83.6%

35.0%

30.3%

20.8%

26.9%

30.2%

Income Statement

CoGS

1,399

1,825

2,725

2,293

1,999

1,830

3,135

SG&A / Sales

117.5%

125.8%

144.8%

117.3%

130.4%

93.6%

162.1%

Operating Profit

-208

-613

-2,067-1,700-1,681-1,303-2,552

-

-

-

-

17

SG&A

YoY

-

-

-

-

-

Non-Operating Income

20

13

56

7

114

215

Non-Operating Expenses

26

38

85

37

35

22

96

-214

-638

-2,095-1,729-1,601-1,110-2,630

YoY

-

-

-

-

-

-

-

RPM

-

-

-

-

-

-

-

-

-

-

-

-

2

3

Extraordinary Losses

-

0

5

0

-

3

1

Tax Charges

4

4

4

4

4

4

4

-

-

-

-

-

-

-

-218

-642

-2,105-1,733-1,605-1,116-2,632

YoY

-

-

-

-

-

-

-

Net Margin

-

-

-

-

-

-

-

OPM

Recurring Profit

Extraordinary Gains

Implied Tax Rate
Net Income

Source: Shared Research based on company data.
Figures may differ from company materials due to differences in rounding methods.

FY12/12
Sales were JPY2.0bn (+3.9% YoY). Product sales were JPY2.0bn (+19.8% YoY) due to an increase in Treakisym sales to end
users, which totaled JPY3.9bn (+16.2% YoY). The company did not receive any royalty revenue.
SG&A expenses were JPY2.3bn (-15.8% YoY). R&D costs totaled JPY1.4bn (-26.1% YoY), which included the cost ofclinical trials for additional Treakisym indications and rigosertib. The company, which made one-time payments for theacquisition of rigosertib a year earlier, did not make such payments, slashing R&D expenses.

FY12/11
Sales were JPY1.9bn (+29.8% YoY). Product sales were JPY1.6bn (+401.3% YoY). Sales of Treakisym to end users were
JPY3.4bn (JPY64mn in FY12/10). Royalty revenues were JPY250mn. The company received milestone payments associatedwith the start of domestic development of first-line low-grade non-Hodgkin’s lymphoma and mantle-cell lymphoma, plus
the marketing approval of Treakisym in South Korea and Taiwan.
SG&A expenses were JPY2.7bn (+49.4% YoY). R&D costs were JPY1.9bn (+73.9% YoY). The company conducted clinical
trials for additional Treakisym indications and SyB D-0701 (antiemetic transdermal patch for RINV). The company also
made one-time payments for the acquisition of rigosertib rights (both IV and oral).

FY12/10
Sales were JPY1.5bn (+21.7% YoY). Product sales were JPY326mn (no product sales a year earlier). The company began topost product sales as it started to sell Treakisym in Japan. Royalty revenue totaled JPY1.1bn. The company received

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SymBio Pharmaceuticals ＞ Historical performance

LAST UPDATE【2016/6/13】

milestone payments from Eisai associated with the marketing approval of Treakisym in Japan, marketing approval of
Symbenda in Singapore, and the start of the phase II clinical trial for multiple myeloma in Japan.
SG&A expenses were JPY1.8bn (+30.4% YoY). R&D costs were JPY1.1bn (+36.9% YoY), which included spending forclinical trials, preparation for additional Treakisym indications and the clinical trial for SyB D-0701 (antiemetic transdermal
patch for RINV). The company made one-time payments for SyB 0702 (HSP32 inhibitor).

FY12/09
Sales were JPY1.2bn (-26.9% YoY), all from royalty revenues. The pivotal phase II clinical trial for Treakisym targeting
low-grade NHL and MCL patients who had received prior treatment was completed in March 2009. The company
submitted an application for accelerated marketing approval of Treakisym in October 2009 (receiving orphan drug
designation with 10-year marketing exclusivity once approved).
SG&A expenses were JPY1.4bn (-6.5% YoY). R&D costs were JPY817mn (-5.9% YoY). The company sought to develop its
product pipeline with emphasis on phase II clinical trials for additional indications of Treakisym, and phase I clinical trial
for the combination therapy of Treakisym plus rituximab in first-line low-grade NHL and MCL.

FY12/08
Sales were JPY1.6bn (no sales for FY12/07). All sales were comprised of royalty revenue. In August 2008, the company
entered into a license agreement with Eisai for the co-development and exclusive marketing right to Treakisym in Japan.
SymBio received one-time payments for the agreement. SG&A expenses: JPY1.5bn. R&D expenses: JPY868mn.

Historical forecast accuracy
Initial CE vs. results(JPYmn)Sales (Initial CE)
Sales (Results)
Initial CE versus Results

FY12/09

FY12/10

FY12/11

FY12/12FY12/13

FY12/14

Par.

Par.

Par.

Par.

Par.

Par.

FY12/15
Par.

-

-

1,933

2,338

1,927

1,785

1,785

-

-

1,883

1,955

1,532

1,955

1,933

-

-

-2.6%

-16.4%-20.5%

9.5%

8.3%

Operating Profit (Initial CE)---2,351-1,625-1,889-1,654-1,654

Operating Profit (Results)---2,067-1,700-1,681-1,303-2,552

-

-

-

-

-

-

-

-

-

-2,398-1,652-1,922-1,650-1,650-2,630Initial CE versus Results
Recurring Profit (Initial CE)
Recurring Profit (Results)---2,095-1,729-1,601-1,110Initial CE versus Results

-

-

-

-

-

-

-

Net Income (Initial CE)---2,407-1,656-1,926-1,654-1,654Net Income (Results)---2,105-1,733-1,605-1,116-2,632

Initial CE versus Results

-

-

-

-

-

-

-

Source: Shared Research based on company data.
Figures may differ from company materials due to differences in rounding methods.

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LAST UPDATE【2016/6/13】

Balance sheet
Balance Sheet(JPYmn)FY12/09

FY12/10

FY12/11

FY12/12FY12/13

FY12/14

FY12/15

Par.

Par.

Par.

Par.

Par.

Par.

Par.
4,261

AssetsCash and Equivalents

3,902

2,314

4,559

4,540

6,163

5,692

Marketable securities

219

1,701

1,953

300

1,100

899

0

Accounts Receivable

-

6

162

148

273

301

Inventories

-

-

207

165

245

133

125

Other Current Assets

97

191

297

268

245

181

131

Total Current Assets

4,218

4,213

7,178

5,421

7,634

7,290

4,827

Buildings

3

3

2

3

2

22

22

Equipment, Plant

11

19

15

11

6

27

31

Total Tangible Fixed Assets

13

22

17

14

9

49

53

Total Other Fixed Assets

27

27

48

57

37

49

53

2

1

10

8

6

62

51

Software
Other
Total Intangible Assets
Total Fixed Assets
Total Assets

-

-

3

3

2

4

1

2

1

13

11

8

66

52

42

50

78

82

53

164

158

4,261

4,263

7,256

5,502

7,687

7,454

4,984

306

320

207

143

184

Liabilities
Accounts Payable
Accrued Amount Payable

-

1

309

330

182

124

278

196

Short Term Debt

-

-

-

-

-

-

-

Other Current Liabilities

23

52

59

73

44

39

47

Total Current Liabilities

205

178

646

599

251

488

551

Long Term Debt

-

-

-

-

-

-

-

Other Fixed Liabilities

2

2

5

4

3

2

2

Total Long Term Liabilities

2

2

5

4

3

2

2

Total Interest Bearing Debt

-

-

-

-

-

-

-

Total Liabilities

207

180

651

602

254

490

552

Shareholder Equity (Net Assets)

4,060

4,083

6,606

4,873

7,336

6,764

4,132

Issued Capital

3,378

3,711

6,025

6,025

8,059

8,331

8,331

Reserves

3,348

3,681

5,995

5,995

8,029

8,301

8,301

Retained Earnings-2,666-3,309-5,413-7,146-8,752-9,868-12,500

-

-

-

27

97

200

300

4,054

4,083

6,606

4,900

7,433

6,964

4,432

Working Capital

-

5

61

-17

125

212

114

Interest Bearing Debt

-

-

-

-

-

-

-

Net Debt (Net Cash)-3,902-2,314-4,559-4,540-6,163-5,692-4,261

Subscription Rights to Shares
Total Shareholder Equity (Net Assets)

Source: Shared Research based on company data.
Figures may differ from company materials due to differences in rounding methods.

Assets
SymBio does not have its own manufacturing facilities, clinical facilities or salesforce: the company outsourcesmanufacturing, clinical development, and sales and marketing. Therefore, most of the company’s assets are cash anddeposits.

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Within current assets, inventory assets consist of Treakisym merchandise inventory.

Liabilities
The company does not have interest-bearing liabilities such as loans. Booked liabilities are accounts payable and arrears.

Net assets
Capital and capital reserves are increasing as a result of fundraising efforts. However, the deficit in retained earnings is
expanding as the company continues to post losses.

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Cash flow statement
FY12/09

FY12/10

FY12/11

FY12/12FY12/13

FY12/14(JPYmn)

Par.

Par.

Par.

Par.

Par.

Par.

Par.

Operating Cash Flow (1)

-211

-754

-2,074-1,659-1,677-1,266-2,272

Investment Cash Flow (2)

-4

-116

-117

-411

-1,332314

1,489

Free Cash Flow (1+2)

-215

-870

-2,191-2,069-3,010

-952

-783

2,963

663

4,611

-1

4,057

544

-3

Depreciation & Amortization (A)

4

7

8

9

8

13

24

Capital Expenditures (B)

-3

-14

-12

-3

-

-109

-24

Working Capital Changes (C)

-

5

56

-78

142

86

-98

Simple FCF (NI + A + B - C)

-217

-655

-2,165-1,650-1,739-1,298-2,534

Cash and Equivalents (year-end)

4,121

3,916

6,311

4,240

5,294

5,092

4,261

Cash Flow Statement

Financial Cash Flow

FY12/15

Source: Shared Research based on company data.
Figures may differ from company materials due to differences in rounding methods.

Cash flow from operations
Cash flow from operations almost matches the company’s current net loss before tax.

Cash flow from investment activities
Purchases of tangible fixed assets and intangible assets are limited as SymBio outsources manufacturing, clinicaldevelopment, and sales and marketing. But investment in time deposits and securities meant outflow from investment
activities widened in FY12/12 and FY12/13. SymBio booked an inflow of JPY1.5bn in FY12/15 due to payments from time
deposits and the redemption of securities.

Cash flow from financing activities
The company has reported a series of inflows from financing activities. As the table below shows, the company has raised
capital on multiple occasions in order to finance its operations in the face of continuous operating losses.

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Main sources of funding
Date

Change inTotal sharessharesoutstanding
outstanding

Change incapital/reserves(JPYmn)Total
capital/reserves Method(JPYmn)Mar. 2009

7,404

66,017888

4,643

Paid-in third-party allotment

Nov. 2011

8,334

90,268500

6,104

Paid-in third-party allotment

Dec. 2009

9,553

100,651

573

6,727

Paid-in third-party allotment

Feb. 2011

11,032

122,769

772

8,164

Paid-in third-party allotment

Feb. 2011

17,368140,137

1,216

9,380

Paid-in third-party allotment

Oct. 2011

5,100,000

19,130,900

2,628

12,019Paid-in public offering (price determined by the bookbuilding process)Jan.-Dec.
2013

3,921,257

23,052,157

1,244

13,263

Exercise of stock options attached to convertible
corporate bonds and other stock options

Dec. 2013

6,720,200

29,772,357

2,504

15,767

Paid-in public offering (price determined by the bookbuilding process)Dec. 2014

1,756,666

32,390,923

544

16,632

Exercise of stock options attached to convertible
corporate bonds and other stock options

Source: Shared Research based on company data.

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SymBio Pharmaceuticals ＞ Other information

LAST UPDATE【2016/6/13】

Other information
History
SymBio was established in March 2005 by Fuminori Yoshida, former Corporate Vice President of Amgen Inc., andfounding President and CEO of the Japanese subsidiary, Amgen Japan. Mr. Yoshida’s desire to address the unmet medical
needs of patients in underserved markets often overlooked by the pharmaceutical industry due to limited patientnumbers inspired him to create SymBio Pharmaceuticals.
In 2013, Amgen Inc. was the largest biopharmaceutical company in the world by revenue. It was established in 1980 in Thousand Oaks,
California as Applied Molecular Genetics. Mr. Yoshida established Amgen Japan in May 1993, serving as President and CEO for 12 years prior tofounding SymBio Pharmaceuticals in March 2005. In February 2008, Takeda Pharmaceutical Co. Ltd. acquired Amgen Japan.

After its establishment, SymBio obtained financing totaling JPY1bn from Daiichi Pharmaceutical Co., Ltd. (now Daiichi
Sankyo, Inc.; TSE1: 4568), Medical & Biological Laboratories Co., Ltd. (JASDAQ: 4557), EPS Corporation (TSE1: 4282),
and SBI Holdings, Inc. (TSE1: 8473). The company used the cash raised to in-license its first drug candidate,bendamustine hydrochloride, from Astellas Pharma GmbH in December 2005 with the exclusive right to develop andcommercialize the drug in Japan.
After the global financial crisis of September 2008, the company experienced a shortage of capital as Treakisym wasadvancing in the clinic. Mr. Yoshida visited at least 50 venture capital firms in Japan and elsewhere in December 2008,
eventually raising JPY1.5bn in capital from Cephalon, Inc. (acquired by Teva Pharmaceutical Industries Ltd. (NASDAQ:TEVA) in October 2011).
SymBio obtained Japanese marketing and manufacture approval for Treakisym in October 2010 and began domestic sales
in December of that year.
As of February 2016, Treakisym for relapsed or refractory low-grade NHL and MCL is the company’s mainstay product.
Clinical trials are also under way toward attaining domestic approval for additional Treakisym indications, anti-cancer drug
rigosertib for myelodysplastic syndromes, and SyB P-1501, a patient-controlled analgesia for pain management.

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Company history

Date

Details

March 2005

SymBio Pharmaceuticals Limited established with JPY30mn in capital.

December 2005

License Agreement finalized with Astellas Pharma GmbH for SyB L-0501 (bendamustine)development and commercialization rights in Japan.

March 2006

Manufacturer's License (packaging, labeling and storage) obtained from Tokyo
Metropolitan Government (License #13AZ200010).

March 2007

Abeille Pharmaceuticals licenses SyB D-0701 (granisetron patch) to SymBio
Pharmaceuticals for development & commercialization in Japan, China (HK), Taiwan,
Korea and Singapore.

March 2007

License Agreement finalized with Astellas Deutschland GmbH for SyB L-0501(bendamustine) development & commercialization rights in China (HK), Taiwan, Korea
and Singapore.

August 2008

License Agreement finalized with Eisai Co., Ltd. for co-development andcommercialization rights of SyB L-0501 (bendamustine) in Japan.

March 2009

SymBio Pharmaceuticals concludes Sublicense Agreement with Cephalon, Inc. fordevelopment and commercialization rights of bendamustine hydrochloride in China (HK).

May 2009

License Agreement finalized with Eisai Co., Ltd. for co-development andcommercialization rights of SyB L-0501 (bendamustine) in Korea and Singapore.

September 2010

SymBio Pharmaceuticals and Eisai launch SYMBENDA® (bendamustine) in Singapore forthe treatment of Low-grade Non-Hodgkin’s Lymphoma and Chronic Lymphocytic
Leukemia.

October 2010

SymBio Pharmaceuticals announces NDA Approval of TREAKISYM® (bendamustine) inJapan.

December 2010

SymBio Pharmaceuticals launches TREAKISYM® in Japan.

July 2011

Onconova and SymBio Pharmaceuticals complete License Agreement for SyB L-1101/SyB
C-1101 (rigosertib, a Phase Ⅲ stage multi-kinase inhibitor for Myelodysplastic
Syndromes).

October 2011

SymBio Pharmaceuticals launches Symbenda® (bendamustine hydrochloride) in Korea
for the treatment of Chronic Lymphocytic Leukemia and multiplemyeloma.

October 2011

Listed on Osaka Securities Exchange JASDAQ Growth Market.

February 2012

SymBio Pharmaceuticals launches Innomustine® (bendamustine hydrochloride) in
Taiwan for the treatment of Low-grade Non-Hodgkin's Lymphoma and Chronic
Lymphocytic Leukemia.

October 2015

SymBio obtained exclusive development and marketing rights to Ionsys (patientcontrolled analgesia system) in Japan from The Medicines Company (US).

Source: Company website

News and topics
February 2016
On February 8, 2016, the company announced that it had signed an agreement with Teikyo Heisei University to jointly
research and develop an innovative anti-cancer drug which uses the TTR1 nano-agonist molecule¹.

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Based on the agreement, the company will provide resources to implement preclinical and IND-enabling studies incollaboration with Teikyo Heisei University. SymBio also acquired the right to enter into an exclusive license agreementwith Teikyo Heisei University to globally develop and commercialize this innovative drug globally.
The team led by Dr. Isao Ishida, Professor of the Faculty of Pharmaceutical Sciences, Teikyo Heisei University, discoveredan antibody that acts against TRAIL-R1, which is an expression on the surface of cancer cells or cancer stem cells, andmodified it to impart more efficient anti-cancer activity (TTR1 nano-agonist). A drug delivery technique using an
expression system in Bifidobacterium² was developed that enables the TTR1 nano-agonist to act selectively on hypoxic
cancer tissue. The anti-cancer activity and safety of this new anti-cancer drug has been confirmed in animal models.
The impact of this agreement has been factored into the company’s FY03/16 forecast that will be released when it
announces FY12/15 results (February 10, 2016) and so will not have a significant impact on its FY12/16 earnings.

TTR1 nano-agonist¹: Member of the tumor necrosis factor (TNF) family that exerts its apoptotic activity in human cells when it trimerizes bybinding to its transmembrane receptors, TRAIL-R1 and TRAIL-R2. It is difficult to form a trimeric structure using conventionalanti-TRAIL-R1antibodies, and thus apoptosis-inducing ability is typically weak. Camelids (e.g. camels, alpacas, llamas) produce functional
antibodies devoid of light chains of which the single N-terminal domain is fully capable of antigen binding. These single-domain antibody
fragments (VHHs or sdAb) have several advantages for biotechnological applications: they are well expressed in microorganisms, have a highstability and solubility, and can penetrate tissues relatively easily. Trivalent anti-TRAIL-R1 single-domain antibodies (TTR1: an abbreviation for
Trivalent anti-TRAIL-R1) used in our collaboration have agonistic activities and induce apoptosis, thus we call them TTR1 nano-agonist(s).
Bifidobacterium²: Genus of Gram-positive bacteria, and are one of the major genera of bacteria that make up the colon flora in mammals, withprobiotic activity limited to anaerobic environments. Bifidobacterium strains are important probiotics and widely used in the food industry(e.g. yogurt). As many types of cancer (specifically solid tumors such as pancreatic cancer) grow in a hypoxic environment, intravenously
administered Bifidobacterium expressing the TTR1 nano-agonist molecule will selectively live in cancer tissue and effectively kill cancer cells via
TTR1 nano-agonist molecule expression.

On February 4, 2016, the company made an announcement concerning its application for approval of bendamustinehydrochloride in Europe.
SymBio Pharmaceuticals had applied for approval of manufacturing and marketing of its anticancer agent Treakisym(generic name: bendamustine hydrochloride) in Europe for the treatment of first-line low-grade non-Hodgkin’s
lymphoma (NHL) and mantle cell lymphoma (MCL). It received notice from Astellas Pharma GmbH (a European
subsidiary of Astellas Pharma Inc.) on February 2, 2016 that its application had been withdrawn on January 27, 2016.
The company is continuing with the regulatory approval process to receive approval for Treakisym domestically for thetreatment of first-line low-grade NHL and MCL. The company does not expect this event to affect its earnings forecasts.

December 2015
On December 28, 2015, the company announced the start of global phase III clinical trials for IV rigosertib to treat
relapsed or refractory higher-risk myelodysplastic syndromes.
SymBio Pharmaceuticals started global phase III clinical trials in Japan for the IV formulation of rigosertib to treat relapsed
or refractory higher-risk myelodysplastic syndromes. While SymBio will conduct the trials in Japan, its US partner

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Onconova Therapeutics will conduct the trial in the US and Europe. The company does not expect the start of clinical
trials to affect its FY12/15 earnings forecasts.

On December 24, 2015, the company announced that it had applied for additional indications of anti-cancer drug
Treakisym in CLL, as well as in first-line low-grade NHL and MCL. It also applied for approval for domestic manufacturingand marketing of small dose formulations of Treakisym.

Application for additional indication of Treakisym in CLL
On October 27, 2010, the company obtained approval for domestic manufacturing and marketing anti-cancer drug
Treakisym (generic: bendamustine) for treating relapsed or refractory low-grade non-Hodgkin’s lymphoma (NHL) andmantle cell lymphoma (MCL). It has applied for an additional indication, the treatment chronic lymphocytic leukemia(CLL). This drug has already been approved for the treatment of CLL in Europe and the US. It was designated as anorphan drug (drug for the treatment of rare diseases) to treat CLL in June 2012. In response to a request from the
Evaluation Committee on Unapproved or Off-Labeled Drugs with High Medical Need for its development, SymBio hasapplied for approval for the additional indication.

Application for additional indication of Treakisym as first-line treatment of low-grade NHL and MCL
The company applied for approval to add an indication of Treakisym as the first-line treatment of low-grade
non-Hodgkin’s lymphoma (NHL) and mantle cell lymphoma (MCL).

Application for approval to manufacture and market Treakisym in small dose formulations in Japan
Considering the appropriate dosage for clinical use, the company has applied for approval to manufacture and market
anti-cancer drug Treakisym in a 25mg vial.
The company does not expect these applications to impact its FY12/15 earnings.

On December 7, 2015, the company announced that it has started phase I clinical trials for the use of oral anticancer
agent rigosertib in combination with azacytidine for the treatment of higher-risk myelodysplastic syndrome (MDS).
The company has started phase I clinical trials in Japan for the use of the oral anticancer agent rigosertib in combination
with azacytidine (Vidaza®, sold in Japan by Nippon Shinyaku Co., Ltd.) for treatment of higher-risk MDS.
The company already completed phase I clinical trials on the monotherapy use of rigosertib in June 2015. Once the
combination clinical trials are complete, the company will consider participating in an international joint study for the
drug planned by its licenser, Onconova Therapeutics Inc. Onconova Therapeutics has already completed patient
enrollment for phase I/II clinical trials of oral rigosertib for the same indication, and was planning to announce results at
the American Society of Hematology meeting that started on December 5, 2015. The start of the new clinical study will
have no impact on the company’s FY12/15 earnings forecasts.

November 2015
On November 24, 2015, the company announced the approval of IONSYS® (fentanyl iontophoretic transdermal system)
in Europe.

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The company announced that The Medicines Company (MEDCO), with which it concluded a license agreement for
IONSYS® on October 2, 2015, received marketing authorization from the European Commission for IONSYS® to treat
postoperative pain in hospitalized patients on November 20, 2015.
IONSYS® was approved by the US Food and Drug Administration (FDA) on April 4, 2015, and was already being sold in
the US.
The company was preparing for early phase III clinical trials in Japan.

October 2015
On October 30, the company announced that it had completed phase I clinical trials to use anticancer agent rigosertib(intravenous form) for myelodysplastic syndrome (MDS).
The company plans to participate in global phase III clinical trials already being conducted by US-based Onconova
Therapeutics, Inc. (Nasdaq: ONTX) for higher-risk MDS patients whose condition had deteriorated or those who had not
responded to previous treatment using hypomethylating agents (HMAs). It intends to begin trials with Japanese patientsin 2015, and is targeting simultaneous approval in Japan, the US and Europe. SymBio does not expect completion of thephase I trial to impact its FY12/15 earnings.

On October 19, 2015, the company announced the completion of a phase II clinical trial for Treakisym in patients withchronic lymphocytic leukemia (CLL).
The company completed a domestic phase II clinical trial of anti-cancer drug Treakisym (generic: bendamustinehydrochloride) for patients with CLL, which it had been conducting in partnership with Eisai Co. Ltd. (TSE1: 4523). This
drug has been approved for the treatment of CLL in Europe and the US. In Japan, this drug was designated as an orphan
drug for the CLL indication in June 2012, and the Evaluation Committee on Unapproved or Off-Labeled Drugs with High
Medical Needs has submitted a development request to the company. Going forward, SymBio plans to submit anapplication for manufacturing and marketing approval in Japan in Q1 FY2016 using data from phase III clinical trials
conducted overseas. The company does not expect completion of the phase II trial to impact its FY12/15 earnings.

On October 5, 2015, the company announced a strategic partnership for IONSYS® (fentanyl iontophoretic transdermal
system).
The Medicines Company (MEDCO) and SymBio concluded a development and commercialization license for IONSYS®
(fentanyl iontophoretic transdermal system) on October 2, 2015.
The partnership includes an agreement granting SymBio an exclusive license in Japan to develop and commercialize
IONSYS. Sales of IONSYS have started in the US after it was approved by the US Food and Drug Administration (FDA) on
April 30, 2015, for the short-term management of acute postoperative pain in adult patients requiring opioid analgesia in
the hospital. On September 25, 2015, the Committee for Medicinal Products for Human Use (CHMP) of the European
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approval is anticipated in the near future. In Japan, a phase I study for IONSYS targeting healthy Japanese patients has
been completed.
IONSYS is a patient-controlled analgesia (PCA) product that enables patients to push a button on a credit-card sized
device located on the arm or chest to dispense a certain dose of fentanyl (a synthetic opiate analgesic drug used tocontrol pain after anesthesia, cancer, or surgery, widely used at medical institutions in Japan) transdermally throughiontophoresis (a technique of introducing ionic drugs into the body by passing a weak electrical current through the skin)as needed for pain. Transdermally administered fentanyl is absorbed as fast as through intravenous administration, andhas analgesic effects. Patient count in Japan is estimated at 1mn per year, and currently standard administration is throughepidural or IV PCA pumps. As a needle-free alternative, IONSYS is anticipated to improve treatment satisfaction as it
lessens the physical and psychological burden on patients. It is also expected to offer stability and convenience for
medical institutions, decreasing the labor and costs required to manage electric pumps.
The company is developing the product with an aim to launch domestic phase III clinical trials from 2016 and receive
regulatory approval in 2019. SymBio expects to pay MEDCO an upfront payment and periodic milestones based on
development progress, and following product commercialization expects to pay commercial milestones and royalties inline with annual sales targets.
The effect of the upfront payment from this licensing agreement on FY12/15 earnings is expected to be negligible.

November 2014
On November 14, 2014, the company announced the issue of second series unsecured convertible bonds with
subscription rights to new shares, and series 34 subscription rights to new shares by third-party allotment.
The company expects to receive total funds of about JPY1.5bn, net of expenses. The company plans to use the funds for
expenses related to the development of new drug candidates between FY12/14 and FY12/16. As of November 13, 2014,
SymBio was negotiating license agreements for two to three new drug candidates with pharmaceutical companies in the
US and EU. It has based the amount of funding required on the expected cost of in-licensing these drug candidates.

Overview of the offering
Second series unsecured convertible bonds with subscription rights to new shares▶ Payment date:▶ Number of stock subscription rights:▶ Issue price of bonds:▶ Issue price of stock subscription rights:▶ Number of potential shares:▶ Total funding amount:▶ Conversion price:▶ Subscription and allocation method:

December 1, 2014
25 units
JPY20mn (JPY100 per JPY100 par value)
Gratis1.7mn
JPY500mn
JPY300Issued to Oak Capital Corporation via third-party allotment.

Series 34 subscription rights to new shares▶ Allotment date:www.sharedresearch.jp

December 1, 2014

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SymBio Pharmaceuticals ＞ Other information▶ Number of stock subscription rights:▶ Issue price:

LAST UPDATE【2016/6/13】

30,304 units
JPY10.4mn (JPY342 per unit)▶ Number of potential shares:▶ Total funding amount:

3.0mn
JPY1.0bn(JPY10.4bn from the issue of subscription rights to
new shares; JPY1.0bn from the exercise of subscription rights)▶ Exercise price:

JPY330▶ Subscription and allocation method:

Issued to Oak Capital Corporation via third-party allotment.

On November 13, 2014, the company announced its revised full-year earnings forecast for FY12/14.

Revisions to the full-year earnings forecast for FY12/14 (previous forecast in parentheses)▶ Sales:▶ Operating loss:▶ Recurring loss:▶ Net loss:

JPY2.0bn (JPY1.8bn)
JPY1.3bn (operating loss of JPY1.7bn)
JPY1.3bn (recurring loss of JPY1.7bn)
JPY1.3bn (net loss of JPY1.7bn).

Reasons for the revisions
The company expects sales to outperform the initial forecast by JPY205mn, mainly due to an increase in overseas productsales of Treakisym. SG&A expenses are also expected to be lower than in the initial forecast owing to a revision ofdevelopment costs for clinical trials.

On November 5, 2014, the company announced the completion of patient enrollment for the domestic phase II clinical
trial of its anticancer agent Treakisym (development code: SyB L-0501; generic: bendamustine hydrochloride) in CLL
patients. The company is developing Treakisym in conjunction with partner Eisai Co., Ltd. (“Eisai”). The Ministry of
Health, Labour and Welfare (MHLW) has designated Treakisym as a prioritized unapproved drug having high potential toaddress the lack of an effective therapy in CLL—Treakisym was designated as an orphan drug for the CLL indication in June2012.
In October 2010, the company received domestic regulatory approval of Treakisym for the indications of relapsed or
refractory NHL and MCL. Since December 2010, Eisai, has been selling the drug in Japan under the product name“Treakisym® 100mg for IV Use.”

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Major shareholders
Top Shareholders

Amount Held

Fuminori Yoshida

9.6%

Cephalon, Inc.

8.0%

Eisai Co., Ltd.

2.6%

Waseda No. 1 Investment LP

2.1%

Oak Capital Corporation

1.9%

SBI Securities Co., Ltd

1.2%

Matsui Securities Co Ltd

1.0%

Japan Securities Finance Co., Ltd.

1.0%

Rakuten Securities, Inc.

0.7%

Hase Hideyuki

0.6%

Source: Shared Research based on company data.
As of December 31, 2015
Ratio of shares held calculated after subtracting treasury shares from shares outstanding

Top management
Representative Director, President and CEO, Fuminori Yoshida established SymBio Pharmaceuticals Limited, his third
company, in March of 2005. As founding president of two other major healthcare companies, Nippon BioRad Laboratories(1980) and Amgen Japan (1993), he has earned high visibility and credibility within Japan's healthcare and academic
communities. Following his graduation from Gakushuin University in 1971 with a B.S. in Organic Chemistry, he went on
to receive an M.S. in Molecular Biology from MIT (1973) and M.S. in Health Policy and Management from Harvard
University Graduate School (1975). He possesses dual experience and expertise in the management of major Japaneseand American corporations due to his prior work experience at various companies, including Mitsubishi Corporation and
AHS Japan, Syntex Japan (1993) as President and CEO, and Amgen Inc. where he served concurrently as Corporate
Vice-President, President and CEO of Amgen Japan, for 12 years.

Employees
SymBio had a total of 74 employees as of December 31, 2015.

Other
Overview of clinical trials
Development of a new drug takes between 10 and 17 years
The development process of a new drug follows the four stages described below. It usually takes 10 to 17 years for a new
drug to win regulatory approval, according to the company.

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Ordinary process and periods of developing new drugs
Process

PeriodWhat is done

Basic research

2-3 years

Creation of new substances and decision on candidates for drugs

Preclinical test

3-5 years

Confirmation of efficacy and safety through experiments on animals

Clinical trials

3-7 years

Phase I: Confirmation of safety and pharmacokinetics with a small number of healthy people
Phase II: Confirmation of efficacy and safety with a small number of patients
Phase III: Confirmation of efficacy and safety with many patients in comparison to existing drugs

Application and approval

1-2 years

Examination by the Ministry of Health, Labour and Welfare

Source: Shared Research based on company data.

Probability of a compound receiving drug approval is 1/100,000
The probability of a chemical compound receiving regulatory approval is said to be 1/100,000, according to thecompany.
According to the 2013 edition of the Thomson Reuters Pharmaceutical R&D Factbook, the success rate of pharmaceuticalcompanies around the globe from 2006 to 2009 at various stages in the development process was:▶ Preclinical: 67%▶ Phase I clinical trials: 46%▶ Phase II clinical trials: 19%▶ Phase III clinical trials: 77%▶ Regulatory approval: 90%.

The success rate of cancer drugs tends to be lower than that of other drugs. The success rate of cancer drugs that went
through clinical trials in the US between 2004 and 2011 was only 6.7%, compared with 12.1% for other drugs, according
to BIOtechNow. The success rate of cancer drugs that went through Phase III clinical trials was 45%, while other drugs
had a 64% success rate.

Ethnic factors in the acceptability of foreign clinical data
Japan’s Ministry of Health, Labour, and Welfare (MHLW) in 1998 released a report entitled Ethnic Factors in the
Acceptability of Foreign Clinical Data (ICH-E5 Guideline) to spell out the government’s stance on the use of data on
clinical trials conducted outside Japan. The report discusses whether the use of such extrapolated data is acceptable.
Applications for drug approval in Japan normally require pharmacokinetic data, dose-responsive data, and clinical trial
data on efficacy for Japanese people. However, data from overseas clinical trials are acceptable if a bridging study
demonstrates that such data can be used for Japanese people.
Pharmacokinetic data: Data concerning the fate of substances administered externally to a living organism: absorption, distribution,
metabolization, and excretion (ADME).

Glossary
AntigenNormally, a protein or other substance carrying bacteria and viruses that the body rejects as foreign, causing anantigen-antibody reaction (AAR). When antigens enter the body, they either stimulate the production of antibodies or
combine with them.

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Bifidobacterium
Genus of Gram-positive bacteria, and are one of the major genera of bacteria that make up the colon flora in mammals,with probiotic activity limited to anaerobic environments. Bifidobacterium strains are important probiotics and widelyused in the food industry (e.g. yogurt). As many types of cancer (specifically solid tumors such as pancreatic cancer) growin a hypoxic environment, intravenously administered Bifidobacterium expressing the TTR1 nano-agonist molecule will
selectively live in cancer tissue and effectively kill cancer cells via TTR1 nano-agonist molecule expression.

Bridging Data
Data generated from overseas clinical trials that can be applied to Japanese patients and used in Japan regulatory filings
for marketing approval. The goal is to shorten the number of preclinical/clinical studies required for marketing approval in
Japan by avoiding the need to repeat the same studies that have already been carried out overseas (e.g., dispense with
the need to do a phase II and/or III clinical trial in Japan).

Chronic Lymphocytic Leukemia (CLL)
A disease in which white blood cells, called lymphatic corpuscles, become cancerous.

Contract Research Organization (CRO)
Pharmaceutical companies often outsource some of their work to contract research organizations so they can focus oncore operations. Outsourced work may include monitoring of clinical trials to ensure that they are proceeding according
to plan, and the management of clinical trial data.

Dose-Responsiveness
Does-responsiveness shows the relationship between the dosage and efficacy of a drug. It is used to determine themethod and dosage. Under normal circumstances, the effectiveness of a drug corresponds to its dosage.

Fentanyl
A synthetic opioid painkiller used for anesthesia, cancer, and post-operative pain management. It is widely used by
Japanese hospitals, and subject to strict control under the Narcotics and Psychotropics Control Act because it is a narcotic.

First-line Drug
The first drug given to a patient for a disease that is typically part of a standard set of treatments such as surgery followedby chemotherapy and radiation. When used by itself, first-line therapy is the one accepted as the best treatment. If it
doesn’t cure the disease (the patient has a relapse) or causes severe side effects, other treatments (second-line, third-lineetc.) may be added or used instead.

Immunoglobulin G (IgG)
The main antibody isotype found in blood and extracellular fluid which protects the body from infection by binding tomany kinds of pathogens such as viruses, bacteria, and fungi —it does this via several immune mechanisms: IgG-mediatedbinding of pathogens causes their immobilization and binding together.

Iontophoresis
A method for transdermal administration of ionized drugs using a tiny electric current.

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Key Opinion Leader (KOL)
Key opinion leaders are physicians whose opinions concerning the treatment of certain illnesses have a strong influenceon other doctors.

Mantle-Cell Lymphoma (MCL)
A type of fast-growing B-cell non-Hodgkin’s lymphoma that normally affects people over a certain age. It is characterized
by small and medium-sized cancer cells that appear in lymphatic nodes, the spleen, bone marrow, blood, and thedigestive system.

Monoclonal Antibody
A single antibody molecule taken from a single cell. It is possible to produce large amounts of these special antibodies
and use them in the development of antibody drugs.

Multikinase Inhibitor
Multikinase inhibitor blocks tyrosine kinases, which play an important role in transmitting signals involving themultiplication and division of cells. Tyrosine kinases can be energized due to genetic mutations. If this happens, thenumber of cells rapidly increases, causing cancer or other illnesses.

Myelodysplastic Syndromes
Myelodysplastic Syndrome leads to abnormalities in hematopoietic stem cells that produce blood cells, resulting in a lackof blood. Blood cells produced this way are abnormally shaped. This change in the cells is called dysplasia. The disease
typically leads to frequent anemia with some patients dying from infection or bleeding due to the reduction in blood
cells. The disease is most common among the elderly. 10 to 20% of MDS patients progress to acute leukemia.

Non-Hodgkin’s Lymphoma (NHL)A group of ailments associated with all types of malignant tumors other than Hodgkin’s lymphoma.
In Japan, many of these diseases are diffuse large cell lymphomas.

Overall Survival (OS)Overall survival refers to the duration between the initiation of treatment and a patient’s death.

Patient-Controlled Analgesia (PCA)
A pain management method in which patients control the timing of analgesic drug administration.

Progression-Free Survival (PFS)
Progression-free survival refers to the duration between the initiation of treatment, and either death or diseaseprogression.

Proof-of-Concept (POC)
A proof-of-concept, when applied to drug development, is the concept that the efficacy and safety of a new drugcandidate must be validated through data generated in clinical trials.

Rare Disorders
Rare disorders are illnesses that affect few people, although they may be serious and/or life-threatening. Drugs designed

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to treat rare medical conditions are called ‘orphan drugs’, and pharmaceutical companies often receive government
incentives for the development of these drugs.
In Japan, the Ministry of Health, Labour and Welfare seeks to promote the development of orphan drugs by offeringsubsidies. When a drug is designated as an orphan, it is placed on a fast track for approval (the time between theapplication and approval is reduced). The period of market exclusivity can also be extended to 10 years, and a system is inplace to keep the NHI price of orphan drugs above a certain level.

R-CHOP therapy
A combination of rituximab with chemotherapy drugs cyclophosphamide, doxorubicin (hydroxydaunomycin), vincristine(Oncovin®), and prednisolone. R-CHOP is an acronym derived from the names of the drugs used. It is the standard initial
treatment for low-grade non-Hodgkin’s lymphoma (NHL) and mantle-cell lymphoma (MCL).

Special Protocol Assessment (SPA)
A system under which the US Food and Drug Administration (FDA) approves the protocol or design of a planned phase III
clinical trial, such as target illness, purpose, primary and secondary endpoints, and method of data analysis – the protocol
may be revised following FDA consultation prior to the start of the study. The SPA is intended to shorten the review
period of new drug applications (NDAs) by the FDA.

Standard Therapy
Standard therapy refers to treatment that is considered to be the best therapy currently available. It is a treatment widely
recommended to patients by physicians.

TTR1 nano-agonist
Member of the tumor necrosis factor (TNF) family that exerts its apoptotic activity in human cells when it trimerizes bybinding to its transmembrane receptors, TRAIL-R1 and TRAIL-R2. It is difficult to form a trimeric structure using
conventional anti-TRAIL-R1antibodies, and thus apoptosis-inducing ability is typically weak. Camelids (e.g. camels,
alpacas, llamas) produce functional antibodies devoid of light chains of which the single N-terminal domain is fully
capable of antigen binding. These single-domain antibody fragments (VHHs or sdAb) have several advantages forbiotechnological applications: they are well expressed in microorganisms, have a high stability and solubility, and canpenetrate tissues relatively easily. Trivalent anti-TRAIL-R1 single-domain antibodies (TTR1: an abbreviation for Trivalentanti-TRAIL-R1) used in our collaboration have agonistic activities and induce apoptosis, thus we call them TTR1
nano-agonist(s).

Company name
SymBio is derived from the words “symbiosis” and “biotechnology.” The company’s corporate philosophy emphasizes
the symbiotic or mutually supportive relationship that exists among major players in the healthcare industry, and isreflected in the company’s logo which symbolizes physicians, scientists, regulators, and investors, with patients at its
center. The color of the logo represents the evergreen tree—the company’s endeavor to create and sustain a life-giving
force.

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Company profile
Company nameHead office
Toranomon 30 Mori Building, 3-2-2 Toranomon

SymBio Pharmaceuticals Limited

Minato-ku, Tokyo, JAPAN
105-0001

Phone

Listed on+81-3-5472-1125

TSE JASDAQ GrowthEstablishedExchange listing

March 25, 2005

October 20, 2011

WebsiteFiscal year-end

http://www.symbiopharma.com/index_e.html

December

IR contact

IR web

Tsutomu Abe

http://www.symbiopharma.com/ir_e/01.html

IR mail

IR phonetabe.ta02@symbiopharma.com+81-3-5472-1125

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