ANALYST NET Company Report

SymBio Pharmaceuticals Ltd.
Issue date: November 8, 2018(4582 JASDAQ）

Firm decision made to set up its direct sales structure
Company announces plan to market Treakisym® itself
On October 16, 2018 SymBio announced it was preparing to set up an in-house structure for themarketing of its main earnings driver, Treakisym®, from 2021. The company had received approaches
from a number of companies offering advantageous terms in the form of sales tie-ups but has made afirm decision to go it alone. The reasons behind this decision are threefold:① By having its own group of medical representatives (MR’s) the company can acquire a clearer
insight into market demand and react more quickly to that demand.
② While building and maintaining the sales structure will entail costs those costs will be lessthan the outflow of value to a partner, thus allowing the company to capture the maximum
value from Treakisym®.
③ Treakisym® is indicated for one type of blood cancer. The same group of specialised bloodcancer MR’s can be used for handling rigosertib (currently under development for thetreatment of another kind of cancer, myelodysplastic syndrome, MDS).

Follow-up Report
Fair Research Inc.
Tsuyoshi Suzuki
Company Outline
Location

Tokyo, Japan

President

Fuminori Yoshida

EstablishedMarch 2005

Capital

JPY11,834 million

ListedOctober 2011

URL

www.
symbiopharma.com

Industry

Pharmaceuticals

Employees

82 (consol. basis)

The business value (pre-tax) of SymBio’s pipeline: JPY41.2 – 44.8 billion
If the company brings sales in-house, we posit a pre-tax business value for Treakisym® of JPY30.2
billion on the assumption that trials targeting recurrent/intractable medium/high grade non-Hodgkin’s
lymphoma (r/r DLBCL) yield an 80% probability of success. At 100% probability this business value
rises to JPY34 billion. However, if the company retains its current sales structure, we estimate its
business value would not exceed JPY14.3 – 15.2 billion, which brings into sharp relief the impact of
having its own direct marketing structure. The development of rigosertib is also going well, with a pretax business value we posit at JPY10.8 billion. These two products together come to JPY41.2 – 44.8
billion (pre-tax). After tax and after adjusting for full-company costs, including new drug discovery costs,
and adding in cash on the balance sheet, we arrive at an estimated business value of JPY23.5 – 26.7
billion. However, note should be taken of the fact that fund raising from the exercise of options on the2018 series has already been completed, and there is approximately JPY7 billion in prospect for the 2019and 2020 options series.

Profits to trend further upward after turning positive in 2021
In its 4-year medium term management plan, released in February 2018, SymBio’s figures were basedon the premise that its direct marketing would begin in the period ending December 2021. The company
averred that there was no change in its outlook at the present time and that earnings would likely turn
positive in 2021. Fair Research Inc. also comes to the same conclusion, positing revenues in 2021 of
JPY10.4 billion and operating profits turning positive at JPY1.2 billion (assuming treatment of r/r
DLBCL using Treakisym® has a 100% probability of success, the rigosertib injection formulation 50%
and the rigosertib oral formulation 30%). Subsequently, in 2022 the rigosertib injection formulation
comes to the market and we posit revenues of JPY12.8 billion and operating profits of JPY2.6 billion,
with these figures rising in 2023 to JPY15.9 billion and JPY4.9 billion, respectively. The launch of therigosertib oral formulation in 2024 would then boost revenues above JPY20 billion and operating profits
to as much as JPY7.4 billion. However, it should be borne in mind that SymBio is keen on drug
development and that the possible introduction and development of new drug candidates leaves aquestion mark over the Fair Research profit forecasts beyond 2022.

Key Indicators (at Nov. 7, 2018)
Stock Price

218

Year High268

Year Low

116

Shares Issued

76,662 thousand

Trading Unit

100 shares

Market Cap

16,712 mil. JPY

Dividend (est)0

EPS (est)-50.62 JPY

PER (est)na

BPS (actual)46.22 JPYPBR (actual)

4.72X(Note: EPS,PER,BPS,PBR are on the basis of shares
outstanding, excl. treasury shares)

Results

Revenues YOY OP Income
JPY mil%
JPY mil

YOY%

RP
JPY milYOY%

Net Income YOY
JPY mil%

EPS
JPY

Share Price
High
Low

2015/12 Actual

1,933

-1.1

-2,551NA-2,630NA-2,632

NA

-81.3

383

177

2016/12 Actual

2,368

22.5

-2,127NA-2,316NA-2,313NA-58.82509

173

2017/12 Actual

3,444

45.4

-3,947NA-3,976NA-3,977NA-79.78311

200

2017/12 2Q Actual
2018/12 2Q Actual

1,786
1,928

47.5
8.0

-1,235-1,324NANA-1,268-1,377NANA-1,266-1,388NANA-26.09-23.79

311
247

200
144

2018/12 Forecast

4,201

22.0

-2,981NA-3,044NA-3,056NA-50.62

1/10
This report is prepared by Fair Research Inc. (Fair Research) for the purpose of providing information to investors, and not for solicitation of securities trading. Although this is based on theinformation and materials that Fair Research judges reliable, there is no guarantee of accuracy, credibility, completeness, suitability and timeliness. Fair Research shall not take any responsibility
whatsoever for any results including direct or indirect damage arising from the use of, or reliance on, this report. Investors should take their own responsibility for securities and other transactions.
The intellectual property rights of this report belong to Fair Research, and any copy, transmission or quotation of any contents without permission is legally prohibited.

SymBio Pharmaceuticals (4582 JASDAQ）

Issue Date: November 8, 2018

Company outline and philosophy
Business Model

Requiring neither labs nor
factories SymBio is apharmaceuticals venture withnone of the risks normallyassumed by drug discovery
firms, operating a niche
strategy
focusingonmaximising profits

SymBio Pharmaceuticals Ltd. seen as a bio-venture but has the following
distinguishing characteristics:① Controls risk and maximises earnings with a “labless” and “fabless”
strategy.
In terms of business model, the company does not itself conduct basic
research on new drugs. Rather, it seeks out and carefully investigates new
drug candidates developed by drug discovery ventures andpharmaceutical companies around the world. A new drug selected as aresult of this process would typically be the subject of a licensing
agreement and, following development in Japan, would either be licensed
out to another company for commercialization or commercialized by
SymBio itself.
(Since the company itself conducts drug development in Japan it is not
simply a technology trader, and when it develops its own sales structure
it will become, in name and in fact, a fully-fledged pharmaceuticalcompany).
② Targets large market share and high earnings using a niche strategy.
The company focuses its development efforts on drugs for relatively rare
conditions in, for example, oncology, hematology and pain management
which, despite strong medical needs, the major pharmaceutical companies
have mostly avoided. It seeks to maximize market share and profits using
this niche strategy.
③ Post-POC (proof of concept) strategy
In most cases proof of concept has already been established. By insisting
on prior evidence of efficacy and safety in human subjects, the company
reduces the development risks of new drug candidates.

The
determinantsofcommercial
successareinteractions with a network of
drug discovery companies andthe ability to discern andevaluate

The above characteristics of the company’s business model allow it to avoid mostof the risks confronting drug discovery companies, while at the same time
maximising earnings potential.

The company is a bio-venturein the rare position of having a
product which was approvedand brought to market within
five years of being adopted

Evidence of this ability is provided by the company’s track record. Normally, ittakes some 10-20 years to bring a drug from basic research to the market. In termsof the probability of success, some estimates suggest that, counting from thechemical compound stage, it is less than 1/30,000, and even from the POC stage,around 7-8%. But SymBio managed to get its first product, Treakisym®, fromadoption to manufacturing and commercial approval in around five years, and in
the three years following launch captured 57% of the market. In the eleven or so
years since founding, the company has screened 1,500 drug candidates, of which
over 600 have been formally investigated in-house. And of these, five products
have been adopted and two are currently under development.

The success or failure of this business model is dependent on having a network of
drug discovery companies worldwide and a keenly discerning eye.

Company structure and staff We believe this track record has been made possible by the expertise of thecompany’s staff and by the way the company is organized. SymBio has a staff ofquality are key
82, of whom more than 40 are involved in research and development. The drug
search function is supported by a Scientific Advisory Board (SAB) of specialists(including Nobel Prize candidates) who support drug search activities. Needless tosay, the presence of the company’s founder and CEO, Fuminori Yoshida, is of greatvalue in terms of both the experience he brings and his extensive personal network
2/10
This report is prepared by Fair Research Inc. (Fair Research) for the purpose of providing information to investors, and not for solicitation of securities trading. Although this is based on theinformation and materials that Fair Research judges reliable, there is no guarantee of accuracy, credibility, completeness, suitability and timeliness. Fair Research shall not take any responsibility
whatsoever for any results including direct or indirect damage arising from the use of, or reliance on, this report. Investors should take their own responsibility for securities and othertransactions. The intellectual property rights of this report belong to Fair Research, and any copy, transmission or quotation of any contents without permission is legally prohibited.

SymBio Pharmaceuticals (4582 JASDAQ）

Issue Date: November 8, 2018

(for CV’s of the SAB members and of Fuminori Yoshida see our previous report
released on February 19, 2018).
Company preparing
market Treakisym®
house

to Preparations underway for its direct marketing structure for Treakisym®
inOn October 16, the company announced that it had started preparations for aswitch to its direct marketing structure for domestic sales of its key product,
Treakisym®, starting in 2021.
At present SymBio markets Treakisym® through Eisai Co., Ltd. but the agreement
governing that tie-up is due to expire in December 2020. The company has
therefore been looking at all options on how to handle marketing after that date,including switching to its direct structure or arranging a sales tie-up with a major
pharmaceuticals company.

The company appears to have received a number of attractive offers fromThree advantages to the direct companies looking to take over sales but has now firmly decided to develop its
sales option
own direct sales structure, a decision which should be regarded positively. There
are three main reasons for this:Firstly, accurate grasp of
market demand
Secondly, big increase inbusiness value① By having its own group of medical representatives (MR’s) the company
can acquire a clearer insight into market demand and react more quickly
to that demand.
② While developing and maintaining its own sales structure will entail costs,
those costs will be less than the outflow of value to a sales partner, thus
allowing the company to capture the maximum value from Treakisym®.

If we re-model the business value of Treakisym® (assuming an 80% successprobability in trials targeting recurrent/intractable medium/high-grade nonHaving its own sales structure Hodgkin’s lymphoma: r/r DLBCL), in the event the company introduces its own
will boost the business value marketing structure from 2021, the business value (discounted present value) ofof Treakisym® to above
Treakisym® rises to JPY30.2 billion, which compares very favourably with the
JPY30 billion
JPY14.3 billion we calculate under the current marketing tie-up arrangement.
Modeling the business value of Treakisym® (revised)（JPY 100 mil）
Discount
Rate
10%

Direct Sales

Current Sales Channel

r/rDLBCL Success Porbability

r/rDLBCL Success Porbability

80%

100%

80%

100%

302.2

340.0

143.1

152.0

349.7

393.5

159.4

169.6

(Ref.）
8%

Source: Calculated by Fair Research Inc.
Note: See end of report for assumptions about market size

Its direct marketing groupwould
consistofapproximately 40 medical
representatives

The above figures assume a staff of around 40 MR’s for the direct marketinggroup. The reasoning behind this number is that Japan has some 1100-1200 clinics
and hospitals with hematology departments. Some 800-900 of those are hospitals.
Symbio could cover the main ones, i.e. one-third of the total or around 320-360
hospitals. At the most, an individual MR could cover 10 facilities, bringing thetotal requirement to around 40. The company plans to recruit 10 or so productmanagers by the end of this year and a further 30 staff later on.
The cost of hiring MR’s (totaling around JPY1 billion) and the cost of promotional
activities (around JPY500 million) comes to an annual JPY1.5 billion, meaning
3/10

This report is prepared by Fair Research Inc. (Fair Research) for the purpose of providing information to investors, and not for solicitation of securities trading. Although this is based on theinformation and materials that Fair Research judges reliable, there is no guarantee of accuracy, credibility, completeness, suitability and timeliness. Fair Research shall not take any responsibility
whatsoever for any results including direct or indirect damage arising from the use of, or reliance on, this report. Investors should take their own responsibility for securities and othertransactions. The intellectual property rights of this report belong to Fair Research, and any copy, transmission or quotation of any contents without permission is legally prohibited.

SymBio Pharmaceuticals (4582 JASDAQ）
The expansion in grossmargin will more thancompensate for the higher costof salesIssue Date: November 8, 2018that cost of sales will be JPY1.3 - 1.4 billion higher than the current level(including costs associated with future changes in product formulation for lifecycle management). Further, it is estimated that the gross margin rises from around
14% of the current official drug price to some 50% in its direct marketing context.
Hence, any increase in cost of sales will be more than compensated for by a rise inbusiness value.
< Reference: Changes in formulation>

Source: SymBio IR meeting materials
Note: The target date for approval of the RTD formulation is 2021, and for the RI
formulation 2022. In the US, there has already been a 97% switch to the RI
formulation.

As noted in our previous follow-up report released on August 21, 2018, SymBio
commissioned an external entity to survey, as of March, internal medicine
practitioners specializing in blood conditions and found that the use of
Treakisym® in combination with rituximab (B-R therapy) for the treatment of
untreated low-grade non-Hodgkin’s lymphoma had exceeded 50%, well above thatfor the conventional R-CHOP therapy. Further, in the 2018 edition of Guidelines
for Clinical Practice in Hematopoietic Tumors, published by the Japan Society of
Hematology on July 20, Treakisym® was newly selected as a standard treatment
option for all approved indications.
Comparison of market penetration of B-R therapy and R-CHOP therapy

Note: Target indication: Untreated low-grade non-Hodgkin’s lymphoma
Source: SymBio IR meeting materials

4/10
This report is prepared by Fair Research Inc. (Fair Research) for the purpose of providing information to investors, and not for solicitation of securities trading. Although this is based on theinformation and materials that Fair Research judges reliable, there is no guarantee of accuracy, credibility, completeness, suitability and timeliness. Fair Research shall not take any responsibility
whatsoever for any results including direct or indirect damage arising from the use of, or reliance on, this report. Investors should take their own responsibility for securities and othertransactions. The intellectual property rights of this report belong to Fair Research, and any copy, transmission or quotation of any contents without permission is legally prohibited.

SymBio Pharmaceuticals (4582 JASDAQ）

Issue Date: November 8, 2018

This development means that Treakisym® has now established itself as a standard
therapy in the field of malignant lymphoma. If the anticipated probability ofsuccess in current Phase 3 clinical trials targeting recurrent/intractable medium tohigh-grade non-Hodgkin’s lymphoma (r/r DLBCL) is 100%, we would model abusiness value of JPY34 billion (for reference, assuming a discount rate of 8%
yields a business value of JPY39.3 billion).
③ Treakisym® is indicated for one type of blood cancer. The same group of
specialised blood cancer MR’s can be used for rigosertib, currently underdevelopment for the treatment of high-risk myelodysplastic syndrome(MDS), another kind of blood cancer.
In this report, we have revised the dates for application and product launch used in
our modelling of rigosertib’s business value. Specifically, for the injection
formulation, now undergoing global Phase 3 clinical trials (INSPIRE study), we
have brought forward by one year both the application for approval (to 2021) andthe market launch (to 2022). This reflects the fact that good progress has been
made in the development process, such that at the end of July 2018, 36 cases had
been registered for Japanese domestic trials, and registration of the targeted 40
cases should be achieved shortly. The launch date for the oral formulation is now
likely in 2024, also one year earlier than anticipated.
The third advantage of its
direct marketing capability isthat the same sales force canbe used for rigosertib

If we assume the probability of successful development at 50% for the injection
formulation (now in Phase 3), and 30% for the oral formulation (now in Phase 1),
we can posit a business value for rigosertib of JPY10.8 billion. It should be notedthat the estimated values above are predicated on a sales infrastructure, including
MR’s, which is shared in common with Treakisym® (see end of report for market
size considerations).
Rigosertib business value (revised)(JPY100 mil.)Discount rate
As a result of the change in the
expected launch date we now
posit rigosertib’s businessvalue at JPY10.8 billion

10%

108.3

8%

134.8

（Ref）
Source: Calculated by Fair Research Inc.

5/10
This report is prepared by Fair Research Inc. (Fair Research) for the purpose of providing information to investors, and not for solicitation of securities trading. Although this is based on theinformation and materials that Fair Research judges reliable, there is no guarantee of accuracy, credibility, completeness, suitability and timeliness. Fair Research shall not take any responsibility
whatsoever for any results including direct or indirect damage arising from the use of, or reliance on, this report. Investors should take their own responsibility for securities and othertransactions. The intellectual property rights of this report belong to Fair Research, and any copy, transmission or quotation of any contents without permission is legally prohibited.

SymBio Pharmaceuticals (4582 JASDAQ）
Medium-term earnings
trend
Even with the establishmentof its direct sales structure,
there is a high probability ofthecompanyturning
profitable in 2021

Rising earnings trend to be
maintained beyond 2022

Issue Date: November 8, 2018

High probability of the company turning profitable in 2021
In its 4-year medium-term management plan, released in February 2018, SymBio’s
figures were based on the premise that direct marketing would begin in the period
ending December 2021. The company stated that there was no change in its
outlook at the present time and that earnings would likely turn positive in 2021.
Fair Research also comes to the same conclusion, positing revenues in 2021 of
JPY10.4 billion and operating profits turning positive at JPY1.2 billion (assuming
treatment of r/r DLBCL using Treakisym® has a 100% probability of success, therigosertib injection formulation 50% and the rigosertib oral formulation 30%).
What investors want to know now is the level of earnings following the company’s
move into profitability. The answer should come in February of next year when it
will issue a new medium-term management plan revealing its expectations forsales and earnings through to 2022.
SymBio’s medium-term management plan

Source: SymBio Medium-Term Management Plan released on February 7, 2018

According to our own modelling, in 2022 the rigosertib injection formulation
comes to the market and we posit revenues of JPY12.8 billion and operating profitsof JPY2.6 billion, with these figures rising in 2023 to JPY15.9 billion and JPY4.9
billion, respectively. The launch of the rigosertib oral formulation in 2024 would
then boost revenues above JPY20 billion and operating profits to as much as
JPY7.4 billion. However, it should be borne in mind that SymBio is an active drug
developer and that the possible introduction and development of new drugcandidates leaves a question mark over the Fair Research earnings forecasts
beyond 2022.
Fair Research’s vision of the medium-term outlook (revised)(JPY100 mil.）
2018
Sales

Total

OP Income

2019

2020

2021

2022

2023

2024

Treakisym
Rigosertib

41.8
41.8
0.0

42.1
42.1
0.0

45.8
45.8
0.0

104.8
104.8
0.0

128.6
118.6
10.0

159.7
144.7
15.0

202.8
170.8
32.0

Treakisym
Rigosertib
Total Costs

-29.7
-5.8
-4.9
-19.0

-37.8
-12.6
-6.2
-19.0

-38.9
-11.0
-8.8
-19.0

12.9
41.0
-9.1
-19.0

26.6
49.6
-4.0
-19.0

49.0
60.6
7.4
-19.0

74.1
84.1
9.0
-19.0

Total

In Profit

Source: Calculations by Fair Research Inc.
Note: Sales figures adjusted for probability of success

6/10
This report is prepared by Fair Research Inc. (Fair Research) for the purpose of providing information to investors, and not for solicitation of securities trading. Although this is based on theinformation and materials that Fair Research judges reliable, there is no guarantee of accuracy, credibility, completeness, suitability and timeliness. Fair Research shall not take any responsibility
whatsoever for any results including direct or indirect damage arising from the use of, or reliance on, this report. Investors should take their own responsibility for securities and othertransactions. The intellectual property rights of this report belong to Fair Research, and any copy, transmission or quotation of any contents without permission is legally prohibited.

SymBio Pharmaceuticals (4582 JASDAQ）

Issue Date: November 8, 2018

Conclusions
While the provision of its
direct sales capability will
involve costs, the decision to
go ahead is a shrewd one

We model the combined
business value of Treakisym®
and rigosertib at JPY41.2 44.8 billion, and the enterprisevalue after adjusting forcompany costs at JPY30.7 34.3 billion (before tax). The
after-tax figure we estimate at
JPY23.5 – 26.7 billion

We posit the business value of Treakisym® sold through the company’s own sales
structure as JPY30.2 billion (pre-tax), assuming an 80% probability of success intrials targeting recurrent/intractable medium-high grade non-Hodgkin’s
lymphoma. Assuming a 100% probability of success lifts the value to JPY34
billion. On the other hand, assuming continued use of the current sales channel
reduces the business value of Treakisym® to JPY14.3 - 15.2 billion, bringing into
sharp relief the advantage of having its own sales structure. The wisdom of
deciding on its direct sales structure is clear, even given the set-up costs.
The rigosertib product development is also proceeding well. As a result of thechange in our estimate of its launch date we have revised its business value (pretax) to JPY10.8 billion, bringing the combined two-product business value toaround JPY41.2 – 44.8 billion. As a result, we posit enterprise value (pre-tax) at
JPY 30.7 - 34.3 billion, after adjusting for company costs, including costs
associated with new drug development (excluding the two main products) and after
adjusting for cash on the balance sheet. Assuming an effective tax rate of 31% wearrive at a post-tax enterprise value of JPY23.5 – 26.7 billion.
However, it should be borne in mind that of the multi-year (2018-2020) options to
subscribe for new shares announced in April, the 2018 portion of the options has
already been fully exercised, thus leaving pending approximately JPY7 billion forthe 2019 and 2020 series of the fund raising.
Procedures are still ongoing in the arbitration of the company’s dispute with The
Medicines Company in the US concerning the self-pain management medical
product IONSYS (SymBio has requested the International Chamber of Commerce
to rule on its claim for compensation in the amount of JPY9 billion from The
Medicines Company). Depending on the outcome of this arbitration SymBio’s
capital raising requirements may change.

7/10
This report is prepared by Fair Research Inc. (Fair Research) for the purpose of providing information to investors, and not for solicitation of securities trading. Although this is based on theinformation and materials that Fair Research judges reliable, there is no guarantee of accuracy, credibility, completeness, suitability and timeliness. Fair Research shall not take any responsibility
whatsoever for any results including direct or indirect damage arising from the use of, or reliance on, this report. Investors should take their own responsibility for securities and othertransactions. The intellectual property rights of this report belong to Fair Research, and any copy, transmission or quotation of any contents without permission is legally prohibited.

SymBio Pharmaceuticals (4582 JASDAQ）<Reference>
The market size assumptions
we have used in modellingbusiness value are JPY20.4
billion for Treakisym® and
JPY16.0 billion for rigosertib

Issue Date: November 8, 2018

<Reference: Market size for Treakisym® and rigosertib>
Details on the market size of Treakisym® and rigosertib were provided in the basic
report we issued on February 19, 2018. That estimate is given added credence as aresult of the recognition of Treakisym® as a standard treatment. We therefore
adhere to our modelling of JPY10.6 billion market size for the three Treakisym®
approved indications: 1 Recurrent/intractable low-grade NHL/MCL; 2 Chronic
lymphocytic leukemia (CLL); and 3, Untreated low-grade NHL/MCL. We also
reiterate our market size estimate of JPY9.8 billion for r/r DLBCL, now at Phase
3.

The Treakisym market、
Source: Symbio IR meeting materials

Turning to the potential for rigosertib, since the injection formulation in cases ofhigh-grade MDS is limited to MHA refractory we estimate its market size at
JPY4.6 billion. The oral formulation has an estimated potential of JPY11.6 billion,
bringing the total to around JPY16 billion (see our basic report released on
February 19, 2018).

8/10This report is prepared by Fair Research Inc. (Fair Research) for the purpose of providing information to investors, and not for solicitation of securities trading. Although this is based on theinformation and materials that Fair Research judges reliable, there is no guarantee of accuracy, credibility, completeness, suitability and timeliness. Fair Research shall not take any responsibility
whatsoever for any results including direct or indirect damage arising from the use of, or reliance on, this report. Investors should take their own responsibility for securities and othertransactions. The intellectual property rights of this report belong to Fair Research, and any copy, transmission or quotation of any contents without permission is legally prohibited.

SymBio Pharmaceuticals (4582 JASDAQ）

Issue Date: November 8, 2018

Fair Research Inc.
AI Bldg. Kayabacho 511, 1-6-12 Shinkawa, Chuo-ku, Tokyo 104-0033
Tel. 03-6403-9217
E-mail: info@fair-research-inst.jp

9/10This report is prepared by Fair Research Inc. (Fair Research) for the purpose of providing information to investors, and not for solicitation of securities trading. Although this is based on theinformation and materials that Fair Research judges reliable, there is no guarantee of accuracy, credibility, completeness, suitability and timeliness. Fair Research shall not take any responsibility
whatsoever for any results including direct or indirect damage arising from the use of, or reliance on, this report. Investors should take their own responsibility for securities and othertransactions. The intellectual property rights of this report belong to Fair Research, and any copy, transmission or quotation of any contents without permission is legally prohibited.

SymBio Pharmaceuticals (4582 JASDAQ）

Issue Date: November 8, 2018

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This report is prepared by Fair Research Inc. ("Fair Research") for the purpose of providing information to investors for fees under acontract with a covered company, and not for solicitation of securities trading.

□

Although in preparing the report, Fair Research has obtained information through interviews with the covered company, assumptions andviews set forth in the report are not of the said company but are in principle based on analysis and evaluation by Fair Research.

□

Although the report is written based on the information and materials that Fair Research judged reliable, there is no guarantee of accuracy,
credibility, completeness, suitability and timeliness. Also, views and forecasts set forth in the report represent judgment by Fair Researchat the time of issue of the report, and may be changed without notice.

□

Fair Research shall not take any responsibility whatsoever for any results including direct or indirect damage arising from the use of, or
reliance to, this report. Investors should take full responsibility for securities and other transactions.

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The intellectual property rights of this report belong to Fair Research, and any copy, transmission or quotation of any contents without
permission is legally prohibited.
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