Summary of Consolidated Financial Statements
for the First Three Months of Fiscal Year Ending December 31, 2024
[Japanese GAAP]May 7, 2024
Company Name

SymBio Pharmaceuticals Limited

Listing: Tokyo Stock Exchange

Securities Code4582

URL: https://www.symbiopharma.com/

Representative

Representative Director,
President and Chief Executive Officer

Fuminori Yoshida

Contact Person

Executive Vice President, Corporate Officer
and Chief Financial Officer

Takaaki Fukushima

TEL +81-3-5472-1125

Date of Dividend
Payment (plan)–

Scheduled Date to File Quarterly May 8, 2024
ReportSupplementary materials for the quarterly financial statements:

Yes ・ No

Holding of quarterly earnings performance review:

Yes ・ No

(Amounts of less than one million yen are rounded down.)
1. Business Results for the First Three Months of FY 2024 (January 1, 2024 to March 31, 2024)(1) Consolidated Operating Results (cumulative)(Percentages indicate year-on-year changes.)
Net Sales
Q1 FY 2024
Q1 FY 2023

Operating Profit

Profit attributable toowners of parent

Ordinary Profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

597
1,544

(61.3)(33.3)(806)
51–(89.9)(727)
48–(89.9)(777)4–(97.3)(Note) Comprehensive income:Q1 FY 2024
Q1 FY 2023

Earnings per Share(767) million yen[－%]
4 million yen [(97.2)%]

Diluted Earnings per Share
Yen

Yen

Q1 FY 2024
(18.03)–Q1 FY 2023
0.11
0.11
(Note) Diluted earnings per share is not stated due to recording of a net loss per share, despite the potential dilution of shares.
(2) Consolidated Financial Position
Total Assets
Q1 FY 2024 (as of March 31, 2024)
FY 2023 (as of December 31, 2023)(Reference) Shareholders’ equity:

Net Assets

Equity Ratio

Millions of yen

Millions of yen

%

7,716
8,170

6,998
7,209

86.9
84.9

Q1 FY 2024 (as of March 31, 2024)
FY 2023 (as of December 31, 2023)

6,704 million yen
6,932 million yen

2. Dividends
Annual Dividend per ShareFY 2023
FY 2024
FY 2024 (Forecast)

1st QuarterYen

2nd Quarter
Yen

3rd Quarter
Yen

Fiscal Year End
Yen

–
–

0.00

–

0.00

0.00

0.00

–

0.00

0.00

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

Full YearYen

3. Earnings Forecast for FY 2024 (January 1, 2024 to December 31, 2024)
Operating Profit(Loss)Net Sales
Millions of yen

Full Year

2,623% Millions of yen(53.1)(3,702)(Percentages indicate year-on-year changes.)
Profit (Loss)
Earnings (Loss) per
attributable toShareowners of parent

Ordinary Profit(Loss)% Millions of yen% Millions of yen

%

Yen

–

–

–

(84.15)(3,524)(3,628)(Note) Revision of earnings forecasts most recently announced: Yes ・ No
Notes:(1) Changes in significant subsidiaries during the period:(Transfer of specified subsidiary accompanying a change in the scope of consolidation)
New: None
Removed: None

Yes ・ No

(2) Application of special accounting treatment in preparing the quarterly financial statements: Yes ・ No
(3) Changes in accounting policies, changes in accounting estimates and restatements after error corrections(a) Changes in accounting policies due to revision of accounting standards:

Yes ・ No(b) Changes in accounting policies due to other reasons:Yes ・ No(c) Changes in accounting estimates:

Yes ・ No(d) Restatements after error corrections:

Yes ・ No

(4) Number of issued shares (common stock)(i) Total number of issued shares at the end of
the period (including treasury shares)(ii) Total number of treasury shares at the endof the period(iii) Average number of shares during theperiod (cumulative)

Q1 FY 2024

44,840,531 shares

FY 2023

42,278,081 shares

Q1 FY 2024

89,229 shares

FY 2023

87,720 shares

Q1 FY 2024

43,113,722 shares

Q1 FY 2023

39,530,266 shares* Summary of the quarterly financial statements is not subject to quarterly reviews by certified public accountants or accounting
corporations.
* Explanation regarding the appropriate use of earnings forecasts and other matters
All forecasts presented in this document, including earnings forecasts, are based on the information currently available to theCompany and assumptions determined by the Company to be reasonable. Actual results may differ substantially from these
forecasts due to various factors. Regarding the assumptions on which the Company’s earnings forecasts are based and their usage,
please refer to “1. Qualitative Information on Quarterly Financial Results (3) Explanation of consolidated earnings forecast andother forward-looking information” on Page 4 of the Appendix.

Appendix
Index
1. Qualitative Information on Quarterly Financial Results ........................................................................................................................ 2(1) Business results ................................................................................................................................................................................ 2(2) Summary of financial position ......................................................................................................................................................... 4(3) Explanation of consolidated earnings forecasts and other forward-looking information ................................................................. 4
2. Quarterly Consolidated Financial Statements and Primary Notes ......................................................................................................... 5(1) Quarterly consolidated balance sheet ............................................................................................................................................... 5(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income ............................................... 7
Quarterly consolidated statement of income for the first three months of FY 2024 ......................................................................... 7
Quarterly consolidated statement of comprehensive income for the first three months of FY 2024 ................................................ 8(3) Notes to quarterly consolidated financial statements ....................................................................................................................... 9(Notes to going concern assumptions).............................................................................................................................................. 9(Notes in case of significant changes to shareholders’ equity) ......................................................................................................... 9(Significant subsequent events) ........................................................................................................................................................ 9―1―

1. Qualitative Information on Quarterly Financial Results(1) Business results
Progress of business of the Company and subsidiary (“the Group”) for the first nine months of the fiscal year under review is asfollows.

(i) Business results for the period under review
Currently, TREAKISYM® 100mg/4mL ready-to-dilute liquid formulation (TREAKISYM® RTD) is approved for rapid injection(RI) administration. RI shortens the infusion time from 60 to 10 minutes, benefitting both patients and healthcare providers.
Compared to freeze-dried formulations, TREAKISYM® RTD eliminates the need for manual reconstitution and significantly reduces
preparation time. RI administration has the further benefit of reduced infusion volume (from 250 ml to 50 ml), meaning a lower
volume of saline solution is used.
As of the end of March 2024, more than 90% of medical institutions had converted to RI administration.
Sales were 597,865 thousand yen(a reduction of 61.3% year on year). Prescriptions for bendamustine continue to be impacted byconcerns about the possibility of prolonged or severe infection during or after treatment. In addition, sales were impacted by the NHI
drug price revision, which appears to be causing hospitals to reduce their inventories.
Selling, general and administrative expenses totaled 1,277,804 thousand yen (up 6.4% year on year). This amount includes
research and development expenses of 691,410 thousand yen (up 23.97% year on year).
As a result, operating loss was 806,702 thousand yen (versus an operating profit of 51,246 thousand yen for the same period in
FY 2023) and ordinary loss was 727,265 thousand yen (versus an ordinary profit 48,326 thousand yen for the same period in FY2023). Loss attributable to owners of parent amounted to 777,397 thousand yen (versus a profit attributable to owners of parent of
4,455 thousand yen for the same period in FY 2023).
In February 2022, generic bendamustine products from four companies were approved for manufacturing and two of theseproducts started to be sold in Japan. Given the potential infringement of the patents related to TREAKISYM® in Japan which are
exclusively licensed to the Company from Eagle Pharmaceuticals, Inc (head office: New Jersey, U.S.; hereinafter “Eagle”), theCompany in coordination with Eagle notified four generic makers of potential patent infringement and, in December 2022,
commenced litigation against the makers of the generic products, Towa Pharmaceutical Co., Ltd. (head office: Osaka) and Pfizer
Japan Inc. (head office: Tokyo), seeking an injunction against the manufacture and sale of the products and compensation for damages
arising from the infringement. This proceedings in both cases are ongoing.
Segment information has been omitted as the Group operates within a single segment, which includes the research anddevelopment, manufacturing, and marketing of pharmaceutical drugs and other related activities.

(ii) Research and development activities
During the first three months of FY 2024, we conducted the following research and development activities.
(a) Antiviral drug: SyB V-1901 (intravenous formulation) (generic name: brincidofovir [BCV])With a view to global expansion, the Group is developing brincidofovir (SyB V-1901, hereinafter "IV BCV" and "Oral BCV",
respectively), an antiviral drug in-licensed from Chimerix, Inc. with their broad activity against double-stranded DNA viruses(dsDNA viruses). The Group is conducting joint research with leading research facilities in Japan and overseas. Global clinical
trials will be considered and implemented based on the scientific findings of the research.
The Group is prioritizing the global development of BCV IV, focusing on Japan, the United States, and Europe, for the treatmentof adenovirus infection in immunocompromised patients, such as those who have had hematopoietic stem cell transplantation ororgan transplantation. In March 2021, the group submitted an Investigational New Drug (IND) Application to the U.S. Food andDrug Administration (FDA) to initiate a Phase II clinical trial for the treatment of adenovirus infection and infectious diseases,
primarily in pediatric patients (including adults). in immunocompromised patients with adenovirus (AdV) infection
In April 2021, the program was granted Fast Track designation by the FDA, and in May 2023, this study established human POC
for BCV. Positive data demonstrating the efficacy of the study was presented orally at the 65th Annual Meeting of the American
Society of Hematology in December 2023, and subsequent oral presentations were given at other major conferences, including the2024 U.S. Tandem Meetings in February 2024, and the 50th Annual Meeting of the European Society for Blood and Marrow
Transplantation (EBMT) in April 2024. Additionally, a patent for the use of BCV for the treatment of adenovirus infection and―2―

infectious diseases based on these results was granted and registered in Japan in January 2024.
The Group submitted clinical trial notifications for a Phase II study of IV BCV in patients with BK virus (BKV) infection after
kidney transplantation to the Pharmaceuticals and Medical Devices Agency (PMDA) of Japan and the Therapeutic Goods
Administration (TGA) of Australia, in May and August 2022. The investigational drug was administered to the first subject inDecember 2022. Although the trial was planned to be completed in 2025, due to enrollment delays, we will discuss modifications
to the protocol will researchers.
The Group is also investigating the use of BCV to treat multiple sclerosis, an intractable disease that has recently been shown to
be associated with Epstein-Barr virus (EBV). In August 2022, the Company entered into a collaboration agreement with the
National Institute of Neurological Disorders and Stroke (NINDS), part of the U.S. National Institutes of Health (NIH), for thetransfer of materials to evaluate the antiviral effect of BCV in EBV. In March 2023, the Company entered into a Cooperative
Research and Development Agreement (CRADA) for BCV with NINDS for research to verify the efficacy of BCV as an anti-viraltherapeutic for EBV in the treatment of multiple sclerosis, and to obtain necessary data with a view to future clinical trials. In
October 2023

, the results of the research were presented by Dr. Maria Chiara Monaco at the 9th Joint ECTRIMS-ACTRIMS

Meeting in Milan, Italy. In April 2023, the Company entered into a CRADA with the National Institute of Allergy and Infectious
Diseases (NIAID), part of NIH in the U.S., to investigate the efficacy of BCV in the treatment of EBV associatedlymphoproliferative diseases.
Among dsDNA viruses, polyomaviruses are known to cause serious diseases through their infection. As existing antiviral drugs
show little efficacy, a high medical need exists for the development of an effective treatment. In November 2022, the Group enteredinto Material Transfer Agreement with Penn State College of Medicine whereby the Group will provide BCV for use in a nonclinical study to evaluate the efficacy of BCV in a mouse model of polyomavirus infection.
Some dsDNA viruses, such as herpes simplex virus type 1 (HSV1) and varicella zoster virus (VZV), are directed against cranial
nerve tissues. Recent research has advanced on the involvement of the reactivation of those viruses in various serious diseases of
the nervous system, including Alzheimer's disease. In December 2022, the Group entered into a Sponsored Research Agreementwith Tufts University to conduct research to evaluate the efficacy of BCV in a HSV infection model using a 3D (three-dimensional)
brain model developed by Tufts University.
In addition to its strong antiviral effect, BCV also is expected to have an antitumor effect, and the Group is exploring BCV’spotential in indications such as EBV-positive lymphoma, refractory brain tumors, and other cancers, through research collaborations
with the National Cancer Centre Singapore (NCCS) and the University of California San Francisco (UCSF) Brain Tumor Center.
In December 2022, the results of collaborative research with NCCS on the therapeutic efficacy of BCV in the treatment of NK/Tcell lymphoma, for which no effective treatment is currently available, were presented by Dr. Jason Chan at the 64th American
Society of Hematology (ASH) Annual Meeting in New Orleans. Additionally, in June 2023, the results of its research collaboration
with NCCS on BCV were presented at the 17th International Conference on Malignant Lymphoma (ICML) in Lugano, Switzerland.
In April 2024, the anti-tumor effect of brincidofovir on B-cell lymphoma was presented orally at the AACR Annual Meeting
2024, held in San Diego, California.
In September 2022, Chimerix announced the close of the sale of its brincidofovir business to Emergent BioSolutions(headquartered in Maryland, USA). The sale does not affect our exclusive worldwide license of the rights for development,
manufacturing, and marketing of BCV in all indications except orthopox diseases.
In March 2024, the group established a subsidiary, SymBio Pharma Ireland Limited (Dublin, Ireland), after which orphan drug
designations for the prevention of adenovirus and cytomegalovirus infections in immunocompromised patients were transferred tothe subsidiary from Emergent BioSolutions Ltd.
(b)Anticancer agents: SSyB L-1701 (RTD formulation), and SyB L-1702 (RI administration) (generic name: bendamustinehydrochloride or bendamustine hydrochloride hydrate, trade name: TREAKISYM®)
In February 2022, clinical trials on the safety of RI administration were completed and a partial change to our marketing
authorization was approved to permit the use of RI injection for all indications approved for the RTD formulation.
The Group continues to actively conduct further research on TREAKISYM®, such as ongoing joint research with the Universityof Tokyo and Kyoto University, to explore new potential uses and development of the drug.

―3―(c) Anticancer agents: SyB L-1101 (intravenous formulation) and SyB C-1101 (oral formulation) (generic name: rigosertib
sodium)Rigosertib is in-licensed from Onconova Therapeutics, Inc. (head office: Pennsylvania, U.S.), .The Group is collaborating with
the University of Tokyo to conduct research to identify new potential indications or applications for the drug either alone or in
combination with other existing drugs (including TREAKISYM®).
In April 2024, Onconova Therapeutics and Trawsfynydd Therapeutics, Inc. merged to form Traws Pharma, Inc. (head office:Pennsylvania, U.S.).

(iii) Business outside JapanIn April 2024, the Group appointed John Houghton as CEO and President of SymBio Pharma USA, Inc., to further strengthen theGroup’s global development structure and make SymBio Pharma USA, Inc. the driving force for our international clinical trials as
we move forward with our global development plan for IV BCV, further accelerate development in Europe, the U.S., Japan, and the
U.K., and develop activities to achieve commercialization.

(iv) Licensing of new drug candidates
As a biopharmaceutical company with profitability and growth potential, the Group will promote the global development of BCV,an antiviral drug introduced in 2019, and will continue to evaluate promising new drug candidates for in-licensing. Through these
efforts, the Group aims to create medium-to long-term business value.

(2) Summary of financial position
Total consolidated assets at the end of the first quarter of the current fiscal year stood at 7,716,432 thousand yen. Current assets
totaled 7,628,716 thousand yen, mainly consisting of cash and deposits of 6,545,897 thousand yen, accounts receivable of 472,730
thousand yen, and merchandise and finished goods of 172,540 thousand yen. Noncurrent assets totaled 87,716 thousand yen, mainly
consisting of leasehold and guarantee deposits .
Total liabilities were 718,352 thousand yen. Current liabilities totaled 714,590 thousand yen, mainly consisting of 663,677 thousand
yen in accounts payable-other. Non-current liabilities were 3,762 thousand yen, in liabilities for retirement benefits accounted.
Total net assets totaled 6,998,079 thousand yen. This includes 18,222,653 thousand yen in capital stock, 18,197,544 thousand yen
in capital surplus, and 293,304 thousand yen in share acquisition rights.
As a result, the equity ratio was 86.9%.

(3) Explanation of consolidated earnings forecasts and other forward-looking information
The NHI price of TREAKISYM® has declined due to a reduction in the premium for new drug creation following the launch ofgeneric drug products. As a result, sales in the first quarter were lower than expected due to the impact of inventory adjustments prior
to the application of the new drug price which became effective in April 2024.
A downward trend in prescriptions per case of malignant lymphoma due to the epidemic in infectious diseases is expected tocontinue, and the market share of generic drug products is expected to gradually increase going forward. As it is expected to be difficult
to recover the sales decline of the first quarter from the second quarter onward, the Company has lowered its sales forecast for the
fiscal year ending December 31, 2024, by 1,018 million yen (a decrease of 28.0%) to 2,623 million yen.
Although R&D expenses are expected to be 3,409 million yen (up 201 million yen from the previous forecast) due to steady progressin clinical trials, selling, general and administrative expenses were generally in line with the forecast due to a review of other expenses.
As a result of the impact of the significant decrease in gross profit due to the decline in net sales, the Company has revised its forecasts
for operating loss of 3,702 million yen (a reduction of 865 million yen compared to the previous forecast), ordinary loss of 3,524
million yen (a reduction of 657 million yen compared to the previous forecast), and net loss attributable to owners of the parent of
3,628 million yen (a reduction of 758 million yen compared to the previous forecast).

―4―

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly consolidated balance sheet(Unit: thousands of yen)
FY 2023(as of December 31, 2023)

Q1 FY 2024
(as of March 31, 2024)

AssetsCurrent assets
Cash and deposits
Accounts receivable–trade
Merchandise and finished goods
Prepaid expenses
Income taxes refund receivable
Other

6,517,007

6,545,897

913,094
231,650

472,730
172,540

119,271

133,678
10,812－
301,504

293,055

8,082,526

7,628,716

Leasehold and guarantee deposits

87,71687,716

Total investments and other assets

87,71687,71687,716

8,170,243

7,716,432

853,825
16,784

663,677

Other

18,47467,540－50,913

Total current liabilities

956,625

714,590

3,709

3,762

3,709
960,334

718,352

Total current assets
Non-current assets
Investments and other assets

Total non-current assets
Total assets

87,716

Liabilities
Current liabilities
Accounts payable
Provision for office transfer
Income taxes payable－Non-current liabilities
Liabilities for retirement benefits
Total non-current liabilities
Total liabilities

―5―

3,762

(Unit: thousands of yen)
FY 2023(as of December 31, 2023)

Q1 FY 2024
(as of March 31, 2024)

Net assets
Shareholders’ equity
17,952,692

18,222,653

17,927,584(28,852,303)

18,197,544(29,629,217)(89,122)(89,450)

6,938,849

6,701,530

Foreign currency translation adjustment(5,985)

3,244

Total accumulated other comprehensive income(5,985)

3,244

Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets―6―

277,044

293,304

7,209,909

6,998,079

8,170,243

7,716,432

(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income
Quarterly consolidated statement of income for the first three months of FY 2024
Q1 FY 2023
(from January 1, 2023
to March 31, 2023)
Net sales(Unit: thousands of yen)
Q1 FY 2024
(from January 1, 2024
to March 31, 2024)
597,865
126,763

Gross profit

1,544,813
301,555
1,243,257

Selling, general and administrative expenses

1,192,011

1,277,804

51,246(806,702)

142

770
84,398

Cost of sales

Operating profit (loss)

471,101

Non-operating income
Interest income
Foreign exchange gains

2,992
－

260

3,135

85,430Commission expenses
Share issuance costs

5,712

2,548

343

3,443

Total non-operating expenses

6,055

5,992

48,326(727.265)

Gain on reversal of share acquisition rights

2,496

－

Total extraordinary income

2,496

－

–

49,182
49,182

Profit (loss) before income taxes–
50,823

Income taxes - current
Income taxes - deferred

3,547
42,820950

Total income taxes

46,367

950

Profit (loss)

4,455(777,397)

Profit attributable to non-controlling interests

–
4,455

–
(777,397)

Other
Total non-operating income
Non-operating expenses

Ordinary profit (loss)
Extraordinary income

Extraordinary loss
Impairment loss
Total extraordinary loss

Profit (loss) attributable to owners of parent―7―(776,447)－

Quarterly consolidated statement of comprehensive income for the first three months of FY 2024

4,455

(Unit: thousands of yen)
Q1 FY 2024
(from January 1, 2024
To March 31, 2024)(777,397)

75

9,713

Q1 FY 2023
(from January 1, 2023
to March 31, 2023)
Profit (loss)
Accumulated other comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income

75

9,713

4,531

(767,683)

4,531(767,683)––

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests―8―

(3) Notes to quarterly consolidated financial statements(Notes to going concern assumptions)None to be reported.

(Notes in case of significant changes to shareholders’ equity)
In the first three months of FY 2024, the Company issued new shares due to the exercise of some of share acquisition rights
pertaining to the 41rd, 49rd, 53rd and 55th warrants. As a result, share capital increased by 3,709 thousand yen and capital surplus
increased by 3,709 thousand yen. The total value of treasury shares increased 327 thousand yen as a result of share repurchases. In
addition, the Company received payment for the third-party allotment of new shares from EVO FUND on February 7 and March 18,
2024, increasing capital stock by 266,250 yen and capital surplus by 266,250 thousand yen.
As a result, as of March 31, 2024, consolidated share capital was 18,222,653 thousand yen, capital surplus was 18,197,544
thousand yen, and the total value of treasury shares was 89,450 thousand yen.

(Accounting policy changes)
None to be reported.
(Significant subsequent events)
1. Issuance of the 61th warrant (stock options)On April 19, 2024, the Company issued and granted share acquisition rights in the form of stock options to six directors (excluding
directors who are Audit & Supervisory Committee Members) as indicated below. This issuance of share acquisition rights was
pursuant to a resolution approved by the Board of Directors on March 22, 2024.
Number of share acquisition rights

7,832 units

Class and number of shares to be issued upon the exercise ofshare acquisition rights

195,800 common shares

Issue price of share acquisition rights and total issue amountIssue price: 4,325 yen
Total issue amount: 33,873,400 yen

Amount to be paid in for share acquisition rights

Amount to be paid in per share: 173 yen
As the amount to be paid for the stock acquisition rights isprovided to the recipient in lieu of compensation, each
recipient is required to waive his or her claim to thecorresponding amount of compensation against theCompany.

Exercise price of share acquisition rights

Exercise price per share: 1 yen

Exercise period of share acquisition rights

From March 23, 2027 to March 22, 2034

Conditions for the exercise of share acquisition rights

Increase in share capital in case of the issuance of sharesthrough the exercise of share acquisition rights

Matters regarding transfer of share acquisition rights(1) Individuals to whom these share acquisition rights are
granted must hold a position as a director or employee of
the Company or with an affiliate to exercise these rights.
However, this will not apply to directors at the Company
or its affiliates who have left their positions due to expiryof their terms of offices, employees at the Company or its
affiliates who have retired as a result of reachingretirement age or directors or employees at the Company
or its affiliates who have been deemed to have left theirpositions or retired amicably by the Board of Directors.
(2) Other conditions will be established in the Share
Acquisition Rights Allocation Agreement concluded
between the Company and the employees.
Increase in share capital related to the issuance of sharesthrough the exercise of share acquisition rights shall equal toone half of the maximum amount by which share capital canbe increased as calculated in accordance with Article 17 of
the Ordinance on Company Accounting. Any fraction lessthan one yen shall be rounded up to the nearest one yen.
Transfers will require approval from the Board of Directors.

―9―

2. Issuance of the 62th warrant (stock options)On April 19, 2024, the Company issued and granted share acquisition rights in the form of stock options to 103 employees as
indicated below. This issuance of share acquisition rights was based on a resolution by the Board of Directors on March 22, 2024.
Number of share acquisition rights

43,040 units

Class and number of shares to be issued upon the exercise ofshare acquisition rights

1,076,000 common shares

Issue price of share acquisition rights and total issue amountIssue price: 4,325 yen
Total issue amount: 186,148,000 yen

Amount to be paid in for share acquisition rights

Exercise price per share: 173 yen
As the amount to be paid for the stock acquisition rights isprovided to the recipient in lieu of compensation, each
recipient is required to waive his or her claim to thecorresponding amount of compensation against theCompany.

Exercise price of share acquisition rights

Exercise price per share: 1 yen

Exercise period of share acquisition rights

From March 23, 2027 to March 22, 2034

Conditions for the exercise of share acquisition rights

Increase in share capital in case of the issuance of sharesthrough the exercise of share acquisition rights

Matters regarding transfer of share acquisition rights(1) Individuals to whom these share acquisition rights are
granted must hold a position as a director or employee of
the Company or with an affiliate to exercise these rights.
However, this will not apply to directors at the Company
or its affiliates who have left their positions due to expiryof their terms of offices, employees at the Company or its
affiliates who have retired as a result of reachingretirement age or directors or employees at the Company
or its affiliates who have been deemed to have left theirpositions or retired amicably by the Board of Directors.
(2) Other conditions will be established in the Share
Acquisition Rights Allocation Agreement concluded
between the Company and the directors.
Increases in share capital related to the issue of shares throughthe exercise of share acquisition rights shall be equal to one
half of the maximum amount by which share capital can beincreased as calculated in accordance with Article 17 of theOrdinance on Company Accounting. Any fraction less than
one yen shall be rounded up to the nearest one yen.
Transfers will require approval from the Board of Directors.

―10―

3. Execution of agreement establishing share issuance program and issuance of new shares by way of third-party allotment
On October 6, 2023 (the “Initial Press Release”), the Company announced that the Company’s

Board of Directors, at a meeting

held on the same date, had resolved to enter into an agreement with EVO FUND (the “Allottee”) to set up an equity issue program(the “Agreement to Set up an Equity Issue Program”), and based on the equity issue program established under the Agreement to Set
up an Equity Issue Program (the “Program”), to issue new shares in five tranches (shares issued to the Allottee, whether individuallyor collectively, under the Program are referred to as the “Shares”).
The Company is authorized to issue up to a total of 6,000,000 ordinary shares by way of third-party allotment to the allottees in
the period from 25 October 2023 to 3 April 2024, with ordinary shares to be issued by way of a total of five allotments, from the firstto the fifth allotment.
As at the date of submission, the new shares to be issued by way of third-party allotment are as follows.
(5th allotment)
Payment was completed on April 19, 2024
1Class and Numbers Shares Offered

1,050,000 common shares

2

Issue Price

187 yen per share

3

Capital inclusion amount

93.5 yen per share

4

Total Issue Price

196,350,000 yen

5Increases in Capital Stock and Legal Capital Surplus

98,175,000 yen

6

Allotment resolution date

April 3, 2024

7

Deadline for Application

April 19, 2024

8

Due Date of Payment

April 19, 2024

9

Allottee

EVO FUND(1) Development

funds

for

antiviraldrugbrincidofovir (direct expenses(2) Development funds for antiviral drug
10

Specific uses

brincidofovir (indirect expenses)(3) Investment in new in-licensing and M&A forthe purpose of securing long-term growth
opportunities.

―11―