FY2023 Business Summary(Year Ended March 31, 2024)（TSE 4539）

I. FY2023 Business Results

1Overview 1
Result of FY2023
Consolidated sales: ¥30,748 million, down 2.6% YOY・Diagnostics saw a significant increase in sales of 47.5% YOY.
・In the sales of pharmaceutical products to medical institutions, the impact of NHI price revisions anddiscontinued products, as well as the impact of shipment adjustments at the end of the previous fiscal year,
lingered longer than expected through the second quarter, but that have been on a recovery trend since thethird quarter.
・In the fourth quarter, sales of allergy-related products fell short of expectations due to lower than estimatedpollen levels, and the fact that new drug out-licensing that was expected to be contracted in the second halfof the year did not go through.
Profits: Loss recorded
・Despite efforts to reduce ordinary expenses and other factors, the main impact was lower sales, as well as ahigher cost of sales ratio due to the NHI price revision and R&D expenses for future growth.
Forecast for FY2024
Consolidated sales: ¥31,500 million, up 2.4% YOY
・In FY2024 as well, the Company plans to grow DropScreen installations, and expects a 28.0% YOY
increase in sales for diagnostics.
・Thanks to Japan’s unprofitable drug repricing, the impact of NHI price revisions for generic drugs is likely
to be mitigated compared with the previous term (approx. -8% → approx. -4%), and sales to medical
institutions are expected to stay basically flat YOY.
2

Overview 2
Operating profit: ¥200 million (vs. an operating loss of ¥494 million in the previous year)
・Profit is expected to improve due to a better sales mix, including increased revenue from diagnostics.
・We expect to return to profitability despite increasing R&D expenses for new drugs, generic drugs, anddiagnostics by ¥374 million.
Shareholder Returns
・We plan to maintain dividend payments of ¥50.0 per share, based not only on our shareholder return policythat emphasizes stable shareholder returns, but also to promote understanding that continued strategic
investment in new drugs and other areas is essential for the Group's sustainable growth.
Recent Topics
・The number of DropScreens installed in Japan exceeded 1,000 in FY2023 (vs. 500 at previous fiscal yearend), with the goal of reaching 2,000 by FY2025.
・NC-2800 has completed Phase 1 in FY2023 and preparations are currently underway to begin Phase 2a.
・DFP-14323 commenced Phase 3 in February 2024, and DFP-17729 has completed Phase 2, withpreparations for the next phase underway.

3

Sales and Income to Year-on-Year(¥mn)
FY2022

Net sales
Pharmaceutical products segment
Generics, proprietary products
and new drugs
Diagnostics
Others segment
Cost of sales
SG&A expenses
R&D expenses
Operating profit/loss
Ordinary profit/1oss
Net profit attributable toowners of parent/loss

FY2023

Amount31,559

% of
Sales
100.0

Amount30,748

% of
Sales
100.0

Change
(810)

YOY
(%)
(2.6)

30,54396.8

29,611

96.3

(931)

(3.1)

26,1482,780
1,015
23,374
8,425

82.9
8.8
3.2
74.1
26.7

24,093
4,101
1,137
23,010
8,232

78.4
13.3
3.7
74.8
26.8

(2,055)
1,321
121
(363)
(193)

(7.9)
47.5
12.0
(1.6)
(2.3)

2,419
(241)
58

7.7
－
0.2

2,325
(494)
(219)

7.6
－
－

(93)
－
(277)

(3.9)
－
－

339

1.1

(180)

－

(520)

－

4

Sales and Income to Full Year Forecasts(¥mn)
FY2022

Net sales
Pharmaceutical products segment
Generics, proprietary products
and new drugs
Diagnostics
Others segment
Cost of sales
SG&A expenses
R&D expenses
Operating profit/loss
Ordinary profit/loss
Net profit attributable toowners of parent/loss

FY2023
1

Amount31,559

% of
Sales
100.0

% of
Revised
Sales
Forecasts
100.0
30,748－96.3

Amount30,74830,54396.8

29,611

26,1482,780
1,015
23,374
8,425

82.9
8.8
3.2
74.1
26.7

24,093
4,101
1,137
23,010
8,232

78.4
13.3
3.7
74.8
26.8

2,419
(241)
58

7.7
－
0.2

2,325
(494)
(219)

339

1.1

(180)

2
AchivedInitial(%)
Forecasts
100.0
32,700－－

Achived
(%)
94.0
－

－
－
－
－
－
－
100.0
100.0

25,870
4,500
－
－
－

93.1
91.1
－
－
－

7.6
－
－

－
－
－
－
－
－
(494)
(219)

2,820
200
100

82.5
－
－

－

(180)

100.0

60

－

1. Issued on May 7, 2024.
2. Issued on May 12, 2023.

5

Pharmaceutical Sales to Year-on-Year
Generics, Proprietary Products and New Drugs(¥mn)
FY2022

Amount26,148

Total
Generics
To medical institutions
To other makers*
Proprietary products and new drugs
UralytOthersChemiphar, ODM Generics
Total
Generics (ODM)

FY2023
% of
Sales
100.0

24,803
23,698
1,105
1,345
575
769

94.9
－
－

25,881
1,078

Amount24,093

% of
Sales
100.0

Change(2,055)

YOY
(%)
(7.9)
(8.2)
(6.5)
(44.0)
(1.4)
(2.0)
(0.9)

(8.1)
(6.4)

94.5
－
－

5.1
－
－

22,76622,148
618
1,326
563
762

5.5
－
－

(2,037)(1,550)
(486)
(18)
(11)
(6)

－
－

23,775
1,008－－(2,106)(69)* Includes exports.

6

Pharmaceutical Sales to Full Year Forecasts
Generics, Proprietary Products and New Drugs(¥mn)
FY2023

FY2022
Amount26,148

Total
Generics
To medical institutions
To other makers*
Proprietary products and new drugs
UralytOthersChemiphar, ODM Generics
Total
Generics (ODM)

% of
Sales
100.0

24,803
23,698
1,105
1,345
575
769

94.9
－
－

25,881
1,078

Amount24,093% ofInitialSales
Forecasts
100.0
25,870
94.5
－
－

5.1
－
－

22,76622,148
618
1,326
563
762

－
－

23,775
1,008

Achived
(%)
93.1

5.5
－
－

24,64023,830
810
1,230
530
700

92.4
92.9
76.4
107.8
106.4
108.9

－
－

25,670
1,030

92.6
97.9

* Includes exports.

7

Sales Distribution by Launch Year(¥mn)
FY2022
Amount
FY2019 and before
FY2020
FY2021

22,6071,278
414

FY2023Distrib.
(%)

Amount

91.1
5.2
1.7

20,172
1,114
372

Distrib.
(%)

YOY
(%)

Product Lineup

88.6(10.8)

4.9

・Memantine(12.8) ・Celecoxib

1.6

・Eszopiclone(10.2) ・Duloxetine

FY2022

502

2.0

930

4.1

・Febuxostat
85.1 ・Esomeprazole

FY2023

－

－

177

0.8

－ ・Azilsartan

Total

24,803100.0

22,766

100.0

(8.2)

8

Balance Sheet(¥mn)
FY2022
March 31,2023

FY2023
March 31,2024

ChangeReason for changes
Cash and deposits

Current assets

33,436

31,836

Non-current assets

15,134

17,712

Total assets

48,57149,548Acquisition of shares and(1,329) payment for construction.

Notes and accounts
receivable―trade, andcontract assets(1,600) Inventories

272
(32)

Construction inprogress

2,242

2,577 Investment securities*

Third-party share allocation
681 by Delta-Fly Pharma, Inc.

977
Purchase payables

Current liabilities
Non-current liabilities

14,766
15,27013,786
17,301

Current portion of long-term(980) borrowings
2,030 Long-term borrowings

Total net assets

18,534

18,460(73)

Total liabilities and net assets

48,57149,548977(1,965) YOY decrease in purchases.
150
1,393

*

* Additional installation at Building No. 3 of our Tsukuba Factory.
9

Cash Flow
(¥mn)

(¥mn)

10

Expenditure and Per Share Information
Expenditure(¥mn)
FY2022

Capital expenditure
Depreciation and amortization

FY2023

AmountAmount

573
1,500

2,747
1,459

YOY
(%)

Forecast

Usage
Rate (%)

3,700
1,450

74.3
100.7

378.9
(2.7)

Note to increase in capital expenditure:
We expended for additional installation at Building No. 3 of our Tsukuba Factory to meet the need forincreased production.

Per Share Information

Earnings per share
Book value per share
Dividends per share
Dividend payout ratio (%)(¥)
FY2022
AmountAmount94.07
5,130.65(50.14)
5,116.02

50.00
53.2

50.00
－

FY2023
Change(144.21)(14.63)－－

Forecast
16.62
－
50.00
300.8

11

Indexes
FY2019FY2020

FY2021

FY2022

FY2023

Cost of sales ratio (%)
SG&A Expense to sales ratio (%)
Operating profit to sales ratio (%)
R&D expenses to sales ratio (%)
EBITDA (millions of yen)

60.5
38.4
1.1
6.8
1,704

63.7
34.5
1.8
6.3
2,099

72.1
25.4
2.5
7.4
2,727

74.1
26.7
－

74.8
26.8
－

7.7
1,682

7.6
1,391

Current ratio (x)Debt-to-equity ratio (%)
Equity ratio (%)

2.13x
85.2
37.9

2.16x
84.0
38.2

2.00x
78.9
37.4

2.26x
81.0
38.1

2.31x
90.5
37.3

Return on equity (%)
Net income ratio (%)
Total asset turnover (%)
Financial leverage (%)

2.5
1.4
68.4
267.1

2.8
1.6
67.8
258.3

3.8
2.2
67.3
261.2

1.8
1.1
64.4
264.7

－
－
62.7
265.8

Dividend payout ratio (%)

41.2

36.3

25.7

53.2

－

12

II. FY2024 Forecasts

13

Highlights
Sales
Consolidated sales: ¥31,500 million, up 2.4% YOY・Following on from the previous term, we are targeting 500 DropScreen installations, and we expect
diagnostics sales to increase 28.0% YOY to ¥5,250 million.
・We expect sales of generics to medical institutions remain basically flat YOY due to NHI price revisions,although volume-based sales of generic drugs should continue to enjoy the recovery from the previous year.
ProfitOperating profit: ¥200 million (vs. an operating loss of ¥494 million in the previous year)
・Profit is expected to improve due to higher sales of diagnostics and a better sales mix achieved by stronger
sales efforts on profitable products in generics.
・Operating profit is expected to improve by ¥694 million, even after factoring in increased R&D budgets for
new drugs, generic drugs and diagnostics as well.

14

Sales and Income(¥mn)
FY2023

Net sales
Pharmaceutical products segment
Generics, proprietary products
and new drugs
Diagnostics
Others segment
Cost of sales
SG&A expenses
R&D expenses
Operating profit/loss
Ordinary profit/loss
Net profit attributable toowners of parent/loss

FY2024 (Forecast)Amount30,748

% of
Sales
100.0

% of
Sales
100.0
－

YOY
(%)
2.4
－

29,611

96.3

Amount31,500－24,093
4,101
1,137
23,010
8,232

78.4
13.3
3.7
74.8
26.8

23,620
5,250
－
－
－

75.0
16.7
－
－
－

(2.0)
28.0
－
－
－

2,325
(494)
(219)

7.6
－
－

2,700
200
100

8.6
0.6
0.3

16.1
－
－

(180)

－

60

0.2

－

15

Pharmaceutical Sales
Generics, Proprietary Products
FY2023
Amount24,093

Total
Generics
To medical institutions
To other makers*
Proprietary products and new drugs
UralytOthersChemiphar, ODM Generics
Total
Generics (ODM)

FY2024 (Forecast)
% of
Sales
100.0

Amount23,62022,76622,148
618
1,326
563
762

94.5
－
－
5.5
－
－

22,47022,030
440
1,150
480
670

23,775
1,008－－

23,490
1,020

% of
Sales
100.0

YOY
(%)
(2.0)

95.1
－
－
4.9
－
－

(1.3)
(0.5)
(28.9)(13.3)(14.9)(12.1)

100.0
4.3

(1.2)
1.1

* Includes exports.

16

Expenditure and Per Share Information
Expenditure(¥mn)
FY2023
AmountCapital expenditure
Depreciation and amortization

FY2024 (Forecast)AmountChange

2,747
1,459

3,410
1,490

24.1
2.1

Note to increase in capital expenditure:
We envision additional installation at our domestic factories for maintaining our quality assurance.

Per Share Information(¥)
FY2023
AmountEarnings per share
Book value per share
Dividends per share
Dividend payout ratio (%)(50.14)
5,116.02
50.00―

FY2024 (Forecast)AmountYOY (%)
16.63

33.51
―

50.00
300.7

0.00
―

―

17

Sales of Diagnostics■Sales of Diagnostics■Domestic target of DropScreen（Unit of equipment）（¥mn）

Up 47.5% YOY in FY2023.
We forecasts 28.0% YOY increase in FY2024.

Installed over 1,000 unit at the end of FY2023.

18

III. Management Strategy

19

Management Strategy: Three Main Areas of Business
Since 2000, the Nippon Chemiphar Group has been working to attain three principal goals.
In order to advance the themes of those goals, the Group has created three main areas ofbusiness: generics, diagnostics, and new drugs, with new drugs including alkalizing agents.
By applying the use of its areas overseas, the Group will lay the groundwork for sustained
growth and maximum corporate value.

New Drugs
Diagnostics
Generics
Develop a distinctive
generic drug business that
pursues quality

Expand business bydeveloping innovative
products based on coretechnologies cultivated in
the field of allergy

Continuously develop andmonetize groundbreaking
new drugs based on our
proprietary technologies
and know-how, including
alkalization therapy

Overseas business development
Realize a global presence by aggressively developing our three areas of business abroad
20

Roadmap
Many parallel activities leads to achieve each goal for three main areas of our business.
We show timeline of new methods from FY2021―2030.
Goal

Activity

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Expand domestic market. / Target of installation: 2,000 in FY2025. / Aim to achieve continuous business expansion through creating new series of measuring reagents.

Diagnostics

Launch of export overseas.

Expand sales of DropScreen/

Gradual expantion.

Create new version of equipment for domestic market and additional reagents for abroad.

DFP-17729: Develop anti cancer
agent
Alkalizer

Consider expanding applications toinclude additional chronic kidneydisease-related indications

Phase 1/2 forpancreaticcancerM ove to next phase

Evaluation and preparation.

Clinical data analysis/
addition of basic data

Application,
approval andlaunching

Investigation of CKD-related indications—Initiation of clinical trials

Agreements

NC-2800: Conduct phase 1 and 2a with
Sumitomo
trials; out-license

Application, approval
and launching

Licensee company will conduct
phase 2b and 3 trials.

Conduct phase 1 and 2a trials in accordance with AM ED’s CiCLE program

PharmaLicensee company is developing in China as a treatment for hyperuricemia and gout.

NC-2500: Out licencing activity byadditional indications
Drug
discovery

Overseasbusiness

Continue licencing activity by another indication.

NC-2600: Out licencing activity byadditional indications.

Realize licencing out targeting chronic cough.

NC-2700: Continue out licencing
activity.

Realize licencing out.

DFP-14323: Develop anti cancer
agent

Finished phase 2

From export to local development
and production

ASEAN, China,
M iddle East andAfrica:Licensee company will conduct clinical trials.

Began Phase 3

Target: Sell 14 products to five countries in FY2026.

Application, approval
and launching
Ongoing efforts aimed at expanding our product lineup andthe number of countries in which these products are sold.

21

Generic Drugs: Quality Assurance
To supply high-quality pharmaceuticals, it is essential to foster a culture that prioritizes quality.
As a manufacturer, we will continue to make continuous efforts to strengthen our quality assurance
system, as this is our fundamental responsibility.
＞Strengthening of groupwide quality assurance• We fulfill our fundamental responsibility as a pharmaceutical maker by maintaining our ceaseless efforts
targeting a stronger quality assurance system.
• To ensure quality control and production management of the highest standards, our quality assurance
efforts comply with good quality and good manufacturing practices.
• We conduct regular audits in accordance with ministerial ordinances and confirm that production
management and quality control are being performed in keeping with the three principles ofgood manufacturing practice.
＞Cultivating a quality culture• At the Nippon Pharmaceutical Industries Tsukuba Factory, our main
factory, we regularly conduct surveys on employee awareness andimplement a mentoring system.
• The survey on quality culture, which we previously conductedin our quality and manufacturing departments, will be expanded
to include all employees from FY2023.
22

Generic Drugs: Supply Chain
With strengthening our quality assurance system and production volume, we are promoting efficiency
throughout our supply chain.
＞Strengthen Supply Chain of Generic Drug
Development
Quality First,
Ensuring Stable Supply•From the development
stage, we work with the
manufacturing division
to ensure stable future
supply.
Improve likelihood of
successful development•Take on the challenge ofdeveloping andmanufacturing genericdrugs with difficult-toreplicate effects throughcollaboration withacademia, etc.

Procurement
Cutting costs•Shift to high-quality
and affordable APIs.
Securing stable supply•Having multiple APIs
suppliers.

Manufacture

Sales

Supports a diverse
Cutting costs•Expanding production range of sales channels
at the Vietnam factory. •Utilize diverse range ofsales channels withinboth the Company
Secure production
and its subsidiary NPI.
volume•By introducing new
For effective promotion
machines and•Pursuing faster PDCA
recruiting additional
cycle by sales force
staff.
automation system andapply AI technology.
Seamless transition
from development
to actual production

Undertakings at Group factories
・Domestic factories are increasing the number of workers and implementing
double and triple shifts on a process-by-process basis.
・Vietnam Factory: Introduced two-shift operations in FY2022. In FY2023,
plan to shift currently outsourced products to in-house production at ourVietnam Factory.
23

Details of DropScreen
DropScreen, our flagship clinical diagnostic product, has been won rave reviews from medical
professionals and patients alike since its launch in February 2020 for its ability to measure 41 items
from a single drop of blood without the need for a syringe.
＞Product Characteristics

Small-volume
blood sampling• Sample volume 20
μL• Comfortable forsmall children bysmall samples
extracted frompatients’ fingertips

Measuring time

Compactness

Ease of operation• Measured allergens
41• Measurement time
30 minutes• Compact designthat is the size of an
A3 sheet of paper• Water supply anddrainage equipment
unnecessary• Simple-to-use touchpanel• All-in-one reagent
cartridge

Reagent (right) andmeasuring instrument (left)of Drop Screen.
24

Enhancing DropScreen
With DropScreen, we are cultivating a new market for in-house allergy testing.
We set the goal of the number of installed in Japan reaching 2,000 by FY2025.

＞Target• Installed in Japan exceeded 1,000 in FY2023→Set the goal of reaching 2,000 by FY2025.

Domestic target of DropScreen（Unit of equipment）＞Overseas Market• We are developing it to overseas market andselecting candidate partner companies.
＞ Allergy diagnostics market*By in-house research• In Japan: ¥12 billion• Global: ¥280 billion(North America is the largest.)

In these markets, most testing is outsourced totesting centers. With DropScreen, we are creating a
new market with Point of Care Testing .
25

New drug development: Pipelines
In-house drug development＞ As of March 2024.

Item
NC-2500
NC-2600
NC-2700
NC-2800
DFP-17729
DFP-14323
CalvanDevelopment through alliances

Development by licensees

Function(Target)Preclinical

Phase 1

Phase 2Phase 3

XOR inhibitor(Hyperuricemia, gout)
P2X4 receptor antagonist(Neuropathic pain, chronic cough)URAT1 inhibitor(Hyperuriceia, gout)δ opioid receptor agonist(Depression/Anxiety)
Cancer microenvironment
improving agent (Pancreatic
Anti cancer agent(Non-small cell lung cancer)
α1β1 blocker(Huntington's disease)26

Pipelines ― In-house Development Pipelines①
NC-2500 (XOR inhibitor)
Stage
TargetFinished phase 1
Hyperuricemia, gout
Feature・Suppresses uric acid production by inhibiting
XOR.
・We confirmed its unique property to lowers
blood uric acid levels gradually in phase 1 trials,
suggesting it may rectify acute attack of gout.

Licensee
Originator
Nanjing Neiwa Faith Pharmaceutical Co., Ltd.
Nippon Chemiphar
Note・We signed a licensing agreement with Nanjing Neiwa Faith for gout andhyperuricemia in 2023, and preparations are underway to conduct clinical
trials in China.
・Preliminary data indicates that NC-2500 is effective against
neurodegenerative disorders. We are exploring the possibility of expanding
the application of NC-2500 to include such disorders.

NC-2600 (P2X4 receptor antagonist)
Stage
Finished phase 1

TargetNeuropathic pain and chronic coughFeature・Has a unique mechanism of action that inhibits
P2X4 receptors.

Originator
Joint developper
Joint research including Chemiphar N.A.

Note
・In vivo tests have confirmed its effectiveness against chronic cough, andwe are exploring the drug’s potential as a therapeutic agent with a newmechanism without side effects such as loss of taste.
・Conducting out-licensing activities.

27

Pipelines ― In-house Development Pipelines②
NC-2700 (URAT 1 inhibitor)
Stage
TargetFinished preclinicalHyperuricemia, gout
Feature・Promotes the excretion of uric acid from thebody by inhibiting the transporter URAT 1.

Originator
Joint developper
Joint research including Chemiphar―
Note・Non-clinical studies have shown that it's facilitates the excretion of uricacid but ameliorates aciduria, thereby helping to prevent kidney damage
and kidney stones, which are concerns when uric acid is excreted.

NC-2800 (Delta opioid receptor agonist)
Stage
TargetOriginator
Joint developper
Finished Phase 1
anxiety and depression Joint research including Chemiphar
Sumitomo Pharma Co., Ltd.
FeatureNote・The drug targets δ opioid receptors, and data suggest it has fewer ・AMED’s CiCLE project selected it for public
side effects such as dependence, tolerance, constipation, andfunding and support the development.
respiratory depression than opioid μ receptor agonists like morphine, ・Finished Phase 1 in FY2023 and prepareing forand strikes an excellent balance between safety and efficacy.
beginning Phase 2a trials.

28

Pipelines ― In-licensing Pipelines
DFP-17729 (Cancer microenvironment improving agent)
Stage
TargetFinished phase 2
Pancreatic cancer
Feature・By alkalizing tumor microenvironments, DFP17729 has been shown to suppress cancer cell
activities and facilitate the efficacy of anticancer
agents.

Originator
Developper
Delta-Fly Pharma, Inc. (DFP)DFP
Note・In 2020 we concluded a license agreement with DFP and acquired
exclusive rights to market in Japan.
・Phase 2 has now been completed and data analysis is underway for the
next phase, and we expect to able to apply for approval as a pancreaticcancer treatment around 2027. In the future, we will also consider drug’s
application to other types of cancer.

DFP-14323 (Anti-cancer agent)
Stage
TargetPhase 3
Non-small cell lung cancer
Feature・Strengthens the immune response of cancer
patients by binding to aminopeptidase N. In thisway, the substance reduces the dose required ofstandard anticancer drugs, and enhances theirefficacy without increasing the side effects.

Originator
Developper
Delta-Fly Pharma, Inc. (DFP) DFP
Note・In 2022 we concluded a license agreement with DFP and acquired
exclusive rights to market in Japan.
・Phase 3 trials began in February 2024. We expect to submit anapplication for approval by around 2029.

29

Multifaceted Development of Alkalizer
We are conducting multi-faceted development using alkalinization-related technologies and expertisethat we cultivated over many years through activities associated with our urine alkalizer, Uralyt.
＞Application of alkalization technologies
Uralyt• Gout• Hyperuricemia• Acidosis
Anti-cancer agent
DFP-17729 (forpancreatic cancer)

Conduct a wide range of activities
utilizing our alkalinization-related
technologies and expertise

For preventing progress ofchronic kidney disease
We are seeking possibility to takeadditional indication utilizing theresults of CKOALA study.

Supplement
We are currently
considering future productdevelopment utilizing thedata obtained. We also plan
to deploy branding.

30

Oversea BusinessWe currently have approval for eight products in four countries: South Korea, China (including
Hong Kong), Thailand and Vietnam. We plan to expand to sell fourteen products in fivecountries until FY2026.
＞Initiatives for the launch of approved products
Rebamipide tablet in Vietnam
Obtained approval and received Group 1 status in September
2023, which allows the drug to be sold at the highest drug priceunder the country's bidding system. Leveraging this advantage,
we are expanding our marketing to hospital and pharmacy
chains through local wholesalers.
Febuxostat tablet 80mg in Vietnam
Approval is expected to be obtained in March 2024, andshipments are expected within this fiscal year.
Although this dosage has not yet been released in Japan, we
have had high-volume sales overseas and we are considering
expansion to neighboring countries.
Epinastine Hydrochloride Tablets in China
Plan to start selling in FY2024.

＞Business development in the
Middle East and Africa• We conducted market research in the
Middle East and Africa, aimed atachieving local sales of generic drugs,
with advice from the World Bank Group's
International Finance Corporation (IFC)
and its network.
• We are currently narrowing down target
countries and partners and are in
negotiations regarding several specificitems to be sold locally.

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For further information contact:
Public Relations Department, Nippon Chemiphar Co., Ltd.
E-mail: ir@chemiphar.co.jp

Note about Forward-looking Statements and Forecasts
Statements made in this Highlights of Business Results, with respect to current plans, estimates, strategies and beliefs, and otherstatements of Nippon Chemiphar that are not historical facts are forward-looking statements about the future performance ofNippon Chemiphar.
These statements are based on management’s current assumptions and beliefs in light of the information currently
available to it and involve known and unknown risks and uncertainties. Consequently, undue reliance should not be placed onthese statements.
Nippon Chemiphar cautions the reader that a number of important factors could cause actual results to differ materiallyfrom those discussed in the forward-looking statements.

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