September 17, 2019
Shin Nippon Biomedical Laboratories, Ltd.
(The First Section of the Tokyo Stock Code Number: 2395)
Representative:
Chairman and President
Ryoichi Nagata
Contact:
Ken Takanashi
Senior Executive Vice-President（TEL：+81-3-5565-5001）

Notice of Stock Listing of the SNBL’s Important Investee (Satsuma Pharmaceuticals, Inc.)
Shin Nippon Biomedical Laboratories, Ltd. (“SNBL”) hereby announces that Satsuma Pharmaceuticals, Inc.
(“Satsuma”), located in California, USA, was approved for listing on The Nasdaq Stock Market on September 11,
2019 and will commence trading on September 13, 2019. Satsuma was established as a subsidiary of SNBL in 2016,at which time SNBL licensed its nasal drug delivery technology to Satsuma. Satsuma is now an important investeeof SNBL. The details of the stock listing are as follows:
1. Outlines of Satsuma’s Listing and Capital Increase through Public Offering(1)Company Name

(2)

Location of Head Office(3) TitleandName
Representative(4) Description of Business

Satsuma Pharmaceuticals, Inc.
400 Oyster Point Boulevard, Suite 221,
South San Francisco, CA 94080
of President and CEO, John Kollins(5)

Date of Establishment

Clinical-stage biopharmaceutical company developing a novel
therapeutic product for the acute treatment of migraine
June 21, 2016

(6)

Date of Listing

September 13, 2019(7)

Initial Public Offering Price

US$15.00 per share(8)

Number of issued shares

5,500,000 shares(*)(9)

Total number of issued shares 16,605,256 shares(*)(10) Gross proceeds

US$82,500,000(*)(11) Number of shares held by and 1,561,719 shares shareholding ratio: 9.4% (*)
shareholding ratio of Company(*)excluding exercise by the underwriters of their option to purchase an additional 825,000 shares
2. Impact on Business Performance and Financial Position
The market value of Satsuma’s stock held by SNBL (1,561,719 shares), including shares which SNBL appliedfor this public offering, is US$23,425,785 (based on the IPO price).
At the IPO price at the time of listing, compared to before listing, the investment securities and net assets ofSNBL are expected to increase by 2,216 million yen and 1,278 million yen, respectively.
In addition, we recognize that the impact of this IPO on our business performance will be minor, but if the IPO
is deemed to have an impact on our business forecast, we will promptly disclose the information.
3. Business Relationship with Satsuma
SNBL has a license agreement with Satsuma pursuant to which SNBL has assigned to Satsuma certain patentrights and know-how that are directed to SNBL’s proprietary nasal drug delivery technology, including its
proprietary nasal delivery device and formulation technologies, for use with dihydroergotamine (DHE) mesylate.
If Satsuma’s development of its lead product candidate, STS101* for the treatment of migraine, goes smoothly andaccording to its business plan (which includes an expected New Drug Application filed with the FDA by the endof 2021) and the drug is approved by the FDA and commercially launched, a royalty based on the sales of STS101

will be paid to SNBL.
In addition, if this royalty is deemed to have an impact on our business performance, we will promptly disclose
the information.
* About nasal migraine therapeutics STS101
Based on reported prevalence data, there are approximately 39 million migraine patients in the United Statesand more than 100 million migraine patients in Europe. Migraine is most prevalent among adults ages 18 - 44years old. There is a growing need for medication that can quickly relieve acute migraine attacks.
Among the existing drugs for the acute treatment of migraine, the predominant therapy is triptans. However,triptans are effective only for certain patients or certain types of migraines, have slow and variable pain relief,
and may produce various adverse reactions. Moreover, over-the-counter DHE nasal drops (liquid) presentchallenges, including high variability and slow absorption, resulting in unreliable clinical performance and suboptimal therapeutic response for many patients.
STS101 under development by Satsuma is designed to overcome the weakness of the existing DHE drugs
while providing the benefits of DHE as reliable and convenient DHE product. In a Phase 1 clinical trial
conducted by Satsuma, STS101 demonstrated rapid and sustained DHE plasma concentrations, lowpharmacokinetic variability, and a favorable safety and tolerability profile. In July 2019, Satsuma initiated its
Phase 3 EMERGE efficacy trial of STS101 and it expects to report topline data in the second half of 2020.