(Correction: Numerical Data Revision) Partial Correction of the “Financial Summary [IFRS] (Consolidated) for the Fiscal Year Ending December 2025”

Overview of Performance

In the consolidated fiscal year ending December 2025, revenue increased to JPY 26,840 million (up 13.7% YoY), but the company recorded an operating loss of JPY 3,471 million and a net loss attributable to owners of parent of JPY 4,244 million. Pharmaceutical business revenue increased to JPY 19,158 million (up 4.7% YoY), but profits were pressured by increased stock-based compensation expenses and a reversal decline in foreign exchange gains related to the settlement of long-term loans to affiliates in the previous consolidated fiscal year. The medical devices business achieved significant revenue growth to JPY 7,681 million (up 44.7% YoY) and recorded an operating profit of JPY 533 million. Total assets strengthened to JPY 83,791 million (up 16.5% YoY) and total equity rose to JPY 51,842 million (up 30.5% YoY), reinforcing the financial base.

Outlook

For fiscal year 2026, steady revenue and profit growth are expected in both the pharmaceutical and medical device businesses. In particular, the pharmaceutical business plans NDA submission of new drug candidate F351 in China and the start of clinical trials in the U.S. The Medtech business anticipates increased revenue and profit from new product launches and the acquisition effect of ZOO LABO. However, due to uncertainties such as the timing of F351 approval, pricing, and R&D progress at Cullgen, earnings forecasts are not disclosed at this time.