Notice on Revision of Consolidated Earnings Forecast for the Fiscal Year Ending March 2026 Due to Achievement of Milestone and Receipt of Milestone Income under License Agreement with Johnson & Johnson

Overview of Earnings Forecast Revision

Kaken Pharmaceutical Co., Ltd. achieved a milestone on April 1, 2026, under its license agreement with Johnson & Johnson. However, the initially planned milestone income of 70 million USD (approximately 11.1 billion yen) will be recognized not in the fiscal year ending March 2026 but postponed to the fiscal year ending March 2027. Accordingly, the consolidated earnings forecast for the fiscal year ending March 2026 has been downward revised to net sales of 76,900 million yen (down 10.9% from previous forecast), operating income of △900 million yen, ordinary income of △200 million yen, and net income attributable to owners of parent of 2,100 million yen (down 8.7%).

Background of Revision and Dividend Outlook

In addition to the timing change of milestone income recognition, this revision reflects adjustments due to efficiency improvements in R&D investments aimed at medium- to long-term growth and the impact of sales of policy holding shares based on the reduction policy announced in May 2024. Meanwhile, there is currently no change to the dividend forecast for the fiscal year ending March 2026.