Notice Regarding Basic Agreement on Succession of Generic Pharmaceuticals Business

Overview of the Basic Agreement

Kyorin Pharmaceutical Co., Ltd. concluded a basic agreement on April 24, 2026, to transfer the generic pharmaceuticals business and related factories of its consolidated subsidiary, Kyorin Remedio Co., Ltd., to Pharmaceutical Co-Creation Corporation (provisional name), which will be established by joint investors led by Daito Co., Ltd. The business subject to succession excludes the Authorized Generic business and includes the generic pharmaceuticals business and both factories, with the succession planned for April 1, 2027.

Background of the Business Succession and Future Outlook

Based on its long-term vision 'Vision 110', the company is focusing management resources on its new pharmaceuticals business, while considering challenges in the generic pharmaceuticals industry such as supply instability and deteriorating profitability. The company decided on this succession to ensure stable supply and establish a sustainable business foundation for the generic pharmaceuticals business. Going forward, maintaining employee employment and labor conditions and stable supply will be the basic policy, and discussions with Daito and others toward concluding final contracts will continue. The impact on consolidated earnings is currently being examined and will be disclosed as necessary.