Daito Pharmaceutical Co.,Ltd. to Establish Jointly Funded Company for Succession of Kyorin Pharmaceutical’s Generic Drug Business and Conclude Share Transfer Agreement

Overview

Daito Pharmaceutical Co.,Ltd., Meiji Seika Pharma Co.,Ltd., and Development Bank of Japan Inc. will establish a jointly funded company, "Pharmaceutical Co-creation Organization Co., Ltd.", to succeed Kyorin Pharmaceutical Co.,Ltd.'s generic drug business. The co-creation organization aims to achieve high quality and stable supply through integrated operations of manufacturing, quality assurance, and supply chain. Through the share transfer, the co-creation organization is scheduled to acquire the shares of the company subject to this transaction, and as a prior transaction an absorption-type company split will be implemented to transfer the target business (excluding the AG business).

Schedule and Impact

The signing of this agreement is scheduled for 2026-09-30, the co-creation organization's establishment is scheduled for December 2026, the effective date of the prior transaction is scheduled for 2027-03-31, and the execution date of succession is scheduled for 2027-04-01. DBJ has decided to invest through a Supply Chain Resilience Fund and has indicated that this will contribute to strengthening the competitiveness of the regional pharmaceutical industry. While the business succession is expected to lead to medium- to long-term improvements in performance and organizational strength, the direct impact on consolidated results for the current fiscal period is considered minimal.