News

KYORIN Pharmaceutical Co., Ltd. (the "Company") previously announced in its press release titled "Notice Regarding Execution of a Memorandum of Understanding ("MOU") for the Transfer of Generic Drug Business," dated April 24, 2026, that it has entered into an MOU with Daito Pharmaceutical Co., Ltd. (Head office: Toyama-shi, Toyama; President and CEO: Hiroshi Matsumori; "Daito"), Meiji Seika Pharma Co., Ltd. (Head office: Chuo-ku, Tokyo; President and Representative Director: Toshiaki Nagasato; "Meiji Seika Pharma"), and Development Bank of Japan Inc. (Head office: Chiyoda-ku, Tokyo; President: Hirofumi Maki; "DBJ"; Daito, Meiji Seika Pharma, and DBJ are collectively referred to as "Daito et al.") to proceed with specific discussions regarding the succession (the "Succession") to Pharmatech Co-creation Platform, Inc. ("PCPI"), which is scheduled to be jointly established by Daito et al., of the business (the "Target Business") consisting of the Company's consolidated subsidiary KYORIN Rimedio Co., Ltd. (the "Target Company"), which operates the generic drug business (excluding, however, the authorized generic business operated by the Target Company), and the Takaoka Plant and the Inami Plant (collectively, the "Target Plants") owned by the Company's consolidated subsidiary KYORIN Pharmaceutical Group Facilities Co., Ltd. ("KYORIN Pharmaceutical Group Facilities"), which is responsible for the production functions of the Kyorin Group (referring to the Company and its affiliated companies; the same applies hereinafter).
Following the execution of the MOU, the Company and Daito et al. have engaged in discussions regarding the details of the Succession. As a result, the Company resolved at the meeting of its Board of Directors held today to: (i) have the Target Company succeed to, from KYORIN Pharmaceutical Group Facilities, the assets, liabilities, and other rights and obligations constituting the Target Plants held by KYORIN Pharmaceutical Group Facilities through an absorption-type company split, where KYORIN Pharmaceutical Group Facilities is the splitting company and the Target Company is the succeeding company (the "Absorption-Type Company Split (1)"); (ii) have KYORIN Pharmaceutical Group Facilities succeed to, from the Target Company, the assets, liabilities, and other rights and obligations related to the authorized generic business operated by the Target Company (excluding the business related to certain sales) through an absorption-type company split, where the Target Company is the splitting company and KYORIN Pharmaceutical Group Facilities is the succeeding company (the "Absorption-Type Company Split (2)"; the Absorption-Type Company Split (1) and the Absorption-Type Company Split (2) are collectively referred to as the "Absorption-Type Company Splits"); and (iii) subsequently transfer the shares of the Target Company to PCPI (the "Share Transfer"; the Share Transfer and the Absorption-Type Company Splits are collectively referred to as the "Transaction"). In this connection, the Company has today entered into an agreement with Daito et al. concerning the succession of the Target Business (the "Definitive Agreement"), and hereby provides details as set forth below.
The Transaction will allow the Company to optimize its business portfolio and focus its resources on the new drug business. Toward the realization of "Vision 110," the Company's long-term vision leading up to the 110th anniversary of its founding, the Company has formulated a new medium-term business plan, "Vision 110 -Stage2-" (FY2026-FY2029), and commenced initiatives to achieve this plan in April 2026. Based on the statement "Aggressive Investment for Sustainable Growth," established under "Vision 110 -Stage2-," the Company has positioned the acquisition of in-licensed products and other assets, which will serve as engines for mid- to long-term sustainable growth, as its highest priority, and is committed to pursuing these initiatives with firm conviction.