CHUGAI PHARMACEUTICAL CO.,LTD. Q1 FY2026 earnings call

• Dr. Okuda overviewed first quarter: revenue up 11.5%, operating profit up 17.1%, quarterly profit up 19.6%. Details on revenue: domestic up 8.4B yen, overseas up 23.4B yen. • Key progress: Exit 007 to initiate phase three trials, discontinue SMA and FSHD development, proceed with Phase II trial for obesity; N-Spring presented meteoroid study results; Ghirardestrant discontinued first-line development, aim to file for second to third-line adjuvant; DOC52 commenced in-house Phase 2 study for celiac disease. • New product launches: Elevides launched in Feb as Japan's first gene therapy for DMD; Lusimil and Poli-B combination therapy approved in March; subcutaneous formulation for Lusimil and auto-injector formulation approved; Orgofor Glypron (Foundeo) approved in US for obesity. • Board of Directors: New management structure with Ms. Kinuko Mutani as independent external director.

Domestic sales increased by 8.4 billion yen despite NHI drug price revision and generics penetration; overseas sales increased by 23.4 billion yen with volume and foreign exchange effects offsetting unit price decline; other revenues increased due to higher royalty income. Revenue grew by 11.5%, operating profit by 17.1%, and quarterly profit by 19.6%. Domestically, mainstay and new products performed well; overseas, exports to Russia and Galderma increased significantly.

• Current progress is on track with initial expectations. • No changes to publish forecasts. • Low single-digit growth expectation for exports remains unchanged, with actual results from second quarter onward expected to be somewhat similar to current forecast. • Aim to bring medicines to patients as soon as possible.

Q: In comparison to forecast, is current situation better than expected or on track?

A: Right on track and as expected, with fluctuations but good news like Libra doing well overseas, no changes to publish forecasts.

Q: Regarding Nemorubio, was Q1 better than expected?

A: Within expected range as planned conservatively.

Q: About export sales products, will outperforming trend continue?

A: Low single-digit growth expectation remains unchanged, actual results from second quarter onward expected to be somewhat similar to current forecast.

Q: About GMC-29, difference in obesity trial vs SMA-FSHD?

A: For obesity, reduction of myostatin confirmed, not linked to motor function in neuromuscular diseases like SMA and FSHD.

Q: Regarding Galderma Royalty, when to announce as separate line item?

A: Will follow auditor criteria and timing.

Q: How to use cash for late-phase pipeline?

A: Invest in innovative pharmaceutical development capability, product candidate introduction close to market, capex for enhancing production, and return to shareholders.

Q: Regarding IMO, details of royalty from Eli Lilly's Fondale?

A: Cannot disclose contract details, but approval date known and royalty will be reflected in future.

Q: About elevators, progress so far?

A: Launched in Feb, focusing on safety, receiving strong inquiries, sales expected to progress smoothly.

Q: About INAVOLI-SIB, filing timing?

A: Cannot comment on timing but aim to bring medicine to patients as soon as possible.

Q: About Jim 329 and SMA phase 3, differences in inclusion and endpoints?

A: Different primary endpoints and assessment scales for motor functions.

Q: About DONG52, types of patients targeted?

A: Will look at outcome of studies to decide, targeting very highly active celiac disease.

Q: About GP margin trend, reason for expected change?

A: Target cost ratio toward end of year is 34.9%.