Eisai Co Ltd

I would like to introduce the speakers today, Mr. Keisuke Naito, COO and Chief Growth Officer.

and Mr. Takuya Oyama CFO and Chief IR Officer.

First, Mr. Oyama CFO will present the financial results, after which Mr. Naito COO will report on the overall business.

Mr. Oyama CFO, please.

Thank you very much for gathering to attend this session out of your busy schedule.

Let me begin with our financial highlights for the first quarter of fiscal year 2026. Revenue for the first quarter of fiscal year 2026 was 234.3 billion yen, a 15.6% increase from a year earlier. The pharmaceutical business, which is our organic business, grew significantly, achieving double-digit revenue growth. Operating profit reached 24.7 billion yen, a 19.2% increase year-on-year.

This double-digit increase was achieved thanks to significant global growth in our major products, Renvima, Deibigo, and Rekembi. Progress towards our 2026 performance forecast is steady, with revenue at 27% and operating profit at 35%. Next slide, please.

This page provides details of our consolidated financial results for the first quarter of fiscal year 2026. Revenue increased by 16% to 234.3 billion yen, driven by the growth of our pharmaceutical business, which is centered on our major products 3L, Renvima, Devigo, and Lecambi. Cost of sales was 51.1 billion yen and the cost of sales ratio to revenue was 21.8%. Although the cost ratio increased year-on-year, it was approximately controlled within the planned range through cost reduction efforts. As a result, gross profit reached 183.2 billion yen, up 14.5% year-on-year. R&D expenses increased by 12.7% to 43.7 billion yen reflecting a proactive investment of resources in next-generation key projects. Selling general and administrative expenses increased by 14.6% to ¥114.8 billion due to increased profit-sharing expenses associated with Renbima revenue grants and aggressive productive investment in the Kenbi. As a result, Co-operating profit was 24.7 billion yen, up 19.2% Co-operating profit was 24.7 billion yen, a 13.9% increase And the profit for the period was 18.2 billion yen, up 26% Progress draws achieving the full year forecast It's on track with revenue at 26.5% and operating profit and core operating profit at 35.3% Next slide, please.

This page shows the factors that increased or decreased revenue. As shown by the second light blue bar from the left, revenue for our major products, 3L, Renvima,

The revenue for our pharmaceutical business expanded by 16% to 230.9 billion yen. Revenue of products other than the 3L was also strong. Overall revenue increased by 31.7 billion yen to 234.3 billion yen. Next slide. This page shows the factors that caused the increases or decreases in operating profit. Gross profit increased by 23.2 billion yen due to the growth of the pharmaceutical business driven by the growth of our 3L business. R&D expenses increased by 4.9 billion yen due to continued proactive investment in key projects such as the clinical trial of Lekembi for preclinical AD and the anti-MTBR tau antibody E2814.

SGA expenses increased by 14.7 billion yen due to higher profit-sharing expenses associated with renvima revenue growth and productive investment in the campaign.

There are no other significant factors contributing to increases or decreases in other income and expenses. As a result of the above, both Operating profit and core operating profit reached 24.7 billion yen, representing significant increase in profits. Furthermore, while we had planned to achieve profitability on a commercial basis this fiscal year, excluding R&D expenses, We posted our first ever profit in the first quarter thanks to Lecambi's strong growth, ongoing cost control, and the prioritized allocation of S&S business to key markets. We will continue to work diligently towards achieving fully commercial-based profitability. This concludes my part. Next, our COO, Mr. Naito, will give us an update on our business.

COO Naito, please.

From here, I will explain the recent business progress and the pipeline that will support medium to long-term growth. First, I will present business updates for the three products, Renvima, Devigo, and Lecambi, which are driving our growth. and so-called 3L product business updates are as follows. In particular, regarding ReCAM-B, I will explain the progress toward maximizing its value from the perspectives of iCLIC, subcutaneous injection with auto-injector approved in the US for initiation treatment, the establishment of a I will explain the progress of next-generation AD disease modifying drugs, including the announcement of the ethananetag biomarker data presented at AIC. Furthermore, I will introduce our drug discovery aimed at realizing make AD a curable disease, where amyloid tau and neurodegeneration are considered as an AD continuum, the OREXIN pathway platform, and the future key events for the pipeline.

Let's talk about Renvima.

The first quarter revenue reached 97.3 billion yen, up 16% year-on-year. In addition to the impact of exchange rates, sustained demand growth, particularly in the United States, is driving this growth. In the U.S., it continues to hold a top market share in the TKI market for renal cell carcinoma and the material cost cancer, hepatocellular carcinoma, and thyroid cancer. 11 years after its launch, it has grown into a strong revenue foundation for our company, contributing to approximately 620,000 patients in 83 countries. The addition of a new indication based on the results of Light Spark 011 Patients with advanced renal cell carcinoma with prior treatment with anti-PD-1 or PD-L1 therapies is scheduled to reach a PADUFA action date, the target deadline for FDA's review in the US on October 4, 2026. We aim to achieve a full-year forecast of 345 billion yen through both the sustained growth of existing indications and the expansion of indications through lifecycle management. Next. is stable.

First quarter revenue reached 18.9 billion yen, up 38% year-on-year, with growth across all regions.

We are on track to achieve a full year forecast of 73.5 billion yen. In Japan, supported by its ability to improve both sleep onset and sleep maintenance, it has maintained the number one market share in both sales and the number of patients treated in the dual orexin receptor antagonist segment according to our estimate based on JMDC data. It has continued the steady In July, we submitted applications for approval in the UK and Europe for the treatment of chronic insomnia. Having already been approved in 29 countries and territories, it will further accelerate growth as a global brand. The knowledge we've gained in orexin drug discovery with REBIGO is also leading to our next-generation orexin platform, which I will explain later. Next, please.

Next is REKENBI.

First quarter revenue reached ¥29.3 billion, up 27% year-on-year. Excluding our estimated temporary impact of stockpiling by distributors in China that occurred in the same period of last year, revenue increased by 64% a year, indicating continued strong growth on a real demand basis. In the United States, in particular, supported by the increasing number of patients, and other patients with early AD and the expansion of blood biomarker testing volumes, Rekenbi continued to grow, maintaining its leading share in terms of the number of patients treated based on our estimate. Furthermore, on July 13th, Rekenbi iClick was approved by FDA for initiation treatment. In Japan, demand is expanding while absorbing the impact of drug price revisions. In China, reimbursement has commenced under several commercial insurance programs, and negotiations with authorities for reimbursement are ongoing in various countries across EMEA. Currently, we have obtained approval in 53 countries and territories for early AD. We aim to achieve a full-year forecast of 143.5 billion yen by leveraging new technological innovations such as iClick and BBM to drive growth.

I would now like to share with you our efforts to maximize the value of Lecambi. Lecambi is the only anti-A-beta antibody that can be administered long-term that suppresses the disease progression as well as slows the decline in cognitive function and activities of daily living. In the United States, on July 13, iClick initiation treatment approval was granted, and sales is expected to begin in late August. With this approval, from the start of the treatment, patients are able to choose from IV or iClick. From the initiation therapy to maintenance treatment, treatment options can be offered based on patient circumstances. The major value of iQEC comes not only from its new formulation, but after two consecutive treatments under the direct guidance of healthcare professionals, home administration becomes possible for patients when deemed appropriate. This reduces the burden to travel to clinics for patients and care partners. It also is expected to reduce burden on medical institutions in terms of infusion-related human resources and equipment need. At AAIC 2026, modeling and simulation-based analysis was presented showing equivalent exposure between once-weekly subcutaneous and IV treatment and projected equivalency clinical efficacy and amyloid removal exposure-related AEs. They are predicted to be similar to IV administration and the safety profile of SC administration is generally similar to IV.

According to the device evaluation, 94% responded that it is easy to use.

We believe iClick will expand the treatment options for patients making Lecambi treatment easier to start and to stay on. On the other hand, approval and sales of products alone do not lead to the start of actual treatment. To translate convenience offered by iClick to improved patient access and ReCAM-B growth, development of three key foundations is important. First, streamlining the treatment access including coverage and reimbursement and prior authorization. Second, standardization of diagnosis and treatment initiation flow from testing to documentation of results, benefits verification for each patient, and coordination with specialty pharmacies. Third, enhanced support structure for home administration and treatment continuation, including drug delivery, administration training, storage, and continuous shipping management, and sending of reminders about drug administration and MRT. and Kai. Our aim is to establish conditions not only for clinics to prescribe Lecambi but for patients to actually start receiving treatment and continue with treatment. Towards the launch in late August, we will proceed in collaboration with the payers, medical institutions and specialty pharmacies to ensure the establishment of the three key foundations. We will translate the convenience of iClick into better patient access and advance Lecambi into the next phase of medium-term growth. Next, turning to real-world data that demonstrates long-term treatment continuation. This is not RCT, but this is an observation data using a chart at AIC 2026. Leader study data from 432 early AD patients across 13 clinical practices in the U.S. was presented. 82.5% of patients whose disease stage were evaluated were stable or improved. Treatment retention rate was 86.6% at the time of chart extraction of all 432 patients.

Safety observations were consistent with the FDA-approved label.

Most area events were asymptomatic or mild on imaging. There were no reports of micro-hemorrhage or treatment-related deaths. Among 204 patients treated for more than 18 months who continued to be on treatment at the time of chart extraction, 161例, 761 or 78.9% transitioned to maintenance treatment with iClick or IV and remained on treatment.

Based on these,

We consider the data to be important real-world evidence that supports Rekenbi treatment continuation, consistency in safety, and the current usage of maintenance therapy. To maximize treatment opportunities with Rekenbi, it is important to standardize A-beta diagnosis and to improve patient access.

Lab-based biomarkers put less burden physically on bodies and can alleviate geographic constraints

and PET and CSF testing capacity constraints. By using BBM as triage, PET and CSF A-beta positivity rates can be increased to efficiently use limited testing resources. BBMs that satisfy certain performance standards may be a means of A-beta pathology confirmation in place of PET or CSF. According to estimates by ASI, in the US, BBM tests increased in number by 75% in fiscal 25 year-on-year.

The ratio of BBM in A-beta confirmatory testing is expected to increase from 15% in fiscal 25 to around 50% in fiscal 28. The environment surrounding BBM is rapidly becoming ready.

Centering around PTAU-217 in the US, Europe, and Japan, there has been progress in approval, regulatory filing, and commercial testing availability. Development of guidelines and treatment infrastructure is accelerating. With BBM, we aim to expand the base of patients who will seek diagnosis and reduce time required for diagnosis to expand the can-be treatment initiation opportunities. The combination of BBM for diagnosis and iClick for treatment are expected to improve the overall flow from diagnosis to treatment continuation for patients. I would now like to turn to the next generation AD drug discovery. ETALANETAG is at the core of TAO aggregates and targets MTBR-TAO responsible for TAO propagation. Through binding with tau-seeds, etalonitac promotes removal of macroglia to suppress tau propagation and aggregation.

103 study in dominantly hereditary Alzheimer's disease patients achieved 62% reduction of ENTPR tau-243 in CSF in 3 months and 89% reduction in 9 months.

78% reduction in plasma in 3 months and over 90% reduction in 9 months were also observed, demonstrating consistent changes in biomarkers in both CSF and plasma. In tau PET, the tendency of suppressing progress on reducing tau pathology was also observed in each participant. As of now, these do not demonstrate efficacy in clinical symptoms. but we believe that lowering of eMTBR TAU-243 and TAU-PET tendency support the effect of TAU pathology targeted by TAU-Planetok and we believe that proof of mechanism was obtained. As presented at AAIC, plasma eMTBR TAU-243 may potentially be used as blood biomarker for more convenient way to evaluate TAU pathology in the brain. The next important data to consider will be the top-line data from Phase II study in sporadic AD patients, expected in fiscal 2027, and from TAO NextGen study, expected in fiscal 2028.

About TAO and Atalantag, I have just discussed, but AD progression is considered in three domains of A amyloid, T-TAO, and N neurodegeneration.

As we pursue the next generation growth discovery regarding AMLOID in AHEAD 3.5 study in preclinical AD patients before the onset of cognitive symptoms to demonstrate the AD would not develop the can-be-tested. This is a phase 3 study designed based on FDA and EMA guidance. We expect to obtain data fiscal 28. The preclinical AD population is estimated to be 400 million globally, but not all will be target patients. Considering testing, diagnosis, and treatment access, ASI assumes that there are approximately 2.3 million patients for ADDMT treatments. We intend to select target patients with biomarkers and aim to respond to the unethical needs of intervention before the onset. As for tau etalonotoc aims to suppress disease progression through intervention of tau propagation. In the future, we expect to combine A-beta pathology control with lecambi and tau pathology intervention with etalonotoc, Moreover, by adding interventions in neurodegeneration and neuronal function, we aim to establish treatment approach to prevent onset and progression of AD. We call such long-term vision of combining pre-onset intervention and suppression of disease progression, make AD curable. Next, moving on to orexin platform, ASI has been addressing sleep-wake regulation in insomnia with Devigo, which blocks orexin receptor. Leveraging expertise from that drug discovery, currently we are developing Detasorexon, an in-house developed agonist, which activates orexin 2 receptor agonist. In study 101, in patients with NT1, it was shown that single-dose administration significantly reduced excessive data in sleepness, but the dose that demonstrated efficacy that was the reaction was considered well tolerated with no liver dysfunction or visual abnormalities observed. Currently, phase 2 study 202 evaluating NT1 and NT2 in the same study is ongoing. Top-line data is expected before the end of fiscal 2016.

The strategic seeding frequency of lexin drug discovery is not limited to insomnia treatment.

Nighttime sleep is supported by daily go, while daytime wakefulness is supported by lethal exon. We are developing these from both directions, and in the future, we aim to expand the potential of drug discovery to regulation of brain function networks that support daytime functioning, including cognition, behavior, and social participation. This page shows the major pipeline events and strategic positions of each project in the three-year plan. In neurology, after the U.S. approval, a bi-click initiation treatment approval in Japan is expected in Q2 FY26.

That is, the Rexton Phase II top-line data as well as E2025 CSF biomarker data are also expected in FY26.

In the medium term, important data is expected from sporadic AD at the line attack study or 202 study in FY27 and from AHEAD-345 and TAO NextGen in FY28. In oncology for levuma and velvular combination therapy, U.S. PRUFA action date is scheduled in October 2026. CERPR-LIMAP regulatory filing in Japan and E-7386 top-line data are also expected. These events are linked to our three-year plan strategy, establishing RECEN-B as standard of care, making RECEN-B a global brand, next-generation drug discovery, including etalanetag and enhancement of oncology pipeline. By determining the scientific and business values and success probabilities of each project, based on strategic positioning, resources will be allocated and plans will be executed according to the priorities so that three-year plan can be achieved. I would like to summarize the key points from the day before I end. In regards to management foundation, the strength of three growth products, namely Renvima, Devigo, and Lecambi, drove year-on-year increase in both revenue and operating profit company-wide. We are making steady progress towards achieving the fiscal 26 forecast. In terms of business growth, Lekembi continues to achieve sustained growth primarily driven by the U.S. De Vigo growth across all regions, accelerated global expansion. With respect to Lekembi, iClick is offering more options for treatment. BBM is advancing diagnosis environment. Combining these advances, we are enhancing foundation to expand diagnosis and treatment access for patients.

In product development, in neurology, based on ATN framework of continuum of amyloid tau and neurodegeneration, we are pursuing next generation AD drug discovery in orexin. and others.

Leveraging the sleep-wake regulation, we will expand drug discovery possibilities to daytime functions of cognition behavior and social participation in oncology. In addition to Lenvima, additional indications, licensed in-products and in-house products will be combined to enhance pipeline for the future growth. Going forward, we will continue to enhance the Revenue Earnings Foundation with new growth products and we will also drive growth through next generation product discovery. We will create a cycle of investment that links the current growth to the next phase of growth with disciplined resource allocation and steady execution to achieve sustained enhancement of corporate value. We would now like to take questions first from the analysts and then questions from the members of the media. If you have questions, please give us your name and organization name before your question so that we can entertain as many questions as possible. Please limit the number of questions to one per person. I would first like to invite questions from analysts.

Mr. Yamaguchi from Citigroup, please.

Please unmute your microphone and start asking your questions.

Hello, can you hear me? Yes, we can. Thank you. This is Yamaguchi from City Group Securities. I am asked to limit the number of questions to one. Regarding the progress of Q1, I would like to ask you questions. In one question, there is a high progress against the medium-term plan and the year-on-year decline was observed for the gross profit.

However, as the start of the fiscal year, I think it is a relatively good gross profit. Do you have any take on this progress against Japan as well as the gross profit and Forex? Any better impact or positive impact from Forex than expected?

Could you please share with us?

Thank you very much for your questions. Our CFO Oyama is going to respond to your questions. Thank you very much for your questions.

For the first quarter, given the strong growth of 3L products as well as other products and organic business continue to grow, therefore operating profit was better than the earlier forecast.

During the first quarter, our plan for the first quarter was exceeded by the actual results.

Regarding revenue, as you said, there was an impact by foreign exchange rates, but excluding forex impacts. Even after that, the results exceeded our plan.

and for us, there can be and the cost ratio of key major products have been reduced. In some areas, there are prioritized launching, but in principle, organic business has continued to grow steadily.

So let me ask you one follow-up question.

Revenue has been strong, therefore mix has been improved.

Individually, cost of sales have been reduced for each of these.

Yes, the cost for individual products have been reduced. Compared to your expectation for the full year forecast, we believe that we have been able to make a steady, good start to achieve the full year forecast.

Next, Seki-san from UBS Securities. Please unmute and proceed with your question. This is Seki from UBS. Thank you for the presentation. Congratulations on the approval of iClick Initiation Movement. About the Medicare reimbursement, possibly deciding from next month what is your view, I believe that there is a window opening for document revision in August. according to the information that I've heard. Will they be making news of that? And although it was past deadline when approval was given, is it possible to still receive insurance reimbursement starting next month? There can be iClick or OneDose and I believe it was the same BIA number, but ordinarily the Medicare insurance reimbursement rather than a new product reimbursement. This is an additional indication, so the current reimbursement may be applied for initiation treatment. What is your current outlook? Thank you for your question.

About ICLIC initiation treatment, and the question was on insurance reimbursement.

Regarding maintenance treatment through medical exception, insurance reimbursement is provided, and therefore, for ICLEC initiation treatment, we believe we expect a similar scheme to be applied. And from 2027, payers will begin to list what can be in Medicare Part D formulary. In this way, we expect expansion of reimbursement. But based on priorities, we would like to work on ensuring reimbursement from major payers. I hope this addresses your question. Thank you.

Mr. Haruna, responsible for Rekenbi in U.S. may have additional comments. Thank you for your question.

I am Haruna, responsible for Rekenbi globally. I would like to offer some additional comments.

Mr. Naito responded earlier.

In particular, regarding the formulary listing, maintenance therapy and initiation therapy, we expect to have both on the formulary, and initiation therapy approval was granted recently, and therefore we expect a listing in the formulary for both maintenance and initiation therapy eventually.

Next question, please.

I would like to invite the next person to ask questions. From JP Morgan Securities, Mr. Wakao, please unmute your microphone. This is Wakao from JP Morgan.

Thank you very much.

I also have a question about the U.S. situation of Rekenbi, particularly iClick for initiation treatment. Thank you very much. $385 per vial, then that means the price can be double the price of maintenance treatment. With this pricing, do you think that you will be able to secure enough sufficient profitability?

Thank you very much for your question. Mr. Yasuno, who is in charge of US business, is going to respond.

Thank you very much for your question. I am in charge of US business. My name is Yasuno.

First, regarding the basic concept for pricing is as follows. The basic concept is to achieve a price parity between the IV and iCLICK SC.

on the basis of the total medical costs. iClick, which has been explained today, will allow patients to do the self-administration at home, which will provide convenience and also reduce the cost related to the travel as well as the burden for care partners, and also it will do away with the resources at medical institutions which will be required for IV. Therefore, these are considered to be added value. These added values are reflected on the price for the iClick. On the other hand, the costs related to infusion for other costs than the drug itself in terms of IV, such as infusion procedure on a total medical cost basis, we have designed the pricing for iClick so that there will be no change in the copayment by the patients. and based upon these we have come up with the pricing.

Thank you very much. 250 mg per vial, $385 per vial.

Is this correct? Yes, that is correct about WACC.

Understood.

Then for maintenance, and then this shall secure the profitability. Thank you very much for your question.

Currently SC has just been launched. In the future, the convenience of SC will exceed the IVs. So the share is exceeding that of IV in the future.

In my presentation I mentioned earlier that there will be additional optionality for patients to do the home administration and then introduction of a new patient will be accelerated. And also the penetration of the BBM-based confirmatory diagnosis is going to be the key point for further

As I mentioned in the presentation, there will be a preparation and establishment of various foundations and platforms.

Therefore, for patients to be able to receive the benefits of SC should be made easier by our efforts.

Have you started selling this?

Regarding actual situation, I'd like to ask Mr. Haruna, who is

Thank you for your question.

My name is Haruna. I am in charge of global Rekenbi business.

I would like to respond regarding the commercial launch. The timing is scheduled to be late August. From that point onward, Drugs will be delivered to patients. But having said that, the product itself has been approved already.

Prescriptions can be started based upon the description of the medical institutions. When we visit the medical institutions in the United States, I see prescriptions have started. And we are seeing an increasing number of inquiries for iCLIC Initiation treatment is gaining a lot of expectations throughout the United States from many medical institutions. That is the current status we see.

On a monthly basis,

You mean that you have started to see the booking of sales?

Sales have not been recorded yet, although prescriptions have started. But the iClick 250 mg to be launched in the United States, which is to come around late August. So from that point onward, I believe that

The sales will start to be books.

Next, Mr. Tony Ren from Macaulay Securities.

Please unmute and proceed with your question.

Hi, thank you for taking my question. So my question is about your effort in the US to convert patients from Eli Lilly's Kisuma, which is a fixed duration therapy. I understand that you have been trying to convert Kisuma patients who stopped their fixed duration therapy but who are also concerned about redeveloping plaques, preventing them from coming back. So can you give us some color about how that effort is going? Thank you.

Thank you for your question about the share between Rekenbi and Kesana.

I understood your question to be a market share between the two drugs.

First of all, IQVIA and other external data are the source of market share calculation, and I would like to remind you that oftentimes these data do not cover and some of the major IDNs that prescribe the Gen-B. And about the new patients, recently, both drugs have about 50-50 market share. However, after the launch of initiation therapy iQlik, As we have been discussing, we believe that the market share may change, and this may overlap with the earlier response, but I would like to ask Mr. Haruna, responsible for global business, to respond further.

Thank you for your question. As I've mentioned earlier,

In initiation therapy, i-CLIC was granted approval, and in the United States, doctors began to prescribe i-CLIC for initiation therapy. And I feel expectations for i-CLIC.

Patients may wish to have only one monthly administration, but with the at-home administration

and iClick, not only for patients but for healthcare professionals. We expect the burden will be reduced significantly, and as presented in the presentation today, we've reported on the results from leader study. More than 80% or thereabouts, the majority of the patients, 80% or so, wish to stay on treatment. and are given maintenance therapy. Whether patients will discontinue or stay on the therapy, which was part of the question, and as a matter of fact, the majority of the patients wish to stay on the treatment.

What we have been consistently saying is that

or our position, a consistent position, is accepted by patients and healthcare professionals. And with the introduction of highly convenient iClick, we believe that we will have greater competitive advantage, and we believe that as a result, our market share will further expand. Thank you for your question.

Yeah, you know, if I may, I just have a quick follow up. So for the patients, for those patients who stopped Kisunla because they've reached the end of their fixed duration therapy, have you been able to convert some of them to take maintenance Makambi?

The answer is it is possible.

I would like to once again ask Mr. Haruna to address that question.

As Mr. Naito responded, according to the label, from IV to iClick conversion is possible. And similarly, patients who stopped treatment of Kisona, it is possible to transition or convert to Lecambi.

And in actual clinical practice, we are seeing such conversions.

OK, very good. Thank you very much.

Next, from Tokyo Tokyo Intelligence Lab, Yoshida-san, please unmute yourself.

Tokai Tokyo Intelligence Lab. My name is Yoshida. Thank you very much. Slide number three.

Mr. Yamaguchi asks the same question as a follow-up, and the cost of sales ratio seems to be much lower than the plan. So what is the background for this better result? In your explanation earlier, the revenue was larger than and also costs were lower than the expectation. Could you please elaborate on that?

And comparing the first half and the second half, first half, do you think that the loss decreasing time for the Kenbi Then it will accelerate the reduction of the loss.

Once profitability is achieved, do you think that the recovery rate of the cost is going to be slowing down? How do you think?

Could you please give us your take on this?

Thank you very much for your question. Our CFO Oyama is going to respond. Thank you very much for your questions.

The cost of sales ratio was explained earlier in our response.

Renvima's revenue has been very strong, including the positive impact of forex. Renvima's cost of sales ratio was very low.

That also contributed to this better result. Regarding your point about Lecambi, we still have the second, third and fourth quarter where we expect to see further increase of revenue for Lecambi.

So towards that, we are continuing to invest SG&A expenses. and excluding the R&D expenses, we'd like to secure achievement of the commercial basis profitability. So as of now, it is difficult for us to mention any trend so far. So I hope you understand.

Could you please share with us what is the contribution ratio among these three products? Renvima is contributing the most?

Compared to the last fiscal year, all of these have stayed at almost the same level.

Compared to the plan, Renbima revenue was larger than expectation. That was a great factor for this better result. Thank you very much. Understood.

Moving on to the next question, Hashiguchi-san from Daiwa Securities.

Please unmute and proceed with your question.

Thank you. I'm Hashiguchi from Daiwa Securities about vaccine drug discovery potential. You've made a mention of this several times. You are conducting study on narcolepsy, but for other indications,

You've also mentioned potential research and development outside of narcolepsy indication. Regarding these indications, will you be pursuing these new indications?

or with a different compound will you be pursuing research and development? Regarding these indications, when do you expect to be able to begin clinical studies? What is the timeline that is expected at the moment?

Thank you for those questions. Dr. Ido, responsible for R&D, will respond to your question. Thank you for your question.

I'm Ido, responsible for R&D. Regarding your question, We are considering both. That will be our response.

As you referred to in your question, that is a Rexton Phase 2 study. This is covering both narcolepsy type 1 and type 2.

Making steady progress and a compound profile will be clearly elucidated and we expect a top line within this fiscal year. Based on the profile that is understood, we would like to develop plans for more detailed development in next fiscal year beyond.

This is a platform we will also do research of biomarkers

and relationship with other diseases may be indicated and what is the desired profile that is also explored in research and next generation compounds will also be considered in the research and development.

I hope this answers your question.

Thank you very much about the latest Rockstone drug discovery. The history of the drug discovery was presented before.

I believe that a very large number of candidates were considered. and many candidates were identified, which gave me an impression that there is not much progress with regards to other compounds.

There are compounds with different profiles that are being explored. And to what extent are you making progress in this exploratory research?

As you mentioned in your question, we presented the drug discovery story of the initial discovery.

Out of several hundreds of thousands, we found this compound, which was a hit. As we continued with this development, we were able to expand the library of similar compounds. Thank you very much.

Thank you very much. Regarding IV and ICLIC, I have a question about the margin of profitability.

The WACC basis calculation per patient per month, iCLIC, can they join the WACC 4.5 times as much as IV? and a monthly volume of API for NIDRAC. iClick consumes double because iClick uses two times two. So for one month, the other day, I asked you the question, COGS driver is mainly by API. I assume that iClick can enjoy higher profitability than iVee. On the other hand, Lenvima is shrinking in mix and then that is considered to be a driver for Coke's improvement.

iClick, iVee, and Lecambi itself as a whole is going to see better profitability going forward. Is this correct understanding?

Thank you very much for your question. My answer may be overlapping partly with what we responded.

Mr. Yasuno, who is in charge of the US business, is going to respond to your question.

My name is Yasuno.

I am in charge of US business.

Thank you for your assessment.

Of course, the volume of iClick is increasing, and we of course expect to see a lower COGS ratio, so we expect to see a better COGS rate. Thank you very much.

If you have questions, please raise your hand. Mr. Yoshino, please unmute and proceed with your question.

Thank you for taking my question. I'm Yoshino from Nikkan Yashikyo. I have a question on details on page 9 regarding ReCAN-B. Maintain top share in patients receiving treatment. In what market is this anti-amyloid beta market? And maybe it is needless to mention, but could you specify market share in which market?

Thank you for your question.

This is in anti-annual beta market and based on claims data, this is an in-house estimate. Thank you very much.

Any other questions from the media? If you have any, please raise your hand. Nakata-san, please unmute yourself.

Can you hear me? Yes, we can.

My name is Nakada. I'm from the Nikkei newspaper. We see weaker yen. What is going to be positively impacted by weaker yen? Or do you see any negative impact on the profitability or earnings? CFO Oyama is going to respond. Thank you for your question. Thank you very much for your question.

With the weaker yen, what is going to be the impact on us? We have revenue. Majority of revenue is foreign currency denominated.

There is an impact on the revenue by forex. But on the other hand, there are R&D expenditures and other expenses on foreign currency.

So for your information, revenue year on year 18.9 billion yen was the impact of forex. This was a positive impact by forex. When it comes to the SG&A and R&D expenses, the operating profit based upon the same forex There was a 1.38 billion yen positive impact. So out of the 24.7 billion yen operating profit, part of which was due to forex impact.

In principle, revenue and costs, majority of those are on foreign currency denomination. But the impact on the operating profit was limited. Understood. Thank you very much.

Any other questions? If not, and later, if you have additional questions, please contact IR or PR. And with that, we would like to conclude today's briefing session. Thank you very much for joining us today.