Nxera Pharma Co., Ltd.

It is time to start Nexera Pharma's Q3 FY2026 results briefing and R&D day. Thank you very much for joining despite your very busy schedule. I will be serving as the MC, Nomura, CFO of the company. Today, Chris Cargill, CEO of the company, COO and President of Nexera Pharma Japan, Toshi Maeda, CSO and President of Nexera Pharma. Pharma UK, Patrick Forsh, are attending. As usual, we have the simultaneous interpretation. Please check the language selection icon of the Zoom and you can listen to either Japanese or English. You can also hear the original speaker voice. Now, according to the presentation materials, we will do the presentation. We have the Q&A after the presentation. We have the materials on the screen and they are uploaded on the website. If you need them, please go through investor relations, our library and presentation to access the materials. As for the Q&A session for institutional investors and analysts and media people, you may raise question by raising hand. The other people may submit questions by Q&A button. We will respond to questions as long as the time permits. Let us move on to presentations. At the outset, Chris will talk about the operational highlights. Then I will cover the financial results summary. Maeda will do the update on Japan APAC Commerce. Patrick will do UK R&D progress. And Chris will talk about the road ahead. Now, please take a look at page five. Chris, over to you.

Thank you, Nomura-san, and thank you everyone for joining us today. If you remember one sentence from today, let it be this. NextEra is profitable in Japan. We are discovering in the UK and we are partnered with the world. So I've got three messages here. First, we're profitable and we're growing. Nine month revenue rose 27% to 27.7 billion yen. Our core operating profit was 9.8 billion yen, already 126% of full-year guidance, with 7.1 billion from our Japanese business alone. Now, in October, we added Leucerostat for a rare disease called Fabry disease, and this will be our fourth product in Japan. Second, our science is something that partners are paying for. Partnered revenue was 13.3 billion yen, up 63%. Seven molecules from our UK discovery platform are in partners clinical trials, with one in phase three. And our partnerships carry more than 4.5 billion US dollars in potential milestones, plus royalties. And thirdly, we are on track for 2030, more than 50 billion Japanese yen of revenue, an operating margin above 30%. and at least five products in Japan. So three strengths, one company listed in Tokyo, and I'll return to this at the end of today's presentation. So we're profitable today and we're building value in every part of the business through to 2030. Next slide, please. So here are the nine months on one page. One fact stands out. Nexera is now profitable and both our businesses are contributing. So on the left, revenue grew 27% from 21.8 to 27.7 billion yen. Reported operating profit was 3.2 billion yen against a loss of 5.9 billion yen a year ago. In the middle, our medicines in Japan. PIVLAS helps prevent a dangerous narrowing of blood vessels in the brain after a ruptured aneurysm. Sales of the product grew 10% to 9.9 billion yen. Qvivik for insomnia grew 43% to 4.5 billion yen. And on the right, our partners, Neurocrine, Sintesa, AbbVie, and Lilly all paid us milestones as their programs advanced. Lilly acquired Sintesa, In a transaction worth up to 7.8 billion US dollars, Nexera is eligible for milestones and royalties across that whole Orexen portfolio worldwide. And a new company licensed one of our GPCR programs for up to 275 million US dollars in milestones, plus royalties and an equity stake. So a year ago, a loss. This year, a profit from both businesses. Please turn to the next slide. So in February, we made five promises for 2026, and here is where each one stands today. One, more than 19.5 billion yen of sales from Pivlaz and Kivivik. And after nine months, we're at 14.4 billion yen, 74% of the target and on track. Two, at least one late-stage medicine for Japan and Asia Pacific, and we've delivered this with the Serastat. Three, one or more high-value partnerships, and this is in progress, and we will report when there is news. Four, at least one Phase II trial started by a partner, and this has been delivered. Three programs are moving into Phase II, NBI 570 and NBI 567 with Neurocrin. and ORX142 with Lilly. And five, cutting costs by more than 10% and we expect to be profitable for the full year. Core R&D is down 20% and Core SG&A is down 11%. We are profitable after nine months and ahead of the plan. So clear promises reported openly and profit ahead of plan is my summary. Hiro will now take you through the results in detail, including our forecast for the full year. Thank you, Hiro.

Thank you, Chris. This slide summarizes our results for the first half of 2026, showing each revenue segment alongside its historical trend. This is a familiar format. The revenue went up. against ¥21.8 billion increased by 27% to ¥27.7 billion. The milestone revenue became ¥11.8 billion from ¥6.5 billion, and the product sales grew to ¥14.4 billion from ¥12.2 billion, respectively. The milestone revenue revenue had progressed in development, resulting in milestones among our key partners, Neurocrime, Lilly, Avi, and Sentessa. Product sales were covered earlier, so I will skip the figures here, but both P-Flats and QBB delivers strong growth. On the profit side, we moved into black with 9.8 billion yen in core OP and 3.1 billion yen on IFRS basis. Although this was slightly lower than Q1, on Q3, the core was 3.3 billion. On IFR basis, it is black by 1.2 billion. Now, please move on to the next page. As usual, this is by business domain split into core OP and reported OP. On the far left, in blue, is our platform business, which follows what you call biotech venture business model. Just to the right red is our commercial business, which follows pharma-style business model. Platform profit depends heavily on milestones from our partners and difficult for us to control, so we are controlling to grow the commercial business spread and stabilize our earnings. Until Q3, for both a platform and a commercial, we see the increase in revenue and cost. Especially for SG&A and R&D, we have been able to reduce by 10%, 20%, and we are trying to generate a profit. Please move on to page 11. This page is very close to the previous figure, but just the percentage. compared to the year-on-year basis last year, this shows the progress against our guidance. The guidance uses the bottom of the range. So as the company, We are not evening out by quarter, but suppose that it is evened out. Since this is a Q3, it will be 75%. Please do interpret that way. The message is basically the same as the previous slide, and as Chris said, we have steady progress. And going to the far right, if you take a look at the progress on IFR ACES, revenue is now 82%, which is good progress, and cost is basically in line, roughly three-fourths, and this is maintained at roughly 75%. This is very brief, but with this, I would like to conclude the financial part of Q3. Next, Maeda will explain Japan APAC business. Over to you, Maeda-san.