Asahi Kasei (3407) investor relations material

Business portfolio transformation and growth strategy

• Accelerated transformation of the business portfolio to drive sustainable corporate value, with Pharmaceuticals prioritized for medium- to long-term earnings growth through proactive investments.

• Targeting ¥300 billion in Pharmaceuticals sales by FY2030, supported by steady R&D investment and strategic M&A.

• Expansion-related investments of approximately ¥670 billion planned over three years, with about 60% allocated to First Priority businesses.

• Recent M&A activity includes acquisitions in life sciences and pharmaceuticals, and divestitures in non-core areas to focus on high-value markets.

• Leadership transition to a unified One AK Pharma structure in FY2026 to accelerate global growth.

Acquisition of Aicuris and strategic rationale

• Acquired Aicuris Anti-infective Cures AG for approximately €780 million to secure a strong pipeline in severe infectious diseases, a key priority area.

• Aicuris specializes in antiviral therapies, with a portfolio including Prevymis (out-licensed to Merck), pritelivir (targeting HSV), and AIC468 (targeting BK virus).

• Acquisition funded through cash and borrowings, with closing targeted for Q1 FY2026.

• Integration leverages Veloxis and Calliditas networks to deliver comprehensive solutions for immunocompromised patients.

• Synergies expected from combining R&D talent and intellectual property, enhancing pipeline value and innovation.

Product pipeline and market outlook

• Prevymis generates royalty income and is globally commercialized for CMV prevention in transplant patients.

• Pritelivir, a novel oral therapy for acyclovir-resistant HSV in immunocompromised patients, demonstrated superior efficacy and safety in Phase III; U.S. approval targeted for FY2026 with peak sales projected over $400 million.

• AIC468, targeting BK virus infection in kidney transplant patients, is expected to launch around 2030 if clinical development succeeds, with peak sales projected above $300 million.

• Veloxis’s commercial infrastructure enables rapid launch of pritelivir, covering about 50% of target facilities.

• Combined pipeline and existing products position the business to achieve sustainable growth and meet significant unmet medical needs in severe infectious diseases.