Chugai Pharmaceutical (4519) Investor Update summary

Evolving sustainability and ESG strategy

• Annual sustainability meetings refine materiality and value creation, with a focus on ESG as a management strategy and dialogue with stakeholders.

• Achieved high rankings in S&P Global ESG scores and received recognition for corporate disclosure excellence.

• Updated materiality to align with new societal and environmental priorities, integrating these into management and business activities.

• Initiatives include 100% renewable energy in purchased electricity, TNFD-aligned disclosure, and designation of a facility as a Nature-Symbiosis Site.

• Strengthened stakeholder engagement, compliance, and risk management, with expanded dialogue with capital markets.

Value creation and innovation

• Value creation model centers on human resources, technology, collaborations, and environmental stewardship.

• Focus on innovative drug discovery, co-creation with partners, and commitment to sustainable, patient-centric healthcare.

• Advanced AI-driven drug discovery (e.g., MALEXA technology), and clinical progress for new antibody drugs.

• Expanded co-creation with academia, industry, and patient groups, including disease database projects and joint research.

• Enhanced human capital development, diversity, and inclusion, with new HR systems and abolition of upper age limits.

Pharmaceutical technology platform for mid-size molecules

• Developed a new platform for mid-size molecule (cyclic peptide) drugs, addressing cost, speed, and safety challenges.

• Introduced proprietary liquid-phase multi-fragment synthesis, reducing waste and manufacturing costs significantly.

• Built world-class containment facilities for ultra-high potency APIs, winning industry innovation awards.

• Achieved large-scale production and cost reduction through collaboration with CDMOs and academia.

• Platform enables rapid, simultaneous development of multiple candidates, supporting future pipeline growth.