Notice Regarding Reorganization of Subsidiary
through Company Merger

　Shionogi & Co., Ltd. (Head Office: Osaka, Japan; President & CEO: Isao Teshirogi, Ph.D.; hereafter, “Shionogi”), parent company of Shionogi Pharma Co., Ltd. (Head Office: Settsu, Osaka, Japan; President & CEO: Ryuichi Kume, Ph.D.; hereafter “Shionogi Pharma”), today announces Shionogi has resolved at a meeting of the Board of Directors on November 29, 2021 to have Shionogi Pharma implement an absorption-type merger (hereafter “Merger”) of its wholly owned subsidiary Nagase Medicals Co., Ltd. (Head Office: Itami, Hyogo, Japan; Representative Director and President: Mitsuru Akasaka; hereafter “Nagase Medicals”), aiming for completion of the Merger by April 1, 2022.

1.        Purpose of Merger

　Shionogi Pharma aims to become the “most trusted one-stop CDMO*", and is expanding its business of manufacturing, sale, analytical testing and pharmaceutical engineering of medicinal drugs and investigational drugs. Nagase Medicals, a wholly owned subsidiary of Shionogi Pharma from October 1, 2020, is involved in the contract manufacture of high value-added healthcare products, focusing on highly potent injectable pharmaceuticals.

　The Merger of the two businesses aims to create a faster and higher quality full-range CDMO and solutions business to increase customer value and drive growth as a technological innovation-focused manufacturing company. Through establishing a new business foundation, Shionogi Pharma will seek to create a diverse modality CDMO based on the group’s unique knowledge, technology, and experience, including in the manufacturing of high pharmacological activity APIs and drug products, solid and injectable, while also aiming to establish a new continuous manufacturing platform for API.

*Contract Development and Manufacturing Organization

2.        Absorption-type merger

（1） Summary of the Merger

　　A)  Schedule of the Merger

　　　　Approval of Merger by Shionogi’s Board of Directors              　　　　　　  November 29, 2021

　　　　Approval of Merger agreement by Shionogi Pharma’s Board of Directors　　December 17, 2021 (planned)

　　　　Conclusion date of Merger agreement                      　　　　  　　　　　　December 22, 2021 (planned)

　　　　Approval of Merger agreement by Shionogi Pharma Extraordinary General Meeting of

　　　　Shareholders　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　February 2022 (planned)

　　　　Effective date of Merger　　　　　　　　　　　　　　　　　　　　　　　　　April 1, 2022 (planned)

　　　　Registration date of Merger　　　　　　　　　　　　　　　　　　　　　　　 April 1, 2022 (planned)

　　B)  Method of the Merger

　　　　The Merger is an absorption-type merger under which Shionogi Pharma shall be the company surviving the Merger,

　　　and Nagase Medicals shall be absorbed in the Merger.

3.        Prospects

　We expect the impact of the Merger on Shionogi’s consolidated business performance for the period ending March 31, 2022 to be minimal. 

For further information, contact:

Shionogi Pharma Co., Ltd., Corporate Planning Department

TEL：+81-6-6381-7402

End of Document