Print（PDF/3MB） May 13, 2025 Finances

Sumitomo Pharma Announces Reboot 2027 – Reboot for a Strong Sumitomo Pharma –

Sumitomo Pharma Co., Ltd. (the “Company”) passed a resolution at its Board of Directors meeting held on May 13, 2025 to formulate “Reboot 2027 - Reboot for a Strong Sumitomo Pharma -,” which outlines the activity policy for FY2025 through FY2027, as detailed below, and to withdraw the Mid-term Business Plan 2027 (FY2023-FY2027) announced in April 2023.

1. Background to the Formulation of “Reboot 2027”

Under the Mid-term Business Plan 2027, the Company has adopted the basic strategy to “Make a ‘qualitative transformation’ of the business structure and business practices.” The Company has operated business by positioning this period as a time to build a foothold for achieving renewed growth after the loss of exclusivity (LOE) of LATUDA® in the U.S. and for establishing a position as a Global Specialized Player (GSP). Although the Company experienced a significant decline in business performance in FY2023 due to missed key milestones, it has established a growth trend with four products (ORGOVYX®, GEMTESA®, MYFEMBREE®, and RETHYMIC®) acquired through the strategic alliance with Roivant. Combined sales of these four products reached USD1 billion in FY2024. In addition, as part of a fundamental structural reform across Sumitomo Pharma Group (the “Group”), the Company implemented initiatives such as streamlining, selection and concentration, revision of R&D investment strategy, and governance reforms. These efforts and successful refinancing led to strengthen the Company’s financial foundation. The Company also undertook business restructuring (formation of both joint ventures for the Asia business and the regenerative medicine/cell therapy business, and the Frontier business transfer), thereby reinforcing strategic investments in growth areas. As a result of these initiatives carried out in FY2023 and FY2024, the Company achieved a V-shaped recovery in business performance.

The Company believes that the period from FY2025 to FY2027 represents a critical phase marked by key milestones toward rebuilding a “value creation cycle,” including revenue base stabilization through the sales growth of three key products and the commercialization of products in the fields of regenerative medicine/cell therapy and oncology. To this end, the Company has formulated “Reboot 2027 - Reboot for a Strong Sumitomo Pharma -”as the activity policy for FY2025 through FY2027, aiming for a resurgence as an R&D-driven pharmaceutical company.

2. Financial Targets under “Reboot 2027”

By FY2027

Sales of three key products	Expand to 250 billion yen
Core operating profit	Consistently more than 25 billion yen, excluding one-time factors(from FY2027)
Free cash flow	Maintain profitability (FY2025–FY2027) →Return to profitability excluding sales-related income (FY2027)

As early as possible

Interest-bearing debt	Reduce to less than 200 billion less by implementing further measures

With regard to dividend policy, priority will be given to the repayment of interest-bearing debt for the time being and the Company aims to resume dividend payments at an appropriate time.

3. Key Initiatives under “Reboot 2027”

The Company will work to establish a P&L base by maximizing the value of existing products, centered on the three key products, and implementing thorough cost management while also maintaining positive free cash flow and securing the next revenue base through strategic selection and concentration within the development pipeline. Furthermore, to restart as an R&D-driven pharmaceutical company, the Company is committed to realizing in-housel innovation in the oncology and regenerative medicine/cell therapy fields as a must-achieve goal. In addition, to continuously create and implement innovations in society, efforts will be made to improve the accuracy of success in R&D.

The position the Company aspires to establish by FY2033 is to become a company that strongly turns the “value creation cycle” and continuously translates innovation into real-world solutions focusing on disease fields in oncology, psychiatry & neurology and others, and on modalities such as small molecules and regenerative medicine/cell therapy. By turning the value creation cycle, the Company will strategically deepen and expand these strengths as well as establish a distinctive global presence in order to contribute to the betterment of healthcare and fuller lives of people worldwide.

"Reboot 2027" focuses on the main initiatives for FY2025 through FY2027, and the Company plans to develop a comprehensive growth strategy after confirming the progress of these initiatives.

*For further details, please refer to the attached presentation materials (an excerpt from the FY2024 Financial Results and Reboot 2027 - Reboot for a Strong Sumitomo Pharma - briefing materials).