Ladies and gentlemen, since it's time, please. About acquisition of Idorsia's Pharmaceuticals business in Japan and APAC, ex-China, by Sosei. We would like to have a press conference. Despite such a short notice, we would like to thank you for coming, such a large turnout. I'm at the venue. Here at the venue, not all of you are here, but more than 220 people are joining us on the web. Allow me to get started. Today, for one hour, 5:00 P.M. to 6:00 P.M., we'd like to have this meeting. First from us, we would like to do the presentation here at the venue, using the materials for the presentation. Followed by the questions and answers. Time is limited. Allow us to get started. First, allow me to introduce today's speakers. To your right, and left-hand side, that's Chris Cargill, Sosei CEO. Right next to him, Idorsia Pharmaceuticals Japan Representative Director, President Satoshi Tanaka. I am the CFO of Sosei Group, Hironoshin Nomura. I'll be MC today. I'd like to invite Chris to talk about this acquisition of Idorsia's Pharmaceutical business in Japan and APAC, released today. Chris, the floor is yours. Thank you very much. Can you hear me? Good afternoon, ladies and gentlemen. My name is Chris Cargill, CEO of Sosei Group. Slide 3, please. Thank you. Here, let me welcome the newest member of our executive leadership team, Dr. Tanaka. Today is an exciting day for Sosei, as we announce the acquisition of Idorsia's Japanese and APAC business. This is a fantastic transaction that will create significant value for Sosei immediately and in the years to come. The transaction brings a highly experienced clinical development team and profitable commercial operation to our world-leading drug discovery platform. This transaction accelerates our mission to deliver life-changing medicines to patients. Sosei is now a fully integrated biopharma, committed to helping patients in Japan and APAC. Next slide, please. This transaction is valued at JPY 64 billion. The transaction is highly funded, fully funded from our existing cash, plus a new seven-year long-term, low-rate corporate loan from Mizuho. Sosei will have JPY 42 billion of cash remaining after the transaction. The transaction is expected to be cash flow positive in its first full year after acquisition. The transaction will achieve double-digit rates of return. The transaction brings two major products, PIVLAZ and daridorexant, plus rights for up to seven more products. We have the rights to develop and commercialize all the potential products in all markets across APAC, excluding China. PIVLAZ is commercially available in Japan. PIVLAZ was launched last April, and we expect fast-growing sales over the next few years. To date, over 6,500 patients have been treated with PIVLAZ, and this number is growing and new researchers increase usage. Next, concerning daridorexant. Daridorexant is already approved in the US and Europe. It is a best-in-class treatment for insomnia, a major unmet need in Japan. Positive phase III data in Japan was achieved in 2022. Filing is expected in 2023. Launch is expected in 2024. Daridorexant will be co-promoted with Mochida and Shionogi. We expect the combined peak sales of both products across the territory to be more than JPY 35 billion. This transaction with Idorsia secures our business in Japan and provides a platform to expand across APAC. We expect the transaction to generate multiples of value compared to the price Sosei has paid. Next slide, please. The transaction has four major investment highlights. To accelerate our mission to deliver medicines to patients. It secures and expands our in-house pipeline, adding two major products, PIVLAZ and daridorexant, plus up to seven other products. It brings a highly skilled team with a proven track record and several product approvals and successful commercial launches. It enables us to leverage the best of Japan's quality clinical environment to expand to the high growth APAC region and extend product launches. Next slide, please. The Idorsia Japan commercial business is profitable and fast-growing. The commercial strategy is focused on a small number of the internal MSLs and MRs. The business model leverages digital engagement and contract to sales forces to grow sales profitably. This approach has driven a leading industry profitability ratio in the first full year after the launch of PIVLAZ. This lean commercial strategy will create a strong synergy with our existing business, also drive industry-leading profit ratios in the long term. Next slide, please. The transaction can transform our in-house pipeline over the long term with up to nine programs. PIVLAZ is in its first full year post-commercial launch, is expected to continue to grow fast. Daridorexant has many near-term milestones before a potential launch next year with co-promotion partner, Mochida. Going forward, we'll be less reliant on our partnered pipeline for revenue and news flow catalysts. The transaction gives us greater control to deliver medicines to patients. This will create value for shareholders. Next slide, please. Taking a different view, the transaction means we have three sources of innovation to feed the pipeline. For the first time, we will have a leading capacity in Japan and APAC to take programs from discovery and development through to profitable commercialization. Sosei can deliver medicines to patients itself in Japan and APAC, and globally with partners. We also expect Sosei to become a partner of choice for pharma companies that want to access the high-growth APAC region. This will create values for shareholders. Please turn to the next slide. We are acquiring a highly skilled team with a proven track record of success in Japan and APAC. Dr. Tanaka will lead our new Japan and APAC business. In respect of his leadership, we have also invited Dr. Tanaka to become a new executive officer of Sosei Group. Dr. Tanaka's team has delivered several product approvals and successful commercial launches in recent years. This expertise is rare and valuable. We're so happy to welcome Dr. Tanaka and team to Sosei. Next slide, please. Japan is renowned for its quality healthcare system and clinical environment. Japan is the second largest developed single pharma market in the world. Japan is an excellent location to deliver innovative medicines to patients, and to extend those medicines to patients across APAC. APAC is one of the fastest growing regions. APAC is readily accessible with quality clinical data from Japanese approvals. This transaction will enhance our Japan focus and enable us to expand to APAC. These strategies are aligned with the goals and initiatives of Japan's MHLW. This will secure a long-term growth potential and make Sosei a partner of choice for pharma companies that want to access this high-growth region. I'd like to ask Dr. Tanaka to give us his presentation. This is Tanaka speaking. Allow me to give you some explanation. Idorsia Japan, Idorsia Korea, on behalf of the two entities, we are so excited by this deal, because as I can share with you now, the two companies' collaboration has extreme good synergy. Next, please. Currently, already available products for subarachnoid hemorrhage. I'd like to come back to this later, with PIVLAZ. The third quarter this year, it'll be the filing for insomnia. This is QUVIVIQ, and SAD treatment. World first, already administered the drug, cenerimod. For Fabry disease drug, globally, it's already in the phase III, and Japan, we are preparing for the phase III. In addition, for pipe products, negotiation rights, ROFR, ROF, if any of these will be available, we'll create a solid platform. Sosei Group generates a lot of new products. First time in Japan, we'll be developing. This synergy is something we value, and we are so delighted. Next, please. Currently, PIVLAZ is already available for the first time in 25 years for subarachnoid hemorrhage. After the hemorrhage, there's vasospasm and also the stroke and the neural disorders, they can be prevented by this drug. For the first time in 25 years, here in Japan, it's been approved for development. For Sosei Group, it has a lot of impact, we are proud to say. Compared with overseas, we are actually ahead here in Japan for development, and it's been approved. With this, in South Korea, we are in the process of filing. In a few years, it's likely to be approved. Subarachnoid hemorrhage, in principle, in North America, more than eight persons, European, that's eight persons per 100,000, but here in Japan and South Korea, it's 3x as much, per 100,000, 28 persons. You can see this, the morbidity is pretty high. In these markets, this drug is being welcomed by doctors. Already, more than 6,500 patients have been administered with this particular drug. Well, last year, it was launched in April, and NHI's new JPY 7.5 billion revenue was listed. This year, it's about double. More than JPY 13 billion is likely to be listed. Next page, please. For this is insomnia, sleep disorders. Here in Japan, something unique. Placebo-controlled clinical tests and long-term safety-related tests were conducted, Japan-specific ones. October last year, the results were very good. We reported that result. Actually, in the Western countries, it's already launched, and then we are able to get even better data than the Western countries' data. For this product, we the drug allocate insomnia, sleep induction or prolonging the sleeping time, these are two the mechanism of action, but our drug is reducing WASO, the wake after sleep onset, and also there is no next day sleep. Or reduced next day sleep. For this particular drug, we are very much interested in seeing this drug being prescribed. I'm sorry that I quickly went through my presentation, so I think we need to go back. Of subarachnoid hemorrhage. After the subarachnoid hemorrhage, you have to stop bleeding. That's first of all, you have to dance after stopping that. From the hematoma, there is endothelin, and then there is vasopressin. That stops the flow or, and then that could lead to stroke, and that could lead to neurological disorders. Here, ours prevents vasospasm. By preventing vasospasm for subarachnoid hemorrhagic patients, because of hemostasis, rarely they die. With vasospasm, there's maybe sometimes they suffer the neural symptoms, and then the biggest problem is that they cannot go back to the workplace. This drug overcomes that difficulties, that problem. April, it was launched last April. August this year, the, in the guideline for stroke, brain stroke, it's already listed there. Highly appreciated in the first guidelines. This one is receiving the highest evaluation in terms of its listing in the guideline. Next page, please. Thank you, Dr. Tanaka. I touched up on this already a little bit. For the treatment drug for insomnia, in Japan, I think there is estimated 14 million people with insomnia. Orexin is a very strong, and also it doesn't have the Wake After Sleep Onset, and then there is no next day sleepiness. This drug needs is increasing. In the future, I believe that the 40% of share, or maybe more than 40% of share, can be obtained by this drug. Next slide, please. As a result, the reduced WASO and also time to sleep induction time is being shortened. However, the clinical trial data in Japan is equivalent to other ones in a global study, this is a dose-dependent result, it was reported in October of last year, physicians are waiting for this drug to be launched. Thank you. Cenerimod, this is for SLE drug, we are preparing the phase III trial for systemic lupus erythematosus. Normally, injectables are used, however, this is oral drug, have a comparable efficacy with the injectable drug. Lucerastat is for Fabry disease. Currently, phase III study is completed, including global study. This is again, oral drug, to treat Fabry disease. This is the first oral drug in the world. As I said earlier, that global study is significantly done, and Japanese clinical research is included in global study. Having said that, a Japanese site or Japanese patient are sometimes difficult to be included in global study. Rather, a Chinese site are included more often than Japanese sites. However, under this environment, the clinical trial started in Japan, and also filing is done with Japanese data. That is the experience that we have been accumulating. As a new product of the Sosei Group, including our existing product, we can start the development originated in Japan, and we have a very high expectation for us to be able to do that, to create a synergy. That is the reason why we are very much excited. That is all from me. Thank you. Tanaka-san, thank you very much. Next slide, please. Thank you. I will summarize today's announcement over the next few slides. We have now 370 employees globally to help accelerate our mission and vision. We expect to merge Idorsia Japan with our existing Sosei Japan business in the next 12 months. We expect to form a single global brand and corporate identity in 2024. Next slide, please. Our pipeline is now broad, diversified, and balanced. We are pioneering novel therapies across multiple therapeutic areas. We are now a fully integrated biopharma business with fast-growing sales and near-term product launches. Next slide, please. We now have greater control over our pipeline, news flows, and value catalysts. This slide shows there are several catalysts on track to be achieved in the next 18 months. Next slide, please. The transaction has four major investment highlights. It accelerates our mission to deliver medicines to patients. It secures and expands our in-house pipeline, adding two major products, PIVLAZ and daridorexant, plus up to seven other products. It brings a highly skilled team with a proven track record of several product approvals and successful commercial launches. It enable us to leverage the best of Japan's quality clinical environment to expand to the high-growth APAC region and extend product launches. Next slide, please. We are on track to achieve our 2023 vision. Thank you for your time. We will now take questions. Thank you for your kind attention. Also on the webinar, thank you for joining us. 345 of you are viewing, despite this such a short notice. Thank you so much for joining us. We would like to entertain your questions in this Q&A. In this meeting, it's held in a manner that anybody can participate, media, institutional investors, analysts, mainly those of you are the targets. The media, institutional investor, analysts, those of you who are at the venue, if you have a question, please raise your hand. From Zoom, so many of you are participating. As we understand, there is a Raise Hand button. Similarly, if you have a question, please press the Raise Hand button, and allow me to invite you for questions. The rest of you, there are so many of you are participating, but in the webinar, there is a Q&A corner available, and please use the Chat function. Later, please give me some time, but I would like to address those questions on behalf of you. If you have a question, please raise your hand. The gentleman over there, please. Miura is my name, from a securities company. About accounting, two brief questions. Later, if time allows me to do so, two more questions. First, acquisition, CHF 400 million. Allow me to use the Swiss franc. CHF 400 million, and for the equity, Japan and Korea, CHF 45 million. The difference between the two, that's the intangible assets concerning products, as I interpret. Concerning this, the PPA or how to respond to PPA or some conditions, and after amortization of the intangible, on the accounting base, making a profit, do you think you can actually generate profits? Thank you for your question. I think allow it would be appropriate for me to address that question, so allow me to do so. In this material, if please look at page 28. We deleted it from the main part, but regarding the accounting matters, there is a slide available. As you rightly said, the acquisition price is at JPY 65 billion, as Chris said. There, regarding your question, in the center, this is JPY 65 billion goodwill, and it's about accounting intangible assets. Intangible assets, how it's going to be, What about the amortization? With this amortization, there'll be no payment out, but there will be accounting-wise losses, so can we still generate profits? I think that was your question. Goodwill and intangible assets, regarding the balance between the two at the moment, with the accounting firm, we are still in the consultation. It's being scrutinized. As you asked, intangible assets is likely to be higher. Without doubt, we believe that will be the case. Regarding the intangibles, generally speaking, this patent period, depending on the drug, there will be amortization. How it's going to be amortized in detail, it has not been decided. To put it plainly, for quite a long time, there is going to be amortization. PIVLAZ, less than 10 years, we still have the period patent. QUVIVIQ, it's longer. I wouldn't say 20 years, but more than 15 years will be protected by patents, as you saw in the slide. For very long time, the amortization is going to take place. That's our estimates. After the amortization, can we still maintain generating the profits, profit, income? Of course, that's what we intend to do, and that's how we would like to do the M&A. In terms of doing the M&As. Going away, getting away from the amortization, peak sales, peak EBITDA, just for your reference, we put that in the material. As Dr. Tanaka said, current PIVLAZ was just launched last year, so this is just year two. It's still growing. In addition to PIVLAZ, QUVIVIQ, daridorexant for sleep disorders. Together with that, APAC, we have rights covering the entire APAC. If I say immediately, it's not one month, two months, I don't want to mislead you, but already it's kind of a visible market, Japan, South Korea, Thailand. For three areas, even if we just focus on those, that's JPY 35 billion or even more. EBITDA, again, this is just estimates, but JPY 10 billion, more than JPY 10 billion. On the right-hand side, as you can see, the obviously, the we have rights covering the broad areas, and as we said, together with obtaining rights in total for nine products, we do have certain kinds of right, rights. This is just, these are just two of them. As they grow, the, we... That we can reap better profits, we, as an entire team, we would like to work. I just deviated a little bit, and that's my answer. Thank you. Is there going to be a the price against based on the condition? No. In terms of options, there is a certain option the amount. The second question, you will have the long-term loan, and I think the table and the spread is the interest rate for the loan. The interest rate, it seems to be going up, I just want to confirm that for seven-year long-term loan, in terms of the interest, is that a variable, is that a fixed rate? If it's, even if it's a variable, it, can it change it to the fixed rate? I'd like to understand the risk of interest rate. Yes, thank you very much for your very important question. In conclusion, it's a fixed rate. Rate actually is... I wanted to disclose, however, when we talked to Mizuho Bank, we are not able to disclose that number. We can all say that Mizuho Bank is very cooperative with us. We appreciate their effort. Interest rate is going up, particularly in overseas market, as you all know. In Japan, still, low interest rate is being maintained. We're not able to give you the general interest rate talk. However, it's between 0.5%-1% interest rate is still a standard rate in Japan, generally speaking. What I'd like to say is, as Chris said, we are able to receive a very low rate, even if it's between 0.5%-1%, we don't call it low, because it's a standard. We are able to receive very attractive rate. Again, we appreciate Mizuho Bank's cooperation. That's all for me. Third question, related to business. PIVLAZ, very attractive, interesting drug, I think. Subarachnoid hemorrhage and vasopressin, are there any other drugs that's used? What about the competition landscape, the existing ones and the ones being developed? What about the situation here in Japan? In addition to that, 2022, there was a launch in Japan, and by 2030, that you have exclusivity in terms of sales. Normally, eight years or nine years strike me as kind of a short period. Is there a possibility to extend that exclusivity period? I would like to invite Tanaka to address the question. Currently, 25 years ago, there were two products launched, ozagrel, fasudil, those are being used. For the first time in 25 years, this is now launched, and that's why doctors are happy. Regarding this drug, currently, 10 years is what we have in my mind, but including the expansion of the indications, we believe it's a very valuable drug. This year, already in October, for brain stroke, it's listed. That means it's highly valued. I'm pretty sure you can understand how it is valued, appreciated. My last question about acquisition. As Sosei, not only about the product, but in terms of science know-how, or Dr. Tanaka, you are able to invite Dr. Tanaka as your management. You have a strength of the operation in terms of science and also the business operation, what kind of synergy you can expect, and with what timeline? I would like to understand your future, the outlook and also your expectation. I'd like to ask Chris to give us your the answer to your question. Sure. Thank you for the question. These two businesses are highly complementary. Obviously, our research and discovery platform in the UK is world-class, and we talk a lot about taking programs through to early development, phase I, phase I-B, and that's what we do in the United Kingdom. What Tanaka-san and his team have been doing consistently for the last two decades, is taking products through phase II, III, and registration. The natural synergy for us now is we have a team that has a lot of experience that can take products all the way. We really hope now that we will be, at some point in the near future, discovering products at our research facilities in the UK and delivering those products through the business that we've acquired today to patients in Japan. There'll be no change to the way that we develop drugs in the United Kingdom. You know, if there is a right value inflection opportunity to work with a partner to take the product global, we will continue to out-license the partners globally. What we will do more of going forward is, if that program is valuable and there is a commercial story and a patient need in Japan, we will be keeping those rights for ourselves and delivering the medicines to patients in Japan and APAC ourselves. That you can sort of see how the business fits really well. If we had not had the opportunity to work with Idorsia, this was something that we were already planning to do. It's just, if we had have done it organically, it would have taken a lot longer. By my estimate, we've probably saved ourselves five to 10 years of organic build-out. We've got the products now to support that pipeline for the next, you know, 10 years, certainly. Dr. Tanaka is going to give you additional information of the pharmaceutical company. Sosei has a great seeds, also they are having a licensed partner. However, with this development team, Idorsia, we can develop much quicker and to deliver the program product to the market faster than before. That is the best synergy. In Japan, we can have a high quality product development, this is highly well received by Japanese physicians from clinical. The development, we are developing as commercialization in our mind. Congratulations. Congratulations, please, Tanaka-san, Nomura-san. Thank you. Thank you. Any other questions? Raise your hand, please. The gentleman in the front. Wait for the microphone, please. Toyo Keizai, Onishi. I have several, so perhaps one by one, please. This IPJ, the acquisition of this company, Sosei, you have been saying that you am doing M&A, and in Japan, late development stage products or the already marketable products, and then introducing them and becoming a company, pharmaceutical company here in Japan. I thought those two were different, looks like you are doing both of them at the same time. Am I correct in interpreting in this way? In other words, M&A, are you going to just pursue M&A separately, JPY 65 billion, given this value? I think my first estimate is correct. I just wanted to clarify. I just wanted to ask this question: Why did you take this kind of a methodology or this way? Doing M&A in the United States, in terms of enhancing function, expanding the regional coverage, that would probably be the best scenario. Well, I used to think in that way, but here in Japan, fortifying it in Japan, I would understand. How come you didn't do the M&A in the United States? Why did you decide to do the transaction in this way? That's my question number one. Could I invite Chris to address the question, please? Sure. We are a company that has grown consistently in the last 20 years by acquisition, we're very focused on using M&A as a way to accelerate our growth. Our first acquisition was Arakis in 2005. That brought us our first product, Seebri, Ultibro, and Enerzair, which are currently marketed by Novartis, and we receive royalties still to this day. 10 years later, the discovery platform that would give us all the seeds that we need to build a really strong discovery business, that was Heptares. Now, eight years after Heptares, we have found the perfect complementary acquisition in Idorsia, Japan, and Korea, which gives us the ability to not only market drugs that target GPCRs to patients in our home market, we are a Japanese company. Also to help us pull through those seeds discovered in Heptares and deliver those to global partners and also to Japanese patients. We think the timeline, the acquisitions, they fit very, very well. Why did we not do a deal in North America? The reality is an attractive place, but it's an extremely competitive place as well. Asset values can be very, very high, and we, as a company, we actually don't have any experience operating in North America. All of our exposure to North America is currently with partners. Do we want to go to North America someday? Yes, we do, but we want to do that from a stronger base, and we found the perfect opportunity in Idorsia, Japan, to build a strong base in our home market so that we can grow corporate value, generate profits, and be in a stronger position when the time comes to go to North America. North America is competitive, it's capital intensive, and you need to be a very strong company to play in that market. We think we would like to build a stronger foundation and base in our home territory first, before we seek to expand to North America. Please use the microphone. Please use the microphone. You're correct. My second question: seven-year long-term loan, that means that you are confident that you can repay JPY 45 billion in seven years. If you have the cash flow in seven years, that you'll be able to repay JPY 45 billion for seven years. I'm just trying to understand the meaning of seven year in terms of a loan and the synergy by this acquisition. Sales and EBIT, I understand, cashflow, what is your expectation or forecast of cashflow being generated every year for upcoming seven years? Thank you very much for your question. Chris, would you please answer about the synergy? I would like to talk about cashflow. Chris, please. I think I got the question, but basically, our current business model is cashflow neutral to cashflow positive, because we don't spend excessive amounts on R&D. We rely on partners to support that cost. We are adding, on top of that business, another business, which is cashflow positive. We expect, fully, over the next seven years, that not only will sales and EBITDA increase, EBITDA is a proxy for cashflow, cashflows will also increase. I can assure you, Mizuho would not be lending the money to us if they did not think that our business, which is cashflow positive, could support the repayment plan over the seven years. It can, and it will very comfortably cover the repayments. What you will see over the next three to five years is a real change in the shape of the P&L of the company, but also the sustainability of cash flows. Our business today, before Idorsia, Japan, the cash flows are very lumpy. They only come when a milestone is generated or when a partner chooses to work with us. Going forward, we now have a business that sits on top of that, which has a revenue line which goes like this, right? We don't have any expensive clinical trials that need to be done on PIVLAZ and daridorexant. It's just sales and marketing expenditure that will increase. That expenditure will drive sales and cash flows. I don't have anything to follow up, simply said, in seven years, can we repay with a positive cashflow? As Chris said, "Yes, we are able to do so." If I were to give you just additional information, cashflow base is, of course, it's based on the repaying of loan, but in terms of PL, as you understand, that it doesn't impact. PL, the income is excluding the repayment of the loan with a certain amount of amortization. Also synergy is was one of your question. Synergy is not reflected when the bank did the valuation. If you ask us what will be the amount of the synergy in terms of cashflow generation, I'm not able to answer that. The including the new product development, the Heptares development is also generating the cash flows. Third question. Regarding the acquisition, this IPJ, Japanese entities function- ... clinical trials, clinical tests. Before overseas, focusing on Japan, there's development and clinical trials, capability, and also doing the tie-ups with overseas partners. It will be a lean team that has the sales capabilities. That much I understood, this IPJ, drug discovery and research, Do you have that function? Home market or external markets will be licensed in development products, and then you will work on the development in Japan. Is that how it is done? Tanaka. I will invite Tanaka. Thank you for your question. As you already know, we, Idorsia, headquarters in Switzerland. From that research, with Japan and Korea, we do the development. This deal concerning the synergy, so the new products are from Sosei. We do the clinical trials, and then we market them, including the licensed in. I hope you will interpret in this way. Thank you. Please use the microphone. The translator cannot hear. Please use the microphone. Translator cannot hear the question. Please use the microphone. Translator cannot hear the question. Ah,...</u Sorry. Sosei is continually doing the drug discovery, and also there's a program that you can actually develop what you discovered. Do you think that you have enough resources in terms of headcount in Japan to do that? How many staff do you have? Dr. Tanaka can answer. As a clinical development, you have about 80 people. Actually, we are not thinking of doing everything on our own, because some indication has a very big market, then we look for a partner. Maybe we will do the license out totally, or maybe we will do the joint development. If- It's an indication. There's a global niche indication which we can take care of everything, we will do that. In terms of sales and marketing, for GP market, we are not thinking of the covering GP market. We are thinking of covering HP with more than 200 beds. Thank you. Thank you. Thank you for your questions, sir. From the web, there are so many hands raised, so Let me pick up some questions. I will invite you, so unmute yourself and state your question. First, Kikuchi-san. Kikuchi-san, unmute yourself. State your question, please. Nikkei Biotech, the... This is Kikuchi speaking. Can you hear me? Yes. Several questions. First of all, this transaction, regarding the rights you could get for all items, developments, and also the sales, you have the exclusivity options. Am I correct? Chris will answer your question. Sure. There's a few types of rights and options that we have. On the cenerimod and the lucerastat, that is an exclusive option to license those products. The fee, the upfront fee payable to license them in is very small. If we license them in, if we choose to, we will of course, cover the development costs associated with developing the products in Japan, and then we will pay an up to single-digit royalty back to Idorsia. It's a very nice way of adding to the pipeline. There is already significant clinical data that has been generated on those programs, so if we can find the right indication to develop them for in Japan, we will. With regard to all of the other programs, yes, what we have here is a right of first refusal and a right of first negotiation. The easiest way to explain this is, we haven't yet licensed these programs in, but we are now the partner of choice for Idorsia in Japan and APAC. If those programs are advanced by Idorsia globally, and they do well, then there's a very good chance that we will become the local partner for Idorsia in Japan and Asia Pacific markets. That's how we wanted it to be. We want to maintain a strong relationship with that business, and they want to maintain a strong relationship with us because, you know, they were the ones that built the business here. It's Idorsia's people, we're going to have a very close relationship going forward. I would like to add that it's not just these Idorsia programs. You know, as Tanaka-san said earlier, we now have three sources of innovation to fuel this business. We have all of the seeds developed at Sosei Heptares in Cambridge, U.K. We have these selected rights to these programs that were discovered by Idorsia, but we also have the opportunity now to be the partner of choice for other biotech and pharma companies who want to use our platform and capabilities to access Japan and Asia. It's an important market. Japan is the second largest developed pharma market in the world, and the rest of the APAC ex-China region is the same size as Japan. There's two Japanese-sized markets that we're playing for here. It's an often forgotten area of the pharma world, but it's a very important part of the world. It's growing, it's affluent, and it's a really good place to do business. Did he answer your question, Kikuchi-san? Yes. Depending on the product, the right varies. Allow me to explain to you using this slide. In terms of region, the same. Regions are same, Japan and APAC, excluding China. There's a 15 country on this slide, including Japan. That's the region. Rights are different. Please take a look at the daridorexant and PIVLAZ. That's, we in-license this. We would like to make sure that these two products will be a core product for ourselves. Also, there's a yellow two boxes, cenerimod and lucerastat. We have, if we would like to, then we can exercise our option right. We can change this yellow to green as an in-license product. Option fee is quite small, so that it really depends on our decision to sell, do this in Japan. Other 5, this grayish color, we have the right for the first negotiation. They'll come talk to us and also Idorsia headquarter. Understand that how excellent the staff of Idorsia Japan is, so we are able to maintain a good relationship with the headquarter, but they have to talk to us first for these five gray products. Did we answer your question? Yes, thank you very much. Yes. Maximum, that concerns me. The right of first refusal, right of first denial. At the moment, nothing is certain, that's why a maximum. Is that what you meant? Yes. Daridorexant, it's already been licensed in. Filing in Japan, when you do so, that will be under the name of Sosei? I would ask Tanaka to address that question. Currently, including clinical development, Idorsia Japan. Under the name of Idorsia Japan, the filing with the authority has been conducted. At the moment, we are planning to use our name for filing. Thank you. About PIVLAZ, Korean filing, is that the same? Yes, it's the same. Thank you. This is a detail about PIVLAZ sales. The amount for 2020, JPY 7.5 billion, and JPY 113 billion for 2023. These are the Japanese sales, yes, sales in Japan. Exactly. Cenerimod, lucerastat, phase III test, both are global tests. Globally, we are doing clinical tests, and also here in Japan, local phase III tests are ongoing. Thank you very much. That's all. Thank you. Thank you very much. Unfortunately, we are running out of time. We are not able to take, questions right now. However, there are two chat questions that I would like to read, and I, you know that, we will respond, to chat questions via our official blogs. If you still have, questions, if you write down chats with just little bit time lag, we will respond to your questions. Allow me to read, the existing chat questions, and please take, this time to write your, chat questions. There are many chat questions, but allow me to, select two. One of them is about, QUVIVIQ. This is a question to Dr. Tanaka about QUVIVIQ, overseas sales. I heard that, our sales is not really going well in overseas market. Based on that, what will be the market size that you expect? If the QUVIVIQ the overseas sales is not going well, what do you think are the reasons for? Yes, in the Western countries, Europe and the U.S.A, the direct extension is not really highly awared. Benzodiazepine is much stronger, so it's used more frequently. However, Orexin, as Masashi Yanagisawa discovered and developed, is well understood in Japanese market. Orexin market itself in Japan actually has a 22% or 25% of sales in Japan, and also there are lot of patients. In 2030, Orexin market will grow to about 45%. That is our expectation. Just to supplement regarding, you might know, but as Tanaka said, DORA class in Japan. In Japan, the share is high. The other pharmaceutical products in Japan, 8%, 10%, sleep pills, according to our survey, for in so many DORA class, more than 70% are sold in Japan. It really specializes quite a lot here in Japan. Just additional information. Question, if I may, I think it's for Chris. Going forward, your own developed products, now developing them in Japan and in-license, I'm doing those in Asia. Regarding the growth strategy, what will be the time schedule, and what will be the quantity? What kind of numbers do you have in your mind? If you have those numbers in your mind, please share them with us. Good question. I don't have a set number of products that we will develop, because the way drug discovery and development works is when we have a good product that is ready to be developed for Japan, if we think that there is a good business case to do so, we will do that. What I would very much like to see, and I'll talk visionary, what I would really like to see us do, is develop at least one program from our internally discovered portfolio. So a program that was discovered in the United Kingdom at Sosei Heptares. I would like to see one of those products developed for patients in Japan over the next few years. When it comes to in-licensing, those opportunities are more ad hoc in nature. Yes, we have a discovery capability. Actually, what we're about is delivering medicines to patients. If there are patients in Japan who are waiting because there's a drug that exists overseas, but it hasn't been developed for Japan, and we can help, then that's what we should do. We want to deliver medicines to patients, and where they come from, whether that's our in-house discovery from Idorsia or from another pharmaceutical company, we're about patients first. Thanks. Thank you very much for your questions. We would like to close this meeting. As I said, if you have a chat, questions written, we will respond to you later. In terms of this meeting, we will upload the video later using our homepage. Again, thank you very much for attending this acquisition of Idorsia Pharmaceuticals business in Japan and APAC, excluding China, the press conference and meetings. Thank you.