JCR Pharmaceuticals : Notice regarding Capital Expenditures to Increase Production Capacity at the Seishin Plant

07/31/2020 | 03:07am EDT

News Release

July31, 2020

JCR Pharmaceuticals Co., Ltd.

Translation

Notice regarding Capital Expenditures

to Increase Production Capacity at the Seishin Plant

JCR Pharmaceuticals Co., Ltd. (TSE 4552: Chairman and President Shin Ashida, "JCR") announced today about capital expenditures to expand the manufacturing area to increase production capacity for TEMCELL®HS Inj.

Seishin Plant, one of JCR's production bases, manufactures TEMCELL®HS Inj., a regenerative medical product, and medical devices. Medical institutions have highly rated TEMCELL®HS Inj. since its launch in 2016 and JCR has received orders far in excess of its initial forecasts.

JCR has addressed this increased demand by moving ahead with efforts to increase production, including boosted capital expenditures up until now, and has now decided to expand the Seishin Plant's manufacturing area to further expand its production capacity.

This expansion will raise the production capacity for TEMCELL®HS Inj. by about 30% over current levels, ensure an appropriate inventory and enable sufficient supply to meet the market's robust demand. The concept, specifications studies, contractor selection and other matters related to this expansion have already been completed.

Costs foreseen in this expansion are mainly expected to arise in the future and are expected to have only a negligible effect on JCR's consolidated financial results for the fiscal year ending March 31, 2021.

As a specialty pharma engaged in the development of pharmaceutical products for rare diseases, JCR will continue to strengthen business activities in the future and strive to contribute to the treatment of as many patients as possible.

• Overview of the Manufacturing Area Expansion Plan

	Establish a new manufacturing area by expanding within the
Investment Details	Seishin Plant, increase the TEMCELL®HS Inj. production line
	and enlarge storage space.
Total construction costs	Approximately 200 million yen

Start of operationsMay 2021 (scheduled)


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