Sale of Equity Stake in Upsher-Smith Laboratories, LLC

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) hereby announces that it has agreed on January 16 to sell its entire 20% stake in Upsher-Smith Laboratories, LLC (hereinafter, "USL"), an American generic pharmaceutical company, owned through Sumitomo Corporation of Americas to Bora Pharmaceutical Holdings, Inc. (hereinafter, "Bora"), a contract manufacturer of pharmaceuticals, for US$42 million. The sale is scheduled to be completed in the fourth quarter of Fiscal Year 2023, subject to the completion of necessary approval procedures required by law.

Sumitomo Corporation has been engaged in the manufacturing and sales business of generic pharmaceuticals in the U.S. since its investment in USL in 2018. Under its Medium-Term Management Plan “SHIFT 2023”, Sumitomo Corporation has set a goal of shifting its business portfolio and has been executing strategic asset replacement. As a part of this effort, we will sell our entire stake.
We expect to recognize a gain or loss equivalent to our equity stake in our consolidated financial results for the fourth quarter of the fiscal year 2024. The impact of this sale on our consolidated financial results for the fiscal year ending March 31, 2024 will be negligible.

 ■Profile of Upsher-Smith Laboratories, LLC

■Profile of Sawai America LLC

■Profile of Bora Pharmaceuticals Co., Ltd. (*)