Sumitomo Chemical Announces An Expansion Of The Production Capacity Of Its Regenerative Medicine And Cell Therapy CDMO Subsidiary

Construction of a Third Manufacturing Facility Completed and Starting Construction of a Fourth Manufacturing Facility to Further Expand Business

Sumitomo Chemical Co., Ltd. (“Sumitomo Chemical” or “the Company”) hereby announces that S-RACMO Co., Ltd. (“S-RACMO”), a subsidiary 66.6% owned by Sumitomo Chemical and 33.4% by Sumitomo Pharma, has completed construction of its third regenerative medicine and cell therapy manufacturing facility, known as CRAFT ^(*1) (“the Facility”). S-RACMO implemented this project as part of capital investment to increase its production capacity, which needs expansion to meet strong customer demand. The capacity has now approximately doubled, and will support the sustainable growth of S-RACMO’s CDMO ^(*2) business. Construction of a fourth manufacturing facility is planned to further expand business.

S-RACMO is a CDMO business company that undertakes the development of manufacturing methods and the manufacturing of products in the field of regenerative medicine and cell therapy. Since its founding in 2020, the company has worked to build up and upgrade its capabilities as a regenerative medicine and cell therapy CDMO by leveraging Sumitomo Chemical’s knowhow related to basic technologies for iPS and ES cells and the contract manufacturing of pharmaceuticals, as well as Sumitomo Pharma’s expertise in the development of advanced manufacturing methods and formulations cultivated through many years of research and multiple projectsfor regenerative medicine and cell therapies. In regard to financial performance, it has consistently achieved profitability and increased profits for four consecutive years since fiscal 2021.

S-RACMO has received multiple business inquiries regarding contract manufacturing projects that utilize the Facility. Accordingly, S-RACMO plans to invest an additional amount of approximately 15 billion yen to upgrade equipment at its existing facilities and build a new fourth manufacturing facility (“the Investment Plan”). For the Investment Plan, the company will also utilize the 2024 Supplementary Budget Subsidies for Investments in Regenerative Medicine, Cell Therapy, and Gene Therapy Manufacturing Facilities ^(*3) program of the Japanese government’s Ministry of Economy, Trade and Industry, and will work to undertake the contract development and manufacturing for new products in a timely manner while also developing expert talent who engage in development, manufacturing, and quality management.

In addition, S-RACMO will also undertake the manufacturing of allogeneic iPS cell-derived dopaminergic neural progenitor cells (“the Product”) being developed for Parkinson’s disease by RACTHERA, another Sumitomo Chemical subsidiary, which is 66.6% owned by the Company and 33.4% by Sumitomo Pharma. As announced today ^(*4), Sumitomo Pharma and RACTHERA have applied for manufacturing and marketing authorization for the Product in Japan, with Sumitomo Pharma as the applicant. As part of the Investment Plan stated above, S-RACMO will also enhance the manufacturing system for the Product, and the Sumitomo Chemical Group will work together to contribute to the treatment of Parkinson’s disease.

Sumitomo Chemical has positioned the regenerative medicine and cell therapy CDMO business led by SRACMO as one of the core businesses of its Advanced Medical Solutions Sector, and the Company is working to cultivate this sector from a medium- to long-term perspective as the Group’s next growth area that will follow agriculture-related and ICT-related businesses, which are positioned as the Group’s current growth drivers.

The Sumitomo Chemical Group will continue to strive together as one to advance the expansion of its regenerative medicine and cell therapy business and to contribute to the development and implementation of innovative new therapeutics

^(*1) Center for Regenerative Medicine and Future Therapy (CRAFT)

^(*2) Contract Development and Manufacturing Organization, a contract business that undertakes the development of manufacturing methods for products and their manufacturing for customers

^(*3) The Subsidies for Investments in Regenerative Medicine, Cell Therapy, and Gene Therapy Manufacturing Facilities is a subsidy program of the Japanese government that aims to secure capacity in Japan to smoothly manufacture regenerative medicine, cell therapy, and gene therapy products by providing support for CDMOs’ efforts to enhance contract manufacturing operations in Japan and develop manufacturing talent. Among the applicants selected to receive expense subsidies, large corporations and equivalent organizations are able to receive subsidies of up to 50% of their approved expenses. (Link to website in Japanese: https://cdmo-hojo.jp/) Reference: “S-RACMO Selected for the 2024 Supplementary Budget Subsidies for Investments in Regenerative Medicine, Cell Therapy, and Gene Therapy Manufacturing Facilities,” S-RAMCO news release in Japanese dated July 16, 2025: https://www.s-racmo.co.jp/cms/wp-content/uploads/2025/07/b6625c638265b846cebabfae1385a1f5.pdf

^(*4) “Announcement of a Subsidiary’s Submission of the Application of Manufacturing and Marketing Authorization for an iPS Cell-Derived Product for Parkinson’s Disease in Japan,” Sumitomo Chemical news release dated August 8, 2025: https://www.sumitomo-chem.co.jp/english/news/files/docs/20250805_2e.pdf