February 1, 2018

In a meeting of the Board of Directors held today, the Company resolved to reorganize the CRO business and integrate its wholly-owned subsidiaries CMIC Co., Ltd. (hereinafter referred to as “CMIC”) and CMIC-PMS Co., Ltd. (hereinafter referred to as “CMIC-PMS”) on October 1, 2018.

1. Purpose and Overview of the Integration

Major changes are happening recently with respect to handling of medical information such as utilization promotion of Medical Database (hereinafter referred to as “Medical DB”), which may impact the way clinical studies and clinical researches should be conducted. “Next Generation Healthcare Foundation Law” established last year and “Good Post-marketing Study Practice (GPSP)” to be revised in April are considered to be specific examples of the trend.

CMIC Group promptly grasped the market needs and launched the “Database Strategy Office” last December that is a dedicated department to promote the use of optimal Medical DB. We have already experienced several projects that utilize receipt/health insurance claims data (medical, pharmacy). By integrating CMIC and CMIC-PMS operations, we are able to further enhance PMS and clinical research operations and provide end-to-end coverage for clinical studies, clinical researches, and PMS. Through this integration, data analysis and technology know-how of both companies will be shared and high quality services will continuously be provided by getting ahead of changes surrounding drug development and mobilizing group-wide resources.

An absorption-type merger with CMIC Co., Ltd. as the surviving company is currently planned for this scheme, but it will be announced promptly upon determination.

2. Overview of the Operating Companies

(1) Trade name CMIC Co., Ltd. CMIC-PMS Co., Ltd.
(2) Location 1-1, Shibaura 1-chome, Minato-ku, Tokyo 1-1, Shibaura 1-chome, Minato-ku, Tokyo
(3) Name and title of representative Toru Fujieda
President, CMIC Co., Ltd.
Seiichiro Mochizuki, Ph.D.
President, CMIC-PMS Co., Ltd.
(4) Main businesses CRO Business
・Clinical study (Monitoring, Data Management, Other clinical trials support services, Statistical analysis)
・Clinical research support for academia
・eClinical Trials related services
・Regulatory consulting, Medical Writing
CRO Business
・Post-marketing surveillance (Monitoring, Data Management, Other Post-marketing surveillance support services, Statistical analysis), Management of Safety Information
・Clinical Research Support
(5) Capital 100 million yen 100 million yen
(6) Date established January 4 2012 February 28 2013
(7) Accounting term September 30 September 30
(8) Number of employees (As of October 2017) 2,408 266
(9) Shareholders and holding ratios Wholly-owned subsidiary Wholly-owned subsidiary

3. Future outlook

Because the merger is between consolidated subsidiaries, there is expected to be little impact on consolidated performance this fiscal year.