In November 2023, Yoshitaka Koketsu, the Chairman and CEO of Sumitomo Pharma Group in China received an exclusive interview with Shanghai Securities News of Xinhua News Agency.

The full interview is as follows:

Shanghai Securities News: As a leader of an international pharmaceutical company, you are equipped with a broad horizon on the pharmaceutical industry in and out of China, so what do you think are the current opportunities and challenges faced by the Chinese pharmaceutical market compared to other markets?

Yoshitaka Koketsu: The Chinese market has become the second largest pharmaceutical market in the world. Just from this perspective, it is already an extremely attractive market for us, and its future potential is also considerable.

The goal of "Healthy China 2030" put forward by the Chinese government reflects the importance the government attaches to such key areas as public health and medical care. Such an environment appeals to innovative companies dedicated to providing patients with novel drugs just like ours. Also, we would very much like to provide novel drugs meeting the specific demands of the Chinese market which incubates huge growth potential and continue strengthening our position here.

Undoubtedly, opportunities are accompanied by challenges. In addition to the large local pharmaceutical companies, established pharmaceutical companies from all over the world also lay emphasis on and are actively seeking chances to share in this charming market. So how can Sumitomo Pharma excel in the fierce market competition is the challenge that we are facing now.

Shanghai Securities News: Are there any profound changes that you have observed in the Chinese pharmaceutical market over the years?

Yoshitaka Koketsu: The drug regulatory principles in China have been very explicit. The first principle is that the patients are always the priority. The second is that the attitude toward innovation is open and inclusive. Both of the two principles have been clearly practiced in the formulation and implementation of regulations. The profound change I have witnessed is the continuous system reform the regulatory authorities have performed from these two standpoints. As a global company, and following the guidance of the policies, we are also actively exploring the unmet medical needs of the huge population of Chinese patients, with an aim to bring medicines more in line with the needs of the Chinese patients to this market.

Shanghai Securities News: This year is the 20^th anniversary of Sumitomo Pharma in China. Considering the further, what aspects will Sumitomo Pharma further build up in cooperation in China?

Yoshitaka Koketsu: This year is the 20^th anniversary of the establishment of our company in China. The growth of our company benefits from the strong support given to us by the Chinese government and our partners in the past 20 years.

Looking forward, we have two focuses in our blueprint: First, we will strengthen and upgrade our supply chain function, enabling quick delivery of quality medicines to Chinese patients, and optimizing our operation flow. Secondly, we will speed up the process of introducing new products to the Chinese market, making them sooner available to the Chinese patients.

About Sumitomo Pharma Group in China

We are composed of Sumitomo Pharma (China) Co., Ltd., and Sumitomo Pharma (Suzhou) Co., Ltd.. Since its entry into the Chinese market in the 1990s, Sumitomo Pharma (Suzhou) Co., Ltd. has been making efforts to bring China into one of the dominant pharmaceutical marketing operation bases. By adopting global advanced production technologies in China, Sumitomo Pharma (Suzhou) Co., Ltd. provides patients with high-quality pharmaceutical products and therapeutic solutions in the areas of the central nervous system, infection prevention, cardiovascular diseases, and gastrointestinal tract disorders. A huge number of patients have benefited over the years. Meanwhile, the Company actively participates in a variety of social welfare undertakings and fully supports the comprehensive development of China's healthcare sector. Sumitomo Pharma (Suzhou) Co., Ltd. always adheres to the concept of "Patient First" and continues to deepen ploughing the Chinese market, aiming to become a Global Specialized Player, striving to make more contributions to the long-term development of healthcare industry in China.