Shionogi set forth our commitment to “Contribute to a healthy and prosperous life” in the revision of our mid-term business plan STS2030. As part of that effort, we are advancing R&D for diseases with a significant impact on Quality of Life (QoL) which remain unresolved and are predicted to have even greater impact in the future due to the aging population, with commensurately high social impact. Obstructive Sleep Apnea (OSA), a serious sleep disorder, is one of these diseases. It is estimated to affect more than 45 million Americans and hundreds of millions more around the world. It has been suggested that OSA may lead to or worsen other chronic diseases such as hypertension, diabetes, cardiovascular disease, and stroke, and also to impair work productivity. Longevity may be significantly reduced if OSA is left untreated. The vast majority of diagnosed patients are prescribed positive air pressure therapy devices such as continuous positive airway pressure, or CPAP, but substantial unmet need remains, and effective, safe, and convenient therapeutic agents are desired. As we share a strong commitment to meet unmet needs in sleep disorders such as OSA, and highly complementary capabilities, we have agreed to establish a joint venture with Apnimed, a clinical-stage pharmaceutical company with an exceptional depth of expertise in sleep disorders. The joint venture, Shionogi-Apnimed Sleep Science, LLC, combines Shionogi’s capabilities in small molecule drug discovery and proven ability to create best-in-class compounds) with Apnimed’s intensive knowledge of OSA and exceptional translational medicine capabilities, including highly experienced clinical-stage drug development team and robust network of sleep medicine clinical sites. The joint venture will seek to create promising solutions for OSA faster than either company could alone. The joint venture is owned equally by Shionogi and Apnimed. Apnimed’s most advanced development programs, AD109 (now in Phase 3 trials) and AD504 (in Phase 2 trials) are not included in the joint venture.