Chugai Pharmaceutical Co., Ltd. (Headquarters: Tokyo, Japan, hereafter Chugai) announced that it has entered into settlement agreement with Alexion Pharmaceuticals, Inc. (Headquarters: Massachusetts, USA, hereafter Alexion) today relating to patent litigations filed by Chugai against Alexion's anti-complement antibody product ULTOMIRIS^® (ravulizumab). In accordance with this settlement agreement, Chugai together with Alexion will take steps to withdraw the following patent infringement proceedings:

<Patent Infringement Lawsuits to be withdrawn>

1. Lawsuit filed at the United States District Court for the District of Delaware
   Dates of Complaint: November 15, 2018, and November 13, 2019 (additional) (U.S. Eastern Standard Time)
   Defendant: Alexion Pharmaceuticals, Inc.
   Patents in suit: U.S. Patent No. 9,890,377 and No. 10,472,623

2. Lawsuit filed at the Tokyo District Court
   Date of Complaint: December 5, 2018 (Japan Standard Time)
   Defendant: Alexion Pharma Godo Kaisha (Japan Regional Headquarters)
   Patents in suit: Japanese Patent No. 4954326 and No. 641743

As a result of the settlement reached between the two companies, Chugai expects to receive a lump-sum payment of $775 million from Alexion. Other than the lump-sum payment, no other payment and no ongoing royalties will be made or received between the two companies under this settlement agreement.

The impact of this matter on the consolidated financial results for the fiscal year ending December 2022 is currently under review. We will promptly disclose any matters that should be disclosed in the future.