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Investment Bridge Announces Investment Opinion: Bridge Report on R-Tech Ueno Issued: Strong First Half Earnings, Full Year FY3/14 Earnings Expected to Grow Strongly

January 24, 2014

TOKYO --(BUSINESS WIRE)-- Investment Bridge , one of Japan’s leading independent IR services companies, has released a “ Bridge Report ” on R-Tech Ueno, Ltd. (JASDAQ:4573) reviewing the results for the first half and estimates for full fiscal year March 2014 . Report Highlights R-Tech Ueno recorded strong sales and operating income growth of 52.5% and 132.7% year-over-year during the first half of FY3/14 on the back of strong sales of its two main products, Rescula® Eye Drops and AMITIZA® Capsules. The company’s estimates call for sales and operating income to rise by 16.6% and 63.8% year-over-year during full FY3/14. The Bridge Report highlights R-Tech Ueno’s efforts to develop the new products that can become “cash cows” and expectations of these products to contribute to earnings from as early as FY3/15. At the same time attention is called to the Company’s strength of its existing products to support the Company’s near term growth. R-Tech Ueno, Ltd. is a drug discovery venture company that specializes in research and development and sales of pharmaceutical products in the fields of ophthalmology and dermatology. The Company’s business is divided into three main segments of new pharmaceutical research and development, pharmaceutical manufacture and sales, and pharmaceutical development support and consigned manufacturing business segments. R-Tech Ueno saw strong sales and operating income growth of 52.5% and 132.7% year-over-year to JPY2,794 and JPY713 million respectively on the back of strong increases in Rescula® Eye Drops and AMITIZA® Capsules of 21.4% and 77.9% year-over-year to JPY798 and JPY1,923 million respectively during the first half of FY3/14. The strong increase in sales allowed a 33.7% year-over-year increase in research and development spending to JPY647 million to be absorbed and contributed to an improvement in operating margin from 16.7% in the previous first half to 25.5% in the current first half. R-Tech Ueno maintained its existing earnings estimates for the full FY3/14 and calls for sales and operating income to rise by 16.6% and 63.8% year-over-year respectively to JPY5.3 and JPY1.2 billion respectively. This strong earnings performance is premised on a 43.2% year-over-year increase in AMITIZA® Capsules sales and a 20.4% year-over-year decline in Rescula® Eye Drops. Profits are expected to grow on the back of the improvement in operating margins resulting from the achievement of higher sales and stable research and development spending of JPY1.278 billion , which is in line with the previous term’s level. The Bridge Report highlights R-Tech Ueno’s medium to long term growth strategy based on the transformation of new product development pipelines into new cash cows and their potential contributions to earnings from as early as FY3/15. In addition to the future earnings growth potential based upon the combination of new and existing products, the Report also calls attention to the strong financial position established through the contribution of existing products. To view the full report, please go to the website at the URL listed below. http://www.bridge-salon.jp/report_bridge/archives/eng/4573/20140124.html About Bridge Report: Bridge Report is produced by Investment Bridge Co., Ltd. and provides accurate and objective information about the earnings, business strategies, and other information of publicly traded Japanese companies. Investment Bridge Co., Ltd. Kaoru Hosaka for information regarding R-Tech Ueno, Ltd. +81-3-5842-5765 (Japanese correspondence only) rtechueno@cyber-ir.co.jp (English and Japanese correspondence) Source: Investment Bridge Co., Ltd.


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