Detailed Description of Portfolio Companies of Fund II

Showa Yakuhin Kako Co.

Features Has two main products: generic drug of Calonal anti-fever and pain-reliever tablets and dental drug of “Ora-Chu Cartridge” anesthetic and maintains a profitable player position in a niche pharmaceutical market. Expects a strong growth of Calonal sales once the large amount dosage and a wider application of acetaminophen drug are permitted by the Japanese government
Investment Pattern Secondary Buyout from a previous sponsor (Joint investment with Tokio Marine Capital and AIG Japan Capital Investment)
Investment Theme Increase the value of the company by supporting the implementation of growth strategies for generic acetaminophen drugs based on government permission of large amount dosage (for cancer pains) and wider application (for arthritis) in terms of project management support and operation-related advice.
Date of Exit June 2012
Exit Pattern Trade Sale of the entire holdings to an SPC owned by an investment fund for which Unison Capital Inc. acts as advisor and partially funded by GC Corporation through preferred share.
Exit Story After the investment, Showa Yakuhin Kako achieved significant sales growth through expanding into the prescription market for acute pains with government approval for increased dosage while it realized leaner operations by reduced cost of materials and improved efficiency of operations. The corporate governance was enhanced in the areas of quality control, manufacturing process control and compliance. As a result, Showa Yakuhin Kako has solidified its position as highly profitable company. After the exit, Showa Yakuhin Kako plans to increase its enterprise value by the sales growth of Calonal prescribed for arthritis and cancer pains and the new market development for its dental products in collaboration with GC Corporation.