Notice Regarding Capital Alliance and Launch of New Businesses Between Target Healthcare Inc. and Nihon Yakushi Inc.

Target Healthcare Inc. (Headquarters: Kobe City, CEO: Tomoo Ozawa, hereinafter 'Target Healthcare') and Nihon Yakushi Inc. (Headquarters: Kobe City, CEO: Naoto Doi, hereinafter 'Nihon Yakushi') are pleased to announce the conclusion of a capital alliance agreement.

By collaborating, the two companies—sharing Kobe City as their business hub—aim to accelerate the commercialization of the 'Acquired Immunity Analysis Business' and 'Application to Veterinary Medicine' based on memory B-cell-derived antibody production technology, striving to realize innovative healthcare and drug discovery solutions originating from Japan.

Background and Purpose of the Capital Alliance Since its establishment in August 2020, Target Healthcare has developed media and support businesses for veterinary hospitals (veterinary DX, cat economy-related businesses), formed, operated, and invested in M&A funds for human and veterinary hospitals, and deployed consulting and medical product development businesses. It possesses a broad network and business development capabilities supporting the management foundations of medical institutions.

Meanwhile, Nihon Yakushi was established on March 27, 2025, based on human memory B-cell-derived antibody production technology. It develops businesses that analyze the structures of memory B-cell-derived human antibodies using AI to provide basic drug discovery data to pharmaceutical companies, as well as searching for new drug targets from its antibody portfolio.

Through this capital alliance, the companies will launch new businesses combining Target Healthcare's medical institution network and business development capabilities with Nihon Yakushi's antibody production and data analysis platforms.

New Market Entry 1: Acquired Immunity Analysis Business The core business tackled through this alliance is the 'Acquired Immunity Analysis Business', which visualizes and reports human acquired antibody information. Using Nihon Yakushi's proprietary technology, it comprehensively analyzes and digitizes individual immune memory (antibody production capabilities against past antigens) from a small blood sample. The main rollout areas are: - Wealthy/Wellness Market: Personal immune memory reporting services via major department stores and private banks. - Medical/Research Institutions: Providing exploratory data on disease-related antigens/antibodies and drug target candidates. - Providing infectious disease risk info for overseas business travelers, expats, and tourists.

New Market Entry 2: Expansion into Veterinary Medicine Leveraging 'zoonosis antibody data' currently being researched for human medicine at Nihon Yakushi, the partnership will advance into veterinary drug/vaccine development.

Changes in Company Profile Pre/Post-Alliance Nihon Yakushi acquires 7.8% of Target Healthcare's shares, and Getti Medico Inc., Target Healthcare's parent company, will hold 3.5% of Nihon Yakushi's shares. The changes in capital and issued shares for both companies following this alliance are as follows:

[Target Healthcare Inc.] Item | Pre-Alliance | Post-Alliance