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HOME >> Investor Relations >> Top Message >> Message Archive (June 23, 2010)

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To all of our investors - June 23, 2010 -

Yosuke Ozawa, President and CEO

In this message from the President, I would like to take this opportunity to share J-TEC’s philosophy about two issues which are frequently brought up by shareholders.

Perspectives on providing JACE for humanitarian reasons

In the last fiscal year (12th Financial Term), J-Tec bore the cost for 60% of the total shipments of the autologous cultured epidermis “JACE”, which were non-commercial deliveries to medical facilities where the product was used in the treatment of patients with severe burn injuries. Not only our shareholders, but many of our stakeholders as well, have expressed opinions concerning this practice, and it has been the subject of discussions at our board meetings on more than one occasion.
The provision of our product for humanitarian reasons is in line with the J-TEC company principle which states that we will strive to realize the commercialization of regenerative medicine in Japan. Regenerative medicine has gained momentum as a new treatment option available to physicians, but at the same time, it is also true that the autologous cultured epidermis “JACE” is the only regenerative medical product approved by the country of Japan as a medical device. As the first product of its kind in Japan, we want to ensure that it will help as many patients as possible and, as it has been our thinking that a better understanding of the efficacy and safety of the regenerative medical products will encourage more widespread recognition and use of regenerative medical products, we have provided it on a non-commercial basis in addition to the commercial sale of the product. Through the development of the JACE project under this philosophy, J-TEC has gained far more than simply the sales of the product:

  • the existence of a need for JACE has been clarified
  • JACE has made a major contribution to the survival of burn injury patients
  • deregulation has relaxed some of the guidelines related to insurance reimbursement (with respect to registration standards for medical institutions who use this product and their qualifications in ICU treatment)

Because the medical institution standards were relaxed this fiscal year (13th Financial Term), the percentage of JACE products shipped without charge will be lower. However, there is no change to the reimbursement limit (the upper limit for reimbursement is 20 JACE sheets per patient), so from a humanitarian point of view, we would like to offer to bear the cost of providing product in cases where the need exceeds 20 sheets.
JACE is establishing a firm foothold in medical treatment facilities. J-TEC is carving a new path for medical treatment. Our company will continue to accumulate sales this fiscal year and early on, we will take up the issue of revising the reimbursement limit for insurance.

Reason for holding the General Shareholder’s Meeting in Gamagori

From time to time, our shareholders have asked if the general shareholder’s meeting could be held in a large city, such as Tokyo, Nagoya, or Osaka, but J-TEC has continued to hold this meeting in Gamagori, where the company’s head office is located. The general shareholder’s meeting is the most important decision-making body with respect to the company’s management. Thus, J-TEC has considered where the best place to hold this meeting would be in terms of providing the most benefit to the shareholders.
We feel strongly that it is important for our shareholders to see the area of Gamagori, where our company buildings are, so that shareholders may gain a feel for the characteristics of the area where our business activity is actually taking place. In addition, it is also extremely important that the general shareholder’s meeting, which is the highest decision-making body of our company, be able to proceed smoothly without delays. Because of the meeting location’s physical proximity to the head office, we are able to provide a flexible response to the meeting needs, as the occasion may dictate. This also allows us to reduce expenses and in the interest of quickly reaching our goal of becoming a profitable institution, we believe that this also leads to profits for our shareholders.
It is with these thoughts in mind that we hold our general shareholder’s meeting in Gamagori, where our head office is located, and I hope that our shareholders will grant us their understanding and cooperation with regard to this issue.

I will continue to communicate with everyone through this Top Message and as much as possible, I hope to describe the projects and challenges we are embracing, as well as our thinking and policies on various issues. I hope that you will also continue to expect much from us.

June 23, 2010
Yosuke Ozawa
President & CEO
Japan Tissue Engineering, Co., Ltd.

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