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HOME >> Investor Relations >> Top Message >> Message Archive (April 1, 2013)


To All of Our Investors - April 1, 2013 -

I would like to tell all our shareholders and investors about recent conditions at Japan Tissue Engineering (J-TEC) and our action plan for fiscal year 2013.

Insurance-reimbursed price of 2.08 million yen

Yosuke Ozawa

Congratulations to all our shareholders. As of April 1, 2013, our autologous cultured cartilage, JACC, is now covered by insurance. It has been 13 years since the development of JACC began, and at last stand at the starting block. We would like to share our joy over this development with all our shareholders. JACC is the second product using human cellular tissue to be approved in Japan, and it has been approved for the purpose of alleviating the clinical symptoms of traumatic cartilage deficiency or osteochondritis dissecans in knee joints. Unfortunately, knee osteoarthritis is excluded from the indications, but we are delighted that JACC can now be used to treat many of the patients who suffer from knee-joint disorders.

The road to winning an insurance-reimbursed price of 2.08 million yen (including tax) has not been a smooth one. In my estimation, the amount of 2.08 million yen is "appropriate." Amid the present tight financial conditions in our country’s medical insurance system, not only the Ministry of Health, Labour and Welfare (MHLW) but also a variety of stakeholders supported J-TEC and regenerative medicine at the same time that they engaged in a constructive debate. Although the environment surrounding regenerative medicine is becoming more favorable, the pricing process for products that are not sold overseas is difficult and has long been fraught with tension. There is one thing about which I became certain over the several months of insurance discussions with MHLW: Our track record with autologous cultured epidermis (JACE) and the efforts we have made since the JACE business was launched in January 2009 paved the way for the launch of JACC. In continued effort there is power.

Action Plan for Fiscal Year 2013

In fiscal 2013 we shall strive for a steady increase in sales of JACE, JACC and LabCyte. Particularly, JACC is attracting attention, not only for sales performance but also for clinical results. Through alliances with the doctors and medical institutions that perform the related procedures, we are delivering safe, high-quality JACC. In the course of our activities in fiscal 2013, I would like to see J-TEC secure an appropriate profit as the maker, and of course it will be important to make progress toward turning a profit in the medium term. I imagine that many concerns await us, but for prospects are good for an enjoyable year.

Some big events that are planned for fiscal 2013 are the revision of the Pharmaceutical Affairs Law and the enactment of legislation by Diet members on the promotion of regenerative medicine, as well as other new laws. As an extrapolation of this series of regulatory reforms, the speedy launch of regenerative medicine products and the promotion of the outsourcing of cell-processing work are sure to emerge as major topics of discussion. In both these debates our company's experience will serve as a reference. Our company should be proactively involved in the reform of the system, not only for the sake of our own development but also the development of the regenerative medicine industry in Japan. Moreover, although we are a small company, we shall do our part to contribute to the growth of the Japanese economy.

April 1, 2013
Yosuke Ozawa
President & CEO
Japan Tissue Engineering Co., Ltd.