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HOME >> Investor Relations >> Top Message >> Message Archive (October 30, 2013)

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To All of Our Investors - October 30, 2013 -

The first half of fiscal 2013 was a period in which the business of Japan Tissue Engineering Co., Ltd. (J-TEC) greatly progressed and the external environment began to change significantly. Together with our shareholders and investors, I would like to look back at it.

Achievements and Issues in First Half of Year

Below I have outlined the main achievements in our core businesses.

Main Achievements

  • Sales of our autologous cultured epidermis, JACE, went well. Clearly, JACE is increasingly being accepted at burn treatment centers.
  • Sales of our autologous cultured cartilage, JACC, were launched. To conduct JACC transplants, the medical institutions and physicians involved need to undergo training. Accordingly, employees of J-TEC visited medical institutions throughout the country and carefully carried out training.
  • LabCyte EPI-MODEL, a cultured human tissue model for research use, was listed in the guidelines, established by the OECD, for methods of skin irritation testing. We expect this product’s use in place of animal testing to increase in the future.
  • We applied and were selected for multiple commissioned projects and subsidized projects from, among others, the Ministry of Economy, Trade and Industry. Our contributions to these projects will be recorded as non-operating income, and we expect our recurring profit to improve.
  • We received the top prize, the Prime Minister’s Prize, at the 5th Japan Grand Prix for Manufacturing.
  • Sales during the first half of the year exceeded projections, and we revised our sales forecast for the entire year.

At the same time, there are issues, and points requiring self-examination, which we will need to address in the second half of the year and thereafter.

Main Issues

  • The training for using JACC, which we provide to medical institutions and physicians, requires more time and manpower than we anticipated. We will adjust our JACC business operations so that orders for JACC will steadily increase starting from the end of the year, when winter vacation begins.
  • To powerfully promote our business operations, we hired additional employees. Fixed expenses will increase, but we will carry out the business efficiently.
  • Together with the revision of the Pharmaceutical Affairs Act, a system of early approval for regenerative medicine products is expected to be introduced. This system should prove to be epoch-making. It will be necessary for us to determine whether we should promote the development of our pipeline for next-generation products, such as autologous cultured corneal epithelium, by taking the existing approval route or the new early-approval route.

A tailwind has begun to blow in Japan’s regenerative medicine products industry. While riding that tailwind, J-TEC will seek to steer a steady course as we continue to aim for the “industrialization of regenerative medicine.”

The Influence of the Japan Grand Prix for Manufacturing

J-TEC was deeply honored to receive the Prime Minister’s Prize at the Japan Grand Prix for Manufacturing in September. The prize was given in recognition of the autologous cultured cartilage, JACC. I would like to extend my heartfelt thanks to the inventor, Professor Mitsuo Ochi of Hiroshima University, to the Japan Science and Technology Agency (JST), which defrayed some of the development expenses, to the Aichi Prefectural Government and the Chubu Bureau of Economy, Trade and Industry, which supported our efforts, to Mayor Shokichi Inaba of Gamagori City, who nominated us for the prize, and to the many other people who enabled us to receive this honor. From Gamagori City, moreover, we also received the Gamagori Mayor’s Prize, newly established this year.

At Gamagori City Hall
At Gamagori City Hall
Front row, center right: Shokichi Inaba, Mayor, Gamagori City
Front row, far right: Tatsunori Hironaka, Superintendent of Schools, Gamagori City

The seven employees who participated in the presentation ceremony, held at the Prime Minister’s Official Residence, and who received award certificates directly from Prime Minister Abe, reported to me: “That the JACC business has come this far is an achievement of not just us alone. It is only because of the cooperation of numerous colleagues, and because of the JACE business, which blazed the way, that we received the prize.” In the past several years, these were the words that touched me most deeply. I am glad to be president of J-TEC.

October 30, 2013
Yosuke Ozawa
President & CEO
Japan Tissue Engineering Co., Ltd.