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HOME >> Investor Relations >> Top Message >> Message Archive (June 25, 2014)


To Our Investors - June 25, 2014 -

President & CEO Yosuke Ozawa at General Shareholders' MeetingIt was a pleasure to have been able to exchange views from diverse perspectives together with our shareholders at the General Shareholders' Meeting and Business Briefings held on June 24. I would also like to extend our appreciation to the shareholders who attended from afar. Thank you all very much.

The Purpose of Regulatory Reform and The Role of J-TEC

The Council for Regulatory Reform submitted to Prime Minister Abe a "Second Report Regarding Regulatory Reform" dated on June 13. The report consists of 89 pages, and the number of deregulation measures adds up to a surprising total of 235 items. It can be seen in this report that very aggressive reform is being sought for in the fields of agriculture, medical/nursing care and employment, which are collectively referred to as hard-rock regulation. It has been clearly noted that the 235 items for deregulation will be advanced and Japan's private sector-led economic growth will be achieved by the term of office on March 31, 2016 of the Council for Regulatory Reform.

J-TEC's officers and employees, including myself, have participated in the formation of opinion in this report. Through various meetings, we voiced our opinions on the nature of pharmaceutical regulations focusing on regulatory reform in the field of regenerative medicine, the nature of medical care not covered by insurance in the universal health insurance system, the honest thoughts of venture companies and more. All of the members of the Council for Regulatory Reform and Office for the Promotion of Regulatory Reform have produced this report as a result of repeated discussions with relevant ministries and agencies time and again.

The underlying message of the report is that the regulatory reform will "lead to a growth strategy" and will "lead to the expansion of public choice." Of course, we believe the industrialization of regenerative medicine promoted by J-TEC meets the objectives of these two messages. J-TEC's JACE and JACC are, indeed, new medical choices. Furthermore, I was reminded that, in order for J-TEC's products and technology to take root as a treatment option, it is necessary not only to develop, manufacture and sell regenerative medicine products, but also to win the trust from the actual site of medical care and realize the formation of an appropriate public opinion.

J-TEC Seen From Abroad

The other day, I visited Europe and exchanged information with people of the same trade. All companies were struggling to develop and commercialize regenerative medicine products and showed an interest in our business development. The main points of discussion are described below:

[1] Prospects for Japan's early approval system
The fact that Japan's Pharmaceutical Affairs Law has been revised and an early approval system will be implemented has been a hot topic in Europe, too. European companies may also explore business opportunities in Japan. As such, it can be expected that Japan's regenerative medicine industry will be invigorated.

[2] Results of the autologous cultured epidermis JACE
Sales of the autologous cultured epidermis JACE for the previous fiscal year exceeded 800 million yen. Treatment of severe burns is usually complex and spans over a long period of time, and it is also required to be life-saving, so it is globally considered to be a difficult area; despite this, JACE has reportedly become the world's best-selling autologous cultured epidermis.

[3] Business development of the autologous cultured cartilage JACC
JACC is an autologous cultured cartilage manufactured by the three-dimensional culture method invented by Professor Ochi of the Hiroshima University. There is no commercial record of cartilage cultured three-dimensionally in the world, and the sales performance and clinical record of JACC in Japan is attracting attention from all over the world.


In addition to the points described above, information about J-TEC, such as the number of officers and employees exceeding 200 people as well as being in close cooperation with our largest shareholder Fujifilm, seems to have left a fresh impression on the European companies. At J-TEC, we will continue to engage in management while occasionally confirming our company's position in the world.

June 25, 2014
Yosuke Ozawa
President & CEO
Japan Tissue Engineering Co., Ltd.