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Thank you for your continued support of Japan Tissue Engineering.

New Management Structure for this Fiscal Year

During the Annual Shareholders’ Meeting held on June 14, 2023, J-TEC’s shareholders approved the new management structure. With the addition of one new outside director, J-TEC has established a structure with two independent outside directors. In accordance with the Corporate Governance Code, we will further strengthen our management structure and strive for greater expansion of our business, while fully considering the need to protect the interests of our minority shareholders.

Approval of JACEMIN

In March of this year, we received approval to manufacture and market our fifth regenerative medical product, JACEMIN, an autologous cultured epidermis maintaining melanocytes. We understand that many patients suffer from vitiligo. Our expectation is that this product will function as a new option to treat patients with stable vitiligo who cannot be cured using conventional treatment methods. JACEMIN involves a surgical technique in which the portions of the patient’s skin suffering from vitiligo are extracted and transplanted. We hope to create an excellent form of medical treatment while working in full cooperation with the doctors in charge.
We have been collaborating with emergency physicians, plastic surgeons, orthopedic surgeons, and ophthalmologists through our work with burn treatments, knee joint treatments, and even corneal treatments, but the success of our new product JACEMIN will depend heavily on our work with dermatologists. We hope that JACEMIN will be carefully nurtured as a new treatment method in the field of dermatology.

Value of CDMO Business (Custom Development & Manufacturing Business)

Most prototypes for regenerative medical products originate from ideas put out by doctors in charge of actual medical treatment. And to develop further regenerative medical products from these technological seeds, we must analyze the product characteristics of the technology, ensure its suitability for mass production, and evaluate the design and storage stability of the packaging. We must also discuss these matters with regulatory authorities and ensure the safety and efficacy of the products through clinical trials. The role of the CDMO is to accept new regenerative medicine technologies from doctors with ideas, and to steadily implement the subsequent productization process. J-TEC has already produced five products that have been approved. We have accumulated a great deal of experience in creating regenerative medical products from medical technology. Our intention is to use this business to fulfill the dreams of the doctors who entrust work to us, and also expand J-TEC’s business in regenerative medicine.
In addition to Gamagori, where our head office is located, we have seen an increase in the number of partners with whom, and locations where, we can practice this business, such as the city of Kashiwa in Chiba Prefecture where our joint base of operations with the National Cancer Center and Mitsui Fudosan is located, as well as the American company Resilience. Through our close partnership with Teijin, we hope to further advance development of regenerative medicine through this business. In addition to boosting the profitability of the business itself, CDMO business boasts even greater forms of value, such as the further dissemination of regenerative medicine.

The Path to Profitability

The goal of our mid-term management plan is to achieve profitability during the fiscal year ending March 2024. Just as the spread of COVID-19 caused significant hardship to the various doctors at medical institutions, we also faced various challenges last year. At the same time, we have been steadily investing in the development of products like JACEMIN, and pursuing possibilities for the development of our business through CDMOs and other means. It is under these circumstances that we will be endeavoring to achieve profitability within this fiscal year, as planned. In addition to steadily providing our existing products, we aim to expand our two cornea-related products, launch our new product JACEMIN at an appropriate time, and further expand the scope of our CDMO business. We hope to achieve results befitting a leading company in a new industry.

The Weight of Expectations

This year, we received a commission from the Ministry of Economy, Trade and Industry. I myself have also been collaborating with a variety of parties, including the Forum for Innovative Regenerative Medicine and the Japanese Society for Regenerative Medicine. People are beginning to expect more and more of us. We have resumed engagements not only with doctors and patients at medical institutions, but also with various parties from companies, academia, and government agencies, with whom we are working diligently. Through these collaborations, we are certain that we will be able to create new business opportunities this fiscal year.

We are also steadily seeing more results from our collaboration with Teijin. These activities are expanding the field of our engagements and broadening our technological exchanges. J-TEC will continue working diligently to realize real results.
We hope to receive your continued support.

June 15, 2023