■Progress and growth strategy of Medinet ＜2370＞'s business activities

(1) Manufacture of specific cell-processed products

Increase the number of cell types and items of specific cell processed products that are manufactured and outsourced by pharmaceutical companies, universities, medical institutions, research institutes, etc. working on regenerative and cellular medicine. In particular, we will promote the expansion of contract processing menus using new cell types other than immune cells. Going forward, we aim to expand business performance while contributing to the latest “personalized medicine for cancer.”

Contract manufacturing of “NKT cell-activated dendritic cells (cancer region)” began in 2023/2. Thus, the range of immune cell therapy has been expanded, and cancer patients can select optimal immunotherapy.

Regarding “adipose-derived mesenchymal stem cells (ASC),” it was announced at the 19th Japan Society for Immunotherapy (2022/5) that in-house technology was established. It has been clinically applied to various diseases, and there are high expectations for mesenchymal stem cell therapy. The number of plans to provide ASC is 231 (2023/12 company survey), and 281 medical institutions providing regenerative medicine using mesenchymal stem cells have registered. Currently, inquiries about manufacturing outsourcing from medical institutions to the company are increasing, and the company is first setting the target disease as “liver disease,” and is proceeding with preparations to begin processing contract from medical institutions (treatment facilities) in 2024/10.

The company concluded a basic agreement in 2022/10 to conduct joint research aimed at “practical application of advanced osteogenic treatment methods in the dental treatment field” by utilizing the “direct conversion method” owned by Cellaxia Co., Ltd. The “direct conversion method” is a technique for stabilizing gums when teeth are put back in during dental implant surgery. By collecting and regenerating cells from the gums and implanting them together with implants, they can be firmly fixed. Advantages include speeding up implant surgery and implant stability. However, it is said that it will still take some time for this osteogenic treatment method to be put into practical use.

(2) Expanding and strengthening the CDMO business

The company has cleared Janssen Pharma's manufacturing contract standards for clinical trial products so far, and is aiming to strengthen the CDMO business and expand sales by utilizing the results and experience it has been contracted to manufacture. We are strengthening our approach to domestic and international pharmaceutical companies and biotechnology ventures.

(3) Promotion of value chain business

In addition to continuing to be entrusted with facility operation and management work centered on academia (universities, research institutes), we will work on services that meet the various needs of academia and pharmaceutical companies that are planning to enter the regeneration/cell medicine field anew, leading to enhanced sales. Above all, “facility operation management” has secured stable sales by renewing contracts with customers, and sales of “regenerative medicine-related services” from fixed customers have also been steadily moving.

From the 2023/9 fiscal year, resources (cell manufacturing processes and human resources) for regenerative medicine-related services in the value chain business have been shifted to specific cell processed product manufacturing and CDMO businesses, which are the two pillars of the cell processing industry, and efficient resource allocation has been carried out.

(4) Strengthening alliance activities with domestic and foreign companies

The medical institutions affiliated with Taiwan MBC, with which the company has signed a license agreement for gamma-delta-T (gamma-delta T) cell culture processing technology, have expanded to 8 facilities. The business is progressing steadily, including searching and negotiating new partner medical institutions. Once cancer immune cell treatment begins, it is expected that the company will be able to earn royalty income according to treatment results.

In addition, we will take in medical inbound demand, mainly in Southeast Asia, starting with China and South Korea, where there is a high need for cell processing technology, etc., and promote alliances and actively license cell culture processing technology so that regeneration/cell medicine can be soundly provided to local medical institutions. Currently, multiple alliance projects are underway, and the company says they will announce them as soon as negotiations are settled. Furthermore, there are a large number of patients waiting for treatment in Japan, and the company plans to build a foothold for inbound medical tourism by constructing a system that can be smoothly examined and treated in Japan.

(Written by FISCO Visiting Analyst Keiji Shimizu)