■Performance trends of Medinet ＜2370＞
2. financial status
Looking at the financial situation at the end of the second quarter of the fiscal year ending 2024/9, total assets were 6,100 million yen (466 million yen increase from the end of the previous fiscal year). The main factors were an increase of 504 million yen in cash and deposits, 52 million yen in investment securities, 14 million yen in work-in-progress goods, 13 million yen in accounts receivable, and a decrease of 19 million yen in tangible fixed assets. The total debt was 5.33 million yen (down 57 million yen from the same period). The main factor was a decrease of 57 million yen in current liabilities and other advance payments. Total net assets were 5,567 million yen (up 523 million yen from the same period). The main factors were an increase in capital of 563 million yen and capital surplus of 563 million yen due to the exercise of stock acquisition rights, etc., an increase of 45 million yen in other securities valuation differences, and a decrease in retained earnings of 634 million yen due to the recording of quarterly net losses. As a result, the capital adequacy ratio increased 2.0 points from 89.2% at the end of the previous fiscal year to 91.2%.
3. funding
The company implemented a total of 4 third-party allotment of shares (issuance/exercise of stock acquisition rights) for the fiscal year ending 2020/9 (14th to 17th), and raised 2,942 million yen in capital. For the fiscal year ending 2023/9, following the 18th Stock Acquisition Rights (1,690 million yen raised) in 2022, the 19th Stock Acquisition Rights (Macquarie Bank Limited) were issued in 2023, and 84.14% of the total number issued was exercised as of the end of 2024/3. The amount of funds raised was 2,272 million yen. The use (amount) of the funds is planned to be 1) the company's working capital (600 million yen), 2) development costs (2,250 million yen) for practical application of regenerative medicine products used for chronic heart failure treatment, and 3) expenses related to stock acquisition associated with capital and business alliances (1,503 million yen). Until now, the company has continuously raised funds through third-party allotments, but since 2021/7, capital raising has fallen far below the target amount due to sluggish stock prices. Stock price increases due to early surplus, and establishment of a healthy cycle of stable fund raising are urgent.
4. Topics for the 2nd quarter of the fiscal year ending 2024/9
The company is Medigen Biotechnology Corporation (KIA Biotechnology Co., Ltd.), which is a company listed on the Taipei Stock Exchange. A license agreement for the company's gamma-delta (gamma-delta T) cell culture processing technology using the company's cancer as the target disease was concluded against “MBC”) in 2019/10, and the technology transfer was completed. After approval by the Taiwanese authorities for cancer immune cell treatment using this technology, Shinkong Wu Huoshi Memorial Hospital (Taipei City), which is a medical institution that MBC partners with, applied to the Taiwanese regulatory authorities and was approved in 2023/2. Xiuduan Memorial Hospital (Changhua City) was approved by the authorities in September of the same year, and Hualien Ciji (Hualien City) was approved by the authorities in December. Akihama Shuden Memorial Hospital (Lukang Town) was approved by the authorities in 2023/10, and cancer immune cell treatment using the company's cell culture processing technology began to be received from November of the same year. Chimei Medical Foundation Liuying Chi Mei Hospital (Tainan City) received approval in 2024/4, and Taipei Municipal Wanfang Hospital (Taipei City) received approval in July of the same year, and MBC's partner medical institutions expanded to 8 facilities. Treatment provision will begin as soon as registration work is completed from each partner medical institution to the health bureau of the city or prefecture where it is located.
5. Earnings forecast for the fiscal year ending 2024/9
As for the financial results for the fiscal year ending 2024/9, we anticipate sales of 850 million yen (up 28.5% from the previous fiscal year), operating loss of 1,488 million yen (loss of 1,425 million yen in the previous fiscal year), ordinary loss of 1,475 million yen (loss of 1419 million yen), and net loss of 1,479 million yen (loss of 1437 million yen). In addition to continuing to recover and expand the number of immune cell processing contracts, we aim to further expand sales in the specific cell processed product manufacturing industry by providing contract menus for new cell types using new technology. At the same time, we aim to strengthen the CDMO business, where growth can be expected. In terms of profit and loss, research and development expenses are expected to increase due to progress in research and development projects, etc. in addition to the expansion of cell processing items and contract menus and the advance of environment/system maintenance costs for cell culture processing for that purpose.
(Written by FISCO Visiting Analyst Keiji Shimizu)