Expansion of the Advanced Medical Business, Driven by Support for Molecular Pathology and Companion Diagnostic Development

「The transfer of all shares in 株式会社ジェネティックラボ in January 2022 reduced revenue equivalent to the sales of the diagnostic analysis business previously operated by the company, including contract revenue from COVID-19 PCR testing. Excluding that business, however, revenue grew steadily by 21.2% year on year.」

「During the three-month period ended the first quarter, the transfer of all shares in 株式会社ジェネティックラボ in January 2022 reduced revenue equivalent to the sales of the diagnostic analysis business previously operated by the company, including contract revenue from COVID-19 PCR testing. Excluding that business, however, revenue grew steadily by 54.2% year on year.」

「As a result, revenue increased substantially by ¥787.892 million, or 28.2%, from the previous fiscal year, while operating profit was ¥745.421 million, a substantial improvement from the ¥10.493 million operating loss in the previous fiscal year.」

「As a result, during the nine-month period ended the third quarter, revenue increased substantially by ¥398.768 million, or 21.0%, year on year, while operating profit was ¥411.117 million, a substantial improvement of ¥438.519 million from the previous year, when the company recorded an operating loss of ¥27.401 million.」

「As a result, during the six-month period ended the second quarter, revenue increased by ¥57.913 million, or 5.0%, year on year, while operating profit was ¥3.164 million, an improvement of ¥23.617 million from the previous year, when the company recorded an operating loss of ¥20.452 million.」

「In the drug discovery support business, amid the spread of COVID-19, 株式会社ジェネティックラボ began accepting contract COVID-19 testing, including PCR testing, from Sapporo City and Hokkaido to support the increase in testing volumes.」

「In addition, as the spread of COVID-19 increased, 株式会社ジェネティックラボ established the necessary structure to meet social demand and began accepting contract COVID-19 testing, including PCR testing, in March 2020.」

「During the nine-month period ended the third quarter, both the number of pathology specimens and contract genetic analysis services increased. Revenue rose 1.2% year on year, and operating profit was ¥8.210 million, down 21.9% year on year.」

「During the six-month period ended the second quarter, despite an increase in the number of pathology specimens, revenue declined 4.1% year on year due to sluggish growth in contract genetic analysis services and other businesses, and operating results were also a loss.」

「In the diagnostic analysis business, the company worked to further improve quality and operating efficiency and expand services leveraging its genetic analysis technology and extensive pathology diagnostic expertise, including by establishing a testing service structure using a companion diagnostic system.」

「A research project addressing the development of an early lung cancer genomic testing and research-linked business applying NGS diagnostic technology was selected for a grant. In collaboration with university hospitals, the project involved developing an integrated genomic medicine and research framework based on genomic profiling of patients with resectable lung cancer and postoperative recurrence monitoring.」

「In the diagnostic analysis business, revenue increased 8.5% year on year due to an increase in pathology diagnostic specimens and growth in contract genetic analysis services, particularly DTC services. Operating results also improved substantially, with the business recording operating income of ¥10.512 million, an increase of ¥9.678 million from the same period of the previous year.」

「During the first six months of the fiscal year, revenue increased 3.6% year on year due to an increase in pathology diagnostic specimens and growth in contract genetic analysis services, particularly DTC services. However, R&D expenses for grant-funded projects were incurred ahead of the related revenue, resulting in an operating loss of ¥6.228 million, compared with an operating loss of ¥545 thousand in the same period of the previous year.」

「During the first three months of the fiscal year, revenue increased 6.1% year on year due to an increase in pathology diagnostic specimens and growth in contract genetic analysis services, particularly DTC services. Operating results also improved by ¥828 thousand from an operating loss of ¥2.652 million in the same period of the previous year, narrowing the loss to ¥1.823 million.」

「The Advanced Healthcare Business launched contract cancer clinical sequencing analysis services using next-generation sequencers for lung, breast, ovarian, and colorectal cancers, malignant melanoma, and other conditions. It also entered into a sales agency agreement with 株式会社日立ハイテクノロジーズ in August of the previous year and worked to strengthen sales of contract cancer clinical sequencing analysis services using next-generation sequencers.」

「The Advanced Healthcare Business launched contract cancer clinical sequencing analysis services using next-generation sequencers for lung, breast, ovarian, and colorectal cancers, malignant melanoma, and other conditions. In August of this year, it also entered into a sales agency agreement with ㈱日立ハイテクノロジーズ and worked to strengthen sales of contract cancer clinical sequencing analysis services using next-generation sequencers. The Advanced Healthcare Division will continue contributing to personalized medicine and expanding performance by expanding its clinical sequencing business.」

「The Advanced Healthcare Business launched contract cancer clinical sequencing analysis services using next-generation sequencers for lung, breast, ovarian, and colorectal cancers, malignant melanoma, and other conditions.」

「Going forward, the company will work to expand orders for analytical services that will make a significant contribution to companion diagnostic development using digital PCR, while also promoting its clinical sequencing business, which is expected to gain traction in the practice of personalized medicine, in an effort to restore performance.」

「During the first nine months of the fiscal year, revenue declined year on year, while the operating loss worsened by ¥10.358 million from the same period of the previous year. Going forward, the company will focus on securing orders for drug-discovery support services for personalized medicine, which it has identified as a growth area, to restore performance.」

「During the first six months of the fiscal year, revenue was ¥123.482 million, down 10.3% year on year. Operating results were an operating loss of ¥43.723 million, compared with an operating loss of ¥25.145 million in the same period of the previous year, due to capital investment and higher rent associated with expanding floor space to support future business growth. Going forward, the company will focus on securing orders for drug-discovery support services for personalized medicine, which it has identified as a growth area, to restore performance.」

「In the Advanced Healthcare Business, the company entered into a collaboration agreement with ㈱理研ジェネシス on 26 April of this year concerning liquid biopsy genetic analysis. It can now provide contract analysis services for genetic mutations using the company's LBx® Probe. This makes it possible to conduct cfDNA analysis in clinical trials and clinical research in addition to its existing contract analysis services, broadening the range of proposals it can make to pharmaceutical companies and others with a view to companion diagnostics.」

「The company recognizes the need to expand services such as contract molecular pathology analysis in collaboration with other businesses in its group and university research institutions. It will also position support for companion diagnostic development as a growth driver and pursue business expansion.」