Business Structure Centered on Comprehensive Immune Cell Therapy Support Services

「Due to higher costs from upfront investment in establishing systems for new contract cell-processing projects and higher selling expenses, among other factors, the segment loss widened to ¥231 million, compared with a segment loss of ¥154 million in the same period of the previous year.」

「As a result, revenue for the six-month period ended 30 September was ¥399 million, up 14.4% year on year, while the segment loss widened to ¥154 million, compared with a segment loss of ¥133 million in the same period of the previous year.」

「Due to factors including higher utility expenses and costs to establish systems to secure future contract cell-processing projects, the segment loss widened to ¥346 million, compared with a segment loss of ¥232 million in the previous fiscal year.」

「Due to higher selling, general and administrative expenses, the segment loss widened to ¥242 million, compared with a segment loss of ¥177 million in the same period of the previous year.」

「Due to higher selling, general and administrative expenses, the segment loss widened to ¥133 million, compared with a segment loss of ¥105 million in the same period of the previous year.」

「During the three-month period ended 30 June, although the effects of COVID-19 continued, revenue increased 7.1% year on year to ¥184 million due to higher revenue from the specified cell-processed products manufacturing business and the CDMO business. However, because selling, general and administrative expenses increased, the segment loss widened to ¥57 million, compared with a segment loss of ¥47 million in the same period of the previous year.」

「During the fiscal year, revenue from the value-chain business expanded due to increased transactions in the value-chain business, which provides regenerative medicine-related services. However, domestic and inbound patient numbers at client medical institutions remained weak due to the prolonged COVID-19 pandemic, and the recovery in the number of contracted cell culture and processing procedures was limited. As a result, revenue was ¥633 million, down 7.2% year on year. In addition to lower profit accompanying the decline in revenue, higher costs to establish systems for cell culture and processing resulted in a segment loss of ¥232 million, compared with a segment loss of ¥132 million in the previous fiscal year.」

「Meanwhile, inbound patient numbers at client medical institutions remained weak due to the prolonged COVID-19 pandemic, and the recovery in domestic patient numbers was also limited. As a result, cell-processing revenue declined year on year and revenue was ¥469 million, down 8.3%. The segment loss was ¥177 million, compared with a segment loss of ¥88 million in the same period of the previous year, due to factors including lower gross profit resulting from lower revenue and costs to establish systems to address new demand.」

「Revenue was ¥318 million, up 15.7% year on year, and gross profit increased due to higher revenue. However, because selling, general and administrative expenses increased, the segment loss widened to ¥105 million, compared with a segment loss of ¥90 million in the same period of the previous year.」

「Due to factors including increased cell-processing revenue resulting from an increase in the number of cell-processing procedures year on year, revenue was ¥172 million, up 23.5% year on year. Due to factors including an increase in gross profit resulting from higher revenue, the segment loss narrowed to ¥47 million, compared with a segment loss of ¥55 million in the same period of the previous year.」

「Due to factors including a decline in gross profit resulting from lower revenue, the segment recorded a loss of ¥88 million, compared with segment profit of ¥28 million in the same period of the previous year.」

「Due to factors including a decline in gross profit resulting from lower revenue, the segment recorded a loss of ¥90 million, compared with segment profit of ¥79 million in the same period of the previous year.」

「Revenue was ¥139 million, down 52.6% year on year. Due to factors including a decline in gross profit resulting from lower revenue, the segment recorded a loss of ¥55 million, compared with segment profit of ¥68 million in the same period of the previous year.」

「細胞加工業については、細胞加工業の３つのビジネス領域（「特定細胞加工物製造業」・「バリューチェーン事業」・「CDMO事業」）の拡大に向けて積極的な活動を展開しております。」

「As a result of the effects of business structural reforms implemented in the previous fiscal year and other factors, segment profit was ¥79 million, compared with a segment loss of ¥0 million in the same period of the previous year.」

「As a result of the effects of business structural reforms implemented in the previous fiscal year and other factors, revenue was ¥294 million, up 19.9% year on year. As a result of the effects of the same reforms and other factors, segment profit was ¥68 million, compared with a segment loss of ¥9 million in the same period of the previous year.」

「As a result of the consolidation of cell culture and processing facilities and optimization of personnel allocation through structural reforms, earnings improved substantially, with revenue of ¥1,050 million and segment profit of ¥89 million.」

「As a result of substantial improvements in earnings from the consolidation of cell culture and processing facilities and optimization of personnel allocation through structural reforms, revenue was ¥752 million and segment profit was ¥16 million.」

「As a result of substantial improvements in earnings from the consolidation of cell culture and processing facilities and optimization of personnel allocation through structural reforms, revenue was ¥499 million and the segment loss was ¥0 million.」

「As part of its structural reforms, the cell-processing business plans to consolidate its cell culture and processing facilities in Shin-Yokohama and Osaka into the Shinagawa cell-processing facility, which has one of the largest manufacturing capacities in Japan, by March 2019. By carrying out activities ranging from cell processing through the manufacture of regenerative medicine products, it aims to improve the efficiency of its manufacturing system and achieve an early return to profitability. During the nine-month period ended 31 December, however, manufacturing revenue from specified cell-processed products declined, mainly because of the decrease in the number of patients at contracted medical institutions,」

「Due to factors including a decrease in the number of patients at medical institutions that had entered into contract manufacturing agreements for specified cell-processed products, revenue was ¥542 million, down ¥351 million, or 39.3%, year on year.」

「Revenue from the core manufacturing of specified cell-processed products declined due to factors including a decrease in the number of patients at contracted medical institutions. Revenue was ¥294 million, down ¥157 million, or 34.8%, year on year, and the segment loss was ¥135 million, compared with a segment loss of ¥86 million in the same period of the previous year.」

「Since the previous consolidated fiscal year, our group has continued to expand into new business areas, including developing its cell-processing business for companies and other customers in addition to comprehensive immune cell therapy support services,」

「The number of orders in the value-chain business increased, including sales to Ibaraki Children's Hospital and sales from facility operations management work contracted by Juntendo University. However, sales of the comprehensive immune-cell therapy support service declined year on year, among other factors. As a result, net sales for the nine-month consolidated cumulative period under review were ¥1,314 million, down ¥89 million year on year, or 6.3%.」

「While projects in the value-chain business, including contracts to install and operate cell culture processing facilities and contracts for cell-processing technology development, increased substantially, sales of the comprehensive immune-cell therapy service to medical institutions declined slightly year on year. As a result, net sales were ¥893 million, down ¥25 million year on year.」

「Net sales declined 3.0% year on year, primarily because sales from the core cell-processing business were broadly unchanged from the previous year, while sales of cell-therapy equipment and materials recorded in the previous year declined.」

「As sales from contract cell processing had not yet been recognized, revenue from comprehensive immune cell therapy support services provided to medical institutions remained the main source of revenue.」