Liquidity Risk Associated with Upfront R&D Investment
First written in FY2017. 15 of 37 entries say "Worsened", first in FY2021-Q2. Latest entry: FY2027-H1.
SanBio moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 6 of 12 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「Cash and cash equivalents (hereinafter, "funds") at the end of the current interim consolidated accounting period were ¥12,677 million (¥14,815 million at the end of the previous consolidated fiscal year), a decrease of ¥2,138 million from the previous consolidated fiscal year.」
With business revenue at zero, cash and cash equivalents decreased by ¥2,138 million, and cash flow from operating activities was also an outflow of ¥2,136 million. - 2026-06-15WorsenedEarnings
「This was mainly because cash and deposits decreased by ¥1,085 million.」
With no business revenue, cash and deposits decreased by ¥1,085 million from the end of the previous consolidated fiscal year, indicating continued deterioration in liquidity. - FY2026MitigatedAnnual report
「Cash and cash equivalents (hereinafter, "funds") at the end of the current consolidated fiscal year were ¥14,815 million (¥2,853 million at the end of the previous consolidated fiscal year), an increase of ¥11,962 million from the end of the previous consolidated fiscal year.」
Cash outflows from operating activities continued at ¥3,760 million, but period-end funds increased to ¥14.8 billion through the issuance of new shares and convertible bonds, temporarily strengthening liquidity associated with upfront investment. - FY2026-H1WorsenedAnnual report
「Cash and cash equivalents (hereinafter, "funds") at the end of the current interim consolidated accounting period were ¥2,372 million (¥2,853 million at the end of the previous consolidated fiscal year), a decrease of ¥480 million from the previous consolidated fiscal year.」
Although financing was carried out, cash and cash equivalents decreased by ¥480 million in the absence of business revenue, and cash flow from operating activities was an outflow of ¥2,052 million. - FY2025WorsenedAnnual report
「Cash and cash equivalents (hereinafter, "funds") at the end of the current consolidated fiscal year were ¥2,853 million (¥4,389 million at the end of the previous consolidated fiscal year), a decrease of ¥1,536 million from the end of the previous consolidated fiscal year.」
With no business revenue recorded, cash and cash equivalents decreased by ¥1,536 million to ¥2,853 million at period-end. Cash used in operating activities was also ¥3,603 million, indicating a quantitative deterioration in liquidity risk. - FY2025-H1WorsenedAnnual report
「Cash and cash equivalents (hereinafter, "funds") at the end of the current interim consolidated accounting period were ¥3,014 million (¥4,389 million at the end of the previous consolidated fiscal year), a decrease of ¥1,375 million from the previous consolidated fiscal year.」
With no business revenue recorded, cash and cash equivalents decreased by ¥1,375 million from the end of the previous fiscal year, and liquidity continued to decline in connection with research and development and preparations following regulatory approval. - FY2025-Q1WorsenedAnnual report
「At the end of the first quarter of the current consolidated fiscal year, current assets stood at ¥4,297 million (¥4,937 million at the end of the previous consolidated fiscal year), a decrease of ¥639 million from the end of the previous consolidated fiscal year. This was mainly due to a ¥497 million decrease in cash and deposits.」
With no business revenue recorded, cash and deposits decreased by ¥497 million from the end of the previous fiscal year, and liquidity continued to decline as a result of upfront investment. - FY2024Operating cash outflows narrowed, but cash continued to declineAnnual report
「Cash used in operating activities during the current consolidated fiscal year was ¥4,765 million (an outflow of ¥7,434 million in the previous consolidated fiscal year). Cash and cash equivalents (hereinafter, "funds") at the end of the current consolidated fiscal year were ¥4,389 million (¥6,675 million at the end of the previous consolidated fiscal year), a decrease of ¥2,285 million from the end of the previous consolidated fiscal year.」
Cash outflows from operating activities narrowed from ¥7,434 million to ¥4,765 million, while cash and cash equivalents decreased by ¥2,285 million, with liquidity continuing to decline as a result of upfront investment. - FY2024-Q3WorsenedAnnual report
「At the end of the third quarter of the current consolidated fiscal year, current assets stood at ¥4,190 million (¥6,967 million at the end of the previous consolidated fiscal year), a decrease of ¥2,777 million from the end of the previous consolidated fiscal year. This was mainly due to a ¥2,926 million decrease in cash and deposits.」
With no business revenue recorded, cash and deposits decreased by ¥2,926 million from the end of the previous fiscal year to ¥3,806 million at period-end. Liquidity risk associated with research and development and preparations for regulatory approval has deteriorated on a quantitative basis. - FY2024-Q2WorsenedAnnual report
「Cash and cash equivalents (hereinafter, “funds”) at the end of the second quarter were ¥4,562 million (¥6,675 million at the end of the previous fiscal year), a decrease of ¥2,112 million from the end of the previous fiscal year.」
In the absence of business revenue, cash and cash equivalents fell by ¥2,112 million from the end of the previous fiscal year. Cash used in operating activities decreased from the same period of the previous fiscal year, but liquidity during the period declined. - FY2024-Q1WorsenedAnnual report
「This was mainly due to a decrease of ¥1,050 million in cash and deposits.」
With no business revenue recognized, cash and deposits fell by ¥1,050 million from the end of the previous fiscal year. The undrawn amount under the lending commitment agreement remained ¥3.5 billion, but liquidity during the period declined. - FY2023Increase in cash, deterioration in operating cash flow, reduction in commitment facilityAnnual report
「Funds used in operating activities during the fiscal year amounted to ¥7,434 million (an outflow of ¥6,546 million in the previous fiscal year).」
While cash used in operating activities increased from ¥6,546 million to ¥7,434 million, cash at the end of the period increased to ¥6,675 million. The total lending commitment decreased from ¥7.6 billion to ¥3.5 billion, and outstanding borrowings fell to zero. - FY2023-Q3Increase in cash, reduction in commitment facility, no outstanding borrowingsAnnual report
「Total lending commitment ¥7,600,000 thousand ¥3,500,000 thousand Outstanding borrowings 2,300,000 – Undrawn amount 5,300,000 3,500,000」
Cash and deposits increased by ¥848 million and outstanding borrowings fell to zero, while the total lending commitment decreased from ¥7.6 billion to ¥3.5 billion, leaving an undrawn amount of ¥3.5 billion. - FY2023-Q2MitigatedAnnual report
「Cash and cash equivalents (hereinafter, “funds”) at the end of the second quarter were ¥8,335 million (¥4,557 million at the end of the previous fiscal year), an increase of ¥3,778 million from the end of the previous fiscal year.」
Cash and cash equivalents increased by ¥3,778 million through funding raised from the exercise of stock acquisition rights and other measures. The lending commitment totaled ¥5 billion, with no outstanding borrowings and an undrawn amount of ¥5 billion, indicating available funding capacity. Meanwhile, cash used in operating activities was ¥3,977 million, and front-loaded research and development investment continued. - FY2023-Q1Increase in cash and borrowings, decrease in undrawn amountAnnual report
「Total lending commitment ¥7,600,000 thousand ¥7,600,000 thousand Outstanding borrowings 2,300,000 3,700,000 Undrawn amount 5,300,000 3,900,000」
While cash and deposits increased, outstanding borrowings under the lending commitment increased from ¥2.3 billion to ¥3.7 billion, and the undrawn amount decreased from ¥5.3 billion to ¥3.9 billion. - FY2022WorsenedAnnual report
「Funds used in operating activities during the fiscal year amounted to ¥6,546 million (an outflow of ¥5,215 million in the previous fiscal year).」
In the absence of business revenue, the outflow from operating activities increased from ¥5,215 million to ¥6,546 million, and cash at the end of the period fell to ¥4,557 million. An undrawn amount of ¥5.3 billion remained available under the lending commitment. - FY2022-Q3WorsenedAnnual report
「At the end of the third quarter of the current consolidated fiscal year, current assets stood at ¥8,118 million (¥13,131 million at the end of the previous consolidated fiscal year), a decrease of ¥5,013 million from the end of the previous consolidated fiscal year. This was mainly due to a ¥5,110 million decrease in cash and deposits.」
With no business revenue recognized, cash and deposits fell by ¥5,110 million from the end of the previous fiscal year. Outstanding borrowings under the lending commitment agreement increased from ¥2.8 billion to ¥3.25 billion, while the undrawn amount decreased from ¥4.8 billion to ¥4.35 billion. Although a new ¥1 billion commitment line agreement was entered into after the filing date, liquidity as of the quarter-end had worsened on a quantitative basis. - FY2022-Q2WorsenedAnnual report
「Cash and cash equivalents (hereinafter, “funds”) at the end of the second quarter were ¥8,794 million (¥12,480 million at the end of the previous fiscal year), a decrease of ¥3,685 million from the end of the previous fiscal year.」
In the absence of business revenue, cash and cash equivalents fell by ¥3,685 million from the end of the previous fiscal year, while cash flow from operating activities resulted in an outflow of ¥3,475 million. The liquidity risk associated with front-loaded research and development investment has worsened on a quantitative basis. - FY2022-Q1WorsenedAnnual report
「Current assets at the end of the first quarter were ¥11,333 million (¥13,131 million at the end of the previous fiscal year), a decrease of ¥1,798 million from the end of the previous fiscal year. This was mainly due to a decrease of ¥1,798 million in cash and deposits.」
With no business revenue recognized, cash and deposits fell by ¥1,798 million from the end of the previous fiscal year. The undrawn amount under the lending commitment agreement remained ¥4.8 billion, but the decline in liquidity associated with research and development and preparations for the regulatory filing is reflected in the figures. - FY2021RestatedAnnual report
「During the fiscal year, manufacturing-related costs for the planned regulatory filing for the chronic-phase traumatic brain injury program for SB623 accounted for the majority of expenses. Research and development expenses of ¥4,071 million were recorded, and cash flow from operating activities resulted in an outflow of ¥5,215 million.」
Negative cash flow from operating activities and front-loaded research and development investment continued. Meanwhile, ¥4,318 million was obtained through the sale of investment securities, bringing cash at the end of the period to ¥12,480 million. - FY2021-Q3WorsenedAnnual report
「This was mainly due to a decrease of ¥4,248 million in cash and deposits.」
With no business revenue recognized, cash and deposits fell by ¥4,248 million from the end of the previous fiscal year, and the liquidity risk associated with front-loaded research and development investment has worsened on a quantitative basis. - FY2021-Q2WorsenedAnnual report
「Cash and cash equivalents (hereinafter, “funds”) at the end of the second quarter were ¥10,907 million (¥13,646 million at the end of the previous fiscal year), a decrease of ¥2,738 million from the end of the previous fiscal year.」
In the absence of business revenue, cash and cash equivalents fell by ¥2,738 million from the end of the previous fiscal year, while cash flow from operating activities resulted in an outflow of ¥2.5 billion. The liquidity risk associated with front-loaded research and development investment has worsened on a quantitative basis. - FY2021-Q1RestatedAnnual report
「Total lending commitment: ¥8,100,000 thousand; outstanding borrowings: 2,800,000; undrawn amount: 5,300,000」
The company’s lending commitment agreement supporting front-loaded research and development investment has been reconfirmed as providing total funding of ¥8.1 billion and ¥5.3 billion of undrawn capacity. - FY2020RestatedAnnual report
「To offset the negative cash flow from operating activities and to continue research and development activities, the company issued new shares through an international offering in May 2019 and raised ¥7,097 million during the fiscal year. As a result, cash flow from financing activities was an inflow of ¥7,022 million.」
While cash flow from operating activities resulted in an outflow of ¥5,717 million, the policy and track record of securing funds through share issuances and other measures have been reconfirmed. - FY2020-Q3MitigatedAnnual report
「Cash and deposits at the end of the third quarter were ¥15,544 million (¥12,453 million at the end of the previous fiscal year), an increase of ¥3,091 million from the end of the previous fiscal year.」
Cash and deposits increased by ¥3,091 million from the end of the previous fiscal year, with liquidity for front-loaded research and development investment continuing to be secured. - FY2020-Q2MitigatedAnnual report
「Cash and cash equivalents (hereinafter, “funds”) at the end of the second quarter were ¥16,732 million (¥12,453 million at the end of the previous fiscal year), an increase of ¥4,279 million from the end of the previous fiscal year.」
Cash and cash equivalents increased by ¥4,279 million as a result of the issuance of new shares through an international offering and other measures, advancing the securing of liquidity for front-loaded research and development investment. - FY2020-Q1MitigatedAnnual report
「In May 2019, the company issued new shares through an international offering and raised ¥7,097 million.」
The company raised ¥7,097 million through the issuance of new shares in an international offering, securing funds for front-loaded research and development investment and the establishment of mass-production and stable-supply systems. - FY2019MitigatedAnnual report
「During the fiscal year, the company issued the 13th Series of Stock Acquisition Rights through a third-party allotment, with an exercise-price adjustment clause, in March 2018 and raised ¥10,945 million. In addition, it entered into long-term commitment line agreements with Sumitomo Mitsui Banking Corporation and MUFG Bank, Ltd. for ¥1,000 million and ¥2,000 million, respectively, in November 2018, and with Mizuho Bank for ¥2,000 million in December 2018, securing funds for future growth investments.」
The company has advanced the securing of funding for front-loaded research and development investment through ¥10,945 million raised via stock acquisition rights and bank commitment lines. - FY2019-Q3MitigatedAnnual report
「The company entered into the commitment line agreement below with Sumitomo Mitsui Banking Corporation to fund the establishment of post-launch manufacturing, logistics and sales systems for SB623.」
After the filing, commitment lines totaling ¥5 billion were secured from 3 banks, advancing the establishment of the post-launch structure for SB623 and the securing of liquidity for front-loaded research and development investment. - FY2019-Q2MitigatedAnnual report
「Cash and cash equivalents (hereinafter, “funds”) at the end of the second quarter were ¥13,932 million (¥4,654 million at the end of the previous fiscal year), an increase of ¥9,277 million from the end of the previous fiscal year.」
Cash and cash equivalents increased by ¥9,277 million as a result of funding raised through the exercise of the 13th series of stock acquisition rights and other measures, advancing the securing of liquidity for front-loaded research and development investment. - FY2019-Q1MitigatedAnnual report
「Current assets at the end of the first quarter were ¥7,897 million (¥5,076 million at the end of the previous fiscal year), an increase of ¥2,820 million from the end of the previous fiscal year. This was mainly due to an increase of ¥2,572 million in cash and deposits.」
Cash and deposits increased by ¥2,572 million from the end of the previous fiscal year as a result of funding raised through the partial exercise of the 13th series of stock acquisition rights and other measures, advancing the securing of liquidity for front-loaded research and development investment. - FY2018MitigatedAnnual report
「As of the end of the fiscal year, we had already received $18 million of the $20 million grant, comprising $4.5 million for the execution of the agreement with CIRM relating to the grant, $4.9 million upon achieving 65% patient enrollment, $4.1 million upon achieving 85% enrollment, and $4.5 million upon completion of enrollment of all patients.」
Of the total $20 million CIRM grant, $18 million corresponding to the achievement of development milestones has been received, advancing the securing of funding for front-loaded research and development investment. - FY2018-Q3MitigatedAnnual report
「As of the filing date, we had already received $9.4 million of the $20 million grant, comprising $4.5 million for the execution of the agreement with CIRM relating to the grant and $4.9 million upon achieving 65% patient enrollment. Of this amount, $4.5 million has been recognized as ¥513 million in advances received under current liabilities.」
Of the total $20 million CIRM grant, $9.4 million has already been received, demonstrating that funding for front-loaded research and development investment has been secured. - FY2018-Q2MitigatedAnnual report
「We entered into the commitment line agreement described below with Mizuho Bank, Ltd. to secure contingency funding for the practical implementation of the chronic-phase traumatic brain injury program for the regenerative cell medicine SB623.」
Although cash and cash equivalents and cash flow from operating activities have declined and resulted in cash outflows, the company has secured a commitment line as contingency funding for the SB623 traumatic brain injury program. - FY2017First statedAnnual report
「Until stable revenue sources are secured, the company plans to raise funds and take other measures at appropriate times as necessary to strengthen its financial position. However, if it is unable to secure funds when needed, serious concerns may arise regarding the continuation of its business.」
The company discloses the risk of being unable to secure funds in a timely manner while research and development expenses continue to result in operating losses and negative operating cash flow.