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• We would like to express our sincere gratitude to your continued support.
  At the 24th Ordinary General Meeting of Shareholders held on March 25, 2025, a new management structure was approved. Setsuko Hashimoto, Toshihiro Maeda, and Keiichiro Nakaoka were appointed as directors (excluding directors who are Audit and Supervisory Committee members), and Kenji Oeda, Yukiko Endo, and Tetsuomi Mano were appointed as directors who are Audit and Supervisory Committee members.
  With this strengthened full-time board structure, we are committed to further developing our business.

Sales in our cell cultureware business have significantly increased in overseas markets over the past few years, reaching record-high levels. However, during the current fiscal period, sales in overseas markets declined due to rapid changes in the research environment in the United States and ongoing geopolitical instability in regions such as Europe and the Middle East. As part of our efforts to drive future growth, we focused on manufacturing UpCell® flasks in preparation for their scheduled launch in overseas markets in the latter half of this year. Moving forward, we will continue to strengthen and expand promotional activities for cell cultureware products both domestically and internationally, while placing particular emphasis on ensuring the successful launch of UpCell® flasks, which are in high demand overseas.
In our contract development and manufacturing services, the Tokyo Metropolitan Tama Hokubu Medical Center, operated by the Tokyo Metropolitan Hospital Organization, has initiated regenerative treatment for esophageal stenosis using cell sheets. In support of this initiative, we assisted with the preparation of necessary documentation, including the provision plan to be submitted to the Ministry of Health, Labour and Welfare, thereby facilitating the procedures required to begin private medical practice. From the latter half of this year onward, we expect to record revenue from the manufacture of cell sheets used in regenerative treatments conducted at the Tama Hokubu Medical Center. Additionally, we continue to actively promote our capabilities as a regenerative medicine CDMO to secure new contract opportunities.

Regarding allogeneic chondrocyte sheets, we submitted a clinical trial notification for a Phase 3 trial of allogeneic chondrocyte sheets (CLS2901C) to the PMDA on September 20, 2023. After going through the Institutional Review Board (IRB), we entered into contracts with each clinical trial facility and established the necessary framework to perform surgeries at those locations. In preparation for the commencement of the trial, we held negotiations with Tokai University regarding the milestone payment amounts, and as announced on March 24, 2025, an agreement was reached. Based on this agreement, we are now proceeding with preparations to initiate the trial.

The 4th Cell Sheet Engineering Innovation Forum will be held at Miraikan on November 28, 2025. We hope to make this a forum to discuss applications of "cell sheet engineering" and related technologies to regenerative medicine and new fields, so that more researchers can become aware of this world-first cell sheet engineering that originated in Japan. We look forward to welcoming many participants.

We remain committed to the rapid realization and commercialization of regenerative medicine, and we kindly ask for your continued and unwavering support.