J-TEC to Become a Consolidated Subsidiary of Fujifilm Holdings
Accelerating development and promoting commercialization of
regenerative medicine products
October 30, 2014
FUJIFILM Holdings Corporation (President: Shigehiro Nakajima; hereinafter Fujifilm Holdings) has decided to exercise, by the end of the calendar year, all of the equity warrants of Japan Tissue Engineering Co., Ltd. (President: Yosuke Ozawa; Hereinafter “J-TEC”) held by FUJIFILM Corporation (hereinafter Fujiflim). Exercising these rights will increase the proportion of outstanding J-TEC shares held by Fujifilm Group to 50.33%(*1) , and J-TEC will therefore become a consolidated subsidiary of Fujifilm Holdings.
In 2010 Fujifilm formed a capital partnership with J-TEC, a company operating a regenerative medicine products(*2) business in Japan, acquiring 41.29% of the company's shares. In March of this year Fujifilm subscribed to the equity warrants issued by J-TEC in order to strengthen the relationship between Fujifilm and J-TEC and to accelerate initiatives for the practical application of regenerative medicine products. Fujifilm has contracted to J-TEC the development of regenerative medicine products making use of recombinant peptides (RCP)(*3) , created by Fujifilm with excellent biocompatibility. Fujifilm is promoting commercialization of these products.
Fujifilm Group currently holds 45.47%(*1) of the outstanding shares in J-TEC, comprised of the Fujifilm described above in addition to a 4.50% share owned by Toyama Chemical Co., Ltd., a subsidiary of Fujifilm Holdings.
The promotion of practical applications for regenerative medicine is one of the key growth strategies advocated by Prime Minister Shinzo Abe (“Abenomics”), and on November 25, 2014, the government will enact the Act on Ensuring Regenerative Medicine Safety and the Act on Pharmaceuticals and Medical Devices (Amendment to the Pharmaceutical Affairs Act). Among the provisions of these laws, the fast-track approval process that supports early commercialization of regenerative medicine products, and the outsourcing of cell culturing from medical institutions to external companies, are designed as a form of deregulation that accelerates the industrialization of regenerative medicine in Japan. It is in this environment that Fujifilm Holdings is transforming J-TEC into a consolidated subsidiary in order to strengthen J-TEC's financial base, accelerate the development of regenerative medicine products, and expand business areas covered by the regenerative medicine.
Tapping into technologies and know-how accumulated in the R&D and manufacturing of photographic films, Fujifilm has been boosting its regenerative medicine business such as the development of RCP compounds with excellent biocompatibility that can be processed into various formulations as the “scaffold”(*4) to aid cell growth and proliferation, required in regenerative medicine. Fujifilm has technologies in the fields of highly function materials, engineering, diagnostic imaging and analysis. The company plans to combine these with J-TEC's multi-faceted technological capacity and know-how in areas covering research, development, production and marketing, thereby contributing to the industrialization of the regenerative medicines.
*1 Calculated on the basis of the total number of outstanding shares in J-TEC on June 30, 2014
*2 Regenerative medicine is a medical technology that involves the use of cultured cells or tissue to regenerate damaged organs and tissue and restore the functionality of affected parts of the human body. The three key factors of regenerative medicine are (1)“cells” that differentiate and proliferate to form human tissue, (2)“cytokine” that induces cell differentiation and proliferation and (3)“scaffold” required for normal cell growth and proliferation.
*3 Human-type collagen, synthesized with microorganisms, using genetic engineering technology
*4 An extracellular material that provides the base for cells to attach to and correctly proliferate (also known as extracellular matrix)
J-TEC is Japan's only bio-venture enterprise that deals with regenerative medical products. It has obtained approval for manufacturing and distribution of Autologous Cultured Epidermis(*5), “JACC”, and Autologous Cultured Cartilage(*6), “JACC”.
- President : Yosuke Ozawa
- Location : 6-209-1 Miyakitadori, Gamagori, Aichi 443-0022, Japan
- Establishment : February 1, 1999
- Capitalization : 7,794 million yen
- Business description : R&D, manufacturing and marketing of regenerative medical products and R&D support products
*5 A regenerative medicine product that involves culturing a patient's own epidermal cells, and forming a sheet to be placed back to the patient for the purpose of regenerating the skin
*6 A regenerative medicine product that involves culturing a patient's own chondrocytes, and turning them into gel to be placed back to the patient for the purpose of regenerating cartilage.
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