Financial Results for the Fiscal Year ended March 31, 2020
[Japanese GAAP] (non-consolidated)
May 15, 2020
BrightPath Biotherapeutics Co., Ltd.
Listed Market Mothers, TSE
TSE Code4594
URL
https://www.brightpathbio.com/english/index.html
Representative (Title)
President & CEO(Name) Kenichi Nagai
Contact(Title)Director(Name) Seiji Nagano(TEL) +81-3-5840-7697
Scheduled date of annual meeting of stockholders: June 26, 2020
Scheduled date of dividend payment commencement:－
Scheduled date of submission of securities report: June 29, 2020
Supplementary materials for financial statements: Yes
Briefing of financial results: Yes (for analysts and institutional investors)(Millions of yen, rounded down to the nearest million)

1. Financial results for fiscal year 2020 (April 1, 2019 – March 31, 2020)(Percentages represent changes from the same period of previous year)(1) Results of Operation
Net sales

Operating income

Million yen

Fiscal year ended March 31, 2020
Fiscal year ended March 31, 201911
155

% Million yen

-92.7
-56.0

Net income pershare-1,827-1,665

Ordinary income

Net income%

Million yen%

Million yen%－－-1,823-1,678－－-1,857-1,884－－

Fully diluted net
Return on
Ratio ofincome pershareholders’ ordinary income
shareequityto total assets

Yen

Yen

%

Operatingmargin%%Fiscal year ended March 31, 2020
-44.20-45.3-41.6-16,170.4－
Fiscal year ended March 31, 2019-44.95-31.6-26.8-1,069.0－(Note)
Fully diluted net income per share is not stated as net loss was recorded for this period although there areresidual shares.

(2) Financial Position
Total assets

Net assets

Net assets per
share

Equity ratio

Million yen%

Yen

As of March 31, 2020
3,474
3,235
As of March 31, 2019
5,304
5,096
(Reference) Shareholders’ equity As of March 31, 2020 3,178 million yen
As of March 31, 2019 5,025 million yen

91.5
94.7

75.49
119.66

Million yen(3) Cash Flows
Cash flows
from operating
activities
Fiscal year ended March 31, 2020
Fiscal year ended March 31, 2019

Cash flows
from investing
activities

Cash flows
from financing
activities

Cash and cash
equivalents at endof period

Million yen

Million yen

Million yen

Million yen-1,784-1,457

-106
-185

8
15

3,018
4,901

2. Dividends
Annual dividends per share
1Q
Fiscal year ended March 31, 2019
Fiscal year ended March 31, 2020
Fiscal year ending March 31, 2021
(Forecast)

2Q

3Q

4Q

AnnualTotal
Ratio ofdividends
Payout ratio dividends topaid
net assets(annual)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

―
―

0.00
0.00

―
―

0.00
0.00

0.00
0.00

―
―

―
―

―
―

―

0.00

―

0.00

0.00

―

3. Projected financial results for fiscal year 2021 (April 1, 2020 – March 31, 2021)
Net sales
Million yen(Percentages represent changes from the same period of previous year)
Net income
Operating income Ordinary income
Net income
per share% Million yen% Million yen% Million yen

Yen%

Full year3-73.5 -1,894-45.30－ -1,894－ -1,907－(Note)The Company manages business results on an annual basis, and therefore only the full-year financial forecasts
are disclosed.

[Notes](1) Changes in significant accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to revisions of accounting standards, etc.
: None2) Changes in accounting policies due to other reasons than above 1): None3) Changes in accounting estimates: None4) Restatements: None(2) Number of shares outstanding (common stock)1) Number of shares outstanding at theend of the period (including treasury
stock)
2) Number of shares of treasury stock at
the end of the period
3) Average number of shares during theperiodAs of March 31,
2020
As of March 31,
2020
Year ended
March 31, 2020

42,101,000 shares― shares42,031,977 shares

As of March 31,
2019
As of March 31,
2019Year ended
March 31, 2019

41,993,500 shares― shares41,916,427 shares* These financial results are outside the scope of audits by a certified public accountant or an audit
corporation.
* Explanations regarding appropriate use of forecasts and projections of financial results, and other specificnotes- All forecasts and projections contained in this document are based on the information available andcertain assumptions deemed reasonable by the Company at this time. They are not intended torepresent our promise to attain them as a goal. Actual results may differ substantially due to various
reasons. For details on the assumptions and conditions for forecasts and projections as well as noteson their use, please refer to “1. Overview of Operating Results, etc., (4) Future Outlook” on page 3 ofthe attachment.

Contents of the Attachment
1. Overview of Operating Results, etc. ............................................................................................................. 2(1) Overview of Operating Results for the Fiscal Year under Review ............................................................ 2(2) Overview of Financial Position for the Fiscal Year under Review ............................................................ 3(3) Overview of Cash Flows for the Fiscal Year under Review ...................................................................... 3(4) Future Outlook ........................................................................................................................................... 3
2. Basic Stance on Choice of Accounting Standards ......................................................................................... 4
3. Financial Statements and Primary Notes ....................................................................................................... 5(1) Balance Sheets ......................................................................................................................................... 5(2) Statements of Operations .........................................................................................................................7(3) Statement of Changes in Net Assets .......................................................................................................... 9(4) Statements of Cash Flows ...................................................................................................................... 10(5) Notes to Financial Statements ................................................................................................................ 11(Notes on going concern assumption) ..................................................................................................... 11(Statement of cash flows) ......................................................................................................................... 11(Segment information, etc.) ..................................................................................................................... 11(Per share information) ............................................................................................................................ 11(Significant subsequent events) .............................................................................................................. 12―1―

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended March 31, 2020, while global economic growth was seen to follow a downward
trend mainly due to the impact of protectionist trade policies, the global outbreak of the coronavirus disease(COVID-19) pandemic has led to possibly the worst post-war economic recession in 2020, and the situation has
become extremely uncertain. As for the Japanese economy, while a gradual recovery trend was seen on thewhole, the situation has also become uncertain, due to the sharp deceleration of inbound consumption, domestic
demand, exports, and other elements amid the continuous self-restraint on economic activities to avoid thecollapse of medical services caused by the spread of COVID-19.
BrightPath Biotherapeutics Co., Ltd. (the “Company”) has been committed to the field of cancer
immunotherapy drugs, which continues to drive the growth of the pharmaceutical industry. In the last 5 years,
cancer immunotherapy drugs brought about a revolution in cancer treatment which used to occur only aroundonce in half a century, triggering the expansion of types of cancer indications and the diversification of modalities(drug types). Yet, despite enabling the breakthrough in cancer immunotherapy*1, the single-drug response rateof immune check point inhibitor antibodies*2 remains approximately 10-40% for many cancer types. There arestill large unmet medical needs, with much room of further innovation in cancer immunotherapy, a scientifically
proven mechanism for cancer treatment.
Under such an environment, the Company aims to “enable a world where cancer patients can defeat cancer
on their own.” Specializing in the field of new cancer immunotherapy drugs, the Company has been
simultaneously developing multiple pipelines of cancer vaccines, cell therapy agents, and antibody drug
modalities in various stages ranging from basic research to clinical trials.
A pipeline currently under clinical trial is cancer peptide vaccine (GRN-1201). A phase II clinical trial iscurrently underway in the US for non-small cell lung cancer (NSCLC) used in combination with immune checkpoint inhibitor antibody Pembrolizumab.
Next to enter the clinical trial phase is induced pluripotent stem cell (iPSC) derived regenerating natural killer
T-cell (NKT cell) therapy (iPS-NKT) in the cell therapy agent pipeline. An investigator-initiated clinical trial
targeting head and neck cancer led by RIKEN and National University Corporation Chiba University is underpreparation to commence shortly.
Three more drugs are under pre-clinical trials, namely, the fully personalized neoantigen cancer vaccine*3(BP1101), a next generation cancer vaccine, HER2 chimeric antigen receptor (CAR) T cell (CAR-T cell) therapy(BP2301) licensed from National University Corporation Shinshu University this fiscal year, and toll-like receptor
9 (TLR9) Agonist (BP1401) licensed from National University Corporation Osaka University and other entities
this fiscal year. All pipeline antibody drugs are self-originated in a quest to follow the success of PD-1/PD-L1
and realize best-in-class antibodies. Thus, the Company is working on antibodies that inhibit target molecules
serving as immune checkpoint proteins regarding the exhaustion and suppression of T cells, the efficacy ofwhich are in the process of being proven scientifically. Moving forward, the Company will optimize its leadproducts, further assess their function and obtain new higher-functioning clones.
As a result, for the fiscal year ended March 31, 2020, we recorded 1,827,349 thousand yen as operating loss
(operating loss of 1,665,548 thousand yen in the previous fiscal year), 1,823,996 thousand yen as ordinary loss
(ordinary loss of 1,678,084 thousand yen in the previous fiscal year), and net loss of 1,857,774 thousand yen(net loss of 1,884,318 thousand yen in the previous fiscal year).
<Glossary>*1 cancer immunotherapy
Cancer immunotherapy evokes and increases the immune reaction against cancer cells (cancer immunity)
to kill cancer cells, reduce tumors, suppress progression/metastasis and prevent recurrence.
*2 immune check point inhibitor antibodies
Cancer cells have a mechanism to suppress the immune system and evade the anticancer response of
immune cells. Antibody drugs inhibit molecules called immune check points to block this suppression.
―2―

*3 fully personalized neoantigen cancer vaccine
Cancer vaccines tailored to match the neoantigens found on cancer cells of individual patients. Clinical trials
are performed overseas.
(2) Overview of Financial Position for the Fiscal Year under Review
At the end of the fiscal year under review, assets were 3,474,639 thousand yen, a decrease of 1,829,824
thousand yen from the end of the previous fiscal year. The main factors for this include a decrease of 1,882,820
thousand yen in cash and deposits due to expenditures related to research and development, etc.
Liabilities were 239,401 thousand yen, an increase of 31,010 thousand yen from the end of the previous
fiscal year. The main factors for this include a decrease of 27,519 thousand yen in accounts payable - trade due
to royalty payments based on a comprehensive business agreement with Kurume University, and an increaseof 54,260 thousand yen in accounts payable - other due to a rise in research and development costs andpurchases of research equipment.
Net assets were 3,235,237 thousand yen, a decrease of 1,860,834 thousand yen from the end of the previous
fiscal year. The main factor for this is recording a net loss of 1,857,774 thousand yen.
As a result of the above, equity ratio was 91.5% compared to 94.7% at the end of the previous fiscal year.
(3) Overview of Cash Flows for the Fiscal Year under Review
At the end of the fiscal year under review, cash and cash equivalents (hereinafter “net cash”) amounted to
3,018,356 thousand yen, a decrease of 1,882,820 thousand yen from the end of the previous fiscal year. The
situation of each cash flow for the fiscal year under review and the underlying factors are as follows:(Cash flows from operating activities)
Net cash used in operating activities amounted to 1,784,461 thousand yen (1,457,571 thousand yen used in
the previous fiscal year). This was mainly due to recording loss before income taxes of 1,859,861 thousand yen,
impairment loss of 48,159 thousand yen, depreciation of 62,471 thousand yen, and a decrease in notes andaccounts payable - trade of 27,519 thousand yen.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 106,879 thousand yen (185,115 thousand yen used in theprevious fiscal year). This was mainly due to 107,282 thousand yen spent for purchase of property, plant andequipment associated with research and development equipment, etc.
(Cash flows from financing activities)
Net cash provided from financing activities amounted to 8,521 thousand yen (15,810 thousand yen provided in
the previous fiscal year). This was mainly due to 10,750 thousand yen in proceeds from issuance of shares
resulting from exercise of share acquisition rights.
(4) Future Outlook
The Company specializes in the field of cancer immunotherapy drugs, and has developed cancer vaccines
since its foundation. With the new addition of cell therapy agents and antibody drugs, the Company will work on
drug candidates in these three modalities, under a business model that covers the process from basic research
to clinical trials, followed by licensing out.
The cancer peptide vaccine (GRN-1201) currently under clinical trial will be the first vaccine targeting NSCLC
originating from Japan for use in combination with immune check point inhibitors and is currently under phase
II clinical trial in the US. The project is currently at stage 1 of phase II clinical trial. Upon accumulating a certain
number of cases, an interim assessment will be made to find if target response rates are attained, to enter stage
2 and eventually accumulate enough cases to withstand statistical evaluation.
iPS-NKT is currently slated for phase I clinical trial (investigator-initiated). It is a new master cell bank-type
allogenic cell therapy agent using regenerated NKT cells derived from iPS cells to treat solid tumors. Thisdevelopment project was initially led by RIKEN, and now is a joint study with the Company after it participatedin 2018, obtaining the option to license in the right to exclusive development, manufacturing and marketing of―3―

iPS-NKT cell therapy. The Company will support this investigator-initiated clinical trial for the world’s first clinicaluse of iPS regenerated NKT cell therapy, while improving the manufacturing process with an eye to thesubsequent phase II clinical trial (sponsor-initiated).
HER2 CAR-T cell therapy (BP2301) aims to expand CAR-T cell therapy, which has a response rate that may
reach 70-90% for hematological cancer, to solid tumors. Yet, extending CAR-T to solid tumors has problems notfound in hematological cancer, in that CAR-T cells are exhausted by local immunosuppression on the tumor,
and are not able to fully function. To overcome the problem, the Company jointly created with Shinshu University,
etc. a method to produce young memory T cells, long-lived in vivo, that may achieve long-term persistence ofanti-tumor effects. Pre-clinical trials will be performed on this pipeline to assess drug efficacy, pharmacology,
and safety to move on to clinical trials.
The fully personalized neoantigen vaccine (BP1101) is a next generation vaccine in personalized medicine.
As tumor mutation burden (number of neoantigens) and response to the immune check point antibody therapy
correlate, the antibody is deemed to enhance the antitumor effect of T cells, which identify neoantigens ascancer markers. To enter clinical trials, the Company is promoting joint studies with National Research andDevelopment Agency National Cancer Center Japan, National University Corporation The University of Tokyo,
Incorporated Administrative Agency Kanagawa Prefectural Hospital Organization Kanagawa Cancer Center,and National University Corporation Mie University. A bioinformatics system is being developed to support
machine learning algorithms required for selecting neoantigen vaccines unique to patients. Pre-clinical trials are
ongoing for this pipeline as well.
BP1401 is a TLR9 Agonist which stimulates the TLR9 receptors of dendritic cells to facilitate the activefunctioning of T cells with antitumor response in a strongly immunosuppressive tumor microenvironment.
Depending on the cancer type and the individual patient, tumors may be a “cold tumor” which T cells cannot
infiltrate to form cancer immunity. BP1401 will stimulate the TLR9 of dendritic cells, and by inducing naturalimmunity first, the tumor will be transferred to a “hot tumor” that facilitates T cell infiltration. As BP1401 is a lipid
preparation, it can be administered into veins that run throughout the body, and differentiates from precedents
that only allow local administration to tumors to secure safety. This pipeline will also undergo pre-clinical trials.
Antibody drug pipelines are at the basic research phase. BP1200 is an antibody that inhibits CD73, which is
involved in producing adenosine, a key factor in generating an immunosuppressive tumor microenvironmentthat helps tumors proliferate. BP1210 is an antibody that inhibits the binding of TIM-3 which exhausts T cells bytransmitting suppressive signals, just like PD-1/PD-L1. Seed antibodies have been produced for both BP1200
and BP1210, which indicate functional superiority over precedents. Several antibodies that react to otherimmune check point molecules are currently being created. Moving forward, the Company will optimize its leadproducts, further assess their function and obtain new higher-functioning clones.
As a result of the above, for the fiscal year ending March 31, 2021, we are planning research anddevelopment costs of 1,536 million yen to further promote research and development, and expecting an
operating loss of 1,894 million yen, ordinary loss of 1,894 million yen, and net loss of 1,907 million yen.
2. Basic Stance on Choice of Accounting Standards
The Company applies accounting principles generally accepted in Japan (Japanese GAAP), and willappropriately consider the adoption of International Financial Reporting Standards (IFRS) in line with various
conditions in Japan and overseas in the future.

―4―

3. Financial Statements and Primary Notes(1) Balance Sheets(Thousands of yen)
As of March 31, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and deposits
Accounts receivable - tradeOther

4,901,177
841
259,629

3,018,356
659
309,169

Total current assets

5,161,647

3,328,186

0090,7600097,156

90,76097,156

0

0

0

0

0
52,055049,296

Non-current assets
Property, plant and equipment
Buildings, net
Machinery and equipment, net
Tools, furniture and fixtures, net
Total property, plant and equipment
Intangible assets
SoftwareTotal intangible assets
Investments and other assets
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Total assets―5―52,05549,296

142,815

146,452

5,304,463

3,474,639

(Thousands of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - otherAccrued expenses
Income taxes payable
Advances received
Deposits received

28,33374,001
6,234
31,920
1,943
6,383

814
128,261
1,661
34,158976
6,989

Total current liabilities

148,816

172,862

4,819
33,142
21,612044,254
22,285

Non-current liabilities
Deferred tax liabilities
Provision for retirement benefits
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Total capital surpluses
Retained earnings
Other retained earnings
Retained earnings brought forward

59,574

66,539208,390

239,401

5,427,836

5,433,211

5,411,421

5,416,796

5,411,421

5,416,796-5,814,215-7,671,989

Total retained earnings-5,814,215-7,671,989

Total shareholders' equity

5,025,042

3,178,018

71,02957,2195,096,072

3,235,237

5,304,463

3,474,639

Share acquisition rights
Total net assets
Total liabilities and net assets―6―

(2) Statements of Operations(Thousands of yen)
Fiscal year ended
March 31, 2019
Net sales
Revenue from research and development
Net sales of goods
Other sales
Total net sales
Cost of sales
Research and development costs
Cost of goods soldBeginning goods
Cost of purchased goods
Total
Cost of goods soldTotal cost of sales
Gross profit

Fiscal year ended
March 31, 2020

124,920
7,348
23,540

3,800
7,500

155,808

11,30066,712

1,467

990
3,000

－
3,000

3,990

3,000

－

3,990

3,000

70,702

4,467

85,106

6,832

Selling, general and administrative expenses

1,750,655

1,834,182

Operating loss

-1,665,548-1,827,349

1,762

42
3,009

Non-operating income
Interest income
Foreign exchange gains
Subsidy income
Technical advisory fee
Other－14,084
3,600
665

Total non-operating income
Non-operating expenses
Foreign exchange losses
Miscellaneous loss
Provision of allowance for doubtful accounts for
subsidiaries and associates
Total non-operating expenses
Ordinary loss
Extraordinary profit
Gain on reversal of share acquisition rights
Gain on sales of non-current assets
Total extraordinary profit
Extraordinary losses
Loss on valuation of shares of subsidiaries andassociates
Loss on sales of non-current assets
Impairment loss
Other
Total extraordinary losses
Loss before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net loss

―7―

－
－
357

20,111

3,409

4,033
－

－
56

28,614－32,64756-1,678,084-1,823,996－－

12,45495－

12,5507,200－－
194,829415

255
48,159－202,445

48,415-1,880,529
3,670
118

-1,859,861
2,732-4,8193,788-2,087-1,884,318-1,857,774

Manufacturing Statement
1. Manufacturing statement for research and development costs
Fiscal year ended
March 31, 2019
Category

Notes

Amount(Thousand yen)

Fiscal year ended
March 31, 2020

Composition(%)

Amount(Thousand yen)

Composition(%)

I. Material cost

368

0.6

－

－

II Labor cost

17,30026.5－－

47,637

72.9

1,467

100.0

65,306

100.0

1,467

100.0

III Expenses*1

Research and development
expenses for the current period
Work in progress at the
beginning of the period
Total
Transfer to other account*2

Research and development
costs for the current period

3,006

－

68,312

1,467

1,600

－

66,712

1,467(Note) *1 Main breakdown is as follows:(Thousand yen)
Item

Fiscal year ended
March 31, 2019

Outsourcing expenses

Fiscal year ended
March 31, 2020
15,866720(Note) *2 Details of transfer to other account is as follows:(Thousand yen)
Item

Fiscal year ended
March 31, 2019

Accounts receivable

Fiscal year ended
March 31, 2020
1,600

(Cost accounting method)
The Company adopts the job-order cost system.

―8―−

(3) Statement of Changes in Net Assets
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(Thousands of yen)
Shareholders’ equity
Capital assets
surplusCapital stock

Balance at beginning ofcurrent period
Changes of items
during period
Issuance of newsharesLegal capital Total capitalsurplussurplus5,419,931

5,403,516

5,403,516

7,905

7,905

7,905

Net loss
Net changes of items
other thanshareholders' equity
Total changes of items
during period
Balance at end ofcurrent period

Retainedearnings
Other
Share
retained
Total
acquisition
earnings
shareholders'
rightsTotal retained
equityRetainedearnings
earnings
brought
forward-3,929,896-1,884,318-3,929,896-1,884,318

6,893,551

57,019Total net
assets6,950,570

15,81015,810-1,884,318-1,884,318
14,01014,010

7,905

7,905

7,905

-1,884,318-1,884,318-1,868,508

14,010-1,854,498

5,427,836

5,411,421

5,411,421-5,814,215-5,814,215

5,025,042

71,0295,096,072

Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(Thousands of yen)
Shareholders’ equity
Capital assets
surplusCapital stock

Balance at beginning ofcurrent period
Changes of items
during period
Issuance of newsharesLegal capital Total capitalsurplussurplus5,427,836

5,411,421

5,411,421

5,375

5,375

5,375

Net loss
Net changes of items
other thanshareholders' equity
Total changes of items
during period
Balance at end ofcurrent period

Retainedearnings
Share
Other
acquisition
retainedTotal
rightsearnings
shareholders'
Total retained
equityRetainedearnings
earnings
brought
forward-5,814,215-1,857,774-5,814,215-1,857,774

5,025,042

71,029Total net
assets

5,096,072

10,75010,750-1,857,774-1,857,774-13,810-13,810

5,375

5,375

5,375

-1,857,774-1,857,774-1,847,024-13,810-1,860,834

5,433,211

5,416,796

5,416,796-7,671,989-7,671,989

3,178,018

57,2193,235,237―9―

(4) Statements of Cash Flows(Thousands of yen)
Fiscal year ended
March 31, 2019
Cash flows from operating activities
Loss before income taxes
Depreciation
Share-based compensation expenses
Impairment loss
Loss on valuation of shares of subsidiaries and associates
Provision of allowance for doubtful accounts for subsidiaries andassociates
Gain on reversal of share acquisition rights
Increase (decrease) in retirement benefit liability
Interest and dividend income
Subsidy income
Decrease (increase) in notes and accounts receivable - trade

Fiscal year ended
March 31, 2020

-1,880,529
82,77014,010
194,829
7,200-1,859,861
62,471
872
48,15928,614－－
1,677-1,762-14,084
76,171-12,454
11,112-42

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade27,56919,564－-27,519

Increase (decrease) in advances received
Other, net-6,988-17,092-967-4,329

-1,468,048-1,782,376

63
14,084-3,67042－-2,127-1,457,571-1,784,461-173,164-2,093-107,282-2,850495

SubtotalInterest and dividend income received
Proceeds from subsidy income
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of property, plant and equipment
Purchase of shares of subsidiaries
Payments of loans receivableCollection of loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Payments for asset retirement obligations
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of shares resulting from exercise of shareacquisition rights
Repurchase of share acquisition rights－-7,200-8,20010,000-4,323
800
-934

－

－
181

－
－
－
－
2,758
－

-185,115-106,879

15,81010,750－-2,228Net cash provided by (used in) financing activities

15,8108,521

Net increase (decrease) in cash and cash equivalents-1,626,876-1,882,820

Cash and cash equivalents at beginning of period

6,528,053

4,901,177

Cash and cash equivalents at end of period

4,901,177

3,018,356―10―

(5) Notes to Financial Statements(Notes on going concern assumption)
Not applicable.
(Statement of cash flows)
Details of significant no-cash transactions
Asset retirement obligations
Fiscal year ended
March 31, 2019
1,892

Significant asset retirement obligations recorded(Thousands of yen)
Fiscal year ended
March 31, 2020
583

(Segment information, etc.)
Segment information is omitted as the Company operates in the single business segment of the pharmaceuticaldevelopment business and there is no other significant segment information.
(Per share information)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020
Yen

Yen

Net assets per share

119.6675.49

Net loss per share-44.95-44.20(Notes) 1. Fully diluted net income per share is not stated as net loss was recorded although there are residual shares.
2. The basis for calculating net loss per share is as follows:
Fiscal year ended
March 31, 2019
Net loss (Thousands of yen)Amount not attributable to common shareholders(Thousand yen)
Net loss for common stock (Thousand yen)

Fiscal year ended
March 31, 2020

-1,884,318-1,857,774――-1,884,318-1,857,774

Average number of shares of common stock during the41,916,427
period (Shares)
Overview of residual shares not included in calculationof fully diluted net income per share due to lack of―dilutive effect
3. The basis for calculating net assets per share is as follows:
Fiscal year ended
March 31, 2019
Total net assets (Thousand yen)

42,031,977―

Fiscal year ended
March 31, 2020

5,096,072

3,235,237

Amount deducted from total net assets (Thousand yen)

71,02957,219(of which, share acquisition rights) (Thousand yen)

-71,029-57,219

Net assets at the end of the period for common stock(Thousand yen)

5,025,042

3,178,018

Number of shares of common stock at the end of theperiod to calculate net assets per share (Shares)

41,993,500

42,101,000―11―(Significant subsequent events)
Issuance of the 14th share acquisition rights
The Company issued the 14th share acquisition rights (third party allotment) on April 23, 2020 based on a
resolution of the Board of Directors at a meeting held on April 7, 2020.
The total issue price of the share acquisition rights has been paid in and they were allotted on the same date.
Based on the resolution of Board of Directors, the Company has entered into a third party allotment agreementwith commitment clause with Merrill Lynch Japan Securities Co., Ltd. on April 23, 2020.
Details of the 14th share acquisition rights (third party allotment) are as follows:
Number of share acquisitionrights10,103 units

Number and class of shares
underlying the share acquisitionrightsCommon stock of the Company: 10,103,000 shares

Issue price

58 yen per unit of share acquisition rights (total 585,974 yen)

Number of residual shares
resulting from the issuance

Number of residual shares: 10,103,000 shares
There is no maximum exercise price.
Minimum exercise price is 122 yen. The number of residual shares at minimum
exercise price is also 10,103,000 shares.

Exercise price and its adjustment
condition

Initial exercise price: 204 yen
Exercise price is adjusted to the amount equivalent to 92% of the closing priceof the Company’s common stock quoted on the immediately preceding trading
date of the effective date of each exercise request for the share acquisitionrights. If the price is below the minimum exercise price, it shall be adjusted tothe minimum exercise price.

Exercise period of the shareacquisition rights

From April 24, 2020 to April 25, 2022

Allottee

Merrill Lynch Japan Securities Co., Ltd.

Purpose of funds(1) Research and development costs for cancer immunotherapeutic drug
pipeline(2) Other funds for business operation

Details of third party allotment
agreement with commitment
clauseThe Company has entered into a third party allotment agreement withcommitment clause with Merrill Lynch Japan Securities Co., Ltd. The third party
allotment agreement stipulates matters including designation and suspension of
exercise, as well as restriction on transfer, etc. of the share acquisition rights.

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