Newly Listed Company Introduction Report (Issued by The Stock Research Center)

PRISM BioLab (206A TSE Growth)July 23, 2024

Develops small molecule drugs that modulate intracellular protein-protein interactions
This report is an English translation of part of the report issued on July 5, 2024.
For inquiries concerning the report, please contract info@stock-r.org【206A PRISM BioLab Sector：Pharmaceutical】
Fiscal Year
Sep. 2022
Sep. 2023
Sep. 2024f

Net sales

YoY

OperatingprofitYoY

Ordinary
profitYoYProfit

YoY

EPS

BPS

DPS

(mn yen)(%)(mn yen)(%)(mn yen)(%)(mn yen)

(%)

(yen)

(yen)

(yen)

554

9.6x

66-

78-

112-79.8-496-

-497

300

2.7x-888-

-914

72-

2.7-15.4

0.0-

-526-

-19.1

-34.5

0.0

-

-1,160-

-40.0

-

0.0

Note: Consolidated basis.Figures for the fiscal year ending September 2024 is the company's forecasts.
It conducted 1:200 stock split on May 9, 2024.Per share indicies are adjusted retroactively.

Developing Drugs using PepMetics Technology
Through its proprietary PepMetics (peptide mimetics) technology, PRISM BioLab develops
small-molecule drugs that modulate intracellular protein-protein interactions (PPI) using
small-molecule organic compounds that mimic peptides.
Within the cell, in response to external stimuli, a variety of proteins transmit signals to DNA
in the cell nucleus, leading to the generation of mRNA. Translation of the mRNA
information results in the production of new proteins. PPIs play an important role inintracellular signal transduction. When abnormal, they are the source of disease and,
therefore, a target for drug discovery to treat disease.
The company's PepMetics Technology creates peptide mimetic small-molecule organic
compounds with a wide range of three-dimensional structures. These compounds bind tothe target protein in the cell and, through the action of the amino acid side chain, exert
their pharmacological effect by inhibiting the PPI from binding to the partner protein.

Business Models
PRISM BioLab has two business models: in-house development and collaborativedevelopment.
In its in-house development business, the company chooses drug discovery targets andgenerates initial compounds (hit compounds) that are active against these targets. It
optimizes the hit compounds into clinical candidate compounds and then licenses them topharmaceutical companies. Through this business model, the company receives anupfront payment at the time of licensing, then receives payments upon development
milestone achievements and earns royalty income on post-sale revenue.
In its collaborative business, the company will leverage its PepMetics compound library togenerate hit compounds and optimize compounds for drug discovery targets chosen bypartner pharmaceutical companies. PRISM BioLab receives upfront payments,
collaborative research revenues, and royalties based on development-based milestones
and sales. The collaborative business requires little investment on the part of the company
and profitability is expected at an early stage.

Newly Listed Company Introduction Report

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The contents indicated in the report are based on information as of the date the report was created and are subject to change without prior notice. The Stock Research Center
makes no warranty or representation concerning the accuracy, reliability, completeness, adequacy and reliability of the information indicated in the report, and shall not assume
no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.

Newly Listed Company Introduction Report (Issued by The Stock Research Center)

PRISM BioLab (206A TSE Growth)July 23, 2024

Financial Statements

Statement of income

Fiscal Year

Sep. 2022(mn yen)Six months
to Mar.2024

Sep. 2023(%)(mn yen)(%)(mn yen)(%)

Net sales

554

100.0

112

100.0

115

100.0

Cost of sales

19

3.4

32

28.6

45

39.1

Gross profit

535

96.6

80

71.4

70

60.9

Selling, general and administrative expenses

468

84.5

577

5.2x

404

3.5x

Operating profit

66

11.9-496--334-

Non-operating income

13-0-

16-

Non-operating expenses

1-0-5-

Ordinary profit

78

14.1-497--322-

Profit before income taxes

74--525--335-

Net profit

72

13.0

-526

-

-336

-

Balance sheet

Fiscal Year

Sep. 2022(mn yen)Current assets
Cash and deposits
Accounts receivable-trade
Inventories
Non-current assets
Property, plant and equipment

Sep. 2023(%)(mn yen)Mar.2024(%)(mn yen)

(%)

1,732

99.5

1,197

98.8

3,059

99.1

1,687

97.0

1,133

93.6

2,960

95.9

21

1.2

-

-

30.1

-

-----

80.5

131.1

270.9

00.0

00.0

00.0

Intangible assets------

Investments and other assets

80.5

13

1.1

270.9

1,740

100.0

1,211

100.0

3,086

100.0

65

3.2

63

5.2

774

25.1

-

-

-

--

-

Total assets
Current liabilities
Accounts payable - tradeNon-current liabilities
Net assets
Owners' equity

Statement of cash flows

Fiscal Year

Cash flows from operating activities
Depreciation

00.0

0

0.0

0

0.0

1,674

96.2

1,148

94.8

3,086

100.0

1,674

96.2

1,147

94.7

3,086

100.0

Sep. 2022

May. 2023(mn yen)(mn yen)Six months
to Mar.2024(mn yen)102-513

340

18-

Cash flows from investing activities-7-40-24

Cash flows from financing activities

110-1,494---216-554

1,826

1,687

1,133

2,960

Dividends paid
Net increase in cash and cash equivalents
Cash and cash equivalents

Note:Non-consolidated
Source: Prepared by Stock Research Center based on the notifiable prospectus.

Newly Listed Company Introduction Report

2/2

The contents indicated in the report are based on information as of the date the report was created and are subject to change without prior notice. The Stock Research Center
makes no warranty or representation concerning the accuracy, reliability, completeness, adequacy and reliability of the information indicated in the report, and shall not assume
no responsibility or obligation whatsoever. The Stock Research Center assumes no responsibility for any direct or indirect loss, lost profit, damage or other results from investors
accessing and using the report or relying on the report concerning the distribution of the report. Final investment decisions shall be made by the investors themselves, and entire
responsibility for investments lies with investors that accessed the report. In addition, intellectual rights concerning the report belongs to The Stock Research Center and may
not be copied, reprinted, quoted, etc. without permission.