August 25, 2021
Japan Tissue Engineering Co., Ltd.

Announcement : Acceptance of Development Project in FY2021 AMED Program
for the Promotion of Innovation through Industrial-Academic Collaboration
Japan Tissue Engineering Co., Ltd. (“J-TEC”, headquarters in Gamagori, Aichi Prefecture;
President & CEO Ken-ichiro Hata) is pleased to announce the acceptance of its development projectsubmitted under the Japan Agency for Medical Research and Development (AMED) Program for thePromotion of Innovation through Industrial-Academic Collaboration. Through the proposed project,J-TEC aims to create innovative medical devices using human cells, and to contribute to the further
development of regenerative medicine in Japan.
For information about the AMED program*, please see the announcement issued by AMED on
August 24, 2021.
*The information is in Japanese.

(AMED website) https://www.amed.go.jp/koubo/12/01/1201C_00007.html
Details[Title of Development Project]
Development and Commercialization of Dried Allogeneic Cultured Epidermis for Use in Skin
Reconstruction[R&D Representative]
Masukazu Inoie, Executive Officer, R&D Director, Japan Tissue Engineering Co., Ltd.
[Background/History]
In 2007, J-TEC obtained marketing approval for autologous cultured epidermis “JACE”, Japan’s
first regenerative medical product, for the indication of severe thermal burns. Beginning in 2009, themarket launch of “JACE” led to an improvement in the percentage of patients with severe burns
whose lives were saved. However, with severe thermal burns and other skin defects, it is necessary
to stabilize the patient’s overall condition by closing the wound soon after injury, and this meant that
we faced the following challenges with the existing treatment method.
① “JACE” was a product that was made to order, using the patient’s own skin as the raw material,and because it took 3 weeks to manufacture the product, it was not uncommon in severe cases
for the patient to die before the transplant could be performed.
② There are limits to the therapeutic effect of the existing wound covering materials. Autologous
skin transplants are highly invasive for the patient.
③ Because the costs of treating severe thermal burns are extremely high, shortening the treatment
period is desirable from the standpoint of social benefit spending.
We were called upon to find solutions to these challenges.
[Objectives of This Research]Through this research, we aim to commercialize allogeneic cultured epidermis for use in skinreconstruction.
This is a ready-made product made using skin from a donor as the raw material. This means that
it is manufactured beforehand and kept in storage so that it can be used without delay whennecessary. It helps save lives by making it possible to close large-area skin defects like thermal
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burns quickly to promote early reconstruction of the skin, and it can improve the functional prognosis
by reducing scarring.
Moreover, unlike existing wound covering materials, it has high biocompatibility because it ismanufactured from human epidermal cells, and it adheres completely to the wound. It is expected tohave a superior wound-healing promotion effect owing to the biologically active substances
contained in cells.
Because of its dried form, this product can be sterilized and stored for long periods at room
temperature, ensuring safety and convenience. Since it also has the effects of reducing the numberof surgical operations required, preventing infections, and shortening hospitalization periods, it canbe expected to lighten the burden on healthcare professionals and reduce medical expenses.
[Future outlook]
We expect to have grant income in connection with this project, but the effect of this project on theearnings forecast for the full-year ending in March 2022 is expected to be minor. We will promptly
announce any new facts that can be expected to have a substantial effect upon earnings.

Inquiries concerning this topic:
Japan Tissue Engineering Co., Ltd.
Corporate Planning Department, Corporate Management HQ
TEL: 0533-66-2020 Email: jtec-info@jpte.co.jp

Japan Tissue Engineering Co., Ltd., 6-209-1 Miyakitadori, Gamagori, Aichi 443-0022, Japan. URL: https://www.jpte.co.jp2/2