No. 2009.01
byJapan Tissue Engineering Co., Ltd. (J-TEC)
Leader in Regenerative Medicine
Japan Tissue Engineering Co., Ltd.
6-209-1 Miyakitadori, Gamagori City, JAPANAichi 443-0022
JAPANwww.jpte.co.jp/english
Founded in:
No. of employees:
State of Ownership:Primary stock exchange:

1999
85
PublicJASDAQ

March 2009: Japan Tissue Engineering Co., Ltd. (J-TEC) was founded in
February 1999 in Gamagori City, Aichi Prefecture, around 250 km south
west of Tokyo, Japan. J-TEC is a pioneer company commercializingautologous cultured epidermis “JACE”, and developing two products: autologous cultured cartilage
and autologous cultured corneal epithelium. The Company was listed on the NEO market under theJASDAQ (code 7774) in December 2007. Venture Valuation (VV) interviewed Mr. Yosuke Ozawa,President and CEO (see below).
VV: Would you please describe your business and its strengths?
Ozawa:J-TEC develops, manufactures, and sells high-quality products in regenerativemedicine. We currently have three products in the pipeline. (see chart below)

The autologous cultured epidermis product “JACE” (shown on the left in the abovechart) was listed on January 1st, 2009 as an item covered by the National Health
Insurance in Japan. This is a historically significant major milestone in the developmentof the Japanese regenerative medicine industry because it represents official
recognition by the Ministry of Health, Labor, and Welfare (MHLW). We are proud of
being the first company to commercialize the regenerative medicine.
As for the second product (shown in the middle of the chart), the autologous cultured
cartilage, we are in the process of submitting an application for approval at MHLW.
Our target is to have it approved no longer than two years after submission. This
product was developed in collaboration with the Hiroshima University in Japan. With
the dramatic aging of the world’s population, the market for this product is expected
to be huge. We plan to look for partners worldwide.

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No. 2009.01

The third product (shown on the right in the chart), the autologous cultured corneal
epithelium was licensed from the Veneto Eye Bank Foundation in Italy. The application
has been submitted to MHLW for starting clinical trials.
With regard to our strengths, I would be happy to mention that:(1) We actively license-in prominent technologies in regenerative medicine all over theworld and make new business models.
(2) We have world-class GMP manufacturing facilities and well-trained skilled staff
members (currently 85 employees).
(3) From its inception, J-TEC has been supported by three well-establishedcompanies: Nidek Co., Ltd., Toyama Chemical Co., Ltd. (now Fuji Film), and INAX
Corp. We have access to their business networks and take advantage of theirexpertise such as sales & marketing, manufacturing, etc.
VV: What are your objectives in the future?
Ozawa:First of all, we are going to successfully market and sell the autologous cultured
epidermis product “JACE” (8cm x 10cm sheet) in Japan and establish a solid businesscase. By being listed as an item covered by the National Health Insurance, around 70%of the price will be reimbursed by the government. However, the insurance coverage
is limited to 20 sheets per patient. (Realistically a patient with severe burns needs 40sheets or more.) The Japanese market size would be around 1 to 3 billion yen(approximately 10 to 30 million US$). The product is not only useful for patients withsevere burns but also for several other conditions such as scars, vitiligo, ulcers, andso on.
The autologous cultured cartilage will be marketed and commercialized worldwide.
And the autologous cultured corneal epithelium will be marketed only in Asia due to theagreement with the Veneto Eye Bank Foundation. Just in Japan, the market size wouldbe 10 to 30 billion yen (approximately 100 to 300 million US$).
VV: In what geographical areas would you like to develop your business?
Ozawa:It depends on the products. The market for JACE is limited to Japan by the agreementwith the licensor, Harvard University. We are interested in having discussions with big
pharma and biotech companies to market the autologous cultured cartilage globally aswell as the autologous cultured corneal epithelium in Asia. We are also willing to talkwith investors.
VV: How do you differentiate from your competitors and position your company?
Ozawa:
There are a few competitors in Europe, specifically in Germany and Belgium. From
those companies, we differentiate with high quality. American companies are moreoriented in the genetic treatment approach so that we do not view them as ourcompetitors.

Contact

Mariko Hirano,Hirano, m.hirano (at) venturevaluation.com
Venture Valuation specializes in independent assessment and valuation of technologydriven companies in growth industries, such as the Life Sciences (Biotech, Pharma,Medtech), ICT, high-tech, Nanotech, Cleantech and Renewable energy. In addition tovaluation products, Venture Valuation offers high-quality, focused information
services like the Global Life Sciences Database, Biotechgate.com and this “Let’sInterview Series’ with leading Life Sciences companies. We select and interview
thriving companies and organizations all over the world.

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