Momotaro-Gene Inc. (E33052) Stock Price

Momotaro Genen is a drug discovery venture company developing innovative gene therapy drugs utilizing the cancer suppressor gene "REIC," which was discovered at Okayama University. The company's flagship product is a therapeutic drug using the REIC gene, which selectively kills cancer cells only. Through local administration to cancer lesions, it achieves high therapeutic efficacy. It does not affect normal cells and activates the body's immune function, thereby demonstrating effectiveness against metastatic cancers as well.

As a drug discovery venture currently in the research and development stage, the company aims to transfer its technology to major pharmaceutical companies in the future. Completion of clinical trials is a critical milestone toward revenue generation. In particular, success in Phase 1 clinical trials—which confirm safety and efficacy in humans—is a prerequisite for formal partnership negotiations with pharmaceutical companies.

The company's business consists of a single operation: therapeutic drug research and development. It is focusing on strengthening bridging functions that support research and development. Specifically, in intellectual property strategy, it collaborates with TechManage Inc., and in manufacturing quality control, it has built partnerships with leading research institutions including Okayama University and Baylor College of Medicine in the United States. Through these collaborations, the company has established an integrated development system from basic university research to commercialization, aiming to secure competitive advantages in the increasingly competitive drug discovery field globally.

Momotaro Source is a biotech venture company aiming to commercialize Ad-REIC, an innovative gene therapy drug for cancer treatment. The company has positioned efficient research and development and establishment of a stable revenue base as core elements of its management strategy. Against the backdrop of Japan's 2025 demographic challenges and expanding domestic medical market, coupled with intensifying global competition in cancer drug development, the company is advancing differentiation through its proprietary gene therapy technology. While the company has not yet achieved consistent revenue, it secured approximately 500 million yen through a third-party capital increase in April 2023 to fund research and development.

In priority investment areas, the company is concentrating management resources on advancing Ad-REIC clinical trials. In the United States, it completed a Phase 2a clinical trial combining Ad-REIC with nivolumab for malignant mesothelioma, achieving important results confirming the safety of combination therapy. Domestically, a physician-led Phase 1/2a clinical trial for brain tumors has completed drug administration, with completion of the final clinical trial report expected within the fiscal year. A physician-led trial for liver cancer is also in its final stages, with these clinical data serving as important differentiating factors that substantiate the company's technological value.

In market development, the company has positioned licensing agreements with major pharmaceutical markets in Europe, North America, and China as its highest priority. Building on past milestone revenue from a licensing agreement with Kyorin Pharmaceutical, the company aims to secure future milestone revenue through expanded partnerships with domestic and international pharmaceutical companies. Particularly for the Chinese market, the company plans to expand its business in the Asia region by leveraging collaboration with the EPS Holdings Group.

In technology innovation efforts, the company is focusing on further developing its proprietary gene therapy technology utilizing the REIC gene, which selectively kills cancer cells. The company prioritizes efficient operations and pursues maximum research and development results with limited personnel while implementing cost control measures such as executive compensation reductions. The company is actively approaching domestic and international companies based on clinical trial results, aiming to accelerate the practical application of innovative cancer treatments through licensing and joint development agreements.