■Company Overview
2. growth strategy
Kubota Pharmaceutical Holdings ＜4596＞ has a vision of “eradicating blindness from around the world,” and in addition to developing medical devices utilizing cutting-edge digital technology and developing therapeutic agents for eye diseases for which there is no effective treatment, it has started the myopia eradication project “ZERO Diopter Project” * from 2023. As a development strategy, we are working to diversify business risk and increase corporate value by forming two business portfolios with different risk-return characteristics, pharmaceuticals and medical devices.
*The ZERO Diopter Project is an activity aimed at a world where objects can be clearly seen with the naked eye without the need for correction. Specifically, it is a project to spread knowledge about the mechanism and treatment of myopia through seminars and event activities, disseminate lifestyle habits to prevent poor eyesight, and encourage people to undergo ophthalmological checkups for early detection of diseases. Seminars and tests are conducted at companies and schools interested in health management, and educational activities and consultation rooms for myopia are held in local governments and local communities.
Divided by business area, each business is being developed in 3 areas: pre-disease/prevention area, progression suppression area, and area aiming for complete cure (drug discovery). In the pre-disease/prevention area, we are working on the development of health management support services and ophthalmology medical devices using the “ZERO Diopter Project,” and in the progression control area, we are working on the development of “Kubota Glass” and “emixstat hydrochloride” suitable for Stargard disease. Furthermore, as a basic strategy for drug development, development is carried out in-house until the stage where POC* is acquired in humans, and then joint development/sales license agreements are concluded with pharmaceutical companies, aiming for profit growth by acquiring milestone profits obtained through development progress and sales royalties after marketing. Also, when large-scale clinical trials are required for medical devices, joint development/sales license agreements are concluded and proceeded.
*POC (Proof of Concept): The effects of drugs assumed in basic research are actually proven in administration tests to humans.
In addition, we are also focusing on intellectual property strategies, which are important in maintaining corporate competitiveness, and as of the end of 2022/2, the number of patents obtained is 31 for medical devices and 53 for pharmaceuticals, and the number of pending applications has exceeded 100. The number of consolidated employees was 12 as of the end of 2023/12, an increase of 5 compared to the end of the previous fiscal year. In the past, management department staff were the center, but in order to build a specialized organization for selling “Kubota Glass,” human resources such as marketing were hired. Regarding research and development, while obtaining advice from specialized advisors in the ophthalmology field, they are proceeding by utilizing external partners for each project, and it is characterized by constructing a management system that is a light asset. There are 2 subsidiaries, Kubota Vision Inc. in the US and Kubota Vision Japan Co., Ltd., and the US subsidiary mainly contacts advisors and searches for license candidate companies, etc., and domestic subsidiaries have mainly developed the “Kubota Glass” business since 2024.
(Author: FISCO Visiting Analyst Joe Sato)