Medinet <2370> announced its financial results for the second quarter of the 2024 fiscal year (October 23-March 24) on the 10th. Sales revenue increased by 14.4% year on year to 399 million yen, operating loss was 658 million yen (loss of 671 million yen in the same period last year), ordinary loss was 632 million yen (loss of 669 million yen last year), and quarterly net loss was 634 million yen (loss of 676 million yen last year).

Revenue from cell processing industry sales increased by 14.4% YoY to 399 million yen, with a segment loss of 154 million yen (loss of 133 million yen in the same period last year). We are actively expanding in the three business areas (specific cell processing manufacturing, CDMO business, and value chain business). In this second quarter cumulative period, revenue increased in specific cell processing manufacturing due to the recovery of the number of immunocyte processing consignments, price revisions with some customers, and one-time technical transfer fees for manufacturing consignments. In the CDMO business, revenue increased due to price revisions for manufacturing consignment fees, etc.

Revenue from regenerative medicine and other product businesses decreased by 39.7% YoY to 0.00 billion yen, and the segment loss was 219 million yen (loss of 225 million yen in the same period last year) due to a decrease in research and development expenses. We aim to early monetize regenerative medicine and other products and are also paying attention to the development trends of regenerative medicine and other products being conducted domestically and overseas, and conducting activities with the view of acquiring and expanding their pipeline.

With respect to the performance forecast for the full year ending September 2024, we are maintaining our initial plan to set sales revenue at 8.5 billion yen, a 28.5% increase from the previous year, and operating loss, ordinary loss, and net loss for the period at 1.488 billion yen, 1.475 billion yen, and 1.479 billion yen, respectively.