The establishment of the Shonan Institute this fiscal year allowed for the use of drug development tools provided by Takeda Pharmaceutical Company Limited, as well as collaborative research with a variety of companies in this park, which gave us the expectation that our new drug research and development would significantly accelerate. In addition, we hired six researchers this fiscal year and have successfully strengthened our research structure. Regarding the pipelines under clinical trials, we started preparation for the later phase II clinical study of therapeutic drugs for dry eye (LT-4002), which we had been studied in the early phase II clinical study, resulting in the start of the study in April 2019. Moreover, the manufacture of PC-SOD, an investigational drug, and the placebo has been completed. In addition, we started preparation for an additional clinical study of PC-SOD because we found an additional indication for the drug that demonstrated its efficacy.
Our drug discovery business is based on internal development, but we believe that we should accept the challenge of collaborating with competitors in order to speed up development or enhance our pipelines. Therefore, we concluded a collaborative development agreement in the previous business fiscal year with Nobelpharma Co., Ltd., a company that developed pharmaceutical products to meet unmet medical needs. With the start of the clinical study in April 2019, collaborative development has proceeded smoothly. We have made progress in our negotiations with multiple companies for further collaborative development.
Moreover, we have maintained a good relationship with our important business partner Beijing Tide Pharmaceutical Co., Ltd., to provide support and activities that contribute to its improvement. Regarding PC-SOD, which was licensed to the company, good results have been obtained from the phase I clinical study, which has been completed this fiscal year.
Regarding the financial results for this fiscal year, net profit dropped to 327 million yen compared to the previous fiscal year (a decrease of 70.9% on a year-on-year basis) due to the decrease in dividends income, but we were able to keep our accounts in the black. To achieve the management goal of profitable operating income from royalties from licensees of new drugs, we will continue to promote the drug discovery business. We hope you will continue to give us guidance and support in the future.
June 25, 2019
Tohru Mizushima, PhD
Chair of the Board of Directors/President/Chief Executive Officer