In January 2017, D. Western Therapeutics Institute, Inc. (DWTI) acquired a business (DW-1002) from other company for the first time in our company's history. This was followed by DWTI entering into an overseas option agreement on H-1129 in February, launching a late phase II clinical trial in Japan in August and beginning an investigator-initiated clinical trial for DW-1002 (domestic phase III clinical trial) in October. This set of steps made the year eventful compared with an usual year. DW-1002, being already on the market in Europe as an ophthalmic surgical adjuvant, is a highly-promising drug that will likely be marketed going forward in Japan and the U.S. Although we recorded for fiscal 2017 a partial impairment of the purchase cost for the DW-1002 business, the development has been going on steadily as previously outlined. We will continue developing this drug as a platform pipeline with high business value.
DWTI’s business promotion goals are to expand its pipeline and business domain. In line with these goals, we made Japan Innovative Therapeutics, Inc. ("JIT") into a consolidated subsidiary in 2015 and initiated the development of H-1337 in the U.S. in 2016 before acquiring the DW-1002 business in 2017.
For 2018, we will continue to enhance our business platform by raising the quality and quantity of our pipeline in conformity with the above-mentioned goals. We will focus on H-1129, H-1337 and DW-1002 in particular as our significant pipeline products.
Uncertainty of the new drugs development increases year by year. In such situation, our technical strength of the basic research of new drugs as feature of our company is useful extremely, our company need to more exert our technical strength. To exert our technical strength, we will continuously make a strong effort to “increasing the pipelines” and “expanding the business area”. And, as a result, we will tackle on the improvement of our profitability and securement of revenue source.
We will maintain our philosophy of “innovative new drugs to the world from Japan” and will continue developing our business toward creation of additional new enterprise value to answer the shareholders and other stakeholders expectations, while emphasizing the basic study division where our strength lies.
In this context, we would appreciate very much the continued support to us by the shareholders and other stakeholders.
President and CEO Yuichi Hidaka