Bridge Report on CellSeed -Japan's Leading Regenerative Medical Company- Issued: Reviewing Its First Half FY12/10 Earnings

TOKYO--(BUSINESS WIRE)-- Investment Bridge, one of Japan's leading IR services companies, releases a "Bridge Report" on CellSeed Inc. (JASDAQ NEO:7776) reviewing its first half fiscal year December 2010 earnings.

CellSeed Inc., Japan's leading regenerative medical company, recently announced that losses were lower than expected despite weaker than expected sales during the first half of the current term. At the same time CellSeed maintained its outstanding estimates for the full year, which call for sales growth of 21.7% year-over-year to 106 million yen and recurring losses of 1.2 billion yen.

CellSeed is currently developing several different treatments based on its revolutionary technology called "cell sheet regenerative medicine," which uses the patient's own cells for cultivation in "cell cultureware" developed by CellSeed to be used as regenerative "cell sheets" to repair damaged tissues and organs. These treatments are highly unique because they are safe and they overcome various ethical issues by using the patient's own cells. Among the treatments currently being developed are corneal regeneration epithelial cell sheet, regenerated cardiac patch, esophageal regeneration epithelial cell sheet, periodontal tissue regeneration cell sheet, and regenerated cartilage sheet. Currently these treatments are at the clinical research and clinical trial stages, and are expected to be submitted for medical approval within the coming years. Therefore CellSeed is expected to incur operating losses until fiscal year December 2012, but funds sourced during the Company's public offering earlier this year are expected to cover operating costs until it achieves profitability.

During the first half of the current fiscal year, sales fell below expectations due to delays of large project deliveries to parties jointly conducting research and weaker than expected sales in Europe. At the same time, lower than expected sales were offset by lower variable costs due to delays in the occurrence of research expenses associated with corneal regeneration treatment, which pushed them into the second half and contributed to lower than expected losses.

  1H-FY12/11   1H-FY12/10   YoY Change   FY12/09   FY12/10   YoY Change
  Estimates Results Results Estimates
Sales 53 22 -58.4% 87 106 21.7%
Operating Income -818 -548 - -785 -1,456 -
Recurring Income -580 -346 - -788 -1,218 -
Net Income   -582   -351   -   -790   -1,222   -

Of the various treatments currently being tested, corneal regeneration epithelial cell sheet is currently being prepared for submission for medical approval and is likely to become the first commercially launched treatment. During fiscal year December 2012, CellSeed projects sales of 1.85 billion yen and recurring income of 24 million yen.

Projections   FY12/10   FY12/11   FY12/12
Sales 106 534 1,853
Operating Income -1,456 -806 3
Recurring Income -1,218 -786 24
Net Income   -1,222   -790   18

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About CellSeed

CellSeed is the leading company in the field of regenerative medicine and uses a highly unique and leading-edge technology called "cell sheet engineering," which uses the patient's own cultivated cells to repair damaged tissues and organs. CellSeed seeks to promote the worldwide diffusion of "cell sheet regenerative medicine" to treat patients who previously could not be effectively treated using traditional medical treatments.

About Bridge Report

Bridge Report is produced by Investment Bridge Co., Ltd. and provides accurate and objective information about the earnings, business strategies, and other information of publicly traded Japanese companies. Investment Bridge was founded in August 2000 and is one of Japan's leading independent IR support services companies. Investment Bridge specializes in providing various solutions to Japan's publicly traded companies with the goal of expanding our clients' shareholder base and liquidity through increased recognition and understanding of companies.


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KEYWORDS:   Asia Pacific  Japan

INDUSTRY KEYWORDS:   Stem Cells  Health  Biotechnology  Cardiology  Dental  Optical  Medical Supplies