Kidswell Bio Corporation · TSE:4584
Kidswell Bio — FY2023 Earnings Presentation
24 slides from Kidswell Bio's earnings presentation, May 14, 2024
Slide 1: Financial Results for FY 2023
Biotech Striving for Value Creation - For a Comprehensive Healthcare System for Children, Families, and Society - Security Code: 4584 Financial Results for FY 2023 (Fiscal Year Ending March 31, 2024) May 14, 2024 Kidswell Bio Corporation © 2024 Kidswell Bio Corporation. 1
Slide 2: Agenda
◆ Financial Highlights ◆ Biosimilars (BS) Business Highlights Agenda ◆ Overview and Progress of S-Quatre ◆ Growth Strategy © 2024 Kidswell Bio Corporation. 2
Slide 3: Financial Highlights
Financial Highlights © 2024 Kidswell Bio Corporation. 3
Slide 4: Income statement
Income statement (Unit: thousand yen) FY2022 FY2023 FY2024 Subject 4Q Results 4Q Results Progress Year-on-year ratio Full Year Forecast (non-consolidated) (non-consolidated) rate Gross sales 2,776,241 2,431,236 88% 2,650,000 92％ Cost of goods sold 1,250,553 1,391,852 111% -- -- Gross profit 1,525,68
Slide 5: Balance sheet
Balance sheet (Unit: thousand yen) Subject 4Q FY2022 (non-consolidated) 4Q FY2023 (non-consolidated) Current assets 3,697,155 4,924,221 (Cash and cash equivalents) 1,067,162 2,231,411 (Accounts receivable) 1,088,766 881,407 (Products) 213,007 -- (In-process inventory) 422,308 875,654 (Advance paymen
Slide 6: Business forecast for FY2024
Business forecast for FY2024 (Unit: thousand yen) FY2023 FY2024 Subject 4Q (non-consolidated) Full-year forecast (consolidated) Progress rate Net sales 2,431,236 3,500,000–4,500,000 +43.9％–85.0％ R&D expenses 1,453,349 -- -- Operating income (- means operating loss) -1,335,597 -- -- Ordinary income (
Slide 7: Biosimilars Business Highlights
Biosimilars Business Highlights © 2024 Kidswell Bio Corporation. 7
Slide 8: Fundamental business generating stable revenues
Fundamental business generating stable revenues • KWB accumulated experience and know-how and promoted HR development in biopharmaceuticals, the mainstream of global pharmaceutical companies, while many Japanese pharmaceutical companies focused on small molecule drugs • Launched all four biosimilars
Slide 9: Impact of foreign exchange fluctuations
Impact of foreign exchange fluctuations • The rapid depreciation of the yen following the approval of GBS-007 has significantly reduced its profitability • With the newly launched GBS-010 added to the product mix, a 10 yen change in the exchange rate would affect our profit by approx. 0.5 billion ye
Slide 10: Impact of inflation on business performance
Impact of inflation on business performance • Global price increases have driven up the cost of labor, supplies and raw materials required to manufacture biosimilars, resulting in lower profitability for the biosimilar business • Although the pace of price increases is expected to slow, the impact o
Slide 11: Improve profitability of BS business
Improve profitability of BS business • Improve profitability by reducing manufacturing costs • Build a revenue base that can withstand changes in the external environment Profitability decrease due to Managing the risk of declining profitability due to NHI drug pricing system external factors Annual
Slide 12: Biosimilars business growth and future outlook
Biosimilars business growth and future outlook • Further revenue growth is expected due to approval of the additional indication for GBS-007 and the launch of GBS-010 in September 2023 Billion yen Biosimilars Business Sales Initial sales forecast for FY2023 5.0 (3.5 billion yen) expected to be 4.5 e
Slide 13: New BS development and future business strategy
New BS development and future business strategy • Competitive and viable BS candidates selected. Ongoing discussions with several potential co-development partners. • Ongoing business model transformation to achieve efficient and sustainable growth with limited resources by maximizing our expertise
Slide 14: Company Profile and Business Progress
Power of child’s stem cells to fight incurable diseases Company Profile and Business Progress S-Quatre Corporation A Group Company of Kidswell Bio Corporation © 2024 S-Quatre Corporation.
Slide 15: Mission of the new company S-Quatre
Mission of the new company S-Quatre "Create New Cell Therapies for Intractable Diseases with the Power of Child's Stem Cells" Cerebral palsy Congenital Isolated Name S-Quatre Corporation (chronic) Hypoganglionosis Head 1-2-12 Shinkawa, Chuo-ku, Tokyo office Location Sapporo Lab (in Hokkaido Universi
Slide 16: S-Quatre: SHED Source Supply Service
S-Quatre® : SHED Source Supply Service An integrated system from the recruitment of deciduous tooth donors to master cell bank manufacturing General health check and Master cell bank manufacturing tooth extraction from donors under GMP standards The University of Tokyo Hospital Nikon CeLL innovation
Slide 17: SQ-SHED development pipeline
SQ-SHED development pipeline Stage Indication Partner Discovery Pre-Clinical Clinical Cerebral palsy (chronic) Nagoya University Development code: GCT-103 Tokyo Medical and Dental University Congenital Isolated SQ-SHED Mochida Pharmaceutical Co., Ltd. Hypoganglionosis Bone diseases Hokkaido Universi
Slide 18: Development status of SQ-SHED for cerebral palsy
Development status of SQ-SHED for cerebral palsy Ongoing discussions with potential partners to finalize an agreement in FY2024 Autologous SHED Establish Approved by Clinical Research • Manufacture SHED manufacturing the (Nagoya University) from the patient's and Regenerative own deciduous teeth adm
Slide 19: Growth Strategy
Growth Strategy © 2024 Kidswell Bio Corporation. 19
Slide 20: Initiatives to enhance corporate value
Initiatives to enhance corporate value Maximize corporate value, drive stock price recovery and business growth 1. Focus resources 2. Optimize financing options 3. Visualize business value ✓ Concentrate resources on ✓ Execution of loans from ✓ Improve disclosure system for biosimilars and cell thera
Slide 21: Maximizing the corporate value of KWB
Maximizing the corporate value of KWB Increase corporate value with our partners as a BS development partner with a proven track record and a global leader in SHED drug discovery Kidswell Bio S-Quatre Biosimilars Business Cell Therapy Business • Maximize revenues from the • Out-license SHED to partn
Slide 22: IR schedule for FY2024 (tentative)
IR schedule for FY2024 (tentative) IR Basic Policy • Improve communication with shareholders and investors to enhance their understanding of KWB and enable them to evaluate KWB appropriately • Improve the quality of the information provided instead of simply providing frequent briefings 1Q 2Q 3Q 4Q
Slide 23: KIDS WELL, ALL WELL
KIDS WELL, ALL WELL All for Kids, Kids for All © 2024 Kidswell Bio Corporation. 23
Slide 24: Cautionary Statement
Cautionary Statement This information material is provided for understanding Kidswell Bio Corporation (“KWB”), not for soliciting investment in KWB shares. Information provided in this material may contain so-called “forward-looking statements.” These statements are based on current expectations, fo