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TOKYO – Sosei Group Corporation (TSE: 4565), a biopharmaceutical company, has disclosed its operational activities and consolidated results for the year ended December 31, 2023. The company, recognized for its GPCR-targeted StaR® technology and structure-based drug design, has reported a transformative year with significant strides in its operational capabilities and strategic growth initiatives.
In a notable development, Sosei Heptares received a landmark investment of approximately JPY 8 billion (~USD 54 million) from the new OPF1 fund operated by JIC Venture Growth Investments Co., Ltd., which, along with a share offering and convertible bond restructuring, aims to finance the company’s strategic growth initiatives, extend its debt maturity profile, and strengthen its financial base.
The company has also seen marketing approval for PIVLAZ® in South Korea for the prevention of cerebral vasospasm after subarachnoid hemorrhage and has submitted a New Drug Application in Japan for daridorexant, a novel insomnia treatment. These developments have contributed to the company’s revenue, with the latter bringing in JPY 1.5 billion recognized as revenue in Q4 2023.
Collaborative efforts with partners like Pfizer (NYSE:), Neurocrine (NASDAQ:), and Genentech have been fruitful, with new clinical trials initiated and milestone payments received, further bolstering the company’s research and development endeavors. Sosei Heptares has also made progress with technology companies such as Kallyope, Verily, and PharmEnable Therapeutics to advance therapeutic discovery programs.
The acquisition of Idorsia Pharmaceuticals Japan Ltd and Idorsia Pharmaceuticals Korea Co., Ltd has been a transformational step for Sosei Heptares, enhancing its commercial operations in Japan and the Asia-Pacific region. The inclusion of these entities has brought experienced teams and added the rights to two medicines with significant growth potential.
Financially, the company reported a decrease in revenue to JPY 12,766 million (US$90.8 million), primarily due to fewer partnership agreements and milestone events compared to the previous year. Research and development expenses increased to JPY 10,075 million (US$71.7 million), reflecting investment in discovery activities and the impact of a weaker Yen. General and administrative expenses also rose to JPY 9,965 million (US$70.9 million), mainly due to non-recurring M&A related costs.
The operating loss for the year was JPY 9,526 million (US$67.8 million), compared to a profit the previous year, largely due to the factors mentioned above. The net loss for the year ended December 31, 2023, was JPY 7,193 million (US$51.2 million). Despite these losses, the company’s cash and cash equivalents stood at JPY 49,065 million (US$347.9 million).
Sosei Heptares’ report reflects a year of strategic expansion and investment in its core technology and product pipeline, setting the stage for accelerated development in 2024. The information in this article is based on a press release statement from Sosei Group Corporation.
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