PRISM BioLab Co.,LTD
206A・Growth Market・Pharmaceuticals
Business
PRISM BioLab Co., Ltd. is a biotech venture that develops new drugs targeting intracellular protein-protein interactions (PPIs), which have historically been difficult to control with conventional small-molecule or biologic drugs, centered on its proprietary peptide-mimetic small-molecule technology, "PepMetics technology." Founded in 2006, the company listed on the TSE Growth Market in July 2024. It concurrently pursues out-licensing of its proprietary programs to Eisai and Ohara Pharmaceutical (currently in Phase II clinical trials) and joint development businesses with major global pharmaceutical companies such as Merck KGaA, Boehringer Ingelheim, Roche/Genentech, and Ono Pharmaceutical. Its main customers are major domestic and international pharmaceutical companies, and its primary battleground is the oncology and fibrosis fields, which have high unmet medical needs.
Business Model
The revenue model rests on two pillars: the "in-house drug discovery business" and the "collaborative drug discovery business." In the in-house business, the company advances programs at its own expense from drug target selection through lead optimization, then out-licenses them to pharmaceutical companies to earn upfront payments, milestones, and royalties—a high-risk, high-return approach. In the collaborative business, the company uses its PepMetics technology to generate hit compounds against targets provided by partner pharmaceutical companies, earning collaborative research revenue, milestones, and royalties—an approach oriented toward early monetization. By combining both models, the company pursues stable revenue and large-scale returns simultaneously.
Company Strengths
Approved intracellular PPI (protein-protein interaction) inhibitor drugs remain limited to just 3 examples worldwide, whereas PepMetics technology combines over 40 types of scaffolds with over 50 types of amino acid side chains, theoretically enabling the design of more than 250 million compounds. The company holds an actually synthesized library (R-Library) of over 20,000 compounds, and its competitive advantage is grounded in the fact that these compounds possess natural-product-like three-dimensional structures.
In addition to Eisai and Ohara Pharmaceutical (self-originated), the company has a track record of contracts with a total of 7 companies, including Merck KGaA, Boehringer Ingelheim, Roche/Genentech, Ono Pharmaceutical, and Lilly (terminated). The total contract value with Eisai, including upfront payments, milestones, and research funding, exceeds ¥25.0 billion. In November 2025, a milestone at the drug discovery research stage was achieved through joint research with Ono Pharmaceutical, adding to the accumulating external validation of the technology.
As of the end of September 2025, 39 people were employed in the R&D department. By combining full-scale operation of HTS (high-throughput screening) using PPI evaluation systems, establishment of biophysical methods through X-ray crystallography, and AI utilization through a business alliance with Elix, Inc. (construction and practical application of ADMET prediction models), the company has built a system capable of completing the entire drug discovery process in-house, from target exploration through to in vivo efficacy evaluation.
ENVALITH's Perspective
Performance Trend
Net sales for the first half (cumulative) of FY2026 (ending September 2026) were ¥253 million (up 15.8% year on year). The main revenue sources were the achievement of the initial milestone with Ono Pharmaceutical and receipt of joint research fees. Meanwhile, R&D expenses surged to ¥456 million (up 55.0% year on year), and total selling, general and administrative expenses expanded to ¥667 million (up 30.2% year on year). Operating loss widened to ¥585 million (versus ¥460 million in the same period last year), and interim net loss expanded to ¥603 million (versus ¥474 million). On the financial front, total assets stood at ¥2,586 million with an equity ratio of 81.8%, maintaining financial soundness. The company held cash and deposits of ¥2,454 million (including ¥1,500 million in time deposits with maturities exceeding three months), securing near-term operating funds, but operating cash flow remained negative at ¥463 million outflow, making acceleration of monetization an urgent priority. Comparing with past results, net sales were ¥306 million with an operating loss of ¥782 million in FY2024, and net sales were ¥677 million with an operating loss of ¥774 million in FY2025; the widening loss on a first-half basis reflects more aggressive R&D investment.
Growth Strategy
Aiming for continuous out-licensing revenue through dual expansion of proprietary and joint development businesses and broadening the application scope of PepMetics technology
The company conducts 10 screenings per year using an in-house integrated system combining HTS with SPR and computational chemistry analysis. In the interim period, 4 new programs were initiated, and hit compounds were successfully created for 2 of them, advancing to the "lead compound exploration" stage. Additional new programs are planned to be launched sequentially in the second half.
Starting from this fiscal year, the company has launched a new business in which hit compounds discovered at the "hit compound exploration" stage of its proprietary development business are used as the basis for joint research with pharmaceutical companies or out-licensing at the hit compound stage. The company aims to initiate 1-2 joint development programs with new partners.
Eisai is proceeding with patient enrollment into the dose optimization part (Phase II), with topline data expected to be obtained during FY2026 (through March 2027). Eisai has publicly announced a target of obtaining approval by March 2031 for the endometrial cancer indication. At ESMO in October 2025, an overall response rate of 36.7% (57.1% in patients without prior Lenvima® treatment) was confirmed.
For PRI-724, whose rights have been licensed to Ohara Pharmaceutical, patient enrollment has been completed for the cohort targeting MASH at 38 domestic sites. The trial is proceeding toward its planned conclusion in December 2027. The Phase II trial targeting liver cirrhosis caused by hemophilia with concurrent HIV/HCV co-infection was already completed in December 2025.
In addition to conventional intracellular PPI targets, the company is expanding the potential of PepMetics technology by adding diverse targets such as mechanisms that inhibit kinases (phosphorylating enzymes) via PPI and membrane proteins, which have traditionally been considered difficult targets, thereby aiming to create new partnership opportunities.
Last updated: July 17, 2026