Carna Biosciences, Inc.

Business Details

Serving pharmaceutical companies, biotech ventures, universities and other customers, the business provides kinase protein sales (including mutant and biotinylated proteins), profiling services, NanoBRET™ Service and more. It specializes in the early stages of drug discovery research, supporting customers' drug discovery activities, and an important mission is to channel earned revenue to the Drug Discovery Business. The business operates globally across the US, Europe, China and other regions, capturing AI drug discovery companies and Chinese CROs as key customer segments.

Recent Overview

In Q1 FY2026 (ending March 2026), revenue was ¥183 million (up 28.1% year-on-year), and operating profit turned positive at ¥19 million

In Japan, protein sales to key customers performed well, and orders for profiling services and NanoBRET™ Service to pharmaceutical companies and biotech ventures expanded, resulting in a significant revenue increase of 104.3% year-on-year for the same quarter. In Europe, the company won a large profiling service order from a drug discovery biotech venture, driving growth of 167.7%. Protein sales to Chinese CROs were also strong, growing 54.4%. On the other hand, in the US, profiling orders from AI drug discovery companies temporarily declined, and large protein sales orders also decreased, resulting in a weak 37.1% decline. A new order from an AI drug discovery company won at the end of 2025 contributed to revenue in the current first quarter.

Key Products

Growth Drivers

• Expansion of orders for profiling services and NanoBRET™ Service to domestic pharmaceutical companies and biotech ventures
• Acquisition of a large profiling project from a European drug discovery biotech venture
• Continued strong kinase protein sales to Chinese CROs
• Profiling service orders from AI drug discovery companies (new project won at the end of 2025, contributing to revenue in Q1 FY2026)
• Meeting customer needs by strengthening the lineup of biotinylated proteins, mutant proteins, and Pseudo Kinase
• Improved customer convenience and promotion of product usage through individual sales of assay buffer/substrate and the "Kinase Assay Support Portal" (available in Japanese, English and Chinese)
• Differentiated competitive advantage as the only company able to provide the Mobility Shift Assay System

Risks

• Risk that the temporary decline in profiling orders from AI drug discovery companies in the US market continues
• Sharp decline in demand for protein sales and profiling due to major customers' shift in research phase (a decrease in large orders has become apparent in the US)
• North America revenue declined significantly, down 37.1% year-on-year for the same quarter, and recovery in the US market remains uncertain
• The profitability of the Drug Discovery Support Business is limited to Q1 alone, and stable profitability for the full fiscal year remains uncertain
• Information security risk related to ensuring confidentiality of customer information (information barrier management with the Drug Discovery Business is required)
• Foreign exchange risk (overseas revenue accounts for approximately 63% of consolidated revenue)