Notice of Revised FY2022 Half Year Earnings Forecast

On August 9, 2022 Kureha Corporation reported that it has upgraded its earnings forecast for the first half-year of FY2022 ending March 31, 2023, in light of the recent performance trends. Changes from the previous forecast, which was announced on May 12, 2022, are as follows (Press release, Kureha Corporation, AUG 9, 2022, View Source [SID1234617845]).

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1. FY2022 2Q Earnings Forecast (April 1, 2022 through September 30, 2022)(Reasons for the revision)

For the first six months of FY2022, revenue is expected to exceed the previous forecast due to effects of a weaker Japanese yen and strong pricing actions against energy and raw material cost inflations, in addition to higher Specialty Chemicals volumes resulting from a front-loaded shipment of agrochemicals. Operating profit will also rise due to increased sales of high-margin products and the postponement in spending SG&A expenses to the latter half of the year. Subsequently, profit before taxes and profit attributable to owners of Kureha Corporation are projected to exceed the forecasts.

Kureha will also update and release its FY2022 full-year earnings forecast, reflecting changes in the business conditions, when it reports 2Q results (scheduled for November 9, 2022.)

Note: The statement regarding the above-mentioned forecast is based on current information acquired by Kureha Corporation as of the date of this announcement. Actual results may differ from these forecasts due to various unforeseeable factors.

FY2022 1Q Summary

On August 9, 2022 Kureha Corporation reported that Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023 (Press release, Kureha Corporation, AUG 9, 2022, View Source [SID1234617844])

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1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023 (From April 1, 2022 to June 30, 2022)
(1) Consolidated Operating Results
(2) Consolidated Financial Position2. Dividends

2. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2023 (From April 1, 2022 to March 31, 2023)

* This quarterly financial summary is outside the scope of review by certified public accountants or audit corporations. * Note to ensure proper use of financial forecasts, and other noteworthy matters All forecasts and forward-looking statements in this report are based on information currently available to the Company and assumptions that are deemed to be reasonable, but Kureha Corporation does not guarantee the achievement of these forecasts. Actual results may differ significantly as a consequence of numerous factors. For more information regarding the assumptions and terms the Company applied when formulating earnings forecasts and precautions that should be taken when utilizing these earnings forecasts, please refer to "(3) Outlook for the Fiscal Year Ending March 31, 2023 and beyond" included under the section "1. Overview of Operating Results and Outlook" on page 3 of the attached document.

Notice of Revised FY2022 Half Year Earnings Forecast

On August 9, 2022 Kureha Corporation reported FY2022 1Q Results (Press release, Kureha Corporation, AUG 9, 2022, View Source [SID1234617843])

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FY2022 1Q Results
YoY: Delivered strong revenue and profit growth driven by broad-based pricing actions for advanced plastics and volume gains in Advanced Materials, more than offsetting higher fuel and raw material costs and increased SG&A expenses in Specialty Chemicals and Specialty Plastics

QoQ: Both revenue and profit up sequentially due primarily to expanded PVDF and agrochemicals sales and seasonal demand for home products, coupled with the absence of impairment losses recorded in 4Q/FY21

FY2022 2Q(Half-year) Outlook Vs. FY21 2Q: Projecting top and bottom line growth as Advanced Materials sales continue to expand, partially offset by inflationary impacts on Specialty Chemicals and Specialty Plastics and slower environmental businesses related to industrial waste treatment. 2Q profit growth likely to slow down verses 1Q with further impacts of surging energy and raw material prices. Vs. Initial forecast: Upgrading 2Q forecast to reflect limited impact of presumed risks seen during 1Q; expected revenue expansion led by a weaker Japanese yen, higher prices and higher agrochemical sales volumes (a front-loaded delivery); and spending of SG&A expenses postponed to 3Q-4Q

*Kureha will continually monitor the impact of potential risks and announce its updated full-year forecast based on changes in the business conditions when reporting 2Q results.

FY2022 1Q Summary

(1) (in billions of yen) • Revenue growth led by advanced plastics, particularly PVDF binder for lithium-ion batteries • Higher core operating profit driven by strong gains in advanced plastics • Operating profit increased as a result of higher core operating profit • Profit attributable to the Company increased as a result of higher profit before taxesAdvanced plastics Revenue up, profit up:-Continued strong demand for PVDF in the automotive LiB market-higher PPS and PGA sales volumes Carbon products Revenue and profit leveled off:-Sales volumes of carbon fiber used for highheat furnace insulation and automotive sliding materials on par with prior yearAgrochemicals & Pharmaceuticals Revenue up, profit down:-Higher fungicides volumes-Decreased sales volume of Kremezin, a therapeutic agent for chronic kidney failures Industrial chemicals Revenue up, profit down:-Improved sales volumes of organic and nonorganic chemicals-Higher raw material and fuel costs

Clarity and Evergreen expand Targeted Copper Theranostics manufacturing

On August 9, 2022 Clarity Pharmaceuticals (ASX: CU6) ("Clarity"), a clinical-stage radiopharmaceutical company developing next-generation products to address the growing needs in oncology, and Evergreen Theragnostics, Inc. ("Evergreen"), a radiopharmaceutical contract development and manufacturing organisation, reported that the companies have expanded their Targeted Copper Theranostics (TCTs) manufacturing agreement to include next-generation therapeutic products based on 67Cu SAR-Bombesin for Clarity’s planned theranostic trial in the US (Press release, Clarity Pharmaceuticals, AUG 9, 2022, View Source [SID1234617840]).

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The new agreement, effective as of today, builds on Clarity and Evergreen’s existing TCTs manufacturing agreement, entered into on 30 September 2021. Evergreen will now centrally manufacture and distribute the following products from its state-of-the-art facility in Springfield, New Jersey, USA:

67Cu and 64Cu SAR-Bombesin for Clarity’s planned theranostic trial in PSMA-negative GRPr-positive prostate cancer in the US
64Cu SAR-Bombesin for Clarity’s stand-alone diagnostic trial in PSMA-negative GRPr-positive prostate cancer in the US
67Cu SARTATE for Clarity’s theranostic neuroblastoma trial which is currently underway at multiple sites across the US
Evergreen’s CEO, James Cook, commented, "We are pleased to continue working together with Clarity on the manufacturing and supply of the TCT platform of products as they enter new, exciting trials in the US. TCTs are uniquely suited for central manufacture with optimal shelf-lives for distribution across North America and utilise a simple room-temperature manufacturing process. We look forward to enhancing patient access to these innovative radiopharmaceuticals together with Clarity and are excited to support the roll-out of the next-generation clinical development program with the common goal of improving treatment outcomes for children and adults with cancer."

Clarity’s Executive Chairman, Dr Alan Taylor, commented, "Clarity is excited to be progressing the TCT platform with our third therapeutic product, 67Cu SAR-Bombesin. We plan to file an Investigational New Drug (IND) application with the US Food and Drug Administration (FDA) for a trial with this product shortly. SAR-Bombesin is a promising agent for identification and treatment of prostate cancers that do not express PSMA and are thus ineligible for PSMA-based imaging and therapy, a segment with a high unmet need.

"We have experienced strong demand from clinicians in Australia for the diagnostic product already. Both human trial data as well as recently published preclinical data demonstrate high retention in tumour and rapid clearance from non-target organs over 24 hours, which supports the development of SAR-Bombesin as a therapy. We continue to enhance our reliable and scalable manufacturing and logistics footprint for our TCT products together with Evergreen as we further progress our clinical development efforts in the US," said Dr Taylor.

About SAR-Bombesin
SAR-Bombesin is a highly targeted pan-cancer radiopharmaceutical with broad cancer application. It targets the gastrin-releasing peptide receptor (GRPr) present on cells of a range of cancers, including but not limited to prostate, breast and ovarian cancers. GRPr is found in approximately 75-100% of prostate cancers, including prostate cancers that don’t express PSMA (PSMA-negative)1-5. The product utilises Clarity’s proprietary sarcophagine (SAR) technology that securely holds copper isotopes inside a cage-like structure, called a chelator. Unlike other commercially available chelators, the SAR technology prevents copper leakage into the body. SAR-Bombesin is a Targeted Copper Theranostic (TCT) that can be used with isotopes of copper-64 (Cu-64 or 64Cu) for imaging and copper-67 (Cu-67 or 67Cu) for therapy.

About Prostate Cancer
Prostate cancer is the second most common cancer diagnosed in men globally and the fifth leading cause of cancer death worldwide6. The National Cancer Institute estimates in 2022 there will be 268,490 new cases of prostate cancer in the US and around 34,500 deaths from the disease7.

DEFENCE THERAPEUTICS RECEIVES U.S. PATENT COVERING ITS ADC PLATFORM TECHNOLOGY

On August 8, 2022 Defence Therapeutics Inc. ("Defence" or the "Company"), a Canadian biopharmaceuticals company primarily focussed on the development of novel immune-oncology vaccines and drug delivery technologies including Antibody Drug Conjugate ("ADC"), is pleased to reported that the United States Patent and Trademark Office (USPTO) has granted Defence Therapeutics Inc. the U.S. patent no. 11,352,437 (Press release, Defence Therapeutics, AUG 8, 2022, View Source [SID1234626252]).

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This new patent covers conjugated compounds permitting delivery of antibodies to the nucleus through the Company proprietary technology AccumTM. AccumTM isthe firstsolution for precision delivery method for improved intracellular antibody drug conjugate ("ADC") routing. Overcoming problematic cell recycling and rejection patterns, Accum enables ADCs to control intracellular delivery of chemotherapeutic drugs, resulting in superior preclinical antitumor activity. By increasing the tumor targeting specificity – due to increased drug accumulation – non-specific toxicity in healthy cells is greatly reduced.

"This US patent is an important milestone in protecting the commercial potential of AccumTM directly related to our ADC program. Defence is expecting key ADC in vivo results in a few weeks from independent ADCs studies ongoing in Europe. Defence’s commitment to protect the innovation is crucial as its ADC development and ADC interest applied in oncology is advancing rapidly", says Mr. Plouffe, the CEO of Defence Therapeutics.

According to Precedence Research Predicts, the global oncology market size is expected to worth around US$ 536.01 billion by 2029 from valued at USD 286.04 billion in 2021 and growing at a CAGR of 8.2% from 2021 to 2030. Oncology is a branch of medicine that deals with the prevention, diagnosis, and treatment of cancer. Cancer is a leading cause of death worldwide, accounting for nearly 10 million deaths in 2020, or nearly one in six deaths. Rising concern about the cancer and patient is one of the major factors driving the market for oncology market.

The global antibody drug conjugates market size is expected to reach over USD 22.87 billion by 2030, registering a CAGR of 16.4% during the forecast period, according to a recent 2022 report by Grand View Research Inc. The presence of strong pipeline products and strategic initiatives undertaken by the key players are expected to drive the market growth during the forecast period.