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Management policy

Risk Factors

TRANS GENIC Group identifies the items listed below as potential risk factors that could affect operating results.

(1) Mergers and Acquisitions

TRANS GENIC identifies mergers, acquisitions, and capital or business partnerships as an important part of the its strategy to expand the business field. We make a detailed investigation of target companies preliminary, including business contents, financial conditions and business connections, and consider the potential risks sufficiently. However, in cases where an anticipated problem occurs, or desired effect is not achieved by alteration in business environment, or impairment accounting is executed, it could affect TRANS GENIC’s operating results and financial position.

(2) Technical innovations

In the biotechnology industry fields with which TRANS GENIC is associated, the landscape regarding the technologies is evolving rapidly. Technical innovation may change the market environment or reduce our technological advantages over other companies. Such circumstances may lead to adverse impact on the Group's business performance.

(3) Pharmaceutical industry trend

CRO Business’s revenue is highly dependent on the contract-based non-clinical/ clinical test service with pharmaceuticals companies. Therefore, the trend in pharmaceutical industry may affect TRANS GENIC’s operating results and financial condition.

(4) Relationship with public research institutes and universities

TRANS GENIC Group promotes and implements collaborative research with public research institutes and universities, such as Kumamoto University, in order to introduce and transfer new technologies. The relationship between public institutions and companies may be affected by legal amendment or organizational change. The business strategy and performance of TRANS GENIC Group may be affected in the event that the direction of the collaborative research or the relationship with other organizations are compelled to be changed.

(5) Patents and other intellectual property rights

Claims and litigations relating to intellectual property rights
There is no claim and litigation so far over intellectual property rights related to the Group business (as of March 2019). TRANS GENIC requests the patent firm from a patent survey in order to prevent patent infringement when starting new business. Therefore, we consider our business is unlikely to have adverse impact by the patent infringement.

(6) Legal regulations

①Laboratory animals
From the perspective of animal protection, the regulations to prohibit laboratory animals are considered to be introduced in Europe and the United States, especially in Europe. If such regulations are introduced in Japan, laboratory animal market will stagnate, and lead to material impact on the laboratory animal-relating service in TRANS GENIC's CRO Business.
②Gene recombination
TRANS GENIC complies with the law and regulations that stipulate the handling of gene transfection, such as "Guidelines for Industrialization of Recombinant DNA Technology" and "Act on the Conservation and Sustainable Use of Biological Diversity through Regulations on the Use of Living Modified Organisms". The business performance of TRANS GENIC Group may be affected in the event that such regulations are strengthened.

Management policy

To Our Shareholders
To Our Shareholders

Message to investors from CEO.

Corporate Governance
Corporate Governance

TransGenic's corporate governance.

Business-Related and Other Risks
Business-Related and Other Risks

TransGenic's business-related and other risks.

Disclosure Policy
Disclosure Policy

TransGenic's disclosure policy.

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