FRONTEO Launches “DDAIF Innovation Bridge” to Provide Scientific Support for Bio-Ventures Through Its AI-Driven Drug Discovery Support Service “Drug Discovery AI Factory”

Tokyo, Japan, February 12, 2026 - FRONTEO, Inc. (Headquarters: Tokyo, Japan; President & CEO: Masahiro Morimoto; hereafter “FRONTEO”) is launching a new initiative called “DDAIF Innovation Bridge,” which leverages its AI-driven drug discovery support service, Drug Discovery AI Factory (hereafter “DDAIF”) ^*1, designed to help domestic bio-ventures overcome the challenges they face in independently developing their drug discovery assets and advancing them toward commercialization.

Background and Challenges Behind the New Initiative

In recent years, as drug discovery research has become increasingly advanced and specialized, bio-ventures originating from proprietary technologies developed by universities and researchers have become increasingly important within the drug discovery ecosystem. At the same time, as companies are required to make decisions with an eye toward commercialization and out-licensing^*2 from the early stages of research and development, how quickly they can assess the value of early-stage drug discovery assets^*3 and advance them toward continued research and commercialization has become a critical issue in strengthening Japan’s drug discovery capabilities.

Bio-ventures commonly face two major challenges:

• Technical challenges in continuously generating drug discovery pipelines and enhancing their added value
• Funding challenges in advancing research and development

In response to these challenges, FRONTEO is launching a new initiative, “DDAIF Innovation Bridge,” which combines technical support through “DDAIF” during the research and development phase with financial support, including investment.

Through co-creation with bio-ventures, this initiative aims to maximize the efficiency of drug discovery pipeline R&D and to create pathways to successful out-licensing, while strengthening its drug discovery platforms.

What Is “DDAIF Innovation Bridge”?

“DDAIF Innovation Bridge” is a co-creation initiative in which FRONTEO, starting from hypothesis generation through its AI-driven drug discovery support service “DDAIF” — which excels in discontinuously discovering previously unreported relationships between diseases and target molecules — works jointly with bio-ventures to generate drug discovery assets and evaluate and validate drug discovery pipelines, thereby supporting future out-licensing activities.

By preventing research stagnation caused by limited research outcomes or funding constraints, the initiative aims to maximize pipeline value by flexibly incorporating additional validation, reassessment of research strategies, and expansion of indications (drug repositioning), thereby increasing the likelihood of success and expanding the range of options for achieving out-licensing.

Positioning Within FRONTEO’s Life Science AI Business (AI Drug Discovery Division)

“DDAIF Innovation Bridge” is positioned as a new value-creation and revenue-generation model that complements the company’s existing AI drug discovery business models:

• (Existing) Co-creation projects with major pharmaceutical companies (novel target molecule discovery for specific diseases, elucidation of disease and target molecule mechanisms of action, exploration of indication expansion, etc.)
• (Existing) In-house drug discovery research conducted in collaboration with academia, including domestic and international universities
• (New Initiative) Deployment of “DDAIF Innovation Bridge,” which provides scientific support — and financial support including investment where needed — to promising bio-ventures
  
  

PoC Results with NB Health Laboratory Co., Ltd.

In preparation for the launch of “DDAIF Innovation Bridge,” FRONTEO collaborated with NB Health Laboratory Co., Ltd. (hereafter “NBHL”) and used “DDAIF” to conduct a PoC (Proof of Concept) focused on: (1) strategic value enhancement of NBHL’s antibody therapeutics pipeline (including indication expansion), and (2) exploration of novel target candidates. The results confirmed the feasibility of continued project advancement and demonstrated meaningful market demand, leading to the decision to launch “DDAIF Innovation Bridge.”

(For reference: FRONTEO and NB Health Laboratory Reach a Basic Agreement on Joint Research in GPCR Antibody Drug Discovery, https://legal.fronteousa.com/resources/pr/20260212_02)

Overview of “DDAIF Innovation Bridge”

Through “DDAIF Innovation Bridge,” FRONTEO aims to overcome the cycle that arises from research and funding hurdles encountered before out-licensing is achieved, and to provide support that leads to the next step toward out-licensing.

Phase 1: Value Assessment and Validation Advancement

By leveraging “DDAIF” to strengthen mechanism-of-action hypotheses^*4 for existing drug discovery pipelines, the initiative aims to reduce research uncertainty, improve the probability of success, and accelerate research progress, while providing financial support (including investment) to advance validation and re-experimentation.

Phase 2: Strategic Advancement and Commercialization

Taking into account the research environment and competitive landscape, FRONTEO supports pipeline reassessment (including drug repositioning) and the redesign of new drug discovery strategies. Through co-creation with bio-ventures, FRONTEO will drive joint pipeline out-licensing and the development of platform businesses.

Future Plans

Through “DDAIF Innovation Bridge,” FRONTEO will enhance the global recognition and value of Japan-originated drug discovery innovation, increase both the number and success rate of out-licensing deals, and foster an environment that continuously generates drug discovery innovation. Guided by the vision of “Restoring Japan's position as a global hub for drug discovery,” FRONTEO is committed to contributing to the development of the drug discovery sector as a core industry in Japan, and to realizing a fair and equitable world in which the right medicines reach all patients with unmet medical needs.