FRONTEO and NB Health Laboratory Reach a Basic Agreement on Joint Research in GPCR Antibody Drug Discovery

(1) Joint research to explore new indications and license out existing NBHL pipelines
(2) Joint research for discovery and development of new antibody therapeutics pipelines

Both companies conducted a proof-of-concept (PoC) experiment^*2 starting in August 2025 to create a new antibody therapeutics pipeline targeting G protein-coupled receptors (GPCRs)^*3 using FRONTEO's AI-driven drug discovery support service, “Drug Discovery AI Factory (DDAIF)”^*4.

Through this PoC, synergies were confirmed between “FRONTEO's AI analysis technology, which visualizes unknown relationships between target molecules^*5 and diseases to build hypotheses” and “NBHL's deep expertise in antibodies and proprietary antibody acquisition technology.” Consequently, both companies agreed to further develop their collaborative relationship, aiming to deliver an antibody therapeutic pipeline by the end of fiscal year 2026.

PoC Verification Content and Results

Drug discovery research and development is generally characterized by a remarkably low probability of success. Therefore, to enhance R&D efficiency, “identification of promising target candidate molecules during the target discovery screening phase” and “generating and evaluating the validity of abundant hypotheses, including mechanism inference” are critically important.

Pharmaceuticals targeting GPCRs in particular have a proven track record of numerous successful developments and are positioned as promising target molecules. On the other hand, the combinations of GPCRs and diseases are diverse, and extensive areas remain where the relevance is still unclear. The ability to explore target molecules in these unknown areas early on and advance research and development based on hypotheses significantly influences the outcomes of drug discovery research and the potential for commercialization.

In this PoC, we combined NBHL's antibody discovery technology with FRONTEO's AI analysis technology to validate the effectiveness of the hypothesis generation and verification process in creating GPCR antibody therapeutics.

As a result, it demonstrated the potential to efficiently achieve “enhancing value through strategic repositioning of NBHL's existing pipelines” and “creating new pipelines.”

Based on the insights gained from this PoC, both companies are advancing their collaboration toward establishing a drug discovery process that focuses on commercialization from the exploratory stage.

Future Initiatives in Joint Research

Based on the results of this PoC, both companies will proceed with the following initiatives through joint research.

Expansion of Therapeutic Indications and Out-Licensing^*6 Opportunities for NBHL's Existing Pipeline (Joint Research (1))

Using FRONTEO's AI analysis technology, we have selected new candidate indications for NBHL's existing pipeline based on both scientific and market potential. Moving forward, we will advance efficacy evaluations through in vitro^*7 and in vivo^*8 testing, along with safety assessments for clinical trials, aiming for an out-licensing to a pharmaceutical company as early as fiscal year 2026.

The basic agreement for this initiative is that intellectual property, rights, and licenses will be jointly held by both companies.

Should an out-licensing be realized, FRONTEO anticipates the potential to receive an upfront payment in the tens of billions of yen as a lump sum upon contract signing as early as fiscal year 2026. Additionally, FRONTEO expects the potential to receive additional payments totaling hundreds of billions of yen at milestones such as development progress, product commercialization, and sales commencement.

Should monetization through licensing occur, the business model will generate revenue incrementally as development and sales progress*.

*The potential for the above revenue is contingent upon achieving licensing and development milestones, and the timing of revenue recognition may vary based on actual development status and contract terms.

Discovery and Development of New Antibody Therapeutics Pipeline (Joint Research (2))

This joint research initiative aims to develop a pipeline of novel antibody therapeutics based on insights gained from the PoC study, and to develop new antibodies through the analysis results of the joint research. Furthermore, using a similar framework, we will pursue the business development of a joint drug discovery model that integrates the technologies of FRONTEO and NBHL to create pipelines of novel antibody therapeutics targeting various diseases.

The Significance and Challenges of GPCRs in Drug Discovery

GPCRs are a group of receptors that transmit extracellular signals into cells. Due to their deep involvement in disease onset and progression, they are considered important target molecules in drug discovery. In fact, approximately 30-40% of marketed drugs target GPCRs, making them indispensable in pharmaceutical development.

However, GPCRs have complex structures and are difficult to stabilize. Their development as antibody therapeutics, in particular, presents significant technical challenges, making them a major longstanding challenge in drug discovery.

NBHL Technical Features

NBHL is engaged in antibody discovery targeting GPCRs, utilizing its proprietary antibody discovery platform “MoGRAA^*9” as its core technology.

MoGRAA is characterized by its high selectivity even for GPCRs with complex structures and its ability to generate antibodies capable of controlling their function. The company continuously generates multiple antibody pipelines by either independently developing or introducing external elemental technologies that address multiple technical challenges in GPCR antibody discovery.

Currently, several pipelines are undergoing evaluation by pharmaceutical companies, including overseas partners. In GPCR antibody drug discovery, hypothesis setting and indication selection during the early drug discovery phase significantly impact research success and commercialization. Therefore, accelerated research through collaboration between the two companies is anticipated.

Comment from Hiroyoshi Toyoshiba, Director/Chief Science Officer (CSO), FRONTEO

We view the results obtained from this PoC as a crucial first step for both companies. Combining FRONTEO's proprietary AI “KIBIT” for comprehensive analysis of diseases and target molecules with NBHL's advanced antibody drug discovery technology suggests the potential to generate novel drug discovery seeds at unprecedented speed. FRONTEO's technology, which serially discovers novel disease-target molecule associations and constructs them as hypotheses, and NBHL's technology for early acquisition of suitable antibodies against complex GPCR targets demonstrate high compatibility. We recognized significant synergy from our collaboration. Moving forward, we will deepen our relationship with NBHL while accelerating commercialization through both out-licensing to pharmaceutical companies and joint drug discovery models.

Comment from Jun Takasaki, Director/Chief Science Officer (CSO), NBHL

Through this PoC conducted jointly by both companies, we confirmed that FRONTEO's technology contributes at a speed exceeding our expectations to enhancing the value of our existing pipeline and creating new pipelines.

Building on these results, in the next phase of our joint research, we will steadily accumulate validation data with FRONTEO to further enhance pipeline value, while aiming to license this pipeline to pharmaceutical companies. Furthermore, by developing a collaborative drug discovery model that integrates FRONTEO's AI analysis technology with our antibody discovery technology, we will strive to deliver innovative and useful therapeutic drugs to patients as quickly as possible.

FRONTEO and NBHL will leverage their respective technologies and expertise, maximizing synergies to contribute to the research and development of innovative pharmaceuticals and therapies, the advancement of medical and pharmaceutical research, the growth of the pharmaceutical industry, and the improvement of healthcare quality and patient quality of life. Guided by the vision of “Making Japan a Hub for Drug Discovery Once Again,” we will contribute to growing the pharmaceutical industry into a core industry alongside automobiles and semiconductors. We aim for a fair world where appropriate medicines reach everyone who needs them.

Notes:

*1 antibody therapeutics: Therapeutic agents created by artificially producing “antibodies”—substances that bind to and neutralize antigens (foreign substances that trigger immune responses, such as viruses, allergens, or characteristic proteins on cancer cell surfaces)—using technologies like genetic engineering. They are characterized by minimal side effects and potentially higher therapeutic efficacy, as they do not affect cells or tissues lacking the antigen.

*2 October 1, 2025 Press release: FRONTEO and Hokkaido University-spinoff certified startup NBHL sign PoC (Proof of Concept) agreement, https://www.fronteo.com/news/251001

*3 GPCR: Receptors located on cell membranes. They function to transmit various signals from outside the cell into the cell interior. Approximately 800 types exist in humans. Due to their involvement in diverse diseases, they are considered important drug discovery target molecules and are the targets of many existing pharmaceuticals.

*4 DDAIF: An AI-driven drug discovery support service where FRONTEO's drug discovery experts, proficient in AI and drug development, leverage the natural language processing technology of their proprietary AI “KIBIT” and unique analytical methods to provide target molecule/indication discovery and supporting hypotheses.

*5 target molecule: A molecule (gene) that serves as the target for a drug's action.

*6 out-licensing: In the pharmaceutical industry, companies may conduct R&D internally or acquire development or marketing rights for drug candidate compounds from other companies or institutions. In the latter case,  out-licensing refers to the granting or transfer of these development or marketing rights by the developing company or institution to the pharmaceutical company.

*7 in vitro: Meaning “in glassware (test tubes, petri dishes, etc.)”, this refers to experimental techniques using cells or tissues to study reactions or effects outside a living organism.

*8 in vivo: Refers to “within a living organism,” an experimental technique that uses actual living organisms, such as animals, to examine reactions or effects occurring inside the body.

*9 MoGRAA: An antibody drug discovery platform independently developed by NBHL. This technology enables the highly efficient and highly selective acquisition of antibodies, particularly targeting GPCRs, which are important drug discovery targets.

About NB Health Laboratory Co., Ltd.   https://nbhl.co.jp/

NB Health Laboratory Co., Ltd. is a biotechnology company specializing in the research and development of antibody therapeutics. It is advancing a drug discovery approach targeting GPCRs—receptors that are crucial drug targets yet traditionally difficult to develop—using its proprietary antibody drug discovery platform, “MoGRAA.”

Based on MoGRAA, NBHL enables the efficient and highly selective acquisition of antibodies, aiming to transform GPCRs—previously abandoned as targets due to side effect concerns in small molecule drug development—into new therapeutic targets. The company already possesses multiple promising antibody pipelines and is accelerating R&D targeting rare diseases and areas with high unmet medical needs.

Furthermore, by actively collaborating with partner companies and research institutions both domestically and internationally, we are committed to contributing to human health and the advancement of medicine through the creation of innovative antibody therapeutics.

About NBHL's “MoGRAA”

NBHL's proprietary “MoGRAA (Modification of G-protein Coupled Receptor Activation with monoclonal Antibody)” platform is specifically designed for creating antibody therapeutics targeting GPCRs. While GPCRs are targets for many drugs, their structural complexity has traditionally made antibody drug discovery challenging.

MoGRAA overcomes these challenges, enabling the efficient generation of antibodies that are highly selective for GPCRs and capable of controlling their function. This facilitates the creation of novel pipelines targeting GPCRs, which were previously difficult to develop drugs for, and drives the development of innovative therapeutics addressing unmet medical needs.

About FRONTEO Drug Discovery AI Factory（DDAIF）

[Reference: Initiatives with pharmaceutical companies and Academia]

https://www.fronteo.com/news/ddaif-list

FRONTEO Drug Discovery AI Factory (DDAIF) is an AI-based drug discovery support service that combines KIBIT (patented in Japan, Europe, the U.S., and South Korea), an Equation-driven AI specialized in natural language processing, with the expertise of FRONTEO’s drug discovery researchers and AI engineers. It powerfully supports researchers’ decision-making in drug development through the analysis of disease-related gene networks and the construction of hypotheses regarding target molecule candidates. This service has already been adopted by multiple major pharmaceutical companies and has a proven track record.
*The technology used in Drug Discovery AI Factory is covered by a total of 21 patents held by FRONTEO in Japan, Europe, the U.S., and South Korea.
https://lifescience.fronteo.com/products/drug-discovery-ai-factory/

About FRONTEO, Inc. https://www.fronteo.com/en/

FRONTEO provides its proprietary Equation-driven AI KIBIT to support expert judgment across domains confronting social challenges. Its unique natural language processing technology (patented in Japan, Europe, the U.S., and South Korea) enables fast, high‑precision analysis without reliance on training data volume or computational power. Additionally, patented technology that maps (visualizes structure) analyzed information allows KIBIT to directly influence expert insights, and in recent years, KIBIT has been applied in hypothesis generation and target discovery for drug development.

Guided by its mission to enhance fairness in the information society by uncovering opportunities and risks hidden in collective intelligence, FRONTEO applies KIBIT’s unique capabilities in life sciences AI, risk management (including economic security, business intelligence compliance support, business intelligence professional support and legaltech AI), and digital transformation support (Alnetz Inc.).

Founded in August 2003, FRONTEO was listed on the Tokyo Stock Exchange Mothers Market (now the Growth Market) on June 26, 2007. The company has offices in Japan, the U.S., and South Korea. As of March 31, 2026, FRONTEO’s capital stands at 915,057,000 yen.

*FRONTEO, KIBIT, and Drug Discovery AI Factory are trademarks or registered trademarks of FRONTEO in Japan, Europe, the U.S., and South Korea.