FRONTEO and SCOHIA PHARMA Sign Agreement to Explore New Indications Using the AI Drug Discovery Support Service “DDAIF”

Tokyo, Japan, May 28, 2026 - FRONTEO, Inc. (Headquarters: Tokyo, Japan; President & CEO: Masahiro Morimoto; hereinafter “FRONTEO”) and SCOHIA PHARMA, Inc. (Headquarters: Fujisawa, Kanagawa Prefecture, Japan; Representative Director, President, CEO & CSO: Masanori Watanabe; hereinafter “SCOHIA PHARMA”) have entered into an agreement regarding the discovery of new indications (drug repositioning) for the mechanism of action pre-specified by SCOHIA PHARMA, utilizing FRONTEO’s AI-based drug discovery support service “Drug Discovery AI Factory” (hereinafter “DDAIF”). ^*1

In conjunction with the signing of this agreement, FRONTEO underwrote a third-party allotment of new shares conducted by SCOHIA PHARMA and made an investment in the company. This investment was carried out as a new project under the “DDAIF Innovation Bridge” (an initiative combining technical support via “DDAIF” with investment), which FRONTEO has been operating since February 2026.

Background and Overview of the Agreement
Drug repositioning is a drug discovery method that identifies new therapeutic indications (target diseases) for existing drug candidates. Compared to developing new drugs from scratch, the processes of compound screening, synthesis, and optimization are shortened. Furthermore, since known information regarding the compound, such as safety data, can be utilized, this approach is expected to reduce the time required for drug discovery and lower costs.

Under this agreement, FRONTEO’s equation-driven AI “KIBIT”^*2 will be utilized to identify previously unreported associations between diseases and target molecules^*3, thereby identifying new indications for the mechanism of action pre-specified by SCOHIA PHARMA.

Key Strengths of SCOHIA PHARMA
SCOHIA PHARMA was established in 2017 as a drug discovery venture specializing in the endocrine, cardiovascular, renal, and metabolic fields. The company maintains an integrated R&D structure that handles everything from target identification to clinical development, with a focus on rare diseases and obesity. In addition to having a track record of licensing out compounds to Neurocrine Biosciences, Inc., Huadong Medicine Co., Ltd, and Kuria Therapeutics, Inc., the company is also advancing a strategic collaboration with Celltrion Inc. in the field of obesity.

Comment from Masanori Watanabe, Representative Director, President, CEO and CSO, SCOHIA PHARMA
“We have entered into this agreement regarding the exploration of new indications for our compounds, in recognition of FRONTEO's proprietary AI technology ‘KIBIT’ and the high level of expertise of researchers well-versed in drug discovery.
Under this agreement, we aim to discover new indications that were difficult to identify using conventional methods by utilizing FRONTEO’s AI-based drug discovery support service ‘DDAIF’. By combining FRONTEO’s AI technology with SCOHIA PHARMA’s drug discovery expertise, we will work to create innovative treatment possibilities. 
Moving forward, we will continue to advance our research and development under our mission to ‘deliver new drugs to patients and contribute to building a society filled with smiles.’”

Comment from Hiroyoshi Toyoshiba, Director/CSO (Chief Science Officer), FRONTEO
“FRONTEO’s strength lies in using its proprietary AI and analytical technologies to discover relationships between diseases and target molecules, as well as disease mechanisms, that have not yet been reported in academic papers. By combining SCOHIA PHARMA’s unique compounds with our ‘DDAIF’ platform, we expect to uncover new potential indications that could not be identified using conventional research methods. We expect this initiative to contribute to the development of innovative therapeutics and help address unmet medical needs.”

FRONTEO aims to comprehensively evaluate the potential of SCOHIA PHARMA’s drug discovery using AI technology, thereby expanding the range of new pharmaceutical and therapeutic options while contributing to the fulfillment of unmet medical needs.

Notes:

*1 DDAIF: An AI-driven drug discovery support service in which FRONTEO’s drug discovery experts, well-versed in both AI and drug discovery, leverage the natural language processing technology of FRONTEO’s proprietary AI “KIBIT” and its proprietary analytical methods to provide hypothesis generation for target molecule and indication discovery.
*2 equation-driven AI “KIBIT”: An artificial intelligence independently developed by FRONTEO. By utilizing mathematical equations, KIBIT enables discontinuous discoveries, identification of causal relationships, and highly accurate, reproducible analyses. Its lightweight learning process allows it to operate on a single personal computer. Patents have been granted in Japan, Europe, and the U.S.
*3 target molecule: A molecule (gene) targeted by a drug for its activity.

About SCOHIA PHARMA, Inc.
SCOHIA PHARMA, Inc. is a biotechnology company focused on drug discovery that leverages its deep expertise in the endocrine, cardiovascular, renal, and metabolic fields to create new pharmaceuticals that address unmet medical needs through preclinical development. For more information, please visit https://www.scohia.com/eng/
 

About FRONTEO Drug Discovery AI Factory (DDAIF)

[Reference: Initiatives with pharmaceutical companies and Academia]
https://www.fronteo.com/news/ddaif-list