NanoCarrier conducts drug discovery R&D using the micellar nanoparticle technology as a foundation. We employ business developments appropriate for each business stage with the objective of product commercialization. Our current business model comprises three patterns: (1) in-house development, (2) joint research, and (3) licensing-out.
In-house development involves developing pharmaceutical products from the beginning to the launching. Sales by ourselves will produce sales revenue, but we currently do not have any pipelines that have reached that stage.
Joint research involves receiving cooperative R&D revenue from a research partner. We currently receive cooperative R&D revenue from several pipelines as research and development support.
Licensing-out to other companies involves supplying the product and the results up to the time of license agreement, and in return, receiving an upfront license payment at the time of license agreement, milestone payments at specified developmental stages, as well as royalties on net sales of the finished product from the launching. NanoCarrier has several pipelines that currently produce revenues including upfront payments and milestone payments associated with the commencement of phase I and phase II clinical trials.
Through these revenues (upfront and milestone payments, cooperative R&D payments for the supply of the product) received before product commercialization, NanoCarrier reduces the burden of R&D costs before product commercialization to minimize our financial risks.

NK105	:	Licensed-out to Nippon Kayaku Co., Ltd., and has entered the phase II clinical study in Japan. Business models outside Japan are undetermined.
NC-6004	:	Phase I study was completed by NanoCarrier in the United Kingdom. NanoCarrier granted to Orient Europharma Co. Ltd. (OEP) an exclusive license for commercialization in the territory of East Asia (excluding Japan and Main China), South-East Asia and Oceania. The next step clinical study in the territory is to be conducted by NanoCarrier and OEP.
NC-4016	:	Licensed to Debiopharm S.A. and has entered the phase I clinical study in Europe.
(Black down-pointing triangle) : Indicates the timing of upfront payments received at the time of license agreement or milestone payments received for each developmental stage achieved.