[Edaily Reporter YU JIN-HEE ] The proprietary platform technologies of domestic biotech ventures have been selected one after another by Japan’s top-tier global manufacturing companies, which are known for their conservatism. The industry views this as recognition that these technologies have been officially certified as “global standard production platforms.” Raphas Co., Ltd., the Japanese subsidiary of Raphas Co., Ltd.(214260)—a company specializing in soluble microneedles—is leading the charge.

Raphas Co., Ltd. recently signed a joint development agreement with a leading Japanese nanomaterials company boasting a 110-year history. It also secured a contract for contract development and manufacturing (CDMO) with Murata Manufacturing, a major electronics components manufacturer ranked among Japan’s top companies by market capitalization.

This is the result of aggressive research and development (R&D). Over the past five years, Raphas Co., Ltd. has invested more than 20 billion won in R&D—a difficult decision for a biotech startup. As a result, the company surpassed the 30 billion won mark for the first time last year, though it did not yet turn a profit.

However, the industry expects that as Raphas Co., Ltd. gains recognition in the market as the global standard production platform for microneedles, its profitability will improve rapidly alongside revenue growth. In fact, Raphas Co., Ltd.’s net loss has steadily decreased from 6.6 billion won in 2022 to about half that amount last year. The company expects to turn a profit within three years, even as it continues to invest in R&D for new growth drivers such as “DF19001,” an immunotherapy for allergic rhinitis.

In a written interview with Kwon Yu-ri, CEO of Raphas Co., Ltd., we discussed the significance of this series of contracts and her blueprint for expanding market share in the global healthcare market. The following is a Q&A with her.

- What message do these recent consecutive contracts send to the market?

△In a nutshell, it means that Raphas Co., Ltd.’s microneedle technology has been fully recognized as a global standard production platform. The biggest hurdles most biotech startups face when signing formal contracts with global companies are mass production capacity (scale-up) and compliance with strict Good Manufacturing Practice (GMP) standards. Japanese companies, known for their rigorous technical vetting, have selected Raphas Co., Ltd. as their final partner. This fact alone attests to Raphas Co., Ltd.’s manufacturing yield and GMP compliance. We are proud to say that Raphas Co., Ltd. has now moved beyond being merely a manufacturer of cosmetic patches.

-The practical value of the recently signed joint development agreement is

△The key term to note inthis agreementis “joint development.” The two companies already successfully completed the prototype validation process earlier this year. We anticipate that the pace of commercialization will be extremely rapid. The product is scheduled to be shipped through both companies’ global distribution networks, at which point Raphas Co., Ltd. will generate long-term, stable, and exclusive manufacturing revenue. In effect, the company has secured a powerful cash cow that instantly resolves the issue of uncertain revenue—a chronic weakness often cited in biotech startups. This will serve as the key to evolving beyond the cosmetics sector and expanding into a pharmaceutical pipeline covering conditions such as obesity and diabetes.


- The technical background of the CDMO agreement with Murata Manufacturing is

△It is based on a division of labor structure in which Murata Manufacturingsupplies the hardware, while Raphas Co., Ltd. is responsible for formulation development and mass production. This is underpinned by a disruptive innovation strategy aimed at completely transforming existing hospital-centered procedures into a routine, data-driven home care ecosystem. The potential for future expansion into the telemedicine and wearable diagnostic patch markets is limitless.

-I understand that the collaboration with Daisho Pharmaceutical has yielded significant results. What does this specifically mean?

△Daisho Pharmaceutical is a traditional “big pharma” company that owns Japan’s popular cold medicine “Favron,” among other products. The key point is that this conservative pharmaceutical company—which prioritizes brand trust above all else—placed its full confidence in Raphas Co., Ltd.’s technological capabilities. Raphas Co., Ltd. successfully launched a series of microneedle patch products in collaboration with Daisho Pharmaceutical’s skincare brand, “Cliniravo.” Clinirabo is a brand that aims to deliver immediate results for skin concerns by transcending the boundaries between pharmaceuticals and cosmetics. Raphas Co., Ltd.’s unique drug delivery platform technology was a perfect fit for this vision. Recently, following the launch of wrinkle-reduction products, the company has expanded its lineup to three product categories—including acne care and skin-brightening—and is targeting distribution networks across Japan. Notably, Daisho Pharmaceutical directly utilized confocal laser microscopy and other tools to visually verify and announce the overwhelming skin absorption rate and diffusion capabilities of Raphas Co., Ltd.’s microneedle patches. This served as a decisive turning point in solidifying Raphas Co., Ltd.’s platform’s unrivaled position in Japan’s quasi-drug and healthcare markets. To meet the explosive local demand, the company relocated production facilities from its Cheonan, South Korea, plant to its Shizuoka, Japan, plant, significantly expanding its production capacity (CAPA) to approximately 5.4 million units per year.

- Recently, you partnered with the Japanese trading company Marubeni Group to secure a major contract in the Middle East. I’m curious about the contract structure and the details of your market entry.
△This is a valuable achievement that Raphas Co., Ltd. secured after intense negotiations with the Marubeni Group—one of Japan’s top five general trading companies—leveraging its strong network. As a result, “AcneCure”—an over-the-counter (OTC) microneedle patch for acne treatment developed using Raphas Co., Ltd.’s proprietary technology—will enter the markets of nine Middle Eastern countries, including Saudi Arabia and the United Arab Emirates (UAE). The global quality standards achieved by meeting stringent U.S. OTC requirements served as a decisive stepping stone to opening the door to the Middle Eastern healthcare market. Under the terms of the local agreement, LunaTus, a Dubai-based company, will directly invest in obtaining pharmaceutical licenses and registrations across the Middle East while providing comprehensive support for marketing and local market entry, while Raphas Co., Ltd. will handle exclusive supply. Raphas Co., Ltd. plans to prioritize the supply of AcneCure and its private-label (PB) product line through the robust Middle Eastern distribution network and key hospital and clinic channels established by LunaTus. Through a close partnership with the Marubeni Group, Raphas Co., Ltd. played a pivotal role in facilitating the contract signing and plans to continue serving as a comprehensive bridge to ensure that the business between the headquarters and Dubai-based Lunatus is successfully established locally. We are committed to firmly establishing a new paradigm for microneedle-based acne treatment in the Middle East.


- Raphas Co., Ltd.’s achievements to date are

△Since its establishment in 2014, Raphas Co., Ltd.has led the commercialization of soluble microneedle technology. In 2015, the company established a factory in Shizuoka, Japan, and subsequently partnered with “Kitano Tatsujin,” a major Japanese mail-order company, to rapidly increase sales of its needle patches. This product was listed in the Guinness World Records in the “Needles” category. In 2020, the company established an additional research institute in Shizuoka to focus on technological advancement. Building on this foundation, it now supplies raw materials for high-performance products to renowned Japanese skincare brands such as “Dr. Shirabo.” Recently, led by Daisho Pharmaceutical and in partnership with leading Japanese companies such as Kracie, the company is expanding its reach into the consumer goods and quasi-drug markets. Furthermore, by signing a series of major contracts with large corporations, it is striving to evolve into a digital healthcare platform.

-Key investment points to watch for in Raphas Co., Ltd.

△Developing an in-housepipeline of new drugs incurs enormous costs and carries the risk of clinical failure. In contrast, the joint development and CDMO business model—such as the contracts with major Japanese corporations and global partners—which integrates partner companies’ core technologies or strong distribution networks into Raphas Co., Ltd.’s microneedle production platform, fundamentally reduces risk exposure. It is a highly efficient structure that also shares profits resulting from successful commercialization. Building on this recent Middle East contract with the Marubeni Group and Dubai-based Lunatus, as well as collaborations with major Japanese corporations, the company aims to maximize shareholder value by expanding its business territory across the board—not only in digital healthcare and medical aesthetics but also in telemedicine, digital therapeutics (DTx), and smart wearables.