Yokogawa Electric Corporation and HIROTSU BIO SCIENCE INC. (HBS) have signed an investment and partnership agreement to expand the use of HBS’s N-NOSE cancer screening test service, which utilizes the highly sensitive olfactory sensory functions of nematodes to detect cancer.
Under this agreement, Yokogawa will invest in HBS, and be responsible for the manufacturing and maintenance of N-NOSE’s automatic analysis equipment.
Regarding the partnership, Takaaki Hirotsu, HBS president and CEO, commented, “N-NOSE, a nematode cancer test, aims to become an annual test for all people in the world as a primary screening cancer test. To achieve this goal, high throughput, mass production, and global support of the automated analysis system are essential, and we consider the alliance with Yokogawa Electric Corporation to be of utmost importance in promoting the N-NOSE business. Another feature of this project is that we will be adopting a revenue-sharing method for hardware technology, which is very rare. This is a new form of collaboration between a venture company and a large corporation, and we hope that new value that will change the world will be created from it.”
Hitoshi Nara, Yokogawa president and CEO, said, “For Yokogawa, this collaboration is an important co-innovation initiative for achieving well-being for all, which is one of our “Three goals” for sustainability, and we believe that this will make a significant contribution to society. We will use this agreement as a starting point to build a strong relationship with HIROTSU BIO SCIENCE, and work toward further value co-creation.”
The two companies are also aiming to develop new automatic analysis equipment and promote the global growth of the N-NOSE business.
With Yokogawa’s manufacturing capacity and life science know-how, the two companies will be able to build a system for the mass production and maintenance of this automatic analysis equipment and meet the expected growth in demand for testing.
They will also explore collaboration in the development of next-generation automatic analysis equipment and the global expansion of the N-NOSE business.
For this business, HBS will provide nematode cancer screening technology and know-how, and Yokogawa will leverage its core measurement, control, and information technologies, and a global network that spans 62 countries.
To share the risks and returns of these collaboration activities, the two companies have agreed to adopt the same revenue sharing method used by many companies in the IT software and systems sectors.