FRONTEO Co., Ltd. (Headquarters: Minato-ku, Tokyo, President and CEO: Masahiro Morimoto, hereinafter referred to as FRONTEO) and Shionogi & Co., Ltd. (Headquarters: Chuo-ku, Osaka, Chairman and CEO: Isao Teshirogi, hereinafter referred to as Shionogi & Co., Ltd.) ) is pleased to announce that they have entered into a strategic business partnership agreement regarding dementia-related AI program business and depression-related AI program business.

　Through this partnership, FRONTEO and Shionogi & Co., Ltd. will utilize FRONTEO's natural language processing AI technology, and both companies will aim to develop and socially implement high-performance diagnostic support AI models and medical and non-medical devices. We will streamline the diagnosis of neurological diseases, improve the quality of life of patients, reduce the burden on medical personnel, and contribute to the effective use of medical resources. The specific details of the partnership are as follows.

[Main partnership details]
1. The two companies will utilize FRONTEO's proprietary AI engine "KIBIT" to create an AI model for dementia diagnosis support and depression based on "inventions related to cognitive symptom assessment devices, etc." and "inventions related to depression symptom assessment devices, etc." Aiming for joint development and commercialization of diagnostic support AI models and their medical and non-medical devices, and early market penetration and market expansion.
2. Both companies aim to cooperate to obtain regulatory approval for jointly developed medical devices
3. FRONTEO will be responsible for tasks related to program operation, including the development of AI models and medical and non-medical devices.
4. Shionogi & Co. aims to build an efficient business by taking the lead in clinical development, etc.

　By signing this agreement, Shionogi & Co. will acquire exclusive marketing rights for the above-mentioned products in Japan, and will receive an upfront payment, milestone fees based on future development progress, and sales amount after the product is launched on the market. We will pay the appropriate royalties to FRONTEO.

[Image of use of diagnostic support AI program]

　Neuropsychiatric diseases such as dementia and depression are positioned as important health issues both domestically and internationally. According to the Ministry of Health, Labor and Welfare, the number of patients with dementia has been on the rise in recent years.¹⁾, the number of patients with mood [emotional] disorders, including depression and manic depression, has also approximately tripled in 10 years.²⁾. In order to enable early diagnosis and treatment of these diseases, we will establish highly accurate and rapid testing methods that can be widely used outside of specialists and specialized medical institutions, and develop self-diagnosis methods using non-medical devices based on scientific evidence. There is a growing need for Diagnostic support programs using AI technology are expected to contribute to this realization.
1) Ministry of Health, Labor and Welfare: Regarding future estimates of people with dementia, https://www.mhlw.go.jp/content/001061139.pdf
2) Ministry of Health, Labor and Welfare: Patient survey, https://www.mhlw.go.jp/stf/wp/hakusyo/kousei/18/backdata/01-01-02-09.html

　Through this business alliance, FRONTEO and Shionogi will maximize the knowledge and strengths of both companies to improve the quality of medical care and QOL of patients related to the diseases targeted by the AI ​​program, support medical professionals, and improve medical care. We will contribute to the effective use of resources.

■About Shionogi & Co., Ltd.　URL:https://www.shionogi.com/jp/ja/
　Shionogi & Co., Ltd. has identified "contributing to healthy and fulfilling lives" as a materiality (important issue) to address. In order to provide patients around the world with solutions that lead to early diagnosis and treatment of psychiatric and nervous system diseases, which still have high unmet medical needs, we will strive to actively utilize various cutting-edge technologies.・We will strengthen our efforts, including collaboration with external partners, in order to contribute to improving the quality of life and productivity of patients with neurological diseases and their families.

■ About FRONTEO　URL:https://www.fronteo.com/
　FRONTEO is a data analysis company that provides various AI solutions and services using the in-house developed AI engine "KIBIT". Based on the philosophy of "providing solutions that do not overlook risks and opportunities buried in records and realizing fairness in the information society," extract meaningful and important information from vast amounts of text data and complex networks. Our strengths are natural language processing and network analysis technologies that support advanced judgments by experts.We are developing businesses in the areas of legal tech AI, business intelligence, life science AI, and economic security, and contributing to solving various corporate and social issues. Founded in August 2003, listed on Tokyo Stock Exchange Mothers (currently Tokyo Stock Exchange Growth) on June 8, 2007.The company operates in Japan, the United States, South Korea, and Taiwan.Acquisition of first-class medical device manufacturing and sales business license, notification of controlled medical device sales business.Capital 6 thousand yen (as of March 26, 3,042,317).

[Medium-term business plan]

　FRONTEO began joint research with Keio University School of Medicine in 2015 with the aim of "practicalizing the world's first AI medical device that supports diagnosis using natural language." In the field of dementia, we have registered patents in Japan (registration number: 6733891), South Korea (registration number: 10-2293160), and Europe (registration number: 3835972), and in the field of depression, we have registered a patent on PCT in July 2023. We have filed an international application (application number: PCT/JP2023/025678, PCT/JP2023/025679)*. Using these unique technologies, we are researching and developing a program that uses AI to analyze natural conversations of about 5 to 10 minutes between patients and medical professionals to determine the presence or absence of diseases and functional decline.・We aim to establish methods for early detection of symptoms and secure objective evidence.

*PCT international application: An international application based on the Patent Cooperation Treaty. An application system that has the same effect as filing simultaneously in all PCT member countries by submitting one application in accordance with the treaty.