NEC aims to discover new drugs harnessing advanced AI technology

Tokyo, December 19,
2016 – NEC
Corporation (NEC; TSE: 6701) today announced the establishment of
“CYTLIMIC Inc.” (CYTLIMIC), a new company that promotes the development and
application of therapeutic cancer peptide (*1) vaccines discovered using NEC’s
unique advanced Artificial Intelligence (AI) technology. Moreover, NEC has
concluded an agreement in respect to a third-party allocation of newly issued
shares to CYTLIMIC underwritten by Fast Track Initiative, Inc., SMBC Venture
Capital Co., Ltd., and NEC Capital Solutions Limited as part of reinforcing its
healthcare business and commencing with the drug development business.

NEC’s “NEC the WISE”
(*2) cutting-edge AI technologies combine machine learning and experimentation
to produce a unique “immune function prediction technology” that is able to
efficiently discover peptides that are potential vaccines in a short period of
time and at a low cost.

Harnessing this
technology, NEC has been engaged in collaborative research since 2014 with
Yamaguchi University and Kochi University, and in clinical research with
Yamaguchi University, resulting in the discovery of a peptide vaccine that
promises to be effective in the treatment of hepatoma and esophageal cancer and
is compatible with the genetic profile of approximately 85% of Japan’s population.

Currently, NEC is
advancing its application as a new cancer drug through CYTLIMIC, by developing
investigational use formulations of the discovered peptide vaccine, confirming
its safety and efficacy through nonclinical and clinical tests, and
investigating its commercialization with pharmaceutical companies. With
initiatives such as this latest drug development business, NEC will continue to
expand its “Solutions for Society” business by harnessing AI and other
cutting-edge technologies to strengthen its healthcare business.

In recent years,
advances in life science have been accompanied by advances in elucidating the
human immunity mechanism, and new cancer therapies that utilize immunity are
being administered. Research is underway into the application method of one
such therapy, a therapeutic cancer peptide vaccine that activates the “immunity
that attacks cancer.”

However, the
development and application of this vaccine requires the discovery of peptides
that activate immunity from among 500 billion amino acid sequences, as well as
the discovery of peptides that universally match the human leukocyte antigen
(HLA) which differs from person to person, and an immune adjuvant (*3) to advance
the efficacy of the peptides. Added to this is the need for clinical and
nonclinical tests using these, resulting in a lengthy and costly process.

Now, through the
efficient discovery of peptides that are potential vaccines in a short
timeframe and at low cost using cutting-edge AI technology, NEC is developing
and putting to practical use a therapeutic cancer peptide vaccine through
CYTLIMIC.

The following are
NEC’s discoveries and demonstrations in respect to our research and development
of cancer peptide vaccines.

・June, 2001：

Developed
our unique AI technology “immune function prediction technology” that combines
machine learning and experimentation to discover potential new substances. Only
a few biological tests are needed to predict potential new drugs from an
enormous number of chemical substances. This is accomplished with a high degree
of accuracy, within a short timeframe, and at low cost.

・October, 2014：

The
search for peptides that activate immunity from two kinds of cancer antigens
(*4) expressed in Hepatoma, gastrointestinal cancers such as esophageal cancer,
as well as breast cancer, in combination with the discovery of more than 10
types of peptide. Each peptide is universally adaptable for multiple HLAs,
covering approximately 85% of the Japanese population, while confirming that
immunity was actually activated.

・April, 2015：

Used
various combinations to discover an innovative new adjuvant in collaboration
with Yamaguchi University that enhances the efficacy of peptide vaccines.

・January, 2016：

Started
first-in-human clinical research of new “complex immunotherapy” (*5), using the
peptides and adjuvant described above, to test initial safety and efficacy at
Yamaguchi University.

Now, through NEC’s
establishment of CYTLIMIC, the application of the vaccine is being advanced by
developing investigational use formulations of the therapeutic cancer peptide
vaccine, confirming its safety and efficacy through nonclinical and clinical
tests, and investigating its commercialization with pharmaceutical companies,
based on peptides discovered using NEC’s unique AI technology “immune function
prediction technology” and innovative adjuvant discovered through collaborative
research with Yamaguchi University.

CYTLIMIC Profile

Name:
CYTLIMIC Inc.

Address:
Shinagawa-ku, Tokyo

Date
established:  December 16, 2016

Business:
・Clinical trial of
cancer peptide vaccines

・Nonclinical testing
of cancer peptide vaccines

・Developing
formulations for investigational use vaccines, stability testing

・  Promoting
application with pharmaceutical
companies

Shareholding
ratio: NEC: 39.9%, other investors: 60.1％

Capital:
361.5 million yen

(after
capital increase)

Representative:　Shun Doi, President & CEO

“As a result of this
latest initiative, NEC is developing and implementing a therapeutic cancer
peptide vaccine, and investigating how it can be adapted for various forms of
cancer. Also, as a result of NEC’s cutting-edge AI technology and the latest
immunology findings of universities and research institutes, we are developing
a new cancer vaccine using peptides and adjuvants, helping to create a society
that beats cancer. Going forward, NEC will continue to expand its business by
promoting the application of AI technology to the healthcare sector,” said
Takaaki Shimizu, Executive Vice President and Chief Marketing Officer at NEC
Corporation.

***

Note:

*1)
Peptide: A molecule consisting of chains of between several and several dozen
of a variety of amino acids.

*2) July
19, 2016 NEC announces new AI technology brand, “NEC the WISE”

NEC’s
AI (Artificial Intelligence) Research

*3)
Adjuvant: A pharmaceutical auxiliary material for immune activation
administered in combination with a peptide for the purpose of enhancing immune
function

*4)
Cancer antigen: Protein associated with cancer whose amount increases with a
cell’s carcinogenesis

*5)
Complex immunotherapy: Immunotherapy combining peptides and novel adjuvants