Health-food Business

Takara Bio has been researching the bioactive properties of kombu (kelp) "fucoidan," agar (vegetable gelatin) "agaoligo," Ashitaba (angelica herb) "chalcone," mushroom "terpene," herb (Peucedanum japonicum) and yam (Dioscorea esculenta), and has been developing and producing health food products containing these active ingredients. These products are marketed through Takara Healthcare Inc. (a wholly owned subsidiary of Takara Holdings Inc.)

1. Kombu (Kelp) "Fucoidan"

Fucoidan is a polysaccharide with a slimy consistency that is found mainly in various species of brown kelp, including kombu. Takara Bio was first in indentifying three chemical structures in the dietary fiber fucoidan found in Gagome kombu, a type of kelp in the Kjellmaniella family, and the Company named these F-fucoidan, U-fucoidan and G-fucoidan. Subsequently, it was discovered that the fucoidan in Gagome kombu can induce the production of interleukin-12 and interferon-gamma, which are both believed to be effective in the treatment of cancer. Fucoidan also stimulates the natural killer cells that play a role in attacking cancer cells. It has also been discovered that the fucoidan in Gagome kombu has the effect of inhibiting the formation of blood clots.

2. Agar (Vegetable Gelatin) "Agaoligo"

Agar, which is made from tengusa and other types of kelp, is known as the "king of dietary fibers" and is a popular traditional Japanese food. Takara Bio has found that the oligosaccharides, "Agaologo," which are obtained by heating agar in acid, have bioactive properties including antiinflammatory and detoxifying effects.

3. Ashitaba (Angelica Herb) "Chalcone"

Ashitaba is indigenous to Japan and grows wild on the Pacific coast, mainly on the Izu Islands. Ashitaba is known for its strong vitality as indicated by the saying, "If Ashitaba leaves are picked today, new leaves will be in place by tomorrow." Ashitaba is rich in vitamins, minerals and dietary fiber. Takara Bio offers Ashitaba grown in domestic farms with quality soil conditions. We also run Ashitaba juice bars, known as "Ashita-Bar^TM," in Tokyo. Takara Bio has discovered that a polyphenol peculiar to Ashitaba, chalcone, has antidiabetic effects.

4. Mushroom "Terpene"

Through a number of research projects on the tumor-inhibiting properties of mushrooms, Takara Bio has discovered that polyterpene, a compound found in Bunashimeji mushrooms, can inhibit tumor growth. Takara Bio has already registered a substance patent for this polyterpene.

5. Yam (Dioscorea esculenta)

Dioscorea esculenta is a type of yam that is cultivated in Okinawa. This dense, sweet yam is very tasty but an extremely small amount is grown because it is vulnerable to cold and it is difficult to cultivate. This "phantom yam" is not widely known even among local inhabitants. Takara Bio has discovered that Yamsgenin^TM, a substance found in the yam that is not found in ordinary yams, has antifatigue effects.

6. Herb (Peucedanum japonicum)

Peucedanum japonicum is a perennial plant in the Apiaceae (Umbelliferae) family that grows naturally along the coast, mainly from southern Kyushu to Okinawa. In Japanese, it is called "botanbofu." In Okinawa it is called "chomei-so" (long-life herb) or "sakuna." The leaves are eaten as a condiment or cooked tempura-style. Takara Bio has been studying the properties of this herb and has found that the coumarin compound has a preventive effect in hardening of the arteries.

Mushroom Business

Takara Bio was the first company to succeed in the large-scale cultivation of Bunashimeji mushrooms, which are now widely available at most supermarkets. In 1973, we licensed our large-scale cultivation method to JA ZEN-NOH (National Federation of Agricultural Cooperative Associations) Nagano, and succeeded in the commercialization of this mushroom. We have licensed the technology for the large-scale cultivation of Bunashimeji mushrooms to JA ZEN-NOH Nagano and Yukiguni Maitake Co,. Ltd., and are also involved in the production and marketing of Hatakeshimeji and Honshimeji mushrooms.

Hatakeshimeji mushrooms are produced by Mizuho Nourin Co., Ltd., a joint venture company with Kyotanba-cho and the Kyotanba Forestry Association, both of which are in Kyoto prefecture. Mizuho Nourin is expected to produce approximately 1,300 tons of mushrooms in fiscal 2009. We produce Honshimeji mushrooms in Yokkaichi, Mie Prefecture, and expect to produce approximately 38 tons in fiscal 2009.

We have a business alliance with Yukiguni Maitake, and this company has been marketing Hatakeshimeji and Honshimeji mushrooms since September 2006.

As for R&D in the mushroom-related business, the Company is developing a new cultivation method for the growth of other high-value-added mushrooms utilizing information from the sequencing of the Matsutake genome.