"Entrepreneur's aspirations" to hear the background of deciding to start a business, the conflicts until the business gets on track, and the desires to realize through the business.
In our 34th installment, Mr. Taku Nakahara, CEO of Metagen Therapeutics, Inc., spoke with Taira Kobayashi, the capitalist in charge, about his future business challenges.
【profile】
Metagen Therapeutics Inc. Representative Director Taku Nakahara
Started his career as a bioinformatics researcher. In 2008, he founded a startup from Hokkaido University with a pharmaceutical company in the research he was involved in, and served as the bioinformatics manager. After that, he founded Metagen Therapeutics (MGTx) in 2020 after working for a major domestic consumer goods company and venture capital in Japan and the United States, and assumed the position of President and CEO. Obtained a Ph.D. (Science) from Hokkaido University and an MBA (Pharmaceutical Management) from Rutgers Business School.
[What's Metagen Therapeutics Inc.]
Founded in January 2020 with the vision of "continuing to fulfill the wishes of patients with microbiome science". A startup from Juntendo University, Tokyo Institute of Technology, and Keio University that develops intestinal bacteria drug discovery and medical services. We aim to maximize the impact on people suffering from illness by socially implementing the new modality of intestinal bacteria without sticking to a specific technology or business model. At the same time, we will promote academic drug discovery and aim to become a global healthcare company that leads the Japanese intestinal bacteria industry.
Aiming for social implementation of cutting-edge medical technology with world-class researchers in microbiome science
―Please tell us about the business of Metagen Therapeutics Inc.
Nakahara Our goal is to realize a society that utilizes the microbiome (intestinal flora) to cure disease.
One of the ways to do that is medicine. A medical technology called "intestinal microbiota transplantation (FMT)" that treats diseases by receiving fecal matter from healthy individuals and administering the intestinal microflora (a collection of intestinal bacteria) in the feces to the patient. and has been conducted as a clinical study since 2014 at Juntendo University. Our company aims at social implementation of FMT in Japan by operating a platform (intestinal flora bank) other than medical practice of FMT.
Another method is "microbiome (intestinal flora) drug discovery". Microbiome drug discovery is progressing globally, and in November 2022, the intestinal flora derived from feces will be approved as a drug in Australia and the United States. However, although Japan is strong in microbiology and immunology and leads the world in scientific aspects, it is not sensitive to commercialization, and only a few companies are trying to develop drugs using the microbiome. startups only have a very large amount of white space.
Globally, about 300 companies, including major pharmaceutical companies and startups, have entered this field, and it is certain that a medical and drug discovery industry that utilizes intestinal bacteria will start up in Japan as well, but the question is who will do it. That's all. Starting with FMT, we aim to become a company that can reach out globally by developing the Japanese microbiome industry.
―Why did you focus on FMT? Mr. Nakahara, please tell us about your background.
Nakahara I originally started my career as a bioinformatics researcher. After experiencing launching a new business with a pharmaceutical company in the research area and starting a business in the United States, I also experienced venture capital in Japan and the United States. At the time when I was investing in startups in the United States, the microbiome was experiencing a major boom, and I thought, "This is an interesting area to invest in, where breakthroughs in science and technology intersect in a timely manner."
The beginning of the business started with an encounter with Metagen Co., Ltd., a pioneer in Japan of healthcare startups utilizing intestinal bacteria. The first time I met Shinji Fukuda, CEO of Metagen, was right after I returned from America. Fukuda, who I met at a certain meeting, was talking about Metagen's business concept, saying, "I'm going to do a bio-venture." At the time, I was exhausted both physically and mentally after closing the company in the United States. . After that, I was involved in Metagen as a business advisor.
Among them, I kept saying that FMT and microbiome drug discovery, which had been gaining momentum in the United States, should be done absolutely. There is such a trend globally, and Metagen can do it. Metagen has some of the world's top researchers, and they thought they should try a bigger market. Then Fukuda said, "In that case, Mr. Nakahara should do it." Certainly, if I was going to do it seriously, I should have started a new company, and I decided that I had no choice but to do it. As a result, I decided to launch Metagen Therapeutics with Fukuda, Yamada, and Ishikawa, who are core members of Metagen and world-famous researchers.
―You have experience starting businesses in Japan and the United States. Did you originally have the desire to start a business?
Nakahara Not really (laughs).
When I was involved in basic research as a researcher, I used to think that useful research was a perverse practice. I feel like I'm going to have a good time. That may have been commercialization and aiming for social implementation.
Meet a capitalist with a professional background and passion
Mr. Nakahara (center), JAFCO Capitalist Yukari Miyagawa (left), Taira Kobayashi (right)
― In July 2022, we raised 140 million yen in the series Pre-A round. Please tell us about your first encounter with JAFCO and your first impressions.
Nakahara When I met Mr. Kobayashi from JAFCO, 2019 It was the end of the year. Mr. Kobayashi originally had a background in research on intestinal bacterial infections, and I was shocked that we were able to have a concrete discussion about intestinal bacteria from the very beginning of our meeting.
Kobayashi At the time, I had just joined JAFCO mid-career. When I made an inquiry on the Metagen website, Mr. Fukuda introduced me to Mr. Nakahara. From there, I deepened my understanding of the business by creating opportunities to exchange opinions with Mr. Nakahara on a regular basis.
―What kind of communication did you have before you decided to invest?
Kobayashi From my experience in researching intestinal bacteria, FMT was one of the technologies in the microbiome that I felt had the highest potential for social implementation. Since intestinal bacteria are extremely complex and difficult to handle, I was convinced that a completely reproducible treatment method would not emerge for about a century from now. (evaluating the scientific efficacy and safety).
While there is solid clinical evidence from overseas, I thought that someone should exceed Japanese regulations for patients suffering from dysbiosis, and I exchanged information with Mr. Nakahara, including that possibility. I thought I would like to continue.
Mr. Nakahara has a high goal of providing the value of the microbiome to patients in various ways starting from FMT from the beginning of the business, and there is an upside to the business of "drug discovery" when making investment decisions. was very attractive. During regular meetings, the direction of major business strategies, including the path of regulatory science and drug discovery, was materialized. I moved concretely.
―Mr. Nakahara, you also have experience in venture capital. Given that knowledge, what made you choose JAFCO as your funding source?
Nakahara As a company called JAFCO, it has a track record as a long-established and central presence in domestic VC. It feels sophisticated.
In terms of my relationship with Mr. Kobayashi, being able to engage in technical discussions from the beginning was extremely important. "Why do you think so?" "I think so," I was able to communicate without any discomfort, as if I was talking to a top-level researcher, but I have never met such a capitalist. .
I often talk with members of our company, "I wonder why Mr. Kobayashi is a capitalist" and "Why do you understand the essence of business so much?"On top of that, they are enthusiastic and work towards the realization of social implementation of FMT, and they give advice with the logic of VC. Everyone trusts Mr. Kobayashi and can be a beloved companion. I think it's a very valuable existence.
Kobayashi Excuse me (laughs).
Nakahara I believe that the value that VCs bring to early-stage companies can be summarized in three ways.
Either get the money, get the people, or get the job. Mr. Kobayashi will do his best with a surprising amount of enthusiasm. I think JAFCO's appeal is that it has both its knowledge as a company and its unrefined nature as a capitalist.
―Are there any specific aspects of JAFCO's support that left a particularly strong impression on you?
Nakahara What impressed me most was that Mr. Kobayashi created the over 100-page budget application form for the government, starting with the key concept proposal. Unfortunately, the application was not approved, but through the preparation of the documents, we were able to come up with a very good business plan idea, which will greatly contribute to the future of our company.
The quantity and quality of the work was so impressive that I was surprised at how they managed to finish it in such a short period of time while involving the people around them.
Kobayashi Because I also have a background as a researcher, I have a strong desire to deliver technology to society, rather than ending my research with papers. In order to deliver technology to society, I came to JAFCO and decided to invest in companies that I believed had potential. Metagen Therapeutics has the best team, including Mr. Ishikawa, who is a top runner in medical care using intestinal bacteria, and world-class intestinal microbiota researchers such as Mr. Fukuda. I think there is no point in being at JAFCO in the first place if we don't do it seriously here.
Nakahara After all, the amount of heat is not ordinary.
Kobayashi I don't think there are many organizations at this stage of Japanese startups that bring together so many talented members. Mr. Nakahara is always modest, saying, "Everybody else is a great specialist," and he is not a top-down manager. In the field of technology development, many successful American startups create a "box" containing many specialists, and the person who manages it is in charge of management. I think Mr. Nakahara is exactly that kind of person.
Nakahara No, no, it's just that we don't have to show our ego because we're all really top-level specialists.
Kobayashi In order to work on FMT, a field that is still "not well understood" and "difficult to gain the understanding of those around you" in Japan, you have to create a culture. In order to change society, it is absolutely necessary to have the viewpoint of a specialist with multiple backgrounds, not the viewpoint of one person. I believe that there are not many people who can surpass Mr. Nakahara in creating a "box" where diverse talents and knowledge gather.
I want to create a society where "FMT is the norm" from the same point of view as doctors all over Japan
―What do you want to achieve in your business in the future?
Nakahara Our big vision is to save patients with the power of science. To realize this, we will first implement FMT in Japan and create a society that can help patients with microbiome drug discovery.
In order to realize this, we have to involve doctors all over Japan from the same point of view and create a society where people say, "FMT is a matter of course." With the support of Mr. Kobayashi and Mr. Miyagawa from JAFCO, I would like to move forward with the members over a span of 5 to 10 years.
―What is Mr. Nakahara's "ambition" as an entrepreneur? Please share your message with those who aim to become entrepreneurs.
Nakahara I think it is extremely important to have a vision as to whether or not the project should really be pursued. When I started the business, Ishikawa, who had already saved many patients as a doctor, asked me, "Why are you starting this company? Wouldn't it be great if we could just have one FMT clinic?" My answer was, "In order to help so many patients, we need energy comparable to the discovery of a new continent. For that reason, human beings should invent a system called a corporation and draw the future with the power of capital." I was able to do it now." Whether there is a goal that can not be achieved by one person is indispensable for entrepreneurship.
Another important thing is that the people I work with are happy. As I get older, my ego is gradually disappearing, but because I have that stance as an entrepreneur, I can think about big goals and the happiness of my colleagues. I hope that everyone, including JAFCO, will continue to get along well and work together as a happy team.
Person in charge: Comment from Taira Kobayashi
In the treatment of dysbiosis, which seriously damages people's health, FMT is a treatment with no alternatives that has already started to spread in Europe and the United States.
Metagen Therapeutics is a microbiome platform that gathers gastrointestinal specialists, bacteriologists, bioinformaticians, and live bacteria drug discovery researchers who have the top achievements in each field in Japan, led by Mr. Nakahara.
As the company grows, we will continue to do our utmost to support the creation and spread of new treatment methods that change the standard of care and innovative microbiome medicines from Japan, which has been a world leader in bacteriology.
