FRONTEO Opens 'KIBIT AI Biology Lab,' Its Own AI Drug Discovery Center

FRONTEO, Inc. (HQ: Minato-ku, Tokyo; CEO: Masahiro Morimoto; hereinafter 'FRONTEO') has announced the opening of its AI drug discovery hub, the 'KIBIT AI Biology Lab.'

This lab will serve as the core for the company's four AI drug discovery businesses*1, developed using its Drug Discovery AI Factory (DDAIF) service, and for joint research with academia, making it the most critical base for promoting future AI drug discovery initiatives. The lab will house several dozen researchers and AI engineers, fully launching a system responsible for 'target molecule*2 exploration and hypothesis generation,' which is at the very beginning of the drug discovery value chain. Through this, FRONTEO aims to secure non-linear revenue opportunities and accelerate the expansion of its licensing-out*3 pipeline to pharmaceutical companies, focusing on rare diseases and cancer.

Role of the Lab

① Full-scale operation of a system for continuous drug discovery innovation, from university collaboration to licensing.

With the opening of this lab, FRONTEO will fully operationalize a framework where it drives the entire drug discovery process. This starts with 'new target molecule candidate exploration, dry experiments, and hypothesis verification' using DDAIF, moves through wet (cell/in-vivo) verification and clinical research in joint studies with academia like Tokyo University of Science*4 and the University of Oklahoma in the U.S.*5,6, and R&D partnerships with bio-ventures*7, ultimately leading to licensing out to pharmaceutical companies. Discussions are already underway with multiple pharmaceutical companies for licensing, and the full operation of this lab is expected to expand non-linear revenue opportunities.

[Diagram] Drug Discovery Value Chain Originating from KIBIT AI Biology Lab

② Major update to the 'DDAIF' AI drug discovery support service, accelerating R&D for pharmaceutical companies, universities, and bio-ventures.

The lab's operation will bring a significant update to DDAIF. While DDAIF has primarily analyzed literature databases (papers, etc.), it will now enable analysis that reflects wet verification and clinical research results obtained from this lab and joint research institutions like Tokyo University of Science and the University of Oklahoma, achieving a dramatic improvement in analytical precision. By evolving from an 'AI that only analyzes literature data' to an 'AI that continuously learns from the dry, wet, and clinical research data of its own and partner institutions,' FRONTEO will contribute to advancing the R&D of its partners—pharmaceutical companies, universities, and bio-ventures—and improving the success rate of drug discovery.

Future Developments

With an eye on expanding target areas, growing the licensing pipeline, and establishing multiple locations, FRONTEO will pursue the following developments originating from this lab.

Expansion of Target Areas: Starting from its current focus on rare diseases and pancreatic cancer*8, FRONTEO will consider expanding into other fields such as materials, food, and cosmetics in the future.

Expansion of Licensing Pipeline and Accelerated Relationship Building with Pharmaceutical Companies: The full operation of the lab aims to expand the licensing pipeline to pharmaceutical companies and accelerate the building of relationships with them.

Expansion of Locations: FRONTEO will work to scale up its AI drug discovery research system with a view to establishing multiple locations in the future.

Past Initiatives and the Lab's Positioning

Since launching the 'FRONTEO Co-creative Drug Discovery Ecosystem'*9 in May 2025, FRONTEO has been progressively building a system to foster drug discovery innovation and continuously create revolutionary medicines. This has included co-creation projects with pharmaceutical companies, a full-scale entry into the U.S. market (strategic partnership with Q Partners LLC*10, joint research with the University of Oklahoma College of Medicine*5,6), the launch of the 'DDAIF Innovation Bridge'*7 joint drug discovery ecosystem with bio-ventures, and the establishment of an industry-academia collaboration hub with Tokyo University of Science*4 in April of this year.

The 'KIBIT AI Biology Lab' will be the most critical base for FRONTEO in promoting its future AI drug discovery business.

FRONTEO will continue to aim for the research and development of innovative drugs and the creation of new treatment options for incurable diseases, including refractory cancers and rare diseases, through this drug discovery ecosystem. Under the philosophy of 'Making Japan a Land of Drug Discovery Once Again,' the company will contribute to the revival of the pharmaceutical industry as a core industry for Japan, following automobiles and semiconductors.

Comment from Masahiro Morimoto, CEO, FRONTEO, Inc.

Japan's excess of pharmaceutical imports is a serious economic challenge, and strengthening our drug discovery capabilities is an urgent issue. The opening of this lab is a crucial step that brings together our past AI drug discovery efforts and fully operationalizes the system that handles the very top of the drug discovery value chain. To revive the pharmaceutical industry as a core industry for Japan, following automobiles and semiconductors, we will start from this lab.