KAICO, established in Fukuoka in April 2018, is pioneering the development of pharmaceuticals using a unique method: utilizing proteins expressed within the bodies of silkworms for pharmaceuticals. Our journey, while now gaining media attention and partnerships, has been filled with challenges and triumphs.
Our founder, Kenta Yamato, introduces you to how he established a bio-startup with a background in the humanities, and how he overcame the difficulties and challenges.
“Changing the world”. Does it sound exaggerated?
Japanese cocoons were Japan’s largest export during the Meiji era (1868-1912), and because of their high quality, they were costly and the envy of the world. Silkworms were valuable items for earning foreign currency for Japan’s modernization and, at the same time, were the ones that improved the quality of clothing worldwide. Technological advancements in the petroleum industry and lifestyle changes have shrunk Japan’s sericultural industry for silk production. However, the time may come when silkworms will again play a leading role in the industry. This time, to change the world that faces unknown viruses.
From Humanities to Biotech: The Founder’s Journey
I grew up in a greater Tokyo area and entered a major heavy equipment manufacturer after graduating from a university. As I was transferred to Nagasaki, I felt comfortable living in the Kyushu area (a far western part of Japan consisting of 7 prefectures) rather than a greater Tokyo area. I was working in the procurement team, and the presidents of the suppliers I met at that time seemed to shine brightly as they carried the company on their backs. So I took a leap to start my own company after 15 years in the corporate world. Though my first venture didn’t succeed, the entrepreneurial spark never faded. It led me to business courses at Kyushu University, where I discovered a world of untapped potential in academic research. A pivotal moment came when I met Professor Kusakabe, an expert in insect molecular genetics. Professor Kusakabe’s research on using silkworms to express complex proteins opened a new world of possibilities. Silkworms were once Japan’s ticket to modernization. Now, they might be our key to batting unknown viruses and revolutionizing the pharmaceutical industry.
The advantages were clear:
- Silkworms can express complex proteins difficult to produce in other systems.
- Low cost (just tens of yen per silkworm).
- Scalable from small to mass production.
- Clear and easily understood technology.
Above all, because of Professor Kusakabe’s positive attitude toward commercialization, I decided to start a business once again. We set our future goal to deliver a norovirus vaccine to the world, which is not commercially available yet. I also wanted to make silkworms protein expression system available to researchers around the world, so instead of developing pharmaceuticals independently as a drug discovery startup, we decided on a business model in which we would partner with many pharmaceutical companies and use silkworms to create pharmaceuticals that had never been made before.
Starting KAICO wasn’t without its hurdles. At first, people were skeptical about silkworms as a source of pharmaceutical ingredients. Major companies didn’t take us seriously, and as a startup with no track record, gaining trust was an uphill battle.
Yet, KAICO persevered.
Facing the Pandemic Challenge
In 2019, KAICO was selected as a finalist for “TechCrunch Tokyo 2019”. Standing before an audience of over 1,000, I made a bold declaration: “KAICO will make a vaccine available when we face a pandemic”. Little did I know how soon that prediction would be put to the test.
Did KAICO successfully deliver a vaccine against COVID-19?
In short, no. We successfully developed the spike protein in less than two months with Professor Kusakabe. However, KAICO lacked partnerships with pharmaceutical companies and didn’t have a mass-manufacturing plant for vaccines.
The COVID-19 experience led to a profound reexamination of KAICO’s purpose. We realized that instead of waiting for inquiries from outside, we must take the initiative to create products that the world needs. As a university-oriented startup, our true significance lies in developing and commercializing products that don’t yet exist, using cutting-edge university research. This realization has sharpened KAICO’s focus and determination.
The Edible Vaccine Breakthrough
In a serendipitous discovery, we found that mice fed whole silkworm pupae containing antigens of swine virus showed increased antibody titers, similar to injected vaccines. This unexpected result was replicated with norovirus vaccine proteins, leading to a pivotal decision: the development of “edible vaccines”.
Imagine a world where vaccines can be taken orally, increasing immunity without the need for injections. The potential benefits are enormous:
- No need for medical personnel to administer
- Elimination of syringes and associated waste
- Room temperature storage
- Availability in drugstores for individual use
- Easy global distribution
The impact of edible vaccines extends to animal health and agriculture. It reduces the burden on livestock, farmers, and veterinarians.
The edible vaccine breakthrough has accelerated KAICO’s development. We expanded focus on both liquid (injectable) and powder (oral) vaccines, also for both animals and humans. This approach allows us to prepare for future pandemics. We also constructed GMP-compliant manufacturing facilities for the commercialization of pharmaceutical products.
A milestone achieved
At the end of 2022, we reached a critical milestone. After successful mouse trials, we conducted tests on pigs, the target species for one of our vaccines, with much anxiety and a little hope. The results were remarkable:
- Pigs fed with silkworms containing oral vaccine ingredients showed successful prevention of virus multiplication.
- The control group, not fed the vaccine, showed opposite results.
Based on these results, we are now negotiating with local players in countries where pig farming is thriving, particularly in developing nations where infectious diseases among livestock are prevalent. By preventing infectious diseases and steadily increasing the body weight of livestock, we can contribute to improving the production value of pig farmers.
KAICO is accelerating our business alliances with external parties as our goals have become clear. KAICO has formed a capital alliance with a major Japanese trading company, preparing for overseas sales of feed additives, a preliminary stage of vaccines for animals.
We have also been addressing safety concerns by developing silkworm supplements in partnership with Euglena*, aiming to familiarize the public with silkworms as an edible product before launching pharmaceutical oral vaccines.
* A senior start-up company that is engaged in the healthcare business, including the manufacture and sale of food products)
Changing the World with Silkworms
After four years of intensive research and development, we are ready to work on full-scale commercialization and mass production of our innovative vaccines and pharmaceutical raw materials.
As we expand, our need for silkworms will grow exponentially – potentially reaching hundreds of millions. This presents a unique opportunity:
- Reviving sericulture: We’re partnering with local governments to breathe new life into the traditional silk industry.
- Expanding mulberry fields: Silkworms feed exclusively on mulberry leaves. By increasing mulberry cultivation we are not just feeding our silkworms – we’re contributing to carbon neutrality.
- Boosting local economies: Our initiative will generate revenue and create jobs in rural areas, helping to utilize abandoned farmland and mountainous regions.
We’re committed to maximizing efficiency and minimizing waste. Our partnership with a cosmetics company allows us to utilize discarded silkworm pupae, ensuring that every part of the silkworm serves a purpose.
When the next unknown virus emerges, KAICO will be ready. The protein production power of silkworms, harnessed through our technology, has the potential to change the course of global health crises.
Changing the world with silkworms. It doesn’t sound so exaggerated now, does it?