Good morning, ladies and gentlemen. I am Christopher Cargill, Representative Executive Officer, President and CEO. Thank you very much for taking the time to attend today's meeting. In accordance with Article 15, Paragraph 1 of the Articles of Incorporation, I am pleased to chair this annual general meeting. The 35th Ordinary General Meeting of Shareholders of Nxera Pharma Co. Ltd. will now come to order. As already announced, this general meeting is streamed live to shareholders. We will not film shareholders in attendance, but we ask that you understand that your comments will be broadcast live and that you refrain from giving your name. Please note that shareholders viewing the event may experience problems with video and audio due to network environment, computer settings, concentrated access, and other reasons. We also kindly ask all shareholders to refrain from taking photos, recording, or saving audio and video.
Questions and comments from the shareholders will be collectively accepted after all reports on reporting matters and explanations of the contents of the resolution matters have been completed. If shareholders in attendance have any questions or comments, please do so from the microphone on the stand nearby. In the event of an earthquake or other unforeseen events during the proceedings, please remain calm and follow the instructions of our staff. Furthermore, in cases where consideration must be given to the safety of shareholders, we may assign Director Tamura, whose native language is Japanese, as Chairman and give priority to voting on resolutions. We ask you for your understanding. The contents of the reporting matters at today's general meeting of shareholders are as set out in the convocation notice provided on the company's website, but in accordance with the law and the Articles of Incorporation, no printed materials have been sent.
The contents are projected on the front screen, which you are kindly asked to take a look. You can also find the Convocation Notice provided on the company's website via your smartphone. First, the Secretariat will report on the number of shareholders attending the meeting and the number of voting rights held by them. Let me report. Of the total 26,233 shareholders, those entitled to vote at the general meeting are 24,081, and the number of voting rights is 898,544. The number of shareholders, including those attending the meeting today or exercising their voting rights via the internet or by post, is 9,650, and the number of voting rights is 567,622. This concludes my report. Thank you. As reported by the Secretariat, I am pleased to report that the quorum required to consider today's agenda is present.
First, I would like to ask the Chair of the Audit Committee, Mr. Rolf Soderstrom, to report on the results of the audit. The report will be in English, and translation will be provided into Japanese. I would like to ask you to please turn your attention to Mr. Rolf, Chairman of the Audit Committee.
I am Rolf Soderstrom, Chairman of the Audit Committee. I would like to report on the results of the audit conducted by the Audit Committee. The Audit Committee audited the performance of the duties by the directors and executive officers during the 35th fiscal year from January 1st, 2024 to December 31st, 2024. The results of the audit are as stated in the Audit Committee audit report on page 85 of the notice of the 35th Ordinary General Meeting of Shareholders.
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The committee found that the business report and supplementary schedules accurately present the status of the company in accordance with the laws, regulations, and Articles of Incorporation.
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The committee did not find any inappropriate conduct related to the execution of duties by directors or executive officers or any material facts indicating violation of laws and regulations or the Articles of Incorporation.
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The committee found that the contents of the resolution of the Board of Directors related to the system of internal control to be appropriate.
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In addition, the committee did not find any matter requiring it to comment on the contents of the business report or execution of duties by directors or executive officers regarding the system of internal control.
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With regard to the consolidated financial statements, financial statements, and their accompanying supplemental schedules, the committee found that the methods and results of the audit performed by the independent auditors, Ernst & Young Shin Nihon LLC, were appropriate. This is the report from the committee. Thank you.
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Thank you, Chairman Rolf of the Audit Committee. Next, let us move on to the matters to be reported and the explanation of the business outlook. The matters to be reported at this AGM are as written in the convocation notice. Its summary and the future business outlook will be explained. Please turn to slide eight. The revenue was JPY 28.8 billion last year. PIVLAZ sales grew significantly, and the progress of partnered products, including EP4 agonist, was favorable. Core operating profit was JPY 3.6 billion. In addition to increasing revenue, cost was lower than estimation as the integration-affiliated investment progressed. To ensure stable supply of QUVIVIQ, we purchased API equivalent to 1.5 years of supply in advance, and the cash balance is temporarily decreasing. We will continue to maintain a sufficient amount of cash and deposit. Please turn to slide nine.
As we envision to become a biopharma company leading next generation, we set five priority objectives for FY 2025. Firstly, target JPY 70 billion-plus net product sales in PIVLAZ and QUVIVIQ to achieve robust Japan APAC business. Secondly, acquire or in-license at least one late-stage medicine as a future growth driver for the Japan APAC market, excluding China. Thirdly, execute at least one new major partnership and initiate at least one new in-house phase II study. Fourthly, invest in systems and applications for efficiency and scalability. Lastly, achieve positive operating profit under IFRS (if GPR 52 option is exercised). Please turn to page 10. PIVLAZ has become the standard of care to prevent cerebral vasospasm post-operative aSAH. While its market share is already 70%, we will strengthen its position and target a 7% increase year-on-year in sales as the minimum line.
QUVIVIQ, which we partnered with Shionogi, began marketing at the end of last year. As of last year, the sales reached over JPY 1 billion as our company. This year, we expect an over 200% increase in sales year-on-year. Please turn to slide 11. Our pipeline has many exciting developments planned for this year. The company has three in-house developed drugs in phase I: an EP4 agonist, EP4 antagonist, and GPR 52 agonist. All of them are expected to complete phase I trials or advance to phase II this year. In our collaboration with Neurocrine , M4 agonist is scheduled to advance to a phase III trial in schizophrenia in the first half of this year. A phase II trial for an expanded indication in bipolar disorder is scheduled to begin in the second half of this year.
A phase II trial of an M1 M4 dual agonist is also scheduled to begin in the second half of the year. Furthermore, as announced recently, mGlu5 NAM, developed by Tempero Bio, has begun phase II clinical trials for the treatment of alcohol abuse. As a result, our entire pipeline is expected to shift further into late-stage development this year. Please turn to slide 12. This is a list of events for this year, but there are many more planned besides the ones I mentioned. All our employees will continue to work hard to provide you with good news in the future. Please turn to slide 13. We have an extensive pipeline. Ranging from research to early and late-stage clinical trials. If development progresses smoothly, the products described in Wave 1 are expected to be launched by 2030, and those in Wave 2 by 2035.
Since all these developments are being carried out in areas with extremely large market sizes, enormous royalty income can be expected even if only one of them is successful. Please turn to slide 14. This is our vision up to 2030. Even if we were to exclude the Wave 1 and Wave 2 pipelines, which have enormous potential, as mentioned earlier. B y 2030, we will have established a system that will enable us to steadily generate revenue of at least JPY 50 billion from existing products, new products, and upfront payments and milestones. At the same time, we aim to achieve a profit margin of 30% or more, excluding royalties from Wave 1 . By adding royalties from Wave 1 and Wave 2 to this core revenue and profits, we will become one of the most profitable biopharma companies in Japan.
All our employees own shares in our company in some form, and sometimes we get excited or disappointed about the stock price, but at the same time, we realize that the stock price does not reflect the true nature of the company at all. Some of our shareholders may remember when our share price was JPY 30. If just one of the 30 programs we have underway is successful, things could improve dramatically. We have a tremendous opportunity, and I believe the company is growing in value even if the current stock price does not reflect that. There is plenty of room in Japan for one more biotech company to achieve a market cap of JPY 1 trillion. Forty years ago, Japan produced about 30% of the world's new medicines, but now it is around 5%.
It is our responsibility to show the world that Japan can produce successful biotech companies. I am convinced that doing so can greatly change the current situation in Japan. Japan is one of the best countries in the world, and I want to make Nxera, not an American, but a Japanese company, a successful biotech company on the world stage. This is what we are trying to achieve. We will continue to drive our business forward in 2025 so that we can achieve this 2030 vision as soon as possible. This concludes my presentation and explanation of future business prospects. I now move to proposals. We will take questions for the items to be reported at the end. For the details of the proposals, please refer to the convocation notice published on the website.
I move to proposal number one, reduction of the amount of legal capital surplus and disposition of surplus. The company intends to reduce the entire legal capital surplus and dispose of retained earnings in order to allow the company to flexibly implement measures conducive to increasing shareholder value in the future. There is no change to the total number of outstanding shares and net asset amount. The content of the change is as described in the convocation notice. I move to proposal number two, partial amendment to the Articles of Incorporation. In accordance with the amendment, AGM can be held virtually without defined location by stipulating in the Articles of Incorporation. As the company believes that expanding the methods of holding AGM gives us the flexibility to respond to situations conducive to all shareholders, we propose to establish new Article 12, Paragraph 2 of the Articles of Incorporation.
The content of the amendment is as described in the convocation notice. I move to proposal number three, election of eight directors. The term of office of all of current nine directors will expire at the conclusion of the meeting. In accordance with the decision by the Nomination Committee, I would like to propose the election of the following eight directors. The candidates are David Roblin, Noriaki Nagai, Rolf Soderstrom, Miwa Seki, Eiko Tomita, Naoko Shimura, Nicola Rabson, and myself, Chris Cargill. Eight directors in total. The career summary of each candidate is written in the convocation notice. We would now like to take the votes on agenda item one, reduction of the amount of legal capital surplus and disposition of surplus. The contents of this proposal are as explained earlier. Please applaud if you are in favor of this proposal. Thank you very much.
As we have received a majority of votes in favor, including those exercised via the internet or in writing, this proposal was approved and adopted as originally proposed. Thank you very much. Next, proposal two, partial amendment of Articles of Incorporation will now be put to a vote. The content of this agenda item are as explained earlier. Please applaud if you are in favor of this proposal. Thank you very much. As we have received over two-thirds of votes in favor, including those exercised through the internet or in writing, this proposal was approved and adopted as originally proposed. Thank you very much. Next, proposal number three, election of eight directors will now be put to a vote. The contents of this agenda item were explained earlier. Please applaud if you are in favor of this proposal. Thank you very much.
As we have received a majority of votes in favor, including those exercised via the internet or in writing, this proposal was approved and adopted as originally proposed. Thank you very much. Having concluded all matters for which the general meeting was convened, the 35th Ordinary General Meeting of Shareholders of Nxera Pharma Co. Ltd. is now adjourned. Thank you very much. A reception is scheduled after this. It will be held in the Hikari-n o-Ma room on the third floor. We look forward to talking to our shareholders who can attend. Now, I would like to introduce our new directors, Ms. Naoko Shimura and Ms. Nicola Rabson. Ms. Naoko Shimura.
This is Naoko Shimura. Thank you very much.
Ms. Nicola Rabson.
ニコラ・ラボソンでございます。よろしくお願いいたします。
Thank you, Directors Naoko Shimura and Ms. Nicola Rabson . Directors and Executive Officers, please rise. Thank you very much for your attendance today.
We will work together to further enhance our corporate value, and I appreciate your continued support.