News Releases

February 28, 2001

Dainippon and Takeda Form an Alliance on a Gastroprokinetic Agent

OSAKA, JAPAN --- Dainippon Pharmaceutical Co., Ltd. ("Dainippon", President: Kenjiro Miyatake) and Takeda Chemical Industries, Ltd. ("Takeda", President: Kunio Takeda) jointly announced today that on February 28,2001,they signed a preliminary agreement that Takeda will receive the development and marketing rights of Dainippon's gastroprokinetic drug, mosapride citrate, for the world except Japan, China, Taiwan and South Korea.

Mosapride citrate is the world's first selective serotonin 5-HT4 receptor agonist which enhances gastrointestinal motility. In Japan, Dainippon launched mosapride citrate (GASMOTIN®) in October 1998 as the drug for lessening symptoms associated with chronic gastritis, such as heart burn, nausea and vomiting.

Dainippon believes that mosapride citrate is a strategically important product for their pharmaceutical Business. It was licensed out to Daewoong Pharmaceutical Co., Ltd. of South Korea in April 1999, and through development by Dainippon, it will be launched in China this spring. Dainippon and AstraZeneca terminated the licensing agreement regarding U.S./ European developmentand marketing rights of this drug.

Takeda has been marketing lansoprazole, a treatment for acid related gastrointestinal diseases in over 90 countries, and evaluates that mosapride citrate will be beneficial to expand their gastrointestinal product line for their global business activities.