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Execution of an Exclusive Patent License and Collaborative Research and Development Agreement with Merck & Co.,Inc. in the Field of Infectious Diseases

January 30, 2008

Kyorin Pharmaceutical Co., Ltd. (Tokyo, President: Ikuo Ogihara), a subsidiary of Kyorin Co., Ltd., announces that it has entered into an Exclusive Patent License and Collaborative Research and Development Agreement with Merck & Co., Inc. (Whitehouse Station, New Jersey.

Since 1998 Kyorin and Merck have been making the collaborative research in the infectious disease field in order to discover synthetic antibacterial agents for the treatment of community-acquired pneumonia and severe nosocomial infections, and upon the expiration of such collaborative research, both parties agreed to research synthetic antibacterial agents with new mode of action to meet the current medical needs in the field of infectious diseases, referring to the outcome of such collaborative research.

The term of collaboration program under this Agreement is three years. Both parties will establish a joint steering committee to manage and control the collaboration program, and assess and select the candidate compounds for further development.

Since the infectious disease field is one of Kyorin's most important research fields, Kyorin strongly anticipates that this collaborative research with Merck will enhance its discovery research ability and accelerate its research activities.

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