What's New

June 22, 2004, Tokyo; Toyama Chemical Co., Ltd. (President and CEO: Katsuhiko Nakano) and Schering-Plough Corporation (Chairman and CEO: Fred Hassan) announced today that they have entered into a license agreement with respect to T-3811 (generic name: garenoxacin), a new-type quinolone synthetic antibacterial agent under development by Toyama Chemical. Under this agreement, Toyama Chemical has granted Schering-Plough the rights to develop, use, and sell garenoxacin worldwide.

Overview of the agreement

1. Toyama Chemical will grant Schering-Plough Corporation exclusive rights to develop, use, and sell garenoxacin worldwide, excluding Japan, South Korea, and China.
2. Toyama Chemical has exclusive rights to develop, use, and sell garenoxacin in Japan, South Korea, and China.
3. Toyama Chemical will supply Schering-Plough Corporation with bulk product and Schering-Plough will manufacture the finished product for its markets.
4. Toyama Chemical will receive a payment of US$80 million for the signing of this license agreement.
5. Toyama Chemical will also receive additional milestone payments totaling up to US$245 million based on certain development and commercial milestones being reached.
6. In addition, Toyama Chemical will receive royalties based on the net sales of garenoxacin by Schering-Plough.

About T-3811

Originating to Toyama Chemical, T-3811 is a new-type quinolone synthetic antibacterial agent, previously licensed out to the US firm Bristol-Myers Squibb. Bristol-Myers Squibb had conducted the clinical trials on a worldwide basis, from which T-3811 is expected to contribute to therapy in the wide range of field including respiratory and surgical infection. Toyama Chemical reacquired all rights pertaining to T-3811 from Bristol-Myers Squibb in October 2003, due to Bristol-Myers Squibb's commercial strategy reasons. As was press-released, the Letter of Intent with Schering-Plough was made on March 31, 2004, establishing the basic framework of this license agreement. Since then, both parties have been discussing the terms of the definitive licensing agreement, and the parties have been able to conclude this agreement as originally scheduled.

As Schering-Plough indicated when the letter of intent was announced, the company expects the addition of garenoxacin to broaden the anti-infective portfolio it is developing. Schering-Plough said this is in line with its strategy to build strength in its global franchises through internal research and external licensing opportunities.

Katsuhiko Nakano, president and CEO of Toyama Chemical stated "We are very glad to conclude the license agreement on garenoxacin with Schering-Plough. Through our collaboration with Schering-Plough, we look forward to bringing garenoxacin, the novel antibacterial compound, to the market and contributing to the advance of anti-infective therapy worldwide." He added, "With this collaboration, we would like to establish a good relationship with Schering-Plough. We see this as being important as we gain experience to undertake other similar collaborations in the future."

Toyama Chemical Co., Ltd. constantly strives to supply the world with innovative treatment methods for infectious diseases. In collaboration with Schering-Plough Corporation, Toyama Chemical aims to achieve early approval and rapid growth for T-3811 overseas and in Japan.