Nissan Chemical Industries, Ltd. (Head office: Chiyoda-ku, Tokyo; President: Kojiro Kinoshita; hereafter "Nissan Chemical Industries") and Teijin Pharma Ltd. (Head office: Chiyoda-ku, Tokyo, President: Osamu Nishikawa, hereafter "Teijin Pharma") signed a license agreement with Bristol-Myers Squibb Company (NYSE:BMY) (Head office: New York; Chairman and CEO: James M. Cornelius; hereafter "BMS") in the U.S. on March 4 regarding the new drug NTC-801 for treating and preventing cases of atrial fibrillation and atrial flutter invented by Nissan Chemical Industries and jointly developed by Nissan Chemical Industries and Teijin Pharma in Japan.

The drug was discovered by Nissan Chemical Industries and is being jointly developed in Japan with Teijin Pharma. Teijin Pharma has been licensed NTC-801's exclusive development and sales rights in Japan from Nissan Chemical Industries.

The ex-Japan license with BMS covers both NTC-801 and its backup compounds. Substances contained in NTC-801 will be manufactured and supplied by Nissan Chemical Industries.

BMS will pay an initial payment of $40 million when the contract was formally concluded, a total of $170 million for reaching milestones in development and a total of $175 million for reaching milestones in sales, as well as pay royalties on sales.

NTC-801 is currently in phase I clinical trials in Japan.

The agreement is aimed at hastening NTC-801's development for the global market. Nissan Chemical Industries has been researching new medical compounds based on its proprietary precision organic synthesis technology, which has resulted in the commercial launch of calcium antagonist and superstatin cholesterol-reducing drugs.

Teijin Pharma is building a pipeline for drugs used to treat respiratory organs, bones and joints, and metabolic and circulatory organs. The company is expanding its presence in these fields by aggressively introducing new products through solo and collaborative efforts. The agreement will also present Teijin Pharma with the opportunity to collaborate with BMS in drug development in Japan.

About NTC-801

NTC-801 suppresses atrial fibrillation with a novel mechanism - acetylcholine-activated potassium current (IKACh) inhibition - unlike antiarrhythmic drugs currently undergoing clinical use. Since atrial fibrillation only exists in the atrium, NTC-801 selectively acts on the atrium and does not create dangerous adverse reactions, such as inducing ventricular proarrhythmia or depression of cardiac function, as seen with certain antiarrhythmic drugs.

NTC-801 is envisioned as a safe, revolutionary new drug that could redefine the existing class of atrial fibrillation drugs.

Market Needs

1) By 2015, it is estimated that people suffering from atrial fibrillation will number approximately one million in Japan and 8.4 million in the U.S. and Europe. There are reports that the frequency of symptoms increases with age, with approximately 5% of all seniors from age 65 having such symptoms. Patients are expected to increase as populations continue to age.

2) Antiarrhythmic drugs that help to regulate atrial rhythm currently are used for treating atrial fibrillation. These drugs can present problems, however, because they typically act on both the atrium and ventricle. Indications includedangerous ventricular proarrhythmia based on QT prolongation on the ECG and harmful effects on the ventricle, such as depression of cardiac function. An effective and safe drug that avoids these problems is needed.

About Atrial Fibrillation

1) The atrium pumps blood into the ventricle as it returns to the heart. Normally the atrium contracts in rhythm with the heartbeat, between 50 and 100 beats per minute. Atrial fibrillation is a condition in which the atrium contracts irregularly at 400 to 600 beats per minute, rendering the atrium unable to pump blood into the ventricle.

2) When atrial fibrillation occurs, blood clots (thromboses) form within the atrium, and then the clots are carried by the blood throughout the body. This condition presents the greatest risk factor for embolism, particular cerebral embolism. There are indications that atrial fibrillation is also related to increased risk of cardiac necrosis and an exacerbating factor in heart failure. Atrial rhythm control using antiarrhythmic drugs is considered to be an extremely promising drug therapy for inhibiting these life-threatening conditions.

About Nissan Chemical Industries

Since Nissan Chemical Industries was founded in 1887, the company has grown to be a leading manufacturer of a wide range of basic and specialty chemicals, electronic materials, agrochemicals, and pharmaceuticals. More background information on Nissan Chemical is available at the company web site: nissanchem.jp/english/index.html

About Teijin Pharma Limited

Teijin Pharma Limited, the core company of Teijin Group's medical and pharmaceuticals business, focuses on three key therapeutic areas: respiratory, bone/joint, and cardiovascular/metabolic diseases, with about 1,700 employees. Teijin Pharma has strong marketing positions particularly in the respiratory and bone/joint areas with pharmaceutical products and a home healthcare business, including home oxygen therapy (HOT), which has a top market share in Japan. In the cardiovascular/metabolic diseases area, as well as in the other focused areas, Teijin Pharma is trying to enhance its presence through in-licensing and out-licensing products, effective co-developments, and in-house R&D activities. For more information, visit teijin-pharma.jp/english/.

About Bristol-Myers Squib

Bristol-Myers Squibb is a global biopharmaceutical company whose mission is to extend and enhance human life.

Bristol-Myers Squib