News Release

Yamanouchi Pharmaceutical Co., Ltd.

Yamanouchi Licenses the Drug for Alzheimer's Disease PYM50028 from Phytopharm of the UK

May 1, 2003

Tokyo, Japan - May 1, 2003 - Yamanouchi Pharmaceutical Co., Ltd. (President: Toichi Takenaka) announced that it concluded a license agreement regarding PYM50028, a drug for Alzheimer's disease, with Phytopharm plc (Chief Executive: Richard Dixey) of the UK. The agreement gives Yamanouchi the exclusive license to develop, manufacture and market PYM50028 as a drug for Alzheimer's disease in Japan and some other Asian countries. The agreement also gives Yamanouchi options to develop, manufacture and market it as a drug for other diseases such as Parkinson's disease and cerebrovascular dementia.

Information and stimuli among neurons in the brain are transmitted through a binding of neurotransmitters to their receptors on the cell surface. In patients with Alzheimer's disease, cerebral neurons are degenerated for some reason, resulting in the impairment of receptor-mediated neurotransmission. PYM50028 is a compound discovered and synthesized through research of plant-derived substances by Phytopharm. Pre-clinical studies have shown that it protects cerebral neurons and increases receptors for neurotransmitters reduced due to aging. Based on these findings, PYM50028 is expected to be promising as a therapeutic agent for neurodegenerative diseases such as Alzheimer's disease.

At present, Phytopharm is conducting Phase I studies in the UK and aims at global development and commercialization in the future. Yamanouchi will carry out its clinical development in Japan and other Asian countries based on the agreement.

Alzheimer's disease is a neurodegenerative disease associated with cerebral atrophy. It is characterized by pathological changes such as neurofibrillary degeneration, senile plaques, and neuronal deaths. It usually occurs in persons past middle age or elderly persons. Cognitive function disorders such as disturbance of memory progress gradually, and patients show abnormal behavior such as poriomania and speech disorders such as aphasia. The number of patients with Alzheimer's disease is estimated to total 0.8-1 million in Japan at present, and the number is expected to increase in the future with aging of the population.

Phytopharm plc
Established in: 1990
Location: Godmanchester, Cambridgeshire, United Kingdom
Representative: Dr. Richard Dixey, Chief Executive
Number of employees: 35
Business: Phytopharm is engaged in the development of drugs based on botanical science. It discovers new drugs for chronic and poorly understood diseases through research of traditional medicine and medicinal plants from all over the world. Novel modes of action are discovered in active ingredients, which are analyzed, extracted and synthesized in the research.