News Release

Yamanouchi Pharmaceutical Co., Ltd.

Yamanouchi Restructures Its Partnership with Pfizer

May 31, 2004

Tokyo -May 31, 2004- Yamanouchi Pharmaceutical Co., Ltd. ("Yamanouchi"; President and CEO: Toichi Takenaka) announced that it has reached a new agreement with Pfizer Inc. ("Pfizer"; headquarters: New York, USA; CEO: Henry A. McKinnell) in order to restructure the existing partnership between the two companies in Japan.

The new agreement reaffirms the two companies' commitment to continuing their ongoing collaboration on COX-2 inhibitors which are now under joint clinical development in Japan. At the same time, it assures both companies greater freedom in independently developing and marketing their own products. To achieve this, the new agreement terminates a comprehensive research and development agreement between the two companies and releases Yamanouchi from its obligation under a license agreement between the two companies to provide Pfizer a quid pro quo product.

Under the new agreement:

  • Yamanouchi and Pfizer reaffirm that they will co-develop and co-promote the COX-2 inhibitor compounds valdecoxib* and parecoxib* in Japan. The arrangements will be similar to the existing arrangements for celecoxib*, another COX-2 inhibitor, whose NDA has been filed in Japan. The valdecoxib and parecoxib compounds will be co-developed by Yamanouchi and Pfizer, distributed by Yamanouchi and co-promoted by the two companies under a single brand name in Japan.
  • Yamanouchi's right under a research and development agreement to develop and market compounds arising from research and development activities by Searle (now a subsidiary of Pfizer) is terminated.
  • Yamanouchi is released from its obligation to provide Pfizer a new candidate compound discovered and developed by Yamanouchi. This obligation was part of the 1993 Japan license agreement between the two companies for Lipitor. Yamanouchi and Pfizer will continue to co-promote Lipitor in Japan.

*Valdecoxib, parecoxib and celecoxib are non-proprietary names