Chiome Bioscience and Chugai Pharmaceutical Announce Research Agreement.

Chiome's ADLib[R] System - a revolutionary monoclonal antibody-generation technology -- speeds innovation in the research and development of therapeutic antibodies

TOKYO -- Chiome Bioscience and Chugai Pharmaceutical Co., Ltd. have signed a joint research agreement for the generation of monoclonal antibodies against multiple target proteins chosen by Chugai Pharmaceutical.

Chiome and Chugai will develop novel value-added therapeutic monoclonal antibodies employing Chiome's ADLib([R]) (Autonomously Diversifying Library) System and will apply the System to assessment of target proteins and lead generation of products for clinical use. Chugai will pay a contractual up-front fee to Chiome and will also pay milestones based on the results of the research. Other contractual conditions were not disclosed. Chiome and Chugai had earlier established a research collaboration agreement in July 2007. This new agreement expands the number of the targets to be addressed and seamlessly extends the term of the collaboration.

Dr. Masaaki Fujiwara, President and CEO of Chiome, stated:

"I am extremely happy that Chugai Pharmaceuticals' assessment of the ADLib System was positive and that this larger multi-year, multi-target joint research agreement has been concluded. Our technology should be able to address recalcitrant antigens for which no specific antibodies have been obtained before. We will also generate innovative antibodies by employing in the collaboration for the first time a novel method for cell-surface presentation of antigens in their native conformations."

Dr. Mikio Arisawa, Senior Executive Director and Leader of the Portfolio Management Unit of Chugai, commented:

"Chugai Pharmaceuticals recognizes the competitive advantages of the ADLib System and so we chose to strengthen our collaborative relationship with Chiome to develop world-class antibody therapeutics. We are expecting the ADLib[R] System to generate positive outcomes and view it as one of the most revolutionary and original platform technologies developed in Japan."

Through this collaboration Chiome and Chugai Pharmaceutical will shorten research lead-times and improve the quality and speed of development of antibody therapeutics by maximizing the synergy between the ADLib[R] System and the capabilities of Chugai's therapeutic antibody research and development team.

Chiome background:

After receiving official authorization as a RIKEN Venture Enterprise, Chiome was established in February 2005 with the aim of commercializing the ADLib([R]) System. The ADLib([R]) System is a revolutionary technology that makes it possible to rapidly generate monoclonal antibodies in vitro by building highly-diversified antibody-presenting, avian B-cell libraries by means of a gene-conversion form of homologous recombination. Since late 2005, Chiome has rapidly and successfully generated highly specific monoclonal antibodies using the ADLib([R]) System that would not have been obtained using conventional methods. Company efforts are now being directed toward forming alliances with multiple global therapeutic companies.

Description of Chiome Bioscience Inc.

Name:                    <
Chiome Bioscience Inc.
Address of head office:  <
Aronia Bldg., 2-39-11 Hongo, Bunkyo-ku, Tokyo
Established:             <
February 8, 2005
Capital:                 <
[yen]517,000,000
Representative:          <
Masaaki Fujiwara, President and CEO
Home Page:               <
http://www.chiome.jp/
                         <

1. ADLib([R]) System:

The ADLib([R]) System is a completely in-vitro process that increases the diversity of antibody-producing avian DT40 cells by means of the activation of spontaneous gene conversion. Monoclonal antibody-expressing cells, which produce highly specific antibodies, can be obtained easily by using antigens conjugated with magnetic beads.

2. RIKEN Ventures:

A RIKEN venture is a for-profit spin-out corporation established by researchers of RIKEN (Rikagaku Kenkyusho), a Japanese national research institute active at the global cutting-edge of science. Each spin-out is focused on a core technology developed by the founding researchers of each company. The main support measures provided to the venture companies by RIKEN include priority in patent filings and preferential implementation and approval of joint research projects.