Shionogi USA in the News
October 23, 2001
Shionogi & Co., Ltd.

Final agreement reached on GSK-Shionogi Joint Venture
On July 24, 2001, Shionogi & Co., Ltd. and GlaxoSmithKline plc (GSK) signed a letter of intent to establish joint ventures (JV) to develop and market their compounds, such as new agents to fight against HIV and neurological disorders. As a result of negotiations following the letter of intent, the two firms have reached a final agreement, including newly added items mentioned below. The outline of the final agreement is as follows:

1. Date of final agreement and commencement of JV operation: October 19, 2001

2. Names of companies to be founded:

(1) Shionogi-GlaxoSmithKline Pharmaceuticals LLC

A joint venture company located in Delaware, USA. To be engaged in arranging development, manufacture and marketing in the USA

(2) Concerning the JV project in Europe, the establishment of a new joint venture company to engage in marketing will be considered, while taking into account the progress of the JV's compound portfolio

3. Operation of the joint venture company in the USA

The Executive Committee (comprising members selected from Shionogi and GSK) will serve as the top decision-making entity. Compound development will be supported by employees from the two companies, and by outsourcing. As to marketing, new marketing staff will be employed in keeping with development of JV's compound portfolio.

4. Compounds contributed to JV

As previously announced, five compounds will be entrusted to the JV, comprising four Shionogi compounds: S-1360, an HIV integrase inhibitor for HIV infection; S-8510, a benzodiazepine partial inverse agonist for dementia; S-0139, an endothelin-A-receptor antagonist for hemorrhagic and ischemic stroke; and S-1746, an AMPA receptor antagonist that also acts at the glycine-site of the NMDA receptor, for stroke and head injury; and one GSK compound, SB234551; an endothelin-A-receptor antagonist for stroke. Development in the USA will be given priority. New drug applications will be filed in areas other than the USA in compliance with ICH regulations.

References
GlaxoSmithKline plc

Headquarters: Berkeley Avenue, Greenford, Middlesex UB6 ONN England

Capital: GBP 13,343 million

Representative: Dr. JP Garnier, CEO

Sales: GBP 18,079 million (fiscal year ending December 2000)

Shionogi & Co., Ltd.

Headquarters: 3-1-8 Doshomachi, Chuo-ku, Osaka City, Osaka

Capital: JPY 21,279 million

Representative: Motozo Shiono, President

Sales: JPY 215,894 million (fiscal year ending March 2001)