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Kissei, Dainippon Conclude Licensing Agreement

March 17, 2005

Kissei Pharmaceutical announced March 15 that it has concluded a licensing agreement with Dainippon Pharmaceutical for KGA-2727, Kissei's proprietary candidate compound for diabetes drug. Under the terms of the agreement, Dainippon will receive the rights to develop and market KGA-2727 in Japan, and Kissei will receive upfront and milestone payments. Kissei will retain the rights to develop, manufacture and market outside Japan.

Japan Corporate News Network (http://www.japancorp.net/Article.Asp?Art_ID=9621)