OTSUKA TO SELL BMS' DIABETES DRUG IN JAPAN

Bristol-Myers Squibb (BMS) and Otsuka Pharmaceutical today announced Otsuka has been granted exclusive rights in Japan to develop and commercialize the investigational compound saxagliptin, being studied for the treatment of Type 2 diabetes. Saxagliptin, discovered by BMS, is a dipeptidyl peptidase-4 (DPP-4) inhibitor currently in Phase III development in the U.S. and Europe.

Terms of the agreement include an upfront payment by Otsuka to BMS. BMS will receive milestone payments based on certain regulatory events, as well as sales-based payments following regulatory approval of saxagliptin in Japan. BMS also retains rights to co-promote saxagliptin with Otsuka in Japan. Under the licensing agreement, Otsuka will be responsible for all development costs in Japan.

"Otsuka has endeavored to contribute to better health worldwide through innovative pharmaceutical products that address unmet medical needs. Our antipsychotic agent Abilify has provided us with an opportunity to work closely with Bristol-Myers Squibb, and we are pleased to enhance this partnership and take on responsibility for the development and commercialization of saxagliptin in Japan," said Tatsuo Higuchi, president and representative director, Otsuka Pharmaceutical.