November 5, 2009
Whom It May Concern
KYORIN Co., Ltd.
5, Kanda Surugadai 2-chome,Chiyoda-ku, Tokyo
Securities code; 4569, TSE 1st Section

Execution of License Agreement on Neramexane for Tinnitus
with Merz Pharmaceuticals for Japan Territory
KYORIN Pharmaceutical Co., Ltd. ("Kyorin") (Head office: Chiyoda-ku, Tokyo,President: Keiji Hirai, Ph.D.), a wholly owned subsidiary of KYORIN Co., Ltd., today enteredinto a License Agreement for Neramexane, a tinnitus treatment product currently being
developed in the US and Europe, with Merz Pharmaceuticals GmbH ("Merz") (Head office:Frankfurt am Main, Germany, CEO: Martin Zügel, Ph.D.) for the territory of Japan.
Summary of the Agreement
1)

Kyorin acquires exclusive license rights to develop, manufacture, sell and market
Neramexane in Japan.

2)

Kyorin makes upfront and milestone payments to Merz. Kyorin also pays to Merz
sales-related royalties after commercial sales.

Although tinnitus, characterized by episodes of "ringing in the ears", is a widespreadcondition with a relatively high prevalence, the drugs to alleviate the patients' suffering causedby tinnitus are not enough and the development of such drugs is considered as unmet medicalneeds.
Neramexane is a compound originated by Merz, which has a novel mechanism of action
and is expected to improve the patients' psychological suffering and difficulties in their life
associated with tinnitus by its properties to inhibit the abnormal activity and electric potential of
nerve in the inner ear, nerve and cerebral cortex.
Kyorin hopes to meet unmet medical needs such as improving the quality of life of thepatients suffering from the psychological suffering and difficulties in their life associated withtinnitus by developing this novel compound of Neramexane in Japan in partnership with Merz as
quickly as possible and to contribute to the progress of satisfaction with the treatment of tinnitus.
Kyorin has been committed to company activities based on the Franchise Customer
Strategy focusing on respiratory, ear-nose-throat and urology fields. The company expects thatin-licensing of Neramexane will heighten its presence in the ear-nose-throat field as well as
strengthening its Franchise Customer Strategy.
###Contacts:
Management Planning DepartmentK Y O R I N
C o . ,L t d .
T E L :
3 - 3 2 9 3 - 3 4 1 4
F A X :
3 - 3 2 9 3 - 3 4 5 4

About Tinnitus
Tinnitus is a phenomenon whereby noises are heard in the ear without any apparent external
noise source being present. Tinnitus is categorized "subjective tinnitus" where the noises are
not audible and "objective tinnitus" where some sort of noises actually emanate near the ear,and most of the patients seems to be suffering from the subjective tinnitus.
Tinnitus is a condition with a relatively high prevalence which is caused mainly with decreasein hearing and affects the patients' quality of life such as interfering their daily life and adequet
sleep. The cause of tinnitus has not been sufficiently explained, but the excessive excitationof brain cells and the imbalance between sound stimulation and inhibitory effect in the inner
ear are possible causes.
About Neramexane
Pharmacological Properties: Neramexane is expected to improve the patients' psychologicalsuffering and difficulties in their life associated with tinnitus by inhibiting the excessiveexcitation in the auditory pathway from the inner ear to nerve and cerebral cortex via mainly
its two pharmacological properties.
1) Neramexane inhibits the excessive nerve excitation in the auditory pathway between theinner ear and cerebral cortex via NMDA antagonistic activity.
2) Neramexane inhibits the nerve excitation in the inner ear via nicotinic acetylcholine
receptor antagonistic activity.
Expected Indications: Alleviation of the psychological suffering and difficulties in the life
associated with tinnitus in patients suffering from moderate to severe tinnitus* About NMDA antagonist: "NMDA receptor" is a receptor that receives glutamic acid in
the nerve system which transmits signals between the nerves via glutamic acid, a kind ofamino acid. NMDA antagonist inhibits the excessive excitation of brain cells and nerve
variation.
About nicotinic acetylcholine receptor antagonist: "Nicotinic receptor" is one of two
receptors which acetylcholine binds to. It is known that a lot of nicotinic receptors
categorized α9 and α10 exist in the inner ear. Nicotinic acetylcholine receptor antagonist
inhibits the nerve excitation mainly in the inner ear.
About Merz Pharmaceuticals GmbH
Established in:
1908
CEO:
Dr. Martin Zügel
Headquarters:
Eckenheimer Landstrasse 100, D-60318, Frankfurt am Main, Germany
Revenue:
EUR 610 million (approx. JPY 80 billion) (Fiscal Year 2007)
No. of employees: 2,289 (as of June 30, 2008)
Features:
Merz Pharmaceuticals is an innovative pharmaceutical company
specializing in the research and marketing of drugs for the treatment ofneurological and psychiatric diseases. Merz is leading in the field ofAlzheimer's research and developed the world's first drug for the treatmentof moderate to severe stages of Alzheimer's disease. In the neurologicalsector, Merz also offers drugs for the treatment of Parkinson's anddepression. For more information, visit www.merz.com.