NEWS RELEASE<http://www.takara-bio.co.jp>

Takara Bio has entered into a license agreement with Tasly Biopharmaceuticals
for exclusive development, manufacturing and commercialization ofOncolytic Virus C-REV in China
Kusatsu/Shiga Japan – May 11, 2020 – Takara Bio Inc. (Takara Bio), announced today that it hasentered into a license agreement with Tasly Biopharmaceuticals. Co. Ltd. (headquarters inShanghai, People's Republic of China; hereafter, Tasly) for exclusive development,manufacturing and commercialization of oncolytic viral immunotherapy agent C-REV(canerpaturev) in the People's Republic of China (including Hong Kong and Macao, excluding
Taiwan; hereafter, China).
1. Purpose of the business allianceTakara Bio has already entered into alliances with pharmaceutical companies in Japan and SouthKorea. In order to accelerate development of C-REV in other countries, Takara Bio has granted
Tasly an exclusive license to develop, manufacture and sell C-REV in China.
2. Details of business alliance
Under this agreement, Takara Bio will transfer C-REV manufacturing technology to Tasly andprovide related technical information. Tasly will conduct clinical development of C-REV toobtain regulatory approvals in China as a new anticancer drug.
Takara Bio will receive an upfront payment, annual payments and milestone payments
depending on the achievement of certain development based on the execution of the agreement.
Total upfront and milestone payments will be more than 3 billion yen. Following launch, Takara
Bio will also receive running royalties based on net sales and sales milestone payments on theachievement of target sales.
3. Overview of business partners(1) Company Name
Tasly Biopharmaceuticals. Co. Ltd.
No.280 Juli Road China (Shanghai) Pilot Free Trade Zone,(2) Head Office201203 People's Republic of China
Kaijing Yan(3) Legal representative(4) Main business
Production and sales of biologics
RMB 1,082,571,428(5) Paid-in Capital
As of August 1, 2018(6) Date of Incorporation
October 29, 2001
(7)
Major
shareholders Tasly Pharmaceutical Group (87.75%)(shareholding ratio)
As of March, 2020
4. Future Outlook
This agreement may result in multi-year revenues from the upfront payment, milestone payments
and sales milestone payments on the achievements of target sales (more than 3 billion yen in total).
The expected forecast for the FY2020 ending March 2021 will be under review including otherfactors and published at the same time of the announcement of the financial results of FY2019
ended March 2020 on May 14, 2020.
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Notes on handling this material
Statements contained in these materials with respect to the Company's current plans, forecasts, strategies and beliefs
that are not historical facts are forward-looking statements about the future performance of the Company and its
consolidated subsidiaries. These statements are based on management's assumptions and beliefs in light of information
currently available to it, but are based on a number of assumptions and beliefs derived from information that contains
significant risks and uncertainties. Actual results may differ materially from these forecasts due to various factors.
Factors that could influence actual results include, but are not limited to, economic conditions, especially trends inconsumer spending, as well as exchange rate fluctuations, changes in laws and government systems, pressure fromcompetitors' prices and product strategies, declines in selling power of the Company's existing and new products,
disruptions to production, violations of our intellectual property rights, rapid advances in technology, and unfavorable
verdicts in major litigation.

Contact information
Corporate Development
Department, Takara Bio Inc.
Tel +81-77-565-6970

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