November 1, 2016
Press release
Company name: Mitsubishi Tanabe Pharma Corporation
Representative: Masayuki Mitsuka
President and Representative Director
Code number:Contact:4508, First Section, Tokyo Stock Exchange
Yoshifumi Mifune, General Manager,
Corporate Communications Department(TEL: +81-6-6205-5211)

Mitsubishi Tanabe Pharma Takes on the Challenge of Cell Therapy
with the Conclusion of an Invossa® Licensing Agreement with Kolon Life Science
Aiming for therapy that addresses unmet medical needs in the treatment of knee osteoarthritis

Mitsubishi Tanabe Pharma Corporation (Head Office: Osaka, Japan; President and Representative
Director: Masayuki Mitsuka) and Kolon Life Science, Inc. (KLS) (Head Office: Gwacheon, Republic ofKorea; CEO, Woo-Sok Lee) have concluded a licensing agreement for Invossa®, a cell therapy
product for improvement of symptoms of knee osteoarthritis. Through this agreement, Mitsubishi
Tanabe Pharma will acquire exclusive development and commercialization rights for Invossa® inJapan.
Invossa® is an allogeneic human chondrocyte product and was discovered by TissueGene, Inc. (TGI),an affiliate of KLS. Intra-articular injection of Invossa® improves pain in knee osteoarthritis patients. Inaddition, Invossa® is expected to delay the progression of cartilage destruction. KLS has completed
phase 3 clinical trials in Korea, and in July 2016 KLS filed an application with Ministry of Food andDrug Safety in Korea for biologic manufacturing approval. In the United States, TGI has completed
phase 2 trials, and preparations for phase 3 trials are under way. Mitsubishi Tanabe Pharma plans toadvance development in Japan for an indication of knee osteoarthritis, including evaluation of delaying
in the progression of cartilage destruction.
The Company is aiming to address unmet medical needs for patients with knee osteoarthritis throughInvossa® as well as MT-5547 (NGF antibody, fasinumab), which is currently under development.
Under this contract, the Company will make an upfront payment to KLS of ¥2.5 billion. In addition, KLS
will receive development and sales milestone payments and running royalties in accordance with thelevel of sales. The influence of this contract on the Company’s results has already been reflected.
In accordance with the key concept of the Medium-Term Management Plan 16-20: Open Up theFuture, moving forward Mitsubishi Tanabe Pharma will take on challenges to foster the delivery of newdrugs.
There’s no impact to the current financial forecast.

EndAbout Invossa®
Invossa® is a type of cell therapy. The source for Invossa® is cartilage tissue collected from allogeneic
donors. Cartilage chondrocytes that have been isolated and cultured are combined with geneticallyengineered cartilage chondrocytes transduced with transforming growth factor TGF-β1, and thetherapy is administered through intra-articular injection. Invossa® was developed as a treatment agentfor knee osteoarthritis. The knee
osteoarthritis is primarily causedby change in the joint due toaging-related loss of elasticity injoint cartilage, which is wornaway by physical friction. Themain symptoms include knee
pain, swelling, and limits on
range of movement. Current
treatment agents are principally
aimed at pain relief, and there
are no agents with indications
for delaying the progression ofthe disease.
Invossa® increases the engraftment of the cultured cartilage chondrocytes, which are administeredthrough intra-articular injection at the same time as the genetically engineered cartilage chondrocytes
transduced with TGF-β1. In addition, these chondrocytes improve cartilage metabolism abnormalities.
In this way, Invossa® provides effective pain relief, and furthermore it is expected to delay theprogression of cartilage damage. In the phase 3 clinical trials in Korea implemented by KLS, withthese results, KLS filed an application for biologic manufacturing approval with Korea’s Ministry ofFood and Drug Safety in July 2016

Overview of Mitsubishi Tanabe Pharma
Mistubishi Tanabe Pharma, which was founded in 1678, has its headquarters in Doshomachi, Osaka,
which is the birthplace of Japan’s pharmaceutical industry. With business centered on ethicalpharmaceuticals, Mitsubishi Tanabe Pharma is a well-established company and has the longest
history of any listed company in Japan*. In accordance with the corporate philosophy of “contributingto the healthier lives of people around the world through the creation of pharmaceuticals,” theCompany formulated the key concept of Open Up the Future under the Medium-Term Management
Plan 16-20. Through the discovery of drugs that address unmet medical needs, centered on its prioritydisease areas — autoimmune diseases, diabetes and kidney diseases, central nervous systemdiseases, and vaccines — Mitsubishi Tanabe Pharma will strive to contribute to the health of patientsaround the world.
http://www.mt-pharma.co.jp/* Research by TOKYO SHOKO RESEARCH, LTD.

Overview of Kolon Life Science
Kolon Life Science has been developing innovative cell and gene therapies including Invossa, theworld's first cell-mediated gene therapy for osteoarthritis, since its founding in 2000. In addition to its
biopharmaceuticals business, the company is also engaged in the business of providing active
pharmaceuticals ingredients (API), eco-chemicals including antimicrobials for personal-care andindustrial applications, as well as water-treatment solutions. For more information, please visit
http://www.kolonls.co.kr/eng/