NEWS RELEASE

Teijin and Axcelead to Establish Drug Discovery Research Joint Venture
Tokyo, Japan, July 3, 2023 --- Teijin Limited and Axcelead, Inc., announced today that they haveagreed to establish a drug discovery research joint venture company on April 1, 2024. The newcompany will investigate and identify candidate compounds for new drugs, as well as support drug
discovery research. It is expected to grow its drug discovery support services worldwide by leveraging
the combined strengths of Teijin and Axcelead in knowledge, technology and assets.
The two companies concluded a basic agreement on a capital and business alliance in February 2023,
and reached the final agreement regarding the establishment of the joint venture company, including
management items such as investment ratios and organizational structure, on June 30. Thisagreement accords with Axcelead's concept of co-creating drug discovery platforms and responds to
the global trend of horizontal specialization in non-clinical research and new forms of outsourced
research. Axcelead provides drug discovery research support that meets the needs of bio-venturesand other pharmaceutical companies worldwide, thereby helping to strengthen and expand the global
drug discovery business.
Also, Teijin has signed a contract to join the Healthcare New Platform Fund Investment Business
Limited Partnership operated by Whiz Partners Inc., and will invest a total of JPY 2.9 billion to further
promote open innovation, including strengthening collaboration and partnership with Axcelead.
Teijin and Axcelead will own all shares of the new joint venture company, with Axcelead holding 51%
and Teijin 49%, and will jointly decide on issues such as the company’s name and its capital andexecutive structure, including representative directors. The two companies will establish a preparatorycompany promptly to partially utilize or integrate the drug discovery research capabilities, such as
facilities, equipment and personnel, of Teijin Pharma Limited, the Teijin Group's core healthcarecompany. These will serve as the fundamental management resources of the new company using anabsorption-type split scheme, which will become effective April 1, 2024. The business of the joint
venture company will also commence on this date.
Teijin and Teijin Pharma will outsource their experimental scientific research (wet laboratory) functions
in pharmaceuticals to increase the efficiency and speed of new drug development, aiming to create
innovative drugs. In addition, they will utilize the capability and knowledge obtained in early outlicensing of research results to major pharmaceutical companies in Europe and the United States.
Their objective is to establish a new pharmaceutical company business model that meets industry
demand for horizontal specialization in drug discovery research, while generating revenues
independent of their research and development functions.
Teijin Pharma carries out drug discovery research at the Teijin Institute for Bio-medical Research inTokyo. In today's increasingly challenging environment for drug discovery research, the institute isaccelerating innovation in drug discovery by leveraging its proprietary technologies and resources
through collaborations and partnerships with universities and companies in Japan and overseas.

Axcelead owns Axcelead Drug Discovery Partners Inc. (Axcelead DDP), which commenced
operations in July 2017, and inherited Takeda Pharmaceutical Company Limited's drug discovery
platform business. Axcelead DDP, which possesses nearly all required capabilities for drug discovery,provides one-stop non-clinical drug discovery research services ranging from drug-target discovery
to optimization of drug candidate compounds, as well as processes for bridging to clinicaldevelopment.
About the Teijin GroupTeijin (TSE: 3401) is a technology-driven global group with two core businesses: high-performancematerials and healthcare solutions. Established in 1918 as Japan’s first rayon manufacturer, Teijin
today comprises some 170 companies employing 20,000 people in 20 countries. Through “HumanChemistry, Human Solutions,” Teijin relentlessly strives to aims to be a company that supports thesociety of the future by protecting the global environment and addressing the needs of people andcommunities. Teijin posted consolidated sales of JPY 1,018.8 billion (USD 7.6 billion) and total assetsof JPY 1,242.4 billion (USD 9.2 billion) in the fiscal year ending March 31, 2023.
Visit www.teijin.com.
About Axcelead
Axcelead, Inc. (“Axcelead”) represents a holding company which owns a group of companies which
are developing a world-class healthcare platform for drug discovery. Axcelead DDP, Japan’s first
integrated drug discovery solution provider, functions as the core company of the Axcelead group thattook over Takeda Pharmaceutical Company Limited's drug discovery platform business in 2017.
ARCALIS has become Japan's only one-stop contract drug development and manufacturingorganization (CDMO) for RNA therapeutics.
Axcelead also owns A-Digital which was established through the partial transfer of business fromHitachi High-Tech Corporation in order to develop a drug discovery digital platform to increase drug
discovery efficacy by 100 times by promoting the digitalization of all drug discovery processes, andthe American company, PassPort Technologies, Inc. in San Diego, California (“PassPort”). PassPort
is a company that develops combination products of active pharmaceutical ingredients and medical
devices based on next-generation transdermal drug delivery technology. Axcelead will promote thedrug discovery ecosystem in Japan and will make various contributions to healthcare broadly andglobally.
For more information on Axcelead, please visit the company’s website at https://www.axceleadhd.com
Press Contact
Investor and Public Relations Department
Teijin Limited+81 (0)3 3506 4055
pr@teijin.co.jp
Corporate Communications Department
Axcelead, Inc.
contact@axcelead-hd.com