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

Takara Bio entered into a licensing agreement relating to Oncolytic Virus“Canerpaturev” with Dong-A ST, South Korea

Kusatsu/Shiga Japan – August 22, 2018 – Takara Bio Inc. (Takara Bio), announced today that it
has entered into an agreement with Dong-A ST Co., Ltd. in Seoul, South Korea (Dong-A ST) for
exclusive development and sales of Oncolytic Virus Canerpaturev (C-REV)* in South Korea as ofAugust 22, 2018.
Under the agreement, Dong-A ST is allowed to conduct clinical development of C-REV in South
Korea exclusively. After acquisition for manufacture and sales approval, Dong-A ST will
exclusively sell C-REV in South Korea. In contrast, Takara Bio holds a right to manufacture CREV and supply Dong-A ST with the products under certain financial condition.
Takara Bio will receive upfront and milestone payments from Dong-A ST depending on theachievement of certain development based on the execution of the agreement. Following launch,
Takara Bio will also receive milestone payments upon the achievement of target sales andrunning royalty on net sales in addition to the product supply for compensation. Above upfront
and milestone payments will be up to a maximum total amount of around 300 million yen.
With the aim of early commercialization, Takara Bio advances the clinical development of genetherapies utilizing oncolytic virus and engineered T cells in Japan and overseas. Notably, our plan
is to apply for application of C-REV targeting melanoma for FY2019 in Japan. The impact ofexecuting this agreement is immaterial to the current fiscal year’s financial forecast.
* HF10 has been given an international name as Canerpaturev (C-REV) in March 2018.
＜Reference＞
1. About Dong-A ST Co., Ltd.
Company NameDong-A ST Co., Ltd.
EstablishedMarch 1, 2013
Head Office
64 Cheonho-daero, Dongdaemun-gu, Seoul 02587
CEODaesik Eom
Number of Employees
1,493 (as of March 31, 2018)
Stock Market
Korea Stock Exchange/KOSPIManufacturing and distributing of ethical drugs, etc.
Business Description
Development of new drugs

2. Glossary
Oncolytic virus
Oncolytic viruses selectively replicate within cancer cells and break it down without giving
excessive damage to normal cells. Virus released from cells destructed via such replication
spreads to infect other cells, and further the fragmentation from destructed cancer cells isexpected to lead to the tumor shrinkage even on unadministered tumors by stimulating immunity
to cancer cells. This type of virus is called an oncolytic virus.
Canerpaturev (C-REV)
Canerpaturev is an attenuated strain of the herpes simplex virus 1 (HSV-1) and exhibits antitumor
activity when inserted into a cancerous region. Takara Bio has entered into an exclusive licensing
agreement for domestic co-development and exclusive sales of Oncolytic Virus C-REV with
Otsuka Pharmaceutical Co., Ltd. in December 2016. An international nonproprietary nameassigned to HF10 pharmaceutical products is Canerpaturev made through a review by WHO(World Health Organization).
(Reference) WHO Drug Information, Vol.32, No1, 2018
Melanoma
Melanoma is the malignant type of skin cancer. Skin cells which make the pigment melanin are
called melanocytes, and melanoma is known to be a form of cancer which melanocytes or nevus
cells (cells in mole) become malignant.
Engineered T-cell Therapy
It is a therapy through selective recognition and attack cancer cells by therapeutic genetransduced T cells which are responsible for immune homeostasis.

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