Press Release

TSD JAPAN OBTAINS THE RIGHTS TO LICENSE AND CO-DEVELOP COLAL-PRED(R) IN JAPAN FOR ULCERATIVE COLITIS FROM ALIZYME THERAPEUTICS LIMITED

OSAKA, Japan – November 30, 2007 -- TSD Japan Inc. (Osaka, Japan; CEO Osamu Shiho) is pleased to announce that TSD Japan has entered into a license agreement with Alizyme Therapeutics Limited (Cambridge, United Kingdom; CEO Tim McCarthy) to co-develop COLAL-PRED® for the treatment of ulcerative colitis in Japan.
With the signing of this agreement, TSD Japan has obtained the rights to license and co-develop COLAL-PRED® in Japan up through the end of Phase II clinical trials. The agreement provides that Alizyme and TSD Japan share the development costs and that in the event of the licensing-out of COLAL-PRED® to a pharmaceutical company in Japan, both companies share in the received milestone and royalty payments.

 COLAL-PRED®

COLAL-PRED® is a prednisolone derivative developed utilizing Alizyme’s proprietary DDS (Drug Delivery System) technology called COLAL®. This unique DDS technology enables this potent anti-inflammatory drug to travel through the gastrointestinal tract unchanged until it reaches the colon where certain enterobacteria then digest the specially designed coating on the drug pellets and release it for a localized effect. This targeted delivery of this potent anti-inflammatory agent is expected to reduce the frequency and severity of adverse events that can be caused by systemically administered steroids. Alizyme is currently conducting a Phase-III study in Europe and has recently entered into an agreement with the US –based company Prometheus for development of COLAL-PRED® in North America. Alizyme and TSD plan to start a joint Phase-I study in Japan in 2008.

 TSD Japan, Inc.

TSD Japan is a bio-venture company established in July 2005. Its business focuses include partnering activities that involve in-licensing pharmaceutical drug candidates from companies both at home and abroad for potential development in Japan and, after completion of some basic clinical studies, out-licensing these candidates for further development and eventual marketing. The company also provides a wide range of integrated CRO services.
For further information on TSD Japan, please refer to: http://www.tsd-japan.co.jp

 Alizyme Therapeutics Limited

Alizyme is a specialty pharmaceutical development company based in Cambridge, UK. It has a portfolio of products that include those for gastrointestinal disorders, obesity and mucositis. In the area of anti-obesity products, a license agreement has been signed between Alizyme and a major domestic pharmaceutical company.
For further information on Alizyme, please refer to: http://www.alizyme.com/alizyme/

 Ulcerative Colitis

Ulcerative colitis is a type of inflammatory bowel disorder in which mucosal erosions and abscesses form in the colon mucosa. The cause is unknown. The clinical presentations of ulcerative colitis are diarrhea, rectal bleeding and frequent abdominal pain. The inflammation characteristically starts in the rectum but can then proceed upwards and can eventually involve the entire colon. Patients with ulcerative colitis usually have alternating periods of acute illness and remission during the course of the disease, but the condition is usually chronic. This disease has been on the official MHLW list of intractable diseases since 1975. The accumulative number of those who have received medical care for this condition was approximately 85,000 in 2005, but the number is steadily increasing with 5,000 new cases being reported each year.

 Mr. Tim McCarthy, Chief Executive Officer Alizyme commented:

"We are delighted to enter into this strategic agreement with TSD in Japan, which is exemplified by our co-development of COLAL PRED® as the first step in our partnership. We have maintained a strong relationship with Dr Shiho, the CEO and founder of TSD, following his time with Takeda Pharmaceutical Company Limited and are excited by the many new opportunities this partnership will offer in the overall corporate development of Alizyme. We believe Dr Shiho and his experienced team at TSD are uniquely positioned to maximize the development and commercialization of COLAL PRED® for Japan, and offer Alizyme further access to the Japanese market."

 Dr. Osamu Shiho, Chief Executive Officer TSD Japan commented:

“COLAL-PRED®, developed by Alizyme, is a unique compound to be co-developed by TSD Japan’s pharmaceutical partnering business, and I believe that its significant potential as a pharmaceutical agent will greatly assist us in realizing our corporate objective of developing and commercializing innovative products for the Japanese market. I would like to see our collaborative relationship broaden in the future, both in providing Alizyme access to new products for their portfolio and providing TSD access to other promising compounds from the Alizyme portfolio.”

 For further information, please contact:

Osamu Shiho, MD, Chief Executive Officer
Masayuki Katae, Corporate Officer and Head of Licensing
TSD Japan, Inc.
Tel: +81-6-6309-5200
Fax: +81-6-6309-5203