We hereby inform you that TRANS GENIC INC. (HO: Mashiki-machi, Kamimashiki-gun, Kumamoto, CEO: Masahiro Koreishi) (hereinafter referred to as q‡TRANS GENICqˆ) filed a joint patent application with Yamanouchi Pharmaceutical Co., Ltd. (hereinafter referred to as q‡Yamanouchiqˆ) on June 24, 2004 on the new target gene for drug screening.

In December 2001 TRANS GENIC entered into agreements with Yamanouchi Pharmaceutical Co., Ltd. and Sumitomo Chemical Co., Ltd. on 3-step preferential information disclosure regarding Knockout (KO) mice, as the main pillar of its KO Mouse Business. In accordance with the agreement, TRANS GENIC discloses gene structure information (first step), provides phenotype analysis information on the KO mouse strain that the given company has chosen (second step), and grants a license for consecutive right to use that particular strain KO mouse strain (third step). To date, our business has seen steady improvement, some strains having already reached the third step.

TRANS GENIC and Yamanouchi have considered the particular KO mouse, one of the strains chosen mice for the third step, as patentable information for its usability as a target gene for drug screening, and today agreed to file a joint patent application. In the event that Yamanouchi brings the patented invention to drug development, TRANS GENIC will gain milestone fees and running royalties at the threshold of each development step.
This first joint application with Yamanouchi affirms that the gene trap method, a TRANS GENIC technology, is of definite utility in discovering novel drug targets. TRANS GENIC is expanding its business incrementally by pursuing better research results with its partner companies, and by acquiring more partners for drug discovery.