Galenea Corp. Signs Collaboration and License Agreement with Otsuka Pharmaceutical Co., Ltd.

MBRIDGE, MA--February 16, 2005--On January 8, 2005, Galenea Corp. signed a research and development collaboration and license agreement with Otsuka Pharmaceutical Co., Ltd. to discover novel pharmaceuticals for the treatment of central nervous system (CNS) diseases, including schizophrenia and bipolar disorder. The parties' collaboration includes an equity investment in Galenea by Otsuka Pharmaceutical.

Under the terms of the agreement, Otsuka Pharmaceutical will provide five years of research and development funding, and will obtain rights to a number of Galenea's novel targets and development candidates. Otsuka Pharmaceutical also will have an exclusive, world-wide license to further develop and commercialize pharmaceutical products identified and developed by Galenea during the collaboration. For products commercialized by Otsuka under the agreement, Galenea will receive milestone and royalty payments, and will have an option to participate in profit-sharing for any such commercialized products.
Galenea is focused on the discovery and development of pharmaceuticals for the treatment of schizophrenia and other CNS disorders, using technology developed at the Massachusetts Institute of Technology (MIT) laboratory of Dr. Susumu Tonegawa and at The Rockefeller University laboratory of Dr. Maria Karayiorgou. Dr. Tonegawa, a Howard Hughes Medical Institute Investigator, is the Director of the Picower Center for Learning and Memory at the Massachusetts Institute of Technology and the recipient of the 1987 Nobel Prize in Medicine. Dr. Karayiorgou is an Associate Professor and head of the Laboratory of Human Neurogenetics at The Rockefeller University.

Independent of its collaboration with Otsuka Pharmaceutical, Galenea will also research and develop siRNA-based, inhaled respiratory medicines for the treatment of respiratory diseases such as influenza. Galenea's siRNA-based technology was developed by Dr. Jianzhu Chen, a Professor in the Department of Biology at MIT.

"In addition to producing a stream of development candidates for Otsuka, Galenea will retain certain rights to develop a large number of targets, high throughput screens, and compounds resulting from the alliance to enhance our own pipeline of candidate drugs for potential clinical development," said John Oyler, CEO of Galenea.

Otsuka Pharmaceutical markets the drug Abilify¬, an antipsychotic for the treatment of schizophrenia and bipolar disorder treatment. Abilify¬ has been available by prescription in the United States since 2002. "Our alliance with Galenea represents a synergy of the two partners' core competencies. Galenea will provide us with a rich pipeline of new drug targets and development candidates which will further our ability to generate marketable products. We are proud to be collaborating with Galenea to develop new pharmaceuticals based on the work of Professor Susumu Tonegawa, and expect that our financial and technical resources will be of great assistance to Galenea in developing development candidates that may become novel treatments for schizophrenia and other CNS disorders," said Tatsuo Higuchi, President of Otsuka Pharmaceutical. About Galenea Corp. and Otsuka Pharmaceutical Co., Ltd.
Galenea Corp. is an emerging biotechnology company dedicated to enhancing and saving lives through the discovery of novel therapies for central nervous system and respiratory diseases. Founded in 2004 based upon technology developed at the Massachusetts Institute of Technology and The Rockefeller University, Galenea is initially focusing on utilizing these proprietary technologies to generate calcineurin-related treatments for schizophrenia and siRNA-based, inhaled therapies for the treatment of influenza. Galenea is based in Cambridge, Massachusetts.

Founded in 1964, Otsuka Pharmaceutical Co., Ltd. is a healthcare company with the mission statement: "Otsuka - people creating new products for better health worldwide." Otsuka researches, develops, manufactures and markets innovative products, focusing its core businesses on pharmaceutical products for the treatment of disease and consumer products for the maintenance of everyday health. Otsuka leads a corporate group comprised of 73 companies and about 23,000 people around the world. With 39 consolidated subsidiaries employing about 17,000 people, Otsuka earned US$4.4 billion in consolidated annual revenues in fiscal 2003.