News Release

July 29, 2016

JCR Pharmaceuticals Co., Ltd.

MEDIPAL HOLDINGS CORPORATION

Translation

JCR and MEDIPAL Announce Signing of Agreement on Pharmaceutical Development Investment

JCR Pharmaceuticals Co., Ltd. (Headquarters: Ashiya, Hyogo; Chairman and President Shin Ashida) ("JCR") and MEDIPAL HOLDINGS CORPORATION (Headquarters: Tokyo; President and CEO Shuichi Watanabe) ("MEDIPAL") announced today that they resolved at meetings of their respective Board of Directors MEDIPAL's investment in the pharmaceuticals developed by JCR and signed a new "Development Investment Agreement" following the first agreement concluded on September 13th 2011. Details follow below:

  1. Details of Agreement

    JCR will receive from MEDIPAL an up-front payment plus R&D funding of JCR's two drug programs under development. In return, MEDIPAL will receive from JCR royalties of a fixed percentage of sales in Japan after the products are launched.

    A maximum limit has been set for the R&D funding to be received by JCR and the royalties to be received by MEDIPAL.

  2. Outlook

This agreement is expected to have no impact on JCR's consolidated financial results for the year ending March 31, 2017 and to have a minor impact on MEDIPAL's consolidated financial results for the year ending March 31, 2017.

[About JCR]

JCR is a specialty pharma engaged in the research, development, manufacture and marketing of biopharmaceuticals and regenerative medicine with a focus on rare diseases. Its philosophy, "Contributing towards people's healthcare through pharmaceutical products" drives JCR to create innovative pharmaceutical products as value-added treatment options for the

under-served patient community.

[About MEDIPAL HOLDINGS]

MEDIPAL operates in the Prescription Pharmaceutical Wholesale Business; the Cosmetics, Daily Necessities and OTC Pharmaceutical Wholesale Business; and the Animal Health Products and Food Processing Raw Materials Wholesale Business. We aim to "contribute to people's health and the advancement of society through the creation of distribution value," by providing wholesale/distribution services that are of safe and reliable value, responding to the needs of customers and society in any day and age.

[Cautionary Statement Regarding Forward-Looking Statements]

This document contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are outside our control. Forward-looking statements often contain words such as "believe," "estimate," "anticipate," "intend," "plan," "will," "would," "target" and similar references to future periods. All forward-looking statements regarding our plans, outlook, strategy and future business, financial performance and financial condition are based on judgments derived from the information available to us at this time. Factors or events that could cause our actual results to be materially different from those expressed in our

forward-looking statements include, but not limited to, a deterioration of economic conditions, a change in the legal or governmental system, a delay in launching a new product, impact on competitors' pricing and product strategies, a decline in marketing capabilities relating to our products, manufacturing difficulties or delays, an infringement of our intellectual property rights , an adverse court decision in a significant lawsuit and regulatory actions.

This document involves information on pharmaceutical products (including those under development). However, it is not intended for advertising or providing medical advice. Furthermore, it is intended to provide information on our company and businesses and not to solicit investment in securities we issue.

Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the factors that could cause actual results to differ materially, even if new information becomes available in the future.

Investors & Media:

JCR Pharmaceuticals Co., Ltd. Corporate Communications Tel: +81-0797-32-8591

MEDIPAL HOLDINGS CORPORATION

Corporate Communications Department Tel: +81-03-3517-5171

END

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Medipal Holdings Corporation published this content on 29 July 2016 and is solely responsible for the information contained herein.
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