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January 16, 2003

Announcing Launch of Switch OTC Version
of Antifungal Agent Amorolphin Chlorate as
"Toe Cool" (Kyorin Pharmaceutical) and "Dermarin Ace" (Taisho Pharmaceutical)

Kyorin Pharmaceutical Co., Ltd. (President: Ikuo Ogihara) and Taisho Pharmaceutical Co., Ltd. (President: Akira Uehara) will be launching a switch OTC version of the antifungal agent "Pekiron Cream" (generic name: amorolphin chlorate) under the product names "Toe Cool" (Kyorin Pharmaceutical) and "Dermarin Ace" (Taisho Pharmaceutical). The products will be on sale from January 23, 2003.

Amorolphin chlorate was first introduced to the Japanese market by Kyorin Pharmaceutical in February 1994, as an ethical drug marketed under the name "Pekiron Cream", and is highly valued in the clinical field as the only morpholine derivative antifungal agent in existence. In view of the growing trend for self-medication in recent years, the two companies agreed to develop switch OTC versions of amorolphin chlorate, and Kyorin Pharmaceutical secured approval for its manufacture in October 2002.

Since 1988, when it launched "Dermarin" and "Dermarin Liquid", OTC versions of the widely used ethical drug miconazole nitrate, Taisho Pharmaceutical, as the maker of Japanese leading brand of athlete's foot treatments, has continued to develop new product formats, such as sprays, and replace active ingredients with more effective substances, in response to market needs. In February 2002, Taisho Pharmaceutical introduced "Dermarin L Hi" and "Dermarin L Liquid Hi", containing four new active ingredients in addition to miconazole nitrate. The launch of "Dermarin Ace" is intended to further strengthen and expand the series.

"Toe Cool" and "Dermarin Ace" represent a new generation of athlete's foot treatments based on the active ingredient of amorolphin chlorate, and the two companies have high expectations that this drug, making its first appearance on the OTC market, will prove a strong seller.

Kyorin Pharmaceutical will be supplying Taisho Pharmaceutical with the final product to be marketed as "Dermarin Ace".

Product specification
Product name Kyorin Pharmaceutical: "Toe Cool"
Taisho Pharmaceutical: "Dermarin Ace"
Suggested retail price
Toe Cool - 10g: ¥1,900; 20g: ¥2,600
Dermarin Ace - 10g: ¥1,900; 20g: ¥2,600
Ingredients (in every 1g)
Amorolphin chlorate 5.575 mg (5 mg as amorolphin)
Indications Athlete's foot, crotch rot, tinea corporis
Dosage Apply as required to the affected area, once a day.
Characteristics This cream, whose chief active ingredient is amorolphin chlorate, acts by blocking the synthesis of cell membranes of trichophytons in two steps, thereby kills the bacteria to bring out an effect of treatment.
Date of sales January 23, 2003
Expected sales
Toe Cool : ¥200 million (shipment value; in 12 months from launch)
Dermarin Ace : ¥1,500 million(shipment value; in 12 months from launch)