Otsuka Pharmaceutical acquires newly issued common shares of MethylGene

Otsuka Pharmaceutical Co., Ltd., a wholly owned subsidiary of Otsuka Holdings Co., Ltd. based in Japan, announces that on October 20, 2009, pursuant to the private placement disclosed on October 14, 2009, it acquired 3,686,182 newly issued common shares of MethylGene Inc. Following the closing of this private placement, Otsuka Pharmaceutical owns 9.12% of the issued and outstanding common shares of MethylGene. This acquisition of common shares, together with the 370,664 common shares of MethylGene already held by Taiho Pharmaceutical Co., Ltd., another wholly owned subsidiary of Otsuka Holdings, represents 10.04% of the outstanding common shares of MethylGene held by the group.

On March 25, 2008, Otsuka Pharmaceutical and MethylGene entered into a worldwide research collaboration and license agreement for the development of novel, small molecule, kinase inhibitors for the treatment of ocular diseases, excluding cancer. Under terms of the agreement between both parties, Otsuka Pharmaceutical undertook, among other things, to invest US$1.5 million in the capital of the MethylGene through the purchase of common shares. The private placement is in satisfaction of that undertaking.

The common shares were acquired for investment purposes and not with a view to effecting control of MethylGene. Otsuka Holdings and its affiliates will evaluate their investment in MethylGene from time to time and may, based on such evaluation of market conditions and other circumstances, increase or decrease shareholdings in the company as circumstances require.