Astellas and Drais Partner to Develop Third Astellas Compound Through Tacurion

Astellas and Drais Partner to Develop Third Astellas Compound Through Tacurion 
InterWest Partners, Sutter Hill Ventures and Astellas Venture
Management Invest $15 Million Into Tacurion to Advance Compound 
TOKYO and BRIDGEWATER, NJ -- (Marketwired) -- 05/07/13 --  Astellas
Pharma Inc. (Tokyo: 4503) ("Astellas") and Drais Pharmaceuticals,
Inc. ("Drais") today announced that they have entered into a third
partnership in the past year to develop and commercialize an Astellas
compound. Under the terms of the agreement, Astellas will license
ASP7035, of which a phase I study has been completed and is a phase
IIa-ready, vasopressin V2 receptor selective agonist for the
treatment of nocturia, to Tacurion Pharma, Inc. ("Tacurion"), a
virtual company that will be operated by the Drais executive team.
The partnership is similar to two prior Astellas and Drais
agreements, to advance ASP3291 and ASP7147 through Telsar Pharma,
Inc. ("Telsar") and Seldar Pharma, Inc. ("Seldar"), respectively --
both also virtual companies. As with Telsar and Seldar, Tacurion will
be operated by Drais, which has substantial clinical development
experience. 
Tacurion, Telsar and Seldar all share the same investors: InterWest
Partners and Sutter Hill Ventures (two U.S. venture capital firms
that are also the lead investors in Drais) plus Astellas Venture
Management LLC (the corporate venture capital arm of Astellas). The
three groups will invest a total of $15 million into Tacurion. These
funds will provide a runway to further the development of ASP7035,
with Drais serving as the exclusive provider of development services. 
This partnership is reflective of Astellas' 'Multi-Track R&D'
approach, in which the company moves select promising compounds
forward without any disruption in the development process. The
approach allows Astellas to optimize costs and control risks while
accessing outside capital and expertise. 
The partnerships are a long-term enterprise that Astellas and Drais
may expand by moving additional Astellas compounds into virtual
companies for development by Drais. Working with virtual companies is
a straightforward solution that allows the investors to target their
investment to one compound. Virtual companies also provide a simpler
structure for any future sale of the compound. 
The participants in the partnership have all worked together
successfully in the past. The Drais executive team was previously the
senior management of Yamanouchi R&D (a precursor company to Astellas)
in Paramus, NJ. Later they served as the executive team of AkaRx,
acquired by Eisai/MGI for $300 million in 2010. Dr. Arnold Oronsky,
general partner at InterWest, and Dr. Jeff Bird, managing director at
Sutter Hill Ventures, are both board members and investors in Drais;
they previously held the same positions at AkaRx. Astellas Venture
Management was also an investor in AkaRx.  
Under the terms of the agreement, Tacurion has an exclusive worldwide
license to develop and commercialize ASP7035. Tacurion will be
responsible for all development, manufacturing and commercialization
activities and their associated costs. Astellas is entitled to
receive a milestone payment and royalties on future sales of ASP7035.
Astellas also has a onetime option (but not an obligation) to acquire
Tacurion upon the success of a proof of concept study. The company
expects to initiate the phase II proof-of-concept study in the third
quarter of 2013. 
About Astellas Pharma Inc.  
Astellas Pharma Inc., located in Tokyo, Japan, is a pharmaceutical
company dedicated to improving the health of people around the world
through the provision of innovative and reliable pharmaceutical
products. Astellas has approximately 17,000 employees worldwide. The
organization is committed to becoming a global category leader in
Urology, Immunology (including Transplantation) and Infectious
Diseases, Oncology, Neuroscience and Diabetes Mellitus (DM)
Complications and Kidney Diseases. For more information on Astellas
Pharma Inc., please visit the company Website at www.astellas.com/en. 
About Astellas Venture Management LLC  
Astellas Venture Management's mission is to invest in emerging
biotech companies that combine unique scientific capabilities with
the potential for global market leadership and a management team
driven by ambition for success of the company. To learn more about
Astellas Venture Management, please visit the company's website at
www.astellasventure.com. 
About Drais Pharmaceuticals, Inc. 
Drais Pharmaceuticals, Inc. is a privately held drug development
company dedicated to the in-licensing, development and
commercialization of novel therapeutic treatments that address unmet
medical needs, providing significant benefits over currently
available therapies.  
Formed in September 2007, Drais completed a Series A financing round
in January 2008 from lead investors, InterWest Partners (Menlo Park,
CA) and Sutter Hill Ventures (Palo Alto, CA). The Drais management
team consists of highly experienced individuals with a successful
track record in the pharmaceutical industry. Prior to forming Drais,
the management team founded AkaRx, Inc. (acquired by Eisai/MGI in
2010 for $300 million). Drais is based in Bridgewater, New Jersey.  
For more information, please visit: http://www.draispharma.com. 
About InterWest Partners 
For more than 30 years InterWest (www.interwest.com) has partnered
with exceptional entrepreneurs to build winning technology and life
sciences companies. With more than 200 years of combined operating
and investing experience, our team has raised $2.8B, completed more
than 70 IPOs, and participated in nearly 60 upside acquisitions. As
we invest InterWest X, a $650M fund, we continue to believe that
providing capital is just the beginning of a long-term collaboration
with entrepreneurs to turn their vision into a thriving company. 
About Sutter Hill Ventures 
Sutter Hill Ventures is a venture capital firm that finances
technology-based start-up and early-stage companies that pioneer
products or services in growth markets, especially those in
information technology and health care. Founded in 1964, it is one of
Silicon Valley's original venture capital firms. For more information
about Sutter Hill Ventures, please visit www.shv.com. 
Contacts:  
Astellas Pharma Inc. 
Corporate Communications 
Tel: +81-3-3244-3201 
Fax: +81-3-5201-7473 
http://www.astellas.com/en 
Drais Pharmaceuticals Inc. 
Donna Tempel
President and CEO
Drais Pharmaceuticals Inc.
908-895-1211
tempel@draispharma.com 
Eliot Dobris
eliot@eliotdobris.com
415-902-1241