Tokyo, Japan, April 1, 2024 —Axcelead, Inc. (Headquarters: Minato-ku, Tokyo; President: Yoshinori Ikeura; hereinafter “Axcelead”) and Teijin Limited (Headquarters: Kita-koi, Osaka; President: Akimoto  Uchikawa; hereinafter “Teijin”) announced today that they have established the joint venture company Axcelead Tokyo West Partners, Inc. (Headquarters: Hino City, Tokyo; Representative Director: Kengo Okada; hereinafter “Axcelead TWP”), in which both companies have been preparing for establishment, and commenced operations.

Background and Overview

(1) Recently, against the backdrop of the increasing complexity and sophistication of drug discovery research overseas, there has been a trend towards the horizontal division of research functions, including non-clinical research, and the expansion of new forms of drug discovery research support services.

(2) Axcelead and Teijin have envisioned the establishment of a new joint venture company to respond to the expected increase in demand for drug discovery research support both domestically and internationally. In February 2023, the two companies signed a memorandum of understanding for the establishment of the company, and in June of the same year, they reached agreements on management considerations such as organizational structure and shareholding ratios, and subsequently signed the final contract for establishment.

(3) Subsequently, both companies have proceeded with the transfer of management bases and the organization structure, and today, they have reached the establishment of the joint venture company and the commencement of operations.

Overview of the Established Joint Venture Company

(1) Axcelead TWP is a joint venture company in which Axcelead holds 51% and Teijin holds 49% of the shares, with both companies owning all shares.

(2) Leveraging the drug discovery research functions of Teijin Pharma Limited (Headquarters: Chiyoda-ku, Tokyo; President: Masaki Taneda; hereinafter “Teijin Pharma”), a subsidiary of Teijin, as a core management resource including technology, facilities and equipment, and personnel, combined with Axcelead’s immense knowledge and technology as a drug discovery solution provider, it aims to have a unique business foundation.

(3) The main business activities include supporting drug discovery research activities such as target selection for drug discovery, acquisition of new drug candidate compounds, and related synthesis, pharmacology, pharmacokinetics, and safety.

(4) Hereafter, it will aim to grow as a comprehensive support service company in drug discovery by incorporating the needs of drug discovery players both domestically and internationally.

Comments from Related Parties

■ Yoshinori Ikeura, President and CEO of Axcelead, Inc.

“Horizontal division of drug discovery research has been progressing in the pharmaceutical industry overseas, and a similar trend is emerging in Japan. With the addition of Axcelead TWP to the Axcelead group, we will expand our drug discovery capabilities and capacity, making the Axcelead group’s drug discovery platform more solid. By contributing to solving the challenges of drug discovery research faced by drug discovery players, we will enhance our presence domestically and internationally, supporting innovation as the most trusted innovative healthcare platform around the world.”

■ Akimoto Uchikawa, President and CEO of Teijin Limited

“We expect that the new joint venture company, leveraging the foundation of drug discovery research that Teijin has cultivated, will contribute to improving the quality of life for people around the world as a platform supporting the drug discovery ecosystem not only in Japan but also worldwide. Teijin and Teijin Pharma will aim to create innovative pharmaceuticals by utilizing the drug discovery platform and ecosystem.”

■ Kengo Okada, Representative Director of Axcelead TWP

“I am pleased that we have established Axcelead TWP as planned today and have started operations. We will collaborate with Axcelead Drug Discovery Partners, Inc., another drug discovery support company within the Axcelead group, to meet the diverse needs of drug discovery players and provide high-quality solutions. We will strengthen and expand the Axcelead group’s drug discovery platform business foundation and connect growth by incorporating the increasing demand from drug discovery players both domestically and internationally.”

【Overview of the Joint Venture】

Name of the company	Axcelead Tokyo West Partners, Inc.
Representative Director	Kengo Okada
Headquarters	4-3-2 Asahigaoka, Hino-shi, Tokyo
Date of establishment and commencement of business	Scheduled on April 1, 2024
Number of Employees	Approximately 120 (as of April 1, 2024)
Business Activities	Advisory and commissioned business related to healthcare research, mainly drug discovery research
Ownership Structure	51% Axcelead 49% Teijin
Official Website	https://www.axcelead-twp.com/en/

About the Teijin Group

Teijin (TSE: 3401) is a technology-driven global group offering advanced solutions in the fields of environmental value; safety, security and disaster mitigation; and demographic change and increased health consciousness. Originally established as Japan’s first rayon manufacturer in 1918, Teijin has evolved into a unique enterprise encompassing three core business domains: high-performance materials including aramid, carbon fibers and composites, and also resin and plastic processing, films, polyester fibers and products converting; healthcare including pharmaceuticals and home healthcare equipment for bone/joint, respiratory and cardiovascular/metabolic diseases, nursing care and pre-symptomatic healthcare; and IT including B2B solutions for medical, corporate and public systems as well as packaged software and B2C online services for digital entertainment. Deeply committed to its stakeholders, as expressed in the brand statement “Human Chemistry, Human Solutions,” Teijin aims to be a company that supports the society of the future. The group comprises some 170 companies and employs some 20,000 people across 20 countries worldwide. Teijin posted consolidated sales of JPY 1,018.8 billion (USD 7.6 billion) and total assets of JPY 1,242.4 billion (USD 9.2 billion) in the fiscal year ending March 31, 2023.

Please visit www.teijin.com

About Axcelead

Axcelead represents a holding company as healthcare platformer which owns a group of companies which are developing a world-class healthcare platform for drug discovery. Axcelead DDP, Japan’s first integrated drug discovery CRO, functions as the core company of the Axcelead group that took over Takeda Pharmaceutical Company Limited’s drug discovery platform business in 2017. ARCALIS has become Japan’s only one-stop mRNA contract drug development and manufacturing organization (CDMO).

Axcelead also owns A-Digital which develops a drug discovery digital platform to increase drug discovery efficacy by 100 times, and the American company, PassPort Technologies, Inc. in San Diego, California (“PassPort”). PassPort is a company that develops combination products of active pharmaceutical ingredients and medical devices based on next-generation transdermal drug delivery technology. Axcelead will promote the drug discovery ecosystem in Japan and will make various contributions to healthcare broadly and globally.

For more information on Axcelead, please visit the company’s website at https://www.axcelead-hd.com

Press release in English