4SC AG Achieves Next Milestone in Drug Discovery Collaboration With Sanwa Kagaku Kenkyusho

PLANEGG-MARTINSRIED, Germany and NAGOYA, Japan, October 10 /PRNewswire/ -- 4SC AG (Frankfurt, Prime Standard: VSC), a German drug discovery and development company and Sanwa Kagaku Kenkyusho Co., Ltd. (SKK), an established, international pharmaceutical company headquartered in Nagoya, Japan, today announced the successful completion of their research collaboration in the field of diabetes, which was started in January 2005. The goals of the research programme have been achieved in an unexpected short time-period.

Under the terms of the agreement 4SC AG applied its proprietary virtual High Throughput Screening technology, 4SCan(R), followed by biological screening experiments to identify active agents against specific targets provided by SKK. In a second step 4SC AG optimised these hits chemically with respect to certain properties like potency, selectivity and their in vitro ADMET profile. The successful completion of this research programme triggers another significant payment from SKK. SKK is now responsible for further R & D. 4SC AG continues to participate in future potential milestone and royalty payments.

"We are very impressed by the quality of services and the remarkably short time frame 4SC AG needed to deliver promising leads during our collaboration," said Satoshi Terao, SKK's Vice President for Research and Development. "Therefore we are optimistic, that we will work with 4SC AG again on similar projects."

"We are proud that we were able to exceed all expectations regarding the milestone criteria. This again is a proof of the value added by our technology and competence", said Ulrich Dauer, CEO of 4SC AG.

About Sanwa Kagaku Kenkyusho Co. Ltd.

SKK, a subsidiary of SUZUKEN, the largest pharmaceutical wholesaler in Japan, is a fully-integrated pharmaceutical company headquartered in Nagoya, Japan with established therapeutic and diagnostic products serving the diabetes, cardiovascular and inflammation marketplaces. SKK has an annual turnover of 48.2 billion yen, employs over 1,200 personnel. SKK's mission is to develop new drugs with a New Value mainly in the diabetes and diabetes-related therapeutic areas.

Further information is available at: www. skk-net.com/eng/

About 4SC

4SC AG (ISIN DE0005753818) has been listed in the Prime Standard of Frankfurt Stock Exchange since 15 December 2005. Founded in 1997 and now with a staff of 55, the company develops novel drug candidates for inflammatory diseases and cancer using a cheminformatics based technology platform. Traditional high throughput screening of therapeutic agents has been transferred from the lab to the computer. Thus, the company offers substantial cost and time advantages as well as increased success rates in drug development. 4SC AG uses its patented technology platform to create a sustainable product pipeline for active agents that are developed in early clinical phases ("proof of concept") and subsequently result in upfront and milestone payments as well as participation in sales generated by out-licensed products to the pharmaceutical industry. The pipeline currently has five projects, the first of which, on the treatment of rheumatoid arthritis, has successfully completed clinical phase I. Preparations for the conduct of the IIa clinical phase are well under way. In addition the project pipeline contains three projects in pre-clinical stage as well as one project in discovery stage. Furthermore, the company has its technology platform in co-operation projects with biotech and pharma companies and is already generating initial revenues.

Legal Note

This document may contain projections or estimates relating to plans and objectives relating to our future operations, products, or services; future financial results; or assumptions underlying or relating to any such statements; each of which constitutes a forward-looking statement subject to risks and uncertainties, many of which are beyond our control. Actual results could differ materially, depending on a number of factors.

For more information please contact: 4SC AG Bettina von Klitzing Manager Public Relations Am Klopferspitz 19a D-82152 Martinsried, Germany Tel: [phone] eMail: [e-mail] http://www.4sc.de Sanwa Kagaku Kenkyusho Co. LTD Tadashi Miyahara Shinjuku 6-chome bldg. 6-24-16 Shinjuku, Shinjuku-ku Tokyo 160-0022, Japan Tel: [phone] eMail: [e-mail] http://www.skk-net.com/eng/