You may recall that Lilly entered into a joint venture with Chugai in 1999 to gain assistance with developing a number of Lilly compounds in Japan and as an opportunity to work closely with Chugai as a prelude to acquiring a significant interest in the company.
As we discussed in June, it became clear that Lilly would not acquire such interest in Chugai and we no longer need Chugai's help with clinical development.
Therefore, we decided to terminate the joint venture.
Attached to this message is a copy of the press release Chugai will issue tomorrow morning regarding the dissolution of the joint venture and a related amendment to the 1995 agreement under which Chugai will co-market raloxifene.
Please do not hesitate to call me if you have any questions in this regard.
Alecia A. DeCoudreaux                                    - CLCR Release Eng final version.doc

Chugai