Teijin Limited and Axcelead, jointly announced their basic agreement on a capital and business alliance to establish a joint venture company that will primarily utilize the drug discovery research capabilities of Teijin Pharma Limited, the Teijin Group's core healthcare company. Teijin and Axcelead will now determine the name, ownership ratio and other details of the new company, aiming to conclude a final agreement within the fiscal year ending in March 2024 and then establish the company promptly thereafter.

The new company will utilize Teijin's drug discovery research technologies, facilities, equipment and personnel. Axcelead aims to create synergies based on its proven expertise in drug-discovery support. The new company will investigate and acquire candidate compounds for new drugs as well as support drug discovery research. It is expected to grow its drug discovery support services worldwide by leveraging the combined strengths of Teijin and Axcelead in drug-discovery know-how, knowledge, technology and assets.

Through their alliance, Teijin and Teijin Pharma look forward to innovating and strengthening drug discovery research for the early launch of drugs with high medical needs. Teijin Pharma and Teijin are committed to addressing issues of patients, families and communities in need of more support. Axcelead provides non-clinical drug discovery research services that meet the needs of bio-ventures and other pharmaceutical companies worldwide, thereby helping to strengthen and expand the global drug discovery business.

This basic agreement, which accords with Axcelead's concept of co-creating drug discovery platforms, responds to the global trend of horizontal specialization in non-clinical research and new forms of outsourced research.