RaQualia Pharma announced that at its board of directors meeting decided to expand its global partnership with CJ HealthCare Corp. company have concluded collaboration agreement (hereinafter referred to as the "Agreement") with CJ targeting North America and Europe for Tegoprazan*1 that was invented by the company. Under this Agreement, RaQualia Pharma grants an exclusive license to CJ with sublicensing rights for exclusive development, sales and manufacturing of Tegoprazan in North America and Europe.

Together with receiving a contract lump-sum payment as compensation, RaQualia Pharma has the right to receive milestones according to the progress, and the right to receive royalties according to the sales amount. Under the contract, the specific achievement conditions and amounts, etc., will not be disclosed. Regarding the development of Tegoprazan in the U.S., company made an application with the U.S. Food and Drug Administration (FDA) to conduct a clinical trial for a new drug (IND: investigational new drug) in 2010.

A Phase I clinical trial of the drug was conducted. In addition to examining safety, tolerability and pharmacokinetics, company confirmed that it has an excellent effect in inhibiting gastric-acid secretions . Following this Agreement, CJ will take over the IND of RaQualia Pharma and will resume development in the U.S. during FY12/2020.

With regards to the business development of Tegoprazan in Japan, company will retain licensesrelated to development, sales and manufacturing, and intend to select the most suitable partners. RaQualia Pharma and CJ will further strengthen cooperation, and by delivering the drug to many patients around the world company will expand options for treating digestive system diseases, and will strengthen their intent to contribute to improve the quality of life (QOL) of patients.