June 30, 2005

Takeda Pharmaceutical Company Limited

Paradigm and Takeda Enter Into CNS Therapeutic Area Alliance

Cambridge, UK and Osaka, Japan, June 30 2005 --- Paradigm Therapeutics Ltd.
("Paradigm") and Takeda Pharmaceutical Company Limited ("Takeda") today announced that both parties have agreed to enter into a therapeutic area alliance in the field of CNS diseases.

Under terms of the initial 3 year agreement, Paradigm will provide to Takeda exclusive access to proprietary drug targets in defined CNS fields, with selected targets being subject to further validation by Paradigm and subsequent screening and development carried out at Takeda. The deal anticipates the identification of multiple targets through each year of the collaboration. The initial agreement also allows for further extension of the collaboration by mutual agreement.

Takeda will pay upfront and research exclusivity payments on signature of the deal. In addition, Paradigm will be eligible for payments of approximately $18 million in maximum for each product based on successful achievement of pre-specified Research, Clinical and Regulatory milestones. In addition, Paradigm will receive royalties on the sales of any commercialized products. Further financial details are not disclosed.

"Takeda has a tremendous track record of taking new targets through to commercialization, and through this collaboration we aim to provide a powerful platform for the discovery of new targets for key CNS disease indications", said Dr Barry Kenny, Commercial Director at Paradigm. "The collaboration provides a means to move a significant number of Paradigm's proprietary targets towards clinical validation rapidly and realize significant value for the company. We anticipate close collaboration between the companies and are looking forward to the prospect of the identification and progression of valuable first in class therapeutics. This deal represents the first of several carefully selected alliances for key disease areas in our portfolio".

"We are excited very much with this deal, which will enable us to have access to Paradigm's potential druggable targets created based on their state-of-art proprietary in vivo functional genetics platform", said Takashi Soda, Ph. D, Member of the Board, General Manager of the Pharmaceutical Research Division at Takeda. "CNS field is one of our core therapeutic areas to which our management resources are selectively dedicated, and we believe the joint research with Paradigm will contribute to enhance our franchise in this field. Takeda is pursuing every possibility for enhancing its R&D pipeline, and promoting this kind of alliance activity so that we can utilize outside resources efficiently in the research processes."

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Paradigm has a unique drug discovery platform that combines a powerful proprietary in vivo functional genetics platform with proprietary medicinal chemistry capabilities. Paradigm's approach has been highly successful in identifying novel targets with extensive validation that forms the basis of an IP estate based on novel utility. Over 1,000 potential druggable targets have already been identified by Paradigm, of which more than 100 of the most exciting are well advanced within biological validation programmes. Paradigm is focusing its efforts on therapeutic areas of high unmet medical need including CNS, pain, endocrinology and metabolism. The expanded company now has a broad pre-clinical portfolio, with chemistry programs directed towards several targets.
The most advanced program, a selective GnRH antagonist, is expected to enter clinical development in 2006.
The Company is located in Cambridge Science Park, UK and has a wholly owned subsidiary, Paradigm Therapeutics Singapore PTE Ltd., based on the Biopolis in Singapore.

For more information about Paradigm,visit

Takeda, located in Osaka, Japan, is a research-based global company with its main focus on pharmaceuticals. As the largest pharmaceutical company in Japan and one of the global eaders of the industry, Takeda is committed to striving toward better health for individuals and progress in medicine by developing superior pharmaceutical products.

Takeda’s four core therapeutic areas in R&D are;

	Franchise I	：	Life style-related diseases
	Franchise II	：	Oncology & Urologic diseases
	Franchise III	：	Central nervous system diseases
	Franchise IV	：	Gastroenterology diseases LCM

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