Nuon Therapeutics, Inc. Completes Licensing, Supply and Collaboration Agreement on Tranilast With Kissei Pharmaceutical Co., Ltd

Business Wire, July 23, 2007

Partnership Will Enable Multiple Phase II Development Programs

SAN FRANCISCO -- Nuon Therapeutics, Inc., a clinical stage biotechnology company, today announced the completion of a licensing, supply and collaboration agreement on tranilast with Kissei Pharmaceutical Co., Ltd., Matsumoto City, Japan.

The agreement will enable Nuon Therapeutics to advance tranilast, the company's lead compound, through the next phase of clinical development while giving Kissei the exclusive option right for research, development and marketing of tranilast in Japan and Korea for the field of autoimmune diseases, including multiple sclerosis (MS). The terms include provisions for Kissei to supply tranilast to Nuon Therapeutics for clinical trials and license Nuon related intellectual property on tranilast. The agreement also establishes a collaborative relationship between Nuon Therapeutics and Kissei for the development of additional portfolio products.

Nuon Therapeutics has licensed and developed worldwide intellectual property for the use of tranilast to treat MS, rheumatoid arthritis (RA), pain, and other indications.

"Our technology is based on the work of international thought leaders in autoimmune disease," said Rodney Pearlman, PhD, CEO of Nuon Therapeutics. "Nuon Therapeutics has collaborated with Dr. Marc Feldmann, Imperial College, London, to develop this technology in RA and pain and with Dr. Larry Steinman, Stanford University, Palo Alto, to develop tranilast in MS and other indications."

Kissei has marketed tranilast (under the brand name Rizaben[R]) in Japan and Korea for bronchial asthma since 1982. Indications for keloid and hypertrophic scar were added in 1993. In addition, a Rizaben eye drop was launched in 1995 in those countries and is widely used for allergic conjunctivitis. Tranilast is thought to act in these diseases by inhibiting the release of chemical inflammatory mediators from mast cells.

"We are delighted to have established a strategic partnership with Kissei, the originator of tranilast," said Joshua Funder, Chairman of Nuon Therapeutics and investor at GBS Venture Partners. "This collaboration will accelerate our development of new tranilast products as well as provide supply of high quality tranilast material for clinical trials. We are particularly excited to work with Kissei because of their extensive clinical experience with tranilast and deep insight in preclinical research in this field."

About Kissei Pharmaceutical Co., Ltd.

Kissei Pharmaceutical Co., LTD., headquartered in Matsumoto, Nagano prefecture, founded in 1946, is a Japanese pharmaceutical company that develops, manufactures, markets, sells and distributes brand pharmaceutical products. Kissei is primarily focused on three important fields of new drug research: urogenital, endocrinology & metabolism and immunology & allergy.

More: http://www.kissei.co.jp/

About Nuon Therapeutics, Inc.

Nuon Therapeutics, Inc. is a clinical stage biotechnology company that develops innovative small molecule drugs that address critical, unmet needs in autoimmune disease and pain. Nuon Therapeutics' initial programs are focused on repositioning tranilast to treat multiple sclerosis, rheumatoid arthritis and pain. The company's scientific founders are Dr. Larry Steinman at Stanford University, Palo Alto, Dr. Marc Feldmann, Imperial College, London, and Dr. Michael Selley, formerly from the Australian National University. Nuon Therapeutics, Inc. has headquarters in San Francisco, CA and a wholly-owned subsidiary, Nuon Therapeutics Pty. Ltd., in Australia, where additional discovery and development efforts are located.

More: www.nuontherapeutics.com

About GBS Venture Partners

GBS is Australasia's largest specialist life science venture capital investment group. GBS manages specialist funds from seed through to expansion stage in the life sciences sector, and has more than AU$300m under management. The GBS team has been investing in Australasia since 1996 and played founding roles in companies with a combined market capitalization of more than $1 billion.

More: www.gbsventures.com.au