-June 17, 1997-

NIDEK and Toyama Chemical Co., a Japanese pharmaceutical company, concluded a "Basic contract concerning collaboration on development, manufacturing and sales " of drugs for external application in the field of ophthalmology.

Purpose of the contract
Ophthalmology is a potential field for Toyama, which has been successful at antibiotics and antibacterial agents. NIDEK is the second largest manufacturer of ophthalmic medical devices in the world (top manufacturer in Japan) and is trying to make inroads into ophthalmic pharmaceutical market. Concluding the present contract, NIDEK and Toyama want to develop and introduce novel agents early in the field of ophthalmology and to strongly promote opening up a market for these products.

Summary of the contract
Establish a close partnership concerning collaboration on research and development, manufacturing and sales of existing pharmaceutical products and novel agents to be developed by Toyama in the future for external application in the field of ophthalmology. While NIDEK and Toyama will collaborate on clinical development, Toyama will be in charge of basic research including formulation, analysis and safety, and manufacturing. NIDEK will be basically in charge of sales in Japan and overseas countries as well as basic research in the field of ophthalmology, such as ophthalmic pharmacology.

Business Plan
Development of products will be started in 1997, aiming to launch them in the market in the middle of 1998. Target annual sales is 1 billion yen (approx. 8.3 million dollars) or larger for the moment and 5 billion yen (approx. 41.7 million dollars) or larger several years later.