Executive Summary

SQUIBB/SANKYO ANTI-CHOLESTEROL AGENT CS-514 TO ENTER U.S CLINICIALS within the next few months, Squibb announced in a July 18 press release. The drug, which inhibits an enzyme in the biosynthetic process of making cholesterol, was developed by Sankyo and is being licensed to Squibb for worldwide marketing except in Japan, Korea, Taiwan and Thailand, Squibb said. The release noted that Sankyo will "retain the right to market the drug in the licensed markets at a future time" Commenting on the agreement, Squibb President and CEO Dennis Fill said: "We are gratified that our 25-year relationship with Sankyo continues to grow in importance to both companies. This agreement furthers the development of one of our key strategic goals, namely, to increase our contribution to cardiovascular medicine." Squibb said that CS-514 is similar to, and will compete with, Merck's mevinolin, which is also in clinical trials. Sankyo presently markets Squibb's ACE inhibitor Capoten (captopril) in Japan along with two other Squibb antibiotics, Velosef and Kenalog. According to a Squibb spokesman, the licensing agreement covering CS-514 marks the first time that the licensing relationship between the firms will bring a Sankyo product to the U.S.