Modalis Therapeutics Corporation announced that the Company has received the following notification from Eisai Co., Ltd. (Eisai) regarding the joint research and development agreement for MDL-205. MDL-205 is a program targeting one of the central nervous system diseases, and the company have been conducting joint research and development since 2019. The Company and Eisai aimed at drug discovery for the disease using MODALIS's proprietary CRISPR-GNDM platform and were able to achieve a certain level of success.

However, at the expiration of the joint research and development agreement and evaluation period for MDL-205, the Company received notification from Eisai that it would not extend the collaboration period or exercise its option right for a license on January 12, 2022. The Company will comprehensively evaluate the superiority and rationality of MDL-205 and decide whether to reacquire the research outcomes as an In-house pipeline within a certain period of time. The Company shall promptly announce all future matters that require disclosure.

If MDL-205 is removed from the Collaboration pipeline, the Company has five In-house pipelines, and together with the two pipelines in Collaboration, the Company now has a total of seven products in its pipeline. This matter shall have a minor or no impact on its business performance for the fiscal year ending December 2023.