Bayer : and PeptiDream to identify new active substance candidates through novel peptide-based screening technology

Berlin, November 16, 2017- Bayer and PeptiDream, a public Japanese biopharmaceutical company, have entered into a global drug discovery collaboration across multiple therapeutic areas and target classes. Under the agreement, Bayer and PeptiDream will work to identify new compounds for difficult-to-address drug targets by using PeptiDream's proprietary Peptide Discovery Platform System (PDPS) technology. The aim of the collaboration is to discover novel lead structures in areas of high unmet medical need across Bayer's strategic research areas such as oncology or cardiology.

Finding new lead structures is one of the major challenges in drug discovery. PeptiDream has developed a novel peptide-based hit-finding technology which offers starting points for lead-discovery projects for difficult-to-address targets based on the great magnitude of the libraries. The multi-year collaboration will complement Bayer's internal lead discovery capabilities and represents a strategic extension of Bayer's in-house technology portfolio.

'Complementing our in-house expertise with technologies and know-how of excellent partners is an integral part of our innovation strategy at Bayer', said Dr. Andreas Busch, member of the Executive Committee of Bayer AG's Pharmaceuticals Division and Head of Drug Discovery. 'We believe that the Peptide-Discovery Platform System of PeptiDream offers a highly promising technology for our drug discovery efforts.'

'Our PDPS technology allows for the creation of macrocyclic peptide libraries of almost limitless chemical diversity that can then be selected against targets of interest, leading to the rapid identification of highly active and selective hits against difficult-to-address targets. We have been successful across all of our partnerships and we are confident that we can contribute to Bayer's drug discovery efforts', said Patrick C. Reid, CEO and President of PeptiDream.

Under the terms of this agreement, PeptiDream will receive an up-front payment as well as success-based milestone payments. Bayer owns the rights to novel lead structures generated in the course of the collaboration and obtains a license under PeptiDream's PDPS technology to the extent necessary for human therapeutic use (excluding peptide-drug conjugates) of those novel structures. PeptiDream will also receive royalties on successfully commercialized drugs that result from a collaboration program.

About Peptide-Discovery Platform System (PDPS) technology
PeptiDream's proprietary PDPS technology is a next-generation hit finding platform. The PDPS-technology allows for the creation of macrocyclic peptide libraries with a very high chemical diversity (trillions in a single tube, and trillions of library combinations possible). The diverse nature of the library facilitates for the rapid identification of molecules that are enriched when bound to the target that can then be turned into peptide therapeutics, small molecule therapeutics, or peptide-drug conjugates therapeutics.

About PeptiDream
PeptiDream Inc. is a public (Tokyo Stock Exchange 1st Section 4587) biopharmaceutical company founded in 2006 employing the proprietary Peptide Discovery Platform System (PDPS), a state-of-the-art highly versatile discovery platform which enables the production of highly diverse (trillions) non-standard peptide libraries with high efficiency, for the identification of highly potent and selective hit candidates, which then can be developed into peptide-based or small molecule-based therapeutics. PeptiDream aspires to be a world leader in drug discovery and development to address unmet medical needs and improve the quality of life of patients worldwide. For further information, please visitwww.peptidream.com.

Bayer: Science For A Better Life
Bayer is a global enterprise with core competencies in the Life Science fields of health care and agriculture. Its products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen. In fiscal 2016, the Group employed around 99,600 people and had sales of EUR 34.9 billion. Capital expenditures amounted to EUR 2.2 billion, R&D expenses to EUR 4.4 billion. For more information, go towww.bayer.com.

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Forward-Looking Statements
This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer's public reports which are available on the Bayer website atwww.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.