DANBURY, Conn., Oct. 28, 2009 (GLOBE NEWSWIRE) -- Penwest Pharmaceuticals Co. (Nasdaq:PPCO) today announced that its formulation of a product of Otsuka Pharmaceutical Co., Ltd. that Penwest had developed utilizing its TIMERx(R) drug delivery technology under a collaboration with Otsuka had demonstrated proof-of-principal in a Phase I pharmacokinetic study. Under the terms of its agreement with Otsuka, Penwest will receive an undisclosed milestone payment from Otsuka.

Jennifer L. Good, Penwest's President and CEO, said, "Our research and development collaboration with Otsuka has been very productive. Achieving the targeted blood levels and demonstrating proof-of-principal for our formulation is a very important step in the overall development of a new formulation of Otsuka's product. We look forward to continuing our work with Otsuka to support the development of this formulation."

Under its agreement with Otsuka, Penwest has agreed to continue to support Otsuka in its scale-up work of this formulation and is eligible for additional development milestone payments and royalties. Penwest currently has three development programs with Otsuka involving its drug delivery formulation expertise and technology.

About Otsuka Pharmaceutical Co., Ltd.

Founded in 1964, Otsuka Pharmaceutical Co., Ltd. is a global healthcare company with the corporate philosophy: 'Otsuka-people creating new products for better health worldwide.' Otsuka researches, develops, manufactures and markets innovative and original products, with a focus on pharmaceutical products for the treatment of diseases and consumer products for the maintenance of everyday health. Otsuka is committed to being a corporation that creates global value, adhering to the high ethical standards required of a company involved in human health and life, maintaining a dynamic corporate culture, and working in harmony with local communities and the natural environment.

Otsuka Pharmaceutical Co., Ltd. is a wholly owned subsidiary of Otsuka Holdings Co., Ltd., the holding company for the Otsuka Group. The Otsuka Group comprises 153 companies and employs approximately 36,000 people in 23 countries and regions worldwide. Otsuka and its consolidated subsidiaries earned JPY955.9 billion (approx. US $9.7 billion*) in annual revenues in fiscal 2008.

* Exchange rate as of March 31, 2009.

About Penwest Pharmaceuticals

Penwest is a drug development company focused on identifying and developing products that address unmet medical needs, primarily for rare disorders of the nervous system. Penwest is currently developing A0001, a coenzyme Q analog drug candidate for inherited mitochondrial respiratory chain diseases.