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1Q FY2011 (Fiscal Year Ending March 31, 2012) Financial Results Presentation August 2, 2011 Eisai Co., Ltd.
Transcript

1Q FY2011(Fiscal Year Ending March 31, 2012)

Financial Results Presentation

August 2, 2011

Eisai Co., Ltd.

1

Safe Harbor Statement

• Materials and information provided during this presentation may contain so-called “forward-looking statements.” These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements.

• Risks and uncertainties include general industry and market conditions, and general domestic and international economic conditions such as interest rate and currency exchange fluctuations. Risks and uncertainties particularly apply with respect to product-related forward-looking statements. Product risks and uncertainties include, but are not limited to, technological advances and patents attained by competitors; challenges inherent in new product development, including completion of clinical trials; claims and concerns about product safety and efficacy; regulatory agency’s examination period, obtaining regulatory approvals; domestic and foreign healthcare reforms; trends toward managed care and healthcare cost containment; and governmental laws and regulations affecting domestic and foreign operations.

• Also, for products that are approved, there are manufacturing and marketing risks and uncertainties, which include, but are not limited to, inability to build production capacity to meet demand, unavailability of raw materials, and failure to gain market acceptance.

• The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

• This English presentation was translated from the original Japanese version. In the event of any inconsistency between the statements in the two versions, the statements in the Japanese version shall prevail.

2

Growing New Products

Progressing In East Asia

Lean & Efficient Operations

Accelerating Product Creation

Plan “HAYABUSA” Has Steadily Embarked

33

April – June 2010 April – June 2011

Results Results YOY

Consolidated Sales 204.5 167.3 82 [85]

(Billion Yen, %)

1Q FY2011 Sales HighlightsProgressing as planned

[ ] based on local currency

April – June 2010 April – June 2011

Results % Results % YOY

East Asia[Japan]

93.4[86.2]

45.7[42.1]

98.8[91.8]

59.1[54.9]

106[107]

April – June 2010 April – June 2011

Results % Results % YOY

Oncology franchise 20.3 9.9 24.0 14.3118

[132]

1Q FY2011 average exchange rates: U.S.$ = 81.7 yen (YOY –11.2%), Euro = 117.4 yen (YOY +0.4%), GBP = 133.2 yen (YOY -2.7%)

4

(Billion Yen)

April – June2010

April – June2011 Increase

Halaven - 2.6 +2.6

Treakisym/Symbenda - 0.8 +0.8

Humira* 3.5 5.5 +2.0

Lyrica (alliance revenue) 0.2 2.1 +1.9

Total 3.7 11.0 +7.3 (+201% YOY)0

30

60

90

120

3.7

11.0

2010年4月-6月 2011年4月-6月

(Billion Yen)

Newly launched products in 1Q FY2011

Halaven: Starting in UK in April, launched sequentially in Europe (Sweden, Denmark, Finland, Germany, Austria, Norway, the Netherlands, Portugal, and Spain); launched in Singapore in May

Gasmotin: Philippines in April, Glufast: Thailand in June

*including products with additional indications

Accelerated Contributions of New Products Four new products* have launched since FY2010 achievingsales of 11.0 billion yen (+201% YOY)

April – June 2010

April – June 2011

12

9

6

3

5

Halaven Launched in Japan on July 19 Novel mechanism of action: microtubule dynamics inhibitor

Halaven IV 1mg (eribulin mesylate) launched on July 19• Indication: Inoperable or recurrent breast cancer

• Single-agent chemotherapy demonstrated an overall survival benefit

• No premedication required and short administration time: seeking to potentially alleviate time and burdens for patients, pharmacists and nurses

• Manageable tolerability profile

• “Made in Japan” agent discovered and developed independently by Eisai

“Halaven seminar” to assure proper usage is currently underway in more than 20 cities nationwide

1,400 MRs in total to promote proper usage of Halaven

Halaven’s Global Growth Accelerates with Indications for Breast Cancer

6

U.S. Halaven accelerates its contribution to patients Sales: $31M Halaven has been adopted by more than 1,800 institutions since its launch,

contributing to patients with metastatic breast cancer (MBC) at a faster pace than originally planned

Numerous publications accepted at major cancer societies including ASCO; on-target promotional activities are underway

Through June 2011, market shares of 15% in fourth line+ MBC patients and 5% in third line MBC patients support rapid adoption in Halaven’s 8th month since launch*

Eisai Access Program has been established to assist patients access to the agent

Launched in Europe; off to a promising start Halaven was launched in Switzerland in July after

obtaining approval in May, following U.K., Sweden, Denmark, Finland, Germany, Austria, Norway, the Netherlands, Portugal, and Spain, where Halaven had already been launched

*Source: IntelliView data from IntrinsiQ, LLC. Research, Market Share Data: 2010-2011; Information on proprietary and non-published data is available at www.intrinsiq.com; Accessed July 2011

0.0

0.5

1.0

2011年度見通し 2012年度目標 2013年度目標 2014年度目標 2015年度目標

米国 欧州 イーストアジア ニューマーケット アセアン 合計

Halaven launched in Japan in July, realizing another milestone toward $1 billionsales target in FY2015

U.S.: MBC (3rd line+)EU: Locally advanced or MBC (3rd line+)Japan: Inoperable or recurrent breast cancer

Path Toward Maximizing HalavenAiming at accelerating global growth with additional indications for breast cancer

77

(US$ Billion) Forecasted Sales of Halaven

Breast cancer2nd line

U.S. and EU

SarcomaNon-small-cell

lung cancer

FY2011 forecast FY2012 target FY2013 target FY2014 target FY2015 target

US EU East Asia NM ASEAN

8

Toward Meeting Unmet Medical NeedsBendamustine hydrochloride obtained approval in Korea following Singapore and Japan

Sept. 2010: Launched in Singapore (product name: Symbenda®)Relapsed or refractory low-grade B-cell non-Hodgkin’s lymphoma and chronic lymphocytic leukemia

Dec. 2010: Launched in Japan (product name: Treakisym®)Relapsed or refractory low-grade B-cell non-Hodgkin's lymphoma and Mantle cell lymphomaAdopted by almost 100% of specialized institutions in Japan

May 2011: Symbenda® obtained approval in KoreaMultiple myeloma and chronic lymphocytic leukemia

A novel anticancer agent acting on DNA that has structure similar to alkylating agent and purine analogs Clinical trials are underway for additional indications: relapsed/refractory, intermediate-

and high-grade non-Hodgkin’s lymphoma Potential new hope for patients with lymphoma

* Internal estimate

Toward Value Maximization of HUMIRA in JapanAim for 22 billion yen sales in FY2011 and 50 billion-level sales in Japan, Korea, and Taiwan total in mid-term

ProductName

IndicationHUMIRA infliximab etanercept tocilizumab abatacept golimumab

Rheumatoid arthritis(RA)

Approved in April 2008 Approved Approved Approved Approved Approved

Inhibition of structural damage of joints in RA patients

Submission target

FY2011Approved Approved Approved

Ankylosing spondylitis

Approvedin October

2010Approved

(Approved outside of

Japan)

(Approved outside of

Japan)

Juvenile idiopathic arthritis

Approvedin July 2011 Approved Approved

(Approved outside of

Japan)

PsoriasisApprovedin January

2010Approved

(Approved outside of

Japan)

(Approved outside of

Japan)

Crohn’s diseaseApprovedin October

2010Approved

Ulcerative colitisSubmission

target FY2011

Approved

9

10

Steady Growth of Lyrica, Promising Growth Driver

Alliance revenue for 1Q FY2011: 2.1 billion yen

April 16, 2010 Obtained marketing authorization

June 11, 2010 Drug price listed

June 22, 2010 Market launch - postherpetic neuralgia

October 27, 2010 Change of indication - peripheral neuropathic pain

July 1, 2011 Long-term prescription possible with lifted restriction of administration

Positive Top-Line Results For Pfizer’s Lyrica In Phase 3 Study Of Patients With Fibromyalgia In Japan“...the top line results for Lyrica (pregabalin) Study A0081208…in the treatment of fibromyalgia.The results demonstrated a statistically significant reduction in the endpoint mean pain score, the primary efficacy analysis in the study, with pregabalin compared to placebo.”

<Extracted from press release by Pfizer Inc. on July 5, 2011>

Under the leadership of locally-hired President, Eisai China is transforming into business unit structure of oncology, CNS diseases, liver disease, and primary care• Reimbursement has been initiated in large cities such as Beijing and Shanghai for the main

products, Aricept and Methycobal• Aricept steadily achieved double-digit sales growth (+38% YOY in local currency)In July 2011, Eisai entered into a comprehensive marketing agreement with Orion Corporation concerning Orion's breast cancer drug Fareston (toremifene citrate) and its Parkinson’s disease treatment Eldepryl (selegiline hydrochloride)

11

East Asia to Drive Strong Growth

Sources: *1 ©2011IMS Japan, JPM April – July 2011, *2 Internal estimate,

*3 Created based on IMS Japan JPM June 2011, All rights reserved,

Eisai moved up to 5th place in domestic manufacturer ranking driven by strong pharmaceutical business (including generics) with top-level growth rate in the industry (+11%) outperforming the market by 5.6 points*1. Aricept sustained double-digit growth with the sales of 28.5 B yen, being ranked as top in the domestic market*110mg tablets also grow steadily (+55%) *2

Pariet (14.8 B yen) gained the largest market share in June (38.6%) on a single-month basis*3

Japan Business

China Business

Lean and Efficient Operations

12

Transformation of P/L structure in the U.S. as a result of progress in independent marketing

– Reduction of alliance fee (reduction of approx. 70% YOY on local currency basis)– Well-controlled SG&A expense excluding alliance fee (reduction of approx. 20% YOY

on local currency basis)– Transformation to oncology franchise has progressed to account for 50.5% of the U.S.

sales while sales from Aricept franchise in the U.S. declined ($57M, -89%)

Aim for “One Europe” initiatives in Europe to further expand the market access to provide products to targeted patients

– Approx. 60 MRs in ICBU (Institutional Care Business Unit) will cover oncology institutions across Europe

– Steady growth of epilepsy franchise achieved (+17%) through resource optimization under pan-European business unit structure (EPBU: Epilepsy Business Unit with approx. 175 MRs)

Focusing on women’s oncology as a core, expanding oncology franchise with approx. 120 medical reps (MRs)

Sales of oncology franchise in the U.S.: $276M (+28%)

13

New Products Awaiting Sequential LaunchSubmissions and approvals of new products by July 2011

*Submission by partner

April Japan Halaven (breast cancer)April Japan Lipacreon (pancreatic digestive enzyme replacement)*May Switzerland Halaven (breast cancer)May Japan Vasolan (pediatric)May Korea Symbenda (multiple myeloma, chronic lymphocytic leukemia)June Canada BANZEL (Lennox-Gastaut syndrome)July Japan Humira (juvenile idiopathic arthritis)*

Applicationsaccepted

Approvalsobtained

June EU Perampanel (refractory partial onset seizures)July U.S. Dacogen (acute myelogenous leukemia)July EU Zonegran (monotherapy)

14

Partial onset seizuresPrimary generalized tonic-clonic seizures(adjunctive therapy)

Partial onset seizures(monotherapy)

Lennox-Gastautsyndrome

Partial onset seizures(pediatric, adjunctive

therapy)

Target $1B-level sales

Up to FY2015Target $500M-level sales

Inhibitory

signal

InhibitoryGABAsignal

ExcitatoryAMPAsignal

Excitatory

signal

ExcitatoryAMPAsignal

InhibitoryInhibitoryGABAsignal

Perampanel ameliorates imbalance of excitatory and inhibitory neurotransmissions

Perampanel

PerampanelFirst-in-class AMPA receptor antagonist

Three global phase III studies demonstrated reduction in the frequency of partial onset seizures by 40% (mean; placebo 13%) with responder rate of 40% (placebo 17%)

Suggested efficacy on secondarily generalized seizures Few significant severe adverse events Simple dosage and administration: once-daily oral MAA for perampanel for the treatment of partial onset

seizures was accepted for review in Europe* Phase III study to evaluate perampanel for the treatment of

refractory generalized tonic-clonic seizures (adjunctive therapy) ongoing; phase III studies for the treatment of refractory partial onset seizures (monotherapy) and Lennox-Gastaut syndrome are in preparation

*U.S. NDA re-submission is in preparation

Beyond FY2015

15

Farletuzumab (MORAb-003)First-in-class monoclonal antibody targeting folate receptor alpha (FRA)

20% of patients had 2nd remission greater than 1st remission in phase II study (occurs <5% with standard therapy)Phase III study in platinum-sensitive ovarian

cancer is steadily ongoing (study FAR-131) Evaluating benefit of farletuzumab to extend

progression-free survival in patients with first relapsed ovarian cancer in combination with standard therapy with first line single agent

Target submission: FY2012 (Japan, U.S., Europe)Phase II/III study in platinum-resistant ovarian

cancer (study FAR-122) Evaluating overall survival benefit of farletuzumab in

combination with weekly taxane regimen Target to complete the study in FY2012

Phase II study in NSCLC: ongoing Registering only the FRA-positive patients identified

by biomarkers

Signal transduction

Cellular pathway for transformation

Nucleus

P-

Cell transformation& proliferation

Cell stasis &suppressed proliferation

antibody mediated cytoxicity via

ADCC and CDC

Lyn kinase

over-expressed folate receptor alpha

Over expressed folate receptor alpha

Antibody-mediated cytotoxicity viaADCC or CDC

farletuzumab exerts anticancer activity via suppression of FRA-mediated transduction and immune-effector function

ADCC = antibody-dependent cellular cytotoxicityCDC = complement dependent cytotoxicity

Change in summed longest diameter of target lesions

LenvatinibTimely development to meet unmet medical needs

16

Partial response (PR): 34 cases (59%)(95% CI) (45-71%)

High tumor shrinkage effect was observed in phase II study in patients with differentiated thyroid cancer

Study suggested activity regardless of prior VEGF receptor targeted therapy

Phase III study ongoing Target submission: FY2013

(Japan, U.S., Europe)

High tumor shrinkage effectobserved in Phase I study with BRAF wild type

Phase II study ongoing with patients stratified based on BRAF gene mutation status

Molecular-targeting agent expected for its efficacy in multiple types of cancers as a multi-kinase inhibitor with unique receptor tyrosine kinase (RTK) inhibiting profile

BRAF wild type:Change in summed longest diameter of target lesions

Differentiated thyroid cancer

Melanoma

FY2011 FY2012 FY2013 FY2014 and thereafterNeurology

Oncology

Critical care

GI, Urology, etc.

1717

HUMIRA*ulcerative colitis

HUMIRA*joint destruction

UritosOveractive

bladder

eribulinrefractory breast cancer with fewer prior treatment

lenvatinibmelanoma

lenvatinibendometrial carcinoma

E5501Idiopathic

thrombocytopenicpurpura

E2212AD

BAN2401AD

perampanelmonotherapy

partial onset seizures

E2609AD

AS-3201diabetic

neuropathy

bendamustine*multiple myeloma

MORAb-009mesothelioma

E6201solid cancer

MORAb-004solid cancer

E7050solid cancer

MORAb-028melanoma

ONTAKperipheral

T-cell lymphoma

MORAb-022rheumatoid arthritis

E5501Thrombocytopenia associated

with liver disease -short

E5501Thrombocytopenia associated

with liver disease - long

E6201psoriasis

Submission ScheduleRobust pipeline awaiting sequential submissions

LIVACTdecompensated hepatic cirrhosis

lenvatinibthyroid cancer

perampanelAdjunctive therapy

for primary generalized tonic-clonic seizures

bendamustine *recurrent/refractory

intermediate/high grade NHL

perampanelLennox-Gastaut syndrome

farletuzumabovarian cancer

cinitapridefunctional

gastrointestinal disorder

: Major product in franchise

*:Submission by partner

: Submitted/submission being processed

E7016solid cancer

DacogenAML

eribulinsarcoma

perampanelpartial onset seizures

Zonegranmonotherapy

lorcaserin*obesity

Zonegranpediatric

AriceptLewy body dementia

eribulinNSCLC

18

Overview of 1Q FY2011 Consolidated Financial Results

and Outlook for FY2011

1919

April – June 2010 April – June 2011

Results % Results % YOY

Net Sales 204.5 100.0 167.3 100.0 82

Cost of Sales 43.5 21.3 43.0 25.7 99

Gross Profit 160.9 78.7 124.3 74.3 77

R&D Expenses 36.0 17.6 33.7 20.2 94

SG&A Expenses 92.1 45.1 68.4 40.9 74

Operating Income 32.8 16.0 22.2 13.3 68

Ordinary Income 30.2 14.8 21.2 12.6 70

Net Income 18.8 9.2 13.5 8.1 72

(Billion Yen, %)

1Q FY2011 Consolidated Financial ResultsSteady progress toward 1H FY2011 forecast

Cash income is the total amount of cash available for investments for growth, business development, dividend payment, and repayment of borrowings, etc.Cash income = Net income + Depreciation of PP&E and Amortization of intangible assets + In-process R&D + Amortization of goodwill + Loss on impairment (including loss on devaluation of investment securities)1Q FY2011 average exchange rates: U.S.$ = 81.7 yen (YOY –11.2%), Euro = 117.4 yen (YOY +0.4%), GBP = 133.2 yen (YOY -2.7%)

Cash Income 32.6 25.9 79

20.7 26.1 25.7

17.325.1 20.2

44.1

46.540.9

17.82.4

13.3

0%

20%

40%

60%

80%

100%

第3四半期累計 第4四半期 第1四半期 第2~4四半期

2010年度 2011年度

1 - 3QCumulative

4Q 1Q 2 – 4Q

2020

P/L Transformation Embarking SuccessfullyToward realizing OP ratio of the plan “HAYABUSA”

Focus on projects with

priority

Further efficiency

Seeking to achieve the first FY target of

the plan

Maintain the same level

Aricept LOEin November • Sales decline of U.S.

Aricept• Cost related to

severance payment for lean operation

• New products launch

Sales 155.1 B yen

• Partial contribution of lean operation effect

• Growth of new products

• Full contribution of lean operation effect

• New products contribution to expand

Sales 167.3 B yen

FY2010 FY2011

OP Ratio

SG&A

R&D

COGS

21

Achieving the Planned Operating ProfitDrivers for Improving Operating Profit Ratio

Rapid expansion of high-profitability, independently-marketed products mainly in oncology franchise

Continuous growth in East Asia Region

Further efficiency of SG&A through lean operation

Toward Operating Profit of 109B yen (OP ratio 15.6%) in FY2011

0

50

100

150

200

250

2010年度1Q 2011年度1Q

Halaven シンベンダ/トレアキシン

Aloxi DacogenFragmin その他

2222

Sales of Oncology Franchise Acceleration of transformation to oncology franchise

(Billion Yen, %)

(Billion Yen)

Oncology-related products grew by 32% on a local currency basis, achieving 14.3% of total sales (9.9% YOY).

April-June2010

April-June2011

Results Results YOY

Halaven - 2.6 *1 -

Symbenda/Treakisym*2 - 0.8 -

Aloxi 8.8 9.7 109 [123]

Dacogen 4.3 4.9 113 [127]

Fragmin 4.3 3.5 81 [92]

Others 2.8 2.5 89 [98]

Oncology-related Total

20.3 24.0 118 [132]

[ ] based on local currency*1 Halaven Sales in the U.S. was US$31M*2 Symbenda was launched in September 2010 in Singapore; Treakisym was launched in December 2010 in Japan.

Symbenda/Treakisym

Others

1Q FY2010 1Q FY2011

25

20

15

10

5

2323

Sales of Aricept and Pariet/AcipHexSteady growth in East Asia Region

(Billion Yen, %)

April-June 2010 April – June 2011

Results Results YOY

East Asia[Japan]

26.5[25.3]

30.0[28.5]

113[113]

U.S.[$ million]

50.2[545]

4.7[57] *1

9[11]

Europe 5.8 6.8 118New Markets

& ASEAN 0.4 0.5 113

Total 82.9 42.0 51 [52]

Japan, Europe and New Markets & ASEAN achieved double-digit growth

[ ] based on local currency

*1 U.S. includes the sales of Aricept 23mg ($10M) and the sales of AG (Authorized generic; $30M)

Aricept (Billion Yen, %)

April-June 2010 April – June 2011

Results Results YOY

East Asia[Japan]

16.0[15.1]

15.5[14.8]

97[98]

U.S.[$ million]

17.0[18.5]

15.8[194]

93[105]

Europe 1.8 1.4 80New Markets

& ASEAN 0.5 0.4 92

Total 35.3 33.2 94 [100]

Sales remained on the same level as the previous year despite the generic launch in Japan (+8%growth YOY*2 based on wholesaler shipment to end users)

[ ] based on local currency

Pariet/AcipHex

*2 Created based on ©2011IMS Japan, JPM April-June 2011, All rights reserved

2424

Sales by Segment Regional transformation to East Asia progressed

April – June2010

April – June2011

Sales % Sales % YOY

East Asia*

[Japan]93.4

[86.2]45.7

[42.1]98.8

[91.8]59.1

[54.9]106

[107]

U.S.* 88.6 43.3 44.8 26.851

[57]

Europe* 11.1 5.4 12.3 7.3110

[110]New Markets& ASEAN* 1.8 0.9 1.8 1.1

101[106]

Reporting Segment Total 194.9 95.3 157.7 94.2 81

Others 9.6 4.7 9.6 5.8 100

Consolidated Sales 204.5 100.0 167.3 100.0

82[85]

(Billion Yen, %)

(Billion Yen)

[ ] based on local currency

0

500

1000

1500

2000

2500

2010年度1Q 2011年度1Q

日本 米国欧州 ニューマーケット アセアン

その他

JapanEurope

U.S.New Markets& ASEAN

1Q FY2010 1Q FY2011

250

200

150

100

50

Others*Pharmaceuticals Businesses of East Asia, U.S., Europe, and New Markets & ASEAN

2525

Profit by SegmentU.S. Business achieved 20%+ profitability in addition to the growth in East Asia

April – June 2010 April – June 2011

Results % % on Sales Results % % on

Sales YOY

East Asia*[Japan]

38.5[36.8]

54.5 41.242.2

[40.3]72.5 42.7

110[110]

U.S.* [$ million]

26.5[28.8]

37.5 29.910.3

[12.7]17.8 23.1

39[44]

Europe* 1.3 1.8 11.5 1.1 1.9 9.0 86

New Markets& ASEAN* 0.3 0.5 18.7 0.2 0.3 8.7 46

Reporting Segment Total 66.6 94.2 34.2 53.8 92.4 34.1 81

Others 4.1 5.8 42.5 4.4 7.6 46.2 109

R&D expenses & Non-allocated SG&A expenses

(37.9) 18.6 (36.0) 21.5 95

Consolidated Operating Profit 32.8 16.0 22.2 13.3 68

(Billion Yen, %)

*Segment profit from U.S. pharmaceuticals business in local currency was calculated based on average exchange rate*Pharmaceuticals Businesses of East Asia, U.S., Europe, and New Markets & ASEAN

(Billion Yen)

0

200

400

600

800

2010年度1Q 2011年度1Q

イースト アジア 米国

欧州 ニューマーケット アセアン

その他

U.S.New Markets & ASEAN

East Asia.EuropeOthers

1Q FY2010 1Q FY2011

80

60

40

20

Reporting Segment Margin1Q FY2010 34.2%1Q FY2011 34.1%

26

FY2010 FY2011

Results % Forecast % YOY

Sales 768.9 100.0 700.0 100.0 91Cost of Sales 167.8 21.8 180.0 25.7 107

Gross Profit 601.1 78.2 520.0 74.3 87

R&D Expenses 145.0 18.9 132.0 18.9 91

SG&A Expenses 343.0 44.6 279.0 39.9 81

Operating Income 113.1 14.7 109.0 15.6 96

Ordinary Income 105.2 13.7 104.0 14.9 99

Net Income 67.4 8.8 69.5 9.9 103

(Billion yen, %)

EPS (yen) 236.5 243.9Cash Income 120.0 120.0Dividends (yen) 150 150

Forecast for FY2011 Consolidated Financial Results

Cash income is the total amount of cash available for investments for growth, business development, dividend payment, and repayment of borrowings, etc.Cash income = Net income + Depreciation of PP&E and Amortization of intangible assets + In-process R&D + Amortization of goodwill + Loss on impairment (including loss on devaluation of investment securities)FY2010 average exchange rate: U.S. $ = 85.7 yen (YOY -7.7%), Euro = 113.1 yen (YOY -13.7%), GBP = 133.1 yen (YOY -10.2%)Estimated exchange rates for FY2011: U.S. $ = 85 yen, Euro = 110 yen, GBP = 135 yen

27

Reference Data

27

2828

Performance of East Asia Pharmaceutical Business

April – June 2010 April – June 2011

Results % Results % YOY

Sales 93.4 100.0 98.8 100.0 106 [106]

Aricept 26.5 28.4 30.0 30.3 113 [113]

Pariet 16.0 17.2 15.5 15.7 97 [97]

Methycobal 10.0 10.7 9.4 9.5 93 [95]

HUMIRA 3.5 3.7 5.5 5.5 157 [158]

Stronger Neo-Minophagen C/Glycyron Tablets

2.1 2.2 1.9 1.9 93 [96]

Segment Profit 38.5 41.2 42.2 42.7 110

(Billion yen, %)

[ ] based on local currency

2929

April –June 2010 April – June 2011Results % Results % YOY

Sales 315 100.0 330 100.0 105Methycobal 149 47.2 146 44.4 98Stronger Neo-Minophagen C/Glycyron Tablets

61 19.3 67 20.3 110

Aricept 22 7.1 31 9.3 138Pariet 26 8.4 20 6.1 77

April – June 2010 April - June 2011Results % Results % YOY

Sales 86.2 100.0 91.8 100.0 107Prescription drugs 77.1 89.5 82.1 89.4 106Aricept 25.3 28.5 113Pariet 15.1 14.8 98Methycobal 8.0 7.4 94HUMIRA 2.6 4.6 175Actonel 2.9 2.9 99OTC 4.5 5.3 5.0 5.5 111Generic drugs 3.0 3.5 3.2 3.5 106Diagnostics 1.5 1.7 1.5 1.6 100Segment Profit 36.8 42.7 40.3 43.9 110

Performance of East Asia Pharmaceutical Business

< China >

(Billion yen, %)

(MM RMB, %)

< Japan >

3030

($MM, %)

Performance of U.S. Pharmaceuticals Business

April – June 2010 April – June 2011

Results % Results % YOY

Sales 963 100.0 548 100.0 57

Aricept 545 56.7 57*1 10.5 11

AcipHex 185 19.2 194 35.4 105

Halaven - 31 -

Aloxi 96 118 123

Dacogen 47 60 127

Total MGI 152 187 123

Fragmin 47 43 92

Total oncology-related products 216 22.4 276 50.5 128

Segment Profit*2 288 29.9 127 23.1 44

*1 Including $10M from Aricept 23 mg sales and $30M revenue from AG (Authorized Generic).*2 Segment profit from U.S. pharmaceuticals business in local currency was calculated based on average exchange rate.

31

(Billion Yen, %)

Performances ofEurope Pharmaceutical Business andNew Markets & ASEAN Pharmaceutical Business

April – June 2010 April – June 2011

Results % Results % YOY

Sales 11.1 100.0 12.3 100.0 110 [110]

Aricept 5.8 51.9 6.8 55.7 118 [119]

Pariet 1.8 16.3 1.4 11.8 80 [79]

Zonegran 1.1 9.7 1.2 9.6 109 [109]

Segment Profit 1.3 11.5 1.1 9.0 86

April – June 2010 April – June 2011

Results % Results % YOY

Sales 1.8 100.0 1.8 100.0 101 [106]

Aricept 0.4 24.8 0.5 27.9 113 [119]

Pariet 0.5 25.6 0.4 23.5 92 [ 98]

Segment Profit 0.3 18.7 0.2 8.7 46

< New Markets & ASEAN >

< Europe >

[ ] based on local currency

[ ] based on local currency

(Billion Yen, %)


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