Tanabe Prospects to 2010

Summary

Tanabe Sells Ethical And Otc Pharmaceuticals, Diagnostics, Animal Health Products, Food Chemicals And Fine Chemicals. Tanabe Currently Markets Drugs In The Following Therapeutic Areas: Cardiovascular & Respiratory; Central And Peripheral Nervous System; Digestive System; And Immunology & Anti-Inflammatory. Tanabe Is Currently Pushing Ahead Its New Business Initiative Known As "Change Tanabe 2010", A Business Strategy Leading The Company Forward Into 2010.

The Upcoming Merger With Mitsubishi Pharma Will Significantly Alter Tanabe's Revenue, Product Portfolio And Market Share. Combining Domestic Ethical Pharmaceutical Sales Of 213.1 Billion From Mitsubishi And 178.2 Billion From Tanabe, The New Company Is Estimated To Be The Fourth Largest Pharmaceutical Company In Japan In Terms Of Ethical Drug Sales, Placing It Above Pfizer And Immediately Below Takeda, Astellas And Daiichi Sankyo. When The New Company Is Formed, Tanabe Will Simultaneously Establish A Generics Division, And To Develop That Division Into A Seperate Company During Fiscal 2008. Tanabe's Directors Deem The Merger The Only Viable Way To Significantly Improve Tanabe's Sales And Market Share In The Current Japanese Drug Market.

However, The Majority Of Tanabe's Major Products Have Been In Steady Sales Decline Over The Last Few Years, With Sales Forecast To Continue To Fall. This Reflects An Increasingly-Difficult Domestic Environment As Larger Pharma Companies From Europe And The Us Are Afforded More And More Of The Japanese Market Share. The Japanese Government Has Also Been Enforcing A Drug Pricing Campaign And Promotion Of Cheaper Generic Versions Of Many Drugs. Tanabe Has Addressed These Problems In Two Ways, Firstly, By Developing New Indications For Currently-Marketed Drugs, And Secondly, By Improving Its R&D Pipeline By Licensing-In And Developing Promising Candidate Drugs From Other Companies. Tanabe Has Also Sought To Develop Candidate Drugs Outside Japan To Broaden Its Overseas Profile.

Currently There Are Two Major Drugs Being Developed For New Indications (Maintate And Remicade). In The Future, It Is Anticipated That Remicade Will Be The Focus Of Much R&D Investment. Centocor And Schering-Plough (To Whom Remicade Is Licensed In Some Markets) Have Received Approvals For The Drug In A Whole Range Of Indications, Including Ankylosing Spondylitis And Psoriatic Arthritis, For Which Tanabe Can Develop The Drug In The Japanese Market In The Future.

Pharmaceutical Company Intelligence Reports From Espicom Provide A Full Review Of The Company's Activities Together With Five-Year Sales Forecasts For Its Key Products. The Company's Financial Performance Is Covered In-Depth, From Its Latest Results To A Complete Analysis Of Its Latest Full Fiscal Year And An Outlook For The Future. A Section On Company Strategy Covers Mergers, Acquisitions And Divestitures, Key Agreements, Products And R&D. An Overview Of Key Products And R&D Is Followed By A Comprehensive Review Of The Company's Product Portfolio And Research And Development Pipeline By Therapeutic Area. In Addition, Supplementary Appendices Provide More In-Depth Information On Financials, Agreements And Corporate Events.

Contents

• Executive Summary
  • Introduction
  • Current Financial Position
  • Business Segment Performance
  • Geographic Segment Performance
  • Company Strategy
  • R&D Strategy
  • Mergers, Acquisitions and Divestitures
  • Key Agreements
  • Production
  • Employees
  • Product Performance Forecasts
  • Pipeline Analysis
  • Discontinued R&D Projects
  • Conclusions
• Therapeutic Area Focus
  • R&D PIPELINE
• Cardiovascular And Respiratory
• System
  • Marketed Products
  • Herbesser
  • Lochol
  • Maintate
  • Sermion
  • Others
  • R&D Projects
  • Carmoterol
  • Roflumilast
  • Growth Forecast
  • CENT RAL AN D PERIPHERAL NE RVOUS
• Syste M
  • Marketed Products
  • Ceredist
  • Ceredist Sales (2002A-2012E)
  • Others
  • R&D Projects
  • T-0047
  • TA-8317
  • Growth Forecast
• Immunology And Inflammation
  • Marketed Products
  • Remicade
  • Others
  • R&D Projects
  • Golimumab
  • TA-5493
  • Growth Forecast
• Digestive System
  • Marketed Products
  • Gastrom
  • Others
  • Growth Forecast
• Others
  • Marketed Products
  • R&D Projects
  • Avanafil (TA-1790)
  • SGLT-2 inhibitor
  • T-0128
  • TA-1702
  • TA-5538
  • TA-6666
• Appen Dix 1 - Finan Cial Performance
  • Full Year Results 2007
• Appen Dix 2 - Key Corporate Event S
• Appen Dix 3 - Key Agree Ment S
  • aaiPharma Inc
  • Alfresa Pharma Corporation
  • Altana
  • Cell Therapeutics Inc/Kyoto University
  • Cephalon Inc
  • Genelabs Technologies Inc
  • GlaxoSmithKline
  • Johnson & Johnson
  • Maruho Co Ltd
  • Menarini Group
  • Roche
  • sanofi-aventis
  • Schering AG
  • Vivus Inc
• Appen Dix 4 - Infrastructure
  • Research And Development Facilities
  • Manufacturing Facilities
• Appen Dix 5 - Major Pharmaceutical
• Subsidiaries/Joint Vent Ures
  • Subsidiaries
  • Joint-venture Companies
• Appen Dix 6 - Product Index
• Index of Tables
  • Principal Operating Results
  • Sales By Business Area
  • Capital Expenditure By Business Area
  • Operating Income By Business Area
  • Identifiable Assets By Business Area
  • Sales By Geographical Area
  • Recent Product Approvals
  • Major Cardiovascular and Respiratory System Products, 2007
  • Major Central and Peripheral Nervous System Products, 2007
  • Major Immunology and Inflammation Products, 2007
  • Major Digestive Products, 2007
  • Major Others Products, 2007
• Index of Charts
  • Sales By Business Area
  • Capital Expenditure By Business Area
  • Operating Income By Business Area
  • Sales By Geographical Area
  • Top Selling Products, 2007
  • Herbesser Sales (2002A-2012E)
  • Lochol Sales (2002A-2012E)
  • Tanatril Sales (2002A-2012E)
  • Roflumilast Sales (2009E-2013E)
  • Remicade Sales (2002A-2012E)
  • Gastrom Sales (2002A-2012E)
  • Sales, Costs and Operating Income
  • Profitability and Research Ratios
  • R&D Expenditure and Capital Expenditure
  • Current Assets, Liabilities and Ratio
  • Assets, Cash and Liquidity
  • Employees and Productivity