Dainippon Sumitomo - Pharma Prospects to 2011

SUMMARY

Dainippon Sumitomo Pharma (DSP) is a research-based pharmaceutical company, headquartered in Osaka, which has resulted from the merger of Dainippon Pharmaceutical (which acts as the surviving company) and Sumitomo Pharmaceutical (a division of Sumitomo Chemical). This report provides a full review of the company's activities together with sales forecasts for key products to 2010.

In the first nine months of fiscal 2005, Dainippon Sumitomo Pharma's net sales rose by 5.6% compared to the same 2004 period, to \ 84.7 billion. Net income rose by 51.6% to \ 4 billion, whilst operating income rose by 113% to \ 9.0 billion.

R&D Pipeline Overview

• Lonasen is an antipsychotic that features a completely innovative chemical structure because of its potential to block both dopamine D2 and 5-HT2 receptors. It is awaiting approval in the US.
• Zonisamide has been filed in the US for the treatment of Parkinson's disease, and is in late stage Phase III trials for this indication in Japan.
• AS-3201 is currently in Phase III trials in the US and Canada and Phase IIa trials in Japan for diabetic neuropathy. A preliminary agreement has been signed with Kyorin Pharmaceutical related to the joint development and co-marketing of the product in Japan.
• AC-3933 is a benzodiazepine receptor inverse agonist with a novel mechanism of action that is expected to improve memory loss. Phase IIa trials have been completed in Europe in tablet formulation and it is under preparation for Phase IIa trials in the US.

Major Products Forecast to 2010

• Klaracid (Anti-infective)
• Meropen (Anti-infective)
• Gasmotin (Gastrointestinal)
• Ebastel (Anti-allergenic
• Prorenal (Cardiovascular)
• Almodin (Cardiovascular)
• Zyrtec (Anti-allergenic)
• Sumiferon (Hormone)
• Growject (Hormone)
• Tagamet (Gastrointestinal)
• Excegran (CNS)
• Almarl (Cardiovascular)

TABLE OF CONTENTS

Latest Results

EXECUTIVE SUMMARY

• Introduction
• Financial Performance 2005
  • Sales and Market Position
  • Income
    • Sales, Costs and Operating Income - Dainippon
  • Expenditure
    • Capital Expenditure
    • Capital Expenditure by Business Area - Dainippon
    • Capital Expenditure by Business Area - Dainippon
    • Capital Expenditure by Business Area - Sumitomo
    • Capital Expenditure by Business Area, 2005
    • R&d Expenditure
    • R&D Expenditure and Capital Expenditure - Dainippon
  • Divisional Performance
    • Sales by Business Area - Dainippon
    • Sales by Business Area - Dainippon
    • Operating Income by Business Area - Dainippon
    • Total Assets by Business Area - Dainippon
    • Total Assets by Business Area, 2005 - Dainippon
  • Geographic Performance
• Company strategy
• Product/R&D Overview
  • Key Products
    • Recent Product Launches
    • Recent Product Approvals
  • R&D Strategy
    • Key R&D Projects
  • R&D Pipeline Overview
  • Sales Forecast
    • Sales of Major Products
• Conclusions

PRODUCT PORTFOLIO/RESEARCH & DEVELOPMENT

• Major Products, Therapeutic Areas and Sales
• Sales of Major Products, 2005
• R&D Pipeline

• Cardiovascular and Respiratory System - Products
  • Major Launched Products
  • Amlodin
    • Sales
    • Key Markets/Indications/Formulations
    • Competitor Products
    • Lawsuits
    • Sales Forecasts
  • Amlodin Sales (2000A-2010E)
  • ProRenal
    • Sales
    • Key Markets/Indications/Formulations
    • Further Development
    • Sales Forecasts
  • Prorenal Sales (2000A-2010E)
  • Synagis
    • Sales
    • Key Markets/Indications/Formulations
    • Safety Issues
    • Sales Forecast
  • Synagis Sales (2000A-2010E)
  • Other Cardiovascular Products
• Cardiovascular and Respiratory System - R&D
  • Ephedrine Nagai
  • Replagal
  • SMP-797
• Cardiovascular and Respiratory - Summary
  • Growth Factors
  • Limiting Factors
• Anti-infective - Products
  • Major Launched Products
  • Meropen/Merrem
    • Sales
    • Key Markets/Indications/Formulations
    • Further Development
    • Competitor Products
    • Sales Forecasts
  • Meropen Sales (2000A-2010E)
  • Klaricid
    • Sales
    • Key Markets/Indication/Formulations
    • Competitor Products
    • Sales Forecast
  • Klaricid Sales (2000A-2010E)
• Anti-infective - R&D
  • AmBisome
• Anti-infective - Summary
  • Growth Potential
  • Limiting Factors
• Gastrointestinal - Products
  • Major Launched Products
  • Gasmotin
    • Sales
    • Key Markets/Indications/Formulations
    • Further Development
    • Competitor Products
    • Sales forecast
  • Gasmotin Sales (2000A-2010E)
    • Clinical Trial Results
  • Other Products
• Gastrointestinal - R&D
• Gastrointestinal - Summary
  • Growth Potential
  • Limiting Factors
• Anti-allergenic - Products
  • Major Launched Products
  • Ebastel
    • Sales
    • Key Markets/Indications/Formulations
    • Competitor Products
    • Sales Forecast
  • Ebastel Sales (2000A-2010E)
  • Other Products
• Anti-allergenic - Summary
• Hormone/Biological - Products
  • Major Launched Products
  • Sumiferon
    • Sales
    • Key Markets/Indications/Formulations
    • Further Development
    • Competitor Products
    • Sales Forecast
  • Sumiferon Sales (2000A-2010E)
• Hormones/Biological - Summary
• Central Nervous System - Products
  • Major Launched Products
  • Tremode/Excegran/Exogran/Zonegran
    • Sales
    • Key Markets/Indications/Formulations
    • Generic Competition
    • Further Development
    • Sales Forecast
  • Excegran Sales (2000A-2010E)
  • Other Products
• Central Nervous System - R&D
  • AC-3933
  • AC-5216
  • Lonasen
  • AS-3201
    • Clinical Trial Results
  • SM-13496
• Central Nervous System - Summary
  • Growth Potential
  • Limiting Factors
• Diabetes - Products
• Diabetes - R&D
  • Repaglinide
  • SMP-862
• Diabetes - Summary
  • Growth Potential
  • Limiting Factors
• Other - Products
  • Calsed
• Other - R&D
  • SM-11355
  • SMP-114
  • SMP-986

APPENDIX 1 - FINANCIAL PERFORMANCE

• Full Year Results 2005
  • Dainippon
  • 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
  • Sumitomo Pharmaceuticals

APPENDIX 2 - KEY AGREEMENTS

• Almirall Prodesfarma SA
  • 15th May 2001
• Astellas Pharma
  • 26th September 2002
• AstraZeneca
  • 31st May 2000
  • 1st October 2000
  • 15th January 2004
• Conforma Therapeutics Corporation
  • 29th June 2005
• Eisai
  • 30th March 2004
  • 28th March 2005
• Gilead Sciences
  • 27th September 1996
• Idenix Pharmaceuticals Inc
  • 29th June 2001
  • 8th January 2003
• Kissei Pharmaceutical Co Ltd
  • 17th March 2005
• Kyorin Pharmaceutical Co Ltd
  • 16th March 2005
• Merck & Co
  • 5th July 2005
• Merck KGaA
  • 7th March 2003
• Merckle GmbH
  • 1st June 2004
• Mitsubishi Pharma Corporation
  • 28th December 2000
  • 25th March 2005
• Novartis
  • 12th February 2002
• Novo Nordisk
  • 17th September 2004
• Ono Pharmaceutical
  • 6th December 2005
• Protez Pharmaceuticals Inc
  • 17th May 2005
  • 24th August 2005
• Regeneron Pharmaceuticals Inc
  • 31st December 2001
• sanofi-aventis
  • 27th August 2003
• Schering-Plough
  • 12th September 2001
• Sunesis Pharmaceuticals Inc
  • 15th October 2003
• Taisho Pharmaceutical Co Ltd
  • 1st December 1999
• Licensing
• Co-Promotion/Co-Marketing

APPENDIX 3 - INFRASTRUCTURE

• Drug Research Division
• Drug Development Division
• Technology Research and Development Centre
• Research and Development Facilities
• Manufacturing Facilities

APPENDIX 4 - KEY PHARMACEUTICAL SUBSIDIARIES/JOINT VENTURES

• Subsidiaries
• Joint Ventures

APPENDIX 5 - PRODUCT INDEX