Financial Results FAQ for Mass Communications

Q1. Sales in the pharmaceuticals business for fiscal term 2007 are further decreased over the projection for fiscal 2006. Can we understand this to be a temporary drop in revenue?

A1. It is fine to understand that this to be temporary. In fiscal 2006, two American companies have posted sales from the portion for 15 months, that is, as a result of modifications to the fiscal term, and Zepharma newly joined the group, therefore the tradition expectations are changing. There is a need to review sales for fiscal 2007, including these modification contributors.

Q2. We hear that as at April 2007 you planned to survive Daiichi Asubio Pharma as an independent entity. Why?

A2. The strengths of Daiichi Asubio Pharma are in biotechnology-based drugs and peptide research, and we wish to work on drug discovery by taking advantage of these features. Concerning company structure, we wish not to stay independent going forward, instead we will devise development fields and drug discovery fields within our interim-term management plan that would generate the most synergy for Daiichi Sankyo Group.

Q3. Do you mean that you plan to spin off Daiichi Asubio Pharma away from the group?

A3.We have no such plan.

Q4.We wish to know about the status of development of HGF for ischemic heart disease and peripheral arteriosclerosis.

A4. The status is as announced by AnGes MG. The status of development concerning peripheral arteriosclerosis is planned for announcement at the annual meeting of the American Society for Vascular Surgery to be held in Philadelphia, USA, in June. Concerning ischemic heart disease, there are issues with the catheter, however, no particular adverse effect was confirmed.

Q5. We wish to know when the Olmesartan combination drug will be launched to markets in Europe other than Germany.

A5. Last year we obtained the approval on the combination drug. Drug price and such vary by country, however, we plan to take this to market from this summer to autumn in France and Italy. In addition, we also plan to sell Olmesartan as a single agent in China.

Q6. What is the extent of impact of generic products in Japan? Also, what kinds of countermeasure to generic drugs are there?

A6. The format for prescriptions changed starting this April, and since it has been only a month, we cannot make any statements. Also, the national policy is to actively promote the use of generic drugs, and we cannot fight national policy. Prescription drug companies will supply a level and quality of information that generic drug companies cannot perform. For example, we supply information such as mega-studies on Mevalotin, which is something that generic drug companies can in no way do.

Q7. Why do you use a format of joint sales and promotion for Plavix?

A7. Daiichi Pharmaceutical had planned a joint sales, however, the scheme changed during the integration. We also believe an agreement was reached that has the least anti-synergy to Daiichi Sankyo.

Q8. If there is a blueprint for the 100.0 billion yen sales in the healthcare business, we wish to be told.

A8. We wish to take the sales to 100.0 billion yen in the mid to long term. In addition, we newly entered the market on skin care and health food, and expect about 30% of the sales from there.

Q9. Are there products planned at Sankyo and Daiichi Pharmaceutical for the next co-promotion?

A9. We plan to limit co-promotions to 2 products until March 2007. Relatedly, each company has already performed training on products of the other company.

Q10. We wish to know the MR structure of Japan from April 2007 onwards.

A10.We plan to have a 2,500-person structure for MR. The organization design is mostly completed.

Q11. Don't information (evidence) like the mega-studies in the US carry any significance as a countermeasure to generic drugs?

A11. In the US, 70~80% of drugs become generic drugs within a year after the patents expire. Authorized generics is perhaps possible as a countermeasure to generic drugs, however, the situation in the US is that evidence like mega-studies are utilized not for Mevalotin but for Pravastatin drug overall.

Q12. We wish to know the staff count needed in Japan in preparation for integration of the managements in April 2007.

A12.We have planned for approximately 9,000. We are currently planning the staff count needed for the organization.