For Immediate Release

Company name: DAIICHI SANKYO COMPANY, LIMITED
Representative: Joji Nakayama, Representative Director, President and CEO
(Code no.: 4568, First Section, Tokyo Stock Exchange)
Please address inquiries to Noriaki Ishida, Executive Officer,
Vice President, Corporate Communications Department
Telephone: +81-3-6225-1126
http://www.daiichisankyo.com

Announcement Regarding Issuing of Shares and Total Underwriting of Shares by Kitasato Daiichi Sankyo Vaccine

Tokyo, Japan (June 30, 2015) – Daiichi Sankyo Company, Limited (hereafter, Daiichi Sankyo) today announced that it has underwritten all shares of the share issue of its Group company, Kitasato Daiichi Sankyo Vaccine Co., Ltd. (hereafter, Kitasato Daiichi Sankyo Vaccine), with the aim of strengthening development of its future vaccine business and financial base. Furthermore, Daiichi Sankyo has completed the transaction for this initiative today.

 

1. Overview of share issue underwriting

1) Underwritten amount:                               10,000,005,000 yen

2) Amount of increased capital:                      5,000,002,500 yen

3) Amount of increased capital reserve:           5,000,002,500 yen

4) Underwriting party:                                     Daiichi Sankyo

5) Voting ratio after underwriting:                  Daiichi Sankyo 80%, The Kitasato Institute 20%

 

2. Reason for implementing share issue underwriting

Kitasato Daiichi Sankyo Vaccine was established in 2011 as a joint venture between Daiichi Sankyo and The Kitasato Institute (Daiichi Sankyo voting ratio 51%). Through subsequent expansion, a wide range of initiatives have been implemented and its business has been growing. In order to continue to ensure stable product supply, as well as research, develop, and launch new products in addition to realizing the smooth operation of a new facility to meet global quality standards, Daiichi Sankyo is aiming to strengthen its future vaccine business and financial base by underwriting the total share issue.

 

3. Vaccine business within Daiichi Sankyo Group

In April 2015, Daiichi Sankyo transferred its vaccine-related functions, apart from some alliance work etc., to the control of Kitasato Daiichi Sankyo Vaccine, creating a centralized base for vaccine business operations. Through coordinated collaboration, including the establishment of Japan Vaccine in 2012 as a joint enterprise with GlaxoSmithKline to manage latter stage clinical development and marketing, the structure has been further integrated to incorporate research, development, production, and marketing.