September 29, 2006
Local (JPN)

For Immediate Release

Company name: DAIICHI SANKYO COMPANY, LIMITED
Representative: Takashi Shoda, President and Representative Director
(Code no.: 4568, First Section, Tokyo, Osaka and Nagoya Stock Exchanges)
Please address inquiries to Toshio Takahashi, Corporate Officer in Charge,
Corporate Communications Department
Telephone: +81-3-6225-1126

Spin-off and Share Transfer of the Businesses in Food Additive and Drug Ingredients of Sankyo Lifetech (a subsidiary of Sankyo)

Sankyo Lifetech Co., Ltd. (President: Koichi Ando, hereafter "Sankyo Lifetech"), a subsidiary of Sankyo Co., Ltd. of Daiichi Sankyo Group, and Mitsubishi-Kagaku Foods Corporation (President: Akira Sato, hereafter "Mitsubishi-Kagaku Foods"), a wholly-owned subsidiary of Mitsubishi Chemical Corporation (President: Ryuichi Tomizawa, hereafter "Mitsubishi Chemical"), have signed an agreement today to transfer to Mitsubishi-Kagaku Foods all the shares of a new wholly-owned subsidiary of Sankyo Lifetech (hereafter "New Company") to be established by spinning off its Food Additive and Drug Ingredients (hereafter "FDI") businesses.

 

New Company will become a wholly owned subsidiary of Mitsubishi-Kagaku Foods and further develop their businesses in future. The employees of New Company will be the assigned staff by Sankyo or Sankyo Lifetech, who will be re-assigned to the New Company after being transferred to Mitsubishi Chemical following the date of share transfer subject to the consent of each individual.

 

DIICHI SANKYO has been reviewing its non-pharmaceutical businesses to concentrate its management resources on its pharmaceutical businesses. In so doing, the company plans to make all non-pharmaceutical businesses of DAIICHI SANKYO Group independent by the end of March 2007.
The effect that this share transfer will have on DAIICHI SANKYO's business performance after March 2007 will be disclosed at a later date.

 

 

 

 

1. Planned dates of spin-off and share transfer
  Conclusion of Share Transfer Agreement September 29, 2006
  Board of Directors Meeting to approve spin-off plan November 2006
  Spin-off and its Registration January 2007
  Share Transfer of New Company March 30, 2007
 
The spin-off by Sankyo Lifetech will be the short-form separation that does not require the approval by its shareholders pursuant to the provisions of Article 805 of the Company Law.

 

 

2. Outline of the Companies Involved
  (1) Sankyo Lifetech Co., Ltd.
Location of Head Office: 23-14, Hongo 4-chome, Bunkyo-ku, Tokyo
Date Established: April 1, 2003
Representative: Koichi Ando
Capital: 300 million yen
Sales: 16,716 million yen (Fiscal Year Ended March 2006)
Number of Employees: Approximately 150 (Fiscal Year Ended March 2006)
Main Business: Manufacturing, importing, and sales of veterinary pharmaceutical products, food additives, drug ingredients, wood preservatives, pesticides for public health, polymer stabilizers, and other products


Sales: 2,292 million yen (Fiscal Year Ended March 2006)
Number of Employees: Approximately 30 (Fiscal Year Ended March 2006)
Major Products:
Product Category
Main Product
Lactobacillus products Lacris-S
Vitamin products Vitamin B group, Vitamin C
Enzyme products Tannase, Saccharase
Drug ingredients Dextranase, Liverall, Viotamin, Coating agents
     
  (2) Mitsubishi-Kagaku Foods Corporation
Location of Head Office: 3-9, Ginza 1-chome, Chuo-ku, Tokyo
Date Established: January 6, 1982
Representative: Akira Sato
Capital: 500 million yen
Sales: 128 million yen (Fiscal Year Ended March 2006)
Number of Employees: 76 (Fiscal Year Ended March 2006)
Main Business: Process and sales of food materials and food additives

 

 

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