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News Release

February 28, 2006
For Print (PDF 394KB)

Announcement of the 5th Mid-term Strategic Plan

Listed Stock Name:   Eisai Co., Ltd.
Director and President & CEO: Mr. Haruo Naito
Headquarters: 4-6-10 Koishikawa, Bunkyo-ku, Tokyo
Securities Code: 4523
Listed Locations: First Sections of the Tokyo Stock Exchange
& the Osaka Securities Exchange
Inquiries: Mr. Hiroyuki Mitsui
Vice President
Corporate Communications
Phone +81-3-3817-5085

Announcement of the 5th Mid-term Strategic Plan

Eisai Co., Ltd. (Headquarters: Tokyo, President & CEO: Haruo Naito) resolved its 5th Mid-term Strategic Plan (for 6 years from April 2006 to March 2012) at the Board of Directors (Chairman: Tadashi Kurachi) meeting held on February 28, 2006. Through implementation and achievement of the 5th Mid-term Strategic Plan, Eisai will strive to grow internationally, further improving our corporate value. The main outline of the 5th Mid-term Strategic Plan is as follows.

< Main Outline of the 5th Mid-term Strategic Plan >

Eisai has added elements to create value for shareholders to our articles of incorporation in addition to the policy that "The Company's corporate concept is to give first thought to patients and their families, and to increase the benefits that health care provides. Under this concept, the Company endeavors to become a human health care (hhc) company." Eisai is the only pharmaceutical company that shares the corporate philosophy with the shareholders and our only objective is to put it into practice. Furthermore, Eisai believes that it is the employees with a spirit of realizing the philosophy that are the basis of a pharmaceutical company.
As it is expected that we will achieve our goal of the ongoing 4th Mid-term Plan (Millennium Plan) one year before the original final year of 2006, we have decided to initiate the 5th Mid-term Strategic Plan (Dramatic Leap Plan) for 2006 to 2011. Main strategies are as follows.

Concept of The World Headquarters
It is necessary to establish a flexible system (global flexibility) which can globally handle any situation and a corporate entity (or a business model) to further improve the efficiency and productivity in creating value with "Think Diligently" as the axis of a system to deal with each issue thoroughly and minutely.
Eisai promotes the idea of World Headquarters (WHQ) based on the concept of "Create value by the best person at the best place in the best structure". In this business model, the functional headquarters as important functions of the pharmaceutical business and the regional headquarters in Japan, the U.S., Europe and Asia are located in the most adequate country and region, and the model in which these two headquarters function organically will be considered as WHQ.

Numerical Targets
Eisai aims to achieve sales of yen1 trillion in the consolidated basis in 2011, with R&D expenses of yen200 billion, operating income of yen200 billion, yen120 billion of net profit, approximately 16% of ROE, approximately 8% DOE and yen420 EPS. In terms of the sales in each region, we aim them to be the ratio with good balance in the world market of roughly 36:44:20 for Japan, the U.S., and Europe/Asia, respectively.

Research and Development Strategy
Eisai will focus on disease areas, Neuroscience and Oncology, and aims to realize speedy and efficient achievement of business plan for new products through the newly-established R&D Management Company (R&DMC). For discovery research, we aim to enhance the ability for Candidate Selection by reinforcement of research capabilities in the U.S and Europe. For clinical research, we aim to enhance activities by the unification of clinical research in Japan, US, Europe and Asia.

Oncology Business Strategy
We establish the Eisai Oncology Unit in the U.S. not only to make efforts to advance our growing development of oncology drugs according to plans for regulatory application but to unify functions of discovery research, clinical development and marketing. In addition, Eisai will cover treatments including pain, anemia and vomiting as a part of supportive therapies which are rapidly gaining significance in the Oncology Business.

Independent Marketing Strategy
Eisai aims to initiate independent marketing activities globally for the new products. In order to do so, we will increase the number of MRs in each area and form a special MR team for oncology. We will also establish a Global Marketing Headquarters in the U.S.

Transformation Strategy
It is a significant strategy to transfer operations to areas which have excellent technological levels and excel in cost performance to gain the global flexibility (transformation). Eisai will strive to create innovative wisdom by assuming clinical research, data management/statistical analysis, medicinal chemistry, process chemistry, formulation research and production and by making maximum use of advantages offered in India.

Human Resources Strategy
Eisai addresses to establish a Human Resource System that can realize bringing up global human resource and their interaction for WHQ and R&DMC. We also aim to establish a system for dual reporting and virtual organizational administration.

Measures and Policies to Return to Shareholders
Eisai considers it fundamental to aggressively invest in resources by identifying opportunities for growth and to improve the corporate value, regarding dividends as the core of returning profits in this Mid-term Plan as well. We will continue to adopt DOE (dividend on equity) as a basic indicator and aim for the level of 8% for DOE in 2011. Furthermore, Eisai will continue IR activities with an emphasis on dialogues with the shareholders.

[Outline of the 5th Mid-term Strategic Plan is accompanied as an attachment]

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