www.daiichisankyo.com

Corporate Brochure

■H04-01■H04-01

Corporate PhilosophyG l o b a l advances i n med ica l t echnolog y a n d

pharmaceuticals have saved the l ives of a great

many people and contributed to healthier lifestyles.

However, there are st i l l many diseases for which

the level of satisfaction with treatment is insufficient

or for which there is no established t reatment .

Preventative measures, treatments and therapies

that can be ta i lored to each pat ient ’s part icular

condition are also in great demand. Pharmaceutical

companies play an integral part in medical treatment and

are depended upon to provide solutions to these problems.

Daiichi Sankyo’s commitment to providing what people

really need is summed up in our corporate mission: “ To

contribute to the enrichment of quality of life around the

world through the creation of innovative pharmaceuticals,

and through the provision of pharmaceuticals addressing

diverse medical needs.” In order to fulfill this mission,

the Daiichi Sankyo Group has devoted itself with a

strong sense of duty to doing all that it can to meet

society’s expectations.

At Daiichi Sankyo, our vision is to become a Global Pharma

Innovator that can meet diverse medical needs around the

world—a company that is capable of sustainable growth. In

keeping with this vision, we have proactively implemented a

range of initiatives, focusing on expanding the Group’s global

business reach, fulf illing unmet medical needs and building

innovative products and business models.

Vision

Joji NakayamaRepresentative Director,

President and CEO

Daiichi Sankyo’s mission is to contr ibute to t he

enrichment of the qual ity of l i fe around the world

through the creation of innovative pharmaceuticals

and through the provision of pharmaceuticals that

address diverse medical needs.

The business environment facing the pharmaceutical

industry continues to evolve in Japan and around

the world. In the midst of these changing conditions,

we are working to realize our vision of becoming a

Global Pharma Innovator. To that end, we are striving

to satisfy unmet medical needs as a developer of new

drugs, including vaccines, generic and OTC drugs, that

meet a variety of medical needs.

As a leader in the healthcare industry, we recognize

that we have multiple responsibili t ies to our many

stakeholders. We not only have a responsibilit y to

provide the pharmaceuticals that are indispensable

today to healthcare systems around the world, but we

must also fund the research and development that

ensures the avai labi l i ty of tomorrow’s innovative

medicines. We also have a responsibility to support the

communities in which we live and work. We commit to

achieving these important goals while delivering earnings

growth to our shareholders and doing our utmost to earn

the trust of all our stakeholders. By embracing these

responsibilities, we hope to be a company worthy of

representing Japan as a cutting-edge global enterprise.

Thank you for your continued support.

Message from the CEO

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■Ｐ01-02

In addition to its home market of Japan, Daiichi Sankyo’s

products are marketed in the United States and in many

countries in Europe and Asia. This global reach, and the

important insights it provides, is essential to our ability to

serve the diverse needs of patients and healthcare

professionals around the world. Through the creation and

supply of new drugs, Daiichi Sankyo’s contribution to

the health of people worldwide knows no borders, and to

foster this global perspective, we promote cross-company

information exchanges among such departments as

Research & Development, Supply Chain, and Marketing.

Daiichi Sankyo has developed our unique business model

to address market and customer diversity and optimize

growth opportunities across the value chain — from drug

discovery to marketed products and suppor t services

available to patients around the world. This business model

combines our strength in developing and marketing

innovative ( patent-protected ) products with the generic

drug capabili ties of Ranbaxy Laboratories Ltd., a

Daiichi Sankyo Group company. As one of the world’s top

generic manufacturers, Ranbaxy not only has a strong

presence in India, but also in developing countries around

the world. This enables us to extend our global reach to

fulfill the medical needs of both industrialized countries and

emerging markets, while maximizing opportunities with a

broad product portfolio.

Global Business Activities

Our Business

Innovative pharmaceuticals continues to be the Group’s core

business area. We supply high-quality pharmaceuticals

that meet unmet medical needs, as well as the timely,

accurate, and easy-to-understand information that patients

and their physicians deserve.

Business Activities in JapanInnovative pharmaceuticals

Besides the research and early development and marketing

of vaccines carried out on its own, Daiichi Sankyo also

maintains strategic ties with two joint ventures: Kitasato

Daiichi Sankyo Vaccine Co., Ltd. (a joint venture with Kitasato

Institute), whose strength lies in production and chemistry,

manufacturing and controls (CMC), and Japan Vaccine Co.,

Ltd. (a joint venture with GlaxoSmithKline), which specializes

in the latter phase of vaccine development and sales.

These alliances enable us to create a seamless value chain,

from discovery to the delivery of products, ensuring a

stable supply of the vaccines the public needs.

Vaccines

The concept of “self-medication” has become increasingly

common and customer needs have consequently become

increasingly diverse. It is with this background in mind that

the Daiichi Sankyo Group has established its consumer

healthcare business, which includes OTC pharmaceuticals,

functional skincare products, and food products, as one of

its core businesses. Daiichi Sankyo Healthcare Co., Ltd., a

Daiichi Sankyo Group company, is working to fur ther

develop the Group’s self-medication business.

OTC pharmaceuticals

Building on the trust and confidence that Daiichi Sankyo has

cultivated as a developer and manufacturer of innovative

drugs, Daiichi Sankyo Espha Co., Ltd. works to create the

added value that will allow it to supply quality generic

pharmaceuticals as well. Particularly in the area of product

safety, the Company manufactures products in dosage

forms and with labels designed for ease and accuracy of

use. These effor ts include, for example, inscribing the

name of the drug on both sides of tablets. Moreover,

Daiichi Sankyo has launched a series of premium generic

products that build upon the brand’s expertise and add

new value. We hope these products will help Daiichi Sankyo

reinforce its brand differentiation and capture a larger share

of the market.

Generic pharmaceuticals

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■Ｐ03-04

GEMRADDaiichi Sankyo established the Global Executive Meeting

of Research and Development (GEMRAD) as our top

decision-making body for global R&D. GEMRAD makes

management-level “go/no-go” decisions on development

projects and manages global R&D activities across functions

and regions. Its members represent various divisions,

including those responsible for R&D, global sales, licensing,

pharmaceutical affairs, and product portfolios.This enables

GEMRAD to make appropriate decisions based on

comprehensive assessments covering everything from

research to marketing.

Research and DevelopmentA global R&D network that connects operations in Japan and throughout the worldOur worldwide research and development (R&D) network

connects Japan, the United States, Europe, India and East

Asian countries. This multinational approach allows us to

leverage expertise from around the world to execute clinical

trials and strengthen our global decision-making. Our R&D

operations, as well as those of Daiichi Sankyo RD Novare

and Asubio Pharma, are primarily based at four sites near

Tokyo, and they collaborate with Daiichi Sankyo, Inc. in the

United States and Daiichi Sankyo GmbH in Europe on

everything from drug discovery to development and

manufacturing. In the United States, Daiichi Sankyo Pharma

Development oversees global clinical trials from its

headquarters in Edison, New Jersey, while Daiichi Sankyo

Development in the UK oversees clinical trials from its

headquarters in Gerrards Cross, Buckinghamshire. In India,

we have acquired Ranbaxy's new drug development

facili ties, which we renamed the Daiichi Sankyo Life

Science Research Centre in India ( RCI ), to fur ther

strengthen our research network. As a par t of our

Global Development hub in Asia, Daiichi Sankyo Korea,

Daiichi Sankyo Taiwan, and Daiichi Sankyo ( China )

Holdings are contributing to the ongoing launch of new

products. In Europe, U3 Pharma and the Tissue & Cell

Research Center Munich ( TCRM ) are located in the

suburbs of Munich and carry out antibody pharmaceutical

research and ADME/ Tox studies. In the U.S., Plexxikon Inc.

in Berkeley, California is the newest R&D affiliate and

was acquired in March 2011.

Research

❶❷❸

❹❺

❻❼

❶Daiichi Sankyo Co., Ltd.

-Shinagawa R&D Center, Tokyo　

　-Kasai R&D Center, Tokyo

　-Tatebayashi Biopharmaceuticals Center, Gunma

　-Hiratsuka (CMC), Kanagawa

❶Daiichi Sankyo RD Novare Co., Ltd.

❶Asubio Pharma Co., Ltd.

❷Daiichi Sankyo ( China) Holdings Co., Ltd.

❸Daiichi Sankyo India Pharma Private Limited

- Daiichi Sankyo Life Science Research Centre in India

- Daiichi Sankyo India Development

❹Daiichi Sankyo Europe GmbH

❹U3 Pharma GmbH

❺Daiichi Sankyo Development Ltd.

❻Daiichi Sankyo, Inc.

❻Daiichi Sankyo Pharma Development

❼Plexxikon Inc.

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Fast and sustained new drug development through systematic researchThrough research and development, we’re working to

create a competitive pipeline and deliver innovative

products quickly and consistently. This supports our vision

of becoming a Global Pharma Innovator. While maintaining

our portfolio of marketed pharmaceuticals for hypertension,

hyperlipidemia, and bacterial infections, we’re developing

treatments for thrombotic disorders — which occur when

clots form in blood vessels. To reinforce the competitiveness

of research in disease areas with high unmet medical

needs, we are also focused on discovering and developing

novel oncology and cardiovascular-metabolic therapies and

substances with novel mechanisms of action.

As patients and healthcare professionals eagerly await new

pharmaceutical solutions, we are expanding our R&D

pipeline through strategic alliances. In 2008, for example,

we acquired Germany-based U3 Pharma AG ( Now U3

Phama GmbH ) , a company with many promising antibody

drug candidates for treating cancer. In 2010, we restructured

our subsidiary Asubio Pharma Co., Ltd. as a drug discovery

venture business. That same year,

Ranbaxy Laboratories transferred its drug discovery

research unit to Daiichi Sankyo India Pharma. We

subsequently established the Daiichi Sankyo Life Science

Research Centre, India (RCI), strengthening our global R&D

structure. Additionally, in 2011, we acquired Plexxikon Inc., a

privately held pharmaceutical company based in Berkeley,

California, with a promising pipeline and technology platform.

Research Early-stage Development Late-stage Development Life Cycle Management and Markets

Discovery Priority Areas : ■Oncology ■Cardiovascular-metabolism

■Thrombotic Disorders

■Hypertension ■Bacterial Infections

■Hyperlipidemia

2007-2009（First MTP*）

Thrombotic disorders,

oncology, diabetes,

autoimmune diseases

and rheumatoid arthritis

Targets From 2010 (Post Second MTP)

*Mid-term Plan

Reinforce competitiveness towards 2015

Pursue new challenges beyond traditional illness areas in preparing for 2015 and beyond

Priority Areas: ■Oncology ■Cardiovascular-metabolism

New Areas: ■Newly address unmet needs

New Areas : ■Drug creation based on disease mechanisms, developing products with a new mechanism of action that address heavily unmet needs.

Expanding our R&D pipeline and improving our research platform

We recognize that we must earn the trust and confidence of

our customers every day, not only through the efficacy

and safety of our products, but through the quality of their

manufacture as well. Our attention to quality begins with the

import of raw materials and continues through production

and distribution. Along that supply chain, we adhere to the

most stringent corporate and regulatory standards,

including internationally recognized standards set by Good

Manufacturing Practice (GMP) and Good Quality Practice

(GQP).

Dedication to quality

Pharmaceutical companies have a mission to reliably and

consistently supply high-quality drugs. Daiichi Sankyo is

fulfilling this role by integrating its operations to consistently

procure raw materials and systematically manufacture

drugs, as well as by using its logistics function to rapidly and

reliably distribute products. This integration facilitates the

centralized management of information, enabling a flexible

and efficient manufacturing and supply system ( supply

chain management ).

Daiichi Sankyo has also established a stable supply system

for the global market by seamlessly linking its production

bases inside and outside of Japan. Consistently supplying

highly reliable products that reproduce the quality of the

drug as designed requires a production management

system relying on technical verification of both facility

and human operations. Through its quality and safety

management system, Daiichi Sankyo has established its

own high standards with world-class validation processes

and has developed a highly reliable global supply system.

Stable manufacturing and supply

Pharmaceuticals contribute to the health of people all over

the world, and Daiichi Sankyo has established internal

systems to ensure a high level of safety management. It

conducts ongoing training to make sure that each employee

is aware of and adheres to the Company’s safety policies.

Daiichi Sankyo exhaustively compiles safety management

information ( such as information on side effects ) from

around the world and provides accurate information on

appropriate usage to medical professionals.

Safety management system

Securing high quality and reliability; delivering a stable supply of world-class products

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The antihypertensive agent olmesartan medoxomil is an

angiotensin II receptor blocker (ARB), which has a strong

and continuous antihypertensive action in comparison to

other drugs in its class and is expected to achieve superior

results in preventing end-organ damage. As a best-in-class

ARB, it was launched in the United States and Europe in

2002 and in Japan in 2004 (U.S. brand name, Benicar®;

Japanese and European brand name, Olmetec®). In recent

years, a large amount of data using Japanese subjects has

also been compiled. The praise garnered by this drug’s

strong antihypertensive action and high degree of

safety has been reflected in its sales around the world.

Olmesartan

Japan Company is committed to maximizing the Group’s

business performance in Japan. It consolidates functions

focused on our Japanese businesses, which include

innovative and established pharmaceuticals, and vaccines.

Japan CompanyOur European subsidiary, Daiichi Sankyo Europe, has

branches in 12 European countries—Great Britain,

Germany, France, Austria, Belgium, Switzerland, Spain,

Italy, Holland, Portugal, Turkey and Ireland—through which

it conducts business operations in the region.

Daiichi Sankyo Europe GmbH

ASCA Company was established to successfully develop

strategies for regions outside Japan, the United States

and Europe, and to promote medium- and long- term

growth in these rapidly growing markets.

ASCA Company

Ranbaxy is India’s largest pharmaceutical company

and one of the world’s top ten generic manufacturers.

Daiichi Sankyo acquired a majority share in Ranbaxy

in 2008.

Ranbaxy Laboratories Ltd.

Daiichi Sankyo Healthcare develops, manufactures and sells

non-prescription medications in Japan. The company also

offers non-medical goods, cosmetics and food products.

Daiichi Sankyo Healthcare Co., Ltd.

Our U.S. subsidiary, Daiichi Sankyo, Inc., currently markets

therapies in hypertension, dyslipidemia, diabetes, acute

coronary syndrome, and metastatic melanoma.

Daiichi Sankyo, Inc.

Luitpold Pharmaceuticals develops and markets drugs

and medical devices for healthcare professionals,

clinics and hospitals across the United States and Canada.

Luitpold Pharmaceuticals, Inc.

Developed solely by Daiichi Sankyo, edoxaban is an oral

anticoagulant that directly inhibits factor Xa, which plays an

important role in the coagulation process ( through which

blood clots ). In 2011, we launched edoxaban as Lixiana®

in Japan to prevent venous thromboembolism (VTE ) in

patients undergoing total knee replacement surgery, total

hip replacement surgery, and hip fracture surgery. It was

the f irst available factor Xa inhibitor in that countr y.

Global Phase 3 studies are currently underway for

thromboembolism associated with atrial fibrillation ( irregular

heart rate) and VTE in patients with deep vein thrombosis

(DVT) or pulmonary embolism (PE). This research includes

HOKUSAI-VTE, the largest single Phase 3 study for the

treatment and prevention of recurrences of VTE in patients

who have had an acute symptomatic DVT, PE, or both.

Currently, preparations are being made to submit an

application for the approval of this drug.

Edoxaban

Daiichi Sankyo has been developing denosumab since 2007,

when it licensed the rights from Amgen to manufacture and

market this antibody in Japan. Denosumab was developed

to treat and prevent various bone disorders including

osteoporosis and bone metastases ( the spread of cancer to

the bones). It is the world’s first human monoclonal antibody

to target RANK ligand, a protein that plays a key role in

bone breakdown. In Japan, Daiichi Sankyo received

approval to manufacture and market denosumab as

RANMARK® for the treatment of bone complications

stemming from multiple myeloma and bone metastases

from solid tumors in January 2012, and approval for the

treatment o f osteoporosis in March 2013, and the

Company began marketing it under the brand name,

Pralia®. Daiichi Sankyo is currently participating in the

global Phase 3 study of adjuvant treatment for women with

early-stage breast cancer, and is conducting Phase 2

studies on Japanese patients with rheumatoid arthritis and

giant cell tumor of the bone.

DenosumabDaiichi Sankyo discovered prasugrel with our Japanese

research partner, Ube Industries and developed it in

collaboration with Eli Lilly and Company. Prasugrel is an oral

antiplatelet agent that prevents blood clots. In 2009, we

launched it as Effient® in the United States and as Efient®

in Europe to prevent atherothrombotic events (causing

inflammation of the arteries) in patients with acute coronary

syndrome undergoing percutaneous coronary intervention

( PCI ). To date, prasugrel has been approved in more than

70 countries around the world. In Japan, Daiichi Sankyo

and Ube Industries, Ltd. are jointly developing the drug. In

June, 2013, we submitted an application for its manufacture

and sale as a treatment for ischemic heart disease in

patients undergoing PCI. In addition, Phase 3 clinical

trials are being conducted on patients with ischemic

cerebrovascular disease.

Signature products created by original R&DTranslating years of knowledge and technology into outstanding products

Business UnitsTo grow in this rapidly changing business environment, Daiichi Sankyo reinforces strategy development and implementation through a global management structure.

Prasugrel

Our business units include five corporate entities in the regions where we operate, as well as two business organizations - Japan Company and ASCA Company.

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■Ｐ09-10

Increasing Synergy with Japanese Group CompaniesDaiichi Sankyo fuses the technological expertise of 10 group companies within Japan that cover fields such as innovative pharmaceuticals, OTC pharmaceuticals, vaccines, and generic pharmaceuticals, to create synergy throughout the entire value chain and deliver further value to its customers.

Daiichi Sankyo Espha Co., Ltd.Based on the Daiichi Sankyo Group’s corporate philosophy

of “supplying pharmaceuticals that meet diverse medical

needs , ” Daiichi Sankyo Espha operates business

focusing on generic pharmaceuticals, for which there is

increased demand.

The company strives to deliver products that customers can

feel safe in using, not only in terms of quality, information,

and stable supply—the areas that are most important

to pharmaceutical customers—but also in terms of

af fordability, which is expanded through the availability

of generic quality pharmaceuticals.

www.daiichisankyo-ep.co.jp

Daiichi Sankyo Healthcare Co., Ltd.In response to the growing interest in self-medication,

Daiichi Sankyo Healthcare works toward realizing “Total

Healthcare” through the manufacture and sales of

Rx-to-OTC switch drugs and other OTC pharmaceuticals,

as well as functional skincare and food products.

www.daiichisankyo-hc.co.jp

Daiichi Sankyo Propharma Co., Ltd.As the major global manufacturing base for pharmaceutical

products developed by Daiichi Sankyo, Daiichi Sankyo

Propharma strives to maintain a stable supply of high-

quality pharmaceuticals. The company also contributes to

the development of new products by manufacturing

investigational agents that are used in clinical trials.

www.daiichisankyo-pp.co.jp

Daiichi Sankyo ChemicalPharma Co., Ltd.Daiichi Sankyo Chemical Pharma is a pharmaceutical

manufacturer that supplies active pharmaceutical ingredients

and intermediates. Using its expertise in the factory

manufacturing process, the company efficiently achieves

fast development, stable supply, high quality and low cost,

and thus delivers its products faster, more cheaply and in a

more stable manner.

www.daiichisankyo-cp.co.jp

Daiichi Sankyo Logistics Co., Ltd.Daiichi Sankyo Logistics stores and ships pharmaceuticals

on a subcontract basis to fulfill a role in Daiichi Sankyo’s

supply chain by maintaining high distribution quality and

ensuring a stable supply of goods.

Asubio Pharma Co., Ltd.Asubio Pharma is a drug discovery venture that creates and

disseminates innovative drug discovery concepts and

platforms to aid in the discovery of new drugs to unmet

medical needs. Asubio’s drug discovery research specializes

in core drug discovery functions (basic research to early-

phase clinical development ).

www.asubio.co.jp

Daiichi Sankyo RD Novare Co., Ltd. Daiichi Sankyo RD Novare is comprised of three units: a

drug discovery unit with an integrated initial drug discovery

function, an analysis center that provides a comprehensive

range of analytical services, and a clinical research

department that per forms high-quality clinical trial

monitoring and related tasks. The company thus plays a

critical role in the creation of innovative pharmaceuticals by

providing pharmaceutical R&D platforms.

www.daiichisankyo-rdn.co.jp

Daiichi Sankyo Business Associe Co., Ltd. Daiichi Sankyo Business Associe provides core general

business support services (HR, accounting, clerical tasks,

purchasing ) for all Daiichi Sankyo Group companies on

a subcontract basis. The company also serves as an

insurance and real estate agency. By offering superior

expertise to improve both operational quality and efficiency,

the company ensures a high degree of custome rsatisfaction.

Daiichi Sankyo Happiness Co., Ltd. Daiichi Sankyo Happiness is a special company established

in accordance with the Employment Promotion Act for

Persons with Disabilities in order to promote the hiring of

disabled persons by the Daiichi Sankyo Group. The

company provides a variety of services to the group, such

as the creation of medical representative sales promotion

tools, factory and laboratory uniform cleaning, laboratory

equipment cleaning, and mail services within the Group.

Kitasato Daiichi Sankyo Vaccine Co., Ltd.Launched as a joint venture between Daiichi Sankyo and

the Kitasato Institute, Kitasato Daiichi Sankyo Vaccine is a

core company that handles R&D and manufacturing for the

vaccine business. Working closely with the Kitasato Institute

and other research organizations and universities in Japan

and worldwide, the company per forms research and

development of new vaccines and manufactures and

markets high-quality, easy-to-administer vaccines.

www.daiichisankyo-kv.co.jp

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Daiichi Sankyo knows it must earn the trust of those who

use our products and services, as well as the governments,

NGOs and organizations with which we partner on our

social responsibility activities. To do so, we adhere to the

highest standards of corporate behavior, so that all of our

business operations comply with global norms and

standards. We also distribute comprehensive information

about our corporate activities, communicating honestly

with stakeholders in order to earn and maintain their trust.

A Company Worthy of Stakeholder Trust

Access to healthcare and medicine are important social

issues around the world. The Daiichi Sankyo Group strives

to offer a variety of solutions globally to advance society’s

access to quality healthcare.

It is estimated that more than one billion poor people

throughout the world suffer from AIDS, malaria, tuberculosis

and neglected tropical diseases. Additionally, there are

many others suffering from “orphan” diseases, where the

relatively small number of patients and high costs of R&D

result in limited medical progress despite the high need for

treatment for these intractable diseases.

We are engaging the talent and resources of the Daiichi

Sankyo Group in order to respond to unmet medical needs

throughout the world. This not only includes a focus on

treatments for wide-spread illness, but those considered to

be “orphan” diseases, as well.

In developing countries, access to medical services is

limited by economic and social conditions and poor

physical infrastructure, among other reasons. As a member

of the health and medical industry, the Daiichi Sankyo

Group contributes to solving these social issues in

cooperation with NGOs, national governments, and

local communities.

With the increasing globalization of business, the

international influence of corporate activities on the

environment and society is growing. Daiichi Sankyo strives

to contribute to the development of a sustainable society.

We conduct our corporate activities in accord with the laws

and regulations in each region while respecting international

norms and protecting the environments in which we operate.

Social Responsibility at the Daiichi Sankyo Group

The Daiichi Sankyo Group integrates corporate social responsibility into its business activities as part of its mission to contribute to the enrichment of quality of life around the world.

Corporate Social Responsibility

In 2011, as part of efforts to improve medical access in

emerging nations, the Daiichi Sankyo Group began

providing mobile medical services in rural areas of India,

Cameroon and Tanzania through cooperation with NGOs,

local governments and regional companies. Over the

five-year period ending in 2015, we expect to have provided

mobile medical services to approximately 300,000 people

who, otherwise, would have had more limited or no access

at all to modern healthcare services. In these activities, we

are leveraging the expertise and resources of Ranbaxy’s

mobile healthcare field clinics in India, and we are focusing

on projects that bring together the specialized knowledge

and resources of NGOs, local governments, and local

communities. This makes our activities a social

contribution unique to Daiichi Sankyo, and much more

than a mere donation.

Since its inception, our mobile medical service has provided

care to approximately 90,000 people in India, Cameroon,

and Tanzania. Because prevention of disease is always

more desirable than treatment, we have been carrying out

a variety of activities for promoting the importance of

parental care and the role good hygiene plays in health.

Among the successful programs being offered are health

checkups for expectant and nursing mothers and

vaccinations for infants.

We aim to enrich these activities in the future by expanding

cooperation across borders and organizations in order to

reduce infant death rates, improve the health of expectant

and nursing mothers, and prevent the spread of HIV/AIDS,

malaria, and other diseases.

Mobile Healthcare Field Clinics

Social Contribution Activities to Improve Medical Access

Contributions to Reducing Child Mortality and Improving Maternal Health

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Established in 2005 through the merger of Sankyo and Daiichi Pharmaceutical, Daiichi Sankyo has a rich history spanning more than 100 years. Below, we introduce our milestones, including those of Sankyo and Daiichi Pharmaceutical since the beginning.

2005Established by joint holding company of Sankyo Co., Ltd. and Daiichi Pharmaceutical Co., Ltd.

2006Began operations of Daiichi Sankyo Healthcare Co.,Ltd.; Daiichi Sankyo, Inc.; and Daiichi Sankyo Europe GmbH

2007Began operations on April 1, 2007as the newDaiichi Sankyo Group

2008Acquired U3 Pharma AG of Germany and became a majority stakeholder in Ranbaxy Laboratories Limited of India.

2009Launched Prasugrel, an antiplatelet agent and global product,in Germany (as Efient ®) and the United States (as Effient®)

History of Daiichi Sankyo Co., Ltd.

History of Sankyo Co., Ltd.1899Founded as Sankyo Shoten through a joint investment by businessmen Matasaku Shiobara, Shotaro Nishimura

and Genjiro Fukui 1910Dr. Umetaro Suzuki, a future Sankyo scientific adviser, made the world's first discovery of vitamin B11 ( Oryzanin®) in rice bran and established a foundation for the theory of vitamins

1913Changed company name from Sankyo Shoten to Sankyo Co., Ltd. Appointed Dr. Jokichi Takamine as first president

1949Listed on Tokyo Stock Exchange

1951Launched LULU® cold medicine

1977Launched Krestin®, an anticancer drug

1986Launched the anti-inflammatory, analgesic drug, Loxonin® in Japan

1989Globally launched Mevalotin®, a groundbreaking HMG-CoA reductase inhibitor ( hyperlipidemic drug )

1992Awarded the Ohkochi Memorial Grand Production Prize for Mevalotin®

1994Completed construction of head office building in Nihonbashi, Tokyo, Japan

1998Became the first pharmaceutical company in Japan to receive ISO 14001 environmental certification for its Onahama and Odawara plants

Daiichi Sankyo’s History

2010Launched Rezaltas®, a high-affinity ARB/ long-acting calcium antagonist compound, and Inavir ®, an anti-influenza virus agent

Began operations of Daiichi Sankyo Espha Co., Ltd.

2011Acquired Plexxikon Inc. of the United States

Began operations of Kitasato Daiichi Sankyo Vaccine Co., Ltd.

Launched Memary® for treatment of Alzheimer's disease, Lixiana®, an oral FXa inhibitor, and Nexium®, a proton pump inhibitor

Consolidated Daiichi Sankyo head office and the head offices of Japan Group companies in the Nihonbashi area of Tokyo, Japan

2012Opened Daiichi Sankyo Kusuri Museum in Tokyo

Launched RANMARK®, an antibody that targets RANK ligand, and TENELIA ®, a therapeutic agent for type 2 diabetes

Began operations of Japan Vaccine Co., Ltd., a joint venture with GlaxoSmithKline K.K.

2013Launched Pralia®, a treatment for osteoporosis

History of Daiichi Pharmaceutical Co., Ltd.1915Founded as Arsemin Shokai by Dr. Katsuzaemon Keimatsu and five others

1949Listed on Tokyo Stock Exchange

1965Completed construction of former head office building inNihonbashi, Tokyo, Japan

Launched the anti-fibrinolytic Transamin®

1966Launched Patex®, the first flexible medicated bandage

1993Launched Cravit®, a broad-spectrum oral antibacterial agent

1973Launched Karoyan®, a hair restoration agent

1985Launched Tarivid® a broad-spectrum oral antibacterial agent, in Japan and the former West Germany

1918Changed company name from Arsemin Shokai to Daiichi Pharmaceutical Co., Ltd.

Appointed Seinosuke Shibata as first president

1937Launched Therapol®, the first sulfa drug produced in Japan

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Corporate InformationCompany Name: Daiichi Sankyo Company, LimitedBusiness: Research and development, manufacturing, import, sales and marketing of pharmaceutical productsHeadquarters: 3-5-1, Nihonbashi-honcho, Chuo-ku, Tokyo, 103-8426, JapanTelephone: +81-3-6225-1111Established: September 28, 2005Paid-in Capital: ¥50,000 millionEmployees: Approximately 32,000

Corporate Profile

Group Companies in JapanDaiichi Sankyo Espha Co., Ltd.Daiichi Sankyo Healthcare Co., Ltd.Daiichi Sankyo Propharma Co., Ltd.Daiichi Sankyo Chemical Pharma Co., Ltd.Daiichi Sankyo Logistics Co., Ltd.Asubio Pharma Co., Ltd. Daiichi Sankyo RD Novare Co., Ltd.Daiichi Sankyo Business Associe Co., Ltd.Daiichi Sankyo Happiness Co., Ltd. Kitasato Daiichi Sankyo Vaccine Co., Ltd.

Worldwide Group CompaniesDaiichi Sankyo, Inc. (United States)Luitpold Pharmaceuticals, Inc. ( United States )Plexxikon Inc. (United States)Daiichi Sankyo Europe GmbH (Germany)Daiichi Sankyo France SASDaiichi Sankyo Deutschland GmbHDaiichi Sankyo Italia S.p.A.Daiichi Sankyo España, S.A.Daiichi Sankyo UK Ltd. (England)Daiichi Sankyo ( Schweiz ) AGDaiichi Sankyo Portugal, Lda.Daiichi Sankyo Austria GmbHDaiichi Sankyo Belgium N.V.-S.A.Daiichi Sankyo Nederland B.V.Daiichi Sankyo Ilaç Ticaret Ltd. ŞŞti.Daiichi Sankyo Ireland Limited.Daiichi Sankyo Altkirch Sarl (France)U3 Pharma GmbH (Germany )Daiichi Sankyo Development Ltd. ( England )Daiichi Sankyo (China ) Holdings Co., Ltd.Daiichi Sankyo Pharmaceutical (Beijing ) Co., Ltd. ( China)Daiichi Sankyo Pharmaceutical (Shanghai ) Co., Ltd. (China)Daiichi Sankyo Taiwan Ltd.Daiichi Sankyo Korea Co., Ltd.Daiichi Sankyo (Thailand) Ltd.Daiichi Sankyo Hong Kong LimitedDaiichi Sankyo Mexico, S.A. de C.V.Daiichi Sankyo Brasil Farmacêutica LTDA.Daiichi Sankyo Venezuela S.A.Daiichi Sankyo India Pharma Private Ltd. Ranbaxy Laboratories Ltd. Group (India)

Directors,Officers and AuditorsRepresentative Director, ChairmanTakashi Shoda

Representative Director, President and CEOJoji Nakayama

Members of the Board, Members of the Audit and Supervisory Board, and Corporate OfficersTakeshi Ogita Kazunori HirokawaYuki SatoManabu Sakai

Members of the Board (Outside ) Hiroshi Hirabayashi Kunio Ishihara Ichiro KanazawaSeiji Sugiyama

Members of the Audit and Supervisory BoardKazuo KoikeTakashi Chiba

Members of the Audit and Supervisory Board (Outside )Akio YamadaShigeaki Ishikawa

Senior Executive OfficersGlenn GormleyRyouichi Kibushi

Executive OfficersShuji HandaTomoo Yokoi

Corporate OfficersSunao ManabeNoriaki IshidaKatsuaki MiyoshiSatoshi KunitadaShinichi TeranoToshiaki SaiKatsumi FujimotoRyoji Nagasaka Toshiaki TojoJunichi KogaKoichi AkahaneKenji InoueKazuo SatoNorimasa Kamura

( as of October 2013 )

Japanese OfficesBranch OfficesSapporoTohokuTokyoChibaSaitamaYokohamaKita-KantoKoushinetsuToukaiKyotoHokurikuOsakaKobeChugokuShikokuKyushu

Research LaboratoriesShinagawa R&D CenterKasai R&D Center

Factories ( Daiichi Sankyo Propharma Co., Ltd.)Akita PlantOnahama PlantTatebayashi PlantHiratsuka PlantTakatsuki Plant

Factories (Daiichi Sankyo Chemical Pharma Co., Ltd.)Hiratsuka PlantOdawara Plant

Distribution Center (Daiichi Sankyo Logistics Co., Ltd. )Tokyo Distribution Center

Facts & Figures

1,000

( billions of yen )

750

500

250

0FY2008 FY2009 FY2010 FY2011 FY2012

1Q 2Q 3Q 4Q

Net sales

YTD FY2008 FY2009 FY2010 FY2011 FY2012

1Q 203.7 227.1 256.4 231.7 242.6

2Q 406.3 470.6 498.9 456 484.2

3Q 627.6 725.7 748.1 696.4 745.6

4Q 842.1 952.1 967.4 938.7

Net sales by segment ( for the first six months of FY 2012)

Japan

North America

Daiichi Sankyo Group

Europe

Other regions

Ranbaxy Group

Ranbaxy Group185.4 billion yen( 19%)

Daiichi Sankyo Group812.4 billion yen( 81%)

FY2011 FY2012

600( billions of yen )

400

200

0FY2011

Daiichi Sankyo Group: JapanDaiichi Sankyo Group: Europe

Daiichi Sankyo Group: North AmericaDaiichi Sankyo Group: other regions

Ranbaxy Group

Net sales share by segment

FY2012

1,500

1,250

1,000

750

500

250

( billions of yen )

0

60

50

40

30

20

10

( %)

0

Domestic sales Overseas sales Percent of net sales

Overseas sales, percent of net sales

Overseas sales 358.6 373.3 482.3 489.7

Domestic sales 521.5 468.8 469.8 477.7

Percent of

net sales 41% 44% 51% 51%

FY2008 FY2009 FY2010 FY2011 FY2012

R&D expenses

Percent of net sales

250

( billions of yen )

200

150

100

50

0

R&D expenses

R&D expenses, percent of net sales

Percent of net sales

25

20

15

10

5

( %)

0

Financial Highlights ( as of May 2013 )

1Q 2Q 3Q 4Q

1Q

2Q

3Q

4Q

Japan

North America

Daiichi Sankyo Group

Europe

Other regions

Ranbaxy Group

997.9

FY2008 FY2009 FY2010 FY2011 FY2012

486.7

511.2

49%

FY2008 FY2009 FY2010 FY2011 FY2012

100.5

125

( billions of yen )

100

75

50

25

0FY2008 FY2009 FY2010 FY2011 FY2012

Operating income

YTD FY2008 FY2009 FY2010 FY2011 FY2012

40.0 26.8 61.1 43.5 32.5

61.6 50.9 90.1 62.2 57.1

98.1 90.1 120.6 91.9 93.5

88.9 95.5 122.1 98.2

528.6

182.3

997.9

812.4

60.6

40.9

185.4

NorthAmerica

Europe Japan

Otherregions

490.0

177.0

763.2

67.4

28.8

175.5

528.6

182.3

812.4

60.6

40.9

185.4

184.5 196.8 194.3 185.1

22% 21% 20% 20%

183.0

18%

FY2008 FY2009 FY2010 FY2011 FY2012

1Q 2Q 3Q 4Q

125

( billions of yen )

100

75

50

25

0FY2008 FY2009 FY2010 FY2011 FY2012

Ordinary income

YTD FY2008 FY2009 FY2010 FY2011 FY20121Q

2Q

3Q

4Q

40.9 7.2 70.1 44.8 40.8

59.6 52.3 92.6 66.3 49.9

93.2 90.6 130.6 86.4 95.7

55.2 103.1 131.8 76.2 99.1

1Q 2Q 3Q 4Q

100

( billions of yen )

0

-100

-200

-300

Net income

YTD1Q

2Q

3Q

4Q

FY2008 FY2009 FY2010 FY2011 FY2012

FY2008 FY2009 FY2010 FY2011 FY2012

25.1 6.4 33.1 25.3 20.4

34.0 18.7 52.2 37.0 24.4

297.8 39.2 79.7 17.5 51.5

215.5 41.9 70.1 10.4 66.6

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