°®¶¹´«Ã½

Since the Misato Plant launched operations in 1981, it has functioned as a mainstay pharmaceutical production plant for Eisai, producing solid dose formulations and parenteral formulations for both the Japanese domestic market and global market. Along with the Kawashima Plant, another pharmaceutical production facility owned and operated by Eisai in Japan, the Misato Plant supported the globalization of Eisai's rapidly expanding operations from the late 1990s and in recent years, too, as a facility possessing high-level technologies, significantly contributed to the transfer of production skills and know-how to overseas facilities such as Eisai's Vizag Plant in India.

On the other hand, the global pharmaceutical manufacturing industry is undergoing a major transition and Eisai faces changes to its product portfolio owing to new product launches and the loss of exclusivity for major products. In light of these developments, Eisai is consistently re-evaluating strategies to optimize its global supply chain in order to expand business operations in emerging and developing countries through affordable pricing schemes and other measures. As one part of this ongoing review, in October 2012, Eisai began the transformation from its existing production management system, which is based on manufacturing sites managed by region, to a new globally integrated, unit-based structure organized by product family, and has since been moving ahead with the implementation of further transformation strategies under the new management system.

Eisai believes that by transferring its Misato Plant business operations to Bushu, which has built a solid reputation as a pioneer in the growing business area of contract pharmaceutical manufacturing, the two companies will be able to draw on each other's production technologies, leading to the continued growth and development of the Misato Plant and further strengthening the existing partnership between the two companies.

Following this transfer, Eisai will offer its employees at the Misato Plant the option to voluntarily transfer their employment contract to Bushu. In addition, Eisai products currently manufactured at the Misato Plant excluding certain products will continue to be manufactured at the same site under the agreement.

By adapting flexibly to the rapid environmental changes in this era of great globalization in health care, Eisai aims to provide high-quality products at affordable prices to create customer joy and contribute to improving the benefits provided to patients and their families worldwide.

At present, this transaction is expected to not have a major impact on the Eisai Group's consolidated financial performance in fiscal 2013. Any changes occurring in the future that may influence this outlook will be made public immediately.