March 2007 Mid-Term Financial Results●

Current business performance●

Approach to KYORIN Group●

Update on Main R&D activities

November 9,2006

KYORIN Co., Ltd.

Outline of Consolidated Financial Results for the Interim TermEnding in Sep. 2006
Consolidated
SeptemConsolidatedFinancial
FinancialResults
InterimTerm
TermEnded
EndedSeptember
Septemberber2006
2006
Resultsfor
forthetheInterim
September
Consolidated
sales
reached35.1
billionsyen(4.7%
increaseontheprevious
Consolidated sales reached 35.1 billions yen (4.7% increase on the previousyear)
year)asasaaresult
resultof
offavorable
favorablesales
salesofofnew
newethicalethicaldrugs
drugsononthedomestic
market.
Operatingincomewasrecordedas
1.9
billionsyen(19.3%
downontheprevious
year)
and
net
profitsas
0.8
billions
the domestic market. Operating income was recorded as 1.9 billions yen (19.3% down on the previous year) and net profits as 0.8 billions
yen
yen(42.9%(42.9%down
downononthe
theprevious
previousyear).
year).This
Thisdecline
declinein
inprofits
profitswas
wasduedueto
toaa5.5point
5.5pointdecrease
decreasein
inthe
theexpenses
expensesratio
ratioassociatedassociatedwith
withaadrop
dropininR&D
R&Dcosts
costsalthoughalthoughthe
thesales/costsales/costratio
ratiosaw
sawaa7.2
7.2point
pointincrease
increase..
Forecast
Consolidated
Financial
Results
for
the
Term
EndingMarch
Marc
Forecast Consolidated Financial Results for the Term Ending March
Marchh2007
2007
Although
the
new
drugs
sold
on
the
domestic
marketareaffectedby
Although the new drugs sold on the domestic market are affected by thethe revision
revision ofof thethe Price
Price Standard
Standard forfor ethicalethical drugs
drugs prescribedprescribed
under
the
HealthInsurance
System,sales
areforecast
tobeinexcessoftheprevious
year.
Overseassales
areestimated
under the Health Insurance System, sales are forecast to be in excess of the previous year. Overseas sales are estimated to
to fall
fall
substantially
short
of
the
previousyear.
Newcompanies
such
as
Toyo
PharmarandDr.
Programareexpectedtoachievebetterresults
substantially short of the previous year. New companies such as Toyo Pharmar and Dr. Program are expected to achieve better resultsthanthanlast
lastyear
yeardue
dueto
tothe
thefullfullcontribution
contributionof
ofaawhole
whole1212months.
months.As
Asaaresult,result,consolidated
consolidatedsales
salesareareanticipatedanticipatedto
toreachreach76.7billions
76.7billionsyen
yen
(3.6%
up
on
the
previousyear).
The
profits
forecastsarethat
consolidated
operatingincome
will
reach
6.3
billionsyen(29.9%(3.6% up on the previous year). The profits forecasts are that consolidated operating income will reach 6.3 billions yen (29.9%down
downononthepreviousyear)
andconsolidated
current
net
income
3.6
billionsyen(31.1%
downonthepreviousyear).
Dividends
arescheduledtothe previous year) and consolidated current net income 3.6 billions yen (31.1% down on the previous year). Dividends are scheduled to
be
be20
20yen
yenforforthethefullfullyearyear(10(10yenyenforforthethehalf-term)
half-term)perpershare.
share.
Units: millions of yen

Units:
Millions of yen

Sep/04 Interim

Sep/05

Sep/06term

Interim term

Interim term

YoY change(%)

Year ended
March 31, 07(forecast)

YoY change(%)

Year ended
March 31,07(originally expected)

Net sales

３１,
３１,０５６

３３,
３３,５１１３５,
３５,０９３

4.7％
4.7％

７６,
７６,７００

3.6％
3.6％

７５,
７５,６００Operatingincome

１,５９５

２,４０６

１,９４０

▲19.3
19.3％
％

６,３００

▲29.9％
29.9％

５,７００

Ordinary
income

１,９７４

２,７５３

２,０６１

▲25.1％
25.1％

６,７００

▲29.2％
29.2％

６,４００

Net income

１,３０７

１,４５９

８３３

▲42.9％
42.9％

３,６００

▲31.1
31.1％
％

３,５００

EPS （yen）
yen）

17.59

19.65

11.21

▲43.0％
43.0％

48.41

―

47.07

Total assets

１１８,
１１８,５５８

１１６,
１１６,５６６

１１７,
１１７,９１５

1.2％
1.2
％

－

―

－

Total equity

９１,
９１,４６０

９１,
９１,４８３９４,
９４,９９３－－―－*Consolidated financial results until September 30, 2005 are for Kyorin Pharmaceutical Co., Ltd.
Consolidated financial results until September 30, 2006 and For
Forecasts
ecasts for the year ending March 31, 2007 apply to Kyorin Co., Ltd.
Ltd.

1

Consolidated Financial Results
for the Interim Term Ending in Sep. 2006
■ Net sales
Units: Billions of yen

Sep/05Interimterm(actual)

Net sales(total)¥33.5◆ Sales of new

30.1

ethical drugs

Sep/06
Interimterm(actual)Change

¥35.1

¥+1.6

28.7

◆Sales of new ethical drugs in Japan
Sep/05 Interim term

・Kipres・Mucodyne・Pentasa

6.1
8.5
3.6

◆Sales of new ethical drugs overseas-1.4

・Gatifloxacin
3.5＊Tequin (BMS) Sales discontinued◆Generic drugs¥35.1 billion¥26.5 billion

Change Forecast（+1.6）+1.6） (-0.4)（+0.6）+0.6） (+0.1)

Sep/06 Interim term
→
→
→

6.9
8.9
4.0

¥2.2 billion→(+0.8)(+0.4）（+0.4）（-2.0）
2.0） (-0.1)

1.8（-1.7）¥2.6 billion（+1.6）+1.6） (-0.2)¥3.3 billion（+1.5）+1.5） (±0.0)＊Toyo Pharmar Co., Ltd. with a full year’s contribution to consolidated results(Shown in the consolidated accounts
for only 2 months last year)◆Consumer healthcare business

Japan

25.9

26.5

+0.6

Overseas

4.2

2.2

-2.0

◆Other businesses¥0.5 billion（-0.1）
0.1） (-0.2)●Cost of sales ratio: up 7.2 percentage points (34.2％(34.2％ → 41.4％
41.4％)◆ Generic drugs

1.0

2.6

+1.6

＊Factors for increase: Main reason due to increase in cost of sales ratio at Kyorin

1.8

3.3

+1.5

◆ Consumer
healthcare
business◆ Otherbusinesses

0.6

0.5

-0.1

OperatingincomeOrdinary
income

2.4

1.9

-0.5

2.8

2.1

-0.7

Net income

1.5

0.8

-0.7

・Milton1.1→ 1.0（-0.1）＊Toyo Pharmar Co., Ltd. and Dr. Program Co., Ltd. with a full year’s contribution to
consolidated results(Not shown in the consolidated accounts last year.)

Pharmaceutical Co., Ltd. – ( Revision of Price Standard for Ethical Drugs, increase indepreciation costs associated with startup of new Noshiro pharmaceutical plant, etc.)
Other factors: Toyo Pharmar Co., Ltd.became a consolidated subsidiary, etc.

●R&D
R&D ratio: down 6.6 percentage points (17.9％(17.9％ → 11.3％
11.3％)＊R&D expenses fell from ¥6.0 billion to ¥4.0 billion, a decline of ¥2.0 billion. In the previous
year, placed an application for the addition of a further indication (benefit) for KIPRES(Adult allergic rhinitis).

●SG&A
SG&A expenses ratio (excluding R&D expenses):up 1.1 percentage point
point(40.7％(40.7％ → 41.8％）
41.8％）＊Factors for increase: Increase in S&GA expenses ratio as Kyorin Pharmaceutical Co.,
Ltd.’s overseas sales dropped. Dr. Program Co., Ltd. became a consolidated subsidiary.
(Not shown in the consolidated accounts last year.)■ Operating income¥1.9billion（-0.5）
0.5） (＋0.4)■ Net income■ Cash dividends ¥10.00¥0.8 billion （-0.7）
0.7） (＋0.1)＊The operating income margin decreased 1.7 percentage points,to5.5%2

Consolidated Financial Results Forecast
for the Year Ending March 31, 2007
■ Net sales
Units: Billions of yen

2006

Year ended
March 31,2007
(forecast)

¥74.1

¥76.7

Year ended
March 31,

Net sales(total)◆ Sales of new
ethical drugs
Japan

64.3
55.7

62.3
57.4

¥76.7 billion◆Sales of new ethical drugs in Japan ¥57.4 billion

Change Originally
Forecast（+2.6) （+1.1）（+1.7 （+1.0）

Year ended March 31, 2006 Year ending March 31, 2007 (forecast)

Change

¥+2.6

-2.0
+1.7

・Kipres
13.4→
14.6（+1.2）
・Mucodyne
19.9
→
21.0
（+1.1）＊Although the Revision of the Price Standard for Ethical Drugs is having an effect the goal
is to achieve a roughly 9% increase on a quantity basis. – Sales of Rapid Tester are expected
to reach several hundreds of millions of yen. – Uritos is due to be marketed next fiscal year.

◆Sales of new ethical drugs overseas
・Gatifloxacin
6.7＊Tequin (BMS) Sales discontinued¥ 4.9 billion→

3.3（-3.7）
3.7） （±0.0）
0.0）（-3.4）◆Generic drugs¥5.9 billion（+2.4+2.4） （-0.1）
0.1）◆Consumer healthcare business¥7.3 billion（+2.3）（+2.3）（+0.5)）（+0.5)＊Toyo Pharmar Co., Ltd. with a full year’s contribution to consolidated resul

・Milton

2.1

→

2.0

(-0.1）

Overseas

8.6

4.9

-3.7

◆ Generic drugs

3.5

5.9

+2.4

◆Other businesses¥1.2 billion（±0.0）（
0.0）（）（-0.2）
0.2）
●Cost
Cost of sales ratio: up approximately 5 percentage points＊Factors for increase: Main reason due to increase in cost of sales ratio at Kyorin
Pharmaceutical Co., Ltd. – (Revision of Price Standard for Ethical Drugs, increase indepreciation costs associated with startup of new Noshiro pharmaceutical plant, etc.)
Other factors: Toyo Pharmar Co., Ltd. became a consolidated subsidiary, etc.

＊Dr. Program Co., Ltd. is successfully expandig sales. Toyo Pharmar Co., Ltd.
and Dr. Program Co., Ltd. have made a full year’s contribution to consolidated
results◆ Consumer
healthcare
business

5.0

7.3

+2.3

◆ Otherbusinesses

1.2

1.2

±0.0

OperatingincomeOrdinary
income

9.0

6.3

-2.7

●SG&A
SG&A expenses ratio (excluding R&D expenses): up approximately
1 percentage point

9.5

6.7

-2.8

＊Factors for increase: Increase in S&GA expenses ratio as Kyorin
Pharmaceutical Co., Ltd.’s overseas sales dropped

Net income

5.2

3.6

-1.6

●R&D
R&D ratio: down 2.0 percentage point (13.6％(13.6％ → 11.6%)＊R&D expenses expected to decrease from ¥10.1 billion to ¥8.9 billion, down ¥1.2 billion.
（Timing for R&D costs deferred）■ Operating income¥6.3 billion（-2.7) （+0.6)＊The operating income margin is expected to decrease 3.9 percentage points, to 8.2%.)■ Net income■ Cash dividends ¥20.00 (forecast)¥3.6 billion（-1.6）
1.6） （+0.1)
3

Approach to KYORIN GroupKyorin MIC-’09 Mid-Term Business Plan
（FY０５～
０５～FY０９）
０９）

New Corporate Image and Identity
A distinguished and integrated healthcare company based onreliableness with the core business in global drug creation.

Keynote: Evolution & Innovation II

4

1.Adoption
1.Adoption of Holding Company System
Corporate vision as outlined in our MICMIC-09 mediummedium-term business plan:

To remain an integrated, trusted and unique healthcare company centered on global drug
discovery operations.
Business Structure

Consumer Healthcare
Business that is
Supported by Physician
Recommendations

Core Business:
Drug Discovery BusinessPharmaceuticals Business

Generic Drug Businessthat Provides Reliable
Products

Dr. Program

Kyorin Pharmaceutical

Toyo Pharmar

Wellness Business that is
Based on Cooperation
with PhysiciansGroup reorganized into consolidated
subsidiaries focusing on different
business areas on October 1, 2006
Drug Discovery/
Pharmaceuticals Business

Kyorin PharmaceuticalCo., Ltd.

Kyorin Co., Ltd.

Generic Drug BusinessToyo Pharmar Co., Ltd.

Consumer Healthcare
Business
Dr. Program Co., Ltd.

New Businesses
Development
Bistner Co., Ltd.

Shared Services Business
Kyobundo Co., Ltd.

December 20, 2006: Became a wholly-owned subsidiary through exchange of shares
February 1, 2007: Change of trade name to Kyorin Rimedio

5

2.Approach on Basic Strategy
Basic Strategy:
1.Establish Kyorin as a Global Drug Creation Company
2. Increase the Competitive Strength of Our Pharmaceuticals Business to
Support Investments for Drug Creation
3.Develop New Businesses that Will Build on the Foundationof the Pharmaceuticals Business and Contribute to Future Growth61.Establish Kyorin as a Global Drug Creation Company
Efforts made in this interim term
(1)Strengthening cooperation by transferring the Discovery Reseach Laboratories and Research Center to the Research Headquarters.
(2) Steady expansion on to the overseas clinical market (KRP(KRP-104) through a Development Base stationed in ActivX(3) Considering the effective utilization of the Kyorin Scotland Research Center after roughly 6 years Progress of POC Projects (5 items)

ＰＯＣ Projects Progress of POC Projects (5 items)◆ＫＲＰ−１０４）
ＫＲＰ−１０４（
１０４（Anti-diabetes agent）

・ PhI trials underway in the US (Completion scheduled in 2006) – PhI trials initiated in Japan (July 2006)◆ＫＲＰ−２０４）
ＫＲＰ−２０４（
２０４（Anti-obesity）
・ June 2006: Presentaion of Ph II a results at ADA – Licensing activities in progress.
Point
Target: Type II diabetes mellitus/obese subjects
Number of cases: 89
Administration：１２-week＊A significant reduction of internal fat area was identified＊Tendency to a reduction in weight and girth has been confirmed.

◆ＫＲＰ−２０３
ＫＲＰ−２０３ (Immuno modulatar)
modulatar)・Licensing agreement with Novartis

・ PhI trials due to commence in FY2006◆ＫＲＰ−
ＫＲＰ−１０１）
ＫＲＰ−１０１、ＫＲＰ−
１０１、ＫＲＰ−１０５、ＫＲＰ−１０５（
１０５（Anti-dyslipidemia）
・Development undertaken by giving KRP-105 priority as a PPARα agonist.

7

2. Increase the Competitive Strength of Our Pharmaceuticals Business to
Support Investments for Drug Creation
Domestic sales strategy

Commitment forinterim term

Interim termachievement①Up regular visits frequency to physicians

Promote the Franchise
Customer Strategy
Product strategy
・ Strengthening the
products in the FC fields
・Promotion of Lifecycle
Management

Develop more effective
strategies to strengthenties with wholesa
wholesalers

・Interview rate: 96% (Target 100%)
・Frequency of interviews up 30%/MR②Strengthening relations with specialists
・Continued commitment to scientificsociety/research meeting③Further strengthening of FC fields
・ Introduction of Rapid Tester* Market launch: October 2, 2006］
2006］
・ Support for market release of new drugs①Strengthening relations withmajor wholesalers②Use of promotion support fee
・ Measures to establish a cooperation systemwith MS

Prescription
rate: 91%
(Target: 100%)
Domestic ethicaldrugs +9.8%
Increase (Inquantity terms)

8Further Strengthening of FC Fields Through Introduction of the Rapid Testa●Strengthening of FC3 section through alliance strategies①Introduction of products that can be used in the FC fields (incl. diagnostic drugs, equipment and utensils)②License-out products that are mainly prescribed outside the FC fields

2003.10

2006.10

2001.8

2003.1

Merck
Merck

Bayer
Bayer

Kipres
KipresBaynasBaynasAllelock
Allelock

DaiichiDaiichi Pure
Pure Cemicals
Cemicals
Rapid
Testa
Rapid Testa

Co‑marketing

Co‑promotion

Co‑
Co‑marketing

Kyowa
Kyowa Hakko
Hakko

Licensing-in

Strengthening oflicensing-in

Strengthen
Strengthen Products
Products thatthat areare Mainly
Mainly prescribedprescribed within
within thethe FCFC fields
fieldsStrengthening
Strengtheningthe
theproductproductlineup
lineupininthe
therespiratory
respiratoryfield
fieldthroughthroughthe
theintroduction
introductionof
ofthe
theRapid
RapidTesta
Testa＊Potential
synergyeffectfrom
expanded
Mucodyne
andGatifloprescription.
＊Potential synergy effect from expanded Mucodyne and Gatiflo prescription.

Ophthalmic
Ophthalmic
solutionssolutions

PekironPekiron

Galderma
Galderma && others
othersSenju
Senju PharmaceuticalPharmaceutical&& others
others2000.1

2002.4

MaxaltMaxaltEisai
Eisai

2003.9Promotion of license-out /Licensing-out /joint marketing＊Rapid Testa

joint marketing・Influenza virus diagnosis kit
・Easy to use and capable of measurement on 3 – 10 minutes
・Discrimination between A and B type influenza is possible.

9Progress in Market Launch Approach of
the Overactive Bladder Treatment Drug URITOS
１.Expected Launch :Due to be marketed in the first half of FY2007：Overactive bladder (OAB) treatment drug that shows high bladder selectivity,
２.Features
low dry mouth,longmouth,long-term control of symptoms
３．Market overview : Scale of domestic market in the order of 33.0 billions yen (as of September2006) – By March 2010, market is expected to grow to 60.0 billions yen or
above
４．Target：8-10% Share Targeted(solely by Uritos)
Uritos) FY’
FY’１０
５．Future efforts:Prioritized approach focusing the urological sector, the company’company’s area of strength.
＊Continuing the practice of regular visits and strengthening relations
relations as a means of achieving greater market
penetration smoothly.

FC3 sector
Physician of Urology Department(approx. 6,000 physicians)

ＭＲ

Cooperation withthe wholesale trade

Interview rate:
94%
New eagerly awaited drugs
prescribed mainly in the
Urology Department
10

Startup of Kyorin Pharmaceuticals New Noshiro Pharmaceutical Plant
Policy: Pursuite of lowlow-cost operation

・The new production outfit is to integrate 3 plants with 2 production
production bases.
・Inproductsts
In-house production of bulk products or technically advanced produc・Outsourcing of other products(Products that can be made by Toyo Pharmar will be produced by Toyo Pharmar.)Pharmar.)Date commissioned: April 1, 2006 –Items produced: Main oral solid drugs
Mucodyne – Kipres – Ketas – Gatiflo – Aplace – (Uritos)
Uritos)Features① Plant to international standard complying with the FDA’s
FDA s GMP Standards②Upgrading productivity through the introduction of statestate-ofof-thethe-art equipment③A plant friendly to the human operator and to the global environment
environment

11

③Establishment of New Business to Assure the Future Afterthe Pharmaceutical BusinessToyo Pharmar Co., Ltd.: Efforts made in Interim Term Ended September 2006.

ＧＯＡＬ ：Being among the Best Five in the GE Company.
Target Figures of MIC09 Plan: Sales 10.0 billions yen/Operating Income 1.0 billions yen
Commitment: Establishment (–( FY2006) and Growth (FY 2007 – Fiscal 2009) of System
The goal is to be a GE Company that meets social needs and receives trust and to growin the expanding GE market.
– FY2006 Establishment of system –ResearchResearch andand development
development

Reinforcing group power andstrengthening business
Production
Production●Upgrading quality:●Construction of new research related
・Rearrangement of product offering
facilities (Completion scheduled for June 2007)
Only products consistent with Kyorin●Additional products 3-Component
standards will continue to be sold5-Standard sales(Interim term: Reduction by 180 items)●Commissioned manufacture of
Kyorin products
Target for fiscal 2009:
7-Component 12-Standards

・Validation of 6 items

Generating trust
Sales
Sales
●Fuller commitment to information provision
・Increase in MR staff(Sent from Kyorin Pharmaceutical)
・Information provisions using IT
・Cooperation with Kyorin Pharmaceutical(Due to start in specific areas)●Stable supply
・Starting to trade with wide-area wholesalers●Establishment of a sales network
・Selecting key sales companies in each area
(Approx. 200 companies in 60 areas)

For further growth: Change of trade name to KYORIN Rimedio.

12

3.Develop New Businesses that Will Build on the Foundationof the Pharmaceuticals Business and Contribute to Future Growth

Dr. Program:Building a Brand for Cosmetics with Pharmaceutical Functions
Unit:
Billions of yen

Year ended
June. 30,
2005

Year ended
Jan. 31, 2006 (onlyeight months)

Year ending
Jan. 31, 2007
(originally forecast)Year ending
Jan. 31, 2007
(forecast)Year ending
Jan. 31, 2010
(forecast)

Net sales

¥0.5

¥0.8

¥2.1

¥2.5

¥5.0

Operating income

0

0

¥0.1

¥0.3

Operating income
margin: over 10%●Capitalize on the Kyorin brand: Larger customer mailing list
●Establish an inin-house R&D center to enhance our development capabilities and thereby
thereby ensure
a steady flow of new products: Broader lineup of products
Customer Index
5. 0(Forecast number of
4. 5
customers in each fiscal
year divided by number of
4. 0
customers in the year
ended June 30, 2005)

Number on customer list
has already reached thetarget this term.

Aging care Series newly marketed.
Target forforecast customer index: 4.2

3. 5
3. 0
2. 5
2. 0
1. 5

1. 0
Year en ded Ju n e 30,
2005

Year en ded Ju n . 31,
2006

Year en d Ju n . 31, 2007

（Forecasts made on June 30, 2005）

13

Update on Bistner business fund・Start:September 2000
・Investment:¥5 billion (¥4 billion already paid to Bistner by Kyorin, and Bistneralready invested ¥2.6 billion in 26 cases )・Focus:Pharmaceuticals, Medical Treatment, Nursing, health care

Safe-Tech

Healthfoodregion①98 million yen②Manufacturing
sales of scentlesssoybean powder etc.

Dr. program①832 million yen②Development and sales ofskin-care products

Cosmetic
regionCompanies invested
Drug creation related todrug region
７

Drug creation
regionIRYO DENSHI SEIKO①－②Development of heat
treatment equipment for
Hepatitis C virus infection

MedicalregionMedical related region 11
Health food region

3

Cosmetic region

3

Environment,other

2

Bioselent①78 million yen② Industrial waste
resolution etc. ,basedon Biotechnology

JMA①－②Medical facilities
and equipment lease●Early business making at investment destination
by strengthening the operation management about the fund.
●Selection of investment region centering on health care and wellness region.

①Sales Turnover②Main activities

Environment,
other

14

Kyorin Pharmaceutical Co., Ltd.
Main R&D Activities

Main R&D Activities①① （ November 7 , 2006 Release)
Application
Stage
DomesticFiled(１０/０４)Filed(７/０４)

Overseas
ＰｈⅠ(Launched
Merck)

Filed（８/０５）＊：Describe the latest changes
Compound/Code
URITOS
ＫＲＰ－１９７（Tablets）
KIPRES
Fine Granules
４ｍｇ

Overactive bladder

OriginIn-house

Tablets
Montelukast

Features

Potent anti-cholinergic agent, low dry mouth

Comments
Overseas:Licensing
agreement with LGLS
Domestic： Co
development,Co-Marketingwith ONO (Plan)○ Additional formulation○ New indication anddosage・Co-development with
Banyu

Anti-bronchial asthma Merck (US)agent

New oral granules formulation for asthma
treatment in children aged 1 to 5 years old.

Anti-bronchial asthma Merck (US)agent

New indication for allergic rhinitis in adult. The ○ Additional indication
・Co-development withonce daily dosing of montelukast, an LTD4
Banyu
receptor antagonist, is expected to improve
symptoms of allergic rhinitis. Moreover it isexpected to exert less sedation/sleepiness thanother marketed therapies.

Montelukast

KIPRES(Launched
Merck)

Therapy area/
ActionAllergic Rhinitis

15

Main R&D Activities②② （ November 7 , 2006 Release)
POC Project, PhⅡ
Ⅱ～Ⅲ
Stage
Domestic

Overseas

ＰｈⅢ（１/０４）(Galderma,
Launched)

ＰｈⅡ/Ⅲ（10/０５）(Merck,ＰｈⅢ)

ＰｈⅡ（３/０５）*ＰｈⅠ（7/06）

Compound/
Code
PEKIRON NaillacquerMontelukast(Injection)

Therapy area/
ActionAnti-mycotic
agent
Anti-asthmatic
agent

Origin＊：Describe the latest changes
Features

Comments

In-house

First nail varnish formulation for nail mycosis in
Japan＊Basic Agreement on
Joint Research with
MARUHO canceled.

Merck (US)New formulation(Injection) for asthma in
adult.

・Co-development with
Banyu

Nisshin
Flour Milling

A highly selective beta3-antagonist that may
improve obesity and have less cardiac effect incomparison to previous compounds.

Developed with Nisshin
Flour Milling

Aldose reductase inhibitor to reduce thesorbitol accumulation in the cell, andimprove diabetic neulopathy

・Co-development with
Dainippon Sumitomo

ＰｈⅡ（１０/04）

KRP-204(Ｎ－５９８４)（ Tablets ）Anti-obesity(Dainippon
Sumitomo,
ＰｈⅢ)

ＡＳ－３２０１（Tablets ）Diabetic
neuropathy

Dainippon

ＰｈⅡ（６/04）

ＫＲＰ－１０１（Tablets ）Anti-dyslipidemia
with anti-diabetes

In-house

A PPAR-alpha agonist. It may have an effect ondiabetes in addition to lipid metabolism
improvement including reduction of neutral fat.

ＰｈⅠ
（3/06）

KRP-104

Anti-diabetes
agent

In-house

A DPP4 inhibitor to reduce blood glucose throughsuppression of the degradation of insulinreleasing hormone. Diabetic therapy with fewerside effects is expected than existing treatments.

Pre –clinical

KRP-203

Transplantation
and Autoimmune
Diseasestreatment

In-house

An immunosuppressant with novel mechanism
called S1P-agonist. It may have a better safety
profile than previous ones as well as an excellent
effect under concomitant use with other types of
immunosuppressants.

Pre –clinical

KRP-105

Anti-dyslipidemia

Sumitomo

In-house

Licensing agreement with
Novartis

A highly selective PPARα agonist. In addition to lipid
metabolism improvement, KRP-105 increased
adiponectin, reduced leptin, and suppressed weightgain in animal models, suggesting potential to be aunique and ant-dyslipidemia agent.

16

Main R&D Activities③③ （ November 7 , 2006 Release )Licensing development（preclinical）
Product
name・CodeTo bedetermined

Alphagan/Alphagan P

Ketas

Licensee ・Collaborative
research

Therapy area/
Action-Merck (US)Synthetic
Antimicrobial

ＰｈⅠ

Senju
SeiyakuStage（4/05）

ＰｈⅡ（8/05）

MediciNova(US)

Glaucoma＊：Describe the latest changes

OriginInhouseMerck(US)

Allergan(US)

Comments

・Collaborative research・Entered into an exclusive license(7/04)
・Licensed from Allergan（Cross license of gatifloxacin ophthalmic solution ）・License-out to Senju（5/04）

Cerebrovasculardisorders

Inhouse・KYORIN grants MediciNova an exclusive license in all
countries worldwide except for Japan,China, South Korea
and Taiwan to develop, manufacture and sell the compoundand products for the multiple sclerosis indication.(10/04)

Anti-bronchialasthma andinterstitial cystitis
agent

Inhouse・KYORIN grants MediciNova an exclusive license in all
countries worldwide except for Japan,China, South Korea
and Taiwan to develop, manufacture and sell the compoundand products

ＰｈⅡ

KCA-757(Antibronchial
Asthma:1/05)(interstitial
cystitis:
5/05)

MediciNova
(US)

17

Reference

P&L summary ： Consolidated-1（ Units: ¥ millions ）Sep/05Interim term

Sep/06 Interim term

Affiliated companies (2) Nisshin Kyorin Parmaceutical,
Nihon Rikagaku Yakuhin

actual%sales

actual

%
sales

YoY

Sales

３３，
３３，５１１100.0%

３５，
３５，０９３100.0%

4.7%

１，５８２

Sales of new

３０，
３０，１０９89.8%

２８，
２８，７０４

81.8%

▲4.7%

▲１，４０５Amt chg

ethical drugs
Japan
Overseas
Generic drugs
Consumerhealthcare
business
Otherbusinesses

Consolidated companies (9)Kyorin pharmaceutical, Kyobundo,
Bistner,Kyorin USA, Kyorin Europe GmbH,Bistner Fund No.1,
ActivX Biosciences,Inc.,Toyo Pharmar,Dr.Program■ Net sales◆Sales of
new ethical drugs in Japan¥35.1 billion¥26.5 billion

Sep/05 Interim term

２５，
２５，９０４77.3%

２６，
２６，４７７

75.4%

2.2%

５７２

４，２０５

12.5%

２，２２７

6.4%

▲47.0%▲１，９７７

９６９

2.9%

２，５９１

7.4%

167.4%

１，６２２

１，８４４

5.5%

３，２９８

9.4%

78.9%

１，４５４

・Kipres・Mucodyne・Pentasa

6.1
8.5
3.6

◆Sales of
new ethical drugs overseas→→→（+0.6）+0.6）

Sep/06 Interim term
6.9
8.9
4.0

¥2.2 billion

・Gatifloxacin
3.5
→ 1.8
＊Tequin (BMS) Sales discontinued◆Generic drugs

Change（+1.6）+1.6）¥2.6 billion(+0.8)(+0.4）（+0.4）（-2.0）
2.0）（-1.7）（+1.6）+1.6）＊Toyo Pharmar Co., Ltd. with a full year’s contribution to

５８８

1.8%

４９９

1.4%

▲15.1%▲８８

consolidated results(Shown in the consolidated accounts
for only 2 months last year)◆Consumer healthcare business ¥3.3 billion （+1.5）+1.5）
・Milton

1.1

→ 1.0

（-0.1）＊Toyo Pharmar Co., Ltd. and Dr. Program Co., Ltd. witha full year’s contribution to consolidated results(Not shown in the consolidated accounts last year.)◆Other businesses¥0.5 billion（-0.1）
0.1）

18

P&L summary ： Consolidated-2（ Units: ¥ millions ） ●Cost of sales ratio: up 7.2 percentage points
Sep/06 Interim term
(34.2％(34.2％ → 41.4％
41.4％)

Sep/05Interim term

＊Factors for increase: Main reason due to increase in cost

actual%sales

actual

%
sales

YoY

Amt chgSales

３３，
３３，５１１100.0%

３５，
３５，０９３100.0%

4.7%

１，５８２

COGS

１１，
１１，４５０34.2%

１４，
１４，５１３

41.4%

26.8%

３，０６３

Gross profit

２２，
２２，０６１65.8%

２０，２０，５８０

58.6%

▲6.7%

SG&A
（of which R&D)

１９，
１９，６５５（６，００１）
００１）

58.6%
17.9%

１８，
１８，６３９(３，９８２）
９８２）

53.1%
11.3%

▲5.2%
(▲33.6%)

Operating profit

２，４０６

7.2%

１，９４０

5.5%

▲19.3%

Non-op income
Non-op expense

４５１
１０３

１.3%
0.3%

４８１
３６１

1.4%
1.0%

6.7%

Recurring profit

２，７５３

8.2%

２，０６１

5.9%

▲25.1%

Extraordinary profits

５３
７５

0.1%
0.2%

１４９
４５０

0.4%
1.3%

180.0%
495.1%

２，７３１

8.1%

１，７６０

5.0%

▲35.5%

１０４

0.3%

７８８

2.2%

654.3%

１，１３７

3.4%

１４４

0.4%

▲87.3%

▲９９２

２９

0.0%

▲６

▲0.0%

－

▲３５

１，４５９

4.4%

８３３

2.4%

▲42.9%▲６２５

Extraordinary losses

Pretax profit
Corporate,inhabitantsand enterprise taxes

Tax adjustments
Minority interests in net
income and expenses

Net profit

247.2%

of sales ratio at Kyorin Pharmaceutical Co., Ltd.
– ( Revision of Price Standard for Ethical Drugs, increasein depreciation costs associated with startup of
new Noshiro pharmaceutical plant, etc.)
Other factors: Toyo Pharmar Co., Ltd.became aconsolidated subsidiary, etc.

R&D ratio: down 6.6 percentage points▲１，４８０ ●R&D
(17.9％(17.9％ → 11.3％
11.3％)▲１，０１５ ＊R&D expenses fell from ¥6.0 billion to ¥4.0 billion, a decline of（▲２，０１８）
０１８） ¥2.0 billion. In the previous year, placed an application for the▲４６５

addition of a further indication (benefit) for KIPRES(Adult allergic rhinitis).

●SG&A
SG&A expenses ratio (excluding R&D expenses)
３１ :up 1.1 percentage point (40.7％(40.7％ → 41.8％）
41.8％）
２５８ ＊Factors for increase: Increase in S&GA expenses ratio▲６９２

as Kyorin Pharmaceutical Co., Ltd.’s overseas sales
dropped. Dr. Program Co., Ltd. became a consolidated
subsidiary.
(Not shown in the consolidated accounts last year.)

９６３７４ ■ Operating income ¥1.9billion▲９７０＊The operating income margin down 1.7 percentage points,
to 5.5%.

¥0.8 billion
６８３ ■ Net income■ Cash dividends ¥10.00

19

BS summary:Consolidated（ Units: ¥ millions ）Mar/06

Sep/06

actual%totalCurrent assets

５９，
５９，７１９49.2%

Cash, deposits
A/R, notes receivable
Mk securities
Inventory
Other

１４，
１４，５９３
２６，
２６，７５２
１１１
１３，
１３，７６７４，４９３

Fixed assets

６１，
６１，６３４

actual５７，
５７，３８０%total48.7%

Amt chg▲2，338１１，
１１，２８０２５，２５，７１５１１１
１５，
１５，７９４４，４７７
50.8%

Tangible assets
Intangible assets
Investments

２１，
２１，３６３５，７２０
３４，
３４，５５０Current liabilities

１８，
１８，３６７

A/P, notes payable
Other

６，５９０
１１，
１１，７７７

Non-current liab.

７，４７８

6.2%

Total liabilities

２５，
２５，８４５

Owner’s equity
Net unrealized gain andtranslation adjustments

６０，
６０，５３４51.3%▲1，099２１，
２１，０９７４，８５５
３４，
３４，５８１■Current assets(down ¥2,338 million yoy)・ Cash,deposits（down ¥3，312 million yoy）
・ A/R, notes receivable
・Inventory（down ¥1,036 million yoy)(up ¥2,026 million yoy)

■Fixed assets
・Tangible assets
・Intangible assets
・Investments(down¥1,099 million yoy)(down ¥265 million yoy)(down ¥865 million yoy)(up ¥ 30 million yoy)(down ¥1,641 million yoy)

14.2%

▲1，641■Current liabilities

６，１９６

5.2%

▲1，282■Non-current liabilities (down ¥1,282 million yoy)

21.3%

２２，
２２，９２１19.4%▲2，923９３，
９３，６６７77.2%

９２，
９２，９６２

78.8%

▲704

１，２２３

1.0%

１，３９４

1.2%

170

６１６

0.5%

６３６

0.6%

19

Total equity

９５，
９５，５０７78.7%

９４，
９４，９９３

80.6%

▲514

Total liabilities andequity１２１，
１２１，３５３100.0%

１１７，
１１７，９１５100.0%▲3，438

Minority interests

15.1%

１６，
１６，７２５８，６４６
８，０７８

・Income taxes payable etc. (up ¥ 2,056 million yoy)・other（down ¥3,698million yoy)・other（down ¥719million yoy)20

R&D, capex & depreciation ＜ Consolidated＞
９／ ０３

９／ ０４

９／ ０５

（ Units: ¥ millions ）
９／ ０５
３／０７
（Forecast ）actualYoY

３／０７（ originally
expected）

R&D expense

３，５７７

５，９７２

６，００１

３，９８２

▲３３.
３３.６%

８，９００

１０，２００Capex (book base)

３，５６４

３，２８１

９８２

１，２２３

＋２４.
２４.５%

２，６００

３，４００

Depreciation expense

１，６５５

１，７８９

１，６６０

２，３０４

＋３８.
３８.８%

４，６００

４，７００

＜ Capital expenditure （Result／／Forecast)＞＞
３／ ０６
actual３／ ０７

Interim term
（actual））（actual）
Noshiro preparation plant andother production machine (each plant)
Equipment for control, sales activities
Equipment for research(Result/Forecast)Investment in facilities of Noshiro plant andother production machine (each plant)
Equipment for control, sales activities
Equipment for research

Full term（forecast））¥３.６ billion¥０.３ billion¥０.７ billion¥０.９ billion¥０.２ billion¥０.１ billion¥１.９ billion¥０.４ billion¥０.３ billion
21

Product sales update
９ ／ ０３

３／０７（ originally
expected）
expected）

４.３

５.２

６.１

６. ９

１２.
１２.３%

１４.
１４.６

１４.
１４.２

Gatiflo（Kyorin）

０.６

０.９

１.１

１. １

２.５%

２. ６

３. ０

Mucodyne

７.８

７.７

８.５

８. ９

４.４%

２１.
２１.０

２０.
２０.９

Baccidal

０.４

０.３

０.３

０. ３

▲８.７%

０. ５

０. ５

Ketas

３.５

３.２

３.２

２. ９

▲８.０%

５. ９

６. ２

Aplace

１.５

１.３

１.２

１. ０

▲１３.
１３.１%

２. ０

２. ０

Rocaltrol

１.４

１.２

１.１

１. ０

▲１１.
１１.７%

１. ９

１. ９

Pentasa

３.０

３.１

３.６

４. ０

１０.
１０.３%

８. ０

７. ９

Total

３.６

５.１

４. ２

２. ２

▲４７.
４７.０%

４. ９

４. ９

Gatifloxacin

３.０

４.８

３. ５

１. ８

▲４９.
４９.０%

３. ３

２. ５

０.６

０.２

０. ２

０. ２

１.９%

０. ３

０. ３

Foreign sales ratio (%)

１１..
１１..９
..９%

１６.
１６.７%

１２.
１２.６%

６.３%

―

６.４%

６.５%

Milton

１. ４

１. ２

１. １

１. ０

▲９.５%

２. ０

２. ２

(Antibacterial agent)(Mucuregulant)(Antibacterial agent)(For bronchial asthma andcerebrovasculas disorders）(Anti-ulcer agent)(Osteoporosis remedy)(Ulcerative colitis and Crohn’sdisease treatment)

Salesof new
ethical
drugs
(over
seas)

９／ ０５

Kipres（LT receptor antagonist）
Sales
of new
ethicaldrugs(japan)japan)

９／ ０４（ Units: ¥ ｂillions ）
９／ ０６
３／０７
（Forecast ）actualYoY（Bulk・Royalty）

Ｎｏｒfloxacin（ Bulk・Royalty ）Consumer(Effervescent disinfectant）
Healthcare
business

22

Financial summary (Consolidated)（ Units: ¥ millions ）９／ ０４

９ ／ ０５３ ／ ０６３ ／ ０７（forecast）

３１，０５６（５，１７２）

３３，５１１（４，２０６）

３５，０９３（２，２４６）

７４，
７４，０５４（８,５９３）５９３）

７６,
７６,７００（４,９００）
９００）

７５,
７５,６００（４,９００）９００）

COGS
Ratio to sales(％)

１１，３１１（36.4%)

１１，４５０（34.2%)

１４，５１３（41.4%)

２６，
２６，５１５(35.8%)――

SGA
Ratio to sales(％)

１８，１４９(58.5%)

１９，６５５(58.6%)

１８，６３９(53.1%)

３８，
３８，５４９(52.1%)――

R&D expense
Ratio to sales(％)

５，９７２(19.2%)

６，００１(17.9%)

３，９８２(11.3%)

１０，
１０，１０７(13.6%)

８，９００（11.6%)

１０，
１０，２００（13.5%)

Operating profit
Ratio to sales(％)

１，５９５(5.1%)

２，４０６(7.2%)

１，９４０(5.5%)

８，９８９(12.1%)

６,３００（8.2%)

５,７００（7.5%)

Recurring profits
Ratio to sales(％)

１，９７４(6.4%)

２，７５３(8.2%)

２，０６１(5.9%)

９，４６５（12.8%)

６,７００(8.7%)

６,４００(8.5%)Net profit
Ratio to sales(％)

１，３０７(4.2%)

１，４５９(4.4%)

８３３(2.4%)

５，２２８（7.1%)

３,６００(4.7%)

３,５００(4.6%)EPS (¥)

１７．５９

１９．６５

１１．２１

６９．
６９．７４

４８．
４８．４１

４７．
４７．０７

Capital

４，３１７

４，３１７

７００

４，３１７

Assets

１１８，５５８

１１６，５６６

１１７，９１５

１２１，
１２１，０４４

９１，４６０

９１，４８３−

９４，
９４，７５２−−

９４,９９３－

BPS (¥)

１,２３０.４５

１,２３１.８０

１,２６８.９１

１,２７５．
２７５．１５

ROE (%)

１．４％

１．６％

０．９％

５．６％

Equity ratio (%)

７７．１％

７８．５％

８０．０％

７８．
７８．３％

Employee

１，７００

１，９４７

１，９２７

１，８２３人
８２３人

Capital expenditure

３，２８１

９８２

１，２２３

４,６０５

２,６００
６００

３,４００
４００

Depreciation expense

１，７９４

１，６６０

２，３０４

３,６４６

４,６００
６００

４,７００
７００

Sales
（Exports）

Shareholders’ equity
Total equity

９ ／ ０６*Consolidated financial results until September 30, 2005 are for Kyorin Pharmaceutical Co., Ltd.
Consolidated financial results until September 30, 2006 and For
Forecasts
ecasts for the year ending March 31, 2007 apply to Kyorin Co., Ltd.
Ltd.

３ ／ ０７(originally
expected）

23

P&L summary ：Parent-1(Kyorin pharmaceutical)（ Units: ¥ millions ）Sep/05

Sep/06 Interim term

Interim term
actual%sales

actual

%
sales

YoY

Amt chgSales

３１，
３１，６０９100.0%

３０，
３０，２６８100.0%▲4.2%▲１，３４１

Sales of new

２９，２９，９４８94.7%

２８，２８，７００

94.8%

▲4.2%

▲１，２４７

ethical drugs
Japan

２５，
２５，９０４81.9%

２６，
２６，４７７

87.5%

2.2%

５７２

Overseas

４，０４３

12.8%

２，２２３

7.3%

▲45.0%▲１，８２０

１７５

0.6%

１９１

0.6%

9.2%

１６

１，４８６

4.7%

１，３７６

4.5%

▲7.4%

▲１０９

Generic drugs
Consumerhealthcare
business■ Net sales◆Sales of
new ethical drugs in Japan
Sep/05 Interim term
・Kipres・Mucodyne・Pentasa

6.1
8.5
3.6

◆Sales of
new ethical drugs overseas→→→¥30.3 billion

Change（-1.3）
1.3）¥26.5 billion（+0.6）+0.6）

Sep/06 Interim term
6.9
8.9
4.0

(+0.8)(+0.4）（+0.4）¥2.2 billion（-1.8）
1.8）

・Gatifloxacin
3.5
→ 1.8
＊Tequin (BMS) Sales discontinued◆Generic drugs¥0.2 billion◆Consumer healthcare business ¥1.4 billion
・Milton

1.1

→ 1.0

（-1.7）（±0）（--0.1）（
0.1）（-0.1）

24

P&L summary ：Parent-2(Kyorin pharmaceutical)（ Units: ¥ millions ）Sep/05

Sep/06 Interim term

Interim term
actual%sales

actual

%
sales

YoY

Amt chg●Cost of sales ratio: up 5.6 percentage points(32.0％(32.0％ → 37.6％
37.6％)＊Factors for increase: Revision of Price Standard for
Ethical Drugs, increase in depreciation costs
associated with startup of new Noshiro pharmaceuticalplant, etc.)

Sales

３１，
３１，６０９100.0%

３０，
３０，２６８100.0%▲4.2%▲１，３４１COGS

１０，
１０，１００32.0%

１１，
１１，３８５

37.6%

12.7%

Gross profit

２１，
２１，５０９68.0%

１８，
１８，８８２

62.4%▲12.2%

１，２８５ ●R&D
R&D ratio: down 6.3 percentage points(18.9％(18.9％ → 12.6％
12.6％)▲２，６２６

SG&A（of which R&D)

１９，
１９，２８２（５，９７９）
９７９）

61.0%
18.9%

１７，
１７，１１０(３，８０８)
８０８)

56.5%
12.6%

（▲36.3%）Operating profit

２，２２６

7.0%

１，７７２

5.9%

▲20.4%

Non-op income
Non-op expense

３２８
１７７

1.1%
0.6%

４５２
５５８

1.5%
1.9%

37.8%
215.3%

Recurring profit

２，３７８

7.5%

１，６６６

5.5%

▲29.9%

Extraordinary profits

３２
７５

0.1%
0.2%

１３９
４２

0.4%
0.1%

329.6%▲43.4%

１０６ ■ Net income
▲３２

２，３３５

7.4%

１，７６２

5.8%

▲24.5%

▲５７２

３５

0.1%

５７８

1.9%

1,515.7%

５４３

Tax adjustments

１，１２１

3.6%

２３０

0.7%

▲79.5%▲８９１

Net profit

１，１７８

3.7%

９５３

3.2%

▲19.1%▲２２４

Extraordinary losses

Pretax profit
Corporate,
inhabitants andenterprise taxes▲11.3%＊R&D expenses fell from ¥6.0 billion to ¥3.8 billion, a decline of¥2.2 billion.

▲２，１７２●SG&A
SG&A expenses ratio（▲２，１７０）
１７０）(excluding R&D expenses)▲ ４５４ :up 1.8 percentage point (42.1％(42.1％ → 43.9％）
43.9％）＊Factors for increase: Increase in S&GA expenses ratio

１２４
as overseas sales dropped.
３８１ ■ Operating income ¥1.8billion▲ ７１１ ＊The operating income margin down 1.1 percentage points,
to 5.9%.

¥1.0 billion25

BS summary： Parent(Kyorin pharmaceutical)（ Units: ¥ millions ）Mar/06

Sep/06

actual%totalCurrent assets

５０，
５０，７２１

45.3%

Cash, deposits
Accounts receivable
Inventory
Other

１０，
１０，７５４２３，
２３，８６２１２，
１２，１０８３，９９５

Fixed assets

６１，
６１，２５６

Tangible assets
Intangible assets
Investments

１８，
１８，６３６
４，５５２
３８，
３８，０６８actual４７，
４７，０８８%total43.5%

Amt chg▲３，６３３

・Accounts receivable (down ¥1,202 million yoy ）・Inventory(up ¥1,728 million)

６，５４０
２２，
２２，６５９１３，
１３，８３６
４，０５０
54.7%

６１，
６１，１６４■Current assets(down ¥3,633 million yoy)・Cash,deposits （down ¥4，214 million yoy）

■Fixed assets (down¥92 million yoy)
56.5%

▲９２

１８，
１８，２７４３，７７７
３９，３９，１１２・Tangible assets(down ¥361 million yoy)・Intangible assets(down ¥775 million yoy)
・Investments (up ¥ 1,044 million yoy)

■Current liabilities (down ¥1,631 million yoy)
Current liabilities

１３，
１３，６７７

Notes payable

１，２２４
２，８０３
９，６４９

Trade accounts payable

Other

12.2%

１２，
１２，０４６11.1%▲１，６３１

１，４１３
４，５４４
６，０８８

Non-current liab.

５，７７４

5.2%

４，７２９

4.4%

▲１，０４５

Total liabilities

１９，
１９，４５２

17.4%

１６，
１６，７７５15.5%▲２，６７７

Owner’s equity

９１，
９１，４５６81.7%

９０，
９０，２１１83.3%▲１，２４５Net unrealized gain andtranslation adjustments

１，０６８

0.9%

１，２６５

1.2%

１９６

Total equity

９２，
９２，５２５82.6%

９１，
９１，４７６84.5%▲１，０４８

Total liabilities andequity１１１，
１１１，９７８100.0%

１０８，
１０８，２５２100.0%▲３，７２５・Notes payable(up ¥188 million yoy)・Trade accounts payable(up ¥1,740 million yoy)・Other(down ¥3,561 million yoy)■Non-current liab (down ¥1,045 million yoy)26

Financial summary :Parent(Kyorin pharmaceutical)（ Units: ¥ millions ）
９／０３

９／ ０４

９／ ０５

３ ／ ０６３ ／ ０７（forecast）

３ ／ ０７（originally
expected）

３０，１３７（３，６７２）

３０，４２３（５，１７２）

３１，６０９（４，０４３）

３０，２６８（２，２２３）

６７，
６７，３５７（８,３３１）３３１）

６５，
６５，４００（４,６００）
６００）

６４，
６４，５００（４,６００）
６００）

COGS
Ratio to sales(％)

９，８９９(32.8%)

１０，８３０(35.6%)

１０，１００(32.0%)

１１，３８５(37.6%)

２１，
２１，８２１(32.4%)――

SGA
Ratio to sales(％)

１６，８５４(55.9%)

１７，９９９(59.2%)

１９，２８２(61.0%)

１７，１１０(56.5%)

３６，
３６，７６２(54.6%)――

R&D expense
Ratio to sales(％)

３，５７７(11.9%)

５，９７２(19.6%)

５，９７９(18.9%)

３，８０８(12.6%)

１０，
１０，０１３(14.9%)

８，４００(12.8%)

９，８００(15.2%)

Operating profit
Ratio to sales(％)

３，３８３(11.3%)

１，５９３(5.2%)

２，２２６(7.0%)

１，７７２(5.9%)

８，７７３(13.0%)

５，７００(8.7%)

５，４００(8.4%)

Recurring profits
Ratio to sales(％)

３，２９１(11.0%)

１，７９０(5.9%)

２，３７８(7.5%)

１，６６６(5.5%)

８，３７７（12.4%)

５，８００(8.9%)

５，８００(9.0%)Net profit
Ratio to sales(％)

４，６１４(15.3%)

１，１１４(3.7%)

１，１７８(3.7%)

９５３(3.2%)

４，７７１（7.0%)

３，５００(5.4%)

３，１００(4.8%)EPS (¥)

５３．６０

１４．９９

１５．８６

１２．８４

６３．
６３．６４

４７．
４７．１３

４１．
４１．７４

Capital

４，３１７

４，３１７

４，３１７

４，３１７

４，３１７

４，３１７

４，３１７

Assets

１３７，３９１

１１６，６５２

１０７，０１４

１０８，２５２

１１１,
１１１,９７８

Shareholders’ equity

１０８，３３７

８９，９５７

８９，５１６−９２,
９２,５２５−−−

９１，４７６－

BPS (¥)

１,２５８.４３

１,２１０.１７

１,２０５.２５

１,２３１.７１

１，２４５．
２４５．２２

ROE (%)

４．３％

１．２％

１．３％

１．０％

５．３％

Equity ratio (%)

７８．９％

７７．１％

８３．６％

８４．５％

８２．
８２．６％

Employee

１，７１７

１，６４６

１，６３３

１，５２４

１,５０２

Capital expenditure

３，５６４

３，２８１

９６２

９６７

４，４５５

１,５００
５００

１,８００
８００

Depreciation expense

１，６５５

１，７８９

１，５５３

２，０７４

３，３０７

４,２００
２００

４,３００
３００

Sales
（Exports）

Total equity

９ ／ ０６27

Financial Results for the FY06（first half）（ Units: ¥ billions ）First half of FY2005

First half of FY2006

３１.６

３０.３

Operating profit

２.２

１.８

Net profit

１.２

１.０

First half of FY2005

First half of FY2006

Sales

１.２

３.２

Operating profit

０.２

０Net profit

０.１

０First half of FY2005

First half of FY2006

Sales

－

１.２

Operating profit－

０.１

Net profit－

０.１

Kyorin pharmaceutical
Sales

Toyo Pharmar

Dr.Program

Period subject to consolidation FY2005

First half of FY2005
Toyo Pharmar

Dr.Program

Ｐ/Ｌ

From June to July(two months）

Ｂ/Ｓ

○

Ｐ/Ｌ

−

Ｂ/Ｓ

○

28

Financial Results Forecast for the FY06
Kyorin pharmaceutical

３ ／ ０７（forecast）

３ ／ ０６Sales

３ ／ ０７（originally expected）

６７.４

６５.４

６４.５

Operating profit

８.８

５.７

５.４

Net profit

４.８

３.５

３.１

Toyo Pharmar

１／ ０７（forecast）

１ ／ ０６ （ Eight months ofrevenue）

１／ ０７（originally expected）

Sales

４.４

７.３

７.２

Operating profit

０.３

０.２

０.２

Net profit

０.２

０

０.１

Dr.Program

１／ ０７（forecast）

１ ／ ０６ （ Seven months ofrevenue ）Sales（ Units: ¥ billions ）１／ ０７ （originally expected）

０.８

２.５

２.１

Operating profit

０

０.３

０.１

Net profit

０

０.１

０

Period subject to consolidation FY2005

First half of FY2005
Toyo Pharmar

Dr.Program

Ｐ/Ｌ

Second half of FY2005

From June to July(two months） From August to January(six months）

Ｂ/Ｓ

○

○

Ｐ/Ｌ

−

From July to January(seven months）

Ｂ/Ｓ

○

○

29