Overview of the Mochida Pharmaceutical Group's "09-11 Medium Term
Management Plan"

April 1, 2009
Dear All,
Every year, the Mochida Pharmaceutical Group (Mochida Pharmaceutical Co., Ltd., TSE:4534, 1st Section) establishes its rolling three-year plan. We are pleased to present an
overview of the mid-term management plan for the fiscal years 2009 through 2011.
With our focus on profits and ongoing investment for the future as our fundamental
management policy, the Group has worked hard to build further on its strong business in thefields of pharmaceuticals, healthcare products and medical devices and to develop new
businesses with the goal of achieving a unique and distinct comprehensive healthcarecompany with each of its business divisions ensuring its strong presence and competitivenessin its own field.
In order to respond to more difficult changes in the business environment and to ensure
continued profitable growth during the coming three years which start in FY2009, we willcontinue to work hard to promote further structural reform in areas including the improvementof head office functions and the efficient management of the organization under thefundamental policy and aim to further boost productivity through stronger cooperation andbonds among group departments. We will also maximize the productivity of our finiteresources, including human resources, and actively seek collaboration with external
resources at the same time.
Furthermore, our core pharmaceutical business will focus its resources on the four major
areas of cardiovascular, obstetrics and gynecology, dermatology and emergency medicine so
as to further promote strategic alliances which stress the importance of lifecycle management
and partnerships. Furthermore, we will develop high value-added products which meet theneeds of medical professionals as well as our customers by introducing and utilizing external
technologies and technological seeds from outside sources. We will also challenge new
medical fields such as the development of therapeutic drugs for intractable diseases andcellular pharmaceuticals, as well as generic drugs.

As a leader in the manufacture of ethyl

icosapentate (EPA-E) preparatoins, we will work toward having an Epadel-based drug offered
as an OTC drug.
We anticipate a difficult business environment for the next three years. We will be creating abusiness model which is unique to Mochida through challenging opportunities so as to meetthe needs of our customers.
Taking full advantage of the agility and responsiveness of a mid-sized firm, the Group willcontinue to strive toward the following three key points, which remain unchanged under the
new mid-term management plan:
1．Establishing businesses and specialized fields where Mochida has a competitive
advantage
2．Placing a high priority on partnerships
3．Thorough streamlining of resources
Management Target Values for 2011 (Consolidated):
Sales
84.5 billion yen
Operating income
12.6 billion yen
Research and development expenditures 11 billion yen
Productivity per worker
More than 44 million yen

[Reference]
1. Business Strategies
1) Pharmaceuticals
The Group will seek:● To focus its resources on four major areas(cardiovascular, obstetrics and gynecology,dermatology and emergency medicine), in order to become a "specialty pharma";● To expand our products and development pipelines by maximizing the benefits ofalliances;● To build up our life cycle management to maximize values of development pipelines andcurrent products;● To promote customer-centered marketing and business strategies.
a) Development
The Group will seek:
・To optimize organizational structuring and to allocate resources for accelerating drug
development and improving accuracy, in close cooperation with our partners;
・ To aim at submitting an application for approval of an antidepressant MLD-55(escitalopram) in FY2010. To accelerate the development of a pulmonary arterial
hypertension treatment drug MD-0701 (treprostinil), a cellular GVHD treatment drugJR-031 (a drug using human mesenchymal stem cells) and an ulcerative colitis
treatment drug MD-0901 (mesalazine) during a three-year period with the goal ofsecuring the marketing approval of these drugs;
・To promote strategic development plan of drugs under development in light oflong-term life cycle management, such as extension of drug indications after launch;・To promote the extension of drug indication (actinic keratosis) to Beselna Cream (atreatment for condyloma acuminatum);・To enhance the strategies for the introduction of the products in development so as toexpand the pipeline in the fields in which we specialize, including internal medicine;・To conduct unique formulation research by identifying and responding to a wide rangeof medical needs, including not only our products but also those of other companies;
・To actively promote the self-medication business, and as a leader in the manufactureof EPA drugs, to work toward having Epadel offered as an OTC drug ;・To develop high value-added products which meet the needs of medical professionals
as well as our customers by effectively utilizing external technologies andtechnological seeds from outside sources.
b) Marketing
The Group will seek:
・To develop medical representatives (MRs) who can capably cover all the four targetedmajor areas (cardiovascular, obstetrics and gynecology, dermatology and emergency
medicine). The number of the MRs will increase to 750. We will maintain thiscomplement.
・To further expand growing sales of Atelec (a prolonged-action Ca-channel antagonist)
which has been highly successful in the extremely competitive antihypertension drug
market;・Epadel (antihyperlipidemic drug) will be promoted through optimal utilization of theEBM-informations obtained from JELIS. (the world's first large-scale clinical trial of ahighly-purified EPA drug) with the goal of establishing its prominence in thecardiovascular area;
・To reinforce the areas of obstetrics and gynecology and dermatology with Dinagest (forthe treatment of endometriosis) and Beselna Cream (for the treatment of external
genital warts) which have been reputed to be products offering new treatment options
for medical professionals and contribute to QOL of their patients;
・To introduce products in which we specialize and create efficiency in sales activities;
・To expand the generic drug business to achieve an initial sales target of 3 billion yen
early and to aim for further expansion.
c) Pharmaceutical Research Center・To license out three new drugs, which include overseas markets, by the fiscal year
2011;
・To focus resources on two fields of “chronic pain” and “diabetes and obesity” throughSelection and focusing process.
2) Mochida Pharmaceutical Plant Co., Ltd.
Mochida Pharmaceutical Plant in Otawara will promote contract manufacturing businessof medical products with high reliability and efficiency in response to diverse needs of ourcustomers, using both state-of-the-art manufacturing facilities and leading-edge
technologies that meet global standards.
3) Mochida Healthcare Co., Ltd.
Since 1970, our healthcare products business has promoted itself as an expert in basic
skin care products for sensitive skin. Our success includes Skina Babe, a baby bathadditive product which enjoys the top market share, and the Collage series, a line of gentle
basic skin products. Building upon its high rate of support and popularity among
dermatologists, obstetricians and gynecologists, Mochida Healthcare will continue tofurther open up the market through strengthened marketing, expanding sales of theCollage line of products, such as the Furfur series and the Whitening series, and further
establishing their brand image.

2. Promotion of restructuring and better awarenessMochida Pharmaceutical Group promotes structural improvement of the entire group andbetter awareness by all employees of the group companies so as to enhance leanmanagement style in order to respond to more difficult changes in the businessenvironment and to ensure continued profitable growth.
a) Innovations toward independent and collaborative business units
Business units such as pharmaceuticals, the Pharmaceutical Research Center,
pharmaceutical manufacturing and healthcare products are managed under theself-support accounting system with an awareness of the business environment of each
unit and operational efficiency. In addition, the Group enhances the liaison among theunits. Headquarters will also seek to enhance its functions as one of the Group’s business
units so as to improve its corporate value and the efficiency in organizational operation.
b) Innovations toward boosting productivity
The Group will continue to review its personnel allocation, strategy, and utilization, fromthe viewpoint of development and vitalization of human resources, in accordance with therestructuring of the Group's management system.
The Group will promote better awareness among employees and continue to assist
them in their efforts to develop competencies so as to enhance their performance. We will
enhance interdepartmental cooperation in order to meet our target of increasing
productivity by 10% through operational restructuring.