The Mochida Pharmaceutical Group’s “12-14 Medium Term ManagementPlan”
This material is an English translation of the press release issued on April 2, 2012 inJapanese, and the Japanese release is given priority regarding content andinterpretation.
April 2, 2012
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 topresent an overview of the Medium-term Management Plan for the fiscal years 2012
through 2014.
In order to increase the corporate value as a group of companies in the comprehensivehealthcare business during the coming three years which start in FY2012, we willcontinue to work hard to promote further structural reform in areas including theimprovement of head office functions and the efficient management of the organization
under the Medium-term Management Plan for establishing a stable earning basis
directed at sustainable growth by responding to medical and healthcare needs withconcentration of the total power of the Group covering research and development,
manufacturing and marketing through stronger cooperation and bonds among groupdepartments. We will also maximize the productivity of our finite resources, including
human resources, and actively seek collaboration with external resources at the sametime. Aiming, in the long term, at specialty pharmaceuticals that will be recognized forthe value of their existence also on a global scale, we are pursuing investment inbusiness activities that will lead to future competitiveness.
Our core pharmaceutical business will focus its resources on the targeted areas ofcardiovascular medicine, obstetrics and gynecology, dermatology, emergency medicine
and psychiatry so as to further promote strategic alliances which stress the importanceof lifecycle management and partnerships. Furthermore, we will introduce and develop
high value-added products which meet the needs of medical professionals as well ascustomers. We will also challenge new medical fields such as the development oftherapeutic drugs for intractable diseases and will embrace a commitment to biosimilar(follow-on biologics) as well as generic drugs. As a leader in the manufacture of ethyl
icosanpentate (EPA-E) preparations, we will work toward having an Epadel-based drugoffered as an OTC drug.
We anticipate a difficult business environment for the next three years. We will becreating a business 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 Groupwill continue 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 competitiveadvantage

2. Placing a high priority on partnerships
3. Thorough streamlining of resources

Management Target Values for 2014 (Consolidated):
Sales
Operating income
Research and development expenditures
Productivity per worker

102.5 billion yen
14.5 billion yen
15.5 billion yen
More than 56 million yen[Reference]
1. Business Strategies
1) Pharmaceuticals
The Group will seek:■To focus its resources on the targeted areas (cardiovascular medicine, obstetrics andgynecology, dermatology, emergency medicine and psychiatry), in order to becomea specialty pharmaceutical company;■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
and current 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 obtain approval for FSK0808 (a treatment for neutropenia) as the first biosimilar
G-CSF (granulocyte colony stimulating factor) drug to be approved in Japan; Also, toadvance the development of other biosimilar products to follow G-CSF;
To aim at placing a pulmonary arterial hypertension treatment drug MD-0701(treprostinil), a hypertension treatment drug AJH801 (combination of cilnidipine andvalsartan) and an ulcerative colitis treatment drug MD-0901 (mesalazine) on themarket during the 12-14 Medium-term Management Plan;
To promote the addition of drug indications and dosage forms to the drugs underdevelopment and products on the market;
To promote the addition of drug indications to include non-alcoholic steatohepatitis toEpadel (antihyperlipidemic drug) and uterine adenomyosis to Dinagest (a treatment forendometriosis) during the three-year period;
To enhance the strategies for the introduction of the products in development so as toexpand the pipeline in the fields in which we specialize, including internal medicine;
To introduce and develop high value-added products which meet the needs of medical
professionals as well as customers;
To promote the self-medication business, and as a leader in the manufacture of EPA
drugs, to work toward having Epadel offered as an OTC drug.
b) Marketing
The Group will seek:
To develop medical representatives (MRs) who can capably cover all targeted areas(cardiovascular medicine, obstetrics and gynecology, dermatology, emergency
medicine and psychiatry), and to maintain and continue with the complement of 750
MRs;
To accomplish the early expansion of sales of Lexapro (escitalopram oxalate), a new
antidepressant which has already received a highly favorable review and achieved
considerable success in overseas markets, and strive to gain the largest share of theSSRI market;
To add AJH801 to the product line and further expand sales of Atelec, a long-acting
Ca-channel antagonist that has grown in the extremely competitive antihypertension
drug market due to its sales strengths;
To aim at increasing the prominence of Epadel in the cardiovascular area through themaximum utilization of the abundant EBM-information obtained from JELIS (theworld’s first large-scale clinical trial of a highly purified EPA drug) as well as any newEBM-information;
To reinforce the areas of obstetrics and gynecology and dermatology with Dinagest
and Beselna Cream (a treatment for condyloma acuminatum and to which indication toactinic keratosis has been added) which have been reputed to be products offering
new treatment options for medical professionals and contribute to the QOL of theirpatients;
To introduce products in which we specialize and create efficiency in sales activities;
To aim at sales of more than 7.5 billion yen for our generic drug business.
c) Pharmaceutical Research
To aim at licensing out three candidate drugs for development by fiscal 2014, throughthe discovery of drugs that measure up to global standards.
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 will promote contract manufacturing business of 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.
We will draw on what we have learned from the Great East Japan Earthquake tostrengthen our commitment to maintain a stable supply of our products.
3) Mochida Healthcare Co., Ltd.
Since 1970, our skincare products business has promoted itself as an expert in basic
skin care products for sensitive skin. Our success includes Skina Babe, a baby bath oil
which enjoys the top market share, and the Collage series, a line of gentle basic skinproducts. Building upon its high rate of support and popularity among dermatologists,obstetricians and gynecologists, Mochida Healthcare will seek to expand sales of theCollage line of products, such as the Furfur series and the Whitening series andconsolidate their brand image through strengthened marketing, and to further develop
our market.

2. Promotion of restructuring and better awarenessMochida Pharmaceutical Group promotes structural improvement of the entire groupand better 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, pharmaceutical research, pharmaceuticalmanufacturing and skincare products are managed under the self-support accounting
system with an awareness of the business environment of each unit and operationalefficiency. In addition, the Group enhances the liaison among the units. Headquarters
will also seek to further strengthen its functions as one of the Group’s business units so
as to improve the efficiency in organizational operation and enhance its corporate value.
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 withthe restructuring 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.
Disclaimer
 The target values contained in the Medium-term Management Plan and presented inthis document are not forecasts; rather they are only intended to show the directions of
the goals we aim to achieve.
 The information provided in this document contains some “forward-lookingstatements”. These forward-looking statements are based on the judgments of theCompany derived from the information available to us at this time, and include known
and unknown risks and uncertain elements. Accordingly, the actual results may differ
materially from these statements due to a variety of factors.
 These risks and uncertainties include general economic conditions in Japan andworldwide, such as general conditions in the industry and markets, interest rates andcurrency exchange rate fluctuations. The risks and uncertainties exist in forward-looking

statements relating to products in particular. These product-related risks anduncertainties include, but are not limited to, technological advancements, granting ofpatents to our competitors, completion of clinical trials, claims or concerns relating tosafety or efficacy of products, acquisition of approval from regulatory authorities, reformof health insurance systems inside and outside Japan, trends toward the containment ofhealth care cost, government law and regulations that affect the Company’s businessinside and outside Japan, and issues pertaining to development of new products.
 Approved products contain risks relating to manufacturing and marketing which
include, but not are limited to, situations in which the Company may face deficiencies inmanufacturing capacity needed to meet demand, difficulties in securing the supplies ofraw materials, and demand not created in markets.
 We do not intend to, and assume no obligation to, update or modify any
forward-looking statements even if such updating or modification is desirable due to theemergence of new information, future events or other reasons.
 The information contained in this document regarding pharmaceutical products(including those which are being developed) is not intended to act as a promotion oradvertisement, or to provide medical advice.