February 26, 2021
To whom it may concern
Company: Teijin Limited
Representative: Jun Suzuki, President and CEO
Stock code: 3401 (First Section, Tokyo Stock Exchange)
Contact: Tomoko Torii, General Manager
Investor Relations Department
TEL: +81-3-3506-4395
Notice Regarding Execution of Asset Transfer Agreement for Transfer of Japan Sales, Intellectual
Properties, and Manufacturing and Marketing Approval of Type 2 Diabetes Treatments (Nesina®,Liovel®, Inisync®, and Zafatek®)
Teijin Limited (“Teijin”) announces that it has decided that Teijin and its subsidiary Teijin Pharma Limited(Head Office: Chiyoda-ku, Tokyo; President and Representative Director: Ichiro Watanabe; hereinafter"Teijin Pharma") has entered into an asset transfer agreement (“Asset Transfer Agreement”) withTakeda Pharmaceutical Company Limited (Head Office: Chuo-ku, Osaka; President & CEO: Christophe
Weber; hereinafter "Takeda") to transfer the Japan sales of type 2 diabetes treatments manufactured
and sold by Takeda in Japan, namely Nesina® tablets 6.25 mg, 12.5 mg, 25 mg (Generic name: alogliptin
benzoate), Liovel® combination tablets HD, Liovel® combination tablets LD (Generic name: alogliptin
benzoate/ pioglitazone hydrochloride), Inisync® combination tablets (Generic name: alogliptin
benzoate/metformin hydrochloride), and Zafatek® tablets 25 mg, 50 mg, 100 mg (Generic name:trelagliptin succinate) (collectively the "Products"), to Teijin Pharma and to transfer relevant intellectual
properties (including patents) and manufacturing and marketing approvals to Teijin Pharma.
As of April 1, 2021, prior to the transfer of the manufacturing and marketing approvals, the sale of theProducts will be transferred to Teijin Pharma after the procedures stipulated in the Asset Transfer
Agreement are completed, and thereafter Teijin Pharma will be selling the Products and providing andcollecting relevant information. Once all necessary procedures with the Ministry of Health, Labour andWelfare are completed, Teijin Pharma will take over the manufacturing and marketing approvals.
1.

Reasons for Transfer of Sales and Manufacturing and Marketing Approvals
Based on its corporate philosophy of "Enhancing the Quality of Life," Teijin is working towards therealization of a sustainable society by delivering value to the society through solutions in the threefields of “Environmental Value,” “Safety, Security, and Disaster Mitigation,” and “Demographic Changeand Increased Health Consciousness,” with the aim of becoming a “Company that Supports theSociety of the Future.” On February 5, 2020, Teijin announced its Medium-Term Management Plan
for 2020-2022 “ALWAYS EVOLVING" ("Medium-Term Management Plan") and positioned the periodof the Medium-Term Management Plan as a period of “Creating Growth Platforms.” Under theMedium-Term Management Plan, Teijin is making aggressive investments in businesses that need tobe developed to become future sources of earnings, which are classified as "Strategic Focus," as wellas in businesses that are already profitable and aiming for further growth, which are classified as"Profitable Growth."
Teijin Group’s healthcare business is working to provide “Demographic Change and Increased HealthConsciousness Solutions” in Japan, which is one of the most aged society in the world. Teijin Groupis committed to maintaining and strengthening the R&D and marketing platforms and the service
network for healthcare professionals and patients established through its pharmaceuticals and homehealthcare businesses, which are positioned as "Profitable Growth." At the same time, it is aiming tobecome a comprehensive community-based healthcare provider in sectors including rehabilitation,nursing care, prevention and health promotion, which is positioned as "Strategic Focus," through suchinitiatives as deploying VitalLink, a support tool for providing a comprehensive community healthcare-1-

system, and expanding the operation of visiting nursing stations. In the area of prevention and healthpromotion, Teijin Group has started the functional food business and providing services not coveredby Japan’s health insurance system, such as lifestyle modification guidance service using applications
and monitoring devices. Teijin Group is also working on accelerating the creation of innovative medical
treatment and creating new businesses by integrating Teijin’s healthcare, materials, and engineering
technology platforms.
The Products consist of dipeptidyl peptidase-4 (DPP-4) inhibitors and its combination tablets, which
reduce blood glucose levels. They are orally taken drugs developed by Takeda and are used fortreatment of many type 2 diabetes patients in Japan and overseas. On the other hand, Teijin Grouphas been working to improve the QOL of patients with lifestyle-related diseases by providing
FEBURIC®, a hyperuricemia and gout treatment, and CPAP therapy device for the treatment of sleep
apnea syndrome. As cardiovascular and metabolic field is one of Teijin Pharma’s focus areas, being
able to take over the Products that have strong brand power will lead to maintaining and strengthening
its business platform for future business expansion. Further, the addition of these type 2 diabetes
treatments to Teijin Group’s key offerings and the strengthening of business platform will accelerate
its efforts in disease treatment, as well as the expansion of services that contribute to the preventionof lifestyle-related diseases and the reduction in progression of such diseases, which are part of the“Strategic Focus" of Teijin Group.
Based on the above, Teijin Group has decided to take over the manufacturing and marketing
approvals of the Products in Japan to aim for further growth of its healthcare business by creatingsynergies and strengthening the business platform with expanded product portfolio by acquiring theProducts.
To ensure stable delivery of the Products to patients, Teijin Group will work closely with Takeda for asmooth and efficient transfer of the sales and manufacturing and marketing approvals of the Products.
2. Overview of Transfer of Sales of Products and Manufacturing and Marketing Approvals(1) Products
Brand name
Therapeutic category
Nesina® tablets 6.25 mg
Selective DPP-4 inhibitor
Nesina® tablets 12.5 mg
Drugs for treating type 2 diabetes
Nesina® tablets 25 mg
Fixed dose combination tablets of selective DPP-4
Liovel® combination tablets HDinhibitor and thiazolidinediones®
Liovel combination tablets LDDrugs for treating type 2 diabetes
Fixed dose combination tablets of selective DPP-4
Inisync® combination tablets
inhibitor and biguanidesDrugs for treating type 2 diabetes
Zafatek® tablets 25 mg
Long-acting selective DPP-4 inhibitor
Zafatek® tablets 50 mg
Drugs for treating type 2 diabetes®
Zafatek tablets 100 mg(2) Operating results of Products
Total sales of the Products in Japan for the fiscal year ended March 2020 were approximately 30.8
billion yen.
(3) Items of assets concerning Products
Items of assets will include inventory assets concerning the Products and intangible fixed assets
such as transfer of Japan sales, intellectual properties (including patents), and manufacturing andmarketing approvals.

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The transfer price of the Products is expected to be 133 billion yen, including inventory assets, which
will be adjusted to reflect the amount of inventory assets at the time of transfer.
3. Outline of Transferee of Sales of Products and Manufacturing and Marketing Approvals(1) Name
Teijin Pharma Limited
Kasumigaseki Common Gate West Tower(2) Location
2-1, Kasumigaseki 3-chome, Chiyoda-ku, Tokyo(3) Name and title ofIchiro Watanabe, President
representative
Sales, marketing, manufacturing and research and development of(4) Business description
pharmaceuticals and medical devices(5) Paid-in capital
10 billion yen(6) Date of incorporation
April 15, 2002
(7) Major shareholder andTeijin Limited
100%shareholding ratio
Capital relationship Teijin owns 100% of shares in Teijin Pharma.
Three employees of Teijin concurrently serve as
Personnel
President, Director, and Statutory Auditor ofrelationship
Teijin Pharma and there are other employees of(8) Relationship between
Teijin who are seconded to Teijin Pharma.
Teijin and Teijin
Teijin has business transactions with TeijinTransactionalPharma
Pharma, including intellectual property
relationshipagreements and loans.
Status as a related
party

Teijin Pharma is a consolidated subsidiary of
Teijin.

(9) Operating and financial results for the past three years (standalone basis)
Fiscal year ended
March 31, 2018
March 31, 2019
Net assets
42,991 million yen
50,255 million yen
Total assets
112,117 million yen
111,734 million yen
Net sales
125,410 million yen
124,196 million yen
Operating income
13,037 million yen
14,324 million yen
Ordinary income
13,559 million yen
14,600 million yen
Net income
10,268 million yen
14,199 million yen

4. Outline of Transferor(1) Name(2) Location(3) Name and title ofrepresentative(4) Business description(5) Paid-in capital(as of Sep. 30,2020)(6) Date ofincorporation

March 31, 2020
52,507 million yen
102,364 million yen
119,366 million yen
16,511 million yen
17,135 million yen
12,477 million yen

Takeda Pharmaceutical Company Limited
1-1, Doshomachi 4-chome, Chuo-ku, Osaka
Christophe Weber, President & CEO
Research and development, manufacturing, sales and marketing, andimport/export of pharmaceutical drugs, etc.
1,668.1 billion yen
January 12, 1925
The Master Trust Bank of Japan, Ltd. (Trust Account)

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9.02%

Custody Bank of Japan, Ltd. (Trust Account)
5.53%
The Bank of New York Mellon as Depositary Bank for
Depositary Receipt Holders
4.94%(Standing Proxy: Sumitomo Mitsui Banking Corporation)
Nippon Life Insurance Company
2.24%(Standing Proxy: The Master Trust Bank of Japan, Ltd.)JP Morgan Chase Bank 385632
2.24%(7) Major shareholders(Standing Proxy: Mizuho Bank, Ltd.)and shareholding
Custody Bank of Japan, Ltd. (Trust Account 5)
2.20%
ratio
SSBTC Client Omnibus Account(as of Sep. 30,(Standing Proxy: The Hongkong and Shanghai Banking
1.59%2020)
Corporation Limited, Tokyo Branch)
JP Morgan Chase Bank 385781
1.54%(Standing Proxy: Mizuho Bank, Ltd.)State Street Bank West Client-Treaty 505234
1.52%(Standing Proxy: Mizuho Bank, Ltd.)State Street Bank and Trust Company 505001
1.30%(Standing Proxy: Mizuho Bank, Ltd.)
Capital relationship
N/A
Personnel
N/Arelationship
Teijin Pharma, Teijin’s consolidated subsidiary,
has a contract with Takeda Pharmaceuticals(8) Relationship
U.S.A., Inc., a consolidated subsidiary ofbetween Teijin andTransactionalTakeda, for the US sales of ULORIC®, aTakeda
relationshiptreatment for gout and hyperuricemia. Teijin
Pharma also had business transactions with
Takeda concerning raw materials forpharmaceuticals.
Status as a related
N/Aparty(9) Operating and financial results for the past three years
Fiscal year ended
March 31, 2018
March 31, 2019
March 31, 2020
Total equity
2,017,409 million yen
5,185,991 million yen
4,727,486 million yen
Total assets
4,106,463 million yen 13,792,773 million yen 12,821,094 million yen
Revenue
1,770,531 million yen
2,097,224 million yen
3,291,188 million yen
Operating profit
241,789 million yen
237,685 million yen
100,408 million yen
Net profit for the year
186,708 million yen
135,080 million yen
44,290 million yen

5. Timeline
Board resolution
Execution of Asset Transfer
Agreement
Transfer of sales of Products
Transfer of manufacturingand marketing approvals

February 26, 2021 (today)
February 26, 2021 (today)
April 1, 2021 (scheduled)
Scheduled after necessary procedures with the Ministry of Health,Labour and Welfare are completed

6．Future Outlook
Since the date of the transfer of sales of the Products is scheduled for the next consolidated fiscal year,
there will be no impact on Teijin's consolidated operating results for the fiscal year ending March 31,
2021. The impact of this transaction will be reflected in the operating results of the next fiscal year.

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