Merrill Lynch Global Pharmaceutical,
Biotechnology & Medical Device Conference 2007

Eisai NowFebruary 7, 2007

Safe Harbor Statement•

Materials and information provided during this presentation may contain socalled “forward-looking statements.” These statements are based on current
expectations, forecasts and assumptions that are subject to risks anduncertainties which could cause actual outcomes and results to differ materiallyfrom these statements.

•Risks and uncertainties include general industry and market conditions, andgeneral domestic and international economic conditions such as interest rateand currency exchange fluctuations. Risks and uncertainties particularly applywith respect to product-related forward-looking statements. Product risks anduncertainties include, but are not limited to, technological advances and patents
attained by competitors; challenges inherent in new product development,
including completion of clinical trials; claims and concerns about product safety
and efficacy; obtaining regulatory approvals; domestic and foreign healthcare
reforms; trends toward managed care and healthcare cost containment; andgovernmental laws and regulations affecting domestic and foreign operations.

•Also, for products that are approved, there are manufacturing and marketingrisks and uncertainties, which include, but are not limited to, inability to build
production capacity to meet demand, unavailability of raw materials, and failure
to gain market acceptance.

•The Company disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information, future eventsor otherwise.
2

Today’s Topics• Good Growth• Progressing Enriched Pipeline• Proactive Shareholders’ Return3

Consolidated Performance(9 Months)(billions yen, %)Apr-Dec 2005Results

Net Sales
Cost of Sales
Gross Margin
R&D Expenses
SG&A Expenses
Operating Income
Ordinary Income
Net Income
R&D +Operating Income

%

449.9
78.7
371.2
67.0
226.0
78.2
81.4
52.2

100.0

145.2

Apr-Dec 2006
Results%

Increase

YOY(%) (Decrease)

100.0

111

50.9

16.4

104

3.3

83.6

113

47.6

15.8

118

11.8

51.1

113

30.2

16.7

107

5.6

17.5

108

6.4

11.6

500.8
81.9
418.9
78.9
256.1
83.8
87.8
55.8

11.2

107

3.7

32.3

162.7

32.5

112

17.5

17.5
82.5
14.9
50.2
17.4
18.1

4

Sales to Customers byGeographic Area
Apr-Dec 2005

Results%(billions yen, %)Apr-Dec 2006

Results%

YOY (%)

Increase(Decrease)

Global Sales
JapanNorth America

449.9 100.0
220.8 49.1
183.7 40.8

500.8 100.0
223.9 44.7
220.1 44.0

111

50.9

101

3.1

120

36.4

Europe

32.9

7.3

40.8

8.2

124

8.0

Asia & Others

12.6

2.8

15.9

3.2

127

3.4

Overseas Total

229.1

50.9

276.8

55.3

121

47.7

Aricept®

142.6

182.7

128

40.1

AcipHex®/Pariet®

114.0

130.9

115

16.95

Status of Major Projects (1)• E7389 (USAN: eribulin mesylate)： Microtubule growth suppressor(Target Subpart H NDA submission for breast cancer in 3Q FY2007)– Study for 3rd line breast cancer Subpart H ongoing (enrollment completed)– Phase III study ongoing for 2nd line
breast cancer treatment– Phase III study ongoing for 3rd line
breast cancer treatment– Prostate cancer Phase II POC study ongoing– NSCLC Phase Ib study in combination
with carboplatin ongoing– Initiated Sarcoma Phase II POC study– Phase I study ongoing in Japan

Green : MicrotubuleBlue : Chromosome6Status of Major Projects (2)DyskinesiaE2007ON time

Therapeutic Window(Target submission for Parkinson’s disease: FY2007)– Parkinson’s disease: Phase III studies ongoing in
EU and US for on schedule submission (enrollmentcompleted in one of three studies)– Migraine prophylaxis: Phase II POC study ongoing– Epilepsy: Phase II POC study ongoing– Multiple sclerosis: Phase II POC study in preparation

Plasma L-DOPA concentration• E2007 (USAN: perampanel): AMPA receptor antagonist

OFF time

Parkinsonism

Time• E5564 (INN: eritoran 4Na): Endotoxin antagonist(Target submission: FY2009 in JP, EU and US)– Phase III study ongoing for severe sepsis
Sites open and patient enrollment on schedule– Phase I study ongoing with Japanese volunteers
in the US before conducting Phase III study in Japan

Endotoxin

E5564
LipidA

Adaptor Molecules

TLR4

Cell Membrane

SevereSepsisSignal Transduction
Transcription Factor

NFkB
NucleusGene Transcription

DNA

Inflammatory
cytokines,
TNF, IL-1 etc

7New Formulation / New Indication
ProductTarget Indication

Acetylcholinesterase Inhibitor

Sustained release formulation
Transdermal patch formulation

Approved (US)
Submitted (JP & EU)
FY2009 (EU,US)
FY2009 (EU,US)

Anti-ulcer Agent(Proton Pump Inhibitor)

Extended release formulation

FY2009 (EU,US)

Severe Alzheimer’s disease

Aricept®
AcipHex® /Pariet®

[Filing]

Submission
TargetOTC

FY2007 (US)NME Progresses in Japan

T-614

Suppression of lymphocyte
proliferation, immunoglobulin andinflammatory cytokines production

Rheumatoid arthritis

Submitted in Sept.
2003

D2E7

Fully human anti-TNF-alphamonoclonal antibody

Rheumatoid arthritis

Submitted in Dec. 2005

E2014

Botulinum toxin type B

Cervical dystonia

Submitted in Dec. 2006

Fully human anti-TNF- alphamonoclonal antibodyPsoriasis

Plan to submit in
FY2007

Central acting serotonin &noradrenaline reuptake inhibitor

Obesity management

Plan to submit in
FY2007[Filings planned in FY2007]
D2E7
KES524

E0167 (menatetrenone for recurrence of hepatocellular carcinoma) clinical study has been discontinued
8

New Molecular Entity Pipeline
Area

Project

Mode of Action

Target Indication

rufinamide

Na+ channel modulator

Lennox-GastautSyndrome (LGS)INOVELON ®

Neuroscience

E2007

AMPA receptor antagonist

AS-3201
E0302

Aldose reductase inhibitor

E2012

Gamma secretase modulator

MecobalaminOncologyE7820

Alpha 2 integrin expression inhibitor

E7070

Cell cycle G1 phase targeting agent

E7080

VEGF receptor tyrosine kinase inhibitor

E7974

Hemiasterlin type tubulin polymerization
inhibitor
Suppression of lymphocyte proliferation,
immunoglobulin and inflammatory
cytokines production

T-614
D2E7

CriticalCare,RA, etc.

Microtubule growth suppressor

Fully human anti-TNF-alpha monoclonal
antibody

E5564

Endotoxin antagonist

E2014

Botulinum toxin type B
Central acting serotonin & noradrenaline
reuptake inhibitor
HBV DNA polymerase inhibition

KES524
clevudine

Received marketing authorization as an orphan drug from the European Commission on January 16, 2007

Submission
TargetApproved

LGS & Epilepsy

Submitted

Parkinson’s disease

FY2007

Received an approvable letter from US FDA in September 2006; meeting planned with FDA regarding next steps
Phase III studies ongoing in EU and US for on schedule submission (enrollment completed in one of threestudies)
Migraine prophylaxis Phase II POC study ongoing
Epilepsy
Phase II POC study ongoing
Multiple sclerosis Phase II POC study in preparation
Diabetic neuropathy Phase III for diabetic neuropathy study results in review by Dainippon Sumitomo Pharma in US
Amyotrophic lateral
Phase II/III study ongoingsclerosis
Phase I study ongoing (US)
Alzheimer’s disease
Aim to establish Proof of Principle in Phase I by measuring beta amyloid in blood and spinal fluids
Breast cancer

E7389

Current Status

Prostate cancer

Studies for 3rd line Subpart H ongoing
Phase III studies ongoing for 2nd and 3rd line treatment

Phase Ib study in combination with carboplatin ongoing

Sarcoma

Initiated phase II POC study

CancerPhase I study ongoing in Japan

Cancer

FY2010FY2007(Subpart H)

Phase II POC study ongoing

NSCLC

CancerSmall cell lungcancer, pancreaticcancerCancer

FY2009Phase Ib/II study for 3rd line use in combination with cetuximab ongoing in the US

FY2011

Pursue possibility of development in combination with irinotecan

FY2010Phase I studies ongoing (Japan, EU and US)

FY2012Phase I ongoing (US)
Evaluate for treatment of colorectal cancer in which P-glycoprotein occurs in high incidence

FY2012

Rheumatoid arthritis NDA submitted in September 2003 (Japan)

Submitted

Rheumatoid arthritis NDA submitted in December 2005 (Japan)
Psoriasis
Phase II/III study ongoing

Submitted
FY2007

Crohn’s disease
Severe sepsis
Cervical dystonia

Initiated Phase II/III study
Phase III study ongoing for severe sepsis
Site open and patients enrollment on schedule
Phase I study ongoing using Japanese volunteers in the US, before conducting Phase III in Japan
Plan to submit simultaneously in the US, Europe and Japan in FY2009
NDA submitted in December 2006 (Japan)

Obesity management Phase III study ongoing
Anti-hepatitis B

Phase III study in preparation (China)
Phase II study ongoing (US, EU)
Phase I study ongoing (US)E5555

Thrombin receptor antagonist

Acute coronary
syndromes

E1224

Ergosterol synthesis inhibition

Fungal infection

Phase I study ongoing (Japan)

FY2009(Japan, USEU)

Submitted
FY2007FY2010FY2011FY2011

9Recorded
Over 30% Sales Growth in US

First and Only Full Spectrum AD Treatment• Improve call effectiveness by communicating clinical benefits across full
spectrum of Alzheimer's disease (Mild, Moderate and Severe)
Achieved the highest Share of Voice in last 3 years among all Alzheimer's
disease therapies in November 2006
• Raising awareness among caregivers by implementing DTC and educational
programs about importance of proper diagnosis and persistent treatment• Enhancement of marketing systems and promotions for the growing Long Term
Severe AD
Care market
Indication
Approved

Rx (000)

2400

Medicare PartD
Entry Start

2300

2200

2100
FY05 3Q

FY05 4Q

FY06 1Q

FY06 2Q

FY06 3Q

Source: IMS National Prescription Audit (tm) (Legacy)

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Accelerate the Development ofOncology Franchise
Top Priority in Dramatic Leap Plan

Discovery Research
Tsukuba and Boston Labs serve as basic discovery research bases for oncologyDevelopment
Global initiative taken by Eisai Global Clinical Development (Based in US)

Production
Construction started in Nov 2006 for formulation research and new production
facility in North Carolina, US for future global supply of oncology treatment
API manufacturing plant completed in Kashima Plant in Nov 2006

Product Acquisition
Four oncology products acquired from Ligand Pharmaceuticals
ONTAK®, Targretin® capsules, Targretin® gel 1%, Panretin® gel 0.1%

Sales and Marketing
The hospital-team, hoping for additional oncology-supportive indication onFragmin®, start training programs to expand into oncology market
Hospital-team and sales reps from Ligand will promote oncology products(FY2011 target: 300 oncology sales reps in US)
Acquire oncology expert and know how from Ligand Pharmaceuticals
Academic meetings, distribution, reimbursement and FDA correspondence

Better Established for Market Entry of E7389

4th Knowledge Creation Base – India
Progressing Transformation Strategy

Function

Summary

Discovery

Discover treatments for neglected disease

Clinical DataAnalysis

Global data management, biostatistics function

API / Formulation Equip process and formulation research functions andManufacturing
establish stable supply base for global market (Vizag)
Sales &Marketing

Established “Eisai Pharmaceuticals India Private Limited” in
Mumbai in Oct. 2004

Research & Mfg. Company:
Eisai Pharmatechnology & Manufacturing Pvt. Ltd
Location: Vishakhapatnam, Andhra Pradesh States
Vizag Industrial Estate
Space：
202,000 m2
Invest Amount: ¥5 billion
Employees：
130 people： Sales & Marketing
Operation:
FY2010： Research & Mfg

Vizag

12

3Q Results and Forecast for FY2006(billions yen,%)

Apr-Dec
2006

Results%

Results%

Forecast%

YOY

Forecast
RevisionsinceOct

Net Sales

601.3

100.0

500.8

100.0

668.0

100.0

111

15.0

Cost of Sales

104.5

17.4

81.9

16.4

110.0

16.5105

1.0

Gross Margin

496.7

82.6

418.9

83.6

558.0

83.5

112

14.0

R&D Expenses

93.2

15.5

78.9

15.8

107.0

16.0

115

2.0

SG&A Expenses

307.8

51.2

256.1

51.1

344.0

51.5

112

10.0

Operating Income

95.7

15.9

83.8

16.7

107.0

16.0

112

2.0

101.0

Ordinary Income

100.0

16.6

87.8

17.5

111.0

16.6

111

2.5

104.0

Net Income

63.4

10.5

55.8

11.2

70.0

10.5

110

1.5

67.0

EPS (Yen)

221.9

111

5.2

234.4

FY2005195.9

FY2006

246.4

Original
Forecastin May640.013Year-end Dividend Forecast
Up by 10 yen from May Forecast

FiscalYear

Midterm

YearendAnnual

ROE

DPR

DOE

2003

18 yen 18 yen

36 yen

12.4%

20.9%

2.6%

2004

21 yen 35 yen

56 yen

12.6%

29.0%

3.7%

2005

40 yen 50 yen

90 yen

13.0%

40.6%

5.3%

2006

55 yen 65 yen

120 yen

13.1%

48.8%

6.4%

(revised)(revised)(est.)(est.)(est.)

14