27th Annual Goldman Sachs

Global Healthcare Conference
Presentation

June 13, 2006
Eisai Co., Ltd.
1

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 apply
with 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 safetyand efficacy; obtaining regulatory approvals; domestic and foreign healthcarereforms; 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Performance & Forecast(billions of yen, %)FY2005

FY2006

Results%

YOY

Forecast

100.0

113

17.4

106

82.6

114

15.5

119

51.2

114

15.9

110

16.6

112

Net Income601.3104.5
496.7
93.2
307.8
95.7
100.0
63.4

10.5

114

640.0
110.0
530.0
105.0
324.0
101.0
104.0
67.0

EPS (yen)

221.9

115

234.4

Net Sales
Cost of Sales
Gross Profit
R&D Expenses
SG&A Expenses
Operating Income
Ordinary Income%YOY

100.0

106

17.2

105

82.8

107

16.4

113

50.6

105

15.8

106

16.3

104

10.5

106
106

Currency Average Exchange Rate FY 2005; 113.31 yen/$, FY2006 (Forecast); 110.00 yen/$Japanese National Health Insurance price revision effective April 2006: Industry Average 6.7% down320 New Product Candidates
in Clinical Phase
FiledCareramTM:Immunoglobulin production inhibitor Rheumatoid arthritis
InovelonTM:Sodium channel modulator
Epilepsy
RahearaTM:Human anti-TNF-monoclonal AB
Rheumatoid arthritis
CancerPhase III E7389: Microtubule growth suppressor
Clevudine:DNA polymerase inhibitor
Chronic hepatitis B
E2007:AMPA receptor antagonist
Parkinson’ disease
KES524: 5-HT noradrenaline reuptake inhibitor Obesity management
E5564:
Endotoxin antagonist
Severe sepsis
Cervical dystonia
Phase II/III E2014: Botulinum toxin type B
AS-3201: Aldose reductase inhibitor
Diabetic neuropathy
E0167:Vitamin K2
Hepatocellular carcinoma

Phase IIPhase I

E5555:
E7070:
E7820:
E7080:
E7974:
E3210:
E6070:
E1224:
E2012:

PAR-1 antagonist
Cell cycle G1 phase targeting
Alpha 2 integrin expression inhibitor
VEGFR tyrosine kinase inhibitor
Tubulin polymerization inhibitor
Adenosine receptor antagonist
Inflammatory cytokine production
inhibitor
Ergosterol synthesis inhibitor
Gamma secretase modulator

Acute coronary syndrome
CancerCancerCancerCancerIrritable bowel syndrome
Rheumatoid arthritis
Fungal infection
Alzheimer’s disease44Approach toUnmet Medical Needs (1)• E2007: Oral AMPA Receptor Antagonist

Parkinson’s disease– Phase III studies ongoing in Europe, target NDA/MAA submission in US
and Europe in FY2007– Preparing to initiate Phase IIa studies in Japan; Plan to submit byutilizing overseas data in Japan (FY2010)
Migraine prophylaxis & Epilepsy– POC studies ongoing– Expect to complete POC studies in FY2006
Multiple sclerosis– Plan to initiate POC studies in 2nd Half FY2006• E5564: Endotoxin Antagonist
Severe sepsis– Multinational Phase III studies ongoing– Preparing Phase I studies, including Japanese participants, to be
conducted in the US– Phase III studies are planned in multinational sites, including Japan, inorder to target simultaneous submission in US, Europe and Japan inFY20095

Approach toUnmet Medical Needs (2)• E7389: Microtubule Growth Suppressor

Breast cancer– Clinical trials ongoing for 3rd line Subpart H NDA submission in US– 2nd line Phase III studies ongoing
Non small cell lung cancer (NSCLC)– Plan to initiate 1st line therapy of Phase I/II studies in 1Q FY2006
Prostate cancer– Phase II studies ongoing, plan to establish POC in FY2006
Sarcoma, ovarian cancer– Plan to initiate Phase II POC studies in 2Q FY2006• AS-3201: Aldose reductase inhibitor
Diabetic Neuropathy– Phase II/III ongoing by Dainippon Sumitomo Pharma– Eisai will conduct its Phase III study upon outcomes of End-of-Phase II
meeting to be held in FY2006

6

Approach toUnmet Medical Needs (3)• E5555: Thrombin receptor antagonist
inhibiting platelet aggregation and smooth muscle cellproliferation
Acute coronary syndrome: Prevention of major adverse cardiac events in acutecoronary syndrome (unstable angina, non-ST elevation myocardial infarction)– Confirmed safety, PK and pharmacological action in Phase I– Phase II ongoing in US and Europe– Phase I ongoing in Japan• E2012: Gamma secretase modulator
Alzheimer’s disease– IND submitted in March 2006 to US FDA– Phase I study due in 1Q FY2006– To establish Proof of Principle in Phase I by measuring beta amyloid in blood andspinal fluids• E7974: Novel tubulin polymerization inhibitor

Cancer (synthetic analog of hemiasterlin, isolated from marine sponges)– Phase I ongoing in US– New tubulin polymerization inhibitor by binding to alpha/beta-tubulin– Potential for colorectal cancer: E7974 is not pumped out by P-glycoprotein thatcauses multi-drug resistance (MDR) and P-glycoprotein occurs in high incidencewith colorectal cancer
7

Potential Market ofStrategic Drug Candidates
ProjectE2007
AMPA
receptor
antagonist

Target indication

Endotoxin
antagonist

Unit Price ofDrug Therapy

Therapydays/year

2,450$16/day

270 days

FY2007 NDA(Phase III)

Epilepsy

5,900$11/day

300 days

POC to complete inFY2006

Migraine
prophylaxis
Multiple sclerosis

65,950$5/day180 days

POC to complete in
FY2006610$100/2days

300 days

POC to start in2QFY2006

Severe sepsis

1,960$6,800/course

6 days/course

FY2009 NDA(Phase III)

Breast cancer

1,790

FY2006 subpart H
1st line Phase I/II tostart in 1QFY2006
POC to complete inFY2006
POC to start in 2Q
FY2006
POC to start in 2Q
FY2006(Stage III and IV)

NSCLC

E7389

(Stage III and IV)

430

Microtubule
growthsuppressor

Prostate cancer

1,180

Sarcoma75

Ovarian cancer

80(Stage III and IV)$2,110/cycle

4−6 cycles$2−4/day

170 days

AS-3201
Aldosereductaseinhibitor

NDA schedule& status

Parkinson’sdisease(SP and RR)

E5564

Patientpopulation(x1,000)

Diabetic neuropathy

This table is reference purposes only.
Source: Eisai

8,300

FY2009 NDA(Phase II/III)

Patient population: prevalence in US, Europe (G5) and Japan in 2005
Unit Price of Drug Therapy: based on standard therapy

8Proactive Return to Shareholders
Seek DOE 8% for FY2011 as a mid-term target
with divided payout ratio being 50%(DPS: Yen)

(DOE: %)

7150
DPS5.9

DOE

65.3
110

510050

3.7

2.4

2.529322.69043562.023623100
FY2000FY2001

FY2002

FY2003

FY2004

DOE = Dividends On Equity (ROE x Dividend Payout Ratio)

FY2005

FY2006(est)

DPS = Dividends Per Share9Financial Targets ofDramatic Leap Plan
(The 5th midterm strategic plan: FY2006-FY2011)(¥Billions, %)FY2005Results

FY2011
%

Plan%

CAGR*
05-11

Sales

601.3

100.0

1,000.0

100.0

9%R&D Expenses

93.2

15.5

200.0

20.0

14 %

Operating Income

95.7

15.9

200.0

20.0

13 %

Net Income

63.4

10.5

120.0

12.0

11 %

ROE (%)

13.016DOE (%)

5.38

EPS (yen)221.9420*CAGR: Compound Annual Growth Rate10