July 12, 2013
Press release:
Mitsubishi Tanabe Pharma Corporation

Notice regarding the acquisition of Medicago Inc.
Mitsubishi Tanabe Pharma Corporation (head office: Osaka, Japan, President and Representative Director:Michihiro Tsuchiya) announced today that Mitsubishi Tanabe Pharma and Medicago Inc. (head office: Québec,Canada, President and CEO: Andrew J. Sheldon) reached an agreement that Mitsubishi Tanabe Pharma will
acquire, together with Philip Morris Investments B.V. (head office: Bergen op Zoom, the Netherlands) which is a
subsidiary of Philip Morris International Inc. (head office: New York State, U.S., CEO: André Calantzopoulos),all of the shares of Medicago. This acquisition will be paid in cash and implemented in accordance with a Plan ofArrangement, which is a method for friendly corporate acquisitions that is available under Canadian law.

The acquisition should be completed within 50 to 75 days, after the receipt of the approval of the Medicago
shareholders’ meeting as well as court approval and any regulatory approvals. After the acquisition, Medicago will
be jointly owned by Mitsubishi Tanabe Pharma and Philip Morris Investments (shareholding ratio 60:40,respectively). The acquisition price will be CAD1.16 in cash per common share and maximum CAD179 million(Around JPY16.9 billion) in total.

* Plan of Arrangement: Under Canadian law, a method of acquisition that is implemented by the acquired company. This is a friendly method ofcompany acquisition under which the acquired company takes a leading role in implementing the procedures. The acquisition will becompleted following its approval by the Board of Directors and the shareholders of the acquired company, and court approval, and thesatisfaction of other conditions.

1. Reason for Acquisition of Shares
Under the Medium-Term Management Plan 11-15―New Value Creation―which ends in March 2016, Mitsubishi
Tanabe Pharma is working to create new pharmaceuticals that address unmet medical needs* and build a global
management foundation. Under the plan, Mitsubishi Tanabe Pharma aims to make progress in the field ofvaccines through the acquisition of new biologics technologies. Vaccines are a field in which growth is anticipatedon a global basis and are one of the fields in which Mitsubishi Tanabe Pharma is striving to implement
development in global markets.

Medicago is a biological pharmaceutical company with special strengths in R&D for new vaccines using Virus
Like Particle (VLP) technology. Medicago has proprietary technologies for the production of VLPs inside plantcells using genetic engineering and the efficient extraction and purification of those VLPs. Also, VLPs have thesame external structure as viruses without the core genetic material, so VLP vaccines are expected to offer a highlevel of immunization effectiveness. In addition, with no virus replication in the body, these vaccines also offersuperior safety. Accordingly, this promising vaccine technology is drawing widespread attention.

In September 2011, Mitsubishi Tanabe Pharma acquired 6% of Medicago’s shares and in February 2012,concluded a research collaboration agreement with Medicago regarding new vaccines using technologies for theproduction of plant-derived VLPs. The two companies have conducted joint research, such as in the rotavirus VLP
vaccine field.

Through its research collaboration with Medicago, Mitsubishi Tanabe Pharma evaluated Medicago’s VLP
technology. Consequently, Mitsubishi Tanabe Pharma decided that this technology was highly useful, that it could
be employed to manufacture efficiently a wide variety of vaccines, and that the acquisition of Medicago would
enable Mitsubishi Tanabe Pharma to further strengthen its pipeline.

Mitsubishi Tanabe Pharma will work in the R&D of a wide variety of vaccines based on Medicago’s VLP
technology and contribute to human healthcare.

Mitsubishi Tanabe Pharma will maintain its good partnership regarding vaccine business with the Research
Foundation for Microbial Diseases of Osaka University.

* Unmet medical needs: Medical needs for which there are no effective treatments or drugs and there are still no satisfactory treatments.

2. Relationship with Philip Morris Investments and Medicago

Through this acquisition, Medicago will become the joint venture company of Mitsubishi Tanabe Pharma andPhilip Morris Investments. The two shareholders intend to improve Medicago’s technology and expand
Medicago’s business so that it can supply excellent vaccines globally.

3. Management of Medicago after the transfer of shares

After this acquisition, the Board of Directors of Medicago will have five members. The chairman will benominated by Mitsubishi Tanabe Pharma, which will hold a majority of the shares of Medicago. Two of the otherfour members will be nominated by Mitsubishi Tanabe Pharma and two by Philip Morris Investments. Medicago’s
management other than the Board of Directors will remain the same.

Medicago will specialize in R&D and manufacture of VLP vaccines same like before and develop seasonal andpandemic influenza vaccines at its existing facilities in Québec and North Carolina.

4. Overview of company that will become a subsidiary (Medicago)(1) NameMedicago Inc.
(2) Location
Québec, Canada(3) Name and title of representative
President and CEO, Andrew J. Sheldon(4) Business activities:
R&D in VLP vaccines using a transient expression system in plants(5) Capital
CAD117 million(6) Date of establishment
July 17, 1997
(7) Major shareholders and shareholding ratios
Philip Morris Investments B.V. (38.5%)
Mitsubishi Tanabe Pharma Corporation (6.0%)(8) Relationship between Mitsubishi Tanabe Pharma and Medicago
Capital relationship:

The Company holds 6% of Medicago’s issued shares. There are no capital
relationships that should be noted between persons or affiliates of Mitsubishi
Tanabe Pharma and persons or affiliates of Medicago.

Personnel relationship:

There are no personnel relationships that should be noted between Mitsubishi
Tanabe Pharma and Medicago. Also, there are no personnel relationships thatshould be noted between persons or affiliates of Mitsubishi Tanabe Pharma andpersons or affiliates of Medicago.

Business relationship:

Mitsubishi Tanabe Pharma has concluded a vaccine research collaborationagreement with Medicago, and the companies are conducting researchcollaboration, such as in the rotavirus VLP vaccine field. Mitsubishi ChemicalHoldings Corporation, which is the parent company of Mitsubishi Tanabe Pharma,has concluded a collaboration agreement with Medicago regarding development ofnext-generation technology for protein production using plants, and researchcollaboration is being conducted.

Related party status:

Medicago is not a related party of Mitsubishi Tanabe Pharma. There are no persons

or affiliates of Medicago that are related parties of Mitsubishi Tanabe Pharma.
(9) Medicago’s consolidated operating results and consolidated financial position for the past three years
Unit: thousands of Canadian dollars
Accounting period

Ended December 2010

Ended December 2011

Ended December 2012

Consolidated net assets(5,158)37,754

6,925

Consolidated total assets

21,31380,39449,334(0.04 CAD)

0.15 CAD

0.03 CAD

109

187

5,540

Consolidated operating income(17,558)(21,195)(32,654)

Consolidated ordinary income(17,558)(21,195)(32,654)

Consolidated net income(16,484)(20,992)(32,654)(0.13 CAD)

(0.12 CAD)

(0.13 CAD)

N/A

N/A

N/A

Consolidated net assets per share
Consolidated net sales

Consolidated net income per share
Dividends per share5. Overview of other party in share acquisition

Medicago’s shares are listed on the Toronto stock exchanges. This acquisition will be implemented in accordancewith a Plan of Arrangement. Mitsubishi Tanabe Pharma will acquire all of Medicago’s shares (excluding shares
which Mitsubishi Tanabe Pharma and Philip Morris Investments already owned) by paying cash to the existing
shareholders.

6. Number of shares to be acquired, acquisition price, and percentage of ownership after acquisition(1) Number of shares already acquired:
15,385,000 shares(Number of voting rights: 15,385,000)(Percentage of voting rights: 6.0%)(2) Number of shares to be acquired:147,666,241 shares* (Number of voting rights: 147,666,241)(3) Acquisition price:
Medicago common stock: CAD171 million*(4) Number of shares held after transfer
163,051,241 shares* (Number of voting rights: 163,051,241)(Percentage of voting rights: 60.0%)*These numbers are based on the number of issued shares as of July 11, 2013. These numbers might increase as described below respectively
if its stock options and warrants are executed.
(2) Number of shares to be acquired: 154,505,467 shares (Maximum)(3) Acquisition price: CAD179million (Maximum)(4) Number of shares held after transfer: 169,890,467 shares (Maximum)
The percentage of voting rights after transfer (60.0%) will remain the same even if stock options and warrants are executed.

7. Schedule(1) Board of directors resolution
July 12, 2013
(2) Conclusion of arrangement agreement
July 12, 2013

(3) Completion of stock transfer
September 2013 (planned)

8. Future outlook
In regard to the influence of this acquisition on the consolidated results, Mitsubishi Tanabe Pharma will announce
the influence of this acquisition once it is verified.

(Reference)
Overview of Philip Morris International
Name: Philip Morris International Inc.
Location: New York State, U.S.
Representative's title and name: CEO, André Calantzopoulos
Lines of business: Manufacture and sale of cigarettes and other tobacco in markets outside of U.S.
Net sales: USD77,393 million (fiscal 2012)

Overview of Philip Morris Investments
Name: Philip Morris Investments B.V.
Location: Bergen op Zoom, the Netherlands
Representative’s title and name: Managing Director, J. Nuijten; Managing Director, S. Colarusso; and Managing
Director, A.A. de Jongh-Manouilova
Ownership: Philip Morris International Inc. (100%)
Lines of business: Intermediate holding company for its subsidiaries
Total assets: EUR9,747 million as of December 2011End