Summary of 2nd Quarter Financial Results for year ended March 31, 2011
(Japan GAAP) (Unaudited)
October 29, 2010
Company name:
Stock exchange listings (Section):
Securities code number:
URL:
Representative:

Mitsubishi Tanabe Pharma Corporation
Tokyo, Osaka (First Sections)4508

㪿㫋㫋㫇㪑㪆㪆㫎㫎㫎㪅㫄㫋㪄㫇㪿㪸㫉㫄㪸㪅㪺㫆㪅㫁㫇㪆Name: Michihiro Tsuchiya
Title: President and Representative Director
Name: Yoshihisa Sasou
Title: General Manager, Corporate Communications Department
Telephone: (06) 6205-5211

For further information, please contact:

Planned date of filing of quarterly securities report: November 5, 2010
Planned date of start of dividend payments: December 1, 2010
Provision of supplementary explanatory materials for quarterly results: Yes
Quarterly results presentation: Yes (for institutional investors and investment analysts)
Note; Amounts less than > 1 million have been rounded.

1. Results for 2nd Quarter (April 1, 2010 to September 30, 2010 䋩(1) Consolidated Business Results
Net sales
2nd Quarter of
Fiscal 2010
2nd Quarter of
Fiscal 2009

Operating income% change

Yen million% change

Yen million% change

204,684

3.3

40,15546.3

40,47345.0

198,239(3.9)

27,456(19.4)

27,910(20.6)Net income
per share

Net income
per share(diluted)

Net income

2nd Quarter of
Fiscal 2010
2nd Quarter of
Fiscal 2009

Ordinary income

Yen million

Yen million% change

Yen

Yen

22,704

67.5

40.46

-

13,552(17.3)

24.15-(Note) Percentage changes in the above list show change in comparison with the previous 2nd quarter.

(2) Consolidated Financial Position
Total assets

Net assets

Yen million

Equity ratio

Yen million

810,923
687,942796,858
676,813(Note)䇭Shareholders' equity䇭 >681,992 million䇭䇭(>670,470 million in fiscal 2009)30-Sep-10
31-Mar-10

2. Dividends
Dividends per share
For the year
Year-end
Yen
Yen
Yen
Yen
14.00
14.00
28.00
14.00
14.00
28.00

(Record date) 1st Quarter 2nd Quarter 3rd Quarter

Yen
Fiscal 2009
Fiscal 2010
Fiscal 2010
(projected)(Note) Revision to dividend forecast in the quarter under review: No

Net assets per share
%

Yen

84.1
84.1

1,215.47
1,194.79

3. Forecasts for Fiscal 2010 (April 1, 2010 to March 31, 2011)

Full year

Net sales
Operating income
Ordinary income
Yen million% change Yen million% change Yen million% change
401,000(0.9)
67,0009.0
67,0008.7

Net income
per share
Yen million% change
Yen
Full year
35,50017.3
63.26(Note) Revision to consolidated results forecast in the quarter under review: No
Net income

4. Other(For details䋬 please see "Others" on page 5 of the summary of 2nd quarter financial results (supplement))(1) Significant change involving subsidiaries during the period: No
Note: Indicates whether or not there was any change in designated subsidiaries accompanying changes in the scopeof consolidation in the quarter under review.
(2) Application of simplified accounting methods or of special accounting methods in the preparation of quarterly
financial statements: Yes
Note: Indicates whether or not the Company applied simplified accounting methods or special accounting methods inthe preparation of quarterly financial statements.
(3) Changes in accounting principles, procedures, method of presentation
1. Change accompanying revision of accounting standards: Yes
2. Other changes: No
Note: Indicates whether or not there were any changes in accounting principles, procedures, or method of presentation
associated with the preparation of the quarterly consolidated financial statements.
(Items noted in the Changes in the Basis of Presenting Quarterly Consolidated Financial Statements section)(4) Number of shares issued (common stock)
1. Number of shares issued at the end of the period (including treasury stock)
2nd Quarter of fiscal 2010
561,417,916 sharesFiscal 2009
2. Number of shares of treasury stock at the end of the period
2nd Quarter of fiscal 2010
324,358 sharesFiscal 2009

561,417,916 shares

256,440 shares

3. Average number of shares of during the period (six months)
2nd Quarter of fiscal 2010
561,147,957 shares
2nd Quarter of fiscal 2009 561,163,283 shares*Note regarding implementation of quarterly review procedures
At the time when this summary of 2nd quarter financial results was released, the review procedures were in progress
for the quarterly financial statements in accordance with the Financial Instruments and Exchange Act.

*Explanation regarding the appropriate use of results forecasts and other matters of special note
In these materials, forecasts of results and other statements about the future are forward-looking statements based ona number of assumptions and beliefs in light of the information available to management as of the date of releaseof the materials and are subject to risks and uncertainties. Actual financial results may differ materially from these
forecasts depending on a number of important factors, including economic conditions in the Company's fields of business.
For matters related to results forecasts, please see page 4 .

Contents of supplement㩷䋱䋮Qualitative Information, Financial Statements, etc. 㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㪈㩷㩿䋱㪀 Qualitative information about consolidated results of operations 㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㪈㩷㩿䋲㪀 Qualitative information about consolidated financial position 㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㪊㩷㩿䋳㪀 Qualitative information about consolidated results forecasts㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㪋㩷䋲䋮Other 㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㪌㩷㩿䋱㪀 Significant changes involving subsidiaries during the period㩷
(changes in designated subsidiaries accompanying changes in the scope of consolidation) 㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㪌㩷㩿䋲㪀 Application of simplified accounting methods or of special accounting methods 㩷in the preparation of quarterly financial statements 㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㪌㩷㩿䋳㪀 Changes in accounting principles, procedures, method of presentation associated㩷
with the preparation of the quarterly consolidated financial statements 㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㪌㩷䋳䋮Consolidated Financial Statements 㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㪍㩷㩿䋱㪀 Consolidated balance sheets㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㪍㩷㩿䋲㪀 Consolidated statements of income (first six months)㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㪏㩷㩿䋳㪀 Consolidated statements of cash flows 㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㪐㩷㩿䋴㪀 Note regarding going concern assumption㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭 㪈㪇㩷(䋵)㩷 㩷 Segment Information 㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭 㪈㪇㩷(䋶)㩷 㩷 Note regarding substantial change in shareholders' equity㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭㫭 㪈㪈㩷㧝㧚[Qualitative Information, Financial Statements, etc. ](1) Qualitative information about consolidated results of operations
In the pharmaceutical industry, NHI drug prices were revised in April 2010, and a system offering a
pricing premium for newly developed drugs was introduced on a trial basis. Consequently, NHI drug
prices were reduced by an industrywide average of 5.75%, and additional price cuts were implemented
for long-term listed drugs. Moreover, with such factors as intensified competition among companies
and further measures to promote the use of generic drugs, market conditions remain challenging.
In June, the Company and its consolidated subsidiary Bipha Corporation submitted business
improvements plans to the Minister of Health, Labour and Welfare as to the administrative action,
received in April, in regard to a violation of the Pharmaceutical Affairs Act. Under the business
improvement plans, the entire Group will work to implement thorough recurrence prevention
measures and to do its utmost to regain the trust of society.

Consolidated results in the first six months of the fiscal year ended March 31, 2011 (April 1, 2010 to
September 30, 2010) were as follows.
(millions of yen)First six months ofFirst six months of

Increase/previous fiscal year

current fiscal year

decrease

Net Sales

198,239

204,684

6,445

3.3

Cost of sales

71,00577,835

6,830

9.6

35.8%

38.0%

Gross profit

127,234

126,849

(385)

(0.3)

SG&A expenses

99,77886,694(13,084)(13.1)

Operating Income

27,45640,155

12,699

46.3

454

318

(136)

27,91040,473

12,563(4,591)(3,295)

1,296

13,552

22,704

9,152

Cost of sales ratio

Non-operating
income/loss
Ordinary Income
Extraordinary
income/loss
Net Income% change

45.0

67.5

䇼Net sales䇽Net sales increased 3.3%, or ¥6.4 billion, year-on-year, to ¥204.6 billion.
(millions of yen)First six months ofFirst six months of

Increase/previous fiscal year

current fiscal year

decrease

Pharmaceuticals

193,435

199,836

6,401

3.3

Domestic ethical drugs

172,100

179,144

7,044

4.1

Overseas ethical drugs

11,332

11,293

(39)

(0.3)

OTC products

2,660

2,871

211

7.9

Others

7,343

6,528

(815)

(11.1)

4,804

4,848

44

0.9

Others% change䊶 In the pharmaceuticals segment, net sales were ¥199.8 billion, up 3.3%, or ¥6.4 billion,
year-on-year.

䊶 The domestic sales of ethical drugs were up 4.1%, or 7.0 billion, year-on-year. Although NHI
drug prices were revised in April 2010, favorable sales were recorded by such products as
Remicade, an anti-TNF monoclonal antibody; Radicut, a cerebral neuroprotectant; Maintate, aselective 1 antagonist; and Talion, a treatment for allergic disorders. In addition, higher sales
were recorded by generic drugs as well as by JEBIK V, a freeze-dried, cell-culture derived
Japanese encephalitis vaccine, which the government reinstated as a recommended vaccinationin April 2010.

䊶 Sales of others in pharmaceuticals were down 11.1%, or ¥0.8 billion, year-on-year, due to therecording in the previous fiscal year of one-time revenue from a licensing agreement.

䇼Operating income䇽
Operating income increased 46.3%, or ¥12.6 billion, year-on-year, to ¥40.1 billion.

䊶 Net sales rose ¥6.4 billion. On the other hand, gross profit declined slightly, to ¥126.8 billion
due to the influence of NHI drug price revisions and other factors. The cost of sales ratio
worsened by 2.2 percentage points, to 38.0%.

䊶 Accompanying a change in a licensing contract, the Company made a one-time payment of about¥10.0 billion in the previous fiscal year. In the period under review, R&D expenses decreased
substantially year-on-year, and labor costs were down due to such factors as lower retirement
benefits expense. In addition, sales promotion and other expenses also decreased. As a result,
SG&A expenses were down 13.1%, or ¥13.0 billion, to ¥86.6 billion. R&D expenses were ¥32.4
billion, accounting for 15.9% of net sales.

䇼Ordinary income and net income䇽
Ordinary income was up 45.0%, or ¥12.5 billion, year-on-year, to ¥40.4 billion, and net income was up
67.5%, or ¥9.1 billion, year-on-year, to ¥22.7 billion.

䊶 Extraordinary losses were ¥3.7 billion, including loss on valuation of investment in securities of¥2.4 billion and loss related to business suspension for Medway injection recombinant humanserum albumin preparation of ¥0.7 billion. In the previous fiscal year, the Company recorded
extraordinary losses of ¥4.6 billion, such as impairment loss accompanying head officerelocation, restructuring expenses, and loss related to business suspension in regard to Medway
injection. Consequently, in the period under review, the net balance of extraordinary items
improved by ¥1.2 billion year-on-year.

(2) Qualitative information about consolidated financial position
䇼Balance sheets䇽(millions of yen)
End of 2nd quarterEnd of previous fiscal year

Increase/(End of September 2010)(End of March 2010)

decrease

Current assets

365,636

344,249

21,387

Fixed assets

445,287452,609(7,322)

Total assets

810,923

796,858

14,065

Liabilities

122,981

120,045

2,936

Net assets

687,942

676,813

11,129810,923

796,858

14,065

Total liabilities
and net assets

Total assets at the end of the second quarter were ¥810.9 billion, an increase of ¥14.0 billion from theend of the previous fiscal year. Major factors causing changes in the balance sheet in comparison withthe previous year-end were as follows.

䊶 Marketable securities and inventories increased. Consequently, total current assets were up¥21.3 billion, to ¥365.6 billion.

䊶 Fixed assets were down ¥7.3 billion from the previous fiscal year-end, to ¥445.2 billion, as
property, plant and equipment and intangible fixed assets including goodwill decreased by thedepreciation and the amortization.

䊶 Notes and accounts payable-trade, and income taxes payable increased. On the other hand,accounts payable-other and reserve for HCV litigation declined. Consequently, total liabilities
were up by ¥2.9 billion, to ¥122.9 billion.

䊶 Total net assets were up by ¥11.1 billion, to ¥687.9 billion. Net income was ¥22.7 billion, anddividends paid totaled ¥7.8 billion. As a result, retained earnings increased ¥14.8 billion. In
addition, total valuation and translation adjustments declined by ¥3.2 billion. The equity ratio
was 84.1%, compared with 84.1% a year earlier.

䇼Cash flows䇽(millions of yen)First six months ofFirst six months of

Increase/previous fiscal year

current fiscal year

decrease

Operating activities

2,846

32,90030,054

Investing activities(37,736)(24,878)

12,858Financing activities(9,002)(7,784)

1,218(43,373)(465)

42,908At beginning of year

116,903

62,958(53,945)

At end of period

73,72062,557(11,163)

Change in cash and cash
equivalents

Net decrease in cash and cash equivalents was ¥0.4 billion, and the balance of cash and cash
equivalents at the end of the period under review was ¥62.5 billion.

䊶 Net cash provided by operating activities was ¥32.9 billion. Cash inflows included income
before income taxes and minority interests of ¥37.1 billion, depreciation and amortization of¥6.0 billion, and amortization of goodwill of ¥5.0 billion, and increase in notes and accounts
payable-trade of ¥9.2 billion, while cash outflows included income taxes paid of ¥10.3 billion,
increase in inventories of ¥4.1 billion, decrease in reserve for HCV litigation of ¥3.2 billion, anddecrease in accounts payable-other of ¥6.1 billion.

䊶 Net cash used in investing activities was ¥24.8 billion, due in part to purchase of marketablesecurities and purchase of investment in securities for investment purposes.

䊶 Net cash used in financing activities was ¥7.7 billion, due in part to dividends paid of ¥7.8
billion.

(3) Qualitative information about consolidated results forecasts
There are no revisions to the consolidated results forecasts that were announced on October 4, 2010.
Consolidated results forecasts for current fiscal year (released on October 4, 2010)(millions of yen)
Results in previous

Forecast for current

Increase/

fiscal year

fiscal year

decrease% change

Net Sales

404,747

401,000(3,747)(0.9)

Operating Income

61,47567,0005,525

9.0

Ordinary Income

61,64967,0005,351

8.7

Net Income

30,25335,500

5,247

17.3



2. Other(1) Significant changes involving subsidiaries during the period (changes in designatedsubsidiaries accompanying changes in the scope of consolidation):
Not applicable.

(2) Application of simplified accounting methods or of special accounting methods in the
preparation of quarterly financial statements:
࡮Method of calculation of income taxes, deferred tax assets, and deferred tax liabilities
The calculation of income tax payments, deferred tax assets, and deferred tax liabilities isbased on the sum of important adjustment and tax credit items.
In regard to judgments about the recoverability of deferred tax assets, in the event that there
are no marked changes in the management environment, etc., since the end of the previous
fiscal year and there are no marked changes in the occurrence of temporary differences, thejudgments utilize a method based on the future results forecasts used in the previous
consolidated settlement of accounts and on tax planning. In the event that there are marked
changes in the management environment, etc., since the end of the previous fiscal year or
there are marked changes in the occurrence of temporary differences, the judgements utilize
the a method based on the future results forecasts used in the previous consolidated
settlement of accounts and on tax planning as well as the influence of the marked changes.

(3) Changes in accounting principles, procedures, method of presentation associated with the
preparation of the quarterly consolidated financial statements:
࡮Application of Accounting Standards for Asset Retirement Obligations
From the first quarter, the Company applies "Accounting Standards for Asset Retirement
Obligations" (ASBJ Statement No. 18, March 31, 2008) and “Guidance on AccountingStandards for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008). Thischange will not have a significant effect on results.

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(millions of yen)

As of
September 30, 2010
AmountYear
Accounts

As ofMarch 31, 2010
Amount䇭Assets
䇭䇭Current assets
Cash and time deposits
Notes and accounts receivable-tradeMarketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deposits
Deferred income taxes
Other
Allowance for doubtful receivables
Total current assets

24,922
126,861
80,56855,574
1,130
20,45339,077
12,1084,980(37)
365,636

22,792
126,227
59,726
52,774
1,298
19,094
46,271
11,3944,714(41)344,249

39,682
16,75841,35918,932

䇭䇭Fixed assets
Property, plant and equipment
䇭Buildings and structures, net
䇭Machinery, equipment and vehicles, net
䇭Tools, furniture and fixtures, net

3,951

4,489

䇭Land

51,08950,931

䇭Lease assets, net

27
3,632
115,13931
1,476
117,218

120,758
3,683
124,441

125,765
3,849
129,614䇭Investment in securities

139,474

139,133

䇭Deferred income taxes

13,57838,625
14,07014,30036,73015,658(40)
205,707445,287
810,923(44)
205,777452,609796,858

䇭Construction in progress䇭Total property, plant and equipment
Intangible fixed assets
䇭Goodwill䇭Other䇭Total intangible fixed assets
Investments and other assets

䇭Prepaid pension expenses
䇭Other䇭Allowance for doubtful receivables
䇭Total investments and other assets
Total fixed assets
䇭Total assets(millions of yen)

As of
September 30, 2010
AmountYear
Accounts

As ofMarch 31, 2010
Amount䇭Liabilities
䇭䇭Current liabilities
Notes and accounts payable-trade

36,40027,557

Short-term loans
Current maturities of long-term loans

2,610
15

2,410
30

Accounts payable-other

13,592

20,202

Income taxes payable

12,95811,080Reserve for employees' bonuses

11,454

11,155

142

172

Other

6,580

5,161

Total current liabilities

83,751

77,767

Deferred income taxes

11,478

11,267

Accrued retirement benefits for employees

12,49913,159Other reserves

䇭䇭Long-term liabilities

Accrued retirement benefits for directors andcorporate auditors

5

4

Reserve for health management allowances for
HIV compensation

1,627

1,627

Reserve for health management allowances for
SMON compensation

3,914

4,205

Reserve for HCV litigation

7,480

10,689

Other

2,227

1,327

Total long-term liabilities

39,23042,278

Total liabilities

122,981

120,045

䇭Net assets
Shareholders' equity
Common stock

50,00050,000Capital surplus

451,186

451,185

Retained earnings

194,257

179,409

(367)

(277)

695,076

680,317

Unrealized holding gains on securities(4,367)(3,218)Deferred (losses) gains on hedges(1,503)(378)

Translation adjustments(7,214)(6,251)

Total valuation and translation adjustments

Treasury stock, at cost
Total shareholders' equity
㩷Valuation and translation adjustments(13,084)(9,847)

㩷Minority interests

5,950

6,343

㩷Total net assets

687,942
810,923

676,813796,858

䇭Total liabilities and net assets(2) Consolidated Statements of Income(millions of yen)Year
Accounts
䇭Net sales
䇭Cost of sales
䇭Gross profit

April 1, 2009 -April 1, 2010 -September 30, 2009

September 30, 2010

AmountAmount198,239
71,005
127,234

204,684
77,835
126,849

1,450
5,629
13,777
6,017
2,496
839
44,567
5,067
19,936
99,77827,456

1,363
5,312
13,693
6,013
1,834
1
871
32,492
5,072
20,04386,69440,155

932
434
83
358
1,807

801
473
468
1,742

16
233
233
161
710
1,353
27,910

7
34
263
213
175
158
574
1,424
40,473

77
77

277
179
456

263
1,699
528
1,824
354
4,668
23,3199,923
589
10,512
12,807(745)
13,552

2,426
737
448
140
3,751
37,17812,892
1,759
14,651
22,527(177)
22,704

䇭Selling, general and administrative expenses
Advertising expenses
Sales promotion expenses
Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Provision for directors' retirement benefits
Depreciation and amortization
Research and development expenses
Amortization of goodwill
Other
Total selling, general and administrative expenses
䇭Operating income
䇭Non-operating income
Interest income
Dividend income
Equity in earnings of affiliates
Other
Total non-operating income
䇭Non-operating expenses
Interest expense
Equity in losses of affiliates
Foreign exchange loss
Taxes and dues
Loss on disposal of property, plant and equipment
Donations
Other
Total non-operating expenses
䇭Ordinary income
䇭Extraordinary income
Gain on sales of property, plant and equipment
Reversal of past year patent royalties
Gain on sales of investment in securities
Total extraordinary income
䇭Extraordinary loss
Loss on valuation of investment in securities
Loss related to business suspension
Special retirement expenses
Restructuring expenses
Impairment loss
Other
Total extraordinary losses
䇭Income before income taxes and minority interests
䇭Income taxes-current
䇭Income taxes-deferred䇭Total income taxes
䇭Income before minority interests
䇭Minority interests
䇭Net income(3) Consolidated Statements of Cash Flows(millions of yen)

April 1, 2009 September 30, 2009Year
Accounts

April 1, 2010 September 30, 2010

Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in accrued retirement benefits for employees
Decrease (increase) in prepaid pension expenses
Increase (decrease) in allowance for doubtful receivables
Increase (decrease) in reserve for HCV litigation
Interest and dividend income
Interest expense
Loss (gain) on sales and disposal of fixed assets
Loss (gain) on sales of investment in securities
Loss (gain) on devaluation of investment in securities
Equity in (earnings) losses of affiliates
Decrease (increase) in notes and accounts receivable, trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable, trade
Increase (decrease) in accounts payable, other
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidy received
Income taxes paid
Net cash provided by (used in) operating activities

23,319
6,329
1,824
5,067
(545)
(266)
(3)
(10,840)(1,366)
16
172
(77)
263
(83)
(4,349)(490)
1,901(3,177)(1,564)
16,131
1,385
(17)
400
(15,053)
2,846

37,178
6,017
5,072
(651)
(1,895)(2)(3,209)(1,274)
7
(182)
2,426
34
(942)
(4,148)9,215(6,171)
363
41,8381,390(6)(10,322)
32,900(29,480)
15,134
(978)
919
(636)
(3,827)12(1,170)(20,300)
1,521(38,918)
43,009(8,510)
9,121
(548)
569
(4,402)467(365)(28,504)
3,162

511
558
(37,736)

41(24,878)

(412)
(698)
(7,856)(36)(9,002)
519(43,373)
116,903204(15)(7,856)(117)(7,784)(703)(465)
62,958190

573,72059
62,557

Cash flows from investing activities:
Purchase of marketable securities
Proceeds from sales and redemption of marketable securities
Increase in time deposits
Decrease in time deposits
Increase in long-term deposits
Decrease in long-term deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible fixed assets
Purchase of investment in securities
Proceeds from sales and redemption of investment in securities
Proceeds from sales of subsidiaries' shares resulting inconsolidation scope change
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Increase (decrease) in short-term debt, net
Repayments of long-term debt
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period(4) Note regarding going concern assumption
Not applicable.

(5) Segment Information
Previous fiscal year (April 1, 2009 - September 30, 2009)
1. Segment information by business segment
Since net sales and operating income from the pharmaceuticals segment account for more than
90% of the consolidated total net sales and operating income, the disclosure of segment
information by type of business has been omitted.

2. Segment information by geographical area
Since net sales outside Japan of all segments constituted less than 10% of the consolidated
totals, the disclosure of geographical segment information has been omitted.

3. Overseas sales(millions of yen)Overseas sales

Consolidated net sales

Rate of overseas sales toconsolidated net sales

13,495

198,239

6.8%(Notes)1. Overseas sales include export sales of the Company and its domestic subsidiaries and salesof its foreign consolidated subsidiaries other than exports to Japan.
2. Since overseas sales of each segment constituted less than 10% of the consolidated totals forthe period, the disclosure of overseas sales by region has been omitted.

Current fiscal year (April 1, 2010 - September 30, 2010)
1. Overview of reportable segments
The Company mainly conducts R&D, manufacturing, purchasing, and sales of pharmaceuticals.
And the "pharmaceuticals" segment is the Company’s reportable segment.
In the pharmaceuticals segment, the Company conducts business activities of ethical drugs andOTC products in Japan and overseas.

2. Information regarding sales and profit/loss for each reportable segment
The Company’s reportable segments consist of only "pharmaceuticals" segment, and as a result
the disclosure has been omitted.

3. Information regarding impairment loss and goodwill for each reportable segment
Not applicable.



(Additional information)
From the first quarter, the Company applies "Accounting Standard for Disclosures about
Segments of an Enterprise and Related Information" (ASBJ Statement No. 17, March 27, 2009)and "Guidance on Accounting Standard for Disclosures about Segments of an Enterprise andRelated Information" (ASBJ Guidance No.20, March 21, 2008).

(6) Note regarding substantial change in shareholders' equity
Not applicable.

