Merrill Lynch

Global Pharmaceutical, Biotechnology & Medical
Device Conference 2008

February 6, 20081

Forward Looking 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 safetyand 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
1. Robust Performance with Double-digit
Growth
2. Completion of MGI PHARMA Acquisition
3. Strengthening of Oncology Franchise
4. Dividend Policy

31. Robust Performancewith Double-digit Growth4

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

Net Income

500.8
81.9
418.9
78.9
256.1
83.8
87.8
55.8

EPS (yen)

195.8

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

%
100.0
16.4
83.6
15.8
51.1
16.7
17.5
11.2

Apr-Dec 2007
Results

559.6
83.5
476.0
99.6
283.9
92.5
96.3
63.5
223.4

Global Aricept Sales: 219.1 B yen(120%)
Global AcipHex/Pariet Sales: 139.9 B yen(107%)
Net Sales in Japan: 246.5 B yen(110%)

YOY(%)

Increase(Decrease)

100.0

112

58.8

14.9

102

1.6

85.1

114

57.2

17.8

126

20.7

50.7

111

27.8

16.5

110

8.7

17.2

110

8.5

11.4

114

7.7

114

27.5%

5

Performance of Eisai Inc.
(millions dollars, %)Apr-Dec 2006
Results

Apr-Dec 2007%

Results%

YOY(%)

Increase(Decrease)

Net Revenue

1,904

100.0

2,156

100.0

113

251

Aricept®

985

51.7

1,173

54.4

119

187

AcipHex®

816

42.8

848

39.3

104

33

Fragmin®

48

2.5

51

2.4

105

24 Cancer Products(ONTAK® and others)

40.2

41

1.9

1044

37

Operating Income

172

9.0

154

7.290(17)Net Income

124

6.5

107

4.986(18)454

23.8555

25.8122101

Operating Income(Pre-royalty deduction)6

2. Completion of
MGI PHARMA Acquisition

7

Completion of
MGI PHARMA Acquisition• Overview of the Acquisition– MGI PHARMA became a wholly-owned subsidiary ofEisai Corporation of North America through a shortform merger on January 28, 2008
– $41 per share, total of approx. $3.9 billion– Acquired 76,494,076 MGI PHARMA shares,
representing over 93.8% of the outstanding shares ofMGI PHARMA8Strategic Goals of
MGI PHARMA Acquisition
1.

Enhance Eisai’s commercial infrastructure in the U.S., themost important market where the largest pharmaceuticalcluster is formed

2.

Significantly strengthen global oncology businessfoundation and franchise3.

Increase the likelihood of achieving the Dramatic Leap
Plan with sales of 1 trillion yen and operating income of
200 billion yen in FY2011

4.

Help sustain continuous growth beyond 2012 along within-house product launches
9Goal is to Swiftly Integrate MGI PHARMA
while Maintaining and Expanding its Value• Reached retention agreement with MGI PHARMA’s
key management• Integration Steering Committee and various
integration teams are working to ensure a quick
and seamless integration• Major integration activities will be completed by theend of May, 2008

10Enhance Commercial Infrastructureof Eisai Inc. in the U.S.
Oncology / Institutional Care

Oncology
MarketingInstitutional Care
MarketingGovernment,
Reimbursement

Medical andScientific Affairs

Number of staff: approx. 400 FTE*

Oncology Sales

Institutional Care
Sales

Oncology Strategyand PlanningAloxi® CINVFragmin®
Dacogen®
Gliadel® Wafer
Product Candidates®
ONTAKCerebyx®
Oncology: E7389, E7820, MORAb-003, MORAb-009, Amolimogene, SaforisTM, etc.
®
Targretin
capsulesInstitutional Care: Aloxi® PONV, Aquavan®, E5564, AKR-501, etc.
Targretin® gel
Panretin® gel

Primary Care / Specialty

Sales
Aricept®
AcipHex®
Zonegran®
Colazal®

MarketingNumber of staff: Over 800 FTE*

Medical Affairs

Alliance Management

Product Candidates: Aquavan®, rufinamide, E2007, E5555, E2012, E6201, E3710, AS-3201, etc.
*Written in pink: marketed product*As of February 1, 2008 11

Expect Rapid Increase in
MGI PHARMA’s Profitability
In FY2007, MGI PHARMA will add net sales of $80M+ and operating income of$10M+ to Eisai (February to March)($Million)

1200

1,000-1,100

1000

900+

800

750 +600
400

07-11
CAGR 25-28%
Net Sales

550+

Operating Income

412*
270+

220+

200

300-330

100+
See below

0*: 2007 figures haven’t been audited yet

CY2007

FY2008FY2009FY2010• Aloxi® sales in 2007:
MGI adjusted operating income in CY2007
Adjusted Amortization of intangible assets
operating of marketed productsincome(8)69(107)GAAP Operating Income (46)One-time
expenses
including license
rights of AkaRxand stock option
expenses

FY2011 Quarterly sales results of MGI in 2007($ Million) Booked the record high sales in 4Q

Jan-Jun: $96M, Jul-Dec: $140M
Dacogen® sales in 2007: $121M• Further increase of sales in FY2008
expected with potential launch ofAquavan®, and approval for additional
indication & new formulation for Aloxi®
• Target of sales growth
Aloxi®: 20%+ , Dacogen ®: 30%+

140
120
100
80
60
40
20
0113
83

1Q

124

93

2Q

(Jan-Mar) (Apr-Jun)

3Q

4Q(Jul-Sep) (Oct-Dec)

12Cost Synergies($ Million)

90+100+100+

FY2010FY201160+

FY2008FY2009Reduction in public company costs
Avoidance of the need to hire additional workforce
Reviewing andoptimizing
of ofbusiness
functionsStreamlining
andoptimizing
businessfunctions• Streamlining and optimizing business functions: G&A, commercial,
R&D, etc.
• Avoidance of the requirement to hire duplicative workforce: commercial
infrastructure (sales force, marketing, medical affairs, reimbursement,etc.) and R&D (data management, CMC, preclinical research, etc.)13

Impact on Financials

Accretive to Cash EPS in FY2008($ Million)FY2007(Feb-Mar)

FY2008FY2009FY2010FY2011

MGI PHARMA Sales

80+550+750+900+1,000-1,100

MGI PHARMA Operating Income

10+100+220+270+300-330

Cost Synergies

060+90+100+100+

EBITDA

10+160+310+370+

400-430+

Interest Expense

10±60±60±60±60±

IPR&D/Amortization of Goodwill &Intangible Assets

Amount will be announced promptly
following the final settlement of accounts

Tax Savings from MGI PHARMA’s
NOL (Net Operating Loss)

Approx. 100 in total

Impact on Cash EPS-Accretive

Accretive

Accretive

Accretive

Impact on J-GAAP EPS

Dilutive

DilutiveAccretive

Accretive

Accretive*Figures do not include incremental value from synergy to sales of Eisai products
14Achieving Continuous Growth by
Utilizing Strategic Debt Financing
Permanent Financing
Bridge Loan
Raise approx. ¥400 billion
by syndicate loan

Convert to permanent loan such as
long-term loan and straight bondafter comprehensively examining
market environment and costs
within 1 year

• Pursue low-cost financing by relying on high corporate credit
rating and rich retained earnings• Seek to maintain A-credit rating since the amount of loan shouldbe manageable given our anticipated rich cash flow in the future
Decrease cost of capitalby utilizing debt

Increase ROE
by continuous growth
Aim for ROE of 16% in FY2011

Enhancing Corporate Value

15

3. Strengthening ofOncology Franchise16

Strengthen Oncology R&D
MGI PHARMA
Biologics

Kashima
Plant
API Research
Tsukuba ResearchLaboratories

DNA Vaccine
R&D

Formulation
ResearchUS

Kawashima
Plant

Japan

Formulation
ResearchUSJapan

Tsukuba
Research
Laboratories

Japan

KAN
ResearchInstitute
GenomeEisai Medical
Research
GlobalResearch Triangle
Park Facility

ClinicalDevelopment

Oncology
USEisai Research
R&D
Institute of Boston

BasicResearchMorphotek

ResearchTriangle ParkJapan

USUS

BasicResearch

MGI Guilford
Morphotek
Basic Research
Monoclonal
Antibody

Eisai ResearchInstitute of Boston

Enables Comprehensive Approaches to Oncology Research from Basic Research to Clinical Development
Number of Staff who are Researching Oncology: approx. 500
17Comprehensive Therapeutic Approaches
to Many Unmet Needs of Cancer Patients•

Small Molecules•

Antibody
Monoclonal Antibody(MORAb-003, MORAb-009, MORAb-004, MORAb-028)•

Therapeutic Vaccine
DNA Vaccine (Amolimogene, ZYC300)
Vaccine Adjuvant (E6020)•Supportive Care
Oral Mucositis (SaforisTM)
Thrombocytopenia (AKR-501)
Chemotherapy-Induced Neuropathy (GCPII inhibitor)

Contribution to Entire Spectrum of Unmet
Medical Needs in Oncology Area

Novel Anti-Mitosis (E7389, E7974)
Induction of Cell Differentiation (Dacogen®)Novel Mechanism of Action (E7070, E7107, Irofulven)
Anti-Proliferation (E6201)
Anti-Angiogenesis (E7820, E7080)
Cancer Therapy Sensitizer （GPI21016）

MGI PHARMA products are underlined 18

Rich Oncology Pipeline,
Well Balanced across All Stages
Stage

Phase I

Phase II

Phase IIIFiled

MGI PHARMA

Amolimogene

Aloxi® InjectionHPV Therapeutic DNA Vaccine

PONV

ZYC300Dacogen®

Aloxi® Oral

Cancer Therapeutic DNA Vaccine against CYP1B1

MDS (Survival data)

CINV

Dacogen®

Aquavan®

GPI21016 *Irofulven

Cancer therapy, Radiotherapy
sensitizer

Semi-synthetic Derivative ofToxin Illudin S

Acute Myeloid Leukemia

AKR-501

SaforisTM

Thrombocytopenia

Oral Mucositis

E7389 Microtubule GrowthE7389 Microtubule GrowthE7389 Microtubule Growth
Suppressor, NSCLC (combination)

E7080 VEGF receptor
tyrosine kinase inhibitor

EISAI

E7070 Cell Cycle G1 Phase
Targeting AgentE7974 Hemiasterlin TypeTubulin Polymerization Inhibitor

E7107

Suppressor
Prostate cancer, Sarcoma

Procedural Sedation forMinor Surgery/DiagnosticSuppressor, Breast cancer(2nd line & 3rd line)

E7820 Alpha-2 Integrin
Expression Inhibitor

MORAb-003 Anti Folate
Receptor Alpha mAb

MORAb-009
Anti Mesothelin mAb

RNA Splicing Modulator

E6201*
Proliferation Signal Blocker*: IND in preparation

19• Aloxi®

MGI PHARMA’s Major Products•– Long lasting 5-HT3 receptor antagonist for Chemotherapy-Induced Nausea and Vomiting (CINV) (Injection)– The only 5-HT3 receptor antagonist proven to provide superior prevention of acute and delayed CINV with a single dose,
best in class in CINV (easier dosage and administration than other major competitors)– Post-Operative Nausea and Vomiting (PONV): NDA submitted (PDUFA Action Date: March 4, 2008), oral (capsule)formulation: NDA submitted (PDUFA Action Date: August 22, 2008)– Target sales in FY2011: $550-600M
Dacogen®

•– Hypomethylating agent for Myelodysplastic Syndrome (Injection)– Broad indication in patients with MDS (All FAB subtypes of de novo and secondary MDS, previously treated & untreated,Int-1/Int-s/High risk IPSS)– Ongoing trials to expand indications include acute myeloid leukemia (AML) program, MDS survival program and alternative
dosing for outpatient treatment– Target sales in FY2011: $300-350M
Gliadel Wafer®

•– Localized delivery of carmustine (DNA/RNA alkylating agent) for malignant glioma and glioblastoma multiforme– Target sales in FY2011: $50-70M
Aquavan®
– Sedation for brief diagnostic and therapeutic procedures (Injection), including colonoscopy and bronchoscopy, whoseuse is increasing– NDA submission: September 27, 2007 (PDUFA Action Date: July 26, 2008)– Rapid onset, ease of titration and rapid clear-headed recovery, increase in number of diagnosis– Target sales in FY2011: $100M+• Amolimogene– Goal is to be the first treatment DNA vaccine in the world for cervical dysplasia– Shows activity regardless of the type of human papilloma virus (HPV) in inducing an immune response that eliminates
precancerous cells transformed by HPV– Phase II/III ongoing• AKR-501– Thrombopoietin receptor agonist for thrombocytopenia– Novel, Oral, full agonist targeting thrombopoietin receptor– Phase II ongoing20

Maximize the Potential of MGI PHARMA
Products & Pipeline
by Utilizing Eisai Global Network
MGI PHARMA’s compounds with global marketing rights
Irofulven
Chemotherapy

Aquavan®

Eisai’s ability to develop
and market globally

Procedural sedation for minor surgery/diagnostic

SaforisTM
Oral mucositis＋Amolimogene
DNA Vaccine for Cervical Dysplasia

MGI PHARMA’s Know-how
relating to oncology business

AKR-501
Thrombocytopenia

ZYC300Cancer Therapeutic DNA Vaccine Against CYP1B1

Sales & Marketing
ResearchDevelopment
ProductionGPI 21016 (PARP inhibition)
Chemotherapy, radiotherapy sensitizer

GCPII inhibitor
Chemotherapy-induced neuropathy
21

R&D Update

E7389
CancerMicrotubule
GrowthSuppressor• Promising efficacy in heavily pretreated refractory breast cancer
patients: RR: 14.1% by Investigator, 9.3% by Independent Radiologist• Potential advantage in safety profile in peripheral neuropathy• Precluded from submitting an NDA under Subpart H for 3rd line
breast cancer because FDA recently approved another drug for thesame indication• Target global submissions in FY2009 - FY2010 with Phase III survival data

• Response to FDA concerns planned for February 2008 to resume Phase I
study
Alzheimer’sDisease- Additional preclinical study in rats completed to support FDA response
Gamma-Secretase - No observed adverse effect level (NOAEL) established, recoverability
Modulator
observed, possible mechanism identified

E2012

MORAb-003 • Met with FDA regarding design for ovarian cancer pivotal study
CancerAnti-folate receptoralpha MAb- Tumor marker (CA125) was normalized in 19 / 22 cases• One step closer to Phase III study for NDA submission• Target NDA submission in FY2012
D2E7/Humira® •Changes in the Sales Scheme in Japan
Rheumatoid- One-brand name (Humira® ), one-channel (Eisai),Arthritis
two-promotion (Eisai & Abbott Japan), license hold (Abbott Japan)
Anti-TNF Antibody• Additional indications: Psoriasis, Crohn’s Disease,
Ankylosing Spondylitis, Juvenile Rheumatoid Arthritis and Ulcerative Colitis

22

Potential for Continuous Growth Beyond FY2012
Successive Launch of Major In-House Products andOncology Related Pipeline ProductsE2007

Parkinson’s disease
Neuropathic painE5564
Severe sepsis
D2E7
Rheumatoid arthritis, Psoriasis,
Crohn's disease
clevudine Hepatitis B
KES 524
Obesity management
E2012
Alzheimer’s disease®
LUNESTA Insomnia treatment
Breast cancer 2nd line, 3rd line,
Non-small cell lung cancer
E7820
Cancer (Alpha 2 integrin expressioninhibitor)
Aloxi®
PONV, Oral®
Dacogen Myelodysplastic syndrome, Acutemyelogenous leukemia (AML)®
Gliadel Wafer Implant treatment for
malignant glioma®
Aquavan Procedural sedation for minor
surgery/diagnostic
Amolimogene
DNA Vaccine for cervical dysplasia
E7389

FY2008FY2009FY2010FY2011

Dramatic Leap Plan (FY2006-2011)(Sales: 1 trillion yen, Operating Income: 200 billion yen)

E2007
E5555
AS-3201
E3210
E3710
E6201

Epilepsy, Multiple sclerosis, Migraine prophylaxis
Acute coronary syndrome
Atherothrombotic disease
Diabetic complications
Irritable bowel syndrome
Acid-related diseases/New PPI
Psoriasis

E7389
Ovarian cancer, prostate cancer, sarcoma
MORAb-003 Ovarian cancer (HumanizedMAb targets folate receptor alpha)
E7080
VEGF receptor TK inhibitor
E7974
Tubulin polymerization inhibitor
MORAb-009 Pancreatic cancer (Chimeric MAb
Targets Mesothelin)
E7107
RNA splicing modulator
TM
Oral mucositis
SaforisAKR-501 Thrombocytopenia
Irofulven
Prostate cancer (semi-synthetic derivativeof toxin Illudin S
ZYC300Cancer (CYP1B1 targeting DNA vaccine)
FY2012FY2013

FY2014FY2015FY2016(Submissiontarget)

Further Leap (FY2012-)
23

4. Dividend Policy

24Dividend Policy•• Maintain
Maintain stablestable andand continuous
continuous dividend
dividend payment
payment•• Dividend
Dividend payment
payment ofof 130
130 yenyen per
per shareshare inin
FY2007
FY2007 asas plannedplanned•• Aim
Aim toto achieve
achieve DOE
DOE 8%
8% as
as targetedtargeted inin FY2011
FY201125