INVESTMENT FORUM
2006

December 4th, 2006
1

We Started as a Pioneer ofJapanese Bio-Venture Company
Sakuragaoka Laboratory (Started 1936)“JUVELA” (Vitamin E Pellet)

2

Codifying Our Corporate Concept
in Articles of Incorporation(Approved by General Shareholders Meeting in June 2005)

1. The Company’s corporate concept is to give first thought to patients and their families, and toincrease the benefits that health care provides. Under this concept, the Company endeavors
to become a human health care (hhc) company.
2. The Company’s mission is the enhancement of patient satisfaction. The Company believes
that revenues and earnings will be generated as a consequence of the fulfillment of themission. The Company places importance on this positive sequence of the mission and theensuing results.
3. Positioning compliance, the observance of legal and ethical standards, as a core in all
business activities, the Company strives to fulfill corporate social responsibilities.
4. The Company’s principal stakeholders are patients, customers, shareholders and employees.
The Company seeks to foster a good relationship with stakeholders and to enhance theirvalue through making the following efforts:• Satisfying unmet medical needs, ensuring stable supply of high quality products, and providing
useful information of safety and efficacy.
• Timely disclosure of corporate managerial information, enhancement of corporate value, andproactive return to shareholders.
• Ensuring stable employment, offering challenging and fulfilling duties, and providing fullopportunities for the development and enhancement of employees’ capabilities.

3

Dramatic Leap Plan
(FY2006 – 2011)

We aim to attain net sales of ¥1 trillion, R&D expensesof ¥200 billion, operating income of ¥200 billion andnet income of ¥120 billion(Billion yen, %)FY2005Results

FY2011%

Plan%

CAGR*
05-11

Net Sales

601.3

100.0

1,000.0

100.09%R&D Expenses

93.2

15.5

200.0

20.0

13 %

OperatingIncome

95.7

15.9

200.0

20.0

13 %

Net Income

63.4

10.5

120.0

12.0

11 %

ROE (%)

13.0

16

DOE (%)

5.3

8

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

4

History of Growth(Sales, R&D and Incomes)“Dramatic Leap Plan”
R&D

CAGR (06-11)
Net Sale:9%
R&D
13%
Op. Income
13%
Net Income
11%

Operating Income
Net Income
86-05 19 years CAGRNet Sales
7.6%
R&D
9.0%
Op. Income
7.4%
Net Income
13.1%(Billion Yen)

2nd (92-96)“Era ofGlobalization”

Ist (87-91)“Era of Domestic
224.3
Operation”

4th (02-05)“MillenniumPlan”

601.3

3rd (97-01）“Era of Soaring 431.7
Growth”

281.6

200.0

150.5

6.1

18.7

24.0

FY1986

30.2
15.0

34.5

FY199138.3
19.4

1,000.0

50.4

FY1996

55.0
72.7
36.5
FY2001

93.2
95.7
63.4
FY2005200.0
120.0
FY2011
Plan5

Outperform Market Growthin All Regions
Market Forecast

Dramatic Leap
PlanCAGR
FY05-11CAGR
FY05-11

Geographic Region

4%

Japan
Prescription
Pharmaceuticals

2%7%

America8%10%Europe7%21%

Asia and Others

9%

20%

Overseas Total

8%

13%

7%

9%

Total
Market Forecast: Internal estimation

6Well Balanced Sales Structureby Geographic Region
Asia
2.9
Europe7.6
NorthJapan America
42.1
47.4

Sales proportion
FY2005 (%)

Asia
6Europe
14Japan
36NorthAmerica
44

Dramatic Leap Plan Target
FY2011 (%)

36 (JP) : 44 (US) : 14 (Europe) : 6 (Asia)• Maintain double-digit growth in the largest market, US• Double the current proportion of sales in two regions:
Europe Æ 14%
Asia Æ 6%• Outperform market growth in Japan7

Growth: Recent Strategic Investments
R&D
Strategic ProductAcquisition
from Ligand Pharm.
US Production Site(RTP, NC)

2nd Phase Investment

European
Knowledge Center(Hatfield, UK)

Regional
Sales &Total
Promotion Headquarter Investment
Four
Oncology
Products$205 Mil.

Oncology
Manufacturing
Facilities

2nd Phase Investment

Research Instituteof Boston

Manufacturing$90 Mil.

Improve
Discovery
Capabilities
Improve
Discovery

China Production Site(Suzhou)
2nd Phase Investment

Development
Indian Production Site, & Global
Data
Data Analysis CenterManagement$75 Mil.
GlobalSupply Chain

Salesin UKExpandManagementFunction£100 Mil.

TripledProduction
Capacity¥2 Bil.

GlobalSupply Chain¥5 Bil.
8

Growth: Global R&D Efforts• Two Focus Areas– Integrative Neuroscience– Integrative Oncology• Four Discovery Units– Tsukuba (Japan)– KAN (Kobe, Japan)– Boston (US)– London (UK)Tsukuba Laboratories

KAN Research InstituteResearch Instituteof Boston

European Knowledge Center• One Global Clinical Team– Eisai Global Clinical Development (US)• Global R&D Management– Eisai R&D Management Company (Japan)

Eisai Global ClinicalDevelopment9New Molecular Entity Pipeline
Enriched late-stage projects
12 New Product Candidates Between Phase III Level and NDA/MAA Filing Milestone
AreaProject

Mode of Action

Target Indication

rufinamide

Na+ channel modulator

Epilepsy

E2007

AMPA receptor antagonist

Neuroscience

Parkinson’s disease

Received an approvable letter from US FDA on September 15, 2006. Plan to meet with FDA regarding future
actionPhase III study ongoing in EU and US for the submission on schedule

Migraine prophylaxis

Phase II POC study ongoing

Epilepsy

Phase II POC study ongoing

Multiple sclerosis

AS-3201
E0302
E2012

Aldose reductase inhibitor

Diabetic neuropathy

mecobalamin

Amyotrophic lateralsclerosis

Gamma secretase modulator

Alzheimer’s disease
Breast cancer

E7389

Oncology

E0167

menatetrenone

E7820
E7070
E7080

Cell cycle G1 phase targeting agent

E7974
T-614
D2E7

CriticalCare,RA, etc.

Microtubule growth suppressor

Alpha 2 integrin expression inhibitor

VEGF receptor tyrosine kinase inhibitor
Hemiasterlin type tubulin polymerization
inhibitor
Suppression of lymphocyte proliferation,
immunoglobulin and inflammatory
cytokines production
Human anti TNF-alphamonoclonal antibody

E5564Endotoxin antagonist

E2014
clevudine

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

E5555
E1224

KES524Current Status

Prostate cancer
Non small cell lungcancer
Sarcoma

Submitted
FY2007

Phase II POC study in preparation
Phase III for Diabetic Neuropathy study in progress by Dainippon Sumitomo Pharma
Plan to break code in end of 2006

FY2009Initiated Phase II/III study

FY2012Phase I study ongoing (US)To establish Proof of Principle in Phase I by measuring beta amyloid in blood and spinal fluids
Studies for 3rd line Subpart H completed 300 patients enrollment, NDA filing in 3Q of FY2007
Phase III studies ongoing for the 2nd line
Phase III studies ongoing for the 3rd line
Phase II POC study ongoing
Confirmed monotherapy to be equivalent to approved agents in 2nd line treatment in Phase IIa
Initiated Phase Ib study in combination with carboplatin
Phase II POC study in preparation

Phase I study ongoing in Japan
Recurrence ofhepatocellularPhase II/III study ongoingcarcinoma
CancerPhase Ib/II study for 3rd line in combination with cetuximab ongoing in US
Small cell lung cancer,
Evaluate
use in combination with irinotecan. Discontinued monotherapy study for gastric cancer in Japanpancreatic cancer
CancerPhase I studies ongoing (Japan, EU and US)

FY2010FY2007(Subpart H)

FY2008FY2011FY2010FY2012Phase I ongoing (US) Expected to treat 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)

SubmittedCancer

Psoriasis
Crohn’s disease
Severe sepsis
Cervical dystonia

Phase II/III study ongoing
Phase II/III study in preparation
Phase III ongoing for severe sepsis, plan to file simultaneously in US, Europe and Japan in FY2009
46 study sites (38 in North America and 8 in Europe) opened out of 250 planned sites
Phase I ongoing using Japanese volunteers in US before conducting Phase III in Japan
Phase II/III study ongoingObesity management Phase III study ongoing
Anti-hepatitis B

Phase III study in preparation (China)

Thrombin receptor antagonist

Acute coronarysyndromes

Phase II study ongoing (US, EU)

Ergosterol synthesis inhibition

Fungal infectionPhase I study ongoing (US)POC : Proof of Concept

Submission
TargetPhase I study ongoing (Japan)

FY2009FY2006
FY2007FY2010FY2011FY2011

10

Contributing to Unmet Medical Needs
E7389: Microtubule growth suppressor(Target Subpart H NDA submission
for Breast Cancer in 3Q FY2007)– Origin from a natural sea sponge (Halicondriaokadai)– E7389 blocks tubulin polymerization resulting
in microtuble growth suppression
while taxane blocks tubuline depolymerization– Good response rate in taxane refractory patients– Less neurotoxic and easy to administer due togood water solubility

E7389

Tubulin
Polymerization

Growing
microtubule

E7389

SpindlePole
Nonproductive
tubulin aggregates
Tubulin
Depolymerization

Shortening
microtubuletaxaneTarget Indication

Current Status

Submission
TargetBreast cancer•Studies for 3rd line Subpart H completed 300 patients enrollment,
NDA filing in 3Q of FY2007•Phase III studies ongoing for the 2nd line
•Phase III studies ongoing for the 3rd line

FY2007(Subpart H)

Prostate cancer

Phase II POC study ongoingNon-small celllung cancer•Confirmed monotherapy to be equivalent to approved agents in2nd line treatment in Phase IIa•Initiated Phase Ib study in combination with carboplatin

SarcomaPhase II POC study in preparation
Phase I study ongoing in Japan
11Dyskinesia

Therapeutic Window– An oral AMPA receptor antagonist accomplishedWorld’s First Proof of Concept for Parkinson’s
disease, showed clinically meaningful efficacy inOFF time reduction– Excellent safety profile and no worsening ofdyskinesia

Plasma L-DOPA concentration

E2007: AMPA receptor antagonist(Target submission for Parkinson’s
disease in FY2007)

ON timeOFF time

Parkinsonism

Time

Target IndicationCurrent Status

Parkinson’s
diseasePhase III study ongoing in EU and US for the submission onschedule

Migraineprophylaxis

Phase II POC study ongoing

Epilepsy

Phase II POC study ongoing

Multiple sclerosis

Submission
Target
FY2007

Phase II POC study in preparation
12

E5564: Endotoxin antagonist(Target submission for severe sepsis
in FY2009)– Synthetic analogue of Lipid A (toxic component ofendotoxin)– The first TLR-4 antagonist to be evaluated in thetreatment of severe sepsis– 105 mg group had 24.8% reduction of 28-day
all-cause mortality vs. placebo in higher risk
patients in Proof of Concept study– No bleeding adverse events in POC study

Endotoxin

E5564
LipidA

Adaptor Molecules

TLR4

Cell Membrane

SevereSepsisSignal Transduction
Transcription Factor

NFkB
NucleusGene Transcription

DNA

Inflammatory
cytokines,TNF, IL-1 etc

TargetIndication

Current Status

Submission
TargetSeveresepsis•Phase III ongoing for severe sepsis, plan to file simultaneously in US,
Europe and Japan in FY2009•46 study sites (38 in North America and 8 in Europe) opened out of250 planned sites•Phase I ongoing using Japanese volunteers in US, before conducting
Phase III in Japan

FY200913

AS-3201: Aldose reductase inhibitor(Target submission for Diabetic Neuropathy in FY2009)– Potent aldose reductase inhibitor suppressing sorbitol accumulation in nerve– Phase III study for diabetic neuropathy ongoing

E5555: Thrombin receptor antagonist(Target submission for Acute Coronary Syndrome in FY2010)
Bleeding– Orally active PAR-1 antagonist– Dual action of anti-platelet and smooth muscle cellproliferation inhibition– No prolongation of bleeding time
– Phase II Proof of Concept study ongoingAtherosclerosis

Thrombosis

Platelet Aggregation
Fibrin formation

Thrombin

PlateletAggregation

Monocyte
Lymphocyte
Endothelium

Adhesion

Migration

SMC
Proliferation

E2012: Gamma secretase modulator(Target submission for Alzheimer’s Disease in FY2010)– Disease modifier as 2nd generation treatment for Alzheimer's disease by modulating
gamma-secretase, an enzyme for production of beta amyloid 40/42– No effect on Notch-processing and keep normal cell differentiation intact– Plan to establish Proof of Principle in Phase I by measuring beta amyloid in bloodand spinal fluids14

Eisai’s Neurology Pipeline
Aricept® sustained release formulation,

E2012

patch formulation

Pain
Alzheimer’s
ReliefAricept®

Mild
Life-span
Cognitive
Prolongation
Impairment

DiseaseT-cellEpilepsy
Lymphoma

Zonegran®
rufinamide
E2007

AS-3201
AntiDiabetic
Angiogenesis
Neuropathy

E0302

Integrative
Integrative
Neurology
Neuroscience

Amyotrophic
Amyotrophic
LateralLateralSclerosis

Sclerosis

Kaposi's
Parkinson's
sarcoma
DiseaseMigraine
Novel
Prophylaxis
Mechanism
Multiple
Novel
Anti-Mitotic
Sclerosis

E2007

E2007

E2007
15

Eisai’s Oncology Pipeline
E7389
E7820
E7080

E0167

E7974
Pain
Novel
ReliefAnti-Mitotic
Life-span
AntiProlongation
Angiogenesis

T-cellNovel
Lymphoma
Mechanism

E7070
E7107

Integrative
Integrative
OncologyLife-span
T-cellAntiKaposi's
Oncology
Prolongation
Lymphoma

Angiogenesis

Prialt®
Fragmin®

Pain Relief
Novel
DVT

Anti-Mitotic

sarcoma

Kaposi's
Novel
Sarcoma

Mechanism

ONTAK ®
Targretin® capsules
Targretin ® gel 1%
Panretin® gel 0.1%
16

IR Policy• Strong Leadership of CEO in IR Activities– Expand IR coverage– Further focus on direct communication with shareholders• Growth & Shareholders Return– Invest in growth opportunities and return about half of net profit toshareholders– Target Dividend On Equity (DOE) level of 8% in FY2011
Dividend
On Equity
8% Level=Return
On Equity
Approx.16%

×Dividend
Payout Ratio
Approx. 50%– Flexible execution of re-purchase own shares• Timely Disclosure of ManagerialInformation“IR Prime Business Award, 2006”
17

Enriching Shareholder Return
Stable and Continuous Dividend Payment
Target DOE of approx. 8% in FY2011(DPS: Yen)

150

DPS

(DOE: %)

75.9

DOE65.3
11051003.72.42.52.6323650
29904356

210ShareBuyback

0FY2001

FY2002

FY2003

FY2004

FY2005

FY2006(est)4.59 M¥13.9 B

3.00 M¥9.2 B

4.00 M¥11.4 B

1.97 M¥6.1 B-2.00 M*¥11.0 B

*Board of Directors authorized maximum share buyback of thelesser of 4 million shares or ¥22 billion on 31st July 200618

Performance Forecast - FY2006(billion yen, %)FY2005

FY2006

Results%

Forecast

Net Sales

601.3

100.0

653.0

100.0

109

Cost of Sales

104.5

17.4

109.0

16.7

104Gross Profit

496.7

82.6544.0

83.3

110

R&D Expenses

93.2

15.5

105.0

16.1

113

SG&A Expenses

307.8

51.2

334.0

51.1

109

Operating Income

95.7

15.9

105.0

16.1

110

Ordinary Income

100.0

16.6

108.5

16.6

108

Net Income

63.4

10.5

68.5

10.5

108

EPS (Yen)

221.9

241.2

%

YOY (%)

10919