Mitsubishi Tanabe Pharma Corporation Medium-Term Management Plan 08-10Dynamic Synergy for 2015

President Representative DirectorNatsuki Hayama

May 9,2008

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Agenda

Ⅰ. Basic Policies of Medium-Term Management Plan 08-10

Ⅱ. Fiscal 2015 Objectives and Growth Path

Ⅴ. Summary

Ⅲ. Fiscal 2010 Numerical Targets

Ⅳ. 2008-2010 Medium-Term Issues and Action Plans

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Basic Policies of Medium-Term Management Plan 08-10

Medium-TermManagement Plan

08-10

Fiscal 2015Objectives

PositioningFormulated as Three-Year Implementation PlanTargeting the Achievement of Fiscal 2015Objectives and the Realization of the Vision

Key Concept -VisionMitsubishi Tanabe Pharma takes on the challenge of making

Dynamic Synergy a reality. To the Company, Dynamic Synergy means makingfull use of abundant management resources, bringing together the expertise andenergy of all directors, officers and employees throughout the Company, andcreating new business domains and business models.

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Fiscal 2015 Objectives and Growth Path

New Growth Drivers for Fiscal 2015

Fiscal 2015 Objectives

Product Strategy Targeting the Fiscal 2015 Objectives

Establishment of a Competitive Edge

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Fiscal 2015 Objectives -Working to Become a Global, Research-Driven Pharmaceutical Company-

Establish a R&D pipeline capable of launchingone product every two years,with a focus on the metabolic and circulatory disease areas

Establish a top level position in the domestic ethical drug marketby launching and cultivating major products

Establish in-house sales structure in the U.S. andachieve overseas sales of more than ¥100 billion

Establish competitive superiority through the creation ofdifferentiated business models

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Product Strategy Targeting the Fiscal 2015 Objectives

Focused therapeutic areas

U.S./Europe Japan

Strategic Alliances

Implement strategic alliances to accelerate the above strategies

・Rapidly acquire approval for 2 productsin renal field; build and strengthenin-house sales structure

・Operations in diabetes though licensing,co-development and co-promotions, etc.

・Establish products pipeline in diabetes area・Maximize value of core products through LCM(bolster franchises in RA and stroke areas.)

Metabolic and circulatory to be positioned as “High Priority Field” in R&D → Diabetes and Stroke: Highest Priority diseases (pursue total disease care)

・

Diabetes: metabolic risk (obesity/dyslipidemia)～complications (kidney disease, dialysis)・Stroke: acute phase～convalescence～maintenance

RA: Rheumatoid Arthritis

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New Growth Drivers for Fiscal 2015

Overseas pharmaceutical sales:more than ¥100 billion

Metabolism and circulatory fields

MCI-196（Hyperphosphatemia）

MP-146（Chronic kidney disease）

MP-513（Type 2 diabetes）

MP-513

MP-424（Chronic hepatitis C）

FTY720（Multiple Sclerosis）

TA-7284

TA-7284（Diabetes）

Launch and the cultivate major productsin domestic market

Fiscal 2010

Fiscal 2015

・・In-house developmentin the U.S. and Europe

・・In-house developmentin Japan

・・Licensing,joint developmentin the U.S and Europe

Remicade Radicut

Anplag Talion

Urso Tanatril

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Targeting the Establishment of a Competitive Edge

Marketing

CMC

Development Production

Research Reliabilityguaranteed

BiomarkersFundamental technologies fordrug discoveryBiotechnologies

MitsubishiChemicalHoldings

Group

Generics:Tanabe SeiyakuHanbai Co., Ltd.

Remicade

Anplag Talion Urso

Tanatril

Cerebral fieldRadicut

NovastanGrtpa

Vaccines

Plasmap heresis

BenesisCorporation

Psychiatricfield

Yoshitomiyakuhin Corporation

Narcotic

OTC

Aiming to build a businessmodel that fully utilizesmanagement resources

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Promoting personalized medicine

Moleculence Corporation: biomarker discoveryMitsubishi Chemical Group Science andTechnology Research Center；Development of analyticaltechnologies

Mitsubishi Chemical Mitsubishi Chemical MedienceMedience；Development of diagnostic agents

Biomarker discovery

Stroke-related marker discoveryParticipation in Japan Pharmacogenomics Consortium(JPGC) databaseDiabetes-related marker discovery

LCM utilizing biomarkers

Drug discovery utilizing biomarkers

Medway:Avoiding adverse reactionsin pichia pastoris IgE antibody positive patients

Realizing targeted medicine

Increase satisfactionwith medical care

through the realization ofpersonalized medicine

Alliances with Mitsubishi ChemicalHoldings Group Companies

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Fiscal 2010 Numerical Objectives

Fiscal 2010 Numerical Targets

Sales Objectives for Domestic Pharmaceutical Operations

Trends in Profit and Cost Structures

Policies for Returning Profits

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Fiscal 2010 Numerical Targets

(Consolidated) Fiscal 2007(actual)*

Fiscal 2010(targets)

Net sales 4,094 4,600Operating income 725 950

Net income 319 560R&D expenses 723 820

Unit: ¥100 million

*Fiscal 2007 figures are simple sums

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Fiscal 2010 Numerical Targets (Comparison with Figures Announced May 2007)

(Consolidated)Fiscal 2010 Numerical TargetsMedium-Term

Management Plan 08-10

AnnouncedMay 2007

Net sales 4,600 4,800Operating income 950 1,000

Net Income 560 600R&D expenses 820 870

Number of employees 9,400employees

9,400employees

Cost Synergies 240 200

Unit: ¥100 million

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Sales targets for domestic pharmaceutical operations

Domesticfocus:

6 drugs

Domesticfocus:

6 drugs

Other domestic

drugs

Unit: ¥100 million3,900

2,230（△76）

1,460（＋346）

*Fiscal 2007 figures are simple sums

RemicadeRadicutAnplagUrsoTarionTanatril

500300220200140100

3,514

2,306

1,114

Fiscal 2007 (actual) Fiscal 2010 (targets)

Generic drugsOTC drugs

14070

14

% of net sales

R&D expenses

Trends in profit and cost structures

+ 3.0 percentage points

+ 0.1 percentage points

Operating income

Cost of sales

4,600

950

820

1,770

1,060

4,094725

723

1,505

1,141 SG&A(excluding R&D expenditures)

+ 1.7 percentage points

- 4.9 percentage points

Fiscal 2007 (actual) Fiscal 2010 (target)

*Fiscal 2007 figures are simple sums Unit: ¥100 million

（20.7％）

（17.8％）

（38.5％）

（23.0％）

（17.7％）

（17.7％）

（36.8％）

（27.9％）

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Policies for returning profits

More aggressivereturn of profits

■ Objective for the consolidated dividend payout ratio is 35%(prior to amortization of goodwill), and over long term we will work to providea more aggressive return to shareholders.

¥24

29.1%33.2%

Fiscal 2006 Fiscal 2007 Fiscal 2008 (forecast)

Dividend payout ratio

Cash dividends

Targets35.0%

¥26¥28

*Tanabe Seiyaku‘s interim figures and Mitsubishi Tanabe Pharma’s estimated year-end figures are used for the FY 2007 dividends. The dividend payout ratio is calculated exclusive of the amortization of goodwill and provision for reserve for HCV litigation from Mitsubishi Tanabe Pharma's second-half net income, and with estimated year-end dividends.

32.1%

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Key Management Issues and the Action Plan for the 08-10 Medium-Term Period

Enhancing Our Presence in Domestic Marketing

Steady Progress in Key Development Projects

Progress in Developing Overseas Pharmaceutical Operations

Progress in Generic Operations

Creating an Efficient Organization and Cost Structure

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Enhancing our presence in domestic marketing

Maximizing the Product value of Remicade

・Change in RA usages/dosages・Additional indications

- Psoriasis, and ankylosing spondylitis, ulcerative colitis・Increase in Remicade specialist

Increasing specialized knowledge in cerebral field

Promotion system (unification of sales lines) Strength Group marketing cooperation

・Increase in specialist in stroke field・Market expansion (opportunity)

-Increase in number of patients (about 2% a year)-Reimbursement incentives for stroke treatment extending from hyperacute phase to convalescence

・Promote use of our products at each phase -Hyperacute phase (Grtpa)-Acute phase (Radicut / Novastan)-Chronic phase (Sermion)

・Cooperation between MRs responsible foreach institution and specialists

・Hospital sales channel:Overlapping by department- Responsbility centered on internal medicine (Primary-MR)- Responsibility centered on surgery (Acute-MR)

・General practitioner sales channel:Introduce system of overlapping MRresponsibility by area

・Yoshitomiyakuhin Corporation(Psychiatric field)

・Benesis Corporation (Plasma fraction preparations)-Consider integrated production sales systems

・Tanabe Seiyaku Hanbai Co., Ltd. (Generic drugs)

Maximize marketing synergies

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Maximizing the Product Value of Remicade

Specialists

LCM

Increase in number of Specialists Improving quality

Change inRA usages/dosages

Psoriasis

RA: Rheumatoid ArthritisCD: Crohn's Disease(¥100 million)

RA

CDCD

Other

RA

CDCDOther

500

400

100

200

0

300

Fiscal 2007 (actual) Fiscal 2010 (target)

Ulcerative Colitis

Ankylosing Spondylitis

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Market potential of biological agents in RA market

Fiscal 2010 (forecast)

60

40

20

Fiscal 2007

100％

80

Remicade:about 1/3

JapanU.S.

Adoption of biological agents(% of RA patients receiving)

Other biological

agents

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Steady progress in phase III

Steady progress in key development projects

Medium-Term Management PlanMedium-Term Management Plan

U.S.and

Europe

MI-196 (Hyperphosphatemia)

MP-146 (Chronic kidney disease)

Targeting NDA by fiscal 2010

20102008 2009

Alliances anticipated in U.S. and EuropeDomestic

MP-424 (Chronic hepatitis C)

MP-513 (Type 2 diabetes)

Steady progress

Licensed outU.S. and Europe TA-7284 (Diabetes)

LCM

RA/-Change in usages/dosages

Psoriasis

Ankylosing Spondylitis

Ulcerative Colitis

ALS

Remicade

Radicut

2015

Approval

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Progress in Developing Overseas Pharmaceutical Operations

Prepare in-house sales system in the U.S. andEurope for MCI-196 and MP-146

Targeting initial in-house salesin the U.S.,

start to establish salesfoundation

Targeting concurrent salesin Europe as well,

establish sales foundation(Use existing Argatroban

sales foundation)

Start pre-marketing activitiesfor nephrologists anddialysis specialists,

which will bethe target of promotions

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Progress in Developing Overseas Pharmaceutical Operations

Drug sales in Asia

Progress in sales operations in Asia

Make full use of operational foundationin each country and expand productssold through in-house system,thereby advancing pharmaceutical operations

Fiscal 2007(actual)

Fiscal 2010(target)

(¥100 million)

200

100

0

Tianjin Tanabe Seiyaku Co., Ltd.

Tai Tien Pharmaceuticals Co.,Ltd.

Taiwan Tanabe Seiyaku Co.,Ltd.

P.T. Tanabe Indonesia

Welfide Korea Co., Ltd.

Mitsubishi Pharma(Guangzhou) Co., Ltd.

Increase the number of MRs from 500 to 600.

Mitsubishi Pharma Research &Development (Beijing) Co., Ltd.

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Progress in generic operations

Net sales: ¥14.0 billionNumber of ingredients: 100

Alliances

Rapid realization

Strategic alliances

Mitsubishi Tanabe Pharma CorporationR&D system, drug consultation center, PMS system, quality assurance system

Marketing systemEstablishment of Tanabe Seiyaku Hanbai Co., Ltd. in April 2008(100 person system)

Bolster tie-ups with distributors→development of health insurance pharmacies / DPC hospitals

Fiscal 2008 Fiscal 2010

Net sales: ¥3.7 billionNumber of products: 14

Internal medicines (solid)

Reliable genericssupply system

Enhance lineup / Bolster marketing (marketing consolidation)

Fiscal 2007

Net sales: ¥5.9 billionNumber of products: 25

Bolster lineup of injectable formulationsBolster lineup of injectable formulations

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Creating an efficient organization and cost structure

Fiscal 2008 Fiscal 2010 Fiscal 2015Time schedule (plan)

Baseconsolidation

Reorganize subsidiariesand affiliates

Ensuring an optimallysized workforce

Cost reductions

Head office

Research facilities

Other

◆Osaka head office building consolidation◆Tokyo head office building consolidation

◆Relocate research facilities currently in Hirakata Office

◆In stages, consolidate research facilitiesinto two bases, one in Kanto and one in Kansai

◆Consolidate Nabari training centers

◆Consolidate distribution facilities

Reorganize and consolidate production bases

◆Consolidate production companies(MP-Technopharma Corporation,

Tanabe Seiyaku Yamaguchi Co., Ltd.)◆Consolidate service companies(Tanabe Total Service Co., Ltd.,

Welfide Service Corporation)

◆Consolidation pensions, integrate personnel systems◆Fiscal 2010 objective: 9,400 employees(10,491 at time of merger)

◆Early retirement system

Establish Medium-Term Management Plan 08-10 Follow Up Committee, Work to efficient organization and cost structure

◆Fiscal 2010 cost synergies from reducing all types of expenses and consolidating bases: ¥24.0 billion

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Medium-Term Management Plan 08-10 Follow Up Committee

2008-2010 Medium-Term Issues

Summary

Enhancing our presence in domestic marketing

Progress in key development projects

Progress in overseas pharmaceutical operations

Progress in generic drug business

Establish efficient organization and cost structures

Bolster pipeline for metabolism and circulatory fields

Launch and cultivate major domestic drugs

Business model with competitive edge

Establish in-house sales system in the U.S.and achieve overseas drug sales

of more than ¥100 billion

Fiscal 2015 Objectives

We strive to be a global research-drivenpharmaceutical company

that is trusted by communities.

Forward-looking statements

All of the forward-looking statements in these materialsare the judgments of the Companyin accordance with certain subjective assumptions andbased on information currently available to management.Future results may differ materially due to any of a number of factors.