Eisai Co., Ltd. Annual Report 2001 - Eisai GmbH

Human Health Care
The script for our “human health
care” logo was taken from the
signature of Florence Nightingale.
The “human health care” concept
reflects our commitment to
viewing health care not only from
the standpoint of the caregiver,
but also from that of the receiver.
This commitment is inspired by
Florence Nightingale, who devoted
her life to caring for others, yet
never lost sight of the importance
of listening to her patients.
Eisai Co., Ltd.
Annual Report 2001

Contents
01 Consolidated Financial Highlights
02 To Our Shareholders
06 Achieving Customer Satisfaction
08 Research and Development
13 Review of Operations
13 Prescription Pharmaceuticals
15 Consumer Health Care Products
16 Other Operations
17 Reinforcing Our Relationship with Stakeholders
18 Corporate History
19 Financial Section
40 Japan and Overseas Operations
42 Major Products
43 Board of Directors, Corporate Officers, and Corporate Auditors
44 Corporate Information
Profile
Eisai Annual Report 2001
Eisai Co., Ltd., seeks to meet the diverse
health care needs of patients and their
families as a human health care company
by working to develop superior pharmaceutical
products in response to unmet medical
needs while observing the highest legal and
ethical standards.
Forward-Looking Statements
Statements in this annual report, other than those
of historical fact, are forward-looking statements
about the future performance of Eisai that are based
on management’s assumptions and beliefs in light
of information currently available, and involve both
known and unknown risks and uncertainties. Actual
events and results may differ materially from those
anticipated in these statements.

CONSOLIDATED FINANCIAL HIGHLIGHTS
Eisai Co., Ltd. and Consolidated Subsidiaries
Years ended March 31 2001 2000
Millions of yen
1999 1998 1997
Net sales ¥361,712 ¥302,470 ¥284,860 ¥301,760 ¥281,561
Operating income 58,968 37,133 38,613 47,508 50,362
Net income 23,323 11,275 15,878 19,794 19,445
Research and development
(R&D) expenses 49,614 46,704 43,698 45,139 38,348
Total shareholders’ equity 345,896 329,386 308,567 299,214 254,391
Total assets 549,444 485,674 463,384 453,050 456,618
Ratio of R&D expenses to
net sales (%) 13.7 15.4 15.3 14.9 13.6
Return on equity ratio (%) 6.9 3.5 5.2 7.2 8.1
Shareholders’ equity ratio (%) 63.0 67.8 66.6 66.0 55.7
Net income per share ¥78.68 ¥38.04 ¥53.57 ¥69.98 ¥71.00
Diluted net income per share 77.91 37.70 53.06 67.08 66.86
Cash dividends per share 23.00 21.50 21.50 21.50 18.00
Note: Net income per share and diluted net income per share are computed based on the weighted average number of shares
of common stock outstanding after retroactive adjustment for subsequent stock splits.
(Millions of yen)
400,000
320,000
240,000
160,000
80,000
0
Net Sales
281,561
301,760
284,860
302,470
361,712
’97 ’98 ’99 ’00 ’01
(Millions of yen)
25,000
20,000
15,000
10,000
5,000
0
Net Income
19,445
19,794
15,878
11,275
23,323
’97 ’98 ’99 ’00 ’01
Eisai Annual Report 2001
Yen
Total Assets / Equity Ratio
(Millions of yen)
600,000
480,000
360,000
240,000
120,000
0
456,618
453,050
463,384
485,674
549,444
(%)
75
60
45
30
15
’97 ’98 ’99 ’00 ’01 0
1

2
TO OUR SHAREHOLDERS
In fiscal 2000, which ended March 31, 2001, Eisai achieved record
consolidated results, due to the continued sales growth in global
markets of the Alzheimer’s disease treatment Aricept, and the proton
pump inhibitor Aciphex/Pariet. This achievement reflects the ongoing
support of shareholders and other stakeholders in the Company. On
behalf of everyone at Eisai, we would like to express our sincerest
appreciation.
Eisai sees our ultimate goal as satisfying customers—the patients
using our products—and our fundamental mission as determining
effective ways and allocating management resources effectively to
achieve this goal. Accordingly, we focus on developing pharmaceuticals
that satisfy unmet medical needs and enhance the quality of life
of patients worldwide. We also observe the highest standards of
quality and aim to provide information in easily accessible formats.
With Aricept, we have established a safe and effective course of
treatment for Alzheimer’s disease. Aricept has received approval in
78 countries and is playing a crucial role in efforts to treat patients
with mild to moderate Alzheimer's disease. We are also developing an
agent for treating sepsis, E5564, which is produced using proprietary
synthesis technologies. In the area of cancer research, we are pursuing
the development of substances with various mechanisms—such as
E7070 that affects the cell cycle at the G1 stage, tubulin antagonists
and antiangiogenics, which inhibit blood vessel formation—that offer
new hope for treating this disease. In the field of neurology, which we
have positioned as our most important strategic therapeutic area, we
are working toward the development of effective treatments for
neurogenerative disorders including multiple sclerosis and other
illnesses. Substances currently in development include the serotonin
receptor antagonist E2101, and the amino-3-hydroxy-5-methyl-4isoxazolepropionate
(AMPA) type glutamate receptor antagonist
E2007, for which we have received a concept patent for the inhibition
of neural dysfunction associated with multiple selerosis. Our research
in the neurology area also includes the development of additional
indications for Aricept.
Eisai Annual Report 2001

In Japan, we are proceeding with development of the antirheumatic
agents, T-614 and D2E7, the latter of which is a genetically
engineered tumor necrosis factor (TNF-α) antagonist, and the obesity
management compound sibutramine. Finally, we are aggressively
developing new applications and formulations for Aricept and
Aciphex/Pariet, which has already gained approval in 74 countries,
to maximize the potential of these groundbreaking drugs.
A crucial ongoing task for Eisai is to cultivate a solid technological
foundation to support the efforts of our high quality research.
Accordingly, we are taking decisive steps, including cooperating with
leading external organizations, to maximize cutting-edge genomic
technologies.
Eisai takes seriously its responsibilities as a manufacturer of
prescription pharmaceuticals. Our plants operate in accordance with
a stringent quality management system developed to comply with
Good Manufacturing Practices (GMP) standards. Our approach to
quality and safety focuses on ensuring the patient's peace of mind
and is comprehensive, even extending to the use of suitable packaging
made with easily disposable, environmentally friendly materials
and including appropriate product information.
Our approach to marketing places emphasis on raising customer
satisfaction through active communication with the medical
community. Underscoring the importance of this concept, we have
introduced an evaluation system in Japan for medical sales representatives
that also assesses contributions to improving customer satisfaction.
We will continue to refine this system to facilitate its use both
in the formulation and evaluation of overall marketing strategies for
medical sales representatives.
The pharmaceutical industry faces a host of new issues in the
21st century. A particularly crucial issue is the availability and access
to advanced pharmaceuticals by society. We also recognize the
importance of establishing solid relationships with customers, shareholders,
employees, the community and other individuals and groups
interested in or affected by our operations, and we constantly seek
Eisai Annual Report 2001
3

4
ways to enhance communications with them. In fiscal 2001, we will
start publishing an annual environmental report, and we also are
working to improve communication management.
A key issue facing Eisai as a corporate entity is the increasing
demand for transparent disclosure of information on operations and
greater accountability. Accordingly, we recognize the need to make
effective corporate governance a priority and have taken a number of
decisive steps, including specifically defining the responsibilities of
the Board of Directors and Corporate Officers, as well as restructuring
the Board of Directors to nine members, of which two are Non-
Executive Directors, to promote greater diversity. Among our Corporate
Auditors, three of the five members are from outside the Company.
We are determined to maintain a balanced managerial structure
from now and in the future.
In fiscal 2000, overseas sales accounted for 36.5% of our
consolidated net sales. The U.S. market has become particularly
crucial, with sales exceeding ¥100.0 billion in the period under
review. The United States also is leading the development of industry
clusters, or concentrations of independent but linked companies and
institutions, prompted by such trends as the emergence of ventures
built on exciting new technologies, competition among major pharmaceuticals
firms, and reforms to insurance and health care systems.
We acknowledge the need to develop effective strategies and ensure
effective management tailored to local market needs, and have
established a management system that allocates primary responsibility
for our U.S. drug discovery research, clinical research, production
and marketing to the Boards of Directors of each U.S. subsidiary. At
the same time, each U.S. subsidiary’s Board of Directors has been
reinforced and corporate governance enhanced by increasing the
number of Non-Executive Directors.
Eisai Annual Report 2001

Fiscal 2001 marks the conclusion of our third Five-Year Strategic
Plan which was initiated in 1986. Since we have achieved our goals
set forth in the last plan, we have named the next plan extending to
fiscal 2006 as the Millennium Plan as it contains innovative new midterm
plans and policies. As an international pharmaceutical company,
Eisai continues to focus on the actualization of customer satisfaction
and will continue to provide the organization and resources
necessary to achieve this objective. We also will strengthen our
strategic efforts in research and development, quality, personnel
resources, management systems, etc., in order to maintain corporate
growth.
In line with evolving concerns and priorities, we have amended
our corporate philosophy to encompass the ideas of responding to
the increasing needs of and respecting the dignity of customers. We
now define our mission as hhc and compliance by focusing on the
diverse requirements of patients and their families and increasing the
benefits that health care provides while complying with the highest
legal and ethical standards. We are working to ensure this expanded
philosophy is understood and observed companywide.
The millennium marks a new chapter in the history of Eisai,
and we are reasserting our commitment to customer satisfaction. As
always, we look forward to the ongoing support and understanding of
our shareholders.
Yuji Naito Haruo Naito
Chairman President and Chief Executive Officer
Eisai Annual Report 2001
5

6
ACHIEVING CUSTOMER SATISFACTION
With a goal of increasing customer satisfaction, Eisai seeks to tackle
the following basic operating policies as a “human health care (hhc)
company while observing the highest legal and ethical standards”.
1. Satisfying Unmet Medical Needs
There are many diseases in the world for which treatments and cures
have yet to be found, and pharmaceutical companies globally are
working to create effective therapies. Eisai’s fundamental mission is
to satisfy unmet medical needs. In fulfilling this mandate, Eisai promotes
research and development activities that focus on formulating
an innovative vision for the discovery of new prescription medicines
and creating technological foundations for drug discovery, while
anticipating cutting-edge trends in medical technology such as
artificial organs, regenerative medicine and genome research. Specifically,
we will review current technological foundations by envisioning
the ideal medicines to be marketed 10–20 years from now and
set clear guidelines as to what can be done now, what technologies
we will establish in the future and which external research institutes
we should collaborate with as strategic partners and in what manner.
We aim to combine these ongoing efforts with the development of
innovative drugs to contribute to satisfying unmet medical needs.
2. Maintaining High-Quality Pharmaceuticals
Quality assurance for medicines requires strict quality control of the
manufacturing and distribution processes as well as a follow-up
process that ensures the efficacy of the medicine. We, therefore,
focus on the health and safety of patients and consider the supply of
appropriate product information as an element of advanced quality
assurance for high-quality pharmaceuticals.
3. Sales Activities Emphasizing Improved Customer Satisfaction
An integral component to this is the evaluation of medical representatives’
(MRs) performance based not only on the conventional quantitative
objective of sales, but also on how they have contributed to the
dignity of patients and their quality of life (QOL) . Eisai calls such
Eisai Annual Report 2001

humanity-based sales activities the “LIVES System*” and it is a top
priority. This policy aims to ensure an increased level of patient
satisfaction by quickly delivering effective medicines that are expected
to maximize the benefits to patients. We intend to create a
unique pharmaceutical sales method based on improved customer
satisfaction and insure reliability by appraising our MR activity
through measuring their contributions to patients’ QOL.
4. Stressing Relationships with Stakeholders
Eisai recognizes that interactive communication with its stakeholders,
including patients, shareholders, health care providers and employees,
is important, and intends to reinforce relationship-based management
in which their needs are carefully considered. Moreover, we
will continue to actively contribute to local communities and support
environmental preservation as a trusted corporate citizen.
5. Strengthening Corporate Governance
Greater transparency and accountability are envisioned for business
activities in the 21st century. Accordingly, we understand that establishing
effective corporate governance systems is critical. Eisai has
appointed two Non-Executive Directors and increased the number of
outside auditors to three of the five. In addition, we have clearly
distinguished the roles of the Board of Directors and the Corporate
Officers, reinforced the roles of the Non-Executive Directors on the
Board of Directors and implemented measures to strengthen the
Corporate Governance Committee. The Corporate Governance Committee,
which is chaired by Ichiro Kataoka, a Non-Executive Director,
consists of four members, and its major purpose is to ensure transparent
decision-making in the appointment of officers and their
remuneration. A stock option system was introduced in fiscal 2000
with regard to the remuneration of officers; this system and bonus
amounts are now determined following examination by the Committee.
We will continue to make efforts to enhance transparency and
accountability to our stakeholders.
Eisai Annual Report 2001
*
LIVES System: Eisai defines this system
as the “dignity and quality of life for
patients for whom various benefits are
expected to be achieved through
product usage”
7

8
RESEARCH AND DEVELOPMENT
Eisai’s R&D mission is to respond to unmet medical needs thus
fulfilling customer satisfaction objectives. In achieving this mission,
we strive to promote efficient R&D and bring breakthrough
prescription drugs to market as quickly as possible. Accordingly, we
are concentrating our focus on specific therapeutic areas and are
striving to maximize results by capitalizing on advanced technologies in
these areas. The success of our drug development efforts owes much
to the excellence of our research team leaders and our ability to
achieve independent regulatory approval. These team leaders inspire
Eisai researchers worldwide to challenge new frontiers in their ongoing
drive to develop drugs that contribute to greater customer satisfaction.
Concentrated Focus on Strategic Therapeutic Areas
Eisai continues to achieve important results by concentrating resources
in three strategic therapeutic areas: neurology and gastroenterology—
in which we have already established a strong presence—and oncology.
The pursuit of focused R&D in these areas enables us to undertake
crucial themes and projects at each stage of the drug discovery and
development process and concurrently promotes an efficient
allocation of resources. This approach also allows us to effectively
incorporate cutting-edge information and medical advances at all
stages, from exploratory research through clinical research.
R&D in the area of central nervous system disorders is based at
the Tsukuba Research Laboratories, near Tokyo, and the Eisai London
Research Laboratories, in the United Kingdom. The researchers in
these facilities cooperate closely. At the same time, both laboratories
focus on drug discovery research that capitalizes on its particular
strengths. These efforts have contributed to the discovery of such
important investigational drugs as E2007, a treatment in for multiple
sclerosis. Other substances currently under development include the
serotonin receptor antagonist E2101, a centrally acting muscle relaxant,
Eisai Annual Report 2001

Selected Research Candidates (As of July 31, 2001) (Phase II and beyond)
Research Code Region Stage Description
E2020
Japan Approved
Alzheimer’s Disease/Acetylcholinesterase Inhibitor
Fine Granules (Additional form)
U.S. Phase III Dementia with Cerebral Vascular Disease (Additional Indication)
U.S. Phase III Severe Alzheimer’s Disease (Additional Indication)
U.S. Phase II Attention Deficit Disorder/Attention Deficit Hyperactivity Disorder (Additional
Indication)
Peptic Ulcer/Proton Pump Inhibitor
E.U. Approved H. pylori Eradication (Additional Indication)
E.U. Approved Symptomatic GERD/Proton Pump Inhibitor (Additional Indication)
E3810 U.S. Filed Symptomatic GERD/Proton Pump Inhibitor (Additional Indication)
Japan Phase III GERD Maintenance/Proton Pump Inhibitor (Additional Indication)
U.S. Phase III H. pylori Eradication (Additional Indication)
Muscle Relaxant
E2000 Japan Filed Transdermal Patch (Additional Form)
E7155 Japan Filed MRI Contrast Medium
T-614 Japan Phase III Anti-rheumatic Agent
Thrombolytic/Second Generation t-PA
E6010 Japan Phase III Pulmonary Embolism (Additional Indication)
Japan Phase II Cerebral Embolism (Additional Indication)
E3620 Japan Phase II
Gastrointestinal Motility
5-HT3 Receptor Antagonist, 5-HT4 Receptor Antagonist
KES524 Japan Phase II Obesity Management/Serotonin & Noradrenaline Reuptake Inhibitor
E7070 U.S./E.U. Phase II Anti-cancer/Antimitotic Agent
E5564 U.S. Phase II Sepsis/Endotoxin Antagonist
*Clinical development for new drugs is generally divided into three phases:
Phase I : Testing for safety using a small group of healthy subjects.
Phase II : Testing for safety and efficacy using a small group of patients.
Phase III: Double-blind tests to compare efficacy against similar, existing drugs and other drugs using a large group of patients.
and the neurospecific calcium channel blocker E2051, for treating
acute cerebral infarction. Our research in this area also includes the
clinical development of additional indications for Aricept in the
treatment of dementia with cerebral vascular disease, Alzheimer’s
disease with severe cognitive impairment, attention deficit disorder
and other illnesses.
To maximize our ability to respond to unmet medical needs in
the area of central nervous system disorders, we have concluded
agreements with external firms and individuals. In March 2001, we
signed an agreement for the utilization of the genomics database of
Incyte Genomics, Inc., a U.S. genomics information company. Also in
Eisai Annual Report 2001
9

10
March, we concluded a consulting agreement on G-protein coupled
receptor (GPCR) research with Professor Masashi Yanagisawa, an
Investigator at the Howard Hughes Medical Institute, encompassing
the purification and identification of orphan GPCR ligands, which are
the unknown ligands, or molecules, bound to GPCRs. This agreement
marks the launch of a full-scale GPCR program, the aim of which is to
target GPCR in the discovery of neurological treatments. In the field of
Alzheimer’s disease treatments—a field largely pioneered by Aricept—
we signed an exclusive research agreement with Neurogentics Inc. for
Alzheimer’s disease targets involving human genetics.
In our second key therapeutic area, gastroenterology, the fast
and consistent efficacy of the proton pump inhibitor Aciphex/Pariet,
initially developed as a treatment of for a variety of gastrointestinal
disorders, is contributing to its emergence as a major global drug. We
are also stepping up efforts to develop additional indications for this
important product. To date, Aciphex/Pariet has been granted regulatory
approval as a treatment for gastroesophageal reflux disease (GERD)
in Japan, the United States and the European Union (E.U.) and as a
treatment for symtomatic GORD(GERD) in the E.U. We have filed for
approval for Aciphex/Pariet for Helicobacter pylori eradication in the
E.U., and have completed Phase III clinical trials for this indication in
the United States. Also in the area of Helicobacter pylori eradication,
we are conducting research on a new substance, E3309, a highly
selective antimicrobial. We are continuing to strenthen our
gastroentrology pipeline.
Research in the area of cancer is carried out at the Tsukuba
Research Laboratories and the Eisai Research Institute of Boston,
which specializes in advanced synthetic organic chemistry and
biological screening; and is particularly strong in the synthesis of
natural bioactive compounds. Researchers at these facilities are
Eisai Annual Report 2001

working together to develop anticancer agents and antiangiogenic drugs
with favorable side effect profiles. In May 2001, we commenced
Phase II clinical research of the sulfonamide deriviative E7070, a new
type of anticancer agent. We are also developing E7389, an anticancer
agent derived from naturally occurring substances, in collaboration with
the U.S. National Cancer Institute.
The Eisai Research Institute of Boston has developed E5564, a
fully synthesized compound for treating sepsis. This substance, an
endotoxin antagonist, has been developed to block the activities of
bacterial endotoxins that play a key role in the development of sepsis.
Substances under development in Japan include the rheumatoid
arthritis treatment, T-614, genetically engineered tumor necrosis
factor (TNF-α) antagonist D2E7 and the obesity management
compound KES524 (sibutramine).
Technology Platforms for Drug Discovery
Bioinformatics* 1 plays an important role in genomics-based drug
discovery. At Eisai, bioinformatics focuses on the construction of a
database valuable for daily research activities and the development of
proprietary software tools for data analysis. Our bioinformatics capabilities
have been significantly reinforced via the agreement with
Incyte Genomics Inc. in March 2001, which permits access to their
proprietary cDNA (complementary DNA) database.
Transcriptomics* 2 and proteomics* 3 , which are used for target
validation and the functional analysis of genes, are also important
technologies in genomics-based drug discovery. Utilizing these cutting
edge technologies, together with genetics using model organisms—
such as yeast and the nematode C. elegans—and knockout* 4 and
transgenic* 5 technologies, we are conducting innovative genomicsbased
drug discovery research.
Eisai Annual Report 2001
* 1Bioinfomatics: Application of informatics in genomics,
analyzing vast data sets of genome
sequences and proteins for the discovery
of target genes.
* 2Transcriptomics: Analysis of gene expression profiles.
* 3Proteomics: Analysis of whole protein expression.
* 4Knockout technologies:
Technology to produce model animals with
defects in specific genes in order to analyze
the function of the gene by observing the
resulting phenotype.
* 5Transgenic technologies:
Technology to introduce foreign gene(s)
into model animals, for analysis of the
function of the gene and for construction
of disease models.
11

12
* 6Structure-Based Drug Design
Computational drug design using data on
the 3-dimensional structure data of a
target molecule.
* 7High-Throughput Screening
Automated high-speed screening of
millions of compounds, utilizing robotics
technology.
* 8Combinatorial Chemistry
Chemical synthesis of a wide variety
compounds simultaneously, using many
combinations of previously prepared
components.
* 9KAN Research Institute, Inc.
Eisai's 100% subsidiary company founded
in 1997, conducting basic research.
Once we select drug target molecules, we concentrate efforts
on discovering compounds which exhibit pharmacological activity by
modulating the function of the target molecules, through the optimum
use of SBDD (Structure-Based Drug Design* 6 ), HTS (High-Throughput
Screening* 7 ) and combinatorial chemistry* 8 .
New Approaches for Drug Discovery
Eisai created the original concept “medicinal genetics,” based on our
own drug discovery technologies. The concept came from an idea of
integrating medicinal chemistry with genomic science and molecular
biology. By correlating the pharmacological activity of a compound
with the genetic phenotype of model organisms, we can identify the
target molecule of a compound. This approach enables us to simultaneously
identify both target molecules (genes) and useful compounds
which modulate the target molecules. Recently, we have been making
steady progress in the discovery of new target molecules and promising
compounds for oncology as well as in other therapeutic areas.
Moreover, we began a new research effort to identify drug target
molecules by applying our comprehensive technologies. We are
organizing collaborative relationships with external research institutes,
obtaining the latest information and know-how critical to drug discovery.
We are also in close collaboration with the KAN Research Institute Inc.* 9
in Kyoto, conducting basic research on neurological and immunological
diseases and investigating new technologies for gene hunting.
Through the integration of these innovative approaches for drug
discovery and prioritizing resource allocation, we are accelerating
promising drug discovery programs and vigorously expanding our
research capabilities.
Eisai Annual Report 2001

REVIEW OF OPERATIONS
PHARMACEUTICALS
In fiscal 2000, sales in the pharmaceuticals segment, which includes
consumer health care products and diagnostic drugs, climbed 23.4%
and accounted for 92.4% of consolidated net sales, up from 89.6%
in fiscal 1999. Sales were propelled by a sharp increase in sales of
Aricept, Aciphex/Pariet and other prescription pharmaceuticals.
Prescription Pharmaceuticals
Operations in Japan
During the period, we continued to place the highest priority on
customer satisfaction in all aspects of our pharmaceutical operations,
in line with our commitment to meeting the health care needs of
patients and improving their quality of life. We recorded stable sales
of principal prescription pharmaceuticals, including Aricept, Pariet,
Methycobal, the osteoporosis treatment Glakay, the muscle relaxant
Myonal and the gastritis/gastric ulcer medication Selbex. We also
sought to promote Aricept through direct marketing to physicians by
our team of medical representatives (MRs), as well as through active
efforts aimed at accelerating time to consultation, diagnosis and, if
appropriate, prescription to ensure sufferers of Alzheimer’s disease
prompt access to treatment. We also continued to promote sales of
Pariet by capitalizing on its reputation as the most effective drug for
fast and consistent treatment of gastrointestinal disorders.
Eisai Annual Report 2001
13

14
International Operations
In the United States, fiscal 2000 brought the launch of several new
competitors for Aricept and Aciphex. Nonetheless, sales of Aricept
increased to ¥52.7 billion, as its advantages in terms of both efficacy
and adverse event profile continued to distinguish it from other
Alzheimer’s disease treatments. Sales of Aciphex rose sharply, to ¥44.0
billion, as customers continued to give high marks to the drug’s fast
and consistent efficacy. During the period, we received approval from
the U.S. Food and Drug Administration to manufacture Aciphex at our
U.S. plant in North Carolina, and preparations are currently in progress
to commence commercial production. In the current period, Eisai’s
sales force will work to expand Aciphex's market share by using data to
distinguish it from competitors. Our sales force also will use clinical
research results and other data supporting the cost and efficacy advantages
of Aricept to communicate the benefits of this important therapy
to physicians, patients, and caregivers. We will also continue to seek
approval for additional indications for both products to increase the
benefits that they provide to patients.
Stringent measures aimed at reducing health care expenditures
contributed to harsh conditions in Europe in fiscal 2000. Despite a
difficult environment, sales of Aricept rose 13.3% and sales of Pariet
climbed 53.7%. Revenue results in Europe show that our European
operations achieved profitability. We have reached our initial objective of
establishing proprietary marketing bases in the United Kingdom, France
and Germany and, in fiscal 2001, will concentrate on building market
share for Aricept and Pariet by seeking approval for additional indications.
All Eisai subsidiaries in Asia were profitable in fiscal 2000. During the
period, we launched Pariet in Taiwan, Indonesia, Malaysia and Singapore.
To reinforce our pharmaceutical operations in China, a particularly promising
market, we liquidated the affiliate Shenyang Eisai Pharmaceutical Co.,
Ltd., and integrated operations at Eisai (Suzhou) Pharmaceutical Co., Ltd.,
a consolidated subsidiary. In fiscal 2001, we will focus on expanding
market shares for mainstay prescription pharmaceuticals, notably Aricept,
Pariet and the peripheral neuropathy treatment Methycobal, and on
making these products available in more countries in the region.
Eisai Annual Report 2001

Consumer Health Care Products
The consumer health care products category encompasses a wide
range of items sold over-the-counter (OTC) at drugstores and pharmacies
in Japan, including medicated topical treatments. We continue to
develop new, and modify existing, products in this category by gathering
information on consumer needs from various sources, including
our own customer hot line service.
Many products in this category have been on the market for
years and continue to enjoy solid support from consumers. These
include the indigestion and heartburn treatment Saclon and the
vitamin B2 preparation Chocola BB. We also develop and market OTC
versions of prescription drugs such as Nabolin, an active B12 preparation.
Sluggish consumer spending continued to inhibit growth in the
market for consumer health care products in fiscal 2000. Nonetheless,
sales in this category rose 4.0%, reflecting the launch of nine new
products. New products introduced during the period include Chocola
BB Fresh, a vitamin B2-enriched health drink sold in convenience
stores and other new sales channels. Sales also grew for the vitamin B2
preparation Chocola BB Pure and Breathe Right nasal strips for nasal
congestion relief, both of which enjoy particularly strong support from
consumers. In line with our overall objective consumer health care
products—which is to position Eisai as the brand of choice for consumers—we
will continue to promote sales of products in the Chocola BB
line. At the same time, we will work to ensure the early launch and
rapid market penetration of new products.
Eisai Annual Report 2001
15

16
OTHER OPERATIONS
Food Additives and Chemical Operations
Eisai is a pioneer in the development of applications for vitamin E and
has developed an extensive line of vitamin E-enriched nutritional
supplements and antioxidants. Our food additives operations also
encompass the supply of food preservatives, sweeteners and other
additives to food product manufacturers. Our chemical operations
emphasize sales of natural and synthetic vitamin E and include sales
of raw materials for the manufacture of pharmaceuticals and cosmetics,
such as xylitol and lysozyme hydrochloride.
In fiscal 2001, we will focus on the launch of new products for
the food product, pharmaceutical, cosmetic and health food markets,
and on refining marketing procedures and expanding technical
services in response to rapid deregulation in key industries. We will
also step up long-term efforts to develop innovative new materials.
Veterinary and Livestock Product Operations
This category focuses on the sale of nutritional supplements and
veterinary drugs developed to ensure safer, healthier livestock and
better health care for pets. In fiscal 2000, we sought to improve the
category’s profitability by creating a more streamlined structure and
undertaking intensive marketing efforts. As a consequence, the
category returned to profitability. We also applied for approval for two
new vaccines—for fish and poultry—a development that bodes well
for the future of these operations. We will continue to prioritize profitable
businesses in fiscal 2001 and beyond to ensure stable returns.
Pharmaceutical Production Systems and Equipment Operations
These operations comprise the development and sale of production
systems and equipment for pharmaceutical manufacturers that
ensure the quality of ampoules for injection and enhance productivity.
In the period under review, we focused marketing efforts on the
Automatic Inspection Machine (AIM) and the Eisai Inspection System
(EIS), both category mainstays, enabling us to maintain stable profit
levels. We will continue to promote concentrated and selective business
development to ensure profitability.
Eisai Annual Report 2001

REINFORCING OUR RELATIONSHIP WITH STAKEHOLDERS
We continue to place a high priority on reinforcing our relationship
with stakeholders through enhancing communication. We are expanding
communication with patients, medical professionals and
consumers via our customer hot line service and our internet Web
site. We strongly believe in the importance of effective communication
and a solid relationship with stakeholders to achieve success in
the 21st century. Accordingly, we have appointed a corporate officer
to oversee relationship management.
Customer Hot Line
Our customer hot line in Japan enables patients, medical professionals and
consumers to seek advice and information or make suggestions regarding
Eisai products and their usage via telephone, fax or e-mail. Opinions and
ideas obtained through the hot line are shared throughout the Company and
applied to efforts to improve product performance, quality, services and
disclosure. The hot line service has been contacted nearly 310,000 times
since its establishment in April 1990. During this time, we have increased
accessibility by including hot line contact information on product instruction
leaflets and introducing toll-free dialing and year round availability. Suggestions
from customers contacting the hot line have led to improvements in
drug manufacturing procedures and amendments to product instructions.
We will continue to seek ways to enhance the hot line to improve communication
with customers.
Web Site
The Eisai Web site offers a wealth of
information of interest to patients and
medical professionals, as well as
shareholders, investors and general
consumers. In the area of medical
care, we offer extensive, up-to-date
information on treatment methods and
drugs for dementia, health care, overthe-counter
drugs, vitamins and other topics of interest. We also provide timely
seasonal information, such as pollen levels. On the corporate side, the Web
site includes press releases, a description of our operations and investor
relations information. This year, we also included a summary video of our
fiscal 2000 results presentation held in May. The Web site also contains an email
contact address for users who have questions or suggestions. Ongoing
efforts to enhance the content of our Web site will further increase the importance
of this crucial communication tool.
Eisai Annual Report 2001
17

18
2000
1998
1997
1996
1995
1992
1989
CORPORATE HISTORY
EUROPE
European operations achieved
profitability.
Alzheimer’s treatment Aricept is
launched in France.
Pariet, a proton pump inhibitor, is
launched in the United Kingdom
and Germany.
Alzheimer’s treatment Aricept is
launched in the United Kingdom
and Germany.
Prescription pharmaceutical sales
company is established in Germany
and France.
Prescription pharmaceutical sales
company is established in the
United Kingdom.
Eisai London Research Laboratories
are completed.
Subsidiaries are established in the
United Kingdom and Germany.
2000
1999
1997
1995
1992
1989
1988
1981
UNITED STATES JAPAN ASIA
Caring to Help Others.
(Caregiver training manual
published/distributed)
Aciphex, a proton pump inhibitor, is
launched.
Alzheimer’s treatment Aricept is
launched.
Construction of process research
facility is completed.
Construction of facilities for drug
formulation research and prescription
pharmaceuticals is completed.
Prescription pharmaceutical sales
company is established.
Administrative company is established.
Eisai Research Institute of Boston is
completed.
Clinical research company is
established.
Chemical and pharmaceutical
machinery sales company is
established.
2001
2000
1999
1997
1996
1993
1991
1990
1988
1982
1981
1966
1961
1955
1944
1941
1936
Eisai Annual Report 2001
Special R&D incentive system is
introduced.
Sunplanet Co., Ltd. is established
Managerial structure reform
implemented.
Kawashima Plant received ISO
14001 certification.
Alzheimer’s treatment Aricept is
launched.
Pariet proton pump inhibitor is
launched.
Internet Home Page established.
(http://www.eisai.co.jp)
human health care (hhc) corporate
message enunciated.
First consolidated accounting
statement results announced.
Sanko Junyaku Co., Ltd. becomes
a subsidiary.
Yuji Naito becomes Eisai’s chairman,
and Haruo Naito assumes the
post of president.
Construction of the Tsukuba
Research Laboratories is completed
(Ibaragi Prefecture).
Operations commence at the
Misato Plant (Saitama Prefecture).
Operations commence at the
Kawashima Plant (Gifu Prefecture).
Founder Toyoji Naito becomes
Eisai’s chairman, and Yuji Naito
succeeds as Company president.
Eisai lists on the Tokyo Stock
Exchange and the Osaka Securities
Exchange.
The Company’s name is changed
to Eisai Co., Ltd.
Sakuragaoka Research Laboratory
and Nihon Eisai Co., Ltd., merge
under the name of the latter.
Nihon Eisai Co., Ltd., is established
in Honjo-machi, Saitama Prefecture.
Toyoji Naito establishes a limited
partnership called Sakuragaoka
Research Laboratory, Eisai’s
predecessor.
1998
1997
1996
1995
1991
1989
1987
1979
1974
1970
Alzheimer’s treatment Aricept is
launched in Hong Kong and
Thailand.
Prescription pharmaceutical clinical
research company established in
the Republic of Korea.
Prescription pharmaceutical
manufacturing and sales company
is set up in China.
Prescription sales support company
is established in Taiwan.
Prescription pharmaceutical sales support
company is established in Hong Kong.
Prescription pharmaceutical manufacturing
and sales company is set up in China.
Prescription pharmaceutical sales
support company is set up in Thailand.
Prescription pharmaceutical sales
support company is established in
Taiwan.
Prescription pharmaceutical sales
support and management services
company is established in Singapore.
Prescription pharmaceutical manufacturing
and sales companies are set up
in Malaysia and the Philippines.
Prescription pharmaceutical
manufacturing and sales company
is established in Indonesia.

FINANCIAL SECTION
Contents
20 Financial Review
24 Consolidated Balance Sheets
26 Consolidated Statements of Income
27 Consolidated Statements of Shareholders’ Equity
28 Consolidated Statements of Cash Flows
29 Notes to Consolidated Financial Statements
39 Independent Auditors’ Report
19

20
FINANCIAL REVIEW
(Millions of yen)
400,000
320,000
240,000
160,000
80,000
281,561
Net Sales
301,760
284,860
302,470
361,712
0 ’97 ’98 ’99 ’00 ’01
OPERATING RESULTS
Net Sales
Consolidated net sales for Eisai Co., Ltd., and its consolidated subsidiaries
(“Eisai”) amounted to ¥361,712 million in the fiscal year ended March 31,
2001, an increase of 19.6% year over year. The consolidated net sales of
Aricept, a treatment for Alzheimer’s disease, were ¥71,130 million and those
of Aciphex/Pariet, a proton pump inhibitor for the treatment of gastrointestinal
disorders, were ¥54,739 million. Both products made a significant
contribution to the increase in sales.
Gross Profit
Gross profit rose 24.8% year over year to ¥263,244 million, and Eisai’s gross
profit margin improved 3.1 percentage points to 72.8%. The increase was
due chiefly to sales growth registered by our sales subsidiaries outside
Japan, an expansion in the proportion of sales accounted for by sales of
products developed in-house and the operating rates of plants being maintained
at high levels.
Selling, General and Administrative (SG&A) Expenses
SG&A expenses rose 21.7%, to ¥154,662 million, pushed up by promotional
expenditures associated with increased sales of Aciphex in the United States.
SG&A expenses were equivalent to 42.8% of net sales, up 0.8 percentage
points from the previous fiscal period.
Research and Development (R&D) Expenses
R&D expenses were up 6.2%, to ¥49,614 million, mainly due to the cost of
clinical research for additional indications for Aricept in the United States
and genome-related expenses in Japan.
Operating Income and Income before Income Taxes and Minority Interests
Operating income jumped 58.8%, to ¥58,968 million, whereas the operating
income as a percentage of net sales rose 4.0 percentage points to 16.3%.
Other expenses included a loss of ¥13,745 million due to the establishment
of a retirement benefit trust that aims to amortize transitional obligation due
to the adoption of a new retirement benefits accounting standard.
Consequently, income before income taxes and minority interests rose
67.8% to ¥42,838 million.
Gross Profit and Ratio of
Gross Profit to Net Sales
(Millions of yen)
66.2 68.9 69.4 69.7 72.8
(%)
300,000
75
240,000
180,000
120,000
60,000
186,519
207,924
197,758
210,887
263,244
0 ’97 ’98 ’99 ’00 ’01
60
45
30
15
Eisai Annual Report 2001
0
SG&A Expenses and Ratio of
SG&A Expenses to Net Sales
(Millions of yen) (%)
34.7 38.2 40.5 42.0 42.8
200,000
50
160,000
120,000
80,000
40,000
97,809
115,277
115,447
127,050
154,662
0 ’97 ’98 ’99 ’00 ’01
40
30
20
10
0
R&D Expenses and Ratio of
R&D Expenses to Net Sales
(Millions of yen) (%)
13.6 14.9 15.3 15.4 13.7
50,000
20
40,000
30,000
20,000
10,000
0
38,348
45,139
43,698
46,704
49,614
’97 ’98 ’99 ’00 ’01
16
12
8
4
0

Net Income
Current income taxes for the period increased 90.3% to ¥33,131 million.
Deferred income taxes amounted to ¥13,499 million, whereas minority
interests in net income amounted to ¥117 million. Therefore, net income
climbed 106.9% to ¥23,323 million, and the return on equity ratio was
6.9%, an increase of 3.4 percentage points. Net income per share advanced
by ¥40.64 to ¥78.68.
Dividend Policy
Year-end cash dividends per share increased by ¥1.50 to ¥13.00. As a
consequence, total cash dividends per share for the year, including the
¥10.00 per share semiannual dividend, came to ¥23.00 per share. Total
dividends paid to shareholders amounted to ¥6,818 million.
Sales by Operating Segment
Eisai classifies its consolidated operations into two operating segments:
Pharmaceuticals and Other. Sales of Aricept and Aciphex/Pariet pushed
sales in the Pharmaceuticals segment in the period under review up 23.4%
to ¥334,251 million, whereas operating income for the segment rose 49.7%
to ¥68,757 million.
In the Other segment, sales of chemicals, food additives, veterinary and
livestock feed products suffered from a stagnant business environment, and
segment sales declined 13.1% to ¥27,461 million, resulting in an operating
loss for the segment of ¥2,749 million.
Operating Income and Ratio of
Operating Income to Net Sales
(Millions of yen) (%)
17.9 15.7 13.6 12.3 16.3
60,000
20
48,000
36,000
24,000
12,000
(Yen)
0
Net Income per Share
100
80
60
40
20
50,362
71.00
47,508
69.98
38,613
53.57
37,133
38.04
58,968
’97 ’98 ’99 ’00 ’01
78.68
0 ’97 ’98 ’99 ’00 ’01
16
12
8
4
0
Net Income and Ratio of
Net Income to Net Sales
(Millions of yen) (%)
25,000
20,000
15,000
10,000
(Yen)
5,000
0
Cash Dividends per Share
25
20
15
10
5
6.9 6.6 5.6 3.7 6.4
7.5
19,445
18.00
19,794
21.50
15,878
21.50
11,275
21.50
23,323
’97 ’98 ’99 ’00 ’01
23.00
0 ’97 ’98 ’99 ’00 ’01
6.0
4.5
3.0
1.5
0
(%)
Return on Equity Ratio (ROE)
10
Eisai Annual Report 2001
8
6
4
2
(Millions of yen)
7,000
5,600
4,200
2,800
1,400
8.1 7.2 5.2 3.5 6.9
0 ’97 ’98 ’99 ’00 ’01
Cash Dividends
4,951
6,206
6,373
6,373
6,818
0 ’97 ’98 ’99 ’00 ’01
21

Investments and Other Assets
Total investments and other assets advanced 114.3%, or ¥72,814 million, to
¥136,527 million. This large increase was greatly influenced by a shift of
¥76,091 million in marketable securities from current assets at the beginning
of the year, due to the application of a new accounting standard for financial
instruments.
Liabilities
Total current liabilities amounted to ¥153,755 million, an increase of 58.7%, or
¥56,894 million, principally reflecting an increase in payables accompanying
the expansion of sales in the United States. Total long-term liabilities declined
¥9,263 million, or 18.6%, to ¥40,651 million, due to the shift of ¥10,000
million in bonds to be converted during the period from long-term liabilities to
current liabilities.
Total Shareholders’ Equity
Total shareholders’ equity rose 5.0%, or ¥16,510 million, to ¥345,896
million, as a result of an increase in net income, Net unrealized gains on
available-for-sale securities of ¥1,005 million and foreign currency translation
adjustments of negative ¥1,456 million, and the payment of dividends and
other factors. Accordingly, liabilities increased and the shareholders’ equity
ratio declined to 63.0% from 67.8% a year earlier.
CASH FLOWS
Operating Activities
Net cash provided by operating activities in the fiscal year ended March 31,
2001, amounted to ¥84,996 million, up ¥57,822 million from the previous
period. The key changes affecting cash flows from operating activities were
an increase in income before income taxes of ¥17,302 million, an adjustment
to the loss (net) from the retirement benefit trust of ¥13,745 million as
a noncash transaction and an increase in current liabilities such as accrued
expenses.
Investing Activities
Net cash used in investing activities totaled ¥19,552 million, mainly from
expenditures of ¥13,918 million for acquisitions of property, plant and
equipment and intangible fixed assets and purchases of short-term investments.
Purchases of short-term investments increased compared with the
previous period, principally as a result of the investment in debentures with
the cash provided by operating activities.
Financing Activities
Net cash used in financing activities totaled ¥17,713 million, largely resulting
from corporate bond repayment during the period of ¥10,000 million and
dividends paid totaling ¥6,373 million.
As a consequence of Eisai’s operating, investing and financing activities
during the period as well as the effect of exchange rate changes, cash and
cash equivalents as of March 31, 2001, totaled ¥106,338 million, up
¥53,782 million, from ¥52,556 million at the previous year-end.
Eisai Annual Report 2001
23

24
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets
Eisai Co., Ltd. and Consolidated Subsidiaries Thousands of
Millions of yen U.S. dollars (Note 1)
March 31, 2001 and 2000 2001 2000 2001
ASSETS
Current Assets:
Cash and cash equivalents ¥106,338 ¥ 52,556 $ 857,565
Time deposits 8,067 6,318 65,056
Short-term investments (Note 3)
Receivables:
12,130 89,525 97,823
Trade notes 16,981 20,438 136,943
Trade accounts 99,405 86,907 801,653
Due from unconsolidated subsidiary and associated companies 157 323 1,266
Other 3,183 3,024 25,669
Allowance for doubtful receivables (534) (601) (4,306)
Inventories (Note 4) 33,722 33,989 271,952
Deferred tax assets (Note 6) 15,874 9,704 128,016
Prepaid expenses and other current assets 10,869 10,241 87,653
Total current assets 306,192 312,424 2,469,290
Property, Plant and Equipment:
Land (Note 5) 18,930 19,072 152,661
Buildings and structures (Note 5) 122,482 119,470 987,758
Machinery and equipment 113,233 110,550 913,170
Construction in progress 1,632 1,548 13,161
Total 256,277 250,640 2,066,750
Accumulated depreciation (149,552) (141,103) (1,206,064)
Net property, plant and equipment 106,725 109,537 860,686
Investments and Other Assets:
Investment securities (Note 3)
Investments in and advances to unconsolidated
76,906 5,431 620,210
subsidiary and associated companies 338 495 2,726
Insurance reserve 25,147 24,903 202,798
Software 8,312 7,359 67,032
Foreign currency translation adjustments 5,541
Deferred tax assets (Note 6) 18,529 11,780 149,427
Other assets 7,295 8,204 58,831
Total investments and other assets 136,527 63,713 1,101,024
Total ¥549,444 ¥485,674 $4,431,000
See Notes to Consolidated Financial Statements.
Eisai Annual Report 2001

Eisai Annual Report 2001
Thousands of
Millions of yen U.S. dollars (Note 1)
2001 2000 2001
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Bank borrowings (Note 5) ¥ 7,501 ¥ 7,488 $ 60,492
Current portion of long-term debt (Note 5)
Payables:
10,155 11,551 81,895
Trade notes 1,933 1,554 15,589
Trade accounts 11,592 12,398 93,484
Due to unconsolidated subsidiary and associated companies 1,234 682 9,951
Other 48,812 21,018 393,645
Accrued expenses 43,382 29,417 349,855
Accrued income taxes 22,998 7,955 185,468
Other current liabilities 6,148 4,798 49,581
Total current liabilities 153,755 96,861 1,239,960
Long-Term Liabilities:
Long-term debt (Note 5) 5,847 15,706 47,153
Liability for retirement benefits (Note 7) 33,350 32,622 268,951
Deferred tax liabilities (Note 6) 838 1,114 6,758
Other long-term liabilities 616 472 4,968
Total long-term liabilities 40,651 49,914 327,830
Minority Interests 9,142 9,513 73,726
Contingencies (Note 12)
Shareholders’ Equity (Note 8):
Common stock, ¥50 par value—
authorized, 700,000,000 shares;
issued and outstanding 296,452,988 shares in 2001
and 296,450,675 shares in 2000 44,887 44,885 361,992
Additional paid-in capital 55,124 55,122 444,548
Retained earnings (Note 14) 246,351 229,415 1,986,702
Net unrealized gains on available-for-sale securities 1,005 8,105
Foreign currency translation adjustments (1,456) (11,742)
Treasury stock (15) (36) (121)
Total shareholders’ equity 345,896 329,386 2,789,484
Total ¥549,444 ¥485,674 $4,431,000
25

26
Consolidated Statements of Income
Eisai Co., Ltd. and Consolidated Subsidiaries Thousands of
Millions of yen U.S. dollars (Note 1)
Years ended March 31, 2001 and 2000 2001 2000 2001
Net Sales (Note 9) ¥361,712 ¥302,470 $2,917,032
Cost of Sales (Note 9) 98,468 91,583 794,097
Gross profit 263,244 210,887 2,122,935
Selling, General and Administrative Expenses 154,662 127,050 1,247,274
Research and Development Expenses 49,614 46,704 400,113
Operating income 58,968 37,133 475,548
Other Income (Expenses):
Interest and dividend income 3,188 2,389 25,710
Interest expense (693) (1,136) (5,589)
Foreign exchange gains (losses) 1,467 (1,065) 11,831
Loss on vitamin E settlement (Note12) (2,688) (9,971) (21,677)
Loss on valuation of fixed assets
Gain on securities contributed
(3,364) (27,129)
to the retirement benefit trust
Amortization of transitional obligation
1,383 11,153
for employees’ retirement benefit (15,128) (122,000)
Other—net (295) (1,814) (2,379)
Other expenses—net (16,130) (11,597) (130,080)
Income before Income Taxes and Minority Interests 42,838 25,536 345,468
Income Taxes (Note 6):
Current 33,131 17,413 267,185
Deferred (13,499) (3,213) (108,863)
Total 19,632 14,200 158,322
Minority Interests in Net Income 117 (61) 943
Net Income ¥ 23,323 ¥ 11,275 $ 188,089
Eisai Annual Report 2001
Yen U.S. dollars (Note 1)
Per Share:
Net income ¥78.68 ¥38.04 $0.63
Diluted net income 77.91 37.70 0.63
Cash dividends, applicable to earnings of the year 23.00 21.50 0.19
See Notes to Consolidated Financial Statements.

Consolidated Statements of Shareholders’ Equity
Eisai Co., Ltd. and Consolidated Subsidiaries Thousands of
Millions of yen U.S. dollars (Note 1)
Years ended March 31, 2001 and 2000 2001 2000 2001
Common Stock (Note 8):
Balance, beginning of year ¥ 44,885 ¥ 44,854 $ 361,976
Shares issued upon conversion of bonds 2 31 16
Balance, end of year ¥ 44,887 ¥ 44,885 $ 361,992
Additional Paid-in Capital (Note 8):
Balance, beginning of year ¥ 55,122 ¥ 55,091 $ 444,532
Increase due to conversion of bonds 2 31 16
Balance, end of year ¥ 55,124 ¥ 55,122 $ 444,548
Retained Earnings (Note 8, 14):
Balance, beginning of year
Cumulative effect of deferred taxes on
¥229,415 ¥208,666 $1,850,121
retained earnings at beginning of year 15,966
Net income 23,323 11,275 188,089
Cash dividends paid (6,373) (6,373) (51,395)
Bonuses to directors (14) (115) (113)
Other—decrease (4)
Balance, end of year ¥246,351 ¥229,415 $1,986,702
Net unrealized gains on available-for-sale securities:
Balance, beginning of year
Increase ¥ 1,005 $ 8,105
Balance, end of year ¥ 1,005 $ 8,105
Foreign currency translation adjustments:
Balance, beginning of year
Decrease ¥ (1,456) $ (11,742)
Balance, end of year ¥ (1,456) $ (11,742)
Treasury Stock:
Balance, beginning of year ¥ (36) ¥ (44) $ (290)
Decrease 21 8 169
Balance, end of year ¥ (15) ¥ (36) $ (121)
See Notes to Consolidated Financial Statements.
Eisai Annual Report 2001
27

28
Consolidated Statements of Cash Flows
Eisai Co., Ltd. and Consolidated Subsidiaries Thousands of
Millions of yen U.S. dollars (Note 1)
Years ended March 31, 2001 and 2000 2001 2000 2001
Operating Activities:
Income before income taxes and minority interests ¥ 42,838 ¥25,536 $345,468
Adjustments for:
Income taxes—paid (18,146) (24,791) (146,339)
Depreciation and amortization 15,005 15,135 121,008
Loss on valuation of fixed assets 3,364 27,129
Gain on securities contributed to the retirement benefit trust (1,383) (11,153)
Amortization of transitional obligation
for employees’ retirement benefit 15,128 122,000
Provision for liability for retirement benefits 5,514 4,531 44,468
Changes in assets and liabilities:
(Increase) decrease in trade receivables (5,997) 2,791 (48,363)
(Increase) decrease in inventories 1,721 (3,584) 13,879
(Increase) decrease in interest and dividends receivable (6) 265 (48)
Increase (decrease) in interest payable (82) 190 (661)
Increase (decrease) in trade payables (2,032) 1,537 (16,387)
Increase in accrued expenses 13,890 1,843 112,016
Other 15,182 3,721 122,435
Net cash provided by operating activities 84,996 27,174 685,452
Investing Activities:
Purchases of short-term investments (11,733) (25,075) (94,621)
Proceeds from sales and maturities of short-term investments 20,671 31,607 166,702
Purchases of property, plant and equipment (10,433) (13,022) (84,137)
Proceeds from sales of property, plant and equipment 1,009 1,092 8,137
Purchases of intangible assets (3,485) (3,281) (28,105)
Purchases of investment securities (29,149) (534) (235,073)
Proceeds from sales and maturities of investment securities 14,056 221 113,355
(Increase) decrease in time deposits (exceeding 3 months) (1,743) 3,046 (14,056)
Other 1,255 1,902 10,121
Net cash used in investing activities
Financing Activities:
(19,552) (4,044) (157,677)
Increase (decrease) in short-term bank borrowings (34) 1,113 (274)
Proceeds from long-term debt 345 200 2,782
Repayment of long-term debt (1,596) (59) (12,871)
Corporate bond repayment (10,000) (10,200) (80,645)
Dividends paid (6,373) (6,373) (51,395)
Other (55) (38) (444)
Net cash used in financing activities (17,713) (15,357) (142,847)
Effect of exchange rate changes on cash and cash equivalents 6,051 (2,446) 48,798
Net increase in cash and cash equivalents
Cash and cash equivalents of newly
53,782 5,327 433,726
consolidated subsidiaries at beginning of year 310
Cash and cash equivalents at beginning of year 52,556 46,919 423,839
Cash and cash equivalents at end of year ¥106,338 ¥52,556 $857,565
Non-Cash Financing Activities:
Conversion of convertible bonds to common stock
Assets increased by consolidation of
¥ 4 ¥ 63 $ 32
subsidiaries previously unconsolidated
Liabilities increased by consolidation of
1,557
subsidiaries previously unconsolidated
See Notes to Consolidated Financial Statements.
723
Eisai Annual Report 2001

Eisai Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2001 and 2000
Notes to Consolidated Financial Statements
Note 1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements of Eisai Co., Ltd. (the “Company”) and its consolidated subsidiaries have been
prepared in accordance with the provisions set forth in the Japanese Securities and Exchange Law and its related accounting regulations,
and in conformity with accounting principles and practices generally accepted in Japan, which are different in certain respects as
to application and disclosure requirements of International Accounting Standards. The consolidated financial statements are not
intended to present the financial position, results of operations and cash flows in accordance with accounting principles and practices
generally accepted in countries and jurisdictions other than Japan.
In preparing the consolidated financial statements, certain reclassifications and rearrangements have been made to the consolidated
financial statements issued domestically in order to present them in a form which is more familiar to readers outside Japan. In
accordance with accounting procedures generally accepted in Japan, certain comparative disclosures are not required to be and have
not been presented herein.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which the Company is incorporated
and principally operates. The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience
of readers outside Japan and have been made at the rate of ¥124 to $1, the approximate rate of exchange at March 31, 2001.
Such translations should not be construed as representations that the Japanese yen amounts could be converted into U.S. dollars at
that or any other rate.
Certain reclassifications have been made in the 2000 consolidated financial statements to conform to the classifications used in
2001. These reclassifications had no effect on previously reported net income or retained earnings.
Note 2. Significant Accounting Policies
(a) Consolidation
The consolidated financial statements as of March 31, 2001 include the accounts of the Company and all its subsidiaries (35
significant subsidiaries in 2000) (collectively, the “Group”).
Under the control or influence concept, those companies in which the Company, directly or indirectly, is able to exercise control
over operations are fully consolidated, and those companies over which the Group has the ability to exercise significant influence are
accounted for by the equity method.
Investments of ¥338 million in associated companies (¥139 million in an unconsolidated subsidiary and ¥356 million in associated
companies in 2000) are accounted for by the equity method.
Prior to April 1, 1999, the excess of the cost of the Company’s investments in consolidated subsidiaries, an unconsolidated
subsidiary and associated companies accounted for by the equity method over its equity in the net assets at the respective dates of
acquisition, is being amortized over a period of five years.
Effective April 1, 1999, the excess of the cost of an acquisition over the fair value of the net assets of the acquired subsidiaries at
the date of acquisition is being amortized over a period of five years.
All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealized profit
included in assets resulting from transactions within the Group is eliminated.
(b) Cash equivalents
Cash equivalents are short-term investments that are readily convertible into cash and that are exposed to insignificant risk of changes
in value. Cash equivalents include time deposits, certificates of deposit, commercial paper and mutual funds investing in bonds that
represent short-term investment, all of which mature or become due within three months of the date of acquisition.
(c) Short-term investments and investment securities
Prior to April 1, 2000, marketable and investment securities listed on stock exchanges were stated at the lower of cost, determined by
the moving average method, or market.
Effective April 1, 2000, the Company and its consolidated domestic subsidiaries adopted a new accounting standard for financial
instruments, including marketable and investment securities. The standard requires all applicable securities to be classified and
accounted for, depending on management’s intent, as follows:
i) trading securities, which are held for the purpose of earning capital gains in near term are reported at fair value, and the related
unrealized gains and losses are included in the earnings, ii) held-to-maturity debt securities, which are expected to be held to maturity
with the positive intent and ability to hold to maturity are reported at amortized cost and iii) available-for-sale securities, which are not
classified as either of the aforementioned securities, are reported at fair value, with unrealized gains and losses, net of applicable taxes,
reported in a separate component of shareholders’ equity.
The effect of adoption of the new standard was to increase income before income taxes and minority interests by ¥2,605 million
($21,008 thousand). Marketable securities classified as current assets decreased by ¥76,091 million ($613,637 thousand) and
investment securities increased by the same amount as of April 1, 2000.
(d) Inventories
Inventories are primarily stated at cost, determined by the weighted average method.
Eisai Annual Report 2001
29

30
(e) Property, plant and equipment
Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment of the Company and its consolidated
domestic subsidiaries is computed substantially by the declining-balance method at rates based on the estimated useful lives of the
assets, while the straight-line method is principally applied to the property, plant and equipment of consolidated foreign subsidiaries.
The range of useful lives of the Company and its consolidated domestic subsidiaries is principally from 15 to 65 years for buildings and
from 6 to 7 years for machinery and equipment.
(f) Leases
Leases related to the Company and its consolidated domestic subsidiaries are accounted for as operating leases. Under Japanese
accounting standards for leases, finance leases that deem to transfer ownership of the leased property to the lessee are to be capitalized,
while other finance leases are permitted to be accounted for as operating lease transactions if certain “as if capitalized” information
is disclosed in the notes to the lessee’s financial statements.
(g) Income taxes
The provision for income taxes is computed based on the pretax income included in the consolidated statements of income. The asset
and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary
differences between the carrying amounts and the tax bases of assets and liabilities. Deferred taxes are measured by applying currently
enacted tax rates to the temporary differences.
(h) Retirement and Pension Plans
Under the employees’ retirement plans for the Company and certain consolidated subsidiaries, prior to April 1, 2000, the annual
provision for retirement benefits is calculated to state the liability for employees principally at the amount that would be required if all
employees voluntarily terminated their employment at each balance sheet date, less amounts funded by a contributory pension plan
disregarding a portion specified by government regulations
Effective April 1, 2000, the Company and its consolidated domestic subsidiaries adopted a new accounting standard for employees’
retirement benefits and accounted for the liability for retirement benefits based on the projected benefit obligations and plan
assets at the balance sheet date.
The transitional obligation in the amount of ¥32,358 million ($260,952 thousand), determined as of the beginning of year in the
Company, was offset by the contribution of certain available-for-sale securities with a fair value of ¥15,128 million ($122,000 thousand)
to the employee retirement benefit trusts for the Company’s contributory pension plans in April 2000, and a related non-cash gain of
¥1,383 million ($11,153 thousand) was recorded as “Gain on securities contributed to the retirement benefit trust”. The securities held
in this trust are qualified as plan assets. The remaining unfunded balance of ¥17,230 million ($138,952 thousand) as well as ¥772
million ($6,226 thousand) of the transitional obligaiton in the consolidated subsidiaries is being amortized over 5 years and charged to
income and presented as operating expenses in the statements of income. As a result, net periodic retirement benefit costs as
compared with the prior method, increased by ¥13,857 million ($111,750 thousand) and income before income taxes and minority
interests decreased by ¥14,006 million ($112,952 thousand).
Retirement benefits to directors and corporate auditors are provided at the amount which would be required if all directors and
corporate auditors retired at the balance sheet date.
(i) Appropriations of retained earnings
Appropriations of retained earnings are reflected in the financial statements for the following year upon shareholders’ approval.
(j) Research and development expenses
Research and development expenses are charged to income as incurred.
(k) Deferred charges
Stock issuance costs and start-up costs are charged to income as incurred.
Prior to April 1, 2000, certain subsidiaries capitalized start-up costs as deferred charges. Effective April 1, 2000, however, all the
start-up costs were charged to income to unify accounting policies of the Gourp. The effect of this change was to decrease income
before income taxes and minority interests for the year ended March 31, 2001, by ¥302 million ($2,435 thousand).
(l) Foreign currency transactions
Prior to April 1, 2000, short-term receivables and payables denominated in foreign currencies were translated into Japanese yen at the
current exchange rates at each balance sheet date, while long-term receivables and payables denominated in foreign currencies were
translated at historical rates.
Effective April 1, 2000, the Group adopted a revised accounting standard for foreign currency transactions. In accordance with the
revised standard, all short-term and long-term monetary receivables and payables denominated in foreign currencies are translated
into Japanese yen at the exchange rates at the balance sheet date. The foreign exchange gains and losses from translation are
recognized in the income statement to the extent that they are not hedged by forward exchange contracts.
(m) Foreign currency financial statements
The balance sheet accounts of the consolidated foreign subsidiaries are translated into Japanese yen at the current exchange rates as
of the balance sheet date except for shareholders’ equity, which is translated at the historical rate.
Prior to April 1, 2000, differences arising from such translation were shown as “Foreign currency translation adjustments” as either
all asset or liability in the consolidated balance sheet.
Effective April 1, 2000, such differences are shown as “Foreign currency translation adjustments” in a separate component of
shareholders’ equity in accordance with the revised accounting standard for foreign currency transactions.
Revenue and expense accounts of the consolidated foreign subsidiaries are translated into yen at the average exchange rates.
Eisai Annual Report 2001

(n) Derivatives and Hedging Activities
The Group uses derivative financial instruments to manage its exposures to fluctuations in foreign exchange. Foreign exchange forward
contracts are utilized by the Group to reduce foreign currency exchange risks. The Group does not enter into derivatives for trading or
speculative purposes.
Effective April 1, 2000, the Group adopted a new accounting standard for derivative financial instruments and a revised accounting
standard for foreign currency transactions. These standards require that: a) all derivatives be recognized as either assets or liabilities
and measured at fair value, and gains or losses on derivative transactions are recognized in the income statement and b) for derivatives
used for hedging purposes, if derivatives qualify for hedge accounting because of high correlation and effectiveness between the
hedging instruments and the hedged items, gains or losses on derivatives are deferred until maturity of the hedged transactions.
The foreign exchange forward contracts employed to hedge foreign exchange exposures for export sales and contract research are
measured at the fair value and the unrealized gains / losses are recognized in income. Forward contracts applied for forecasted (or
committed) transactions are also measured at the fair value but the unrealized gains / losses are deferred until the underlying
transactions are completed.
Effect on income before income taxes and minority interests of adopting the new accounting standards for derivative financial
instruments was immaterial.
(o) Per share information
The computation of net income per share is based on the weighted average number of shares of common stock outstanding during
each year, retroactively adjusted for stock splits. The weighted average number of common shares used in the computation was
296,433,302 shares for 2001 and 296,422,817 shares for 2000.
Diluted net income per share of common stock assumes full conversion of the outstanding convertible bonds at the beginning of
the year with an applicable adjustment for related interest expense, net of tax.
Cash dividends per share presented in the accompanying consolidated statements of income are dividends applicable to the
respective years including dividends to be paid after the end of the year.
Note 3. Investments
Marketable and investment securities as of March 31, 2001 and 2000, consisted of the following:
Millions of yen
Thousands of
U.S. dollars
2001 2000 2001
Current:
Marketable equity securities ¥33,063
Government and corporate bonds ¥11,532 9,103 $ 93,000
Trust fund investments and other 598 9,153 4,823
Total ¥12,130 ¥51,319 $ 97,823
Non-current:
Marketable equity securities ¥24,844 ¥4,064 $200,355
Government and corporate bonds 38,672 8 311,871
Trust fund investments and other 11,901 95,976
Total ¥75,417 ¥4,072 $608,202
Information regarding each category of the securities classified as available-for-sale and held-to-maturity at March 31, 2001 was as
follows:
Millions of yen Thousands of U.S. dollars
2001 2001
Unrealized Unrealized Fair Unrealized Unrealized Fair
Cost Gains Losses Value Cost Gains Losses Value
Securities classified as:
Available-for-sale:
Equity securities ¥23,136 ¥4,674 ¥(2,966) ¥24,844 $186,581 $37,693 $(23,919) $200,355
Debt securities
Trust fund investments
270 7 277 2,177 57 2,234
and other 12,516 66 (83) 12,499 100,936 532 (669) 100,799
Held-to-maturity 49,927 214 (602) 49,539 402,637 1,726 (4,855) 399,508
Availabe-for-sale securities and held-to-maturity securities whose fair value is not readily determinable as of March 31, 2001 were
as follows:
Carrying amount
Thousands of
Millions of yen U.S. dollars
Available-for-sale:
Equity securities ¥1,489 $12,008
Total ¥1,489 $12,008
Eisai Annual Report 2001
31

32
Proceeds from sales of available-for-sale securities for the year ended March 31, 2001 were ¥958 million ($7,726 thousand). Gross
realized gains on these sales, computed on the moving average cost basis, were ¥159 million ($1,282 thousand) .
The carrying values of debt securities by contractual maturities for securities classified as available-for-sale and held-to-maturity at
March 31, 2001 are as follows:
Millions of yen Thousands of U.S. dollars
Available Held to Available Held to
for Sale Maturity for Sale Maturity
Due in one year or less ¥266 ¥11,266 $2,145 $ 90,855
Due after one year through five years 11 19,508 89 157,322
Due after five years through ten years 19,153 154,460
Total ¥277 ¥49,927 $2,234 $402,637
Carrying amounts and aggregate market values of current and non-current marketable equity securities included in short-term
investments and investment securities at March 31, 2000 were as follows:
Millions of yen
Carrying Aggregate Unrealized
amount market value gain
Current ¥33,063 ¥39,557 ¥6,494
Non-current 4,064 5,179 1,115
Total ¥37,127 ¥44,736 ¥7,609
The difference between the above carrying amounts and the amounts shown in the accompanying consolidated balance sheets
principally consists of securities for which there is no readily-available market from which to obtain or calculate the market value
thereof.
Note 4. Inventories
Inventories at March 31, 2001 and 2000, consisted of the following:
Eisai Annual Report 2001
Millions of yen
Thousands of
U.S. dollars
2001 2000 2001
Merchandise and finished goods ¥17,238 ¥17,286 $139,016
Work in process and semi-finished goods 9,379 10,562 75,637
Raw materials and supplies 7,105 6,141 57,299
Total ¥33,722 ¥33,989 $271,952
Note 5. Bank Borrowings and Long-Term Debt
Bank borrowings are represented by principally unsecured bank loans with a weighted average interest rate of 1.25% and 1.08% at
March 31, 2001 and 2000, respectively.
Long-term debt at March 31, 2001 and 2000, consisted of the following:
Thousands of
Millions of yen U.S. dollars
2001 2000 2001
Unsecured borrowings from banks due through 2005,
with interest rates ranging from 1.20% to 1.31%
Secured borrowings from banks due through 2002,
¥ 350 ¥ 1,553 $ 2,823
with interest rates of 1.90% 67 115 540
1.50% secured Japanese yen straight bonds, due 2004 100 100 806
2.10% unsecured Japanese yen straight bonds, due 2000 10,000
2.40% unsecured Japanese yen straight bonds, due 2001 10,000 10,000 80,645
0.60% unsecured Japanese yen convertible bonds, due 2003 5,485 5,489 44,234
Total 16,002 27,257 129,048
Less current portion of long-term debt 10,155 11,551 81,895
Total ¥ 5,847 ¥15,706 $ 47,153
Most bond agreements prohibit the Company from entering into liens or mortgages for other bank borrowings and long-term debt
without providing the same or similar collateral to the bondholders as long as the bonds remain outstanding.
At March 31, 2001, land and buildings of certain subsidiaries of the Company with a total net book value of ¥1,262 million
($10,177 thousand) were pledged as collateral for short term bank borrowings of ¥290 million ($2,339 thousand), the 1.90% secured
borrowings of ¥67 million ($540 thousand) and the 1.50% secured Japanese yen straight bonds of ¥100 million ($806 thousand).
The conversion price of the 0.60% unsecured Japanese yen convertible bonds was ¥1,728.60 ($13.94) per share, subject to
adjustments to reflect stock splits and certain other events. Convertible bonds outstanding at March 31, 2001 were convertible into
3,173,088 shares of common stock.

Maturities of long-term debt are as follows:
Years ending March 31 Millions of yen
Thousands of
U.S. dollars
2002 ¥10,155 $ 81,895
2003 5,567 44,895
2004 160 1,290
2005 60 484
2006 60 484
Total ¥16,002 $129,048
Note 6. Income Taxes
Income taxes applicable to the Company and its domestic subsidiaries, including corporation, inhabitants and enterprise taxes,
resulted in aggregate normal effective statutory tax rates of 41.7% and 41.6% for the years ended March 31, 2001 and 2000,
respectively.
The tax effect of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at
March 31, 2001 and 2000, are as follows:
Thousands of
Millions of yen U.S. dollars
2001 2000 2001
Deferred tax assets:
Liability for retirement benefits ¥ 9,299 ¥ 8,350 $ 74,992
Amortization of transitional obligation for employees’ retirement benefits 5,732 46,226
Clinical research expenses 4,503 3,766 36,315
Tax loss carryforwards 4,166 3,814 33,597
Unrealized gain on intercompany sales of inventory 3,174 2,144 25,597
Depreciation 2,190 2,788 17,661
Unpaid enterprise taxes 2,036 735 16,419
Accrued bonuses 1,896 1,257 15,290
Losses on valuation of fixed assets 1,508 12,161
Tax credits 1,458 841 11,758
Other 6,815 2,994 54,960
Less valuation allowance (4,184) (3,351) (33,742)
Total 38,593 23,338 311,234
Deferred tax liabilities:
Depreciation 2,715 1,174 21,895
Land 896 896 7,226
Net unrealized gains on available-for-sale securities 707 5,702
Retained earnings for reduction of fixed assets costs 668 677 5,387
Other 42 221 339
Total 5,028 2,968 40,549
Net deferred tax assets ¥33,565 ¥20,370 $270,685
A reconciliation between the normal effective statutory tax rates for the years ended March 31, 2001 and 2000, and the actual
effective tax rates reflected in the accompanying consolidated statements of income is as follows:
2001 2000
Normal effective statutory tax rate 41.7% 41.6%
Expenses not deductible for income tax purposes 3.1% 13.1%
Increase in valuation allowance 1.6% 2.9%
Others—net (0.6%) (2.0%)
Actual effective tax rate 45.8% 55.6%
At March 31, 2001, certain subsidiaries have tax loss carryforwards aggregating approximately ¥11,165 million ($90,040 thousand)
which are available to be offset against taxable income of such subsidiaries in future years. These tax loss carryforwards, if not
utilized, will expire as follows:
Thousands of
Years ending March 31 Millions of yen U.S. dollars
2002 ¥ 9 $ 73
2003 601 4,847
2004 1,286 10,371
2005 704 5,677
2006 1,338 10,790
2007 and thereafter 7,227 58,282
Total ¥11,165 $90,040
Eisai Annual Report 2001
33

34
Note 7. Retirement and Pension Plans
The Company and certain consolidated subsidiaries have severance payment plans for employees, directors and corporate auditors.
Under most circumstances, employees terminating their employment are entitled to retirement benefits determined based on the
rate of pay at the time of termination, years of service and certain other factors. Such retirement benefits are made in the form of a
lump-sum severance payment from the Company or from certain consolidated subsidiaries and/or annuity payments from a trustee.
Employees are entitled to larger payments if the termination is involuntary, by retirement at the mandatory retirement age, by death, or
by voluntary retirement at certain specific ages prior to the mandatory retirement age. The liability for retirement benefits at March 31,
2001 for directors and corporate auditors is ¥1,946 million ($15,693 thousand). The retirement benefits for directors and corporate
auditors are paid subject to the approval of the shareholders.
Effective April 1, 2000, the Company and its consolidated domestic subsidiaries adopted a new accounting standard for
employees’ retirement benefits.
The liability for employees’ retirement benefits at March 31, 2001 consisted of the followings:
Thousands of
Millions of yen U.S. dollars
Projected benefit obligation ¥131,937 $1,064,008
Fair value of plan assets (82,053) (661,718)
Unrecognized transitional obligation (14,401) (116,137)
Unrecognized actuarial loss (17,963) (144,863)
Unrecognized prior service cost 13,884 111,968
Net liability ¥ 31,404 $ 253,258
The components of net periodic retirement benefit costs for the year ended March 31, 2001 are as follows:
Millions of yen
Thousands of
U.S. dollars
Service cost ¥ 5,670 $ 45,726
Interest cost 4,735 38,186
Expected return on plan assets (2,987) (24,089)
Amortization of transitional obligation 18,728 151,032
Amortization of prior service cost (1,543) (12,444)
Contribution and others 390 3,145
Net periodic retirement benefit costs ¥24,993 $201,556
Assumptions used for the year ended March 31, 2001 are set forth as follows:
Discount rate 3.5%
Expected rate of return on plan assets 4.0%
Amortization period of prior service cost 5 years
Recognition period of actuarial gain / loss 5 years
Amortization period of transitional obligation 5 years
The amount contributed to the fund and charged to income for the year ended March 31, 2000 was ¥4,050 million.
Note 8. Shareholders’ Equity
Common Stock and Additional Paid-in Capital
The changes in the number of issued shares of common stock during the years ended March 31, 2001 and 2000, were as follows:
2001 2000
Balance, beginning of year 296,450,675 296,414,231
Shares issued upon conversion of bonds 2,313 36,444
Balance, end of year 296,452,988 296,450,675
Under the Japanese Commercial Code (the “Code”), an amount comprising at least 50% of the issue price of new shares, with a
minimum of the par value thereof, is required to be designated as stated capital. The portion which is designated as stated capital is
determined by resolution of the Board of Directors. Proceeds in excess of amounts designated as stated capital are credited to
additional paid-in capital.
Under the Code, the Company may issue new shares of common stock to the existing shareholders without consideration, by
resolution of the Board of Directors, to the extent that the amount calculated by multiplying the number of outstanding shares after the
issuance by par value per share does not exceed the stated capital, and that the amount calculated by dividing the total amount of
shareholders’ equity by the number of outstanding shares after the issuance shall not be less than ¥50. These issuances of the new
shares are treated as stock splits.
Retained Earnings
The Code provides that an amount at least equal to 10% of the aggregate amount of cash dividends and certain other cash payments
which are made as appropriation of the retained earnings applicable to each fiscal period shall be aprropriated and set aside as a legal
reserve until such reserve equals 25% of the stated capital. This reserve amount, which is included in retained earnings, totals ¥7,622
million ($61,468 thousand) and ¥6,948 million as of March 31, 2001 and 2000, respectively, and is not available for dividends but
may be used to reduce a deficit by resolution of the shareholders.
Eisai Annual Report 2001

The amount available for dividends under the Code is based on retained earnings excluding legal reserve as recorded on the books
of the Company. At March 31, 2001, retained earnings of the Company included ¥219,005 million ($1,766,169 thousand), which was
designated as both general and special reserves but available for future dividends subject to approval by the shareholders and legal
reserve requirements.
Year-end dividends are approved by the shareholders at a meeting held subsequent to the fiscal year to which the dividends are
applicable. In addition, a semiannual dividend may be paid upon resolution of the Board of Directors, subject to certain limitations
imposed by the Code.
Stock option plan for the Company’s directors and applicable persons
The Company’s nine Board of Directors’ members were allocated options for a maximum of 69,000 new common stocks and 17 other
applicable persons in the Company will be allocated options for a maximum of 78,000 new common stocks.
After the date of the option grant, in the event that a stock split or a consolidation of stocks occurs, an adjustment in stock options
granted will be made in accordance with the rate of stock split or stock consolidation. In addition, after the date of the stock option
grant, in the event the Company merges or consolidates with another company, the number of options granted will be adjusted as
deemed necessary.
The stock option exercise price of the newly issued stock for the purpose of the stock option is ¥3,090 ($24.92).
After the date of the option grant, in the event of a stock split or stock consolidation, the stock option excercise price will be
adjusted according to the percentage change with amounts of less than one yen being rounded up.
In addition, after the stock option grant, if the Company issues new stocks at the price less than the current price on the market
(excluding new stock issuance for convertible bonds redemption, warrants with pre-emptive rights and the application of the Code 280-
19), the exercise price will be adjusted with amounts of less than one yen being rounded up.
Such stock options can be exercised from September 1, 2000 to June 29, 2010.
Note 9. Transactions with an Unconsolidated Subsidiary and Associated Companies
Transactions of the Group with an unconsolidated subsidiary and associated companies which are mainly engaged in the sales and
purchases of pharmaceuticals for the years ended March 31, 2001 and 2000, are summarized as follows:
Thousands of
Millions of yen U.S. dollars
2001 2000 2001
Sales ¥ 113 ¥ 320 $ 911
Purchases 6,173 6,370 49,782
Note 10. Leases
The Group leases certain equipment, computers, office space and other assets.
(a) Pro forma information concerning leased property of financial leases that do not transfer ownership of the leased property to the
lessee on an “as if capitalized” basis for the years ended March 31, 2001 and 2000, was as follows:
I. Acquisition cost, Accumulated depreciation, Net leased property
Millions of yen Thousands of U.S. dollars
2001 2001
Buildings Machinery Buildings Machinery
and structures and equipment Total and structures and equipment Total
Acquisition cost ¥3 ¥4,646 ¥4,649 $24 $37,468 $37,492
Accumulated depreciation 1 2,809 2,810 8 22,653 22,661
Net leased property ¥2 ¥1,837 ¥1,839 $16 $14,815 $14,831
Millions of yen
2000
Buildings Machinery
and structures and equipment Total
Acquisition cost ¥3 ¥5,706 ¥5,709
Accumulated depreciation 1 3,010 3,011
Net leased property ¥2 ¥2,696 ¥2,698
II. Obligations under finance leases
Eisai Annual Report 2001
Millions of yen
Thousands of
U.S. dollars
2001 2000 2001
Due within one year ¥ 841 ¥1,207 $ 6,782
Due after one year 1,022 1,541 8,242
Total ¥1,863 ¥2,748 $15,024
35

36
III. Actual lease payments, Depreciation expense, Interest expense under finance leases
Eisai Annual Report 2001
Thousands of
Millions of yen U.S. dollars
2001 2000 2001
Actual lease payments ¥1,343 ¥1,566 $10,831
Depreciation expense 1,230 1,505 9,919
Interest expense 83 109 669
Depreciation expense for leased assets, which is not reflected in the accompanying statements of income, is computed using the
straight-line method over the estimated useful lives of the leased assets.
Interest expense for leased assets, which is not reflected in the accompanying statements of income, is computed using the
interest method based on the differences between the lease fees and the respective acquisition cost of the assets which are considered
to be interest-bearing.
(b) The minimum rental payments under noncancelable operating leases at March 31, 2001 and 2000, were as follows:
Millions of yen
Thousands of
U.S. dollars
2001 2000 2001
Due within one year ¥ 749 ¥ 641 $ 6,040
Due after one year 2,178 1,920 17,565
Total ¥2,927 ¥2,561 $23,605
Note 11. Derivatives
The Group enters into foreign currency forward contracts to hedge foreign exchange risk associated with certain assets and liabilities
for export sales and contract research denominated in foreign currencies.
All derivative transactions are entered into to hedge foreign currency exposures incorporated within its business. Accordingly,
market risk in these derivatives is basically offset by opposite movements in the value of hedge assets or liabilities. The Group does not
hold or issue derivatives for trading purposes.
Because the counterparties to these derivatives are limited to major international financial institutions, the Group does not
anticipate any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies which regulate the
authorization and credit limit amount.
The Group had the following derivatives contracts outstanding at March 31, 2001 and 2000.
Millions of yen Thousands of U.S. dollars
2001 2001
Contract Fair Unrealized Contract Fair Unrealized
amount value gain (loss) amount value gain (loss)
Foreign currency forward contracts:
Buying Japanese yen ¥7,515 ¥6,313 ¥(1,202) $60,605 $50,911 $(9,694)
Selling U. S. dollar 7,199 7,700 (501) 58,057 62,097 (4,040)
Millions of yen
Contract
2000
Fair Unrealized
amount value gain (loss)
Foreign currency forward contracts:
Buying Japanese yen ¥5,248 ¥5,635 ¥387
Foreign currency forward contracts amounts which are assigned to associated assets or liabilities and are reflected on the
consolidated balance sheet at March 31, 2000, and are not subject to the disclosure of market value information.
Note 12. Contingencies
The Group was contingently liable under guarantees, primarily for housing loans to employees made by third parties and the factoring
contract with a bank for certain trade accounts payables, of ¥1,685 million ($13,589 thousand) at March 31, 2001.
The Group was also contingently liable for trade notes discounted with banks in the amount of ¥447 million ($3,605 thousand) at
March 31, 2001. The banks retain a right of recourse against the Group in the event of nonpayment by customers. The Company’s
management believes that the likelihood of such banks exercising recourse is remote.
The loss on Vitamin E settlement of ¥2,688 million ($21,677 thousand) were associated with civil settlement reached with indirect
purchasers of synthetic vitamin E in the United States. Additional information on this issue regarding damages compensation is not
available. The European Commission is continuing an investigation and future losses related to vitamin E cases could not be estimated.

Note 13. Segment Information
The Group operates in the following industries:
Pharmaceuticals, including prescription pharmaceuticals, consumer health care products and diagnostics; and Other, which
encompasses other operations, such as chemicals, food additives, veterinary and livestock feed products and pharmaceutical
production systems and equipment.
(a) Information about industry segments for the years ended March 31, 2001 and 2000, was as follows:
Millions of yen Thousands of U.S. dollars
2001 2001
Eliminations Eliminations
Pharmaceuticals Other (corporate) Consolidated Pharmaceuticals Other (corporate) Consolidated
I. Sales and operating income
Net sales to customers ¥334,251 ¥27,461 ¥361,712 $2,695,572 $221,460 $2,917,032
Intersegment sales 94 10,575 ¥ (10,669) 758 85,282 $ (86,040)
Total net sales 334,345 38,036 (10,669) 361,712 2,696,330 306,742 (86,040) 2,917,032
All operating expenses 265,588 40,785 (3,629) 302,744 2,141,839 328,911 (29,266) 2,441,484
Operating income (loss) ¥ 68,757 ¥ (2,749) ¥ (7,040) ¥ 58,968 $ 554,491 $ (22,169) $ (56,774) $ 475,548
II. Assets, depreciation and amortization and capital expenditures
Assets ¥390,296 ¥32,230 ¥126,918 ¥549,444 $3,147,549 $259,919 $1,023,532 $4,431,000
Depreciation and amortization 13,358 1,091 556 15,005 107,726 8,798 4,484 121,008
Capital expenditures 13,079 1,318 603 15,000 105,476 10,629 4,863 120,968
Millions of yen
2000
Eliminations
Pharmaceuticals Other (corporate) Consolidated
I. Sales and operating income
Net sales to customers ¥270,872 ¥31,598 ¥302,470
Intersegment sales 61 9,412 ¥ (9,473)
Total net sales 270,933 41,010 (9,473) 302,470
All operating expenses 224,999 42,129 (1,791) 265,337
Operating income (loss) ¥ 45,934 ¥ (1,119) ¥ (7,682) ¥ 37,133
II. Assets, depreciation and amortization and capital expenditures
Assets ¥332,185 ¥36,397 ¥117,092 ¥485,674
Depreciation and amortization 13,614 1,011 510 15,135
Capital expenditures 14,381 853 1,069 16,303
(b) Segment information by geographic area for the years ended March 31, 2001 and 2000, was as follows:
Millions of yen
2001
North Asia Eliminations
Japan America Europe and Others (corporate) Consolidated
Net sales to customers ¥241,012 ¥101,783 ¥14,294 ¥4,623 ¥361,712
Intersegment sales 32,747 10,818 1,508 150 ¥(45,223)
Total net sales 273,759 112,601 15,802 4,773 (45,223) 361,712
All operating expenses 207,807 110,042 15,179 4,330 (34,614) 302,744
Operating income ¥ 65,952 ¥ 2,559 ¥ 623 ¥ 443 ¥(10,609) ¥ 58,968
Assets ¥364,939 ¥ 99,672 ¥14,608 ¥6,437 ¥ 63,788 ¥549,444
Eisai Annual Report 2001
Thousands of U.S. dollars
2001
North Asia Eliminations
Japan America Europe and Others (corporate) Consolidated
Net sales to customers $1,943,645 $820,831 $115,274 $37,282 $2,917,032
Intersegment sales 264,089 87,242 12,161 1,210 $(364,702)
Total net sales 2,207,734 908,073 127,435 38,492 (364,702) 2,917,032
All operating expenses 1,675,863 887,436 122,411 34,919 (279,145) 2,441,484
Operating income $ 531,871 $ 20,637 $ 5,024 $ 3,573 $ (85,557) $ 475,548
Assets $2,943,057 $803,807 $117,806 $51,911 $ 514,419 $4,431,000
37

38
Eisai Annual Report 2001
Millions of yen
2000
North Asia Eliminations
Japan America Europe and Others (corporate) Consolidated
Net sales to customers ¥223,529 ¥64,614 ¥11,541 ¥2,786 ¥302,470
Intersegment sales 23,297 9,394 1,522 208 ¥(34,421)
Total net sales 246,826 74,008 13,063 2,994 (34,421) 302,470
All operating expenses 199,737 74,471 14,061 2,903 (25,835) 265,337
Operating income (loss) ¥ 47,089 ¥ (463) ¥ (998) ¥ 91 ¥ (8,586) ¥ 37,133
Assets ¥345,514 ¥55,074 ¥14,095 ¥6,524 ¥(64,467) ¥485,674
(c) Overseas sales for the years ended March 31, 2001 and 2000 were as follows:
Millions of yen Thousands of U.S. dollars
2001 2001
North Asia North Asia
America Europe and Others Total America Europe and Others Total
Overseas sales ¥105,703 ¥19,073 ¥7,305 ¥132,081 $852,444 $153,814 $58,911 $1,065,169
Consolidated sales 361,712 2,917,032
Share of overseas sales 29.2%. 5.3%. 2.0%. 36.5%.
Millions of yen
2000
North Asia
America Europe and Others Total
Overseas sales ¥67,363 ¥16,360 ¥6,621 ¥ 90,344
Consolidated sales 302,470
Share of overseas sales 22.3%. 5.4%. 2.2%. 29.9%.
Note 14. Subsequent Events
(a) At the General Shareholders’ Meeting held on June 28, 2001, the shareholders of the Company authorized the following appropriations
of retained earnings at March 31, 2001.
Thousands of
Years ending March 31 Millions of yen U.S. dollars
Year-end cash dividends ¥13.00 ($0.10) per share ¥3,854 $31,081
Transfer to legal reserve 400 3,226
Bonuses to board of directors 87 702
(b) At the General Shareholders’ Meeting held on June 28, 2001, the Company’s shareholders approved the stock option plan for the
Company’s directors and applicable persons. The Company’s seven Board of Directors’ members will be allocated options for a
maximum of 62,000 new stocks and 35 other applicable persons in the Company will be allocated options for a maximum of 118,000
new stocks. Such stock option can be exercised from September 3, 2001 to June 28, 2011.

To the Board of Directors and Shareholders of Eisai Co., Ltd.
We have examined the consolidated balance sheets of Eisai Co., Ltd. and consolidated subsidiaries as of March 31,
2001 and 2000, and the related consolidated statements of income, shareholders’ equity, and cash flows for the years
then ended, all expressed in Japanese yen. Our examinations were made in accordance with auditing standards,
procedures and practices generally accepted and applied in Japan and, accordingly, included such tests of the
accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the consolidated financial statements referred to above present fairly the financial position of Eisai
Co., Ltd. and consolidated subsidiaries as of March 31, 2001 and 2000, and the results of their operations and their
cash flows for the years then ended in conformity with accounting principles and practices generally accepted in Japan
applied on a consistent basis.
As discussed in Note 2, effective April 1, 2000, the consolidated financial statements have been prepared in
accordance with new accounting standards for employees’ retirement benefits and financial instruments.
Our examinations also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made in conformity with the basis stated in Note 1. Such U.S. dollar amounts are
presented solely for the convenience of readers outside Japan.
Tokyo, Japan
June 28, 2001
Independent Auditors’ Report
Eisai Annual Report 2001
39

40
JAPAN AND OVERSEAS OPERATIONS
North America
Eisai Corporation of North America
Glenpointe Centre West, 5th Floor
500 Frank W. Burr Boulevard
Teaneck, New Jersey 07666, U.S.A.
Tel: 1-201-692-1100 Fax: 1-201-692-1804
Eisai Research Institute of Boston, Inc.
1 Corporate Drive
Andover, Massachusetts 01810-2441, U.S.A.
Tel: 1-978-794-1117 Fax: 1-978-794-4910
Eisai U.S.A., Inc.
Marathon Oil Tower, Suite 690
5555 San Felipe Road
Houston, Texas 77056, U.S.A.
Tel: 1-713-621-9030 Fax: 1-713-621-9095
Eisai Inc.
Glenpointe Centre West, 5th Floor
500 Frank W. Burr Boulevard
Teaneck, New Jersey 07666, U.S.A.
Tel: 1-201-692-1100 Fax: 1-201-692-1804
Europe
Eisai London Research Laboratories, Ltd.
Bernard Katz Building, University College London
Gower Street, London WC1E 6BT, U.K.
Tel: 44-20-7388-4746 Fax: 44-20-7413-1121
Eisai Ltd.
Hammersmith International Centre
3 Shortlands, 2nd Floor
London W6 8EE, U.K.
Tel: 44-20-8600-1400 Fax: 44-20-8600-1401
Eisai Pharma-Chem Europe Ltd.
3000 Hillswood Drive Hillswood Business Park
Chertsey
Surrey KT16 ORS, U.K.
Tel: 44-20-8741-1330 Fax: 44-20-8913-0019
Eisai GmbH
Lyoner Strasse 14
D-60528 Frankfurt am Main, Germany
Tel: 49-69-665850 Fax: 49-69-6658525
Eisai Machinery GmbH
Mathias-Brueggen-Strasse 142
D-50829 Cologne, Germany
Tel: 49-221-9564590 Fax: 49-221-9564599
Eisai S.A.
Tour Manhattan, 5-6 Place de I’Iris
92095 Paris La Défense 2 Cedex, France
Tel: 33-1-47670005 Fax: 33-1-47670015
Eisai B.V.
Strawinskylaan 909, 1077 XX
Amsterdam, The Netherlands
Tel: 31-20-575-3340 Fax: 31-20-575-3341
Eisai Annual Report 2001
Asia
P.T. Eisai Indonesia
Ratu Plaza Office Tower, 11th Floor
J1, Jend. Sudirman no. 9 Jakarta Pusat
Tel: 62-21-571-3304 Fax: 62-21-720-4501
Eisai Asia Regional Services Pte. Ltd.
152 Beach Road No. 11-04
Gateway East, Singapore 189721
Tel: 65-296-6977 Fax: 65-296-6577
Eisai (Malaysia) Sdn. Bhd.
74, Jalan University, 46200 Petaling Jaya
Selangor, Malaysia
Tel: 60-3-7957-6964 Fax: 60-3-7957-9211
Eisai (Thailand) Marketing Co., Ltd.
6th Floor, Diethelm Tower A, 93/1 Wireless Road
Lumpini, Patumwan
Bangkok 10330, Thailand
Tel: 66-2-256-6296 Fax: 66-2-256-6299
Hi-Eisai Pharmaceutical Inc.
20th Floor, Multinational Bancorporation Center
6805 Ayala Avenue,
Makati City, Philippines 1226
Tel: 632-887-10-47 Fax: 632-887-51-72
Eisai Hong Kong Co., Ltd.
Room 2104, Fortress Tower,
250 King's Road, North Point, Hong Kong, China
Tel: 852-2516-6128 Fax: 852-2561-5042
Eisai Korea Inc.
#1201 City Air Tower 159-9
Samsung-Dong Kangnam-ku, Seoul 135-973
Republic of Korea
Tel: 82-2-3451-5500 Fax: 82-2-3451-5599
Eisai Taiwan, Inc.
9th Floor, No. 18, Chang An E. Road, Sec. 1
Taipei, Taiwan
Tel: 886-2-2-531-4175 Fax: 886-2-2-531-0063
Weizai Co., Ltd.
9th Floor, No. 18, Chang An E. Road, Sec. 1
Taipei, Taiwan
Tel: 886-2-2523-3668 Fax: 886-2-2567-3418
Eisai (Suzhou) Pharmaceutical Co., Ltd.
Bai Yu Road #32 Suzhou Industrial Park
Suzhou, Jiangsu Province, 215021, China
Tel: 86512-761-3211 Fax: 86512-761-8640

Japan
Head Office
4-6-10 Koishikawa, Bunkyo-ku,
Tokyo 112-8088, Japan
Tel: 03-3817-3700
Support Centers
Hokkaido Support Center
Tohoku Support Center
Tokyo Support Center
Tokai Support Center
Kansai-Hokuriku Support Center
Chu-Shikoku Support Center
Kyushu Support Center
Production Facilities
Misato Plant
Kawashima Plant
Kashima Plant
Research Laboratory
Tsukuba Research Laboratories
Major Subsidiaries
Sanko Junyaku Co., Ltd.
Chiyoda-ku, Tokyo
Tel: 03-3865-4311 Fax: 03-3864-5644
Sannova Co., Ltd.
Nitta-gun, Gunma
Tel: 0276-52-3611 Fax: 0276-52-1341
Sunplanet Co., Ltd.
Bunkyo-ku, Tokyo
Tel: 03-3817-5324 Fax: 03-3811-1334
Elmed Eisai Co., Ltd.
Toshima-ku, Tokyo
Tel: 03-3980-6633 Fax: 03-3980-6634
Eland Co., Ltd.
Bunkyo-ku, Tokyo
Tel: 03-3817-3987 Fax: 03-3811-7581
KAN Research Institute, Inc.
Shimogyo-ku, Kyoto
Tel: 075-325-5118 Fax: 075-325-5130
Eisai Distribution Co., Ltd.
Atsugi-shi, Kanagawa
Tel: 046-248-2655 Fax: 046-248-5909
Clinical Supply Co., Ltd.
Hashima-gun, Gifu
Tel: 058689-2711 Fax: 058689-3225
Takehaya Co., Ltd.
Bunkyo-ku, Tokyo
Tel: 03-3817-5340 Fax: 03-3811-0216
Herusu Co., Ltd.
Toshima-ku, Tokyo
Tel: 03-3971-4919 Fax: 03-3971-5346
Eisai Seikaken Co., Ltd.
Bunkyo-ku, Tokyo
Tel: 03-5689-6460 Fax: 03-5689-6464
Kawashima Co., Ltd.
Hashima-gun, Gifu
Tel: 058689-2881 Fax: 058689-3691
Seiansha Co., Ltd.
Toshima-ku, Tokyo
Tel: 03-3980-1021 Fax: 03-3980-7302
Dymec Co., Ltd.
Ichikawa-shi, Chiba
Tel: 047-396-1611 Fax: 047-396-1600
Bracco-Eisai Co., Ltd.
Bunkyo-ku, Tokyo
Tel: 03-3813-4311 Fax: 03-3813-4348
Gakuen Shoji Co., Ltd.
Tsukuba-shi, Ibaraki
Tel: 0298-47-8422 Fax: 0298-47-5039
Eisai Annual Report 2001
41

42
MAJOR PRODUCTS
Prescription Pharmaceuticals
Aricept Alzheimer’s disease treatment
Azeptin Antiallergy agent
Iomeron Non-ionic contrast medium
Inhibace Long-acting ACE inhibitor
Infree Analgesic/anti-inflammatory agent
Glakay Osteoporosis treatment
Glucagon G
Novo
Genetically engineered glucagon
preparation
Cleactor Thrombolytic agent
Selbex Gastritis/gastric ulcer medication
Nitorol-R Long-acting isosorbide dinitrate
preparation
Neuquinon Metabolic cardiotonic
Aciphex/Pariet Proton pump inhibitor
Myonal Muscle relaxant
Methycobal Peripheral neuropathy therapy
Juvela
Nicotinate
Microcirculation activator
Rulid Long-acting macrolide antibiotic
Consumer Health Care Products
Saclon S For upset stomach associated
with pain and heartburn
Sahne Cream Medicated skin care cream
Seabond Denture adhesive
Skainar S for
Rhinitis
Medicine for rhinitis
Chocola AD For relief of dry eyes and
supplement of vitamins A & D
Chocola BB For Vitamin B2 supplement,
stomatitis & dermatitis
Chocola BB
Pure
Active type Vitamin B2 preparation
with Vitamin B6,B1,C
Chocola BB
Fresh
Vitamin B2 preparation
Chocola EC Natural type vitamin E plus vitamin
C granules
Travelmin Motion sickness remedy
Nabolin Active-type vitamin B12 preparation
Bayclear Plus Medication for Athlete’s foot
Breathe Right Nasal Strips
Ubiten S Ubidecarenone (Coenzyme Q 10)
preparation
Juvelux 300 Natural vitamin E preparation
Eisai Annual Report 2001
Diagnostic Products
Albusure For detection of microalbumin
Eitest CA/RF For determination of antiagalactosyl
IgG antibodies
Eitest IgGRF For determination of IgG rheumatoidfactor
Eitest KL-6 For determination of sialylated
carbohydrate antigen KL-6
Eitest PIVKA-II For determination of abnormal
prothrombin (PIVKA-II)
Clinisearch
CA/RF
For detection of antiagalatosyl
IgG antibodies
Thrombotest
Owren
For monitoring blood coagulation
activities
New Eitest-ATL For detection of anti HTLV-1 antibody
Picolumi AFP For determination of α-fetoprotein(AFP)
Picolumi CA/RF For determination of antiagalatosyl
IgG antibodies
Picolumi KL-6 For determination of sialylated
carbohydrate antigen KL-6
Picolumi For determination of abnormal
PIVKA-II prothrombin (PIVKA-II)
Hepaplastintest For monitoring liver functions and
blood coagulation activities
Chemicals and Food Additives
Ajitonica Flavoring agent
Amicanon Food preservative
D-mixed Natural antioxidant
Tocopherols
Concentrate
Lysozyme
Hydrochloride
Xylose Sweetening material
Synthetic vitamin
E and derivatives
Natural vitamin E
and derivatives
Animal Health Products
Astop Fifth-generation cationic disinfectant
Anxin Broad-spectrum antibiotic
Infec New quinolone synthetic antibiotic
Chitofine Chitosan wound dressing
Trimix Multivitamin aqueous solution for
poultry farming
Pacoma Virucidal and bactericidal
disinfectant for veterinary use
Mycobuster Inactivated vaccine for
mycoplasmosis of swine
Juvela Food 100 Vitamin E preparation for
veterinary use
Pharmaceutical Production System and Machines
AIM Automatic Inspection Machine
EIS Eisai inspection System
MWS High-Frequency Wave Continuous Sterilizer
BSI Black Spot Inspection Machine
AAPM Automatic Ampoule Packing Machine

BOARD OF DIRECTORS, CORPORATE OFFICERS, AND CORPORATE AUDITORS
(As of June 28, 2001)
Board of Directors
Chairman
Yuji Naito
President and Chief Executive Officer
Haruo Naito
Representative Director
Hiromasa Nakai
Directors
Aishin Shinoda
Hideaki Matsui
Yoji Takaoka
Yasuhiro Mita
Ichiro Kataoka
(Professor Emeritus, Keio University)
Shigehiko Yoshino
(Counselor of Asahi Bank Ltd.)
Corporate Auditors
Nobuo Eda
Yukio Akimoto
Teruo Osawa
Mitsuo Minami
(Certified Public Accountant, Professor,
Faculty of Business Administration, Bunkyo
Women's University)
Katsuro Tanaka
(Counsellor-at-law and Representative
Partner, TMI Associates)
Nobuo Eda, Mitsuo Minami and Katsuro Tanaka
are external auditors as stipulated by Act 18-1
related to the exception of the commercial code for
audits.
Eisai Annual Report 2001
Deputy President
Hiromasa Nakai
Corporate Officers
Executive Vice President
Aishin Shinoda
Research and Development
Senior Vice Presidents
Tadashi Nakai
Japan Prescription Drug Business
Hideaki Matsui
Management Planning, Human Resources,
Emerging Business and International Affairs
Yoji Takaoka
Prescription Drug Division
Yasuhiro Mita
Production and Logistics
Vice Presidents
Hiroshi Yamauchi
Research and Development
Matsuo Ohara
Prescription Drug Division and Director of
Kansai-Hokuriku Area
Kenji Toda
Product Quality and GMP Compliance
Akiyoshi Uchiyama
Regulatory Affairs and Medical Information
Makoto Shiina
Business Development
Masao Jimbo
Finance, Information Systems, and
Japan Network Companies
Kozaburo Inoue
Prescription Drug Division and Director of
Tokyo Area
Hideaki Hayano
Consumer Health Product Division
Shintaro Kataoka
Production and Logistics and General
Manager of Kawashima Industrial Complex
Nobuo Deguchi
Corporate Ethics, Public Relations and
Legal Affairs
Hiroyuki Mitsui
Corporate Communications, Environmental
Affairs and General Affairs
43

44
CORPORATE INFORMATION
(As of March 31, 2001)
Date of Foundation:
1941
Corporate Address:
Eisai Co., Ltd.
4-6-10 Koishikawa, Bunkyo-ku,
Tokyo 112-8088, Japan
Tel: 03-3817-3700
Annual Meeting:
The annual shareholders’ meeting of Eisai Co., Ltd., is held
in June.
Stock Exchange Listings:
Eisai common stock is listed on the Tokyo Stock Exchange
and the Osaka Securities Exchange
Securities Code Number:
4523
Independent Public Accountants:
Deloitte Touche Tohmatsu (by Tohmatsu & Co., the Japanese
member firm of Deloitte Touche Tohmatsu International)
MS Shibaura Bldg., 4-13-23, Shibaura,
Minato-ku, Tokyo 108-8530, Japan
Paid-in Capital:
¥44,887 million
Number of Shares Outstanding:
296,452,988
Number of Shareholders:
19,242
Transfer Agent:
The Toyo Trust and Banking Co., Ltd.
Depositary and Agent with Respect to American Depositary
Receipts for Common Shares:
Morgan Guaranty Trust Company of New York
60 Wall Street, New York,
New York 10260-0060, U.S.A.
Newspaper for Public Notice:
Nihon Keizai Shimbun
Eisai Annual Report 2001

Corporate Mission Place primary emphasis on patients and their families and
on increasing the benefits health care provides them, and ensure innovative, advantageous
health care for people around the world.
Corporate Objective A human health care company capable of making a meaningful
contribution under any health care system while observing the highest legal
and ethical standards in business activities.
Knowledge Creation
Eisai has been promoting knowledge creation activities for approximately thirteen years.
Knowledge from the indivdual is transferred to the organization and vice versa. Corporate
activities are structured to foster an ever increasing level of knowledge creation to produce
continuous innovation.
Eisai Annual Annual Report Report 2001 2001
For further information
Public Relations
Eisai Co., Ltd.
4-6-10,Koishikawa, Bunkyo-ku
Tokyo 112-8088, Japan
Tel: 03-3817-5120
Fax: 03-3811-3077
http://www.eisai.co.jp
45