The operations of Eisai Co., Ltd. focus on - Eisai GmbH

To Our Shareholders
<strong>Eisai</strong>’s corporate philosophy <strong>focus</strong>es on meeting the diverse needs <strong>of</strong>
patients and their families and increasing the benefits that health care
provides. We express this philosophy with the phrase “human health
care,” and continue to concentrate efforts on its realization worldwide.
Also embodied in our corporate philosophy is the belief that as a
pharmaceutical manufacturer, our future depends on the ability to fill an
essential role in the lives <strong>of</strong> patients and their families. To this end, we
have defined our corporate objective as contributing to the quality <strong>of</strong>
“human health care” under any health care system.
Linked by our shared commitment to “human health care,” each
employee at <strong>Eisai</strong> plays a key role in realizing this philosophy by constantly
seeking ways to overcome the boundaries <strong>of</strong> nationality, time and system
to provide relief to patients suffering from serious illnesses and peace <strong>of</strong>
mind to their families. In order to make the benefits <strong>of</strong> safe and effective
new drugs available to patients as rapidly as possible, we continue to
strengthen our global research and development, production and
marketing activities.
Results <strong>of</strong> Operations
In fiscal 1998, which ended March 31, 1999, we recorded consolidated
net sales <strong>of</strong> ¥284.9 billion, a decline <strong>of</strong> 5.6% from fiscal 1997. Operating
income decreased 18.7%, to ¥38.6 billion, while net income fell 19.8%,
to ¥15.9 billion.
In the Pharmaceuticals segment, sales <strong>of</strong> Aricept, a novel treatment
for Alzheimer’s disease, were ¥46.5 billion in the United States and Europe,
and sales <strong>of</strong> Pariet, a gastrointestinal disorder treatment, were ¥6.6
billion in Europe and Japan. <strong>The</strong>se contributed to total sales <strong>of</strong> ¥249.5
billion, which represents a 5.8% decline due to difficult market conditions
in Japan. Despite a good performance by the food additives and
chemicals <strong>operations</strong>, sales in the Other segment declined 6.2%, to
¥42.3 billion, due to sluggish demand for pharmaceutical production
systems/equipment and animal health products.
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Sales in the United States climbed 38.4%, to ¥57.4 billion, allowing
our U.S. <strong>operations</strong> to achieve pr<strong>of</strong>itability, while sales in Europe increased
127.1%, to ¥10.2 billion. In Japan, pharmaceutical manufacturers faced
an increasingly harsh operating environment, due to the third consecutive
year <strong>of</strong> a downward revision <strong>of</strong> <strong>of</strong>ficial prescription drug prices in fiscal
1998 and the impact <strong>of</strong> an amendment to the National Health Insurance
(NHI) Law in September 1997, which increased the portion <strong>of</strong> prescription
drug prices paid by individuals. Accordingly, domestic sales fell 11.2%,
to ¥244.7 billion. Elsewhere in Asia and in other markets, sales were
down 18.1%, to ¥1.7 billion, reflecting the impact <strong>of</strong> currency crises in
Southeast Asia.
Highlights <strong>of</strong> the Year
<strong>Eisai</strong> continues to <strong>focus</strong> on three essential objectives: further globalization
<strong>of</strong> our <strong>operations</strong>, continued strengthening <strong>of</strong> R&D and the restructure
<strong>of</strong> domestic <strong>operations</strong>. Our globalization efforts involve the growth <strong>of</strong>
direct R&D, production and sales in key global markets. During the
period under review, we substantially concluded an extensive capital
investment program to establish facilities in the United States, Europe
and Asia, and completed structural preparations to enable integrated
R&D, production and sales in the United States. We expanded the
sales <strong>of</strong> Aricept, our first prescription drug for the global market, making
it available in a greater number <strong>of</strong> countries. We also launched Pariet,
our second major drug for the international market, in Europe and
Globalizing Operations
Restructuring Domestic Operations
Reinforcing R&D

Yuji Naito Haruo Naito
Chairman President and Chief Executive Officer
approval was received in the U.S. to market the drug under the trade
name Aciphex. We expect to see strong growth in sales <strong>of</strong> the two
products, as well as in royalties from licensees and exports <strong>of</strong> drug
substance/pharmaceutical bulk product.
In the area <strong>of</strong> R&D, we continued to bolster original drug research
in Japan, the United States and Europe, aimed at developing our third
and fourth global prescription drugs. In fiscal 1999, we will continue
to narrow the scope <strong>of</strong> our research, strengthen clinical development
activities for new and existing candidates, and investigate promising
new experimental compounds.
Efforts to restructure our domestic <strong>operations</strong> centered on our pr<strong>of</strong>it
base in the prescription pharmaceutical market. In April 1999, we
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launched a significant restructuring <strong>of</strong> the administrative side <strong>of</strong> our
domestic prescription pharmaceutical <strong>operations</strong>. This move will facilitate
direct links between front-line sales personnel and the head <strong>of</strong>fice,
thereby ensuring our ability to provide the most appropriate information
for each marketing channel and to respond effectively and promptly
to market needs. <strong>The</strong> restructuring will also enable us to better utilize
domestic management resources to further globalize our <strong>operations</strong>
and reinforce R&D.
<strong>The</strong>se three objectives will continue to guide our efforts to position
<strong>Eisai</strong> as an R&D-driven global prescription pharmaceutical manufacturer.
Realizing Global “Human Health Care"
To realize our commitment to “human health care,” we are promoting
what we have termed “knowledge-creation activities.” Through
“knowledge-creation activities,” we cultivate an awareness <strong>of</strong> the needs
<strong>of</strong> patients and consumers and share this knowledge among a wide
spectrum <strong>of</strong> people inside and outside the <strong>Co</strong>mpany to facilitate the
creation, accumulation and effective utilization <strong>of</strong> new ideas. We are
confident that such activities will
enable us to realize our mission
to increase the benefits <strong>of</strong>
health care to patients and
consumers.
<strong>Eisai</strong> currently employs more
than 7,200 people worldwide,
from a variety <strong>of</strong> cultural backgrounds
and with contrasting
ideals and values. Despite
differences in nationality, gender

and age, our shared dedication to “human health care” guides our
efforts. In Japan, we have trained selected employees as “human
health care” leaders through a program that allows them to gain
experience by assisting health care pr<strong>of</strong>essionals and interacting with
patients in hospitals or other facilities. After completing the program,
these employees return to their original workplace, where they are
responsible for initiating and overseeing related projects. <strong>The</strong> “human
health care” leaders also periodically participate in “human health care”
conferences to present the results <strong>of</strong> their efforts, promote the sharing
<strong>of</strong> information and experience and further cultivate leadership. By
encouraging cooperation among leaders worldwide, we will endeavor
to promote systematized, global-level “knowledge-creation activities.”
Operating in an increasingly challenging environment, characterized
by growing pressure to lower health care costs, we will continue to
respond to health care needs worldwide by providing superior products
and services. We look forward to the support <strong>of</strong> our shareholders as we
proceed toward achievement <strong>of</strong> the “human health care” philosophy.
Yuji Naito
Chairman
Haruo Naito
President and Chief Executive Officer
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Research and Development
Creating an R&D Structure for the 21st Century
We are currently taking steps to expand and strengthen our global R&D organization, which
encompasses key facilities in Japan, the United States and Europe, to enhance our original
drug development and clinical testing capabilities.
<strong>The</strong> Tsukuba Research Laboratories in Japan concentrate on four key therapeutic
areas: inflammatory and allergic disorders; blood disorders, including complications resulting
from diabetes; cancer; and the central nervous system. <strong>The</strong> <strong>Eisai</strong> Research Institute <strong>of</strong>
Boston, Inc., specializes in cancer, inflammation, immunological disorders and allergy as
well as in advanced process research. In the United Kingdom, the <strong>Eisai</strong> London Research
Laboratories, <strong>Ltd</strong>. <strong>focus</strong> on basic molecular and cytological research aimed at formulating
new concepts for the development <strong>of</strong> innovative drugs for diagnosing and treating cerebral
and central nervous system disorders.
To strengthen our global R&D activities, we restructured our R&D activities in August
1998, bringing them under the direct control <strong>of</strong> the president and placing senior executives
in charge <strong>of</strong> basic research, product development and clinical testing.
As in Japan, our R&D activities in the United States encompass basic research, pre-clinical
and clinical testing, the development <strong>of</strong> pharmaceutical materials and process research.
Our U.S. R&D facilities will thus play a crucial role in the globalization <strong>of</strong> our <strong>operations</strong>, and
we will continue to invest in them accordingly. In April 1999, we integrated R&D activities in
the Boston area by merging the <strong>Eisai</strong> Merrimack Valley Laboratories, Inc., where process
and production-related research are conducted, with the <strong>Eisai</strong> Research Institute <strong>of</strong> Boston,
Inc. To improve the efficiency <strong>of</strong> these facilities, we will tightly <strong>focus</strong> their activities, prioritizing
and accelerating the development <strong>of</strong> particularly promising new drug candidates. We
will also explore the possibility <strong>of</strong> cooperative development, depending on the R&D theme,
where such an approach promises to enhance results.
Developing New Prescription Drugs for the Global Market
<strong>Eisai</strong> invested ¥43.7 billion in R&D in fiscal 1998, equivalent to 15.3% <strong>of</strong> consolidated
net sales. This is one <strong>of</strong> the highest percentages among Japanese pharmaceutical
manufacturers.
R&D highlights during the period included applying for regulatory approval to manufacture
and market Aricept in Japan as a treatment for Alzheimer’s disease. In the United States, we
are clinically testing Aricept for additional indications, namely for the treatment <strong>of</strong> dementia
associated with cerebrovascular disease and attention deficit disorder/attention deficit hyperactivity
disorder. We also are proceeding with clinical testing <strong>of</strong> the gastrointestinal disorder
treatment Pariet. In addition to receiving authorization to market Pariet in 15 countries in Europe
during the period, we also received approval from the U.S. FDA in August 1999 to market
the drug in the United States under the trade name Aciphex. <strong>The</strong> drug also holds potential as
a treatment for Helicobacter pylori eradication and symptomatic reflux esophagitis, and we
are currently supporting clinical development <strong>of</strong> the drug for expanded indications.

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<strong>The</strong> ultimate objective <strong>of</strong> our R&D activities worldwide is to develop original prescription
drugs for the global market. Our researchers strive tirelessly in this quest to bring to market
new drugs that increase the benefits that health care provides to patients worldwide.
Promising research candidates at present include potential treatments for septic shock and
cancer. We are also accelerating development efforts to introduce outstanding drugs from
other manufacturers. In recent years, we concluded a license agreement with Bracco S.p.A
to develop a new magnetic resonance imaging (MRI) contrast medium in Japan and entered
into an agreement with Knoll AG to jointly develop a new obesity management drug for Japan.
We also signed an agreement with Toyama Chemical <strong>Co</strong>., <strong>Ltd</strong>. <strong>of</strong> Japan to cooperate in the
development and marketing <strong>of</strong> an exciting new anti-rheumatic agent.
We will continue to expand leading-edge R&D in key therapeutic areas and explore
new directions in research to ensure our stature as a global manufacturer <strong>of</strong> prescription
pharmaceuticals and the future growth <strong>of</strong> our global <strong>operations</strong>.
Improving the Efficiency <strong>of</strong> New Drug Development
Developing a new drug requires a huge financial investment and a long period <strong>of</strong> time. In order for
us to provide an effective new drug to patients as quickly as possible, we constantly endeavor to
enhance the efficiency <strong>of</strong> pharmaceutical compound synthesis and screening, thereby shortening
the development time. To help us achieve this goal, we are introducing various forms <strong>of</strong> automated
systems at our R&D facilities worldwide.
<strong>Co</strong>mbinatorial Chemistry
<strong>Co</strong>mbinatorial chemistry is a new technology where a vast number <strong>of</strong> compounds having similar
structure can be systematically prepared in a short period <strong>of</strong> time. This system efficiently produces
compounds through the consecutive reaction <strong>of</strong> chemical substances in solutions and on synthetic
resin beads. This technology greatly improves the efficiency <strong>of</strong> synthesis, permitting a single
researcher to synthesize approximately 100 to 200 compounds annually on average.
High-Throughput Screening
High-throughput screening utilizes an automated system that tests large
numbers <strong>of</strong> synthetic and natural compounds for biological activity
against new drug targets that have been identified at the molecular/
cellular level. With the introduction <strong>of</strong> a screening robot, several million
compounds can be assayed in one year, thus the search for a prototype
compound, which is the basis for a new drug design, can be achieved
efficiently.
New Laboratory Established in Tsukuba
In drug discovery it is increasingly important to find seeds for new drug
development by <strong>focus</strong>ing on the disease mechanisms at the gene level.
<strong>The</strong> recently established “Seeds Laboratory” in Tsukuba Research
Laboratories investigates the function <strong>of</strong> genes and their relationship
to diseases from the perspective <strong>of</strong> molecular biology, genetics,
bioinformatics and genome science in an attempt to identify new
targets for drug development.

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Manufacturing
Reinforcing Our Global Manufacturing Network
Our network <strong>of</strong> production facilities in Japan, the United States and Europe promotes the
local manufacture <strong>of</strong> products that have been developed internally.
In the United States, we began <strong>operations</strong> at a new plant near Houston, Texas, in June
1998, enabling us to guarantee a stable supply <strong>of</strong> synthetic vitamin E. In November 1998,
we commenced production and shipments <strong>of</strong> Aricept at a new plant in North Carolina. Our
ability to satisfy the stringent regulations and environmental standards governing pharmaceutical
plants in the United States is an important accomplishment in our drive to expand
our global manufacturing network.
In Asia, our plants in Bogor, Indonesia, and Tainan, Taiwan, produce and repackage a
variety <strong>of</strong> prescription pharmaceuticals, including Methycobal, a peripheral neuropathies
treatment, and Neuquinon, a metabolic cardiotonic. In May 1998, we completed construction
<strong>of</strong> a plant in Suzhou, China, and began preparations to shift production <strong>of</strong> drugs from
the plant in Shenyang and to manufacture Aricept. <strong>The</strong> new plant will greatly enhance our
ability to ensure a stable supply <strong>of</strong> pharmaceuticals in the Asian market.
In Japan, the Kawashima and Misato plants are implementing measures in manufacturing
and quality control to ensure that we continue to meet global standards <strong>of</strong> Good Manufacturing
Practice (GMP), while improving production efficiency. <strong>The</strong> Kashima Plant works closely with
our R&D facilities in Tsukuba, Boston and London to produce high-quality drug substance.
U.S. Synthetic Vitamin E Plant Opens
Since <strong>Eisai</strong>’s establishment, we have conducted integrated R&D, production and marketing <strong>of</strong> vitamin E
in Japan, expanding production facilities at the Kawashima Plant in line with advancements in production
technology. Our new synthetic vitamin E plant near Houston, Texas, was built to ensure our ability to
guarantee a stable supply worldwide. With dual production in Japan and the United States, we are
positioned well to respond to anticipated increases in demand.
First U.S. Prescription Pharmaceutical Plant <strong>Co</strong>mpleted
<strong>The</strong> opening <strong>of</strong> our new plant in North Carolina represents the culmination <strong>of</strong> a long and successful effort,
including meeting U.S. GMP standards, transferring production technology from Japan and applying to the
U.S. Food and Drug Administration (FDA) for approval. In November 1998, the new facility began manufacturing
Aricept. <strong>The</strong> plant is currently preparing to apply for approval to manufacture Aciphex in the United States
(Pariet in Japan/Europe) as the transfer <strong>of</strong> production technology from Japan has been accomplished.
Pharmaceutical Plant in China <strong>Co</strong>mpleted
<strong>Co</strong>mpleted in 1998, the Suzhou plant has continued to enhance manufacturing procedures, enabling it to
meet China’s GMP standards, and has completed preparations to commence production. <strong>The</strong> plant will
take over the manufacture <strong>of</strong> Neuquinon from the Shenyang plant, as well as the production <strong>of</strong> several
other drugs currently exported from Japan. In the near future, the plant will also begin producing Aricept.
Repackaging <strong>operations</strong> began in 1999 and from 2000 the plant will actually commence production <strong>of</strong>
pharmaceuticals, thus becoming our premier supply base for prescription pharmaceuticals in Asia.
Misato and Kashima Plants Achieve International Standards to Manufacture Drugs for
Overseas Markets
In January 1997, the Misato Plant was approved by the United Kingdom’s Medicines <strong>Co</strong>ntrol Agency (MCA),
to begin production <strong>of</strong> Pariet for the United Kingdom, Germany and other European markets. <strong>The</strong> Misato
Plant also filed an application with the U.S. FDA to produce Pariet (Aciphex in the United States) for the U.S.
market. At the same time, measures have been taken to ensure the plants meet international GMP standards
<strong>of</strong> the U.S., Japan and Europe. In December 1998, the Misato Plant was audited and received FDA approval
for the future production <strong>of</strong> Aciphex. <strong>The</strong> Kashima Plant received FDA approval, following its successful
application to produce drug substance for Aricept in September 1996.

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Marketing—Prescription Pharmaceuticals
In line with our “human health care” philosophy and our commitment to improving the
benefits provided by heath care to patients and their families worldwide, we constantly
work to expand our innovative and advanced pharmaceutical products and to provide
accurate and up-to-date information on their use. Our two main drugs for the global market
are Aricept and Pariet. In Japan, we <strong>of</strong>fer a broad range <strong>of</strong> products, the majority <strong>of</strong> which
were developed in-house. <strong>The</strong>se encompass several key therapeutic and diagnostic areas,
including digestive ailments and disorders <strong>of</strong> the nervous, muscular and cardiovascular
systems. In all markets, we tailor our marketing activities to the needs <strong>of</strong> health care
pr<strong>of</strong>essionals and their patients.
Expanding Global Efforts
Reflecting ongoing efforts to strengthen our global, in-house marketing network, consolidated
overseas sales in fiscal 1998 rose 38.5% from the fiscal 1997 level. <strong>The</strong> primary factor
behind this gain is the outstanding sales <strong>of</strong> Aricept during the period under review. Aricept
is well-established as an Alzheimer’s disease treatment in key markets, which is underscored
by the fact that Aricept is currently our top-selling prescription drug worldwide.
In addition to marketing through medical representatives in the United States, we also
promote Aricept with a direct-to-consumer advertising campaign. We will continue to
market Aricept intensively to make this novel drug available to as many patients as possible.
We also expect to begin sales soon for Aciphex in the United States (Pariet in Japan/Europe),
which recently received marketing clearance.
In Europe, sales <strong>of</strong> Aricept in the United Kingdom, Germany and France remain strong.
We received approval to market Pariet in the 15 countries <strong>of</strong> the European Union in 1998,
launching sales in the United Kingdom and Germany shortly thereafter.
Marketing activities in Asia date back to the 1960s. Our product line in the region currently
includes Methycobal, a peripheral neuropathies treatment, and Myonal, a muscle relaxant.
In fiscal 1998, we launched Aricept in Thailand, Hong Kong and several other key markets
in the region. Reflecting intense marketing efforts, sales <strong>of</strong> Aricept in Asia continue to grow
steadily. We have received approvals for Pariet in Hong Kong and the Philippines, and plan
to introduce Pariet in Asia at the earliest possible date.

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Reinforcing Domestic Capabilities
Our principal products in Japan are Selbex, a gastritis/gastric ulcer medication;
Methycobal, a peripheral neuropathies treatment; Iomeron, a non-ionic contrast medium;
Glakay, an osteoporosis treatment; and the global product Pariet.
Selbex is currently the top gastritis/gastric ulcer medication on the market in Japan,
and in October 1998, <strong>Eisai</strong> received a patent for gastritis treatment for Selbex in Japan. On
another front, 30-day prescriptions for Glakay received <strong>of</strong>ficial approval, a positive development
that has reduced the frequency with which osteoporosis sufferers must obtain new
prescriptions. Pariet’s efficacy in treating duodenal peptic ulcers has also earned it a strong
following among gastroenterologists and patients in the domestic market.
Improving Information Services
To ensure our ability to provide our customers with accurate and timely information on our
products, we constantly work to enhance academic and practical training for our medical
representatives. Again, our commitment to global “human health care” is evident. <strong>The</strong> job
<strong>of</strong> an <strong>Eisai</strong> medical representative is to advise front-line medical pr<strong>of</strong>essionals on pharmaceuticals
and treatment methods. Accordingly, medical representatives frequently participate
in seminars and practical training sessions to update their knowledge and skills. Given the
increasing emphasis on evidence-based medicine in hospitals, we will continue to place a
high priority on the provision <strong>of</strong> quality information, as well as on the training <strong>of</strong> medical
representatives, thereby earning the trust and respect <strong>of</strong> health care pr<strong>of</strong>essionals and
patients.
Domestic Marketing Activities Restructured
To cope with changes in Japan’s health care system, we restructured our domestic prescription
pharmaceutical marketing activities in April 1999 to enhance our responsiveness to the diverse needs
<strong>of</strong> special-purpose hospitals, regular hospitals, clinics and dispensing pharmacies. This restructuring
also involved creating direct links between medical representatives and the head <strong>of</strong>fice, ensuring our
ability to provide the most appropriate information for each type <strong>of</strong> facility.
New Products Launched
In June 1998, we launched Cleactor, a revolutionary, fast-acting thrombolytic for treatment <strong>of</strong> acute
myocardial infarction. In November 1998, we marketed Tambocor Injection, an anti-arrhythmic agent
for hospital usage. Due to their outstanding efficacy in treating patients needing acute care, these
drugs are expected to attract significant demand in the future.

Aricept
Aricept is a reversible acetylcholinesterase inhibitor
for the treatment <strong>of</strong> Alzheimer’s disease. It has
obtained approval in numerous countries worldwide.
By inhibiting the action <strong>of</strong> acetylcholinesterase—
the enzyme that breaks down the neurotransmitter
acetylcholine—this drug increases the concentration
<strong>of</strong> acetylcholine in the brain, improving cognitive
function, providing symptomatic relief for patients
suffering from mild to moderate Alzheimer’s disease.
Aricept, which requires administration only once
daily, represents a significant step forward in the
treatment <strong>of</strong> Alzheimer’s disease and <strong>of</strong>fers new
hope for Alzheimer’s suffers and their caregivers.
Pariet
Pariet, a proton pump inhibitor, inhibits the secretion
<strong>of</strong> gastric acid by blocking the function <strong>of</strong> the enzyme
responsible at the final stage <strong>of</strong> secretion. <strong>The</strong> drug,
which is administered once daily, has proven highly
effective in relieving stomach pain and healing gastric
ulcers, duodenal ulcers and gastroesophageal reflux
disease.
While H2 receptor antagonists continue to account
for the largest share <strong>of</strong> the market for gastritis and
gastric ulcer treatments, proton pump inhibitors are
attracting increasing attention. We have positioned
Pariet as our second major drug for the global market
following Aricept and look forward to broadening its
availability in the years ahead.
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Marketing—<strong>Co</strong>nsumer Health Care Products
Emphasizing Brands
<strong>The</strong> consumer health care segment encompasses a wide range <strong>of</strong> items sold over the
counter (OTC) at drugstores and pharmacies, including non-prescription pharmaceuticals
and medicated topical treatments, developed by <strong>Eisai</strong> in response to the needs <strong>of</strong> healthconscious
consumers.
Principal products in this segment, such as vitamin B2 preparation Chocola BB and
Saclon, a treatment for indigestion and heartburn containing chlorophyll, have been favored
by customers for decades. We also market a number <strong>of</strong> “switch-OTC” products, nonprescription
drugs that began as prescription pharmaceuticals and have been reformulated
and reclassified after extensive use has verified their safety. <strong>The</strong>se include the OTC mainstay
Nabolin, an active-type B12 preparation that relieves numbness, stiffness and discomfort in
the shoulder and lumbar area caused by peripheral nerve damage.
Since <strong>Eisai</strong>’s establishment, we have been on the forefront <strong>of</strong> vitamin E research, and
products include the Juvelux series <strong>of</strong> natural vitamin E preparations, popular as an effective
preventative measure against a variety <strong>of</strong> ailments, including neck and shoulder stiffness
and numbness <strong>of</strong> the extremities. In August 1998, we introduced Chocola EC, a natural
vitamin E and C preparation that fades liver spots and freckles, as well as relieves sensitivity
to cold in the hands and feet and stiff shoulders. <strong>The</strong> product has proved to be particularly
popular among women in all age groups.
We continue to <strong>focus</strong> on expanding our OTC <strong>operations</strong> by emphasizing brands suited
to the OTC market and reinforcing brand awareness. On the development front, we are
concentrating on products that maximize our accumulated expertise and capabilities in the
consumer health care area
New Products Launched
Additions to the <strong>Eisai</strong> OTC product line in fiscal 1998 include Chocola EC, a natural vitamin E and C
preparation that fades liver spots and freckles, as well as relieves sensitivity to cold in the hands and
feet and stiff shoulders. In May 1999, we launched Sea-bond, a sea kelp-derived natural sheet-type
denture adhesive. Because Sea-bond is a sheet-type denture adhesive, it provides a uniform
adhesion and is easily removed.
Marketing Strategies Emphasize Product Characteristics
Marketing strategies for OTC products continue to <strong>focus</strong> on publicizing unique product characteristics.
For products such as Juvelux and Nabolin, we <strong>focus</strong> promotion efforts on providing information
about correct product usage through seminars and study sessions for pharmacists and drugstore
operators. For marketing <strong>of</strong> products like Chocola BB and Saclon, we concentrate on advertising in
a variety <strong>of</strong> media. In 1998, we expanded these efforts to include Internet banner advertisements.

Marketing—Other Operations
Food Additives and Chemicals Operations
To ensure tastier and safer food products through the use <strong>of</strong> natural materials,
<strong>Eisai</strong> has for many years conducted extensive R&D to develop food additives
based on vitamin E. Mainstay products in this category include vitamin E-enriched
supplements and antioxidants, as well as food preservatives, sweeteners and
flavor enhancers, which we supply to manufacturers <strong>of</strong> food products. Our
chemicals <strong>operations</strong> center on natural and synthetic vitamin E, and also include
pharmaceutical raw materials, such as lysozyme hydrochloride.
To ensure a stable supply <strong>of</strong> these products and improve our responsiveness
to the needs <strong>of</strong> customers worldwide, we commenced <strong>operations</strong> in 1998 at
a new synthetic vitamin E plant in the U.S.
Veterinary and Livestock Product Operations
Our <strong>operations</strong> in this category are guided by the concept that the health <strong>of</strong>
humans and animals are closely intertwined. In addition to developing an extensive
selection <strong>of</strong> products in the areas <strong>of</strong> nutrition, preventative hygiene and disease
treatment, we have <strong>focus</strong>ed on responding to market needs by developing highly
competitive products and strengthening our marketing capabilities.
We also market a broad range <strong>of</strong> vitamin E-based nutritional supplements
and livestock feeds, as well as swine vaccines and other immunological products,
disinfectants for environmental sterilization, antibiotic and antibacterial agents for
treating bacterial diseases, and veterinary drugs for pets. <strong>The</strong>se products are
available in Japan, many other Asian countries and Oceania.
Pharmaceutical Production Systems and Equipment
Operations in this category endeavor to provide pharmaceutical manufacturers
worldwide with pharmaceutical production systems and equipment that ensure
quality by <strong>focus</strong>ing on instruments used to detect impurities in ampules. We have
sold globally more than 700 units <strong>of</strong> our Automatic Inspection Machine (AIM), a
high-precision instrument that enables highly sophisticated detection <strong>of</strong> impurities in
ampules. Other achievements include the High Frequency Wave Sterilization System
(MWS), a continuous sterilization system, and the <strong>Eisai</strong> Inspection System (EIS), a
comprehensive testing system. In 1998, we launched a technologically advanced,
fully automated testing system named NAIM.
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Environmental Preservation
To ensure our ability to function in harmony with nature and fulfill the role society expects,
we confront environmental issues in all areas <strong>of</strong> <strong>Co</strong>mpany activity ranging from R&D and
production to marketing.
We have already met domestic pharmaceutical industry targets for the year 2000 in
terms <strong>of</strong> waste output, recycling, external emissions and materials disposal, and we
continue to work to improve our record. We have also set targets for reducing resource
and energy consumption and are taking decisive steps to ensure these targets are met.
In February 1999, the Kawashima Plant received ISO 14001 certification, the International
Organization for Standardization’s benchmark for environmental management systems,
for drug substance production and drug formulation <strong>operations</strong>. <strong>The</strong> Misato and Kashima
plants are currently proceeding with preparations to apply for ISO 14001 certification.
We believe we have a global responsibility to protect the natural environment and
conserve precious resources for subsequent generations. This commitment will continue to
guide our environmental preservation efforts in all <strong>of</strong> our <strong>operations</strong>.
Environmentally Friendly Packaging
Methycobal/
Peripheral neuropathies treatment
Iomeron/
Non-ionic contrast medium
Kurtime/
Bath additive containing fermented
rice extract
Skainar Rhinitis S/
Sinusitis relief medication
Skainar Antitussive and Expectorant/
<strong>Co</strong>ugh and cold medication
Saclon Q/
Indigestion and heartburn relief
Tablets are packed in Light Protect Easy (LPE), a proprietary
packaging that is safer to use and easily disposable.
Packaging components can be easily separated prior to
disposal without special equipment.
Use <strong>of</strong> a laminated bottle reduces toxic gas emissions when
incinerated.
Polypropylene has replaced polyvinyl chloride (PVC) in
packaging.
PTP (Press Through Pack) packaging contains only
polypropylene materials.

26
Total current liabilities as <strong>of</strong> March 31, 1999, amounted to ¥87,311 million, up ¥11,564 million,
or 15.3%. This increase largely reflects the shift <strong>of</strong> ¥10,000 million in bonds from long-term liabilities
to the current liabilities. <strong>Co</strong>nsequently, total long-term liabilities declined ¥8,965 million, or 13.1%,
to ¥59,259 million.
Total shareholder’s equity rose ¥9,353 million, or 3.1%, to ¥308,567 million, reflecting additions
from net income and the payment <strong>of</strong> dividends and bonuses to directors. <strong>The</strong> shareholders’ equity
ratio rose to 66.6%, from 66.0% a year earlier.
Cash Flows
Net cash provided by operating activities amounted to ¥35,886 million, up ¥11,469 million from
the previous period. Despite declines in net income and gains on sales <strong>of</strong> short-term investments
and investment securities from the previous year <strong>of</strong> ¥3,916 million and ¥2,307 million, respectively,
purchases <strong>of</strong> property, plant and equipment in recent years resulted in a ¥2,111 million increase in
depreciation and amortization, and total changes in assets and liability related <strong>operations</strong> yielded
an increase <strong>of</strong> ¥14,479 million.
Net cash used in investing activities rose ¥17,701 million, to ¥31,173 million. Purchases <strong>of</strong>
property, plant and equipment decreased ¥16,652 million. Purchases <strong>of</strong> short-term investments
and investment securities rose ¥41,223 million.
Net cash used in financing activities declined ¥16,278 million, to ¥10,018 million. Of the total,
¥1,642 represented payments on bank borrowings, while ¥6,373 million was applied to dividends
paid. Because no straight or convertible bonds were redeemed during the period, repayment <strong>of</strong>
long-term debt declined ¥19,576 million, to ¥2,138 million.
As a consequence <strong>of</strong> the <strong>Co</strong>mpany’s operating, investing and financing activities during the
period, and the effect <strong>of</strong> exchange rate changes, cash and cash equivalents on March 31, 1999,
totaled ¥47,279 million, down ¥6,295 million from ¥53,574 million on March 31, 1998.

Year 2000 <strong>Co</strong>mpliance
<strong>Eisai</strong> recognizes the Year 2000 compliance as a key management issue and is taking appropriate
steps not only to achieve technical compliance, but also to protect ordinary business <strong>operations</strong>.
In fiscal 1997, <strong>Eisai</strong> established a Year 2000 issue project team to guide companywide efforts
to address the issue. <strong>The</strong> project team has taken the lead in analyzing potential risks, not only for
the <strong>Co</strong>mpany’s internal systems, but also for those <strong>of</strong> business partners and customers. Details
<strong>of</strong> compliance efforts and their implementation are monitored by the <strong>Co</strong>mpany’s internal audit
section and reported regularly to the Management <strong>Co</strong>mmittee.
Testing <strong>of</strong> the <strong>Co</strong>mpany’s mainframe computer systems, which constitute the nucleus <strong>of</strong> the
basic operating system, were completed in March 1999. <strong>Eisai</strong> expects to complete countermeasures
for servers, personal computers and networks in September 1999. Inspections <strong>of</strong> process control
systems and equipment and facilities containing microchips are currently underway and are
scheduled for completion in September 1999.
A <strong>Co</strong>ntingency Planning project team has been organized to identify and address latent risks
associated with the <strong>Co</strong>mpany’s systems and those <strong>of</strong> its business partners and customers, as
well as infrastructure-related risks.
Although a rational plan has been developed to manage Year 2000 compliance, the <strong>Co</strong>mpany
cannot completely guarantee the elimination <strong>of</strong> all risks associated with this issue.
27

EISAI CO., LTD. AND CONSOLIDATED SUBSIDIARIES
N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
Years ended March 31, 1999 and 1998
NOTE 1.
Basis <strong>of</strong>
Presenting
<strong>Co</strong>nsolidated
Financial
Statements
NOTE 2.
Significant
Accounting
Policies
<strong>The</strong> accompanying consolidated financial statements <strong>of</strong> <strong>Eisai</strong> <strong>Co</strong>., <strong>Ltd</strong>. (the “<strong>Co</strong>mpany”), and its consolidated subsidiaries
have been prepared from the consolidated financial statements issued for domestic reporting purposes in accordance with
the provisions set forth in the Japanese Securities and Exchange Law and its related accounting regulations. <strong>The</strong> <strong>Co</strong>mpany
and its domestic consolidated subsidiaries maintain their accounts and records in conformity with accounting principles and
practices generally accepted in Japan which are different in certain respects as to application and disclosure requirements <strong>of</strong>
International Accounting Standards, and its foreign consolidated subsidiaries in conformity with those <strong>of</strong> their domicile. <strong>The</strong>
consolidated financial statements are not intended to present the financial position, result <strong>of</strong> <strong>operations</strong> 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. <strong>The</strong> consolidated statements <strong>of</strong> cash flows are not required as a part <strong>of</strong> the basic consolidated financial
statements under Japanese laws and regulations but are presented herein as additional information. In addition, the
accompanying notes include information which is not required under accounting principles and practices generally accepted
in Japan but is presented as additional information.
<strong>The</strong> consolidated financial statements are stated in Japanese yen, the currency <strong>of</strong> the country in which the <strong>Co</strong>mpany
principally operates. <strong>The</strong> United States dollar amounts included herein are given solely for convenience <strong>of</strong> readers outside
Japan and have been translated, as a matter <strong>of</strong> arithmetical computation only, at the rate <strong>of</strong> ¥121=US$1, the approximate
exchange rate at March 31, 1999. <strong>The</strong> United States dollar amounts should not be construed as a representation that
the Japanese yen amounts have been, or could in the future be, converted into United States dollars at the above or any
other rate.
Certain reclassifications have been made in the 1998 consolidated financial statements to conform to the classifications
used in 1999. <strong>The</strong>se reclassifications had no effect on previously reported net income or retained earnings.
(a) Principles <strong>of</strong> consolidation
<strong>The</strong> accompanying consolidated financial statements include the accounts <strong>of</strong> the <strong>Co</strong>mpany and substantially all <strong>of</strong> its
subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. All material
unrealized pr<strong>of</strong>it included in assets resulting from transactions within the <strong>Co</strong>mpany and its consolidated subsidiaries has
also been eliminated.
<strong>The</strong> excess cost <strong>of</strong> investments in subsidiaries over the equity in net assets at acquisition dates is being amortized
over five years using the straight-line method.
(b) Cash and cash equivalents
For purposes <strong>of</strong> the statements <strong>of</strong> cash flows, the <strong>Co</strong>mpany considers all time deposits to be cash equivalents. Time
deposits have original maturities <strong>of</strong> one year or less and can be withdrawn on demand with no diminution <strong>of</strong> principal.
(c) Short-term investments and investment securities
Listed securities including short-term investments and investment securities are mainly valued at the lower <strong>of</strong> cost or market.
Other securities are stated at cost. <strong>The</strong> cost <strong>of</strong> securities sold is mainly determined using the moving-average-cost method.
Investments in unconsolidated subsidiaries and associated companies (20% to 50% ownership) are accounted for by
the equity method.
(d) Inventories
Inventories are generally stated at weighted average cost.
(e) Property, plant and equipment
Property, plant and equipment are stated at cost. Depreciation is computed using the declining balance method at rates
based on the estimated useful lives <strong>of</strong> the assets.
In 1998, the estimated useful lives <strong>of</strong> property, plant and equipment other than buildings and structures <strong>of</strong> the head <strong>of</strong>fice,
branches, and laboratories <strong>of</strong> the <strong>Co</strong>mpany, and buildings and structures <strong>of</strong> <strong>Eisai</strong> Chemical <strong>Co</strong>., <strong>Ltd</strong>., which was merged into
the <strong>Co</strong>mpany as <strong>of</strong> April 1, 1998, were changed to be duplicative as long as those used in prior years. This change was made
because it was determined that the buildings and structures <strong>of</strong> plants acquired had longer lives resulting from refurbishment
and repair to such machinery and equipment. <strong>The</strong> effect <strong>of</strong> this change for the year ended March 31, 1998, was to decrease
depreciation by ¥4,075 million and increase operating income, and income before income taxes by ¥3,305 million.
(f) Leases
Leases are accounted for as operating leases. Under Japanese accounting standards for leases, finance leases that deem to
transfer ownership <strong>of</strong> 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.
33

34
(g) Income taxes
<strong>The</strong> <strong>Co</strong>mpany and domestic subsidiaries provide for income taxes at the amount currently payable for each year. <strong>The</strong> tax
effect <strong>of</strong> temporary differences between tax and financial reporting purposes is not recorded. Certain overseas subsidiaries
provide for deferred income taxes relating to temporary differences in accordance with accounting principles generally
accepted in the relevant countries.
(h) Retirement allowances
<strong>The</strong> annual provision for retirement allowances is calculated to present 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 and for directors and
corporate auditors at the amount that would be required if all directors and corporate auditors retired at each balance sheet date.
Pension costs, including prior service costs, which are amortized principally over 20 years, are charged to income when
contributed to the fund.
(i) Appropriations <strong>of</strong> retained earnings
Appropriations <strong>of</strong> retained earnings at each year-end 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 are charged to income as incurred. Start up costs related to certain subsidiaries are deferred and
amortized by the straight-line method over four to five years.
(l) Foreign currency transactions
Short-term receivables and payables denominated in foreign currencies are translated into Japanese yen at the current
exchange rates at each balance sheet date.
Long-term receivables and payables denominated in foreign currencies are generally translated into Japanese yen
at historical exchange rates.
(m) Foreign currency financial statements
<strong>The</strong> balance sheet accounts <strong>of</strong> the consolidated overseas subsidiaries are translated into yen at the current exchange
rates as <strong>of</strong> the balance sheet date except for shareholders’ equity, which is translated at the historical exchange rate.
Differences arising from such translation are shown as “Currency translation adjustments” in the accompanying <strong>Co</strong>nsolidated
Balance Sheets. Revenue and expense accounts <strong>of</strong> the consolidated overseas subsidiaries are translated into yen at the
average rates.
(n) Per share information
<strong>The</strong> computation <strong>of</strong> net income per share is based on the weighted average number <strong>of</strong> shares <strong>of</strong> common stock outstanding
during each year, retroactively adjusted for stock splits. <strong>The</strong> average number <strong>of</strong> common shares used in the computation was
296,405,452 shares for 1999 and 282,846,622 shares for 1998.
Diluted net income per share <strong>of</strong> common stock assumes full conversion <strong>of</strong> the outstanding convertible bonds at the
beginning <strong>of</strong> the year with an applicable adjustment for related interest expense, net <strong>of</strong> tax.
Cash dividends per share presented in the accompanying <strong>Co</strong>nsolidated Statements <strong>of</strong> Income are dividends applicable
to the respective years without making retroactive adjustment for subsequent stock splits.

40
I N D E P E N D E N T A U D I T O R S ’ R E P O R T
To the Board <strong>of</strong> Directors and Shareholders <strong>of</strong> <strong>Eisai</strong> <strong>Co</strong>., <strong>Ltd</strong>.
We have examined the consolidated balance sheets <strong>of</strong> <strong>Eisai</strong> <strong>Co</strong>., <strong>Ltd</strong>. and consolidated subsidiaries as <strong>of</strong> March 31, 1999
and 1998, and the related consolidated statements <strong>of</strong> 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 <strong>of</strong> 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 <strong>of</strong> <strong>Eisai</strong> <strong>Co</strong>., <strong>Ltd</strong>.
and consolidated subsidiaries as <strong>of</strong> March 31, 1999 and 1998, and the results <strong>of</strong> their <strong>operations</strong> 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.
Our examinations also comprehended the translation <strong>of</strong> 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 to the consolidated financial statements.
Such U.S. dollar amounts are presented solely for the convenience <strong>of</strong> readers outside Japan.
Tokyo, Japan
June 29, 1999

DOMESTIC AND OVERSEAS NETWORK
Domestic Network
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-Hokuriku Support Center
Kansai Support Center
Chu-Shikoku Support Center
Kyushyu Support Center
Production Facilities
Misato Plant
Kawashima Plant
Kashima Plant
Research Laboratory
Tsukuba Research Laboratories
Major Subsidiaries
Japan
Sanko Junyaku <strong>Co</strong>., <strong>Ltd</strong>.
Chiyoda-ku, Tokyo
Tel: 03-3863-3271 Fax: 03-3864-5644
Sannova <strong>Co</strong>., <strong>Ltd</strong>.*
Nitta-gun, Gunma
Tel: 0276-52-3611 Fax: 0276-52-1341
Elmed <strong>Eisai</strong> <strong>Co</strong>., <strong>Ltd</strong>.
Toshima-ku, Tokyo
Tel: 03-3980-6633 Fax: 03-3980-6634
Eland <strong>Co</strong>., <strong>Ltd</strong>.
Bunkyo-ku, Tokyo
Tel: 03-3817-3987 Fax: 03-3811-7581
<strong>Eisai</strong> Distribution <strong>Co</strong>., <strong>Ltd</strong>.
Atsugi-shi, Kanagawa
Tel: 046-248-2655 Fax: 046-248-5909
Kan Research Institute, Inc.
Shimogyo-ku, Kyoto
Tel: 075-325-5118 Fax: 075-325-5130
Clinical Supply <strong>Co</strong>., <strong>Ltd</strong>.
Hashima-gun, Gifu
Tel: 058689-2712 Fax: 058689-3225
Takehaya <strong>Co</strong>., <strong>Ltd</strong>.
Bunkyo-ku, Tokyo
Tel: 03-3817-5340 Fax: 03-3811-0216
Herusu <strong>Co</strong>., <strong>Ltd</strong>.
Toshima-ku, Tokyo
Tel: 03-3971-4919 Fax: 03-3971-5346
<strong>Eisai</strong> Seikaken <strong>Co</strong>., <strong>Ltd</strong>.
Bunkyo-ku, Tokyo
Tel: 03-5689-6460 Fax: 03-5689-6464
Kawashima <strong>Co</strong>., <strong>Ltd</strong>.
Hashima-gun, Gifu
Tel: 058689-2881 Fax: 058689-3691
Dymec <strong>Co</strong>., <strong>Ltd</strong>.
Ichikawa-shi, Chiba
Tel: 047-396-1611 Fax: 047-396-1600
Hisakata <strong>Co</strong>., <strong>Ltd</strong>.
Bunkyo-ku, Tokyo
Tel: 03-3813-6898 Fax: 03-3818-9940
Seiansha <strong>Co</strong>., <strong>Ltd</strong>.
Toshima-ku, Tokyo
Tel: 03-3980-1021 Fax: 03-3980-7302
Bracco-<strong>Eisai</strong> <strong>Co</strong>., <strong>Ltd</strong>.
Bunkyo-ku, Tokyo
Tel: 03-3813-4311 Fax: 03-3813-4348
Gakuen Shoji <strong>Co</strong>., <strong>Ltd</strong>.
Tsukuba-shi, Ibaraki
Tel: 0298-47-8422 Fax: 0298-47-5039
* In August 1999, Sansho <strong>Co</strong>., <strong>Ltd</strong>. was renamed Sannova <strong>Co</strong>., <strong>Ltd</strong>.
41

42
North America
<strong>Eisai</strong> <strong>Co</strong>rporation <strong>of</strong> 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
<strong>Eisai</strong> Research Institute <strong>of</strong> Boston, Inc.*
4 <strong>Co</strong>rporate Drive
Andover, Massachusetts 01810-2441, U.S.A.
Tel: 1-978-794-1117 Fax: 1-978-794-4910
<strong>Eisai</strong> 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
<strong>Eisai</strong> 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
<strong>Eisai</strong> London Research Laboratories, <strong>Ltd</strong>.
Bernard Katz Building, University <strong>Co</strong>llege London
Gower Street, London WC1E 6BT, U.K.
Tel: 44-171-388-4746 Fax: 44-171-413-1121
<strong>Eisai</strong> <strong>Ltd</strong>.
Hammersmith International Centre, 3 Shortlands, 2nd Floor
London W6 8EE, U.K.
Tel: 44-181-600-1400 Fax: 44-181-600-1401
<strong>Eisai</strong> Pharma-Chem Europe <strong>Ltd</strong>.
<strong>Co</strong>mmonwealth House, Hammersmith International Centre
2 Chalkhill Road, London W6 8DW, U.K.
Tel: 44-181-741-1330 Fax: 44-181-913-0019
<strong>Eisai</strong> GmbH
Lyoner Strasse 14
D-60528 Frankfurt am Main, Germany
Tel: 49-69-665850 Fax: 49-69-6658525
<strong>Eisai</strong> Machinery GmbH
Mathias Brueggen Strasse 142
D-50829 <strong>Co</strong>logne, Germany
Tel: 49-221-9564590, Fax: 49-221-9564599
<strong>Eisai</strong>-Novartis GmbH & <strong>Co</strong>. KG
Hochstrasse 3-5
D-90429 Nuremberg, Germany
Tel: 49-911-27312240 Fax: 49-911-27312816
<strong>Eisai</strong> 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
<strong>Eisai</strong> B.V.
Strawinskylaan 909, 1077 XX
Amsterdam, <strong>The</strong> Netherlands
Tel: 31-20-575-3340 Fax: 31-20-575-3341
* In April 1999, <strong>Eisai</strong> Merrimack Valley Laboratories, Inc. merged with <strong>Eisai</strong> Research Institute
<strong>of</strong> Boston, Inc.
Asia
P.T. <strong>Eisai</strong> Indonesia
New Summitmas ll 12th Floor Jl, Jend. Sudirman Kav. 61-62
Jakarta 12069, Indonesia
Tel: 62-21-522-6780 Fax: 62-21-522-6790
<strong>Eisai</strong> Asia Regional Services Pte. <strong>Ltd</strong>.
152 Beach Road No. 11-04
Gateway East, Singapore 0718
Tel: 65-296-6977 Fax: 65-292-2185
<strong>Eisai</strong> (Malaysia) Sdn. Bhd.
74, Jalan University, 46200 Petaling Jaya
Selangor, Malaysia
Tel: 60-3-757-6964 Fax: 60-3-757-9211
<strong>Eisai</strong> (Thailand) Marketing <strong>Co</strong>., <strong>Ltd</strong>.
6th Floor, Diethelm Tower A, 93/1 Wireless Road
Bangkok 10330, Thailand
Tel: 66-2-256-6296 Fax: 66-2-256-6299
Hi-<strong>Eisai</strong> Pharmaceutical Inc.
4th Floor, Reliable Building, 7230 Malugay Street
Makati, Metro Manila, Philippines
Tel: 63-2-893-9636 Fax: 63-2-818-7745
<strong>Eisai</strong> Hong Kong <strong>Co</strong>., <strong>Ltd</strong>.
Room 307, Carnival <strong>Co</strong>mmercial Centre
18 Java Road, North Point, Hong Kong, China
Tel: 852-2516-6128 Fax: 852-2561-5042
<strong>Eisai</strong> Korea Inc.
16th Floor Textile Center, 944-31, Daechi-3 dong
Kangnam-ku, Seoul 135-283, Republic <strong>of</strong> Korea
Tel: 82-2-528-0555 Fax: 82-2-528-0557
<strong>Eisai</strong> 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 <strong>Co</strong>., <strong>Ltd</strong>.
9th Floor, No. 18, Chang An E. Road, Sec. 1
Taipei, Taiwan
Tel: 886-2-2-531-4175 Fax: 886-2-2-531-0063
<strong>Eisai</strong> (Suzhou) Pharmaceutical <strong>Co</strong>., <strong>Ltd</strong>.
Bai Yu Road #32 Suzhou Industrial Park
Suzhou, Jiangsu Province, 215021, China
Tel: 86512-761-3211 Fax: 86512-761-8640
Shenyang <strong>Eisai</strong> Pharmaceutical <strong>Co</strong>., <strong>Ltd</strong>.
No. 47 Bai Ta Lu Da Dong
District Shenyang, 110041, China
Tel: 8624-8852-0516 Fax: 8624-8850-0734

44
CORPORATE INFORMATION
(As <strong>of</strong> March 31, 1999)
Date <strong>of</strong> Foundation:
1941
<strong>Co</strong>rporate Address:
<strong>Eisai</strong> <strong>Co</strong>., <strong>Ltd</strong>.
4-6-10 Koishikawa, Bunkyo-ku,
Tokyo 112-8088, Japan
Tel: 03-3817-3700
Annual Meeting:
<strong>The</strong> annual shareholders’ meeting <strong>of</strong> <strong>Eisai</strong> <strong>Co</strong>., <strong>Ltd</strong>., is held
in June.
Stock Exchange Listings:
<strong>Eisai</strong> common stock is listed on the Tokyo Stock Exchange
and the Osaka Securities Exchange
Independent Public Accountants:
Deloitte Touche Tohmatsu (by Tohmatsu & <strong>Co</strong>., the Japanese
member firm <strong>of</strong> Deloitte Touche Tohmatsu International)
MS Shibaura Bldg. 4-13-23, Shibaura,
Minato-ku, Tokyo 108-0023, Japan
Paid-in Capital:
¥44,853 million
Number <strong>of</strong> Shares Outstanding:
296,414,231
Number <strong>of</strong> Shareholders:
22,637
Transfer Agent:
<strong>The</strong> Toyo Trust and Banking <strong>Co</strong>., <strong>Ltd</strong>.
Depositary and Agent with Respect to American Depositary
Receipts for <strong>Co</strong>mmon Shares:
Morgan Guaranty Trust <strong>Co</strong>mpany <strong>of</strong> New York
60 Wall Street,
New York, New York 10260-0060, U.S.A.
Newspaper for Public Notice:
Nihon Keizai Shimbun
BOARD OF DIRECTORS AND CORPORATE AUDITORS
(As <strong>of</strong> June 29, 1999)
Chairman
Yuji Naito
President and Chief Executive Officer
Haruo Naito
Executive Vice President
Yoshito Kishi
Senior Vice President
Hiromasa Nakai
Managing Directors
Koichi Ogawa
Soichi Matsuno
Aishin Shinoda
Tatsuo Komaki
Tadashi Nakai
Ichiro Shinkai
Directors
Yukio Akimoto
Hiroshi Yamauchi
Nobukatsu Hashimoto
Isao Okabayashi
Teruo Osawa
Mitsuhiro Ebata
Koichi Katayama
Yoji Takaoka
Matsuo Ohara
Jiro Hasegawa
Hideaki Matsui
Kenji Toda
<strong>Co</strong>rporate Auditors
Masato Sasaki
Nobuo Eda
Kimihiko Hiyama
Shin Okada