September 29, 2005

Takeda Pharmaceutical Company Limited

Takeda to Co-Develop and Co-Promote an Investigational Compound for the Treatment of Cancer with Merck KGaA

Osaka, Japan, September 29, 2005 --- Takeda Pharmaceutical Company Limited ("Takeda") announced today that it has entered into a co-development and co-commercialization agreement for Matuzumab (development code: EMD 72000), a humanized monoclonal antibody for the treatment of cancer, created by Merck KGaA ("Merck", Darmstadt, Germany).

Under the agreement, Takeda will pay an up-front payment of EUR 60 million, and also development milestones. The development expenses will be shared by both parties while Takeda will also pay commercial milestones. This agreement covers world's major markets such as the U.S.A., several countries in Europe, Japan and some countries in Asia, and both parties will co-promote the product while having a formula for splitting profits, with Takeda booking Matuzumab sales in Japan, while Merck will book the sales in all other countries.

Matuzumab is a recombinant, humanized, monoclonal antibody (MAb) against the human EGFR (epidermal growth factor receptor), and it inhibits EGFR which is implicated in the development and progression of a number of human solid tumors. It currently is in Phase II clinical trials in patients with non-small cell lung, gastric and colorectal cancers.

"We are pleased with the conclusion of the agreement for Matuzumab, a treatment of the cancer, which is one of our core therapeutic areas," said Yasuchika Hasegawa, President & COO of Takeda. "We believe we can maximize the product value of this compound through mutual and close cooperation in development and commercialization with Merck."

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About Takeda
Takeda, located in Osaka, Japan, is a research-based global company with its main focus on pharmaceuticals. As the largest pharmaceutical company in Japan and one of the global leaders of the industry, Takeda is committed to striving toward better health for individuals and progress in medicine by developing superior pharmaceutical products.

About Merck
Merck is a global pharmaceutical and chemical company with sales of EUR 5.9 billion in 2004, a history that began in 1668, and a future shaped by 28,600 employees in 54 countries. Its success is characterized by innovations from entrepreneurial employees.
Merck's operating activities come under the umbrella of Merck KGaA, in which the Merck family holds a 73% interest and free shareholders own the remaining 27%. The former U.S. subsidiary, Merck & Co., has been completely independent of the Merck Group since 1917.

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