January 20, 2006

Takeda Pharmaceutical Company Limited

Takeda's Investigational Compound SYR-322 for Treatment of Diabetes Enters into Phase 3 Clinical Stage

Osaka, Japan, January 20, 2006 - Takeda Pharmaceutical Company Limited ("Takeda") announced today that its investigational compound SYR-322 has entered into Phase 3 clinical stage. SYR-322 is one of the DPP4 inhibitors for the treat-ment of type 2 diabetes discovered by one of Takeda's subsidiaries in the US, Takeda San Diego, Inc. The Phase 3 studies are to be conducted globally through Takeda Global Research & Development Center Inc. using the contract research services of PPD, Inc. (Wilmington, N.C.).

DPP4 inhibitors, taken orally, block the degradation of GLP-1 (Glucagon-like peptide-1), and help to maintain the concentration of GLP-1 in blood for a longer period of time. This is important because GLP-1 stimulates pancreatic beta cells to increase the secretion of insulin, and GLP-1 has the potential to improve beta cell function itself. Therefore, DPP4 inhibitors may represent a new generation of oral agents for diabetes treatment.

"We are particularly excited about the quality and speed of our DPP4 program," said Stephen W. Kaldor, Ph.D., President of Takeda San Diego. "We have advanced from first laboratory experiment to the start of Phase 3 clinical trials in less than four years. This is roughly twice as fast as the industry average rate for achieving this goal. We believe we are maximizing our chances to capture the largest possible share of this substantial market opportunity."

"We are pleased that the development of SYR-322 has progressed to enter into the Phase 3 clinical stage," added Kiyoshi Kitazawa, Ph.D., member of the board, General Manager of Pharmaceutical Development Division of Takeda. “For patients with diabetes, there is a need for a variety of treatment options that can control the blood sugar level and prevent the development and progress of diabetic complications. In this context, we expect we can offer this new treatment option to patients with diabetes as early as possible."

About Takeda San Diego, Inc.

Takeda San Diego (TSD) is Takeda's first US-based discovery research operation. TSD achieves an advantage in drug discovery by leveraging its leading structural biology capabilities to determine the three dimensional structures of drug targets ahead of competitors. TSD then uses these structures to efficiently create best-in-class drug candidates to treat diabetes, cancer, and other important diseases.

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