May 11, 2006

Takeda Pharmaceutical Company Limited

Takeda Announces "2006-2010 Medium-Term Management Plan"
- Growth toward a World-class Pharmaceutical Company
with Japanese Origin -

Osaka, Japan, May 11, 2006 - Takeda Pharmaceutical Company Limited ("Takeda") today announced the outline of its "2006-2010 Medium-Term Management Plan," in which the company will pursue further enhancement of R&D pipeline through collective efforts to a level where the company can expect sales of in-house ethical products of 2 trillion yen in fiscal 2015, and to achieve self-sustaining growth mainly from in-house products through product strategies from a long-term perspective.

With the achievements from the late '90s till now, such as the growth of four international strategic products*, expansion of overseas operations by reinforcing infrastructures, and restructuring of non-pharmaceutical businesses, Takeda is now prepared to strive to become a truly world-class pharmaceutical company. For that purpose, the next five years are being positioned as a crucial period to ensure in-house R&D capability for continued creation of new products and to further increase our presence in overseas markets, even in the midst of a competitive global environment.

[*] Leuprorelin, Lansoprazole, Candesartan and Pioglitazone

Focusing on Takeda-ism, which represents the corporate philosophy referring to "Integrity = fairness, honesty, perseverance" as the basis of all the business activities, Takeda is aiming to realize sustainable growth and increased corporate value globally by achieving the targets set in this Medium-Term Management Plan, with comprehensive improvement of strengths such as "establishment and in-depth implementation of strategies from a long-term perspective" and "high productivity and efficiency."

Outline of 2006-2010 Medium-Term Management Plan

Operational targets in Fiscal 2010

• • Enhancement of R&D pipeline, toward sales of in-house ethical products of 2 trillion yen^[*2]in fiscal 2015
• • Sales of in-house ethical products : 1.4 trillion yen^[*2]
• • Market share : 2.5% (weighted average of countries where Takeda has its own sales channels)
• • R&D expenses : investment up to 20% of the sales of in-house ethical products
• • Earnings per share (EPS) : more than 7% increase per year on average (excluding extraordinary gain and loss)
• • Return on equity (ROE) : maintenance of the current level

[*2]:including sales of unconsolidated affiliates/subsidiaries

Management tasks

1. Enhancement of capability to create new drugs through in-house R&D activities

By thorough review of the R&D management scheme and investments focused on the global research infrastructure, Takeda will build a structure that will enable it to continue launching new products from its in-house R&D from fiscal 2011. At the same time, Takeda will invest in in-licensing and alliance activities as supportive measures for in-house research. The goal is to enhance the R&D pipeline to a level where the company can expect sales of in-house ethical products of 2 trillion yen in fiscal 2015.

2. Formulation of a tri-polar marketing function (Japan, USA, Europe)

Takeda will solidify its marketing structure in three regions (Japan, USA, Europe), and will conduct self-sustaining and appropriate operations for respective markets. Each regional marketing function will coordinate closely and directly with the headquarters in Japan. The target market share in fiscal 2010 in each region is as follows:

•Japan

Maintaining the market leader position with 7% market share with Takeda's own products.

•USA

More than 1.5% market share by wholly owned subsidiary, Takeda Pharmaceuticals North America, Inc.

•Europe

More than 1.1% weighted average market share in six countries where Takeda has its own sales channels. (France, UK, Italy, Germany, Austria, Switzerland)

•Asia(excluding Japan)

More than 1.4% weighted average market share in five countries where Takeda has its own sales channels. (P. R. of China, Taiwan, Philippines, Thailand, Indonesia)

Takeda will continue further solidifying the marketing structure in view of a market share of more than 3% in the U.S. and Europe as the next target after fiscal 2010, as a global corporate.

3. Establishment of an efficient global management scheme for corporate headquarters' functions

Takeda will conduct business operations with increased efficiency and consistency on a group-wide level. Maintaining the principles of " self-responsibility" and " self-independency," the headquarters will control the relevant functions of each group company sharing common operational policies. Takeda will also continue enhancing the " MPDRAP function" ^[*3] by clarifying the scope of responsibility, which will lead to thorough implementation of product strategies in an integrated manner.

[*3]:Enables quick decision-making by sharing information across divisions and departments in marketing, production, development, research, alliances, and patents

4. Securing human resources necessary for global operation

Takeda will improve human resource assets by systematically hiring and fostering, both in Japan and overseas, those who are capable of managing global operations and conducting the businesses in accordance with the corporate philosophy represented by Takeda-ism, which refers to "Integrity = fairness, honesty, perseverance."

5. Pursuing the highest productivity and efficiency in each of the "MPDRAP" functions

Pursuing and realizing the world's highest standard of productivity and efficiency will enable Takeda to enhance each function of Marketing, Production, Development, Research, Alliances and Patents to a level that will enable the company to compete against major pharmaceutical companies in the U.S. and Europe.

Policies for return to shareholders

During the 2006-2010 Medium-Term Management Plan, appropriately as an R&D-oriented, world-class pharmaceutical company, Takeda will continue conducting strategic investment to enhance its R&D pipeline and to improve the business infrastructure both in Japan and overseas. This will enable sustainable growth of our corporate value.

As for profits, Takeda is planning to conduct share buyback in order to improve capital efficiency and promote expeditious financial strategies, taking into consideration its overall capital requirements, and continuing stable increase of the dividend payout ratio.

The basic dividend policy for the next five years continues to be return of profits to shareholders stably according to consolidated results from a long-term perspective.
In concrete terms, Takeda plans to gradually increase the consolidated dividend payout ratio to approximately 45% by fiscal 2010.

# # #

Forward-looking statements

This press release contains forward-looking statements regarding the Company's plans, outlook, strategies and results for the future. All forward-looking statements are based on the judgments derived from information available to the Company at the time of issuance of this release.
Certain risks and uncertainties could cause the Company's actual results to differ mater-ially from any projections presented in this release. Theses risks and uncertainties include, but are not limited to: economic circumstances surrounding the Company's business, competitive pressures, related laws and regulations, product development programs, and changes in exchange rates.

# # #