November 2, 2006

Takeda Pharmaceutical Company Limited

Discontinuation of Development of Investigational
Compound TAK-128 for Peripheral Diabetic Neuropathy

Osaka, Japan, November 2, 2006 --- Takeda Pharmaceutical Company Limited （President: Yasuchika Hasegawa, "Takeda"） announced today the discontinuation of development of an investigational compound TAK-128, which was discovered by Mitsubishi Pharma Corporation （President: Takeshi Komine, "Mitsubishi Pharma"）and has been under development for treatment of peripheral diabetic neuropathy.

In accordance with this discontinuation, both parties terminated the license agreement in which an exclusive worldwide right for the development and marketing of TAK-128 was granted to Takeda.

Phase 2 clinical studies of TAK-128 have been conducted in Japan, North America and Europe, and based on the thorough review of the clinical data obtained to date, Takeda and Mitsubishi Pharma concluded that TAK-128 does not show sufficient efficacy to support continuation of development activities.

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