August 30, 2007

Eli Lilly Japan K.K.
Takeda Pharmaceutical Company Limited

Lilly and Takeda to Terminate Joint Development/Co-Marketing Agreement on Ruboxistaurin mesylate, an agent for the treatment of diabetes microvascular complications

Eli Lilly Japan K.K., Kobe, Japan (“Eli Lilly Japan”) and Takeda Pharmaceutical Company Limited, Osaka, Japan (“Takeda”) jointly announced that the agreement on joint development and co-marketing for ruboxistaurin mesylate (PKCβ Inhibitor, LY333531) in Japan, between Eli Lilly and Company (“Eli Lilly”), which is a parent company of Eli Lilly Japan, and Takeda was terminated.

This agent is an investigational compound discovered and developed by Eli Lilly. In Japan, pursuant to an agreement concluded on December 18, 2003, phase 2 clinical studies for the treatment of diabetic peripheral neuropathy and diabetic macular edema have been conducted by Eli Lilly Japan and Takeda respectively.

Eli Lilly and Takeda judged that the overall results of diabetic peripheral neuropathy and diabetic macular edema clinical studies did not meet its pre-specified go/no go decision criteria for phase 3 clinical studies, and agreed to terminate the original agreement.

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Contact:

Eli Lily Japan K.K. Corporate Affairs Dept. Tel: +81-3-3470-8234 (Tokyo)        +81-78-242-9258 (Kobe)

Takeda Pharmaceutical Company Limited Corporate Communications Dept. Tel: +81-6-3278-2037 (Tokyo)