March 20, 2008

Takeda Pharmaceutical Company Limited

Announcement on the Restructuring of U.S. Operations

March, 20, 2008, Osaka, Japan --- Takeda Pharmaceutical Company Limited (“Takeda”) today announced that it had reached an agreement on March 19, 2008 U.S. time, with Abbott Laboratories (Illinois, U.S.A. “Abbott”) to evenly divide the value of their 50/50 joint venture TAP Pharmaceutical Products Inc. (Illinois, U.S.A., “TAP”). TAP is a joint venture between Takeda America Holdings, Inc. (New York, U.S.A., “TAH”, a wholly-owned subsidiary of Takeda) and Abbott (TAH and Abbott each hold a 50% equity interest in TAP).

Takeda announced that pursuant to the transaction with Abbott, TAP will become a wholly-owned subsidiary of TAH, and will be merged into Takeda Pharmaceuticals North America (Illinois, U.S.A., “TPNA”, a wholly-owned subsidiary of TAH). Thereafter, TPNA will transfer the integrated development function of TAP to Takeda Global Research & Development Center Inc. (Illinois, U.S.A., “TGRD”).

1. The purpose of the restructuring

Since its creation by Takeda and Abbott in 1977, TAP has contributed to the growth of Takeda’s ethical pharmaceutical business in the U.S. market through expanding the sales of Lupron Depot, a treatment for prostate cancer and endometriosis, and Prevacid, a peptic ulcer treatment. This restructuring will consolidate the U.S. development and marketing functions of the Takeda Group, which will enhance its ability to flexibly respond to changes in market needs and to its product-line. Further, Takeda expects sales and cost synergies from the restructuring.

“I am excited about this transaction, which is mutually beneficial and equitable to both companies as we pursue our respective business strategies, and I want to take this opportunity to thank our partners at Abbott and express my sincere appreciation for the invaluable collaboration required to grow and manage this successful joint venture for more than 30 years of existence, and also to the many individuals who supported TAP,” said Yasuchika Hasegawa, president of Takeda. “With this agreement, two successful organizations will be joined as one Takeda, and I believe we will be able to further enhance our presence in the U.S., which is the world’s largest pharmaceutical market, supported by a stronger sales force position, mainly in the primary care market, and stronger development capability. Our new U.S. organizations will play a significant role in our global growth.”

2. Outline and schedule for the restructuring

April 2008 (Plan)

TAP will be divided, and Abbott will obtain the rights to Lupron, all employees and assets primarily related to Lupron and others. In addition to Lupron, Abbott will receive payments based on TAP's other current and certain future products.
TAP, then a wholly-owned subsidiary of Takeda, will retain Prevacid, dexlansoprazole (TAK-390MR) and ilaprazole (IY-81149), which are proton pump inhibitors, as well as febuxostat (TMX-67), for the management of hyperuricemia in patients with gout.

In addition, Mr. Alan MacKenzie, currently president of TAP, will assume the position of CEO of TPNA.

July 2008 (Plan)

TPNA and TAP will be combined, and TPNA will transfer the development function, which is currently held by TAP, to TGRD.

The adjustments of values for the purpose of equal division of value between Takeda and Abbott will be conducted separately after the division of TAP.

3. Outline of the companies involved:

(1) Trade name	TAP Pharmaceutical Products Inc.	Takeda Pharmaceuticals North America, Inc.	Takeda Global Research & Development Center Inc.
(2) Main business	Sales, marketing and development of pharmaceuticals	Sales and marketing of pharmaceuticals	Development of pharmaceuticals
(3) Month and year of foundation	May 1985	May 1998	January 2004
(4) Location of head office	675 North Field Drive, Lake Forest, IL 60045, U.S.A.	One Takeda Parkway, Deerfield, IL 60015, U.S.A.	One Takeda Parkway, Deerfield, IL 60015, U.S.A.
(5) Representative	Alan MacKenzie	Mark Booth	Dave Recker
(6) Capital	39.5 million US$	1 US$	5 million US$
(7) Fiscal year	December 31	March 31	March 31
(8) Financial results for previous year	Net income for FY ended December 31, 2007 996 million US$	Sales for FY ended March 31, 2007 2,617 million US$	- - -

4. The impact on Takeda’s consolidated financial results

There will be no impact from this transaction on Takeda’s consolidated financial results for the current fiscal year.

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