News Releases

March 31, 2004

Transfer of Rights Agreement for North America and Europe Reached on Zonegran®

March 31, 2004---Dainippon Pharmaceutical Co., Ltd. (Headquarters: Osaka, President: Kenjiro Miyatake) today announced an agreement that will see Elan (Headquarters: Dublin, President and CEO: Kelly Martin) transfer its interests in zonisamide in North America and Europe to Eisai Co., Ltd. (Headquarters: Tokyo, President: Haruo Naito). Dainippon had granted Elan the exclusive rights for zonisamide in North America and Europe.

Zonisamide is an anti-epilepsy agent with a broad spectrum of clinical efficacy in various types of seizures, including intractable epilepsy. In Japan, Dainippon launched the product in 1989 as Excegran®. In the United States, zonisamide was developed by Dainippon and launched by Elan in 2000 as Zonegran®. Zonegran® has been increasing its share in the US market steadily since then. In Europe, a Marketing Authorization Application (MAA) was submitted to European Medicines Evaluation Agency (EMEA) by Elan in 2003.

With the strong interest Eisai-which has successfully developed and marketed an anti-Alzheimer's agent in the U.S. and Europe-showed in Zonegran® and Elan's recent realignment of its business strategy such that Zonegran® no longer matches its profile for "core" products, Dainippon believes this transfer of rights for Zonegran® from Elan to Eisai will be beneficial for all parties involved.

Dainippon will support Eisai to further develop the commercial potential of the product, through its cooperation and the provision of information necessary to ensure the proper use of Zonegran® in the U.S. and Europe.