News Releases

Aug. 5, 2002

Animal Health Business Transferred from Tanabe to Dainippon

August 5, 2002 --- Dainippon Pharmaceutical Co., Ltd. (Osaka; president: Kenjiro Miyatake) and Tanabe Seiyaku Co., Ltd. (Osaka; president: Natsuki Hayama) today agreed to transfer Tanabe's animal health business to Dainippon.

Dainippon positions animal health business as its second most important operation, following its human pharmaceutical business. Focusing on companion animal business, Dainippon is currently in the leading position in the animal health business sector in Japan. The Japanese animal health industry, however, has recently seen increasing trends toward realignment and integration. Given the situation, in order to continue to be successful, it is essential for Dainippon to enhance its business operations in farm animal field including livestock and aquaculture, in addition to further expansion of its current companion animal business.

On the other hand, Tanabe's animal health business division has supplied unique drugs for farm animals such as livestock and aquaculture, and has gained high reputation in the Japanese market. However, recognizing that it would be difficult to continue its animal health business if the division remains specialized in the livestock and aquaculture market, Tanabe has investigated future business development possibilities, including alliance with other companies and divesture of the division.

The present transfer is expected to enable Dainippon to make use of Tanabe's resources concerning the livestock and aquaculture market and provide Dainippon with an opportunity to further expand its business in the farm animal health market, which comprises the major part of the animal health market. In addition, the transfer is expected to create a synergistic effect on further development of Dainippon in the companion animal business. Dainippon is committed to further expansion of its business toward gaining even further secured position in the animal health market.

Tanabe, on the other hand, by further advancing its efforts to reorganize its operations, can concentrate on ethical drugs, its core business, and will endeavor to enhance its competitive power and research and development potential in the ethical drug market.

[Reference]
1) Scheduled date of business transfer: November 1, 2002
2) Outline of Dainippon's animal health business
*Annual sales : 24.646 billion yen (as of 2002 March term)
*Sales breakdown : Products for companion animals (94%) and livestock-related products (5%)
*Number of employees : 75
3) Outline of Tanabe's animal health business
*Annual sales : 2.643 billion yen (as of 2002 March term)
*Sales breakdown : Livestock-related products (63%),
fisheries-related products (36%) and products for companion animals (1%)
*Number of employees: 25