Merger DAIICHI SANKYO EUROPE / Two Traditions. One Vision.

Frankfurt (ots) -

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On 1 July 2006 the next step in the global
integration of SANKYO COMPANY, LIMITED and DAIICHI Pharmaceutical
Co., Ltd. was achieved in Europe. The current SANKYO subsidiary,
SANKYO PHARMA GmbH has been renamed as DAIICHI SANKYO EUROPE GmbH.

"Two Traditions. One Vision." The claim symbolises the merger
process as well as the future of the new company," says Mr. Takashi
Shoda, president and CEO of DAIICHI SANKYO COMPANY, LIMITED. "DAIICHI
and SANKYO, two leading Japanese pharmaceutical companies that both
have a strong tradition in pharmaceutical research and development,
are combining their strengths to become a Global Pharma Innovator.
The formation of DAIICHI SANKYO COMPANY, LIMITED in Japan as the
joint holding company on 28 September 2005 marked the beginning of a
worldwide merger process. The European part of the merger - based on
the know-how and tradition of the two pharmaceutical companies - is
the next important step on our way to a joint future," adds Shoda.
The global integration process will be finalised by 31 March 2007.

The first objective of the worldwide integration is to satisfy the
unmet medical needs of patients and health care professionals.
With a turnover of 6.8 billion euros in the fiscal year 2005 and an
operating income of 1.1 billion euros, DAIICHI SANKYO has become one
of the top three pharmaceutical companies in Japan and one of the top
20 pharmaceutical companies worldwide. The new company has 18,400
employees, out of which 1,700 work in Europe.

There were two major reasons for the merger of SANKYO and DAIICHI
in 2005:
Strengthening research and development in core indication areas
such as cardiovascular disease, diabetes, metabolic disease,
bone/joint disease, infectious disease, cancer, immunological /
allergic disease Global expansion of business activities

SANKYO and DAIICHI both have a long record of producing successful
development compounds. SANKYO is the inventor of statins, which
revolutionised the treatment of hyperlipidemia. The company also
invented glitazone, the first class of antidiabetic medication to
also have cardiovascular prevention effects. SANKYO also successfully
launched its AII antagonist Olmesartan in 2002 (BENICAR(r) in US /
OLMETEC(R) in Europe). It is the seventh AII antagonist launch, but
global sales will already excess 740 million euros this year.

The DAIICHI research and development (R&D) activities were focused
on antibiotics, bringing world class quinolones like ofloxacin and
levofloxacin to the market. With the launch of Camptosar (irinotecan
HCL injection) DAIICHI has successfully entered the highly
challenging and competitive oncology area.

With an annual R&D budget of 1.2 billion euros, a new Japanese R&D
powerhouse has been born for the development of a variety of "best in
class" and "first in class" candidates which are currently in the
DAIICHI SANKYO pipeline.

The second objective of the merger is the further global expansion
of the business. SANKYO, with a turnover of 4.3 billion euros in
2005, is already represented in the US and European markets. DAIICHI,
with a turnover of 2.5 billion euros in 2005 is also focusing on the
global market. Accordingly, newly established DAIICHI SANKYO Co.,
Ltd. has the strong intention of enhancing its business development
in the global market.

Since DAIICHI SANKYO Co., Ltd. expects the launch of some "best in
class" products like Prasugrel (CS-747), an oral antiplatelet product
with a superior product profile compared to previous ADP inhibitors,
and Rivoglitazone (CS-011), a "Best in Class" glitazone for diabetes
treatment in the next couple of years. The merger is also laying the
foundation for further substantial global business expansion as well
as for growth in the Japanese home market.

For further information visit www.daiichi-sankyo.eu

CONTACT
Olaf Lamberz
Corporate Communication
Phone +49(0)89/78 08-442
olaf.lamberz@daiichi-sankyo.eu