Strategic Marketing Unit (SMU)

CHUGAI PHARMACEUTICAL CO., LTD. Senior Vice President Head of Strategic Marketing Unit Tatsuro Kosaka August 5, 2005

Forward Looking Statements

This presentation may include forward looking statements pertaining to the business and prospects of Chugai Pharmaceutical Co., Ltd. (the Company). These statements reflect the Companys current analysis of existing information and trends. Actual results may differ from expectations based on risks and uncertainties that may affect the Companys businesses.

Main Targets to Achieve Sunrise 2010

Discovery Discoveryand andininlicensing licensingof ofinnovative innovative new newdrugs drugs
Strengthen Chugais research functions and enter new therapeutic areas Accelerate in-licensing of Roche projects

Maximize Maximizeproduct productvalue value

Speed-up drug development, Increase productivity Strategic marketing Strengthen domestic sales force

Overseas Overseasbusiness business

Ensure the success of MRA

Reform cost structure

Reinforce the foundation for management

Strategic Marketing
Before:
Focus was on the realization and collaboration of the expertise within each function
Development strategy
collaboration

Research strategy

Marketing strategy
collaboration

Drug Discovery

PoC

Late Stage Development Filing

Sales/ Marketing

After July 1: Strategic Marketing

Seamless therapeutic area strategies from drug discovery to sales Expand the presence of each therapeutic area franchise Drug Discovery PoC
Late Stage Development Filing

Sales/ Marketing

Consistent product LifeCycle strategy after PoC Product value maximization 4

SMU Mission
In order to maximize the value of pharmaceutical projects and products, Strategic Marketing Unit (SMU) is to plan and manage Product LifeCycle (and its team) and formulate the Therapeutic Area Strategy. In doing so, SMU will promote the concept of Product LifeCycle Management within the Chugai Group and enhance business oriented perspectives in development and marketing strategies for post- PoC* projects and products.
* PoC: Proof of Concept, stage of drug development that confirms findings are
applicable in humans (Phase IIa)
5

LifeCycle Team
Sales

Regulatory Affairs Function Leader

Function Leader (PM) *

Nonclinical
Function Leader

LifeCycle Leader (LCL)

Function Leader Clinical Development

Function Leader CMC

* Name a function leader from sales division Product Manager (PM)

Keys of Changes
Post-PoC:BUSINESS oriented product LifeCycle management Projects and products take a priority

Formulate LifeCycle leaders (LCL) and LifeCycle teams (LCT) structure Line functions as specialists support LCT Pre-PoC:SCIENCE oriented PoC with speed

New Organization Chart

President

(as of 1 July, 2005)

SMU

MRA Unit

Corporate Regulatory Compliance and Quality Div.

Corporate Staff Depts.

Functional Depts.

Strategic Planning Dept.

Project Management (Pre-PoC) Dept.

Business Intelligence Dept.

Business Development Dept.

Oncology Disease Area Dept.

Renal Disease Area Dept.

Bone Disease Area Dept.

Targeted Disease Area Dept.

Contacts: Corporate Communications

Investor Relations Group
Tel: +81 (0)3-3273-0554 Fax: +81 (0)3-3281-6607 e-mail: ir@chugai-pharm.co.jp
Mac Uchida, Kae Maeda, Yusuke Tokita