Kitasato Daiichi Sankyo Vaccine Co., Ltd.

PDF (89KB)PDF For Immediate Release Company name: DAIICHI SANKYO COMPANY, LIMITED Representative: Sunao Manabe, Representative Director, President and COO (Code no.: 4568, First Section, Tokyo Stock Exchange) Please address inquiries to Junichi Onuma, Vice President, Corporate Communications Department Telephone: +81-3-6225-1126 https://www.daiichisankyo.com Tokyo, Japan (May 17, 2019) – Daiichi Sankyo Company, Limited (hereafter, Daiichi Sankyo) announced today that the Company has been unable to fulfill its obligation to build a scheme to supply vaccines for 40 million people in the time allotted under the Japanese Ministry of Health, Labour and Welfare’s cell culture vaccine production facility capacity building project, which is a part of the Ministry’s second initiative for H5NI vaccine development and production capacity building grant. After being selected for the project, Daiichi Sankyo had been engaged in preparations to build a scheme to supply vaccines from August 2011 to March 31, 2019. Daiichi Sankyo and its Group company, Kitasato Daiichi Sankyo Vaccine Co., Ltd., which was dissolved after its functions were transferred to Daiichi Sankyo or its Group company, Daiichi Sankyo Biotech Co., Ltd. (hereafter, Daiichi Sankyo Biotech) on April 1, 2019, reported in April 2014 that they were unable to achieve the original goal of creating a scheme by March 31, 2014, to supply the vaccines for 40 million people in six months. It was discovered in the development phase that higher doses are needed than expected when designing facilities, and they have addressed to increase the vaccination yield and improve the facilities. However, they have been unable to build a scheme capable of supplying vaccines for 40 million people in 6 months by March 31, 2019, the extended time limit for the initiative, and the scheme built is now capable of supplying vaccines for approximately 23 million people. Daiichi Sankyo sincerely apologizes for having been unable to build the required scheme in the timeframe allotted. In addition to returning a part of the grant, Daiichi Sankyo Biotech will pay a delinquency charge.Daiichi Sankyo believes that assumed delinquency charges have been recorded in the previous fiscal years, and have minor impact on Daiichi Sankyo consolidated profit and loss in the fiscal year ending March 31, 2020. Daiichi Sankyo and Daiichi Sankyo Biotech will make efforts toward maintaining and managing a scheme that will be fully capable of supplying the required quantity of H5NI influenza vaccine necessary for when a pandemic breaks out, and will contribute to the health of people in Japan. About Daiichi Sankyo Daiichi Sankyo Group is dedicated to the creation and supply of innovative pharmaceutical products to address diversified, unmet medical needs of patients in both mature and emerging markets. With over 100 years of scientific expertise and a presence in more than 20 countries, Daiichi Sankyo and its 15,000 employees around the world draw upon a rich legacy of innovation and a robust pipeline of promising new medicines to help people. In addition to a strong portfolio of medicines for hypertension and thrombotic disorders, under the Group’s 2025 Vision to become a “Global Pharma Innovator with Competitive Advantage in Oncology,” Daiichi Sankyo research and development is primarily focused on bringing forth novel therapies in oncology, including immuno-oncology, with additional focus on new horizon areas, such as pain management, neurodegenerative diseases, heart and kidney diseases, and other rare diseases. For more information, please visit: www.daiichisankyo.com

For Immediate Release Company name: DAIICHI SANKYO COMPANY, LIMITED Representative: Sunao Manabe, Representative Director, President and COO (Code no.: 4568, First Section, Tokyo Stock Exchange) Please address inquiries to Koji Ogawa, Corporate Officer, Vice President, Corporate Communications Department Telephone: +81-3-6225-1126 https://www.daiichisankyo.com TOKYO, Japan (February 22, 2019) – Daiichi Sankyo Company, Limited, today announced the following organizational changes taking place from April 1, 2019 in Japan. 1. Daiichi Sankyo Co., Ltd. (1) R&D Division Research functions will be reorganized from a therapeutic area-based organization to a pharmacology and synthesis functions-based organization to demonstrate research functions more efficiently, and to strengthen R&D system centered on oncology. Specifically, the pharmacological research functions of the oncology field, “Oncology Laboratories” and “Biologics & Immuno-Oncology Laboratories” will be restructured into “Oncology Research Laboratories I” and “Oncology Research Laboratories II”; the pharmacological research functions of the specialty medicine (SM) field, “Pain & Neuroscience Laboratories”, “End-Organ Disease Laboratories”, “Rare Disease Laboratories”, and “Venture Science Laboratories” will be restructured into “Specialty Medicine Research Laboratories I” and “Specialty Medicine Research Laboratories II”; and the small molecule synthesis research functions of each laboratory will be consolidated to newly establish “Medicinal Chemistry Research Laboratories”. (2) Pharmaceutical Technology Division To accelerate the development and maximize the value of the oncology pipeline, “Clinical Supply Management Department” will be established to strengthen cooperation with related organizations and promote the manufacture and supply of investigational products globally. To ensure and timely promote CMC (Chemistry, Manufacturing and Control) regulatory-related duties, including post-approval changes applications for oncology products, “CMC Regulatory Affairs Department” will be established. (3) Supply Chain Division To strengthen global supply chain functions for new modalities, including oncology products, the internal functions will be reorganized. (4) Medical Affairs Division To strengthen medical affairs functions in the oncology field in response to the launch of new oncology products in Japan, “Oncology Medical Science Department” will be established. (5) Vaccine Business Oversight Department With the reorganization of Kitasato Daiichi Sankyo Vaccine Co., Ltd. to a production function subsidiary (Daiichi Sankyo Biotech Co., Ltd.), the general business management function and the technical management function related to the vaccine business will be transferred from Kitasato Daiichi Sankyo Vaccine to the “Vaccine Business Oversight Department” and be renamed as “Vaccine Business Department” of Daiichi Sankyo Co., Ltd. 2. Daiichi Sankyo Espha Co., Ltd. (1) Strategy Division With the expansion of generic drugs, including Authorized Generic (AG) in Japan, in order to expand strategic management and further strengthen and enhance the safety management system, “Strategy Division”, consisting of “Corporate Business Management Department”, “Corporate Strategy Department”, and “Quality & Safety Management Department”, will be newly established. 3. Daiichi Sankyo Healthcare Co., Ltd. (1) Internal Audit Department To further enhance internal audit functions, “Internal Audit Department” will be established.

PDF (112KB)PDF For Immediate Release Company name: DAIICHI SANKYO COMPANY, LIMITED Representative: Sunao Manabe, Representative Director, President and COO (Code no.: 4568, First Section, Tokyo Stock Exchange) Please address inquiries to Koji Ogawa, Corporate Officer, Vice President, Corporate Communications Department Telephone: +81-3-6225-1126 https://www.daiichisankyo.com Tokyo, Japan (November 30, 2018) - Daiichi Sankyo Company, Limited (hereafter, Daiichi Sankyo) today announced the scheme for the reorganization of Kitasato Daiichi Sankyo Vaccine Co., Ltd. (Headquarters: Kitamoto City, Saitama Prefecture; hereafter, Kitasato Daiichi Sankyo Vaccine), a subsidiary of Daiichi Sankyo, into a subsidiary specializing in manufacturing as of April 27, 2018. The reorganization scheme, including the absorption-type merger of Kitasato Daiichi Sankyo Vaccine into Daiichi Sankyo, was resolved at the board of directors meeting held today. I. Purpose of the reorganization Kitasato Daiichi Sankyo Vaccine is engaged in the research and development, manufacturing, and sales of human vaccines for the prevention and treatment of infectious diseases. The manufacturing functions of Kitasato Daiichi Sankyo Vaccine will be transferred to Daiichi Sankyo Biotech Co., Ltd. (Headquarters: Kitamoto City, Saitama Prefecture; hereafter, Daiichi Sankyo Biotech), founded in August 2018, to ensure stable manufacturing and quality improvement, and the functions other than manufacturing to Daiichi Sankyo, which will take the initiative in promoting and thus strengthening the vaccine businesses as the manufacturer and distributor of our group. II. Scheme of the reorganization As a result of the absorption-type split, the manufacturing and production technology functions of Kitasato Daiichi Sankyo Vaccine (the company being acquired) will be transferred to Daiichi Sankyo Biotech (the acquiring company), a wholly-owned subsidiary of Daiichi Sankyo. As a result of the absorption-type merger of Kitasato Daiichi Sankyo Vaccine operations (merged company) into Daiichi Sankyo (merging company), businesses other than the manufacturing and production technology functions (e.g., research and development, reliability assurance, and sales), and the manufacturing and marketing approval of Kitasato Daiichi Sankyo Vaccine will be transferred to Daiichi Sankyo (hereafter, “the merger”). Thus, Kitasato Daiichi Sankyo Vaccine will be dissolved. III. Timing of the reorganization April 1, 2019 IV. Overview of Daiichi Sankyo Biotech (1) Company name Daiichi Sankyo Biotech Co., Ltd. (2) Location of the headquarters Arai 6-111, Kitamoto City, Saitama Prefecture (3) Business description Contract manufacturing of vaccines, biologics, investigational drugs, etc. (4) Share Capital 50 million yen (5) Foundation date August, 2018 (Start of business: April 1, 2019) Next, we also announce the following information about the merger. Please note that some disclosure items and contents are omitted as this is a case of the simplified absorption-type merger of a wholly owned subsidiary. 1. Outline of the merger (1) Schedule of the merger Resolution of the board of directors (Daiichi Sankyo): November 30, 2018 Conclusion of the agreement of the merger: November 30, 2018 Date of the merger (effective date): April 1, 2019 *This is a short-form merger as stipulated in Article 796, Paragraph 2 of the Companies Act for Daiichi Sankyo and Article 784, Paragraph 1 of the Companies Act for Kitasato Daiichi Sankyo Vaccine. Therefore, neither company will hold a general shareholders meeting to approve the agreement of the merger. (2) Methods of the merger As a result of the absorption-type merger with Daiichi Sankyo as the merging company, Kitasato Daiichi Sankyo Vaccine will dissolve. (3) Allocations due to the merger Since Kitasato Daiichi Sankyo Vaccine is a 100% consolidated subsidiary of Daiichi Sankyo, there is neither issuance of new shares nor allocation of money, etc. due to the merger. (4) Equity warrants and warrant bonds of the merged company Kitasato Daiichi Sankyo Vaccine has issued neither equity warrants nor warrant bonds. 2. Outline of the merging and merged companies [Merging company] (1) Company name Daiichi Sankyo Company Limited (2) Location of the headquarters 3-5-1, Nihonbashi-Honcho, Chuo-Ku, Tokyo (3) Name and title of the representative Sunao Manabe, Representative Director, President, and COO (4) Business description Research and development, manufacturing and sales of ethical pharmaceuticals (5) Share capital 50 billion yen (6) Established September 28, 2005 (7) Number of shares issued 709,011,343 shares (8) Fiscal year-end March 31 (9) Major shareholders and shareholding ratios (as of the end of September 2018) - JP MORGAN CHASE BANK 380055: 8.87% - The Master Trust Bank of Japan, Ltd. (trust account): 8.86% - Japan Trustee Services Bank, Ltd. (trust account): 7.58% - Nippon Life Insurance Company: 5.52% - SSBTC CLIENT OMNIBUS ACCOUNT: 2.59% (10) Financial conditions and business performance in the immediately preceding fiscal year (ended March 2018) based on Japanese standards Net assets 872,659 million yen Total assets 1,472,669 million yen Net assets per share 1,344.31 yen Net sales 630,954 million yen Operating income 17,177 million yen Ordinary income 90,136 million yen Net income 83,729 million yen Net income per share (basic) 126.83 yen [Merged company] (1) Company name Kitasato Daiichi Sankyo Vaccine Co., Ltd. (2) Location of the headquarters Arai 6-111, Kitamoto City, Saitama Prefecture (3) Name and title of the representative Toshiaki Tojo, Representative Director and President (4) Business description Research and development, manufacturing and sales of vaccines, etc. (5) Share capital 100 million yen (6) Established April 1, 2011 (7) Total number of issued shares 3,348,890 shares (8) Fiscal year-end March 31 (9) Major shareholders and shareholding ratios Daiichi Sankyo Co., Ltd.: 100% (10) Financial conditions and business results of the previous fiscal year (ended on March 2018) based on Japanese standards Net assets 13,378 million yen Total assets 32,867 million yen Net assets per share 3,994.91 Yen Net sales 12,577 million yen Operating loss 3,950 million yen Ordinary loss 4,016 million yen Net loss 4,022 million yen Net loss per share 1,201.12 Yen 3. Situation after merger The merger results in no change of Daiichi Sankyo in the company name or address, title or name of the representative, businesses, capital, or fiscal year. 4. Impact of the merger on business results Since the merger is between Daiichi Sankyo and its wholly-owned consolidated subsidiary, the impact on the consolidated financial results is non-significant.