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Mitsubishi Tanabe Pharma Corporation Progress and Future of Development Pipeline Deutsche Securities Inc. Japan Pharmaceutical Conference 2010 September 29, 2010 Hotel Seiyo Ginza/Tokyo Masayuki Mitsuka, Ph.D. Board Director, Executive Officer Head of Global Product Strategy Corporate Strategy in R&D ■ Clearly product distinction in Japan/the U.S. and Europe Specialty and primary in Japan Specialty in the U.S. and Europe ■ Good balance between self-development products and licensing-in/out products Create the robust pipeline using alliances ■ Reviw of our priority fields Current priority fields: metabolism and circulation (especially diabetes and cerebral infarction) ⇒ Reviewing of the priority fields in looking back on the Medium-Term Management Plan 08-10 Page.1 Reviewing the 08-10 Medium-Term Period (Domestic) Phase Self-Development Products (Domestic) Remicade RA: dose escalation Ph1 Ph2 Ph3 NDA filed Approved Psoriasis Ankylosing spondylitis Ulcerative colitis Crohn's disease: dose escalation MP-424 Chronic hepatitis C FTY720 Multiple sclerosis MP-513 Type 2 diabetes mellitus TA-7284 Diabetes mellitus Co-Marketing Product (Domestic) Escitalopram Depression Filed by Mochida Co-marketing with Mochida Page.2 Reviewing the 08-10 Medium-Term Period (Overseas) Phase Self-Development Products (US,EU) MCI-196 Hyperphosphatemia MP-146 Chronic kidney disease Ph1 Ph2 Ph3 NDA filed Approved Licensing-Out Products (US, EU) FTY720 Multiple sclerosis TA-7284 Diabetes mellitus (US) Licensed to Novartis Pharma Licensed to Johnson & Johnson Page.3 Immunology & Inflammation Remicade MP-424 (Chronic hepatitis C) FTY720 (Multiple sclerosis) Page.4 Remicade Infliximab (Anti-TNFα monoclonal antibody) Project Contents Mechanism Remicade (Infliximab) Stage Profile Anti-TNFα monoclonal antibody Domestic z z RA: dose escalation Approved in July 2009 Psoriasis Approved in Jan. 2010 Ankylosing spondylitis Approved in Apr. 2010 Ulcerative colitis Approved in June 2010 Crohn s disease: dose escalation Ph3 Fast-acting and strong effect Effective for 2 months by a single dose Page.5 Remicade: Sales Growth & LCM (JPY Billion) ・Ankylosing spondylitis ・Ulcerative Colitis (Additional) 600 60 500 50 ・Dose escalation for RA ・Psoriasis (Additional) 400 40 Crohn s disease maintenance (Additional) Behcet s disease (Additional) 300 30 200 20 10 100 Completion of PMS for RA Crohn s disease (Initial indication) RA (Additional) 0 FY2002 FY2003 FY2005 2006年度 FY2006 FY2007 FY2008 FY2009 FY2004 2005年度 FY2010 2002年度 2003年度 2004年度 2007年度 2008年度 2009年度 2010年度 Page.6 Remicade: Market Potential (Domestic) Indications Number of Patients Other Major Biologics Launch: Enbrel Humira Actemura Orencia Under development: Golimumab Cimzia RA 700,000 (MTX 200,000) Anlylosing spondylitis 2,000 Psoriasis 82,000 Launch: Humira Under development: Ustekinumab 27,000 Under development: Humira Cimzia 97,000 Under development: Golimumab Humira Crohn’s disease Ulcerative colitis Under development: Humira Page.7 Remicade: Comparison with Other Biologics Anti-TNFα antibody Anti-IL-6 receptor antibody CTLA4-Ig Product name Remicade Enbrel Humira Golimumab Cimzia Actemra Orencia RA approval 2003 2005 2008 Under development Under development 2008 2010 Company MTPC Takeda /Pfizer Abbott /Eisai Janssen /MTPC UCB /Otsuka Chugai BMS Indications RA, CD BD, Ps AS, UC RA JIA RA, Ps (CD, AS UC, JIA) (RA, UC) (RA、CD) Administration method IV SC SC SC SC IV IV Administration interval Every 8 weeks Once or twiceweekly Every 2 weeks Every 4 weeks Every 4 weeks Every 4 weeks Every 4 weeks RA CD BD Ps Rheumatoid Arthritis Crohn s disease Behcet s disease Psoriasis AS Ankylosing Spondylitis UC Ulcerative Colitis JIA Juvenile Idiopathic Arthritis Castleman, RA RA, JIA ( )Under development IV : Intravenous Injection SC :Subcutaneous Injection Page.8 Remicade: New indications Results of clinical trials in Japan PASI 75 response at Week 10 Remicade ASAS 20 response (Week 24, 48) 97.0% 96.9% Placebo Mayo score at Week 8 68.6% 54.8% 35.6% 0.0% n=19 n=35 n=33 (24w) n=32 (48w) n=104 n=104 Psoriasis Anlylosing spondylitis Ulcerative colitis Approved in Jan. 2010 Approved in Apr. 2010 Approved in June 2010 Page.9 MP-424 (Telaprevir) /VX-950 Project Contents Licensed from Vertex Pharmaceuticals Mechanism Inhibition of HCV NS3-4A serine protease MP-424 (Telaprevir) Stage Chronic Hepatitis C Domestic Ph3 Overseas US, EU: (Vertex) Ph3 (Tibotec) MTPC territory Features 15 Asian countries including Japan and China z z High efficacy compared with existing therapy Oral drug Page.10 Current Treatment for HCV in Japan Estimated number of patients ■ Asymptomatic HCV carriers: 1.5 - 2 million ■ Patients who visit doctors: 400,000 - 500,000 patients/year ■ Patients on IFN: 30,000 - 50,000 patients/year Treatment Options ■ Current standard of therapy (antiviral therapy) Peginterferon + Ribavirin (48 weeks) Price for one course of therapy: approx. JPY 2.1 million ■ New treatment with MP-424 MP-424 + Peginterferon + Ribavirin (24 weeks) Treatment period of MP-424: 12 weeks Page.11 MP-424: Clinical Results -1 <Naive Patients> SVR Rate for Telaprevir in Treatment-Naive Patients PR:PEG-IFN and RBV T:MP-424 (31/75) (48/79) (53/79) (38/82) (49/82) (56/81) (7/10) T12/PR12 N Engl J Med 360:1827, April 30, 2009 (PROVE1), N Engl J Med 360:1839, April 30, 2009 (PROVE2) Annual report2010, grant-in-aid from the Ministry of Health, Labor and Welfare, Japan. (Toranomon) Page.12 Clinical Results -2 <Experienced Patients> SVR Rate in Treatment -Experienced Patients; Prior Null Responders SVR Rate in Treatment -Experienced Patients ; Prior Relapsers PR:PEG-IFN and RBV T:MP-424 PR:PEG-IFN and RBV T:MP-424 (8/41) (29/42) PROVE3 (31/41) (24/25) (3/3) Study107 N Engl J Med 362:1292, April 8, 2010 (PROVE3), Berg T, EASL2010 (Study 107) (15/27) (4/24) Study107 Berg T, EASL2010 (Study 107) Page.13 Development Products for HCV ■Protease inhibitor Telaprevir (Vertex/Tibotec/Mitsubishi Tanabe) The most advanced protease inhibitor Ph3 in US and EU, three times daily Expected NDA for FDA in 2010 Boceprevir (Merck) The second most advanced protease inhibitor Ph3 in US and EU、 three times daily Expected NDA for FDA in 2010 TMC435 (Medivir/Tibotec/Janssen) Strong protease inhibitor, once-daily, Ph2 in US ,EU, Japan ■Polymerase inhibitor, others RG7128 (Pharmasset/Roche) One of the most advanced polymerase inhibitor, twice-daily Ph2 in US and EU BMS-790052(BMS) Strong NS5A inhibitor, Ph2 in US and EU Page.14 FTY720 (Fingolimod hydrochloride) Project Contents Mechanism FTY720 (Fingolimod hydrochloride) Modulation of sphingosine 1-phosphate (S1P) receptor Domestic (Co-development with Novartis Pharma K.K.) Stage Profile Multiple sclerosis (MS) Overseas (Licensed to Novartis Pharma) Ph2 US: Approved in Sep. 2010 EU: Filed in Dec. 2009 ・More effective than interferon ・World’s first oral MS drug Page.15 World Distribution of the MS Patients Multiple Sclerosis (MS) Multiple sclerosis (MS) is caused by demyelination in central nervous system. MS presents acute attacks of diverse neurological dysfunction followed by remission of functions. Number of Patients 2,500,000 U.S.A. 400,000 Russia 250,000 Canada 50,000 U.K. 85,000 France 80,000 Germany 122,000 Italy 54,000 Spain 40,000 Japan 10,000 (MSIF2010 All right reserved) MSIF: Multiple Sclerosis International Federation Page.16 FTY720 ・Status Overseas : Licensed to Novartis Pharma Approved in US and Russia in September 2010 Filed in US and EU in December 2009 by Novartis Pharma Domestic : Co-development with Novartis Pharma K.K. Expected to be filed in 2010 Mechanism : Facilitation of lymphocyte homing ・Competitive product Cladribine Approved in Russia in July 2010 in Australia in September 2010 Filed in US in July 2010 (Result is expected in 4Q.) Mechanism : Cytotoxic effect against lymphocyte Page.17 FTY720(Placebo-controlled study) Dose: 0.5 or 1.25 mg, once a day ARR*1 0.40 54% down 60% down ARR*1 0.4 0.3 0.2 0.18 0.16 FTY720 0.5mg FTY720 1.25mg 0.1 0 Placebo *1 : Annualized relapse rate N Engl J Med 2010;362:387-401. Page.18 FTY720(Comparative trial with IFN) 【Poster presentaion at AAN in Apr. 2010】 TRANSFORMS extension study ARR MS activities 0.31 ARR*1 0.3 −29% 0.22 0.2 0.1 0 IFN 1y IFN 1y → FTY720 0.5mg 1y *1 : Annualized relapse rate Cumlative number*2 2.1 2 −67% 1 0.7 0 IFN 1y IFN 1y → FTY720 0.5mg 1y *2 : Cumlative number of new/newly enlarged T2 lesions Page.19 Diabetes TA-7284 MP-513 Page.20 Page.20 Major Development Project (Diabetes) Project Contents Mechanism TA-7284 (Canagliflozin) Stage Profile Mechanism MP-513 (Teneligliptin) Stage Profile Inhibition of SGLT2 Domestic Ph2 Overseas (Johnson & Johnson*) Ph3 Low risk of hypoglycemia, body weight reduction Inhibition of DPP4 Domestic Ph3 Overseas Ph2 Superior inhibitory activity, long-acting effect and renal excretion & hepatic metabolism *Ortho-McNeil-Janssen Pharmaceutical Page.21 Canagliflozin (JNJ-28431754/TA-7284) Overseas Ph2b Study: HbA1c SGLT2 Inhibition for Type 2 DM: MET + Canagliflozin Dose-Ranging Study Mean Baseline HbA1c 0 (%) 7.71 8.01 7.81 -0.79 -0.76 * * 7.57 7.70 7.71 7.62 -0.2 -0.22 HbA1c Change From Baseline (%) -0.4 -0.6 -0.8 -1 -1.2 -0.70 * -0.74 -0.92 * PBO 50 mg QD 100 mg QD CANA 200 mg QD 300 mg QD -0.95 * 300 mg BID * SITA 100 mg QD *P<0.001 vs placebo calculated using LS means. "Canagliflozin is being developed by Johnson & Johnson Pharmaceutical Research and Development, LLC in collaboration with Mitsubishi Tanabe Pharma Corporation." Source: Presentation slides at ADA on June 26, 2010 by Dr. Julio Rosenstock (partially modified) Page.22 Canagliflozin (JNJ-28431754/TA-7284) Overseas Ph2b Study: Body Weight SGLT2 Inhibition for Type 2 DM: MET + Canagliflozin Dose-Ranging Study Mean Baseline Weight 0 (kg) 85.5 87.5 87.7 87.7 87.8 86.3 -0.6 -1 Body Weight Change From Baseline (%) 87.0 -1.1 -2 -2.3 * -3 -2.6 * -2.7 * -3.4 -4 * PBO 50 mg QD 100 mg QD CANA 200 mg QD 300 mg QD -3.4 * 300 mg BID SITA 100 mg QD *P<0.01 vs placebo calculated using LS means. "Canagliflozin is being developed by Johnson & Johnson Pharmaceutical Research and Development, LLC in collaboration with Mitsubishi Tanabe Pharma Corporation." Source: Presentation slides at ADA on June 26, 2010 by Dr. Julio Rosenstock (partially modified) Page.23 MP-513 (teneligliptin) Japanese Ph2a Study: HbA1c Placebo (N=43) teneligliptin 2.5 mg (N=47) teneligliptin 10 mg (N=39) teneligliptin 40 mg (N=45) LS mean change from baseline in HbA1c (%) 0.6 0.4 0.36 * p<0.0001 vs placebo 0.2 0 -0.2 -0.4 -0.30 * -0.6 -0.64 -0.8 * -1 -0.75 * Change from baseline in HbA1c at Week 12 *The data are expressed as LS mean values±S.E. Source: Presentation slides at Japan Diabetes Society in May, 2010 by Dr. Takashi Kadowaki (partially modified) Page.24 Competition: SGLT2 Inhibitors Company Name Product Name/Generic Name Development Stage (Overseas) Bristol-Myers Squibb/AstraZeneca Dapagliflozin (BMS512148) US/EU: Ph3 Johnson & Johnson Canagliflozin (JNJ-28431754/TA-7284) US/EU: Ph3 Boehringer Ingelheim BI-10773 US/EU: Ph3 Roche RG7201 (CSG452) US/EU: Ph2b Astellas ASP-1941 US/EU: Ph2b Lexicon LX4211 US/EU: Ph2a Pfizer PF-04971729 US/EU: Ph2a ISIS ISIS 388626 EU: Ph1 Company Name Product Name/Generic Name Development Stage (Japan) Astellas ASP-1941 Ph3 Chugai CSG452 (RG7201) Ph2/3 Mitsubishi Tanabe Canagliflozin (TA-7284/JNJ-28431754) Ph2b Bristol-Myers Squib/AstraZeneca Dapagliflozin (BMS512148) Ph2b Taisho TS-071 P2 Boehringer Ingelheim BI-10773 Ph2 Source: Companies Website/Investor Relations Page.25 Competition:DPP4 Inhibitors Company Name Product Name/Generic Name Development Stage (Overseas) Merck Januvia® (sitagliptin) US/EU: Launched Novartis Galvus® (vildagliptin) EU: Launched, US:Not Approved Bristol-Myers Squibb/AstraZeneca Onglyza® (saxagliptin) US/EU: Launched Takeda Alogliptin (SYR-322) US/EU: Ph3 Boehringer Ingelheim Linagliptin (BI-1356/Ondero®) US/EU: Ph3 Mitsubishi Tanabe Teneligliptin (MP-513) EU: Ph2, US: Ph1 Dainippon Sumitomo DSP-7238 EU: Ph1 Company Name Product Name/Generic Name Development Stage (Japan) Banyu Januvia® (sitagliptin) Ono Glactiv® (sitagliptin) Novartis Equa® (vildagliptin) Launched (April, 2010) Takeda Nesina® (alogliptin) Launched (June, 2010) Mitsubishi Tanabe Teneligliptin (MP-513) Ph3 Boehringer Ingelheim Linagliptin (BI 1356) Ph3 Sanwa Kagaku Anagliptin (SK-0403) Ph3 Otsuka Saxagliptin (OPC262) Ph2/3 Source: Companies Website/Investor Relations Launched (December, 2009) Page.26 Others Escitalopram (Depression) TA-1790 (ED) Page.27 Page.27 Escitalopram (Selective Serotonin Reuptake Inhibitors SSRI) Project Contents Mechanism Selective Serotonin Reuptake Inhibitors (SSRI) Stage Depressants Escitalopram z z Features z z Japan (Mochida) Filed by Mochida ※Co-marketing with Mochida* *Co-promotion with Yoshitomiyakuhin at psychiatric institution Highest selective SSRI High efficacy and tolerability Low drug interaction W/W Sales 3,845M $** **Uto Brain 2009/07 Page.28 Sales of Anti-Depressant Drugs Market of anti-depressant drugs in Japan Current NIH price basis 1,200 120 About 100 billion yen Sales売上高(億円) (JPY Billion) 1,000 100 800 80 600 60 40 400 200 20 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: © 2009 IMS Japan Jan. 2001-Dec. 2009 JPM All rights reserved Page.29 Efficacy and Tolerability of Escitalopram Escitalopram 1.2 Good ● Bupropion ● ● Citalopram 1.1 (OR) Tolerability ● Sertraline 1.0 ● Fluoxetine Mirtazapine Venlafaxine ● ● ● Paroxetine 0.9 Duloxetine 0.8 0.8 0.9 ● ● Fluvoxamine 1.0 1.1 Efficacy (OR) 1.2 1.3 1.4 Good Meta-analysis demonstrated that escitalopram possesses high efficacy and tolerability. Source: Lancet(2009) Page.30 TA-1790 (Avanafil) Project Contents Mechanism TA-1790 (Avanafil) Stage Features Inhibition of PDE5 Erectile Dysfunction US (VIVUS) Ph3 Korea (Choongwae) Ph3 High potency, good safety, rapid onset Page.31 TA-1790 (Avanafil) Clinical Data Co-primary SEP 3: Percent of successful sexual attempts (SEP:Sexual Encounter Profile) Mean Successful Attempts 60% 50% Baseline End of Treatment 40% 30% 20% 10% 0% placebo Avanafil 50mg Avanafil 100mg Avanafil 200mg *p<0.001 active vs. placebo change from baseline Resource: Press release by VIVUS on Nov. 18, 2009 Page.32 Others (Filed and Approved) ① New Molecular Entities Phase Development code (Generic name) Category Indications CNTO148 Anti-TNFα monoclonal antibody RA Narcotic analgestic Breakthrough cancer pain: oral transmucosal Vaccine Prophylaxis of pertussis diphteria, tetanus, an poliomyelitis (Golimumab) TA-8317/Acref (Fentanyl citrate) BK-4SP Ph1 Ph2 Ph3 NDA Filed Approved Filed in June 2010 (filed by Janssen Pharma, co-development Janssen Pharma) Filed in Aug. 2008 Co-development (BIKEN*) * The research Foundation for Microbial of Osaka University Page.33 Others (Filed and Approved) ② Additional Indications Development code (Generic name) Phase Category Indications Polymyositis, Dermatomyositis Venoglobulin IH (Polyethlene glycoltreated human normal immunoglobulin) Human immunoglobulin G Hypo and gammagloblinemia: additional dose Ph1 Ph2 Ph3 NDA Filed Approved Filed in May 2003 Approved in May 2010 Systemic sclerosis Myasthenia gravis Modiodal (Modafinil) Pazucross (Pazufloxacin mesilate) Psychoneurotic Obstructive sleep apnea agent New quinolone antibacterial agent Severe or intractable case: additional dose,septis, pneumococcus Filed in May 2010 Approved in July 2010 Page.34 Cautionary Statement The statements contained in this presentation is based on a number of assumptions and belief in light of the information currently available to management of the company and is subject to significant risks and uncertainties. Actual financial results may differ materially from these forecasts depending on a number of important factors. Page.35