Annual Report - Takeda

TAKEDA
A N N U A L R E P O R T 1999
Year ended March 31, 1999
Contents
Financial Highlights ....................................................................
An Interview with the President .................................................
Feature Section ............................................................................
Innovative and Efficient Research Drives Growth ....................
Global Development Speeds Products to Market.......................
Overview of Product Status ....................................................... 10

Expanding Participation in Markets Worldwide ...................... 12
Global, Efficient, Environmentally Sound Production .............. 16
Review of Operations ................................................................... 17
Board of Directors, Auditors and Corporate Officers .................. 24
Financial Review .......................................................................... 25
Eleven-Year Summary of Selected Financial Data ..................... 28
Consolidated Balance Sheets ....................................................... 30
Consolidated Statements of Income ............................................ 32
Consolidated Statements of Shareholders Equity ...................... 33
Consolidated Statements of Cash Flows ..................................... 34
Notes to Consolidated Financial Statements .............................. 35
Independent Auditors Report ..................................................... 43
Directory ....................................................................................... 44
Corporate Data ............................................................................. 46
Takeda Chemical Industries, Ltd. and Consolidated Subsidiaries
Financial Highlights
Years ended March 31, 1999 and 1998
Thousands of
U.S. dollars (Note)
Millions of yen
1999
1998
For the years ended March 31:

Net sales ....................................................................................................... 844,643
Percentage increase ...................................................................................
0.3%
Net income....................................................................................................
91,755
Percentage increase ..................................................................................
12.4%
Research and development costs.................................................................
77,487
Capital investments.....................................................................................
29,241
Depreciation and amortization....................................................................
32,651
1999
841,816
0.4%
81,610
14.3%
79,039
34,091
32,763
$ 6,980,521
103.52
29.00
92.97
21.25
$0.86
0.24
At March 31:
Total assets................................................................................................... 1,326,999
Shareholders equity ....................................................................................
907,373
1,296,202
829,381
$10,966,934
7,498,950
Per share amounts (Yen and U.S. dollars)

(See Note 11 to the consolidated financial statements):
Net income..................................................................................................
Cash dividends ...........................................................................................
Number of employees...................................................................................
15,776
758,306
640,388
241,661
269,843
16,443
Note: The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of 121=US$1, the approximate
exchange rate at March 31, 1999.
NET SALES
NET INCOME
RETURN ON EQUITY
R&D COSTS
( Billion)
( Billion)
(%)
( Billion)
1,000
100
11
100
800
80
10
80
600
60
60
400
40
40
200
20
20
95
96
97
98
99
95
96
97
98
99
95
96
97
98
99
95
96
97
98
99
An Interview with the President

However, overseas pharmaceutical
companies, particularly the leading U.S.
manufacturers, have achieved robust
growth in the rapidly expanding U.S.
market, and the gap between Takeda and
these companies has been widening.
Kunio Takeda, President
Takedas medium-term management

plan is now in its fifth year. Is the plan
proceeding on schedule?
Amid intense global competition, weve
continued to move forward with our
medium-term management plan, which
covers fiscal 1995 to fiscal 2000, to generate
international growth as an R&D-driven
pharmaceutical company. Since Takeda
began implementing the plan, both sales
and profits have increased thanks to the
solid performance of our pharmaceutical
business overseas.
Moreover, the speed and scale of changes in

our operating environment have exceeded
the projections we made at the time the
plan was devised. These changes include the
prolonged recession in Japan, economic
turmoil in Asia, and increasingly stringent
government policies to contain healthcare
costs in Japan and other countries. To
respond to these conditions, we have
implemented a stronger revised mediumterm plan for fiscal years 1998 to 2000 with
the objective of creating a structure that will
allow Takeda to make rapid strides toward
becoming an international enterprise by the
end of fiscal 2000.
What issues are included in the revised

plan?
The two main themes are strengthening
growth strategies in our pharmaceutical
business in global markets and promoting
the independence of our nonpharmaceutical businesses. Through
focused investment of management
resources in our pharmaceutical business,
we will further strengthen and promote the
America launched the antidiabetic agent
growth of this business, centered on
pioglitazone hydrochloride (brand name:
internationally strategic products. In nonpharmaceutical businesses, as part of our
Actos). With once-daily dosing, Actos has
emphasis on cultivating high-value-added

businesses and selectively allocating
corporate assets, we are reexamining lowpotential businesses and creating an
operating structure centered on high-valueadded core businesses to make nonpharmaceutical businesses truly
independent.
What are some specific ways in which

Takeda will strengthen growth
strategies in its pharmaceutical
business?
demonstrated its benefits in significantly

improving glycemic control in Type 2
diabetes. In addition, clinical data show that
Actos has a beneficial impact on lipids,
lowering plasma triglycerides and raising
levels of HDL the so-called good
cholesterol. Unlike other antidiabetic
agents, moreover, Actos does not raise levels
of LDL cholesterol. With these
characteristics, Actos should help to further
boost Takedas presence in the U.S.
pharmaceutical market.
What about the domestic market?
Although weve achieved good

performance overseas up to now, a large
part of that is attributable to the rapid
growth of TAP Holdings Inc., a U.S. affiliate
accounted for by the equity method. So we
have to build on that momentum by
Although the Japanese pharmaceutical

market has been shrinking, Takeda has
increased its market share by focusing on
treatments for lifestyle-related diseases
including hypercholesterolemia,
hypertension and diabetes. In May 1999, we
establishing further international bases. We

have already established two holding
companies Takeda America Holdings,
Inc. in the United States and Takeda Europe
Holdings Ltd. in Europe and we also
added a second U.S. marketing company,
Takeda Pharmaceuticals America, Inc.
In August 1999, Takeda Pharmaceuticals
launched cerivastatin sodium, an HMGCoA reductase inhibitor, under the brand

name Certa as a treatment for
hypercholesterolemia. Certa, originally
synthesized by Bayer AG of Germany, is a
competitive inhibitor of the enzyme HMGCoA reductase that has proven effective in
lowering serum cholesterol.
diseases. We have already achieved a
In June 1999 we launched candesartan
number of successes in these areas. The

most recent is Actos, which we launched in
cilexetil, an angiotensin II receptor

antagonist, under the brand name Blopress.
This product selectively binds to
the U.S. market. In the competitive
angiotensin II AT1 receptors and thereby
thiazolidinedione class, Actos was approved
suppresses the action of angiotensin II to
for use both as a monotherapy and in
provide long-lasting and assured

hypotensive action with once-daily dosing.
In addition, an application for pioglitazone
hydrochloride, an agent for the treatment of
diabetes mellitus, has been filed.
combination with insulin, sulfonylureas or

metformin.
Please expand upon Takedas R&D

strategy for its pharmaceutical
business.
Takeda is focusing on six core areas:
diabetes, cardiovascular diseases, central
nervous system disorders, bone and joint
diseases, allergic diseases and infectious
G L O B A L
Furthermore, we have implemented our

Marketing-Production-DevelopmentResearch (MPDR) strategy to bring the
results of our research to the market more
quickly. This strategy helps us set
parameters in areas such as product
originality, market need, continuity of
therapeutic area strategies, profitability and
investment risk, and then prioritize R&D
accordingly. Thus we are better able to
allocate resources to projects most likely to
O P E R A T I O N S
EUROPE
U.S.A.
Takeda Europe Research &

Development Centre Ltd.
(U.K.)
Laboratoires Takeda
(France)
Takeda Europe
Holdings Ltd.
Takeda America Research &

Development Center Inc.
Takeda America
Holdings, Inc.
TAP Holdings Inc.

Takeda Pharmaceuticals
America, Inc.
Takeda Pharma GmbH

(Germany)
Takeda Italia Farmaceutici

S.p.A.
Takeda UK Limited
Production
Takeda Ireland Ltd.
ASIA
Tianjin Takeda Pharmaceuticals Co., Ltd. (China)
Takeda IMC Chemical Ltd. (Hong Kong)
Takeda Chemical Industries (Taiwan), Ltd.
Boie-Takeda Chemicals, Inc. (Philippines)
Takeda (Thailand), Ltd.
P.T. Takeda Indonesia
(This illustration shows Takedas pharmaceutical operations outside Japan)
An Interview with the President
generate solid
earnings and
increase the
speed of R&D.
What fundamental principles provide

the framework for Takedas continuing
growth?
Takeda carries out all business activities
To ensure a
on the basis of our corporate philosophy:
pipeline full of
contributing to better health and quality of

life for people throughout the world. This
philosophy guides us in creating
pharmaceuticals that meet the expectations
of patients and healthcare professionals,
and we strive to help people by delivering
our products to global markets ever more
quickly.
In addition to an objective management
system for executives and a performance
evaluation system for divisions, we are also
implementing various reforms to fairly
reward employees who produce results.
These include phasing in a merit-based pay
system that is aimed at making Takeda an
attractive company where employees feel a
sense of challenge and satisfaction.
high-potential
products, we are aggressively promoting
licensing deals and research collaborations
in addition to strengthening and
accelerating our own research.
What is Takedas strategy for its group

of companies?
Given the intense competition with U.S.
and European pharmaceutical companies,
we must take full advantage of the
capabilities of the Takeda Group. We are
therefore restructuring the Takeda Group
portfolio and establishing the management
framework necessary to support a strategy
that maximizes group strengths.
Specifically, we are evaluating the
positioning and responsibilities of each
subsidiary and affiliate in light of our group
strategy and the changes in our operating
environment to determine which should be
strengthened, liquidated or consolidated.
Measures to reinforce our core businesses
and raise management efficiency will
include a sweeping restructuring of group
companies and alliances with other
companies.
Finally, we are committed to earning the

understanding and trust of shareholders
through timely disclosure of appropriate,
extensive and clear information on
operations and management.
August 1999
Kunio Takeda
President
Innovative and Efficient Research Drives Growth

Takedas research organization comprises two divisions: Pharmaceutical Discovery
Research and Pharmaceutical Research. These divisions maintain a clear focus on
creating breakthrough drugs for use worldwide.
The Pharmaceutical
Discovery Research
Division uses HTS
robots to discover lead
compounds with
greater speed and
efficiency.
Discovery of New Anti-AIDS Drug

Three years ago, researchers in the
United States identified chemokine
receptor CCR5 as one of the most
critical receptors used by HIV-1 to
enter target lymphocytes and
macrophages. It was also discovered
that some people born without CCR5
are highly resistant to HIV-1 infection
but apparently normal in all other
respects. In other words, CCR5 is a
receptor that is nonessential for
human life, and HIV-1 uses this
unnecessary receptor to infect target
cells.
This suggests that if a substance
were found that could selectively
inhibit the binding of HIV-1 and
CCR5, it could lead to the
development of an anti-AIDS drug
that has a completely different
mechanism of action than current
drugs and has potentially no side
effects. This discovery has sparked a
global R&D race targeting CCR5.
Pharmaceutical Discovery Research Division

The role of the Pharmaceutical Discovery Research Division is to discover
the seeds of innovative pharmaceuticals and link them to the creation of
new drugs in the future.
The Pharmaceutical Discovery Research Division has conducted research
into seven-transmembrane receptors and bioactive peptides, discovering
seeds for various receptor antagonists and agonists. Moreover, this division
has focused on disease-related genes, leading to the discovery of enzyme
inhibitors for the treatment of bone and joint diseases and atherosclerosis.
The division has also worked to increase efficiency in gene-related
pharmacological research and promoted functional analysis of genes and
molecular pharmacology.
Today, the Pharmaceutical Discovery Research Division is conducting
intensive research with a focus on the following targeted fields.
Discovering the seeds of innovative pharmaceuticals based on research
in the area of orphan receptors
Accelerating gene exploration and functional analysis of genes in order to
promote the discovery of new drug targets
Developing original screening systems and discovering new seed
compounds by cooperating closely with the Pharmaceutical Research
Division
The following are some of the Pharmaceutical Discovery Research Divisions recent
accomplishments.
Discovery of a new anti-HIV drug candidate (CCR5 antagonist)
Discovery of a prolactin-releasing peptide
Discovery of Apelin, a new ligand for an HIV infection-related receptor
Discovery of a gene for LLPL, a newly discovered enzyme related to atherosclerosis
Development of a new manufacturing process for human growth hormone
Pharmaceutical Research Division
The Pharmaceutical Research Division focuses on keeping Takedas pipeline stocked with new
drug candidates for global use by speeding up pharmaceutical research.
The Pharmaceutical Research Division conducts research into the synthesis, drug action and
pharmacology of investigational medicines for the core disease areas of diabetes, cardiovascular
diseases, central nervous system disorders, bone and joint diseases, allergic diseases and
infectious diseases.
In the area of drug synthesis research, the utilization of advances in molecular pharmacology
and molecular physiology is becoming increasingly important. For example, our researchers
continuously try to uncover the seeds of breakthrough pharmaceuticals through detailed study
of the structure and active relationships of compounds such as enzyme inhibitors and receptor
antagonists. Moreover, in addition to analyzing compounds and conducting structural analysis,
researchers employ advanced technology for molecular design, automatic synthesis and
automatic screening of new active substances.
Currently the Pharmaceutical Research Division is focusing on the following.
Establishing an efficient system for pharmaceutical research to accelerate priority
research themes and advance
them to the next stage
Evaluating safety at an earlier
stage of research to increase the
probability of creating
successful new drug
candidates
Enhancing Takedas pipeline by
promoting in-licensing
activities and research
collaborations.
The Pharmaceutical Research Division contributes to the creation of new pharmaceuticals by

using automated machines to synthesize novel compounds and derivatives.
7
Global Development Speeds Products to Market

Takedas tripartite development organization is centered around the
Pharmaceutical Development Division in Japan; Takeda America Research &
Development Center Inc. and the Development Division of TAP Holdings Inc., a
joint venture with Abbott Laboratories, in the United States; and Takeda Europe
Research & Development Centre Ltd. in the United Kingdom. Together these bases
conduct efficient development operations, focusing on the swift launch of new
products in the global marketplace. At the same time, they help to maximize added
value through clinical development and post-marketing surveillance.
With progress of the ICH, Takeda America Research & Development Center Inc. has increased in
importance as a vital component of Takedas global development strategy.
The progress of the International Conference on Harmonisation (ICH) is enabling the use of
essentially the same clinical data in Japan, Europe and the United States. In response, Takeda has
established the Global Development Committee to create global development plans and coordinate
our tripartite development strategy. Based on Takedas MPDR strategy, which links research,
development, production and marketing, the committee adds value through its activities at every
stage, from product development to post-marketing, in accordance with the needs of the marketing
and sales divisions in the above three regions.
Since launching its first international strategic product, leuprolide acetate, in the United States in
1985, Takeda has increased this products potential by implementing a global rollout and adding
new indications and formulations. In 1991, we launched lansoprazole in France and subsequently
8
have expanded the number of countries in which it is marketed and added new indications.
Applications for the use of this product in the treatment of reflux esophagitis (maintenance
therapy) and eradication of Helicobacter pylori are currently being reviewed by the Ministry of
Health and Welfare in Japan. Candesartan cilexetil, a drug for the treatment of hypertension
marketed in Europe, the United States and Japan, is now in Phase III for the indication of
congestive heart failure. Each of these products is marketed in countries around the world.
Our new international strategic product is AD-4833 (pioglitazone hydrochloride), an agent for
the treatment of diabetes mellitus. This drug is a member of a new class of antidiabetic agents that
resulted from Takedas many years of research on diabetes. With one dose daily, AD-4833 reduces
insulin resistance in patients suffering from Type 2 (non-insulin-dependent) diabetes. New Drug
Applications were filed in Japan in December 1996, in the United States in January 1999, and in
Europe in March 1999. The U.S. Food and Drug Administration granted AD-4833 priority review
status and approved it in July 1999. AD-4833 was launched in August 1999 in the United States
under the brand name Actos.
Besides AD-4833, development is focusing on new treatments in the fields of diabetes,
cardiovascular diseases, central nervous system disorders, bone and joint diseases, allergic diseases
and infectious diseases. For example, TAK-778-SR, a treatment for bone fractures resulting from
osteoporosis, is now in Phase I in Japan. TAK-661, a substitute for steroid treatment in bronchial
asthma and atopic dermatitis, is in Phase II in Japan and Phase I in Europe. We are endeavoring to
rapidly develop and deliver to the global marketplace candidate compounds that have been selected
for both innovativeness and marketability.
Takeda Europe Research & Development Centre Ltd. in London, where the European Agency for the
Evaluation of Medicinal Products is based, has contributed to development efficiency.
9
Overview of Product Status

Product
Candesartan
Description
Angiotensin II
cilexetil
receptor antagonist
Indication / Formulation
Hypertension
(TCV-116)
Congestive heart failure

Prevention of restenosis
Country (Brand Name)

Japan (Blopress)
Status
Launched
U.S. (Atacand)
Launched
U.K. (Amias)
Launched
Germany (Blopress)
Launched
Other European countries
Launched
Japan & Europe
Phase III
U.S.
Phase III
Japan
Phase II
Japan
Phase II
Europe
Approved 6/98
following PTCA
Diabetic nephropathy and
glomerular nephritis
(TCV-116C)
Combination of
Hypertension
TCV-116 and a diuretic

Leuprolide acetate
Luteinizing hormone-releasing
(TAP-144SR)
hormone (LH-RH) analog
U.S.
Phase III
Prostate cancer,
Japan (Leuplin)
Launched
endometriosis,
U.S. (Lupron Depot)
Launched
uterine fibroids
Europe (Enantone, others)
Launched
Asia (Enantone, others)
Launched
Over 60 countries
Launched
Japan, U.S., France,
Launched
Central precocious puberty
Germany & Italy

Breast cancer
Japan, Germany,
Launched
Italy & France

Kit-type once-monthly
Germany, U.S. &
injectable formulation
Japan
Three-month sustained-release
U.S., U.K., Germany,
France & Italy
Launched
Launched
Japan
Phase II
U.S.
Launched
Kit-type three-month sustained- U.S.
Launched
Four-month sustained-release
release injectable formulation
Kit-type four-month sustained-
U.S.
Launched
release injectable formulation

Lansoprazole
(AG-1749)
Proton pump inhibitor
Reflux esophagitis, peptic ulcers Japan (Takepron)
Launched
and Zollinger-Ellison syndrome U.S. (Prevacid)
Launched
France (Ogast)
Launched
Italy (Lansox)
Launched
Germany (Agopton)
Launched
Over 90 countries
Launched
Launched
Maintenance therapy after
U.S., U.K., France,
ulcer healing
Germany & Italy
Maintenance therapy for
Japan
Filed 1/99
Eradication of
U.S., U.K., Italy,
Launched
Helicobacter pylori
France & Germany

Japan
Filed 2/99
Gastritis
Japan
Phase II
Dyspepsia
U.S.
Phase III
U.K.
Launched
Germany
Filed 1/99
reflux esophagitis
10
Product
Lansoprazole IV
Description
Proton pump inhibitor
Indication / Formulation
Postoperative invasive stress
Country (Brand Name)

Japan
Status
Filed 7/96
(AG-1749 IV)
(Injectable formulation)
Upper gastrointestinal
Japan
Phase III
Japan
Phase II
Japan (Actos)
Filed 12/96
U.S. (Actos)
Launched
Europe (Actos)
Filed 3/99
Japan
Phase III
bleeding
Major stress exerted by
operation or external stimulus
Pioglitazone
Insulin sensitivity enhancer
Diabetes mellitus
hydrochloride
(monotherapy and combination
(AD-4833)
with sulfonylureas)
Diabetes mellitus
(monotherapy and combination
with insulin, sulfonylureas
or metformin)
Combination with Basen
Combination with insulin
Voglibose
Disaccharidase inhibitor
Diabetes mellitus
(AO-128)
Japan (Basen)
Launched
U.S.
Phase III
Europe
Filed 3/98
Impaired glucose tolerance
Japan
Phase II
Bronchial asthma
Japan (Bronica)
Launched
Bacterial infection
Japan (Firstcin)
Launched
(SCE-2787)
Pediatric use and meningitis
Japan (Firstcin)
Launched
Cerivastatin sodium HMG-CoA reductase
Hypercholesterolemia
Japan (Certa)
Launched
Seratrodast
Thromboxane A 2
(AA-2414)
receptor antagonist
Cefozopran
Broad spectrum
hydrochloride
injectable cephalosporin
(BAY w 6228)
inhibitor
[Joint development
TAK-147
Acetylcholinesterase inhibitor
Dementia of Alzheimers type
Japan
Phase III
Risedronate
Bone resorption inhibitor
Osteoporosis
Japan
Phase III
with Bayer Yakuhin]
(NE-58095)
[Joint development
with Ajinomoto]
TNP-470
Anti-angiogenesis agent
Malignant tumor
U.S.
Phase II
TAK-603
Disease-modifying
Rheumatoid arthritis
Japan, U.S. & Europe
Phase II
Germany
Filed 6/96
Italy & Switzerland
Filed 2/97
Austria
Filed 8/96
U.S.
Phase II/III
Hemolytic uremic syndrome
Japan
Phase II
(HUS)
[Licensed from Synsorb]
Severe pain due to cancers
Japan
anti-rheumatic drug
Idebenone
Brain energy-metabolism
(CV-2619)
enhancer
TAK-751S
Verotoxin adsorbent
Morphine hydro-
High content/concentration
chloride (MH-200)
preparation
TAK-661
Eosinophil chemotaxis
Bronchial asthma and
Japan
Phase II
inhibitor
atopic dermatitis
Europe
Phase I
Choline uptake enhancer
Japan
Phase II
MKC-231
Phase III
[Joint development]
[Joint development
with Mitsubishi]
11
Expanding Participation in Markets Worldwide

Takeda markets its ethical drugs through a global marketing organization
spanning Japan, the United States, Europe and Asia. In the United States, the
worlds largest and fastest-growing pharmaceutical market, Takedas marketing
organization includes TAP Holdings Inc. (a joint venture with Abbott Laboratories),
and the wholly owned subsidiary, Takeda Pharmaceuticals America, Inc.
The National Sales Meeting at TAP Holdings Inc. boosts sales force effectiveness and morale by
gathering U.S. medical representatives (MRs) together to review the past years performance and
determine strategic directions for the year ahead.
12
In 1998, TAP continued its strong performance and achieved net sales that exceeded $2 billion.
TAP is now the seventeenth largest U.S. pharmaceutical company in terms of sales, and expects to
continue moving up the ranks as it fosters current products and introduces new ones.
Net sales of the ulcer treatment Prevacid (lansoprazole), TAPs leading product, nearly doubled to
$1.3 billion in 1998. One of the reasons for this outstanding growth is the expansion of the drugs
range of uses. In 1998, TAP received approval from the U.S. Food and Drug Administration (FDA)
for Prevacid delayed-release capsules for the short-term treatment of symptomatic gastroesophageal
reflux disease (GERD), as well as new administration options that allow patients who cannot
swallow a capsule to sprinkle Prevacid on soft food or into juice. In addition, TAP introduced 10and 14-day regimens of Prevpac, a new and convenient package for three medications used to treat
Helicobacter pylori infection in patients with duodenal ulcers. The package, which contains
Prevacid, Biaxin (clarithromycin) and Trimox (amoxicillin capsules), provides a simplified, more
convenient regimen for eradicating H. pylori.
Lupron Depot (leuprolide acetate for depot suspension), TAPs synthetic hormone indicated for
the palliative treatment of advanced prostate cancer, endometriosis, anemia caused by uterine
fibroids, and precocious puberty, posted solid sales growth in 1998. It continues to maintain its
dominant position in most of these markets.
In addition to these successful current products, TAP has an active pipeline. In June 1999, TAP
filed a New Drug Application with the FDA for Uprima (apomorphine), an oral treatment for male
erectile dysfunction. Takeda and Abbott Laboratories will jointly develop and co-market
apomorphine in countries outside the United States and Canada. TAP also plans to file an
application for an adult formulation of the antibiotic Spectracef (cefditoren pivoxil) in 1999.
TAPs research and development teams are focusing on developing a range of promising new
compounds for use in medical fields such as urology, gynecology and oncology, and are also
pursuing additional indications for current products. TAPs aggressive in-licensing efforts will
continue to fuel the companys pipeline.
Building on its momentum in the United States, in May 1998 Takeda established its second U.S.
marketing company, Takeda Pharmaceuticals America, Inc. This company launched pioglitazone
hydrochloride, an antidiabetic agent, under the brand name Actos in August 1999 after Takeda
America Research & Development Center Inc. received FDA approval for it in July 1999. A
treatment for lowering blood glucose levels that resulted from Takedas many years of research on
diabetes mellitus, Actos is an insulin sensitizer for patients with Type 2 (non-insulin-dependent)
diabetes. Takeda Pharmaceuticals America has built a sales force of more than 500 MRs to launch
Actos. Takeda Pharmaceuticals Americas MRs have undergone extensive education on diabetes
Takeda Pharmaceuticals America, Inc. recruited and trained more than 500 MRs in preparation for the
launch of the companys first product, the new pharmaceutical Actos.
13
mellitus and Actos to ensure the successful launch of this product. The company has also
established a marketing organization, distribution capabilities and other key business functions to
fully support the U.S. commercialization of Actos and future products. Actos will be co-promoted
with Eli Lilly and Company, a leader in the U.S. diabetes treatment market.
Takeda Pharma GmbH ensures solid coverage of the crucial German market, where Takedas strategies
include expanding market penetration for Blopress.
In Europe, subsidiary Laboratoires Takeda in France, affiliate Takeda Pharma GmbH in Germany
and subsidiary Takeda Italia Farmaceutici S.p.A. in Italy have been increasing sales of original
Takeda products each year, including the prostate cancer treatment leuprolide (brand name:
Enantone), ulcer treatment lansoprazole (brand names: Ogast, Agopton, Lansox), and hypertension
treatment candesartan cilexetil (brand names: Kenzen, Blopress). In addition, in April 1997 we
established the U.K. subsidiary Takeda UK Limited, which is co-promoting candesartan cilexetil
with AstraZeneca PLC in the United Kingdom under the brand name Amias.
In Japan, Takedas Pharmaceutical Marketing Division, which is responsible for ethical drug
marketing, has been making steady progress in strengthening Takedas market position in the
treatment of lifestyle-related diseases. Hypercholesterolemia, hypertension and diabetes are
representative lifestyle-related diseases that are intricately related to the onset of arteriosclerosis.
They show a high incidence of complications and exhibit increased synergism with arteriosclerosis
as well. In May 1999, the Division launched the HMG-CoA reductase inhibitor cerivastatin sodium
14
under the brand name Certa as a treatment for hypercholesterolemia. In June 1999, the Division
also launched the angiotensin II receptor antagonist candesartan cilexetil under the brand name
Blopress for treatment of hypertension. Now being marketed in Europe and the United States,
Blopress is an ideal drug because in addition to its hypotensive action, it has an organ protective
effect and rarely causes coughing, which is a common adverse reaction with ACE inhibitors used to
treat hypertension. Moreover, we filed an application for AD-4833 (pioglitazone hydrochloride), an
agent for the treatment of diabetes mellitus. To ensure the acceptance of our products by specialists
shortly after they are launched, we implement systematic promotions such as launch meetings,
meetings for opinion leaders and medical conferences.
Takeda is conducting regional launch meetings for Blopress in Japan.
15
Global, Efficient, Environmentally

Sound Production
Takedas Production Bases
Takeda produces pharmaceuticals at three domestic plants the Hikari Plant, Osaka Plant and
Shonan Plant. In Asia, the Company has plants in China, Taiwan, Thailand and Indonesia. In
October 1997, we acquired a
plant in Ireland and established it
as a local manufacturing
subsidiary, Takeda Ireland Ltd.,
our first pharmaceutical plant in
Europe. Takeda Ireland
manufactures lansoprazole
capsules, candesartan cilexetil
tablets, pioglitazone
hydrochloride tablets and other
new products for the European
and U.S. markets. It also
manufactures drugs for clinical
Takeda Ireland Ltd., Takedas first European production base,
trials of candidate compounds
produces drug products to keep up with our expanding sales in
Europe and the United States.
under development.
The Pharmaceutical Production
Division manages the entire process from the chemical and pharmaceutical development research
stage through the production stage. This division works to minimize total production costs by
analyzing domestic and overseas demand, cost and risk.
Environmental Protection
Takeda implemented the Responsible Care program in 1995 based on its Basic Principles on the
Environment. Objectives of the program include reducing the volume of industrial waste treated
off-site, reducing the amount of emissions of priority control chemical substances, and promoting
energy conservation. Other focuses are conducting environmental audits for domestic plants and
Tsukuba research laboratories, promoting resource conservation and recycling, pursuing
development of environment-friendly products, and establishing occupational safety and health
management systems.
In December 1998, the Hikari and Tokuyama plants obtained the ISO 14001 certification for their
environmental management systems. The Hikari Plant is Takedas main plant, manufacturing
mainly bulk pharmaceuticals, vitamins and agrochemicals. The Tokuyama Plant produces chemical
products, including polyether polyols, polyester polyols, unsaturated polyester resins and succinic
acid. Takeda will continue promoting acquisition of the ISO 14001 certification at its other plants.
16
Review of Operations
Skilled MRs from
Laboratoires Takeda in
France give physicians
detailed explanations
of new products,
playing a key role in
Takedas strategy of
strengthening its
operations in France.
PHARMACEUTICALS
United States, the worlds largest
Europe), a treatment for prostate
(Ethical Drugs)
market for pharmaceuticals. This
cancer, endometriosis, uterine
move creates an organization to
fibroids, breast cancer and central
conduct marketing activities for
precocious puberty, is sold in more
focused its core Pharmaceutical
Actos (pioglitazone hydrochloride),
than 60 countries. We have steadily
business on discovering and
an antidiabetic drug developed by
developed new formulations for
developing original new drugs for
Takeda. Furthermore, in March
leuprolide acetate in markets around
global use, while also working to
1998, we established Takeda Europe
the world. Following the original
expand its marketing bases in the
Holdings Ltd., a holding company
1 Month Depot, a dual chamber pre-
United States and Europe. These
for our pharmaceutical business in
filled syringe (DPS) launched in
efforts further advanced our mission
Europe, and in September we
1995, an injectable three-month
to be an R&D-driven international
established Takeda Europe Research
formulation, 3 Month Depot, was
company. Takedas sales of
& Development Centre Ltd. in
launched in 1996, and 4 Month
pharmaceuticals, including OTC
London, where the European Agency
Depot was launched in the United
drugs, increased 2.9 percent year-on-
for the Evaluation of Medicinal
States in July 1997. As a result,
year to 597.5 billion (US$4,938
Products is located.
leuprolide acetate contributed
In fiscal 1998, the Takeda Group
million).
In May 1998, we established the
Reviewing Takedas main

products, leuprolide acetate
strongly to overseas sales in fiscal

1998.
wholly owned subsidiary Takeda
(marketed as Leuplin in Japan,
Pharmaceuticals America, Inc., as
Lupron Depot in the United States
in Japan, where leuprolide acetate
our second marketing base in the
and Enantone and other names in
contributes to effective patient
Sales are also expanding steadily
17
treatments in a wide range of
treatment of essential hypertension,
flat compared with the previous
therapeutic categories.
under the brand names Blopress in
fiscal year. Starting from fiscal 1999,
Germany and Amias in the U.K.
the fiscal policy for health insurance
1992 as a treatment for peptic ulcers
Takeda originally discovered this
will become more stringent in
and reflux esophagitis, lansoprazole
compound, the first non-peptide
response to the declining birth rate
(marketed under the brand names
AIIRA in the world. Its initial launch
and aging of the population in
Takepron in Japan, Prevacid in the
was followed by introductions in
Japan. Given the urgent issues raised
United States, and Ogast, Agopton
major countries including France,
recently by healthcare cost
and others in Europe) has become
Italy and the United States in 1998.
containment measures and the
the leading proton pump inhibitor
In 1999, candesartan cilexetil has
impact of health insurance reforms,
because of its superior efficacy.
been launched as Blopress in some
we must be prepared for an even
Following its introduction in major
Asian countries including Japan, and
more severe operating environment.
European countries, lansoprazole
it is now marketed in 28 countries
was launched in the United States in
worldwide.
Launched in Japan in December
June 1995. Backed by favorable
In Japan, National Health
However, the graying of Japanese

society is expected to increase the
need for pharmaceuticals, and the
evaluations from healthcare facilities,
Insurance (NHI) drug prices were
pharmaceutical industry has
lansoprazole achieved rapid market
significantly reduced for the third
excellent potential. The market will
penetration, and further increased
consecutive year in fiscal 1998. In
increasingly favor drugs that are
its contribution to results in fiscal
addition, the pharmaceutical market
primary medical treatments and
1998. It is now sold in more than 90
has been affected by increased
offer clear beneficial effects, as well
countries. New indications are being
patient copayments resulting from
as those that match the needs created
added to the product profile,
revision of the NHI Law in
by the aging society and changing
including maintenance therapy
September 1997. Consequently, the
lifestyles. Takeda has always focused
following healing of erosive
market in fiscal 1998 was virtually
on research and development of
esophagitis and duodenal

ulcers, eradication of
Helicobacter pylori and
symptomatic
gastroesophageal reflux
diseases.
In December 1997,
Takeda launched a
promising new product,
candesartan cilexetil, a
novel angiotensin II
receptor antagonist
(AIIRA) for the
18
MRs at sales offices regularly attend practice study conferences to support the smooth market penetration
of new pharmaceuticals.
pharmaceuticals that offer
them to gain a large share of the
United States. We expect to expand
characteristics required by healthcare
market in their respective
sales of this product in other
facilities and on building their
therapeutic categories. Furthermore,
overseas markets as well. In addition,
market presence.
we will take advantage of the launch
we are steadily carrying out
of these drugs to educate patients
development activities for
prostate cancer treatment for which
and the general public on the cause,
apomorphine, a treatment for
we have added a succession of new
prevention, treatment and
erectile dysfunction. TAP Holdings
indications, including endometriosis,
complications of lifestyle-related
Inc. has submitted a New Drug
central precocious puberty, uterine
diseases, further boosting Takedas
Application with the U.S. Food and
fibroids and breast cancer. Sales have
domestic market presence.
Drug Administration for
One example is Leuplin, a
expanded steadily, and we expect
Outside Japan, despite intensified
Leuplin to make an even larger
competition accompanying the
contribution to results in the future.
reorganization of the industry and
Basen, a disaccharidase inhibitor,
apomorphine under the brand name

Uprima.
To further develop its
the advancement of policies to
pharmaceutical business, Takeda
was launched in 1994 as a diabetes
contain healthcare costs, markets for
keeps its pipeline full by efficiently
treatment with a novel mechanism
pharmaceutical products grew
allocating management resources
of action. It has become the first
steadily in fiscal 1998. The efforts of
toward selected therapeutic
choice of many physicians in treating
TAP Holdings Inc., a U.S. affiliate
categories and focused development
diabetes.
accounted for by the equity method,
themes. A key to success in this effort
The addition of planned new
to generate sales of lansoprazole in
is our MPDR strategy that
indications for the ulcer treatment
the United States contributed to net
emphasizes cooperation and
Takepron should contribute to
sales of US$2,062 million and net
collaboration among marketing,
further growth in sales of this
income of US$532 million for the
production, development and
product.
company. Lansoprazole sold strongly
research divisions, as well as our
In fiscal 1999, the hyper-
in Europe as well, while sales of
framework for speedily resolving
cholesterolemia treatment Certa
leuprolide acetate, in the face of
cross-divisional issues. We will
(BAY w 6228), an HMG-CoA
strong competition, increased over
continue strengthening our MPDR
reductase inhibitor, and Blopress, an
the previous fiscal year, a result of
strategy to promote effective
angiotensin II receptor antagonist
leuprolide acetates precise response
interdivisional cooperation in order
that provides a novel method for
to market needs. Moreover, as
to maximize the benefits from each
treating hypertension, have already
mentioned earlier, the hypertension
divisions efforts. Employing this
been launched. We also plan to
treatment candesartan cilexetil was
original business structure, we will
launch the insulin sensitivity
launched in France in September
advance our global strategy and
enhancer AD-4833, for which we are
and in Italy in October 1998.
further promote Takedas position as
awaiting manufacturing approval.
In August 1999, the antidiabetic
Because these products have more
agent Actos (pioglitazone
concentrated activity, we expect
hydrochloride) was launched in the
an R&D-driven international
company.
19
CONSUMER
HEALTHCARE
(OTC Drugs)
In the domestic
OTC drug market in
fiscal 1998, the lack of
any foreseeable
recovery in consumer
spending, coupled with
unfavorable summer
weather, led to a large
decrease in sales of
health maintenance
products. However,
demand for remedies
Preparations for the launch of New Alinamin A were based on an

action plan that was ideally tailored to implement the marketing
strategy for this brand.
for colds, constipation
By expanding sales channels, we
efforts to earn the trust of
and athletes foot was favorable. As a
expect to increase sales of these
consumers. We will also work to
result, sales of the Consumer
products in fiscal 1999.
maintain solid relationships of trust
Healthcare business declined slightly

compared with fiscal 1997.
Sales of Alinamin EX, part of the
with retailers and wholesalers.
products, Takedas Benza brand,

which includes the cold remedy
BULK VITAMIN & FOOD

Takedas Bulk Vitamin and Food
Alinamin line of vitamin B1
Benza Block, achieved a large sales
derivative tablets, expanded steadily.
increase over the previous fiscal year.
business is engaged primarily in the
In June 1999, we launched New
Contributing to this gain were the
manufacture and marketing of bulk
Alinamin A, which contains more
January 1999 launch of Benza Block
vitamins and food additives. We
vitamins B6 and B12 than the current
Cough Syrup, an antitussive/
contribute to healthier life and better
Alinamin A. This product will add
expectorant, and the February 1999
food culture through our
further strength to the Alinamin line.
launch of Benza AL, a remedy for
involvement in the health
allergic rhinitis.
supplements, food, beverage and
Sales of Alinamin health tonics

declined from the previous year
20
Despite many competing
Takeda will further develop the
livestock feed markets.

With a broad lineup of bulk
because of weakness in this market
Consumer Healthcare business based
segment. Following the easing of
on the goal of contributing to better
vitamin products that includes
regulations in March 1999, three
health and quality of life. In fiscal
vitamin C as well as vitamins B1, B2,
products including Alinamin V were
1999, we will strengthen this
B6, folic acid and others, Takeda is
reclassified as non-pharmaceutical
business by aggressively developing
one of the worlds leading
products, allowing them to be sold at
and launching a steady stream of
manufacturers of water-soluble
retail stores other than pharmacies.
new products while continuing our
vitamins. Bulk vitamins are highly
international products used in a
billion (US$647 million). A
wide range of applications. Takeda is
continued decline in prices and
therefore aggressively developing this
lower sales volume led to decreased
Products business is to contribute to
business overseas through its
sales of vitamin C the main
greater convenience in peoples lives
subsidiaries in the United States,
product of the bulk vitamin business
by supplying advanced polymer
Europe and Asia.
although this decline was partially
materials based on our technological
offset by the beneficial effects of the
strengths.
In the food additive business,
CHEMICAL PRODUCTS
The mission of Takedas Chemical
Takeda manufactures and sells a
weaker yen. Despite unfavorable
variety of products such as flavor
market conditions, Takeda
intermediate materials for industrial
enhancers and food texture
maintained market share and sales
use such as polyurethane (PU)
improvers. These include Ribotide, a
volume in the food additive business
resins, adhesives, toluene
ribonucleotide flavor enhancer
thanks to relatively firm demand.
diisocyanate (TDI), polyethers,
originally developed by Takeda. Our
However, a sudden and sharp price
unsaturated polyester resins and
full product lineup and superior
erosion of Ribotide resulted in
compounds, organic acids and
quality assurance system have earned
decreased food additive sales
synthetic latexes.
us a high level of reliance among our
revenue.
customers.
In fiscal 1999, though we foresee
Main products include
Chemical Products segment sales,

which include sales of the Life-
keener competition in the industry,
Environment business, declined 6.0
affected by intense price competition
we will work to strengthen our
percent year-on-year to 110.5
worldwide in addition to the
competitive edge by pursuing better
billion (US$913 million), due to the
prolonged economic slump in Japan.
efficiency in our production, sales
prolonged economic recession in
Consequently, net sales declined
and research activities.
Japan. Exports of TDI and sales of
Results for fiscal 1998 were
from the previous fiscal year to 78.3
adhesives increased, but depressed

building and construction activity in
Japan decreased sales of PU resins
for coating and unsaturated
polyester resins and compounds
mainly used in the housing industry.
In fiscal 1999, the Chemical
Products business will direct
continous efforts toward sales
expansion, R&D and production
efficiency. We will work to expand
sales of highly profitable products
including PU resins and adhesives.
Our research is focused on
Takeda participates in such events as Food Ingredients Europe, held

in Frankfurt, Germany in November 1998.
developing eco-friendly new

21
AGRO
The result was a moderate decline in
(Plant Protection and Animal
total sales of plant protection
Health Products)
products.
Takedas Agro business is

aggressively working to
segment covers a broad range of
expand sales in its two
markets from veterinary medicines
main product areas: plant
to feed additives and drugs for
protection products and
fisheries. Fiscal 1998 sales decreased
animal health products.
because of a rise in imports of
Core plant protection
competition in the market for pet-
insecticides such as Padan,
related products.
Takeda plans to expand sales of
and Blasin; and rice
sulfosulfuron in major advanced
herbicides such as Award,
countries. We will also continue
Batl, Sheriff, Crush, The
developing world markets for TI-
One, and Longet. All of
435, an insecticide with a broad
products such as water-based resins,
recycling technologies. We plan to

launch new PU dispersions, food
packaging adhesives without
purported endocrine disrupters, and
reactive hot melt adhesives. We will
also carry out capacity expansions of
and cost reductions for TDI and
maleic anhydride.
One of our strategies is to
strengthen our overseas activities.
We are targeting a higher market
share for food packaging adhesives
in China and ASEAN countries and
starting their sales in Europe and the
United States. Expansion in the
export of TDI and synthetic latex for
gloves is also targeted.
these are proprietary products of
spectrum of activity against
Takeda. In fiscal 1998, overseas sales
agricultural pests at low application
increased sharply
despite the economic
turmoil in Asia,
backed by higher
sales of Padan and
Validacin and the
full-fledged start of
exports of the wheat
herbicide
sulfosulfuron. In
Japan, however, sales
were strongly
impacted by the
reduction of rice
fields, which is
decreasing the scale
of the domestic
agriculture industry.
22
In the plant protection business,
fungicides such as Validacin
Takedas maleic anhydride plant has introduced the

latest technology to detoxify exhaust gas.
free PU rigid foam systems and
livestock products and greater
products include
Bancol and Bestguard;
PVC replacement materials, CFC-
The animal health products
The Agricultural Research Laboratory screens plant protection

products for effectiveness at its greenhouses while working to
create breakthrough products.
development and
rates.
speedy market launch
With the need for

increased food production to
of safer, easy-to-use
support the expanding world
and environmentally
population, continued
sound products for
growth is foreseen in the
such applications as
global market for both plant
water-based paints and
protection and animal health
ant-repellent systems
products. Takeda is well
with minimal
prepared to meet global
environmental impact.
market demand with a
In addition, as new
research organization that is
housing starts are
steadily creating the seeds of

new products.
The Life-Environment Research Laboratory carries out a wide range

of research to improve the environment, including the development of
activated carbon technologies for eliminating offensive odors at the
facility.
LIFEENVIRONMENT
Takedas Life-Environment
business is dedicated to contributing
to the improvement of peoples lives
and the environment with products
such as activated carbon and
preservatives for wood care and
industrial use as well as
environment-related products. The
core mission of this business is to
solve environmental problems and
create comfortable living
environments in fields such as water,
air and housing.
In fiscal 1998, sales of activated
carbon for water purification
expanded. Sales of Xyladecor, which
is used for preservation and
beautification of wood, also
increased, particularly at consumeroriented home centers. However,
products, including boron products.

As a result, Life-Environment sales
decreased slightly from the previous
fiscal year.
In the field of activated carbon,
we are focusing on strengthening
sales of highly functional, highvalue-added products such as
molecular sieving carbon; sales of
environment-related products such
as carbon for dioxin removal; and
marketing of exports in overseas
markets. In November 1998, Takeda
increased its ownership in Davao
Central Chemical Corporation, a
manufacturer of activated carbon
from coconut shells in the
Philippines, from 35 percent to 80
percent, making the company a
consolidated subsidiary.
forecast to remain
stagnant, we will focus
on cultivating new
sales routes to target
general users. Demand from this

sector has been increasing since fiscal
1998, reflecting steady growth in the
popularity of gardening and do-ityourself projects.
In environment-related fields, we
will promote faster development of
products that contribute to clean
environments. In fiscal 1998, we
launched two pollutant test kits,
which measure the concentration of
surfactants in water with a high
degree of sensitivity. New product
introductions planned for fiscal 1999
include additional pollutant test kits
and adsorbents to remove and
reclaim defined ions such as
fluorides or phosphates in sewage or
drainage water.
In the field of wood preservatives,

Takeda is working toward the
Takeda discontinued sales of several

23
Board of Directors, Auditors and Corporate Officers
Left to right: Koichi Yanashita, Senior

Managing Director; Kunio Takeda,
President; Masahiko Fujino, Ph.D.,
Chairman; and Hideyuki Nagasawa,
Senior Managing Director
CHAIRMAN
Masahiko Fujino, Ph.D.
PRESIDENT
Kunio Takeda
SENIOR MANAGING DIRECTORS
Koichi Yanashita
DIRECTORS
Hiroshi Nagasaki
Toshiyuki Araki
General Manager
Finance & Accounting Department
Hisayoshi Okazaki, Ph.D.

General Manager
Pharmaceutical Business
Development Department
Yoshihiro Narai
General Manager
Corporate Planning Department
Ken-ichi Nishino
President
Chemical Products Company
Yasuchika Hasegawa
General Manager
Pharmaceutical International
Division
Teruji Ono
General Manager
Legal Department
FULL-TIME CORPORATE
AUDITOR
Hideyuki Nagasawa
MANAGING DIRECTORS
Nobuto Nakamura, M.D., Ph.D.
Mitsuo Yashiro
Kunio Ueshima
Shozo Nakamura
General Manager
Pharmaceutical Production Division
Nobutaka Suzuki
General Manager
Pharmaceutical Marketing Division
CORPORATE AUDITORS
Masao Ariyasu
Kiyoshi Taura
Naoaki Yoshii
CORPORATE OFFICERS
Yuzuru Takagi
General Manager
Planning & Coordination
Corporate Planning Department
Kiyoshi Kitazawa, Ph.D.

General Manager
Strategic Development Department
Pharmaceutical Development Division
Ken Matsumoto
General Manager
General Affairs & Personnel Department
Shuji Higuchi
Managing Director
Takeda Europe Research and
Osamu Nishimura, Ph.D.

General Manager
Pharmaceutical Discovery Research
Division
Yasuhiro Sumino, Ph.D.
General Manager
Pharmaceutical Research Division
Yasuhiko Hamanaka, M.D., Ph.D.
General Manager
Pharmaceutical Development Division
24
Mikihiko Obayashi, Ph.D.

President
Takeda America Research and
Makoto Yamaoka
General Manager
Marketing Administration Department
Katsumi Nozawa
General Manager
Ethical Products Marketing Management
Department
Naohide Muro
President
Consumer Healthcare Company
Hiroshi Uchiyama
President
Vitamin & Food Company
Yoshiro Namazu
President
Agro Company
Atsuo Kobayashi, Ph.D.
President
Life-Environment Company
Hiroshi Akimoto, Ph.D.
General Manager
Intellectual Property Department
(as of June 29, 1999)
FINANCIAL REVIEW
Net Sales Breakdown

( Billion)
900
750
600
450
300
150
95
96
97
98
99
Pharmaceuticals
Bulk Vitamin & Food
Chemical Products
Agro Products and Others
Overseas Sales
( Billion; %)
200
20
150
15
100
10
50
95
96
97
Overseas Sales
Percentage of Net Sales
98
99
Consolidated Sales and Income

The business environment surrounding the Takeda
Group grew more severe during fiscal 1998, the year
ended March 31, 1999, due to the effects of global credit
instability and the Asian economic crisis. In the pharmaceutical industry, Takedas principal business, a succession
of large-scale mergers and acquisitions, especially by
major companies in Europe and the United States, combined with borderless markets to usher in an era of
intense competition.
Amid these trends, the Takeda Group, which aims to be
an R&D-driven international enterprise, is developing its
global operations and drawing on the strengths of each
group company to improve consolidated financial results
and raise the value of the Company.
During fiscal 1998, Takeda continued to make rapid
strides in its global business. We established our own
marketing company in the United States and filed a New
Drug Application for diabetes treatment AD-4833
(pioglitazone hydrochloride) in Europe and the United
States.
The tough business environment in Japan continued
during fiscal 1998 with no sign of economic recovery.
Overseas, however, market conditions for ethical drugs
were favorable, particularly in the United States.
As a result, both net sales and income increased compared
with the previous fiscal year.
Net sales increased 0.3 percent to 844.6 billion
(US$6,980 million) as increased sales of ethical drugs in
overseas markets offset a decrease in domestic sales. Net
sales to customers outside Japan totaled 175.2 billion
(US$1,448 million), a year-on-year increase of 29.1
percent, and accounted for 20.7 percent of total net sales,
an increase of 4.6 percentage points from fiscal 1997.
In income categories, operating income increased 7.0
percent to 142.2 billion (US$1,175 million), reflecting
Takedas success in expanding sales of high-value-added
products and other factors. U.S. affiliate TAP Holdings
Inc., accounted for by the equity method, achieved
growth in sales of the proton pump inhibitor lansoprazole
(U.S. brand name: Prevacid), an international strategic
product, which contributed strongly to a 9.3 percent
increase in income before income taxes and minority
interests to 182.1 billion (US$1,505 million). As a result,
net income increased 12.4 percent to 91.7 billion
(US$758 million).
Net income per share was 103.52 (US$0.86), 10.55
higher than in the prior fiscal year. Furthermore, return
on shareholders equity increased to 10.6 percent from
10.3 percent. Takeda increased cash dividends per share to
29.00 (US$0.24) from 21.25 in fiscal 1997.
Segment Information
The Companys operations, as explained in Note 12 of
25
the Notes to Consolidated Financial Statements, are

classified into four business segments: Pharmaceuticals,
Bulk Vitamin and Food, Chemical Products and Other.
Net Income and Net Income per Share
Pharmaceuticals
In keeping with its goal of being an R&D-driven
international enterprise, Takeda focused efforts in its
pharmaceutical business on creating and developing
original new drugs for the global market. At the same
time, the Company moved quickly to expand its marketing bases in the United States and Europe.
In the United States, the worlds largest market for
pharmaceuticals, we established our second marketing
base, Takeda Pharmaceuticals America, Inc., in May 1998.
In Europe, we established Takeda Europe Research &
Development Centre Ltd. in September 1998 in the
United Kingdom, where regulatory affairs for the
European pharmaceutical market are centered.
In January 1999 in the United States, and in March
1999 in Europe, we filed a New Drug Application for
diabetes treatment AD-4833 (pioglitazone hydrochloride). AD-4833, our newest international strategic product, was launched in August 1999 under the brand name
Actos in the United States.
Following introductions in the United States and
Europe, in June 1999 we began sales of hypertension
treatment Blopress in Japan.
In Japan, where policies to contain healthcare costs
make market expansion difficult, Takeda successfully
expanded sales of core products such as Leuplin, a
luteinizing hormone-releasing hormone (LH-RH) analog,
and Basen, a disaccharidase inhibitor for preventing
postprandial hyperglycemia in diabetes mellitus.
However, factors such as the withdrawal from the market
of Avan, a brain-energy metabolism enhancer, resulted in
a decrease in domestic pharmaceutical sales.
Outside Japan, sales of lansoprazole (brand name:
Prevacid) in the United States contributed strongly to
overseas results.
Total net sales of the Pharmaceuticals business therefore increased 2.9 percent, to 597.5 billion (US$4,938
million), and operating income from this business
increased 8.2 percent to 132.7 billion (US$1,097 million). The Pharmaceuticals business thus increased its
weighting in the overall business of the Takeda Group.
100
100
80
80
60
60
40
40
20
20
Bulk Vitamin and Food

In April 1998, the U.S. manufacturing and marketing
subsidiaries merged to bolster earnings potential in the
North American market. However, price declines for
vitamin C and Ribotide led to a decrease of 5.4 percent in
Bulk Vitamin and Food business sales to 78.3 billion
(US$647 million).
Although the Bulk Vitamin and Food business posted
an operating loss of 0.6 billion (US$5 million), this
represented an improvement of 0.4 billion over the prior
fiscal year, in part due to better performance at subsidiary
Takeda Food Products, Ltd.
26
( Billion; )
95
96
97
98
99
97
98
99
Net Income
Net Income per Share
Total Assets
( Billion)
1,400
1,200
1,000
800
600
400
200
95
96
Chemical Products
The Chemical Products business, which includes the
Life-Environment business, further developed its
overseas presence in fiscal 1998 with the acquisition of
activated carbon manufacturer Davao Central Chemical
Corporation in the Philippines. However, the economic
slump in Japan reduced demand related to housing and
automobiles. Consequently, sales in the Chemical
Products business declined 6.0 percent to 110.5 billion
(US$913 million), and operating income fell 13.4
percent to 6.8 billion (US$56 million).
Other Businesses
In the Agro business, sales of agricultural chemicals
and animal health products decreased due to weak
domestic demand. As a result, net sales of other
businesses decreased 4.2 percent to 58.2 billion
(US$481 million), and operating income dropped 8.1
percent to 3.2 billion (US$26 million).
Financial Position and Liquidity
As of March 31, 1999, total assets were 1,326.9 billion (US$10,966 million), an increase of 2.4 percent
from a year earlier resulting primarily from an increase
in marketable securities and investment securities. Total
liabilities, the sum of current and long-term liabilities,
decreased 11.1 percent to 389.7 billion (US$3,221
million) as conversion into shares of an issue of 1.9
percent unsecured convertible bonds due in 1998
reduced the current portion of long-term debt and
Shareholders Equity & ROE
( Billion; %)
900
12
750
10
600
450
300
150
95
96
97
Shareholders Equity
ROE (Return on Equity)
98
99
income taxes payable decreased.

Higher retained earnings resulted in a 9.4 percent
increase in shareholders equity to 907.3 billion
(US$7,498 million), which accounted for 68.4 percent of
total assets, compared to 64.0 percent at March 31,
1998. Shareholders equity per share increased 76.79
from a year earlier to 1,020.35 (US$8.43).
Net cash provided by operating activities decreased
4.0 billion to 104.9 billion (US$867 million). This
decrease in cash flow occurred despite increased net
income as accrued expenses and income taxes payable
decreased.
Net cash used in investing activities increased 96.6
billion from the previous fiscal year to 169.3 billion
(US$1,399 million). This was due mainly to an increase
in purchases of marketable securities.
Net cash used in financing activities increased 3.2
billion to 22.8 billion (US$189 million), primarily
because of the increase in cash dividends paid for the
fiscal year.
Cash and cash equivalents at the end of the year
decreased 85.9 billion to 313.7 billion (US$2,593
million) from a year earlier.
Takeda will continue working to improve results and
deploy capital efficiently in order to maintain a sound
financial structure.
Year 2000 (Y2K) Issue
Takeda recognizes the Y2K issue as a critical
management concern, and has charged a director with
responsibility for ensuring that Takeda and its group
companies deal with it effectively. To prevent a material
adverse impact caused by external entities such as
suppliers on its business operations, the Company is
also working to ensure their Y2K readiness.
Remediation and replacement of information systems
and equipment have been progressing according to plan,
with remediation and replacement of all critical systems
scheduled for completion in September 1999. The
Company has also prepared a comprehensive
contingency plan detailing responses to foreseeable
risks. Expenses related to Y2K remediation are not
expected to have a material impact on the operations or
results of the Takeda Group.
Legal Proceedings
The Companys 100-percent-owned subsidiary,
Takeda Vitamin & Food USA, Inc. (TVFU), which
manufactures and sells vitamin bulks in the U.S.A.,
submitted the documents regarding its vitamin business
to the U.S. Department of Justice according to certain
subpoena issued in May 1998.
The Company and TVFU are among co-defendants
with other companies in class-action law suits brought
in the U.S.A. by plaintiffs claiming that they suffered
damages from an alleged conspiracy of price fixing and
market allocations in the worldwide vitamins market.
27
ELEVEN-YEAR SUMMARY OF SELECTED FINANCIAL DATA

Years ended March 31
1999
For the years ended March 31:

Net sales ............................................................................. 844,643
Operating income ...............................................................
142,220
Income before income taxes and minority interests ........
182,142
Income taxes.......................................................................
89,019
Minority interests ..............................................................
1,368
Net income..........................................................................
91,755
Capital investments...........................................................
29,241
Depreciation and amortization..........................................
32,651
Research and development costs.......................................
77,487
1998
1997
1996
841,816
132,952
166,649
83,368
1,671
81,610
34,091
32,763
79,039
838,824
127,350
147,985
75,094
1,508
71,383
30,741
31,473
71,754
801,341
112,707
125,787
64,837
1,106
59,844
30,358
33,255
68,006
103.52
29.00
92.97
21.25
81.52
17.25
68.35
15.00
At March 31:
Current assets .................................................................... 913,263
Property, plant and equipment .........................................
224,229
Investments and other assets............................................
189,507
Total assets......................................................................... 1,326,999
Current liabilities ..............................................................
280,058
Long-term liabilities ..........................................................
109,705
Minority interests ..............................................................
29,863
Shareholders equity ..........................................................
907,373
877,808
232,092
186,302
1,296,202
324,735
113,920
28,166
829,381
826,288
229,400
165,087
1,220,775
292,873
144,198
26,565
757,139
787,615
231,532
153,086
1,172,233
299,032
147,825
25,467
699,909
59,008
16,443
71,172
16,586
81,278
17,258
Per share amounts (Yen and U.S. dollars)

(See Note 11 to consolidated financial statements):
Net income ......................................................................
Cash dividends................................................................
Number of shareholders ....................................................

Number of employees.........................................................
54,059
15,776
Notes: 1. The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of 121=US$1, the approximate
exchange rate at March 31, 1999.
2. In the year ended March 31, 1995, 35 previously unconsolidated subsidiaries accounted for by the equity method were consolidated. As a result, the
number of consolidated subsidiaries totaled 47 and 24 companies were accounted for by the equity method.
28
Thousands of
U.S. dollars (Note 1)
Millions of yen
1995
1994
1993
1992
1991
1990
1989
1999
771,667
95,285
107,145
54,424
1,291
51,430
36,337
29,768
67,159
727,845
88,434
103,210
54,520
1,064
47,626
42,965
27,922
62,934
720,140
76,675
93,029
43,827
1,168
48,034
37,953
27,508
62,277
709,686
67,963
85,727
50,603
1,288
33,836
39,627
26,199
59,742
691,409
70,297
104,998
58,902
1,607
44,489
45,726
23,718
53,388
697,915
78,145
92,767
54,849
1,057
36,861
38,179
21,185
51,163
689,381
87,931
97,297
57,173
1,270
38,854
29,032
17,805
45,336
$ 6,980,521
1,175,372
1,505,306
735,694
11,306
758,306
241,661
269,843
640,388
58.74
14.00
54.43
13.00
54.98
12.00
38.74
12.00
50.98
12.00
42.28
10.00
44.77
10.00
$0.86
0.24
721,814
241,506
147,428
1,110,748
275,636
157,323
24,666
653,123
693,837
210,236
148,350
1,052,423
271,498
145,657
21,407
613,861
662,777
196,441
147,427
1,006,645
249,853
158,628
20,508
577,656
641,275
188,145
149,134
978,554
261,689
158,081
19,484
539,300
645,414
182,200
135,385
962,999
273,902
155,422
18,342
515,333
659,782
163,221
129,854
952,857
304,478
151,436
16,846
480,097
621,447
123,343
141,846
886,636
277,677
147,296
12,606
449,057
$ 7,547,628
1,853,132
1,566,174
10,966,934
2,314,529
906,653
246,802
7,498,950
87,897
17,580
89,384
15,792
88,446
15,781
89,349
15,497
87,329
15,210
82,282
15,137
72,873
13,675
29
CONSOLIDATED BALANCE SHEETS

March 31, 1999 and 1998
Millions of yen
ASSETS
1999
Current assets:
Cash and cash equivalents
Cash ...................................................................................................... 39,213
Time deposits........................................................................................
274,585
1998
36,980
362,789
1999
324,074
2,269,298
Total .......................................................................................
313,798
399,769
2,593,372
Marketable securities (Note 3) ...............................................................

Notes and accounts receivable
Trade notes ...........................................................................................
Trade accounts .....................................................................................
Due from unconsolidated subsidiaries and affiliates .........................
Allowance for doubtful receivables and losses on sales returns........
227,032
92,845
1,876,298
61,173
138,621
28,859
(3,775)
69,342
137,276
26,946
(4,010)
505,562
1,145,628
238,504
(31,198)
Total .......................................................................................
224,878
229,554
1,858,496
Inventories (Note 4).................................................................................

Deferred income taxes.............................................................................
Other current assets ...............................................................................
107,767
28,180
11,608
107,049
37,367
11,224
890,636
232,893
95,933
Total current assets .................................................
913,263
877,808
7,547,628
Property, plant and equipment (Note 5):

Land .........................................................................................................
Buildings and structures ........................................................................
Machinery and equipment ......................................................................
Construction in progress.........................................................................
39,603
229,146
382,256
6,887
40,029
225,402
371,249
12,156
327,298
1,893,769
3,159,140
56,917
657,892
(433,663)
648,836
(416,744)
5,437,124
(3,583,992)
Net property, plant and equipment .....................
224,229
232,092
1,853,132
Investments and other assets:

Investments in and advances to unconsolidated
subsidiaries and affiliates (Note 3).......................................................
Investment securities (Note 3) ...............................................................
Deferred income taxes.............................................................................
Other assets .............................................................................................
73,764
50,058
36,612
29,073
81,846
40,596
38,430
25,430
609,620
413,702
302,579
240,273
Total investments and other assets .....................
189,507
186,302
1,566,174
TOTAL ....................................................................................................... 1,326,999
1,296,202
$10,966,934
Total .......................................................................................
Accumulated depreciation ......................................................................
See notes to consolidated financial statements.
30
Thousands of
Millions of yen
LIABILITIES AND SHAREHOLDERS EQUITY
1999
Thousands of
1998
1999
Current liabilities:
Bank loans (Note 5).................................................................................
9,361
9,509
77,364
Current portion of long-term debt (Note 5)............................................
2,119
24,077
17,512
11,277
12,373
93,198
Notes and accounts payable

Trade notes ...........................................................................................
Trade accounts .....................................................................................
80,154
78,287
662,430
Due to unconsolidated subsidiaries and affiliates..............................
21,603
20,101
178,537
Total .......................................................................................
113,034
110,761
934,165
Accrued expenses ....................................................................................
68,464
76,014
565,818
Income taxes payable ..............................................................................
38,698
54,902
319,818
Other current liabilities ..........................................................................
48,382
49,472
399,852
Total current liabilities...........................................
280,058
324,735
2,314,529
Long-term debt (Note 5)..........................................................................
9,858
10,896
81,471
Retirement benefits (Note 6) ..................................................................
93,961
96,909
776,537
Reserve for SMON compensation (Note 7).............................................
5,886
6,115
48,645
Total long-term liabilities.......................................
109,705
113,920
906,653
Minority interests ..................................................................................
29,863
28,166
246,802
March 31, 1998 878,991,506 shares.................................................
63,540
52,468
525,124
Additional paid-in capital .......................................................................
49,637
38,578
410,223
Legal reserve ...........................................................................................
14,250
12,804
117,769
Retained earnings ...................................................................................
779,946
725,531
6,445,834
Total shareholders equity .....................................
907,373
829,381
7,498,950
TOTAL ....................................................................................................... 1,326,999
1,296,202
$10,966,934
Long-term liabilities:
Commitments and contingencies (Note 13)

Shareholders equity (Notes 8 and 14):
Common stock authorized, 2,400,000,000 shares;
issued and outstanding shares with par value of 50 per share:
March 31, 1999 889,272,395 shares
31
CONSOLIDATED STATEMENTS OF INCOME

Years ended March 31, 1999, 1998 and 1997
Thousands of
Millions of yen
1999
Net sales (Notes 3 and 12)........................................................... 844,643
1998
1997
1999
841,816
838,824
$6,980,521
Operating costs and expenses (Note 12):

Cost of sales (Note 3) ..................................................................
Selling, general and administrative (Note 9)............................
435,787
266,636
443,292
265,572
449,228
262,246
3,601,546
2,203,603
Total ..........................................................................
702,423
708,864
711,474
5,805,149
Operating income (Note 12) ......................................................
142,220
132,952
127,350
1,175,372
Other income (expenses):

Interest and dividend income ....................................................
Interest expense..........................................................................
Equity in earnings of unconsolidated
subsidiaries and affiliates ........................................................
Gain on sale of investment in an affiliate .................................
Loss on sales and disposals of property,
plant and equipment ................................................................
Exchange gains (losses)..............................................................
Other net ................................................................................
8,603
(1,059)
6,677
(1,808)
5,783
(2,257)
35,981
24,193
4,833
17,270
297,364
(37)
968
(1,092)
(2,744)
(6,066)
(20,967)
Total ..........................................................................
39,922
33,697
20,635
329,934
Income before income taxes and minority interests.........
182,142
166,649
147,985
1,505,306
Income taxes (Note 10):

Current........................................................................................
Deferred ......................................................................................
78,014
11,005
93,088
(9,720)
78,219
(3,125)
644,744
90,950
Total ..........................................................................
89,019
83,368
75,094
735,694
Income before minority interests ..........................................

Minority interests......................................................................
93,123
1,368
83,281
1,671
72,891
1,508
769,612
11,306
Net income................................................................................... 91,755
81,610
71,383
$ 758,306
(332)
(734)
(2,537)
(666)
1,328
(860)
Yen
Amounts per common share (Note 11):

Net income ..................................................................................
Cash dividends applicable to the year.......................................
32
103.52
29.00
92.97
21.25
71,099
(8,752)
81.52
17.25
$0.86
0.24
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY

Thousands of
Millions of yen
1999
1998
1997
1999
Common stock:
Balance, beginning of year ......................................................... 52,468
Shares issued upon conversion of debt......................................
11,072
48,948
3,520
48,942
6
$ 433,620
91,504
Balance, end of year ................................................................... 63,540
52,468
48,948
$ 525,124
Additional paid-in capital:

Increase due to conversion of debt.............................................
11,059
35,063
3,515
35,057
6
$ 318,826
91,397
38,578
35,063
$ 410,223
Legal reserve:
Transfer from retained earnings ..............................................
1,446
12,235
569
12,804
12,235
12,235
$ 105,818
11,951
$ 117,769
660,893
81,610
603,675
71,383
$5,996,124
758,306
Retained earnings:
Net income ..................................................................................
91,755
Cash dividends paid; 24.75 ($0.20) 1999,
18.25 1998 and 15.75 1997 (per share)....................... (21,885)
Bonuses to directors and corporate auditors.............................
(239)
Transfer to legal reserve ............................................................
(1,446)
Effect on beginning retained earnings of changing from
the equity method to the cost method of accounting for
an investment in a certain former affiliate ............................ (13,770)
(16,001)
(402)
(569)
725,531
(13,792)
(373)
660,893
(180,868)
(1,975)
(11,951)
(113,802)
$6,445,834
33
CONSOLIDATED STATEMENTS OF CASH FLOWS

Thousands of
Millions of yen
1999
1998
1997
1999
Operating activities:
Net income ............................................................................................................................ 91,755
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ........................................................................................
32,651
Loss on sales and disposals of property, plant and equipment......................................
332
Provision for deferred income taxes ................................................................................
11,005
Undistributed earnings of unconsolidated subsidiaries and affiliates ..........................
(7,998)
Gain on sale of investment in an affiliate .......................................................................
Changes in assets and liabilities, net of effects from consolidating

a former affiliate (Note 2):
Decrease in notes and accounts receivable ............................................................
4,676
Decrease (increase) in inventories...........................................................................
(718)
Decrease (increase) in other current assets ............................................................
(384)
Decrease (increase) in other assets .........................................................................
(4,853)
Increase (decrease) in notes and accounts payable ................................................
2,273
Increase (decrease) in accrued expenses .................................................................
(7,550)
Increase (decrease) in income taxes payable ..........................................................
(16,204)
Increase (decrease) in other current liabilities .......................................................
1,043
Decrease in liability for retirement benefits ...........................................................
(2,948)
Increase in minority interests..................................................................................
1,697
Other .........................................................................................................................
202
Net cash provided by operating activities ...........................................
Investing activities:
Payment for purchases of property, plant and equipment.................................................
Proceeds from sales of property, plant and equipment ......................................................
Payment for purchases of investment securities ................................................................
Proceeds from sale of investment in an affiliate .................................................................
Proceeds from sales of investment securities......................................................................
Decrease (increase) in investments in and advances to
unconsolidated subsidiaries and affiliates ........................................................................
Net increase in marketable securities .................................................................................
Cash paid for acquiring a majority interest in a former affiliate,
net of cash and cash equivalents from consolidating this subsidiary ..............................
71,383
$ 758,306
32,763
666
(9,720)
(16,370)
(4,833)
31,473
37
(3,125)
(16,252)
269,843
2,744
90,950
(66,099)
18,312
(4,643)
342
(13)
(6,784)
3,593
12,042
1,839
(892)
1,167
(98)
10,350
802
1,458
3,553
2,140
5,527
(111)
(13,175)
(1,079)
1,098
(21)
38,645
(5,934)
(3,174)
(40,107)
18,785
(62,397)
(133,917)
8,620
(24,364)
14,025
1,669
104,979
108,981
94,058
867,595
(28,932)
1,085
(8,652)
1,199
(33,936)
89
(337)
5,488
1,350
(31,745)
2,492
(3,540)
911
(239,107)
8,967
(71,504)
9,909
184
(134,187)
(78)
(40,191)
17
(13,175)
1,521
(1,108,984)
(5,078)
Net cash used in investing activities.....................................................
(169,303)
(72,693)
(45,040)
(1,399,198)
Financing activities:
Redemption of bonds ............................................................................................................
Proceeds from issuance of long-term debt ...........................................................................
Repayment of long-term debt ..............................................................................................
Net increase (decrease) in bank loans .................................................................................
Dividends paid ......................................................................................................................
(215)
2,256
(2,889)
(148)
(21,885)
(500)
2,708
(3,371)
(2,438)
(16,001)
(600)
1,995
(4,777)
1,972
(13,792)
(1,777)
18,645
(23,876)
(1,223)
(180,868)
Net cash used in financing activities ....................................................
(22,881)
(19,602)
(15,202)
(189,099)
(274)
(1,907)
Effect of exchange rate changes (Note 2) .........................................................................

Net increase in cash and cash equivalents.....................................................................
Cash and cash equivalents, beginning of year ..............................................................
1,234
(85,971)
399,769
10,198
16,412
383,357
31,909
351,448
Cash and cash equivalents, end of year .......................................................................... 313,798
399,769
383,357
$2,593,372
Additional cash flow information:

Interest paid.......................................................................................................................... 1,061
Income taxes paid .................................................................................................................
94,218
1,779
80,509
2,452
78,315
7,035
12
$ 182,901
Noncash financing activity:

Convertible debt converted into common stock .................................................................. 22,131
(710,504)
3,303,876
8,769
778,661
Noncash investing activities:

The Company acquired a majority of a certain affiliate in the year ended
March 31, 1998 and included it in the consolidation (Note 2). In conjunction
with the acquisition, liabilities were assumed as follows:
Assets acquired .................................................................................................................
Investment eliminated .....................................................................................................
Cash paid to acquire a majority of the capital stock ......................................................
Goodwill.............................................................................................................................
Minority interests .............................................................................................................
6,054
(723)
(5,607)
4,885
(434)
Liabilities assumed...........................................................................................................
4,175
$ (113,802)
Effect on beginning retained earnings of changing from the

equity method to the cost method of accounting for
an investment in a certain former affiliate ..................................................................... (13,770)
34
81,610
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1
BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS

The accompanying consolidated financial statements are prepared from the consolidated financial statements issued for
domestic reporting purposes in accordance with the provisions
set forth in the Japanese Securities and Exchange Law. Takeda
Chemical Industries, Ltd. (the Company) and its domestic
consolidated subsidiaries maintain their accounts and records
in accordance with the provisions set forth in the Japanese
Commercial Code and in conformity with generally accepted
accounting principles and practices in Japan, which are different in certain respects as to application and disclosure requirements of International Accounting Standards, and its overseas
subsidiaries and affiliates in conformity with those of the countries of their domicile.
In preparing the consolidated financial statements, certain
reclassifications and rearrangements have been made to the
consolidated financial statements issued domestically in Japan
in order to present them in a form which is more familiar to
readers outside Japan. Presentation of a consolidated statement of cash flows as an integral part of the basic financial
statements is not required for domestic reporting purposes but
is included herein for the convenience of readers. In addition,
the accompanying notes include information which is not
required under generally accepted accounting principles and
practices in Japan but is presented herein as additional
information.
The financial statements are stated in Japanese yen, the currency of the country in which the Company is incorporated and
operates. The translations of Japanese yen amounts into U.S.
dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of 121 to
US$1, the approximate rate of exchange at March 31, 1999.
Such translations should not be construed as representations
that the Japanese yen amounts could be converted into U.S.
dollars at that or any other rate.
Note 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation
The accompanying consolidated financial statements include the
accounts of the Company and its significant subsidiaries
(together the Companies). All significant intercompany
balances and transactions are eliminated in consolidation.
During the fiscal year ended March 31, 1999, the Company
established two new subsidiaries and acquired a majority interest of a certain affiliate (defined as ownership from 20% to 50%),
previously accounted for by the cost method. During the fiscal
year ended March 31, 1998, the Company established five new
subsidiaries and acquired a majority interest of a certain affiliate, previously accounted for by the equity method. The consolidated financial statements include the balances of such subsidiaries and their operations and cash flows from the date of
their inclusion in the consolidation.
During the fiscal year ended March 31, 1999, due to the
decrease in ownership of a certain company, previously accounted for by the equity method, the former affiliate has been
accounted for by the cost method and retained earnings at April
1, 1998 has been retroactively adjusted.
Cash and cash equivalents
In reporting cash flows, the Companies consider cash and time
deposits with maturities of one year or less to be cash and cash
equivalents. Such time deposits may be withdrawn on demand
without diminution of principal.
Marketable securities and investments
Publicly traded marketable securities included in marketable
and investment securities are carried at the lower of cost or mar-
ket value applied on an individual basis. Cost is determined by

the average method. Except for certain insignificant affiliates,
the Companys investments in unconsolidated subsidiaries and
affiliates are stated at their underlying net equity values after
elimination of intercompany profits. Other securities are stated
at cost except that appropriate write-downs are recorded for
securities with values that have been permanently impaired.
Inventories
Merchandise and raw materials are stated at the lower of cost or
market value and finished products and work-in-process are stated at cost. Cost is primarily determined by the average method.
Property, plant and equipment
Property, plant and equipment is stated at cost. Depreciation is
primarily computed by the declining-balance method at rates
based on the estimated useful lives of the assets.
Goodwill
The excess of the purchase price over net assets of a subsidiary
acquired (goodwill) is amortized on the straight-line method
over five years. Goodwill at March 31, 1999 and 1998 were
2,929 million ($24,207 thousand) and 3,907 million, net of
amortization of 1,956 million ($16,165 thousand) and 978
million, respectively.
Retirement benefits
The liability for retirement benefits is stated at an amount
which would be required to be paid if all employees eligible
under the Companies retirement benefit plans voluntarily ter35
minated their employment as of the balance sheet date, less

amounts funded under contributory and non-contributory
trusteed pension plans. The liability includes retirement benefits for directors and corporate auditors of the Company, payments of which are subject to the approval of the shareholders.
and shareholders equity, which are translated at historical

rates. Revenue and expense accounts of overseas subsidiaries
and affiliates are translated into Japanese yen at the average
exchange rate for the year. Differences arising from such
translation are included in other assets or liabilities.
Stock and bond issue costs

Stock and bond issue costs are charged to income as incurred.
Income taxes
Current income taxes are provided for based on amounts currently payable for each year. Deferred income taxes arising
from timing differences in the recognition of income and expenses for tax and financial reporting purposes are reflected in the
consolidated financial statements. Accrued income taxes on
undistributed earnings of overseas subsidiaries and affiliates
are also reflected in the consolidated financial statements.
Accrued income taxes on the undistributed earnings
of domestic subsidiaries and affiliates are not provided because
dividends received from domestic companies are expected to be
non-taxable.
At March 31, 1999, deferred tax assets were devalued at a
new statutory tax rate, effective at the year end. The amount of
devaluation of 8,009 million ($66,190 thousand) was charged
to income for the year ended March 31, 1999.
Foreign currency transactions

Foreign currency amounts are translated into Japanese yen at
the rates in effect at each balance sheet date for monetary current assets and current liabilities, and at historical rates for all
other assets and liabilities, except for those covered by forward
exchange contracts which are translated at the contracted
rates. However, when there is a significant unrealized
exchange loss related to long-term receivables and payables,
such receivables and payables are translated into Japanese yen
at the exchange rates in effect at the balance sheet date.
Revenue and expense items denominated in foreign currencies
are translated at historical rates. Exchange gains or losses are
credited or charged to income as incurred. However, exchange
gains or losses arising from the translation of long-term receivables or payables at forward contract rates are deferred and
amortized over the terms of the related contracts.
Foreign currency financial statements
The financial statements of overseas subsidiaries and affiliates
are translated into Japanese yen by the following principal
methods as set forth by the Financial Accounting Standard on
Foreign Currency Translation in Japan.
The balance sheet accounts of overseas subsidiaries and affiliates are translated into Japanese yen at the current exchange
rates as of the balance sheet date except intercompany accounts
Cash dividends
Cash dividends charged to retained earnings are those actually
paid during the year and consist of year-end dividends for the
preceding year and interim dividends for the current year.
Reclassifications
Certain reclassifications have been made to the consolidated
financial statements for the year ended March 31, 1999. The
consolidated financial statements for 1998 have been retroactively restated to conform to the 1999 presentation.
Note 3
MARKETABLE SECURITIES AND INVESTMENTS

Current marketable securities, which consisted principally of
debt securities, approximated aggregate market value at March
31, 1999 and 1998. Information regarding non-current
marketable equity and debt securities included in investment

securities at March 31, 1999 and 1998 was as follows:
Millions of yen
1999
1998
Carrying value .................................................................................................................................. 35,221 33,707

Aggregate market value ................................................................................................................... 265,204
205,776
Gross unrealized gains ..................................................................................................................... 229,983
172,069
36
Thousands of
U.S. dollars
1999
$ 291,083
2,191,768
1,900,685
Investments in and advances to unconsolidated subsidiaries and affiliates at March 31, 1999 and 1998 consisted of the following:
Millions of yen
1999
1998
Investments at cost ........................................................................................................................... 11,577

Equity in undistributed earnings.....................................................................................................
58,483
Thousands of
U.S. dollars
1999
13,835
64,224
$ 95,678
483,330
70,060
3,704
78,059
3,787
579,008
30,612
Total................................................................................................................................ 73,764
81,846
$609,620
Total.......................................................................................................................................
Advances............................................................................................................................................
At March 31, 1999 and 1998, the Companys investment in

one affiliate (1999) and two affiliates (1998), recorded at
13,609 million ($112,471 thousand) and 29,334 million based
on the equity method, had aggregate quoted market values of
12,377 million ($102,289 thousand) and 31,900 million,
respectively.
Financial information with respect to unconsolidated subsidiaries and affiliates, which were recorded based on the equity
method at March 31, 1999 and 1998 and for each of the three
years ended March 31, 1999, is summarized as follows:
Millions of yen
1999
1998
Thousands of
U.S. dollars
1999
Current assets ................................................................................................................................... 268,528

Other assets.......................................................................................................................................
99,075
339,137
138,814
$2,219,240
818,802
Total....................................................................................................................................... 367,603
477,951
3,038,042
Current liabilities ............................................................................................................................. 179,465

Other liabilities .................................................................................................................................
18,689
211,040
31,631
1,483,182
154,455
Net assets .......................................................................................................................................... 169,449
235,280
$1,400,405
Thousands of
U.S. dollars
Millions of yen
1999
Net sales........................................................................................................................ 613,588

Net income ....................................................................................................................
72,404
1998
1997
639,777
53,146
590,096
40,178
1999
$5,070,975
598,380
Sales to and purchases from unconsolidated subsidiaries and affiliates were as follows:
Thousands of
U.S. dollars
Millions of yen
1999
Sales .............................................................................................................................. 128,708

Purchases......................................................................................................................
65,401
1998
109,862
58,124
1997
105,948
58,384
1999
$1,063,702
540,504
Note 4
INVENTORIES
Inventories at March 31, 1999 and 1998 consisted of the following:
Millions of yen
1999
1998
Thousands of
U.S. dollars
1999
Finished products and merchandise ................................................................................................ 54,413 53,051

Work-in-process.................................................................................................................................
36,393
35,816
Raw materials ...................................................................................................................................
16,961
18,182
$449,694
300,768
140,174
Total .................................................................................................................................. 107,767
$890,636
107,049
37
Note 5
BANK LOANS AND LONG-TERM DEBT

Bank loans consisted of short-term bank loans represented by
notes, generally due in one year. The Companies obtain financing by discounting notes and export drafts with banks. Such
discounted notes and drafts and the related contingent liabilities were not included in the balance sheets but are disclosed as
contingent liabilities (see Note 13).
The weighted average annual interest rates of short-term

bank loans and discounted notes and export drafts at March 31,
1999 and 1998 were 1.8% and 2.1%, respectively.
Long-term debt at March 31, 1999 and 1998 consisted of the
following:
Millions of yen
1999
Thousands of
U.S. dollars
1998
1.9% unsecured convertible bonds due 1998 .......................................................................................
Unsecured loans from banks and financial institutions due through 2023
with interest ranging from 1.4% to 6.7% ...........................................................................................
1,582
Secured bonds due through 2004 with interest ranging from 1.6% to 4.9%......................................
1,300
Collateralized loans from financial institutions due through 2015
with interest ranging from 0.7% to 6.7% ...........................................................................................
9,095
22,347
1999
2,266
1,200
13,074
10,744
9,160
75,165
Total ........................................................................................................................................... 11,977

Less current portion..............................................................................................................................
2,119
34,973
24,077
98,983
17,512
Total.................................................................................................................................... 9,858
10,896
$81,471
The annual maturities of long-term debt were as follows:
Year ending March 31
Millions of yen
Thousands of
U.S. dollars
2000......................................................................................................................................................................
2001......................................................................................................................................................................
2002......................................................................................................................................................................
2003......................................................................................................................................................................
2004......................................................................................................................................................................
2005 and thereafter ............................................................................................................................................
2,119
6,133
1,588
1,101
210
826
$17,512
50,686
13,124
9,099
1,736
6,826
Total..................................................................................................................................................
11,977
$98,983
At March 31, 1999, assets pledged as collateral for long-term debt were as follows:
Millions of yen
Property, plant and equipment, net of accumulated depreciation ...................................................................
As is customary in Japan, security must be given if requested

by a lending bank. Banks have the right to offset cash deposited with them against any debt or obligation that becomes due
38
12,332
Thousands of
U.S. dollars
$101,917
or, in case of default and certain other specified events, against

all other debt payable to the banks. None of the lenders has
ever exercised this right against the Companies obligations.
Note 6
RETIREMENT BENEFITS
Employees of the Companies terminating their employment
either voluntarily or upon reaching the mandatory retirement
age are entitled to severance payments based on the rate of pay
at the time of termination, length of service and certain other
factors. The Company has a contributory trusteed pension plan
which is interrelated with the Japanese government social welfare
program which consists of a basic portion requiring employee and
employer contributions, plus an additional portion established by
the Company. The Company and certain consolidated subsidiaries
also have non-contributory trusteed pension plans. A portion of

the above retirement benefits is funded under such pension plans.
At March 31, 1999 and 1998, the assets of the pension plans
amounted to 116,919 million ($966,273 thousand) and
109,587 million, respectively.
Charges to income with respect to retirement benefits for the
years ended March 31, 1999, 1998 and 1997 were 15,615 million ($129,050 thousand), 15,300 million and 22,268 million,
respectively.
Note 7
RESERVE FOR SMON COMPENSATION

The Company was co-defendant with the Japanese government
and other pharmaceutical companies in legal actions in Japan.
The plaintiffs claimed that a certain medicine, a product of one
of the co-defendants, which was distributed by the Company,
was a cause of SMON, a neurological disease affecting the
plaintiffs.
Compromise settlements have been made with all the plaintiffs through December 25, 1996.
The Company has made a provision in the accompanying
consolidated financial statements for estimated future medical
treatment payments over the remaining lives of the parties
entitled under the compromise settlements.
Note 8
SHAREHOLDERS EQUITY
Under the Japanese Commercial Code (the Code), at least
50% of the issue price of new shares, with the minimum of the
par value thereof, is required to be designated as stated capital.
Under the Code, the Company is required to appropriate and
set aside as a legal reserve an amount at least equal to 10% of
the amounts paid as an appropriation of retained earnings,
including dividends and other distributions, until such reserve
equals 25% of stated capital. This reserve is not available for
dividends but may be used to eliminate or reduce a deficit by
resolution of the shareholders or may be transferred to common
stock by resolution of the Board of Directors.
The Company may transfer portions of additional paid-in

capital to common stock by resolution of the Board of Directors.
The Company may also transfer portions of unappropriated
retained earnings, available for dividends, to common stock by
resolution of the shareholders.
Under the Code, the amount legally available for dividends is
based upon retained earnings as recorded on the books of the
Company. At March 31, 1999, retained earnings available for
future dividends amounted to 556,414 million
($4,598,463 thousand) subject to legal reserve requirements.
Note 9
RESEARCH AND DEVELOPMENT COSTS

Research and development costs are charged to income as
incurred. Research and development costs for the years ended
March 31, 1999, 1998 and 1997 were 77,487 million ($640,388
thousand), 79,039 million and 71,754 million, respectively.
39
Note 10
INCOME TAXES
The effective income tax rates of the Companies differed from the statutory tax rate for the following reasons:
1999
1998
1997
Statutory tax rate ............................................................................................................................................. 47.7%
51.4%
51.4%
Expenses not deductible for tax purposes ....................................................................................................... 2.2

Loss in subsidiaries .......................................................................................................................................... 1.3
Equity in earnings of unconsolidated subsidiaries and affiliates .................................................................. (6.6)
Non-taxable dividend income........................................................................................................................... (0.3)
Tax credits primarily for research and development costs ............................................................................ (0.2)
Effect of statutory tax rate change (see Note 2).............................................................................................. 4.4
Other net ...................................................................................................................................................... 0.4
2.9
0.6
(4.5)
(0.4)
(0.2)
0.2
3.4
0.7
(4.6)
(0.3)
(0.7)
0.8
Effective tax rate .............................................................................................................................................. 48.9%
50.0%
50.7%
Deferred income taxes consisted of the following:
Millions of yen
1999
Expenses recorded on books of account

but not currently deductible for tax purposes .............................................................. (1,976)
Accrued enterprise tax, deductible when paid ............................................................... 1,901
Accrued income taxes on undistributed earnings of
overseas subsidiaries and affiliates .............................................................................. 2,605
Elimination of intercompany profits ...............................................................................
466
Effect of statutory tax rate change (see Note 2) ............................................................. 8,009
Total...............................................................................................................11,005
1998
Thousands of
U.S. dollars
1997
1999
(9,468)
(1,661)
(5,687)
(62)
$(16,331)
15,711
3,104
(1,695)
3,343
(719)
21,529
3,851
66,190
(9,720)
(3,125)
$ 90,950
Note 11
AMOUNTS PER COMMON SHARE

The computations of net income per common share were based
on the weighted average number of shares outstanding. The
average number of common shares used in the computations
was 886,393 thousand shares, 877,766 thousand shares and
875,700 thousand shares for the years ended March 31, 1999,
1998 and 1997, respectively.
The effect of the dilution on net income per common share,
assuming full conversion of outstanding convertible bonds at
40
the beginning of each year (or at the time of issuance, if after

the beginning of the year) with applicable adjustment for related interest expense, net of tax, would be immaterial.
Cash dividends per common share are the amounts applicable to the respective years, including dividends to be paid after
the end of the year.
Note 12
SEGMENT INFORMATION
The Companies operations are classified into four business segments: pharmaceuticals, bulk vitamin and food, chemical products, and other. The pharmaceuticals segment is composed of
those operations involved in the production and sale of ethical
and over-the-counter pharmaceuticals and reagents. The bulk
vitamin and food segment consists of operations principally
involved in the production and sale of vitamins, beverages and
food additives. The chemical products segment is involved in
the production and sale of polyurethane, polyester resins, their
compounds and activated carbon. The other segment mainly

consists of agro products, real estate management and warehousing operations. The agro products operations include the
production and sale of agricultural chemicals such as insecticides, herbicides and fungicides, and animal health products
such as veterinary medicines for pets, feed additives and
medicines for fisheries. Summarized financial information by
business segment for years ended March 31, 1999, 1998 and
1997 is as follows:
Millions of yen
Thousands of U.S. dollars
Net sales
1999
Operating income
1998
1997
1999
Pharmaceuticals .............................. 597,552

Bulk vitamin and food .....................
78,307
Chemical products ........................... 110,573
Other.................................................
58,211
580,692
82,776
117,611
60,737
565,834
87,505
122,340
63,145
Consolidated ......................... 844,643
841,816
838,824
There were no significant intersegment sales. General corporate administrative expenses are generally allocated among the
segments in proportion to their operating expenses. Income
and expenses not allocated to business segments include other
1998
1999
1998
1999
132,794 122,674 119,453

(695) (1,191)
(2,271)
6,860
7,922
6,895
3,261
3,547
3,273
$4,938,446
647,165
913,826
481,084
$1,097,471
(5,744)
56,694
26,951
142,220 132,952 127,350
$6,980,521
$1,175,372
income and expense items such as interest and dividend

income, interest expense, and equity in earnings of unconsolidated subsidiaries and affiliates.
Depreciation
Capital
Identifiable
Depreciation
and amortization
expenditures
assets
and amortization
1999
1999
1999
1998
1999
20,098
3,919
6,383
2,251
19,771
4,410
6,398
2,184
19,101
1,506
6,603
2,031
722,077
574,125
32,651
32,763
29,241
Consolidated......... 1,326,999 1,296,202
32,651
32,763
29,241
Pharmaceuticals.............. 502,238 464,380

Bulk vitamin and food ....
65,979
68,592
Chemical products ..........
123,597
118,532
Other................................
69,948
70,573
Corporate.........................
761,762
565,237
Corporate assets are principally cash and cash equivalents,

marketable securities and investment securities.
For fiscal years beginning on and after April 1, 1997, the
1998
24,043 $ 4,150,727
1,966
545,281
7,207
1,021,463
875
578,083
Capital
expenditures
1999
$166,099
32,388
52,752
18,604
$157,860
12,446
54,570
16,785
6,295,554
4,671,380
269,843
241,661
34,091 $10,966,934
$269,843
$241,661
34,091
Company is required to disclose geographic data for net sales to

customers outside Japan, as follows:
Millions of yen
Net sales to
customers outside Japan
Net sales to
customers outside Japan
1999
1997
Operating income
1999
Millions of yen
Identifiable
assets
Net sales
1998
1997
North America ................................. 82,717

Europe ..............................................
58,895
Other.................................................
33,649
53,753
47,923
34,035
Total.................................................. 175,261
135,711 114,153
1999
Percentage of consolidated net sales

1999
1998
1997
$ 683,612
486,736
278,090
9.7%
7.0
4.0
6.4%
5.7
4.0
$1,448,438
20.7%
16.1%
13.6%
41
Note 13
COMMITMENTS AND CONTINGENCIES

Commitments outstanding at March 31, 1999 for the purchase
of property, plant and equipment amounted to approximately
7,579 million ($62,636 thousand).

At March 31, 1999, contingent liabilities were as follows:
Millions of yen
Loans guaranteed ............................................................................................................................................

Notes and export drafts discounted................................................................................................................
Note 14
SUBSEQUENT EVENT
On June 29, 1999, the shareholders of the Company approved
payment of a year-end cash dividend of 16.25 ($0.13) per share
to holders of record at March 31, 1999 totaling 14,450 million
($119,421 thousand) and bonuses to directors and corporate
auditors of 182 million ($1,504 thousand).
42
12,610
711
Thousands of
U.S. dollars
$104,215
5,876
INDEPENDENT AUDITORS REPORT
To the Board of Directors and Shareholders of

Takeda Chemical Industries, Ltd.:
We have examined the consolidated balance sheets of Takeda Chemical Industries, Ltd. and consolidated subsidiaries
as of March 31, 1999 and 1998, and the related consolidated statements of income, shareholders equity, and cash flows
for each of the three years in the period ended March 31, 1999, all expressed in Japanese yen. Our examinations were
made in accordance with auditing standards, procedures and practices generally accepted and applied in Japan and,
accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the consolidated financial statements referred to above present fairly the financial position of Takeda
Chemical Industries, Ltd. and consolidated subsidiaries as of March 31, 1999 and 1998, and the results of their operations and their cash flows for each of the three years in the period ended March 31, 1999, in conformity with accounting principles and practices generally accepted in Japan applied on a consistent basis.
Our examinations also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made in conformity with the basis stated in Note 1. Such U.S. dollar amounts are
presented solely for the convenience of readers outside Japan.
June 29, 1999
43
DIRECTORY
OFFICES
MAIN SUBSIDIARIES AND AFFILIATES
Head Office
[DOMESTIC]
1-1, Doshomachi 4-chome,

Chuo-ku, Osaka 540-8645, Japan
Tel : (6) 6204-2111
Fax: (6) 6204-2880
Tokyo Head Office
12-10, Nihonbashi 2-chome,
Chuo-ku, Tokyo 103-8668, Japan
Tel : (3) 3278-2111
Fax: (3) 3278-2000
London Office, Agro Company
76 New Bond Street, London
W1Y 9DB, United Kingdom
Tel : (171) 355-1966
Fax: (171) 355-1967
BRANCHES
Sapporo, Tohoku, Kitakanto, Saitama,
Chiba, Tokyo, Yokohama, Koshin-etsu,
Nagoya, Kyoto, Osaka, Kobe, Chugoku,
Shikoku, Fukuoka
PLANTS
Wako Pure Chemical Industries, Ltd.
Kashima, Shimizu, Tokuyama

RESEARCH LABORATORIES
Osaka, Tsukuba
[North America]
Takeda America Holdings, Inc.
555 Madison Avenue,
Tel : (6) 6203-3741
New York, NY 10022, U.S.A.
Fax: (6) 6203-2029
Tel : (212) 421-6954
Nihon Pharmaceutical Co., Ltd.
Fax: (212) 355-5243
9-8, Higashikanda 1-chome,
TAP Holdings Inc.
Chiyoda-ku, Tokyo 101-0031, Japan
Bannockburn Lake Office Plaza,
Tel : (3) 3864-8411
2355 Waukegan Road,
Fax: (3) 5687-9485
Deerfield, IL 60015, U.S.A.
Tokyo Iyakuhin Co., Ltd.

7-35, Horinouchi 1-chome,
Tel : (847) 317-5711

Fax: (847) 317-5797
Suginami-ku, Tokyo 166-8525, Japan
Takeda America Research &
Tel : (3) 3318-5511
Fax: (3) 3318-5527
101 Carnegie Center, Suite 207,
Mizusawa Industrial Chemicals, Ltd.

1-21, Nihonbashi-Muromachi 4-chome,
Princeton, NJ 08540 U.S.A.

Tel : (609) 452-1113
Fax: (609) 452-1218
Tel : (3) 3270-3821
Takeda Pharmaceuticals America, Inc.
Fax: (3) 3246-0280
475 Half Day Road, Suite 500
Takeda Food Products, Ltd.

20, Imoji 3-chome, Itami-shi,
Shonan, Osaka, Hikari, Takasago,
[OVERSEAS]
Hyogo 664-0011, Japan
Lincolnshire, IL 60069, U.S.A.

Tel : (847) 383-3000
Fax: (847) 383-3050
Tel : (727) 78-1121
Takeda America, Inc.
Fax: (727) 72-5155
555 Madison Avenue,

New York, NY 10022-4406, U.S.A.
Tel : (212) 421-6950
Fax: (212) 355-5243
Takeda Vitamin & Food USA, Inc.
101 Takeda Drive,
Wilmington, NC 28401, U.S.A.
Tel : (910) 762-8666
Fax: (910) 762-6846
Takeda Finance USA, Inc.
32 Loockerman Square, Suite L-100,
Kent County, Dover,
DE 19901, U.S.A.
44
[Europe]
Takeda Europe Holdings Ltd.
14 Waterloo Place, St. James, London
SW1Y 4AR, United Kingdom
Tel : (171) 389-9420
Fax: (171) 930-9599
Takeda Europe Research &
Savannah House
11-12, Charles II Street
London SW1Y 4QU,
United Kingdom
Tel : (44) 171-484-9000
Fax: (44) 171-484-9062
Laboratoires Takeda
15, Quai de Dion Bouton,
92816 Puteaux Cedex, France
Tel : (1) 4625-1616
Fax: (1) 4697-0011
Takeda UK Limited
3 The Courtyard, Meadowbank
Furlong Road, Bourne End,
Buckinghamshire, SL8 5AJ
United Kingdom
Tel : (44) 1628-537-900
Fax: (44) 1628-526-615
Takeda Italia Farmaceutici S.p.A.
Via Elio Vittorini, 129,
00144 Rome, Italy
Tel : (06) 502601
Fax: (06) 5011709
Takeda Ireland Ltd.
Takeda (Thailand), Ltd.
Bray Business Park
12Ath Floor, Si Ayutthaya Bldg.,
Kilruddery, Co. Wicklow,
487/1, Si Ayutthaya Road,
Ireland
Bangkok 10400, Thailand
Tel : (1) 205-0600
Tel : (2) 248-0994/7
Fax: (1) 205-0601
Fax: (2) 248-0998
Takeda Europe GmbH
P.T. Takeda Indonesia
Domstrasse 17,
Plaza Mashill 15th Floor,
D-20095 Hamburg, Germany
JI. Jend. Sudirman Kav. 25,
Tel : (49) 40-3290-50
Jakarta 12920, Indonesia
Fax: (49) 40-3290-5500
Tel : (21) 526-7656

Fax: (21) 526-7657
[Asia]
Ltd.
Co., Ltd.
100 Beach Road, 28-05/08
No. 11 Xinghua Road, Tianjin Xiqing
Shaw Towers, Singapore 189702
Economic Development Area, Tianjin,
Tel : (299) 0833
China
Fax: (292) 4384
Tel : (22) 2397-0011

Fax: (22) 2397-2230
Nanking West Road,

Taipei, Taiwan
Fook Lee Commercial Centre,
Tel : (2) 555-6661
33 Lockhart Road,
Fax: (2) 558-5135
Wanchai, Hong Kong

Tel : 2861-2218
Fax: 2529-4216
Takeda Agro Seoul, Co., Ltd.

Sam Heung Building 1215, 705-9,
Yeok Sam-Dong, Kangnam-ku,
Takeda Chemical Industries
Seoul, Korea
(Taiwan), Ltd.
Tel : (2) 558-4810
7th Floor, Great China Bldg.,
Fax: (2) 558-4811
No. 217, Sec. 3, Nanking East Road,

Taipei, Taiwan
Viktoriaallee 3-5,
Fax: (2) 2712-1118
Fax: (241) 941-1120
11th Floor, No. 22,
Room 1801-2, 18th Floor,
Tel : (2) 2712-1112
Tel : (241) 941-0
Croslene Chemical Industries, Ltd.
Takeda IMC Chemical Ltd.
Takeda Pharma GmbH

52066 Aachen, Germany
Takeda Vitamin & Food Asia Pte.
Tianjin Takeda Pharmaceuticals
Davao Central Chemical

Corporation
Km19, Tibungco, Davao City 8000,
Philippines
Boie-Takeda Chemicals, Inc.
Tel : (82) 238-0044
12th Floor, Sky Plaza Bldg.,
Fax: (82) 238-0066
6788 Ayala Avenue, Oledan Square,

Makati City, Metro Manila, Philippines
Tel : (2) 886-6954/6961
Fax: (2) 886-6952
Century Chemical Works Sdn. Bhd.

Mk. 1, No. 1026,
Prai Industrial Complex, 13609 Prai,
Province Wellesley, Penang, Malaysia
Tel : (4) 3907795
Fax: (4) 3907817
(as of June 29, 1999)

45
CORPORATE DATA
Takeda Chemical Industries, Ltd.
Founded:
June 12, 1781
Date of Incorporation:
January 29, 1925
Paid-in Capital:
63,540 million
Number of Employees:
9,139
Number of Shareholders:
54,059
Common Shares Issued:
889,272,395
Independent Certified Public Accountants:
Deloitte Touche Tohmatsu
(by Tohmatsu & Co., the Japanese member firm
of Deloitte Touche Tohmatsu International)
Osaka Kokusai Building
3-13, Azuchimachi 2-chome
Stock Exchange Listings:
Tokyo, Osaka, Nagoya, Fukuoka, Hiroshima,
Sapporo, Niigata
Transfer Agent:
The Toyo Trust and Banking Co., Ltd.
6-3, Fushimi-machi 3-chome
(as of March 31, 1999)
46
Further Information
For further information, please contact:
Head Office
Tel: (6) 6204-2111
Fax: (6) 6204-2880
Tokyo Head Office
12-10, Nihonbashi 2-chome,
Tel: (3) 3278-2111
Fax: (3) 3278-2000
URL
http://www.takeda.co.jp/
Printed in Japan

Annual Report - Takeda

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Annual Report - Takeda

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TAKEDA

An Interview with the President .................................................

Feature Section ............................................................................

Innovative and Efficient Research Drives Growth ....................

Global Development Speeds Products to Market.......................

Overview of Product Status ....................................................... 10

Takeda Chemical Industries, Ltd. and Consolidated Subsidiaries

For the years ended March 31:

Per share amounts (Yen and U.S. dollars)

An Interview with the President

Kunio Takeda, President

Takedas medium-term management

Moreover, the speed and scale of changes in

What issues are included in the revised

we will further strengthen and promote the

America launched the antidiabetic agent

growth of this business, centered on

pioglitazone hydrochloride (brand name:

internationally strategic products. In nonpharmaceutical businesses, as part of our

Actos). With once-daily dosing, Actos has

emphasis on cultivating high-value-added

What are some specific ways in which

demonstrated its benefits in significantly

What about the domestic market?

Although weve achieved good

Although the Japanese pharmaceutical

establishing further international bases. We

launched cerivastatin sodium, an HMGCoA reductase inhibitor, under the brand

diseases. We have already achieved a

In June 1999 we launched candesartan

number of successes in these areas. The

cilexetil, an angiotensin II receptor

the U.S. market. In the competitive

angiotensin II AT1 receptors and thereby

thiazolidinedione class, Actos was approved

suppresses the action of angiotensin II to

for use both as a monotherapy and in

provide long-lasting and assured

combination with insulin, sulfonylureas or

Please expand upon Takedas R&D

Furthermore, we have implemented our

Takeda Europe Research &

Takeda America Research &

TAP Holdings Inc.

Takeda Pharma GmbH

Takeda Italia Farmaceutici

(This illustration shows Takedas pharmaceutical operations outside Japan)

An Interview with the President

What fundamental principles provide

on the basis of our corporate philosophy:

contributing to better health and quality of

What is Takedas strategy for its group

Finally, we are committed to earning the

Innovative and Efficient Research Drives Growth

Discovery of New Anti-AIDS Drug

Pharmaceutical Discovery Research Division

The Pharmaceutical Research Division contributes to the creation of new pharmaceuticals by

Global Development Speeds Products to Market

Overview of Product Status

Congestive heart failure

Country (Brand Name)

Other European countries

Japan & Europe

TCV-116 and a diuretic