Astellas Pharma Inc. ("Astellas"; headquarters: Tokyo; President and CEO: Toichi Takenaka) decided at a board meeting held on June 24 to integrate its active pharmaceutical ingredient (API) production function at its Takahagi Site and establish a new API manufacturing subsidiary through a company split on April 1, 2006.

At present, Astellas has its Takahagi Plant, Process Chemistry Labs., Bulk Technology Administration, and Fermentation and Biotechnology Labs. at the Takahagi Site. Based on the new decision, Takahagi Plant, the manufacturing and analytical functions for APIs for investigational use at the Process Chemistry Labs. and the site management function of the Bulk Technology Administration, will be spilt from Astellas and transferred to a new API manufacturing subsidiary. The new subsidiary will have through function for the production of APIs for investigational use and finished products and contribute to the timely and accurate supply of API for investigational use, early establishment of new product production, ensure the stable supply of products and the improvement of API manufacturing technology of the Astellas group.

Astellas has established a global production system with production sites in Japan, Europe, and the US, etc. In Japan, it has three production subsidiaries: Astellas Tokai Co., Ltd., Toyama Fujisawa Co., Ltd.*, and Shizuoka Fujisawa Co., Ltd.* With the establishment of the new subsidiary, Astellas will have transferred all its production functions including APIs to subsidiaries. Astellas will continue to review its production system to ensure a continuous growth in its corporate value and enhance its global competitiveness.

*Toyama Fujisawa Co., Ltd. and Shizuoka Fujisawa Co., Ltd. will be renamed Astellas Toyama Co., Ltd. and Astellas Shizuoka Co., Ltd., respectively, on October 1, 2005.

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