Securities Code: 4506 Supplementary Financial Data for the Third Quarter of the Year Ending March 31, 2010 I. Consolidated Financial Highlights 1 II. Consolidated Statements of Income 3 III. Consolidated Balance Sheets 6 IV. Consolidated Statements of Cash Flows 8 V. Quarterly Business Results 9 Ⅵ. Development Pipeline 10 Ⅶ. Profile of Major Products under Development 14 February 3, 2010 Dainippon Sumitomo Pharma Co., Ltd. - This document contains forward-looking statements based on management’s assumptions and beliefs in light of the information currently available, and involve risks and uncertainties. Actual financial results may differ materially depending on a number of factors, including economic conditions. - Forecasts for the year ending March 31, 2010 include figures of the subsidiaries in America. All values are rounded. Therefore totals may not be consistent with aggregated figures. I. Consolidated Financial Highlights 1. Highlights of the Statements of Income (Billions of Yen) Nine Nine months ended Year Year ending 3/31/10 months 12/31/09 ended (Forecasts) ended 12/31/08 Change (%)3/31/09 Change (%) Net sales 201.9 203.8 0.9 264.0 295.0 11.7 Cost of sales 78.9 79.1 0.3 103.7 113.5 9.4 SG&A expenses 95.5 92.7 (2.9) 129.1 150.5 16.5 SG&A expenses less 57.2 57.0 (0.3) 76.3 97.0 27.1 R&D costs R&D costs 38.3 35.7 (6.9) 52.8 53.5 1.3 Operating income 27.5 32.0 16.1 31.2 31.0 (0.5) Ordinary income 28.4 31.8 11.8 31.4 29.0 (7.6) Net income 17.1 21.2 23.8 20.0 19.0 (4.9) Notes1: Cost of sales includes provision for (reversal of) reserve for sales returns. 2: Sumitomo Pharmaceuticals (Suzhou) Co.,Ltd. is newly added as a consolidated subsidiary from this fisacal year. 3: The results of the subsidiaries in America (Dainippon Sumitomo Pharma America Holdings, Inc. / Dainippon Sumitomo Pharma America, Inc. / Sepracor Inc.)are to be included in consolidated results for Q4. (No impact on profit for Q3) Earnings per share (yen) 43.00 53.24 50.30 47.82 Return on equity (ROE) 5.3% 6.4% 6.2% 5.8% 2.Valuations and accounting procedures by acquisition of Sepracor (Millions of dollar) Impact on Before After Accounting Valuation pretax income purchase price purchase price procedures (Forecasts for allocation allocation differences (Amortization) FY2009) - Amortization years by Patent rights 1,208 1,208 products 69 In-process R&D Capitalize - 57 57 - (Intangible Assets) (Amortize after approval) Inventories 67 146 79 Charge to cost of sales 40 Deferred tax liabilities - (489) (489) -- (of the above) Other assets & 661 721 6 -- liabilities (Net) Goodwill 26 864 838 Amortization for 20 years 9 Total 754 2,506 1,753 118 Notes: The above amounts of purchase price allocation are provisionary for the present. Patent rights include sales rights. -supplementary1- 3. Highlights of the Balance Sheets (Billions of Yen) As of As of 3/31/09 12/31/09 (B) - (A) (A) (B) Total assets 391.3 667.1 275.9 Net assets 324.5 338.6 14.1 Shareholders' equity 324.4 338.6 14.0 Shareholders' equity ratio 82.9% 50.8% 4. Capital Expenditures and Depreciation (Billions of Yen) Nine Nine months months Year ending Year ended ended ended (B) - (A) 3/31/10 Change 3/31/09 12/31/08 12/31/09 (Forecasts) (A) (B) Capital expenditures 8.7 3.9 (4.7) 10.6 11.0 0.4 (including intangible assets) Depreciation and amortization 7.9 7.8 (0.1) 10.7 12.0 1.3 Note: The above amounts don’t include impact by asset valuation associated with acquisition of Sepracor. - Major capital expenditure projects for the year ending March 31, 2010 Integration of product formulations development functions in Technology Research & Development Division : ¥0.90 billion (total budget: ¥0.90 billion, to be completed in April 2010) 5. Highlights of the Statements of Cash Flows (Billions of Yen) Nine months Nine months ended ended (B)-(A) 12/31/08 12/31/09 (A) (B) Net cash provided by operating activities 12.6 20.4 7.8 Net cash used in investing activities (23.9) (173.9) (149.9) Net cash used in financing activities (11.8) 169.8 181.6 Increase related to change in scope of - 1.5 1.5 consolidation Cash and cash equivalents at the end of period 33.2 67.2 34.0 -supplementary2- II. Consolidated Statements of Income 1. Statements of Income (Billions of Yen) (Positives) Nine Nine ・Sales growth of LONASEN months months ®、AVAPRO®、AmBisome® ended ended Change ・Increased sales of DS 12/31/08 12/31/09 (B)-(A) (%) Pharma Biomedical Co., Ltd. (A) (B) (Negatives) Net sales 201.9 203.8 1.8 0.9 ・Decreased sales of AMLODIN® due to the Overseas sales 14.7 16.1 1.4 9.2 influence of generics Cost of sales 78.9 79.1 0.2 0.3 ・Contribution of Sumitomo Gross profit 123.0 124.7 1.6 1.3 Pharamaceuticals (Suzhou) Co., Ltd. SG&A expenses 95.5 92.7 (2.8) (2.9) Labor costs 24.5 25.5 1.1 4.3 ・Cost of sales ratio Advertising and 39.1%⇒38.8% 3.8 3.0 (0.8) (21.2) promotion costs (Decrease in the influence of Sales promotion costs 8.0 8.1 0.0 0.4 the application of "Accounting Standard for Other costs 21.0 20.5 (0.5) (2.2) Measurement of SG&A expenses less R&D Inventories") 57.2 57.0 (0.2) (0.3) costs R&D costs 38.3 35.7 (2.6) (6.9) ・Efficient spending of R&D costs Operating income 27.5 32.0 4.4 16.1 ・Review of overseas Non-operating income 2.6 1.9 (0.7) development examination contents(lurasidone), Non-operating expenses 1.7 2.1 0.4 influence of Yen's Ordinary income 28.4 31.8 3.4 11.8 appreciation Income before income taxes 28.4 31.8 3.4 11.8 and minority interests Income taxes 11.3 10.6 (0.7) Minority interests in net income 0.0 0.0 (0.0) Net income 17.1 21.2 4.1 23.8 Note: Cost of sales includes provision for (reversal of) reserve for sales returns. 2. Segment Information (Billions of Yen) Nine months ended Nine months ended Year ending 3/31/10 Year ended 3/31/09 12/31/08 12/31/09 (Forecasts) Pharma Other Pharma Other Pharma Other Pharma Other Total Total Total Total ceuticals products ceuticals products ceuticals products ceuticals products Net sales 158.2 43.7 201.9 158.7 45.1 203.8 206.8 57.2 264.0 236.0 59.0 295.0 Operating 26.4 1.2 27.5 29.8 2.2 32.0 29.8 1.3 31.2 income -supplementary3- 3. Sales of Major Products (C): Figures in parentheses [ ] are forecasts released on October 29, 2009. Pharmaceuticals(Domestic) (Billions of Yen) Nine Nine Year ending months Brand name (Generic name) months Change (B)/(C) Year ended 3/31/10 ended ended 3/31/09 (Forecasts) Therapeutic indication 12/31/08 12/31/09 (%) (%) (C) (A) (B) AMLODIN® (amlodipine) Therapeutic agent for hypertension 46.1 41.6 (9.7) 82.4 57.9 [49.5] 50.5 and angina pectoris GASMOTIN® (mosapride citrate) 15.5 16.2 4.2 77.0 20.2 21.0 Gastroprokinetic PRORENAL® (limaprost alfadex) 11.4 12.1 6.0 78.2 14.8 15.5 Vasodilator MEROPEN® (meropenem) 11.5 11.6 0.9 83.7 14.8 13.9 Carbapenem antibiotic EBASTEL® (ebastine) 6.5 6.4 (1.1) 70.6 10.6 9.1 Long-acting Antiallergic LONASEN® (blonanserin) 2.4 4.7 93.6 72.7 3.4 6.5 Antipsychotic agent SUMIFERON® (interferon-α NAMALWA)) 4.7 4.5 (2.9) 75.8 6.0 6.0 Natural alpha interferon GROWJECT® (somatropin) 3.3 3.6 6.7 77.6 4.3 4.6 Growth hormone AmBisome® (amphotericin B) Therapeutic agent for systemic 2.3 3.1 31.4 71.3 3.1 4.3 fungal infection MELBIN® (metformin) 2.5 3.0 17.5 76.8 3.4 3.9 Oral hypoglycemic DOPS® (droxidopa) Noradrenaline-activating neural 3.0 2.8 (4.0) 79.1 3.8 3.6 function ameliorant EXCEGRAN® (zonisamide) 2.8 2.8 1.0 74.4 3.6 3.8 Antiepileptic GLIMICRON® (gliclazide) 2.8 2.6 (8.0) 76.0 3.6 3.4 Oral hypoglycemic AVAPRO® (irbesartan) Therapeutic agent for 1.4 2.4 76.9 61.0 1.5 4.0 hypertension QVARTM (beclomethasone dipropionate) 2.8 2.3 (17.7) 76.1 3.6 3.0 Inhaled steroid antiasthmatic ALMARL® (arotinolol) Therapeutic agent for hypertension, 2.4 2.2 (5.9) 77.0 3.0 2.9 angina pectoris and arrhythmia LULLAN® (perospirone) 2.2 2.0 (9.4) 75.1 2.8 2.7 Antipsychotic SEDIEL® (tandospirone) 2.2 2.0 (6.0) 77.9 2.7 2.6 Serotonin-agonist antianxiety drug TAGAMET® (cimetidine) 2.2 1.9 (12.6) 78.6 2.7 2.4 H2-receptor antagonist TRERIEF® (zonisamide) Therapeutic agent for Parkinson’s - 0.6 - 54.0 - 1.1 disease -supplementary4- Pharmaceuticals(Overseas) (Billions of Yen) Nine Nine Year ending months Generic name months Change (B)/(C) Year ended 3/31/10 ended ended 3/31/09 (Forecasts) Therapeutic indication 12/31/08 12/31/09 (%) (%) (C) (A) (B) meropenem trihydrate 10.7 12.8 18.8 69.0 16.2 [16.5] 18.5 Carbapenem antibiotic mosapride citrate 0.8 0.8 (2.1) 67.7 1.0 1.2 Gastroprokinetic Zonisamide 1.0 0.4 (65.1) 90.1 1.0 0.4 Antiepileptic Note: (B) and (C) include sales of Sumitomo Pharmaceuticals (Suzhou) Co., Ltd., a Chinese subsidiary, which was newly added as a consolidated subsidiary from this fiscal year.
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