Contents:

CHAPTER 1 EXECUTIVE SUMMARY Key findings 2 Historical and forecast ethical sales performance 3 Therapeutic strategy 4 Launch and expiry outlook 7 Externalization, geographic and molecule type strategies 9 Externalization strategy 10 Geographic strategy 11 Molecule type strategy 11 SWOT analysis 12 Strengths 12 Weaknesses 13 Opportunities 14 Threats 14 CHAPTER 2 CORPORATE HISTORY Key findings 19 Background 20 Key corporate developments 20 M&A history 21 Establishment of Aventis CropScience Shionogi K.K. 21 Establishment of Shionogi-GSK Pharmaceuticals LLC 21 Establishment of Boehringer Ingelheim Shionogi Vetmedica Co. 21 Establishment of Shionogi Biomedical Laboratories 21 Industrial chemicals business transferred to DSL. Japan Co., Ltd. 22 Establishment of Shionogi Analysis Center Co. 22 M&A strategy 22 Current corporate structure 23 Ethical pharmaceuticals 23 Consumer health 23 Diagnostics 24 Current management team 24 CHAPTER 3 HISTORICAL PERFORMANCE Key findings 25 Introduction 26 Revenue and growth rate analysis, 2001-06 26 Revenue and growth rate vs. peer set 27 Product analysis, 2001-06 29 Growth drivers 29 Crestor royalties 29 Claritine 30 Oxycontin 30 Imunace 30 Growth resistors 31 Flumarin 31 Vancomycin 31 Flomox 31 Operating revenue and cost analysis, 2001-06 32 Operating revenue/cost analysis 34 CHAPTER 4 FORECAST PERFORMANCE Key findings 35 Introduction 36 Revenue and growth rate, 2006-12 36 Product analysis, 2006-12 37 Growth drivers 42 Finibax 42 Crestor royalties 43 Duloxetine 43 Finibax royalties 44 Growth resistors 44 Vancomycin 44 Flomox 44 Flumarin 45 Imunace 45 Therapy area analysis, 2006-12 47 Growth drivers 49 Cardiovascular and hematology 49 Central nervous system 50 Infectious disease 50 Respiratory 50 Growth resistors 51 Oncology 51 Gastroenterology 51 Musculoskeletal 51 Therapy area focus 52 Launches and expiries analysis, 2006-12 55 Launch portfolio 55 Core portfolio 58 Expiry portfolio 61 Launch/core/expiry configuration 63 Externalization analysis, 2006-12 66 Geographic analysis, 2006-12 71 Molecule type analysis, 2006-12 75 CHAPTER 5 KEY PRODUCTS AND COMPETITORS Key findings 79 Overview 80 Cardiovascular & hematology 81 Crestor royalties 81 Overview 81 Sales forecast 82 Newsflow 83 Competitive landscape 84 Crestor 87 Overview 87 Sales forecast 88 Newsflow 88 Competitive landscape 89 Irbesartan 91 Overview 91 Sales forecast 92 Newsflow 92 Competitive landscape 93 Infectious diseases 94 Flomox 94 Overview 94 Sales forecast 95 Newsflow 95 Competitive landscape 96 Vancomycin 98 Overview 98 Sales forecast 99 Newsflow 99 Competitive landscape 100 Flumarin 102 Overview 102 Sales forecast 103 Newsflow 103 Competitive landscape 104 Finibax 106 Overview 106 Sales forecast 107 Newsflow 107 Competitive landscape 108 Finibax royalties 110 Overview 110 Sales forecast 111 Newsflow 111 Competitive landscape 111 Respiratory 114 Claritine 114 Overview 114 Sales forecast 115 Newsflow 115 Competitive landscape 116 Central nervous system 119 Duloxetine 119 Overview 119 Sales forecast 120 Newsflow 120 Competitive landscape 121 Oncology 123 Imunace 123 Overview 123 Sales forecast 124 Newsflow 124 Competitive landscape 125 R&D pipeline 127 CHAPTER 6 APPENDIX IMS vs. company-reported data reconciliation 129 References 131 Abbreviations 132 Exchange rates 133 List of Tables Table 1: Shionogi Corporate Executive Committee 24 Table 2: Japanese Pharma peer set overview 27 Table 3: Operating revenue/cost analysis ($m), 2001-06 32 Table 4: Operating cost ratio analysis (% of total revenues), 2001-06 34 Table 5: Product portfolio overview, sales ($m), 2006-12 37 Table 6: Therapy area overview, sales ($m), 2006-12 47 Table 7: Launch portfolio overview, sales ($m), 2006-12 55 Table 8: Core portfolio overview, sales ($m), 2006-12 58 Table 9: Expiry portfolio overview, sales ($m), 2006-12 61 Table 10: Externally developed portfolio ($m), 2006-12 66 Table 11: Molecule type overview, sales ($m), 2006-12 75 Table 12: Key products overview 80 Table 13: Crestor royalties: overview 81 Table 14: Crestor royalties: sales forecast ($m), 2006-12 82 Table 15: Crestor royalties: newsflow 83 Table 16: Crestor: overview 87 Table 17: Crestor: sales forecast ($m), 2006-12 88 Table 18: Crestor: newsflow 88 Table 19: Irbesartan: overview 91 Table 20: Irbesartan: sales forecast ($m), 2006-12 92 Table 21: Irbesartan: newsflow 92 Table 22: Flomox: overview 94 Table 23: Flomox: sales forecast ($m), 2006-12 95 Table 24: Flomox: newsflow 95 Table 25: Vancomycin: overview 98 Table 26: Vancomycin: sales forecast ($m), 2006-12 99 Table 27: Vancomycin: newsflow 99 Table 28: Flumarin: overview 102 Table 29: Flumarin: sales forecast ($m), 2006-12 103 Table 30: Flumarin: newsflow 103 Table 31: Finibax: overview 106 Table 32: Finibax: sales forecast ($m), 2006-12 107 Table 33: Finibax: newsflow 107 Table 34: Finibax royalties: overview 110 Table 35: Finibax royalties: sales forecast ($m), 2006-12 111 Table 36: Finibax royalties: newsflow 111 Table 37: Claritine: overview 114 Table 38: Claritine: sales forecast ($m), 2006-12 115 Table 39: Claritine: newsflow 115 Table 40: Duloxetine: overview 119 Table 41: Duloxetine: sales forecast ($m), 2006-12 120 Table 42: Duloxetine: newsflow 120 Table 43: Imunace: overview 123 Table 44: Imunace: sales forecast ($m), 2005-11 124 Table 45: Imunace: newsflow 124 Table 46: Shionogis R&D pipeline (Phase I-registration) 127 Table 47: Shionogis indication broadening pipeline (Phase I-registration) 128 Table 48: Exchange rates, 2006 133 List of Figures Figure 1: Historical and forecast ethical sales performance (% CAGR), Shionogi and Japanese Pharma peer set 3 Figure 2: Therapeutic focus vs. Japanese Pharma peer set (%), 2006 5 Figure 3: Launch, core and expiry, absolute sales growth, 2006-12 (sales as % of 2006 sales), Shionogi 7 Figure 4: Launch, core and expiry, absolute sales growth, 2006-12 (sales as % of 2006 sales), peer set 8 Figure 5: Molecule type, externalization and geographic market dependency (%) vs. peer set, 2006 9 Figure 6: Molecule type, externalization and geographic market dependency (%) vs. peer set, 2012 10 Figure 7: SWOT analysis of Shionogi 12 Figure 8: Shionogi key developments 20 Figure 9: Current corporate structure 23 Figure 10: Revenue & growth rate (ethical sales) ($m), 2001-06 26 Figure 11: Ethical revenue ($m) and growth rate (%) vs. peer set, 2001-06 28 Figure 12: Growth drivers/resistor products of historical revenue performance ($m), 2001-06 29 Figure 13: Operating revenue/cost analysis ($m), 2001-06 33 Figure 14: Operating cost ratio analysis (% of total revenues), 2001-06 34 Figure 15: Ethical revenue ($m) and growth rate (%), 2006-12 36 Figure 16: Top five products by sales ($m), 2006 39 Figure 17: Top five products by sales ($m), 2012 39 Figure 18: Growth drivers and resistors by product, 2006-12 42 Figure 19: Key strategic products, sales ($m), 2006-12 46 Figure 20: Ethical sales by therapy area ($m), 2006-12 48 Figure 21: Growth drivers and resistors by therapy area ($m), 2006-12 49 Figure 22: Ethical sales by therapy area (%), 2006-12 52 Figure 23: Therapy area focus compared with peer set (% total ethical sales), 2006 53 Figure 24: Therapy area focus compared with peer set (% total ethical sales), 2012 53 Figure 25: Launch schedule, sales ($m), 2006-12 57 Figure 26: Core products sales growth ($m), 2006-12 60 Figure 27: Expiry schedule, sales ($m), 2006-12 62 Figure 28: Launch, core and expiry, sales ($m), 2006-12 63 Figure 29: Launch, core and expiry, absolute sales growth, 2006-12 (sales as % of 2006 sales), Shionogi 64 Figure 30: Launch, core and expiry, absolute sales growth, 2006-12 (sales as % of 2006 sales), peer set 65 Figure 31: Externalization dependency, sales ($m), 2006-12 67 Figure 32: Growth drivers and resistors, externally vs. internally discovered products, sales ($m), 2006-12 68 Figure 33: Externalization dependency vs. peer set, % total sales, 2006 69 Figure 34: Externalization dependency vs. peer set, % total sales, 2012 70 Figure 35: Geographical sales breakdown ($m), 2006-12 71 Figure 36: Growth drivers and resistors by geography, sales ($m), 2006-12 72 Figure 37: US dependency vs. peer set, % total sales, 2006 73 Figure 38: US dependency vs. peer set, % total sales, 2012 74 Figure 39: Growth drivers and resistors by molecule type, sales ($m), 2006-12 75 Figure 40: Molecule type sales breakdown ($m), 2006-12 76 Figure 41: Biologics dependency vs. peer set, % total sales, 2006 77 Figure 42: Biologics dependency vs. peer set, % total sales, 2012 78 Figure 43: IMS vs. company-reported ethical sales discrepancy ($m), 2006 130 Figure 44: IMS vs. company-reported ethical sales forecast growth rates (%), 2006-12 131