Japan, which boasts the world's highest longevity rate, is experiencing major increases in medical costs that are causing the National Health Insurance system to buckle under the burden.

Chemiphar sees its role in society as a provider of pharmaceuticals and healthcare services to help people become and remain healthy. Reflecting its mission, the Company is working to meet medical needs where satisfactory treatments have not yet been established; provide a stable supply of high-quality products; and ensure provision of information regarding the efficacy and safety of medicines. These goals are echoed by the Company's three pillars of business.

1. Generics business
To lower the burden of medical costs for both patients and the government, Chemiphar is providing quality generic pharmaceuticals at affordable prices.
Following changes in standardized drug prescription forms that make it easy for pharmacists and patients to opt for generics, the right to choose in drug selection has been gradually shifting.

2. Branded pharmaceuticals business
Chemiphar is providing patients with effective, safe ethical pharmaceuticals through hospitals and pharmacies.

3. Consumer health products business
To promote the development of healthcare, Chemiphar provides a variety of supplements.

Of its three pillars, the pharmaceuticals business represents Chemiphar's core enterprise, with which it seeks to accomplish the following two goals.

Boost its presence in the generic-drug market, focusing on the hospital sector
Chemiphar provides affordable, quality, safe and efficacious generics and adequate product information-that includes proper product use, drug efficacy, and safety information about any side effects.

Strengthen position of Uralyt in the hyperuricemia* market
Since hyperuricemia has been recognized as a life-style disease, Chemiphar is doing its best to increase social awareness concerning the importance of early treatment, in the belief that one of our social responsibilities is to help reduce patients' medical costs.

Kazushiro Yamaguchi
President&CEO

• * Hyperuricemia is a clinical condition in which the uric acid level in 1 deciliter of blood serum is over 7.0 milligrams. Without treatment, it may lead to gout, which causes severe pain, usually in the toe. In addition, hyperuricemia may lead to kidney impairment, urinary calculus as well as hardened arteries?a condition related to cardiac infarction and stroke.