The extent of the damage from the earthquake to NIPPON KAYAKU Group was reported on March 14(in Japanese). A report on matters that have since come to light and the future situation is described below.

1. Safety of our employees

As in the March 14 report, the safety of all employees of the NIPPON KAYAKU Group has been confirmed.

2. Afflicted facility

Kashima Plant (Kamisu-shi, Ibaraki / Mainly production of agrochemicals)

3. Condition of the above afflicted facility

No abnormalities were found with the building at the Kashima Plant. However, production has been suspended due to blackouts. The production facility is undergoing inspections and maintenance work, and efforts are being made to restart production soon. The shipment of products has already resumed.

4. Planned rolling blackouts

The Takasaki Plant (Takasaki-shi, Gunma / Mainly production of pharmaceuticals) is inside the area that is subject to planned rolling blackouts. The planned blackouts meant that faults were found in products under cultivation, with some being disposed of. However, NIPPON KAYAKU is committed to production to ensure the stable supply, in particular, of important anticancer drugs, and has come up with schemes such as changing the production schedule and working shifts at the plant. With the implementation of planned blackouts for premises under the jurisdiction of the Tokyo Electric Power Company Inc. and an expansion of the areas subject to blackouts, NIPPON KAYAKU will make a further announcement if a significant impact on business is expected.

5. Impact on business results

The earthquake’s impact on the consolidated business results of the company is unclear at this time. We will make an announcement immediately should a significant impact on business results become likely.

(This document is an English translation of the Japanese language original.)

Nippon Kayaku Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo, Japan; President: Koichiro Shimada) concluded the agreement on apaziquone (generic name) for non-muscle invasive bladder cancer (superficial bladder carcinoma and carcinoma in situ of bladder) with Spectrum Pharmaceuticals, Inc. (Irvine, California, USA; CEO: Rajesh C. Shrotriya) which is a commercial-stage biotechnology company with a primary focus in oncology on November 6, 2009. Nippon Kayaku received the exclusive rights to develop and commercialize apaziquone in Asia except South Korea.

Apaziquone is an anti-cancer agent that becomes activated by reductase enzymes found in cancer cells, and is specialized in the use of non-muscle invasive bladder cancer. The Phase 2 data held in the US has confirmed anti-tumor activity in patients with multiple, recurrent non-muscle invasive bladder cancer, showing 67% of a complete response after receiving six weekly treatments with 4 mg of apaziquone instilled into the urinary bladder. According to the apaziquone registration plan, which the U.S. Food and Drug Administration (FDA) concurred with under a Special Protocol Assessment, Spectrum and Allergan, Inc. (Irvine, California, USA, Chairman and CEO: David E.I. Pyott) are conducting the Phase 3 clinical studies and planning to complete the enrollment by year-end 2009. The FDA has also granted Fast Track Designation for the investigation of apaziquone for the treatment of non-muscle invasive bladder cancer. Next year Nippon Kayaku starts clinical development in Japan.

Now Nippon Kayaku sells 24 anti-cancer agents and 6 cancer supportive products, and is building a business platform focused on oncology area. Especially, as Nippon Kayaku has several products in urological cancer field, it is aiming at the enhancement of lineup by apaziquone and expects to contribute to the improvement of cancer therapy and happiness of patients, the families and the medical experts by marketing this medicine early.

【Summary of reference materials - Spectrum Pharmaceuticals, Inc.】

Company name	Spectrum Pharmaceuticals, Inc.
Location	Irvine, California, USA
Listed stock	NASDAQ（SPPI）
Business contents	The biotechnology company focused on development of medical products in oncology and urology. The Company has been already selling radioactive antibody (Zevalin) for malignant lymphoma and folate metabolism antagonist (Fusilev) for osteosarcoma.

Reference link

Spectrum Pharmaceuticals, Inc.

Sanofi-aventis K.K. (hereinafter: "sanofi-aventis"; Headquarters: Shinjuku, Tokyo; President: Patrick Chocat) and Nippon Kayaku Co., Ltd. (hereinafter: "Nippon Kayaku"; Headquarters: Chiyoda-ku, Tokyo; President: Koichiro Shimada) announced today that both companies agreed to transfer the marketing rights from Nippon Kayaku to sanofi-aventis on November 30, 2009 for the antineoplastic agent "ImmuCyst^® 81mg" [generic name: Freeze-dried Bacillus of Calmette and Guerin (BCG) for Intrvesical Use (Connaught strain)] for which Nippon Kayaku has the marketing approval in Japan. As a result, sanofi-aventis will become the sole marketer of this drug from December 1, 2009.

ImmuCyst^® is an antineoplastic agent with the Connaught strain of Bacillus Calmette-Guerin (BCG) as the active ingredient, developed by Connaught Laboratories in Canada (now Sanofi Pasteur, the vaccine division of the sanofi-aventis Group). In Japan, Nippon Kayaku obtained its marketing approval for treating superficial bladder cancer and carcinoma in situ (CIS) in October 2002. Out side of Japan, the drug is approved 52 countries around the world primarily for preventing the recurrence of superficial bladder cancer following transurethral resection, and for treating/preventing the recurrence of CIS.