Chugai to Dissolve and Liquidate Subsidiary in Shanghai

May 12, 2005

Chugai Pharmaceutical announced that it has decided to dissolve and liquidate its Shanghai-based wholly owned subsidiary Shanghai Chugai Pharma by the end of October. The company has concluded that it will not be able to recoup investment in a site it acquired for the manufacture of Granocyte, an agent for neutropenia, due to intensified price and share competitions and changes in the market environment.

Japan Corporate News Network (http://www.japancorp.net/Article.Asp?Art_ID=10014)