Chugai achieved record revenues and profits in 2009 as our measures to build the foundation for the next phase of growth under Sunrise 2012, our mid-term business plan, began to yield results. Revenues totaled ¥428.9 billion, up 31.2 percent from the previous year, and operating income totaled ¥82.6 billion, up 60.1 percent.

This performance is attributable to the rapid growth of new products and products approved with additional indications launched over the past several years. These growth drivers, including Avastin® and Herceptin® in oncology and the rheumatoid arthritis drug Actemra® from Chugai research, are penetrating the market as planned and will form the foundation for future earnings.

2009 was a fruitful year in research and development as well. Four projects1 received regulatory approval, including Actemra® in Europe (European product name: RoActemra®) and Avastin® for the additional indication of lung cancer. We filed applications for five projects2, including ED-71 for osteoporosis, and started clinical trials for four new compounds3. We also made steady progress in development in new fields such as diabetes and the central nervous system.

1. RoActemra® (Rheumatoid arthritis: EU), Epogin® (Partial change of API manufacturing method and pharmaceutical formulation), Avastin® (Advanced or recurrent non-small cell lung cancer) and Xeloda® (Advanced or recurrent colorectal cancer)

2. ED-71 (Osteoporosis), Epogin® (Chemotherapy induced anemia), RG744 (Renal anemia), Avastin® (Advanced or recurrent breast cancer) and Tarceva® (Advanced or recurrent pancreatic cancer)

3. Actemra® (Advanced or recurrent pancreatic cancer), RG1450 (Alzheimer's disease), RG3502 (Advanced or recurrent HER2-positive breast cancer) and NTZ (Chronic hepatitis C)

In addition to ongoing government measures to reduce healthcare costs, pharmaceutical companies around the world are facing a host of challenges, including a shortage of new drug candidates, soaring R&D expenses and greater safety demands. Among these challenges, a wave of major patent expirations in and around 2010 is expected to have a substantial impact on the global pharmaceutical industry. To ensure future growth in this highly challenging environment, pharmaceutical majors are concentrating their resources on areas of high growth potential, such as oncology and other therapeutic areas with unmet medical needs, or development of antibodies and other biopharmaceuticals.

Chugai was among the earliest companies to focus on these areas. In Japan, we have been a leader in biopharmaceutical research and development since initiating development of Epogin® and Neutrogin® in the 1980s. Our devotion in biopharmaceuticals resulted in the discovery and development of Actemra®, the first antibody drug originating in Japan, and its successful launch to market as a global product. Chugai has also built a rich oncology-centered product portfolio through our alliance with Roche. Today, we are well ahead of our competitors in terms of biotechnological capabilities and development resources, with our share of the domestic market for antibody drugs over 40 percent. On the earnings side, we have shifted our source of revenues to growing innovative drugs from longlived products, and are equipped with a development portfolio that will underpin growth in the years ahead.

We are aiming to achieve the Sunrise 2012 targets of ¥460 billion in consolidated revenues and ¥80 billion in operating income. The plan calls for establishing a firm foundation of major products such as Actemra® and Avastin® in addition to our existing base of mainstay products such as Epogin® and Neutrogin®. These new products have been launched on schedule and have achieved solid market positions, making an impressive contribution to our earnings. Going forward, we aim to achieve a stellar growth rate in Japan by strengthening this foundation to steadily generate earnings. At the same time, we will raise efficiency in all departments to ensure that we have the resources necessary to achieve the market penetration of new products.

Achieving the objectives of Sunrise 2012 is a waypoint toward our goal of becoming Japan's top pharmaceutical company in the second half of this decade. I believe that a top pharmaceutical company is one in which all employees share an awareness and sense of responsibility befitting a leading enterprise and work proactively with a global perspective. It is an enterprise that fully satisfies its stakeholders and in turn is rewarded with their active support and trust.

As we move toward becoming Japan's top pharmaceutical company, we will raise the quality of all business activities. I believe that is the best way to increase corporate value and meet the expectations of shareholders and other stakeholders. We are building a broad foundation to accomplish the objectives of Sunrise 2012 and ultimately to realize our vision of becoming Japan's top pharmaceutical company. The path will not be easy, but with the commitment and effort of all our employees, I am confident that we will reach our goal. I would like to thank you all for your ongoing support.