Regarding the case brought by Eisai Co., Ltd. (Headquarters: Tokyo), against Sawai Pharmaceutical Co., Ltd. (Headquarters: Osaka), before the Tokyo District Court as of March 24, 2005, the court announced today, January 31, 2006, that the claim made by Eisai has been rejected. Eisai had alleged that the colors of the PTP sheet and capsule of Sawai's "Seftac(R) capsule 50"-a generic gastritis/gastric ulcer medication based on an Eisai product-are similar to those of the original Eisai product, possibly causing confusion in clinical usage.

In this trial, it was determined that the colors of PTP sheets and capsules do not fall into "the indication for goods or business" of the Unfair Competition Prevention Law, and that therefore this case did not qualify as "unfair competition" under the same Law for the following reasons: (1) the colors of the original product do not have any novelty or specificity; (2) the difference in trade name weakens the connection of the colors with the product; (3) it cannot be said that the colors play a key role in identifying the products; and (4) it cannot be said that doctors and pharmacists rely on the colors to identify the products.

Comment by Sawai Pharmaceutical
It is now a national policy to facilitate the use of generic drugs, and there is growing application of such drugs even in medical institutions. However, the type of case brought by Eisai can be seen as contrary to the national policy and may arouse concerns in medical institutions about the stable supply of such drugs. We expect new-drug manufacturers to act sensibly in light of improving medicine overall.