6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

450, 5th Street

Washington, D.C. 20549

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of July, 2006

Daiichi Sankyo Company, Limited

(Translation of registrant’s name into English)

5-1, Nihonbashi 3-chome

Chuo-ku, Tokyo 103-8426

Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  þ            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes  ¨            No  þ

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes  ¨            No  þ

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ¨            No  þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	DAIICHI SANKYO COMPANY, LIMITED
DATE: July 31, 2006	By:	/s/ Takashi Shoda
	Name:	Takashi Shoda
	Title:	President and Representative Director

EXHIBIT INDEX

Exhibit Number		Description of Exhibit
99.1	—	Consolidated Financial Results for the First Three Months of Fiscal 2006 (Three-Month Period Ended June 30, 2006)
99.2	—	Reference Data (1Q of FY2006) – July 31, 2006

EX-99.1

Exhibit 99.1

July 31, 2006

Consolidated Financial Results

for the First Three Months of Fiscal 2006

(Three-Month Period Ended June 30, 2006)

Listed company name: DAIICHI SANKYO COMPANY, LIMITED

Stock code number: 4568

Listed exchanges: Tokyo, Osaka, and Nagoya

Head office: Tokyo, Japan

URL: http://www.daiichisankyo.co.jp

Representative: Mr. Takashi Shoda, President and Representative Director

Contact: Mr. Toshio Takahashi, Corporate Officer, General Manager of Corporate Communications Department

Telephone: +81-3-6225-1126

1. Matters Relating to the Preparation of the Quarterly Consolidated Financial Statements

(1)    Adoption of simplified accounting methods:	Yes
“Income taxes” were calculated using a simplified method.
(2)    Accounting methods differing from those adopted for the latest fiscal year:	None
(3)    Changes in the scope of consolidation and application of the equity method:	Yes

Consolidated subsidiaries:

Increase: 3

Decrease: 6

Companies accounted for by the equity method:

Increase: 0

Decrease: 0

2. Consolidated Financial Results for the First Three Months of Fiscal 2006

    (from April 1, 2006 to June 30, 2006)

(1) Consolidated Financial Results

(Figures less than ¥1 million, except per share amounts, have been omitted.)

	Net sales		Operating income		Ordinary income
	Millions of yen	Percent change	Millions of yen	Percent change	Millions of yen	Percent change
First three months of fiscal 2006	270,549	—	60,792	—	67,842	—
First three months of fiscal 2005	—	—	—	—	—	—
Fiscal 2005	925,918	—	154,728	—	159,714	—
	Net income		Basic net income per share		Diluted net income per share
	Millions of yen	Percent change	Yen		Yen
First three months of fiscal 2006	48,001	—	65.84		—
First three months of fiscal 2005	—	—	—		—
Fiscal 2005	87,692	—	119.49		119.47

Note:

Percentages for net sales, operating income, ordinary income, and net income represent a change from the corresponding results for the first three months of the previous fiscal year.

1

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen	%	Yen
First three months of fiscal 2006	1,602,426	1,260,783	78.5	1,724.53
First three months of fiscal 2005	—	—	—	—
Fiscal 2005	1,596,126	1,237,529	77.5	1,696.97

Note: Net assets for fiscal 2005 do not include minority interests.

3. Forecast of Consolidated Results for Fiscal Year 2006 (from April 1, 2006 to March 31, 2007)

	Net sales	Ordinary income	Net income
	Millions of yen	Millions of yen	Millions of yen
Interim six-month period	480,000	72,000	46,000
Full year	875,000	127,000	55,000

Reference: Forecasted annual net income per share (basic): ¥75.44

*Note:

The forecast figures shown above are based on information that was available at the time of preparation and are subject to certain risks and uncertainties. Actual performance and other factors may differ from these forecasts due to changes in circumstances and other developments. For more information related to above forecasts, please refer to page 4.

2

Overview of Results of Operations

The Company is a joint holding company established on September 28, 2005 through the joint stock transfer implemented by Sankyo Company, Limited and Daiichi Pharmaceutical Co., Ltd. Accordingly, as the Company did not prepare consolidated financial statements for the first quarter of fiscal 2005, year-on-year performance comparisons are not presented.

In the current fiscal year, U.S. subsidiaries, DAIICHI SANKYO INC. and Luitpold Pharmaceuticals, Inc., changed the end of their accounting term from December to March. Accordingly, consolidated financial statements for the three-month period under review include the two companies’ profits and losses for the six-month period ended June 30, 2006. This change increased net sales by ¥31.5 billion, operating income by ¥9.0 billion, ordinary income by ¥10.5 billion and net income by ¥5.8 billion.

Consolidated net sales for the three-month period under review totaled ¥270.5 billion, of which the pharmaceutical business accounted for ¥247.5 billion. Market environment for the prescription drug business in Japan (which generated sales of ¥117.1 billion) was harsh with a downward revision in the National Health Insurance (NHI) drug reimbursement tariff implemented in April 2006 by an average of 6.7%. Reflecting such a harsh business environment, sales decreased for the mainstay product Mevalotin^®, an antihyperlipidemic agent, and Cravit^®, a broad-spectrum oral antibacterial agent, but sales of the antihypertensive agent Olmetec^® increased. Sales revenue was also increased by a receipt of the milestone payments relating to sales of the antiplatelet agent Plavix^®, whose marketing rights were transferred to Sanofi-Aventis S.A. Urief^®, an agent for treating dysuria, and Loxonin^® Pap, a percutaneous absorption-type analgesic and anti-inflammatory preparation, both launched in May 2006, also contributed to boosting sales. In November 2005 Sankyo and Daiichi Pharmaceutical launched a joint promotional activities for Olmetec^® and began such activities in April 2006 with respect to Cravit^® as well. Through these efforts, we are striving to realize synergy from the integration of two companies quickly. In the overseas prescription drug business (which had sales of ¥110.3 billion), sales of the antihyperlipidemic agent bulk pravastatin declined in the U.S. affected by the expiration of the patent. Meanwhile, sales of the antibacterial agent bulk levofloxacin were robust, and sales of the antihypertensive agents olmesartan, which is sold under the brand name of Olmetec^® in Europe and as Benicar^® in North America, rose sharply. With respect to the healthcare business (with sales of ¥11.2 billion), DAIICHI SANKYO HEALTHCARE CO., LTD., which was established by combining the healthcare business of Sankyo and Daiichi Pharmaceutical, began operations in April 2006, and we turned Zepharma Inc. into a consolidated subsidiary in April 2006 by acquiring 100% of its stocks. With these moves, we took a new step toward further expanding this business.

Other businesses posted sales of ¥22.9 billion. To concentrate its management resources on the pharmaceutical business, the Company is promoting measures to make the non-pharmaceutical businesses separate from the Group. As part of such efforts, we excluded two food-manufacturing companies Wakodo Co., Ltd and Fuji Flour Milling Co., Ltd. from our group through such method as sale of stocks in April 2006.

Cost of sales amounted to ¥73.5 billion (27.2% of net sales), and selling, general and administrative expenses totaled ¥136.1 billion (including ¥37.9 billion in R&D expenses). Operating income was ¥60.7 billion and ordinary income came to ¥67.8 billion.

As a result of booking gains on sales of a subsidiary, etc. as extraordinary gains, net income was ¥48.0 billion.

3

Overview of Financial Position

At the end of the period under review, total assets stood at ¥1,602.4 billion (up ¥6.3 billion from the previous year-end), net assets registered ¥1,260.7 billion (up ¥11.6 billion) and equity ratio was 78.5% (up 1.0 percentage point).

Forecast of Consolidated Results for Fiscal 2006

Business performance remained steady in the three-month period under review. For the first six months ending September 30, 2006, we expected net sales to reach ¥480.0 billion, a ¥10.0 billion increase from our previous forecast. The upward revision is attributable to the ongoing strong sales of the antihypertensive agent Olmetec^® in Japan and better-than-expected sales of Venofer^®, an agent for treating anemia, at overseas subsidiary Luitpold Pharmaceuticals, Inc.

Gross profit for the half year will likely increase with a rise in net sales, and selling, general and administration expenses are projected to decrease owing to more efficient use of costs. Accordingly, we expect ordinary income to be ¥72.0 billion, up ¥12.0 billion from the previous forecast, and net income to be ¥46.0 billion, up ¥8.0 billion.

For the full fiscal year ending March 31, 2007, we expect net sales, ordinary income and net income will each increase by the amounts newly forecast for the half year, given that the business environment is likely to remain harsh in the latter half.

4

4. Consolidated Financial Statements

(1) Consolidated Balance Sheets

(Millions of yen)

	Fiscal 2005 (as of March 31, 2006)			First three months of fiscal 2006 (as of June 30, 2006)			Change
	Amount		%	Amount		%	Amount
ASSETS
I Current assets:
1. Cash and time deposits	223,979			210,488
2. Trade notes and accounts receivable	240,173			244,732
3. Marketable securities	274,510			284,163
4. Mortgage-backed securities	16,500			15,000
5. Inventories	121,694			118,144
6. Deferred tax assets	40,911			48,288
7. Other current assets	41,313			38,834
Allowance for doubtful accounts	(599	)		(580	)
Total current assets	958,483		60.1	959,070		59.9	587
II Non-current assets:
1. Property, plant and equipment:
(1) Buildings and structures	164,047			157,243
(2) Machinery, equipment and vehicles	47,888			45,586
(3) Land	48,892			46,812
(4) Construction in progress	10,010			10,502
(5) Other	18,874			18,925
Total property, plant and equipment, net	289,712		18.1	279,069		17.4	(10,643	)
2. Intangible assets:
(1) Goodwill, net	9,788			23,453
(2) Other intangible assets, net	26,378			35,481
Total intangible assets	36,166		2.3	58,935		3.7	22,769
3. Investments and other assets:
(1) Investment securities	256,338			253,781
(2) Long-term loans	6,154			5,670
(3) Prepaid pension costs	17,307			17,086
(4) Deferred tax assets	7,403			7,292
(5) Other assets	25,090			22,014
Allowance for doubtful accounts	(529	)		(494	)
Total investments and other assets	311,763		19.5	305,350		19.0	(6,413	)
Total non-current assets	637,643		39.9	643,356		40.1	5,712
Total assets	1,596,126		100.0	1,602,426		100.0	6,300

5

(Millions of yen)

	Fiscal 2005 (as of March 31, 2006)				First three months of fiscal 2006 (as of June 30, 2006)		Change
	Amount		%		Amount	%	Amount
LIABILITIES
I Current liabilities:
1. Trade notes and accounts payable	65,596				57,615
2. Short-term bank loans	13,547				7,262
3. Income taxes payable	26,169				32,388
4. Deferred tax liabilities	31				373
5. Allowance for sales returns	657				1,016
6. Allowance for sales rebates	2,204				2,650
7. Allowance for contingent losses	3,379				3,332
8. Other current liabilities	125,246				130,749
Total current liabilities	236,833		14.9		235,389	14.7	(1,443	)
II Non-current liabilities:
1. Long-term debt	3,374				1,824
2. Deferred tax liabilities	23,926				25,897
3. Accrued retirement and severance benefits	68,321				65,946
4. Accrued directors’ retirement and severance benefits	3,140				2,680
5. Accrued soil remediation costs	2,850				2,850
6. Other non-current liabilities	8,540				7,054
Total non-current liabilities	110,154		6.9		106,254	6.6	(3,900	)
Total liabilities	346,987		21.8		341,643	21.3	(5,344	)
MINORITY INTERESTS
Minority interests	11,609		0.7		—
SHAREHOLDERS’ EQUITY
I        Common stock	50,000		3.1		—
II      Additional paid-in-capital	179,858		11.3		—
III     Retained earnings	936,513		58.7		—
IV    Net unrealized gain on investment securities	80,254		5.0		—
V      Foreign currency translation adjustments	735		0.0		—
VI    Treasury stock at cost	(9,832	)	(0.6	)	—
Total shareholders’ equity	1,237,529		77.5		—
Total liabilities, minority interests and shareholders’ equity	1,596,126		100.0		—

6

(Millions of yen)

	Fiscal 2005 (as of March 31, 2006)		First three months of fiscal 2006 (as of June 30, 2006)			Change
	Amount	%	Amount		%	Amount
NET ASSETS
I        Shareholders’ equity
1. Common stock	—		50,000
2. Additional paid-in-capital	—		179,858
3. Retained earnings	—		962,938
4. Treasury stock	—		(9,858	)
Total shareholders’ equity	—		1,182,938		73.8
II      Valuation and translation adjustments, etc.
1. Net unrealized gain on investment securities	—		75,209
2. Foreign currency translation adjustments	—		(890	)
Total valuation and translation adjustments, etc.	—		74,319		4.7
III     Minority interests	—		3,525		0.2
Total net assets	—		1,260,783		78.7
Total liabilities and net assets	—		1,602,426		100.0

7

(2) Consolidated Statement of Income

(Millions of yen)

	First three months of fiscal 2006 (from April 1, 2006 to June 30, 2006)				Fiscal 2005 (from April 1, 2005 to March 31, 2006)
	Amount		%		Amount	%
I        Net sales	270,549		100.0		925,918	100.0
II      Cost of sales	73,589		27.2		290,735	31.4
Gross profit	196,960		72.8		635,182	68.6
III     Selling, general and administrative expenses	136,167		50.3		480,454	51.9
Operating income	60,792		22.5		154,728	16.7
IV    Non-operating income	8,326		3.1		10,951	1.2
V      Non-operating expenses	1,275		0.5		5,964	0.7
Ordinary income	67,842		25.1		159,714	17.2
VI    Extraordinary gains	21,394		7.9		6,890	0.8
VII   Extraordinary losses	5,482		2.0		29,712	3.2
Net income before income taxes	83,755		31.0		136,892	14.8
Income tax expenses	35,833		13.3		49,196	5.3
Minority interests in net losses of subsidiaries	(79	)	(0.0	)	3	0.0
Net income	48,001		17.7		87,692	9.5

8

(3) Segment Information

[Operating Segments]

(Millions of yen)

First three months of fiscal 2006 (from April 1, 2006 to June 30, 2006)	Pharmaceuticals	Other	Total	Eliminations & corporate		Consolidated
Net sales
(1) External sales	247,567	22,982	270,549	—		270,549
(2) Inter-segment sales and transfers	120	1,020	1,141	(1,141	)	—
Total	247,687	24,003	271,690	(1,141	)	270,549
Operating expenses	188,277	22,735	211,012	(1,255	)	209,757
Operating income	59,410	1,267	60,677	114		60,792

Notes:

1. Method of classifying operating segments

Classification into ‘Pharmaceuticals’ and ‘Other’ is based on consideration of product type, market characteristics, and other factors.

2. Principal products in each operating segment

Pharmaceuticals: Prescription drugs and healthcare products

Other: Agrochemicals, chemicals, and other

(Millions of yen)

Fiscal 2005 (from April 1, 2005 to March 31, 2006)	Pharmaceuticals	Other	Total	Eliminations & corporate		Consolidated
Net sales
(1) External sales	784,666	141,251	925,918	—		925,918
(2) Inter-segment sales and transfers	790	4,024	4,814	(4,814	)	—
Total	785,457	145,275	930,733	(4,814	)	925,918
Operating expenses	637,342	139,129	776,472	(5,282	)	771,190
Operating income	148,114	6,146	154,260	467		154,728

Notes:

1. Method of classifying operating segments

Classification into ‘Pharmaceuticals’ and ‘Other’ is based on consideration of product type, market characteristics, and other factors.

2. Principal products in each operating segment

Pharmaceuticals: Prescription drugs and healthcare products

Other: Food Products, agrochemicals, chemicals, and other

[Geographic Segments]

(Millions of yen)

First three months of fiscal 2006 (from April 1, 2006 to June 30, 2006)	Japan	North America	Other	Total	Eliminations & corporate		Consolidated
Net sales
(1) External sales	179,214	71,068	20,266	270,549	—		270,549
(2) Inter-segment sales and transfers	24,082	6,157	2,021	32,261	(32,261	)	—
Total	203,297	77,225	22,288	302,811	(32,261	)	270,549
Operating expenses	152,240	53,743	17,338	223,322	(13,565	)	209,757
Operating income	51,057	23,481	4,949	79,488	(18,696	)	60,792

Notes:

1. Method of classifying geographic segments

Geographic segments are classified on the basis of geographic proximity.

2. Countries and regions included in segments other than Japan

North America: the United States

Other: Germany, the United Kingdom, France, Spain, Italy, Taiwan, and others

9

(Millions of yen)

Fiscal 2005 (from April 1, 2005 to March 31, 2006)	Japan	North America	Other	Total	Eliminations & corporate		Consolidated
Net sales
(1) External sales	752,793	116,061	57,063	925,918	—		925,918
(2) Inter-segment sales and transfers	21,553	18,212	5,805	45,572	(45,572	)	—
Total	774,347	134,274	62,869	971,490	(45,572	)	925,918
Operating expenses	644,098	108,816	62,690	815,605	(44,414	)	771,190
Operating income	130,249	25,457	178	155,885	(1,157	)	154,728

Notes:

1. Method of classifying geographic segments

Geographic segments are classified on the basis of geographic proximity.

2. Countries and regions included in segments other than Japan

North America: the United States

Other: Germany, the United Kingdom, France, Spain, Italy, Taiwan, and others

[Overseas Net Sales]

(Millions of yen)

First three months of fiscal 2006 (from April 1, 2006 to June 30, 2006)	North America	Europe	Other areas	Total
I   Overseas net sales	80,155	27,554	7,369	115,079
II  Consolidated net sales				270,549
III Percentage of overseas net sales to consolidated net sales (%)	29.6	10.2	2.7	42.5

Notes:

1. Method of classifying countries and regions

Countries and regions are classified on the basis of geographic proximity.

2. Countries and regions included in each area

North America: the United States and Canada

Europe: Germany, the United Kingdom, France, Spain, Italy, Ireland, Switzerland, and others

Other areas: Asia, the Middle East, Latin America, and others

3. Overseas net sales are sales of the Company and its consolidated subsidiaries which are transacted in countries or regions outside of Japan.

(Millions of yen)

Fiscal 2005 (from April 1, 2005 to March 31, 2006)	North America	Europe	Other areas	Total
I   Overseas net sales	182,614	98,440	26,210	307,265
II  Consolidated net sales				925,918
III Percentage of overseas net sales to consolidated net sales (%)	19.7	10.6	2.9	33.2

Notes:

1. Method of classifying countries and regions

Countries and regions are classified on the basis of geographic proximity.

2. Countries and regions included in each area

North America: the United States and Canada

Europe: Germany, the United Kingdom, France, Spain, Italy, Ireland, Switzerland, and others

Other areas: Asia, the Middle East, Latin America, and others

3. Overseas net sales are sales of the Company and its consolidated subsidiaries which are transacted in countries or regions outside of Japan.

10

EX-99.2

Exhibit 99.2

Reference Data

(1Q of FY2006) - July 31, 2006

1	Summary of Financial Statement	1
2	Status in R&D Pipeline	1
3	Main Prescription drug sales	2
4	Consolidated sales of Global Products	3
5	OTC drug sales	3
6	Consolidated Segment information-Business	4
7	Consolidated Segment information-Area	4
	Segment Information (Reference)	5

DAIICHISANKYO CO., LTD.

http://www.daiichisankyo.co.jp/

1. Summary of Financial Statement

million yen

	FY2005								FY2006
	1Q*		progress (%)		1st half		Full year		1Q		progress (%)		1st half Estimate issued in May		1st half Estimate		Difference from Estimate in May		Full year Estimate issued in May		Full year Estimate
Change					<0.6>		<1.0>		<17.0>				<4.0>		<6.2>				<-6.6>		<-5.5>
Net sales	231,148		51.2	%	451,808		925,918		270,549		57.6	%	470,000		480,000		10,000		865,000		875,000
Cost of sales	72,511		51.3	%	141,296		290,735		73,589		55.2	%	133,400		136,800		3,400		234,200		237,600
Cost of sales ratio	31.4	%			31.3	%	31.4	%	27.2	%			28.4	%	28.5	%	—		27.1	%	27.2	%
Selling, general and administrative expenses	110,986		48.2	%	230,166		480,454		136,167		48.4	%	281,600		278,200		(3,400	)	522,800		519,400
SG&A ratio	48.0	%			50.9	%	51.9	%	50.3	%			59.9	%	58.0	%	—		60.4	%	59.4	%
Research and development expenses	35,333		48.7	%	72,528		158,716		37,933		43.6	%	87,000		87,000		0		167,000		167,000
R&D ratio	15.3	%			16.1	%	17.1	%	14.0	%			18.5	%	18.1	%	—		19.3	%	19.1	%
Change					<8.3>		<9.7>		<27.6>				<-31.5>		<-19.1>				<-30.2>		<-23.7>
Operating income	47,650		59.3	%	80,345		154,728		60,792		110.5	%	55,000		65,000		10,000		108,000		118,000
/ Net sales	20.6	%			17.8	%	16.7	%	22.5	%			11.7	%	13.5	%	—		12.5	%	13.5	%
Change					<8.4>		<14.2>		<35.8>				<-27.4>		<-12.9>				<-28.0>		<-20.5>
Ordinary income	49,952		60.4	%	82,642		159,714		67,842		113.1	%	60,000		72,000		12,000		115,000		127,000
/ Net sales	21.6	%			18.3	%	17.2	%	25.1	%			12.8	%	15.0	%	—		13.3	%	14.5	%
Change					<1.5>		<2.6>		<51.7>				<-23.2>		<-7.0>				<-46.4>		<-37.3>
Net income	31,642		64.0	%	49,450		87,692		48,001		126.3	%	38,000		46,000		8,000		47,000		55,000
/ Net sales	13.7	%			10.9	%	9.5	%	17.7	%			8.1	%	9.6	%			5.4	%	6.3	%

* The amounts for the first quarter of fiscal 2005 are simple totals of the figures of the Sankyo Group and the Daiichi Pharmaceutical Group.

• The accounting period of DAIICHI SANKYO INC. (DSI) and Luitpold Pharmaceuticals Inc. (LPI), both of which are overseas subsidiaries of the DAIICHI SANKYO Group, is 15 months from January 2006 to March 2007. This is due to an adjustment made to the accounting period. Therefore, for these two companies, the accounting period for the first quarter is from January to June 2006.

• For the first half of fiscal 2006, an earnings forecast was made equaling half of the annual sales/profit for non-pharmaceutical operations operating as independent businesses outside of the DAIICHI SANKYO Group.

• In fiscal 2006, Zepharma Inc., Taiwan Sankyo Ltd. And Shanghai Sankyo Pharmaceuticals Ltd., were made consolidated subsidiaries of DAIICHI SANKYO CO., LTD. In the case of the share acquisition of Zepharma Inc., intangible assets and goodwill be amortized over a period of 10 years.

2. Status in R&D Pipeline (Change from the announcement of May 2006)

Development Stage

Development Code Number	Before Change	After Change	Remarks
DZ-697b	Japan:P-1 preparation	Japan:P-1	anti-platelet agent
CS-866AZ	Japan:P-2	Japan:P-3	antihypertensive drug (olmesartan/azelnidipine combination)
CS-3030	US/EU:P-1 preparation	US/EU:P-1	oral factor Xa inhibitor
CS-1008	US/EU:P-1 preparation	US/EU:P-1	anti-cancer drug(anti-DR5 antibody)

1

3. Main Prescription drug sales

million yen

	FY2006
	1Q		Change		Progress		1st half Estimate issued in May		Change		1st half Estimate		Change		Full year Estimate issued in May		Change		Full year Estimate
Japan
Cardiovascular
Mevalotin	17,800		-10.5	%	51.7	%	34,500		-10.4	%	33,500		(1,000	)	68,200		-9.3	%	67,200
Panaldine	7,200		-11.2	%	67.9	%	10,600		-27.9	%	10,600		±0.0		19,700		-30.4	%	19,700
Artist	5,200		5.0	%	56.5	%	9,200		1.1	%	9,200		±0.0		18,800		3.3	%	18,800
Sunrythm	3,200		-3.5	%	57.1	%	5,600		-6.7	%	5,600		±0.0		11,300		-5.0	%	11,300
Acecol	2,200		-12.4	%	61.1	%	3,600		-25.0	%	3,600		±0.0		7,300		-19.8	%	7,300
Olmetec	9,800		102.4	%	58.6	%	16,800		68.0	%	19,300		2,500		35,400		38.3	%	37,900
Coversyl	1,900		-22.3	%	52.8	%	3,600		-20.0	%	3,600		±0.0		7,100		-15.5	%	7,100
Hanp	2,400		10.9	%	60.0	%	4,000		2.6	%	4,000		±0.0		9,200		7.0	%	9,200
Calblock	2,100		55.0	%	48.8	%	4,300		43.3	%	4,300		±0.0		9,200		43.8	%	9,200
Livalo	1,200		20.7	%	48.0	%	2,500		25.0	%	2,500		±0.0		5,600		36.6	%	5,600
Glucose metabolic
Fastic	1,400		-0.1	%	50.0	%	2,800		3.7	%	2,800		±0.0		5,700		7.5	%	5,700
Infection
Cravit	11,600		-13.2	%	53.0	%	21,900		-7.2	%	21,900		±0.0		47,600		-5.2	%	47,600
Carbenin	1,500		-22.3	%	45.5	%	3,300		-2.9	%	3,300		±0.0		6,400		1.6	%	6,400
Banan	1,100		1.6	%	52.4	%	2,100		5.0	%	2,100		±0.0		4,200		-4.5	%	4,200
Cancer
Topotecin	1,300		3.2	%	49.1	%	2,650		6.0	%	2,650		±0.0		5,550		15.6	%	5,550
Immunological allergic
Zyrtec	2,900		-16.7	%	56.3	%	5,150		-8.0	%	5,150		±0.0		11,250		-10.7	%	11,250
Bone/Joint
Loxonin	8,000		6.9	%	56.7	%	14,100		-1.4	%	14,100		±0.0		28,500		-1.7	%	28,500
Mobic	2,900		-0.9	%	52.7	%	5,500		1.9	%	5,500		±0.0		11,100		4.7	%	11,100
Miltax	1,400		-9.2	%	48.3	%	2,900		-6.5	%	2,900		±0.0		5,500		-8.3	%	5,500
Others
Omnipaque	8,400		-12.2	%	54.2	%	15,500		-13.9	%	15,500		±0.0		29,600		-14.7	%	29,600
Kremezin	3,100		-7.3	%	50.8	%	6,100		-7.6	%	6,100		±0.0		12,400		-4.6	%	12,400
Zantac	1,700		-15.4	%	50.0	%	3,400		-12.8	%	3,400		±0.0		6,600		-10.8	%	6,600
Omniscan	1,400		-4.7	%	53.8	%	2,600		-7.1	%	2,600		±0.0		5,100		-5.6	%	5,100
Evoxac	300		2.2	%	42.9	%	700		±0.0	%	700		±0.0		1,450		11.5	%	1,450
Exports
Pravastatin	6,900		-62.9	%	68.1	%	10,200		-73.6	%	12,000		1,800		19,200		-70.2	%	21,000
Levofloxacin	7,600		-6.3	%	49.7	%	15,300		2.7	%	15,300		±0.0		30,300		2.7	%	30,300
*Overseas
DSI*
Benicar/Benicar HCT**	35,600		—		70.7	%	50,400		121.1	%	51,300		900		87,000		73.0	%	87,900
(mil $)	(307	)	—		70.3	%	(438	)	103.7	%	(446	)	(8	)	(757	)	66.0	%	(765	)
WelChol**	8,700		—		71.0	%	12,300		66.2	%	12,300		±0.0		20,700		39.9	%	20,700
(mil $)	(75	)	—		70.6	%	(107	)	55.1	%	(107	)	±0.0		(180	)	34.3	%	(180	)
Floxin Otic	1,700		39.3	%	43.0	%	4,000		25.4	%	4,000		±0.0		7,800		26.5	%	7,800
(mil $)	(14	)	29.6	%	43.7	%	(34	)	17.2	%	(34	)	±0.0		(67	)	24.1	%	(67	)
Evoxac	400		15.7	%	34.1	%	1,300		34.0	%	1,300		±0.0		2,700		12.3	%	2,700
(mil $)	(3	)	7.7	%	34.9	%	(11	)	25.0	%	(11	)	±0.0		(23	)	9.5	%	(23	)
LPI*
Venofer**	13,700		—		72.4	%	19,000		84.5	%	20,800		1,800		27,200		20.4	%	29,000
(mil $)	(118	)	—		71.6	%	(166	)	71.1	%	(181	)	(15	)	(236	)	15.1	%	(251	)
DSE*
Olmetec	5,200		44.8	%	55.1	%	9,500		31.9	%	9,500		±0.0		20,600		40.1	%	20,600
(mil EURO)	(37	)	40.9	%	53.1	%	(70	)	32.1	%	(70	)	±0.0		(152	)	42.1	%	(152	)
Mevalotin	1,500		100.1	%	63.8	%	2,500		4.2	%	2,500		±0.0		5,200		-5.5	%	5,200
(mil EURO)	(11	)	94.7	%	63.0	%	(18	)	±0.0	%	(18	)	±0.0		(40	)	±0.0	%	(40	)

* The accounting period of DAIICHI SANKYO INC. (DSI) and Luitpold Pharmaceuticals Inc. (LPI), both of which are overseas subsidiaries of the DAIICHI SANKYO Group, is 15 months from January 2006 to March 2007. This is due to an adjustment made to the accounting period. Therefore, for these two companies, the accounting period for the first quarter is from January to June 2006. The accounting period of DAIICHI SANKYO EUROPE GmbH (DSE) is from January to March 2006.

** Sales of Benicar, WelChol and Venofer for 1Q shows 6 months sales.

Reference(from January to March) : Benicar 15,600milion yen ($135mil), WelChol 3,900million yen($33mil), Venofer 6,800million yen($59mil)

*** Sales of Floxin Otic and Evoxac shows 3 months sales.

àExchange rate

1 $ =	115.7	115	115	115
1 EURO=	140.7	135	135	135

2

4. Consolidated sales of Global Products

million yen

	FY2006
	1Q		Change		Progress		1st half Estimate issued in May	Change		1st half Estimate	Full year Estimate issued in May	Change		Full year Estimate
Olmesartan	51,200		—		65.8	%	77,900	89.5	%	81,300	145,300	57.3	%	148,700	60.9	%
Japan : Olmetec	9,800		102.4	%	58.6	%	16,800	68.0	%	19,300	35,400	38.3	%	37,900	48.0	%
U.S.A: Benicar	35,600	*	—		70.7	%	50,400	121.1	%	51,300	87,000	73.0	%	87,900	74.8	%
Europe: Olmetec	5,200		44.8	%	55.1	%	9,500	31.9	%	9,500	20,600	40.1	%	20,600	40.1	%
Others	600		152.1	%	43.9	%	1,200	9.1	%	1,200	2,300	27.8	%	2,300	27.8	%
Levofloxin	23,500		-7.9	%	51.8	%	45,600	-2.1	%	45,800	95,900	-1.7	%	95,900	-1.7	%
Japan : Cravit	11,600		-13.2	%	53.3	%	21,900	-7.2	%	21,900	47,600	-5.2	%	47,600	-5.2	%
Exports	7,600		-6.3	%	50.0	%	15,300	2.7	%	15,300	30,300	2.7	%	30,300	2.7	%
Royalty	4,300		6.8	%	51.1	%	8,400	3.7	%	8,400	18,000	0.6	%	18,000	0.6	%
Pravastatin	25,800		-34.0	%	55.0	%	47,000	-40.7	%	47,900	92,000	-35.8	%	92,900	-35.1	%
Japan: Mevalotin	17,800		-10.5	%	51.7	%	34,500	-10.4	%	33,500	68,200	-9.3	%	67,200	-10.6	%
Europe	1,500		100.1	%	63.8	%	2,500	4.2	%	2,500	5,200	-5.5	%	5,200	-5.5	%
Exports	6,500		-65.1	%	64.6	%	10,000	-73.9	%	11,900	18,600	-70.2	%	20,500	-67.2	%

* 6 months sales (from Jan. to Jun. 2006).

5. OTC drug sales

million yen

	FY2006
	1Q	Change		Progress		1st half issued in May	Change		Full year issued in May	Change
Total	11,200	—		+45.1	%	26,000	176.9	%	54,200	94.3	%
LuLu series	1,300	19.9	%	25.7	%	5,100	8.5	%	10,200	8.5	%
Shin-sankyo Ichoyaku series	700	3.2	%	48.7	%	1,500	-6.3	%	3,000	-9.1	%
Karoyan series	600	14.4	%	51.2	%	1,200	9.1	%	2,400	14.3	%
Regain series	500	-18.1	%	37.2	%	1,500	7.1	%	2,500	4.6	%
Patecs series	600	21.3	%	59.5	%	1,000	-9.1	%	2,300	15.0	%
Lamisil AT	800	-14.1	%	57.1	%	1,400	27.3	%	2,500	-3.8	%
Gaster 10	1,000	4.7	%	48.4	%	2,000	—		4,200	—
Precol	300	-3.5	%	25.6	%	1,000	—		2,500	—
Cakonal	200	20.4	%	27.5	%	800	—		2,000	—
Makiron	600	-8.2	%	49.0	%	1,200	—		1,800	—

3

6. Consolidated Segment information - Business

million yen

	FY2005			FY2006
	1Q	1st half	Full year	1Q
Domestic	112,796	208,266	431,401	117,172
Overseas	70,471	145,253	289,530	110,358
OTC drugs	6,462	14,794	27,900	11,221
Pharmaceuticals	198,498	385,415	784,666	247,567
Other	32,649	66,393	141,251	22,982
Consolidated Sales	231,148	451,808	925,918	270,549
Pharmaceuticals	48,860	77,651	148,114	59,410
Other	484	2,321	6,146	1,267
Consolidated Operating income	47,650	80,345	154,728	60,792

7. Consolidated Segment information - Area

million yen

	FY2005							FY2006
	1Q	%		1st half		Full year		1Q	%
Japan	192,637	83.3	%	371,239		752,793		179,214	66.2	%
North America	25,093	10.9	%	53,741		116,061		71,068	26.3	%
Europe	10,705	4.6	%	21,345		45,473		16,301	6.0	%
Other	2,712	1.2	%	5,481		11,589		3,965	1.5	%
Consolidated Sales	231,148	100.0	%	451,808		925,918		270,549	100.0	%
Japan		42,008		69,124		130,249			51,057
North America		5,806		11,916		25,457			23,481
Europe		(55	)	(1,924	)	(685	)		4,773
Other		252		472		863			176
Consolidated Operating income		47,650		80,345		154,728			60,792

• The accounting period of DAIICHI SANKYO INC. (DSI) and Luitpold Pharmaceuticals Inc. (LPI), both of which are overseas subsidiaries of the DAIICHI SANKYO Group, is 15 months from January 2006 to March 2007. This is due to an adjustment made to the accounting period. Therefore, for these two companies, the accounting period for the first quarter is from January to June 2006.

• In fiscal 2006, Zepharma Inc., Taiwan Sankyo Ltd. And Shanghai Sankyo Pharmaceuticals Ltd., were made consolidated subsidiaries of DAIICHI SANKYO CO., LTD.

4

Segment Information (Reference)

million yen

	FY2006
	1Q	1st half Estimate issued in May	1st half Estimate	Full year Estimate issued in May	Full year Estimate
Pharmaceuticals
Domestic (Sankyo, Daiichi Pharmaceuticals non-consolidated)	117,172	202,400	203,900	414,500	416,000
US
Exports	8,868	21,000	22,000	43,800	44,800
DSI*	47,265	69,700	70,600	121,700	122,600
LPI**	23,808	30,600	35,500	46,900	51,800
Europe
Exports	9,589	12,900	14,000	22,900	24,000
DSE***	15,878	25,800	25,800	49,600	49,600
DAIICHI SANKYO HEALTHCARE CO., LTD. ZEPHARMA	11,221	26,000	26,000	54,200	54,200
Other Company(Total)	13,766	25,600	26,200	53,400	54,000
Other	22,982	56,000	56,000	58,000	58,000
Consolidated Sales	270,549	470,000	480,000	865,000	875,000

* Sales of Sales&Marketing Division. Accounting period is 15-month fiscal year (Jan. 2006 to Mar.2007).

** Accounting period is 15-month fiscal year (Jan. 2006 to Mar.2007).

*** Sales of Sales & Marketing Division.

5