ASSET VALUE INVESTORS URGES ROHTO PHARMACEUTICAL TO FOCUS ON CORE BUSINESSES AND ENGAGE WITH SHAREHOLDERS MORE CONSTRUCTIVELY

LONDON, April 9 (Bernama) -- Asset Value Investors Limited (‘AVI’) launches a campaign calling for Rohto Pharmaceutical (‘Rohto’) to focus on its core businesses rather than allocating resources to the unsuccessful regenerative medicine business, and to engage with shareholders more constructively to comply with the Tokyo Stock Exchange’s (‘TSE’) request for management that is conscious of the cost of capital and stock price. A detailed presentation can be found here.

Since AVI started investing in Rohto in June 2024, AVI has sought to engage in dialogue with the company, sending letters and presentations, with the aim of improving corporate value in a sustainable manner. However, AVI is deeply concerned by the company continuing to invest in regenerative medicine, a business with no clear path to success, announcing M&A deals at high valuations, and the sudden issuance of potentially dilutive convertible bonds despite the low share price, resulting in a stagnant share price.