These e-mails have nothing to do with us. If you receive an e-mail, please do not reply to it or contact us with any personal information. Also, please be wary of emails with suspicious content, not limited to the email addresses listed above.

These e-mails have nothing to do with us. If you receive an e-mail, please do not reply to it or contact us with any personal information. Also, please be wary of emails with suspicious content, not limited to the email addresses listed above.

About the new corporate slogan "Moving the heart."

People are always at the center of our beliefs. Our jobs are to listen to what people think and to make them feel wholeheartedly better. We are convinced that only passion and commitment can make the difficult things possible. Emotion such as excitement, sense of mission, playfulness, joy/surprise, empathy, compassion, and gratitude that we have possess the power to move the hearts of our customers and patients.

About the new corporate logo design

The letter "R" shows our origin, "people", whose Kanji is described as the two lines intersect like a T (as if one person in supporting the other from below). The key colors blue and red represent intelligence and passion, respectively. While inheriting the DNA of energetically pursuing challenges, the new corporate logo shows that our works move the heart dynamically and flexibly with our passion. We have created a design that represents our vision for the future.

Time of introduction

We will gradually switch from old logo to the new one 2024.

With our new slogan, "Moving the Heart," and our logo design, we will continuously make further efforts to energize people, society, and the future world.

Background of participation

Our company has adopted the Rohto Group's Comprehensive Management Vision 2030, "Connect for Well-being," and while expanding into the regenerative medicine business and food business, we contribute to people's well-being through cutting-edge medical care, prevention, pre-disease, and daily health. We are conducting various initiatives. In the area of regenerative medicine, we aim to provide regenerative medicine as a new treatment option to patients who are suffering from a lack of appropriate treatment methods, and to establish a new model for industry-academia collaboration in medical care, by incorporating the thought of "making regenerative medicine more familiar and easier to use' into our business statement. As a co-creation base for the social implementation of future medicine, in Japan we have research bases at Advanced Medical Research Center, Fujita Health University Tokyo and overseas at Hong Kong Science Park. By participating in "Nakanoshima Qross (Future Medical International Center)", we can expect further acceleration in our efforts towards social implementation in both clinical research and industrialization, together with medical sites, academia, and related companies.

Participation details

1. Research and development of cell therapy in collaboration with medical sites

   Based on the situation of patients and medical professionals, we will develop cell therapy methods for seeds related to various regenerative medicines, including mesenchymal stem cells. By conducting research and development (reverse translational research) based on clinical information from medical sites, it is possible to develop new cell therapy methods with high evidence.

2. Development and establishment of cell therapy supply chain through collaboration with other tenant companies

   As a cell manufacturer, we will work on developing supply chains that ensure quality together with startup companies that have new therapeutic seeds and related companies necessary for the industrialization of regenerative medicine. We aim to deliver high-quality, highly therapeutically effective cells in Japan, and to spread regenerative medicine more widely.

3. Realization of social implementation by installing Cell culture processing facility (CPC) (scheduled for completion in 2025)

   For patients needed for treatment, we will perform the contract cell processing to medical institutions that provide treatment under free medical treatment under the Regenerative Medicine Safety Act. By collaborating with neighboring ophthalmology, cardiovascular, and orthopedic departments, we will contribute to the social implementation of cell therapy with a high level of evidence.

About "Nakanoshima Qross (Future Medical International Center)"

It is an unparalleled industrialization base for future medical care, where medical institutions, companies, startups, support organizations, etc. are gathered under one roof. The Future Medical Promotion Organization, a general incorporated foundation established in Osaka Prefecture in 2019 with 21 private companies, is playing a central role in building the center. Our center is comprised of three facilities (areas): "Future Medical MED Center'", "Future Medical R&D Center", and "Nakanoshima International Forum'", each of which has the role of "practice", "creation'" and "sharing'" of future medicine. By cooperating each other among the resident companies and medical institutions and cycling through the roles of "practice" "creation" and "sharing" based on regenerative medicine, we aim to utilize genomic medicine, artificial intelligence (AI), IoT, etc. and to promote the industrialization of cutting-edge "future medicine" that responds promptly to advances in medical technology in the future, and to drive international contributions by providing "future medicine" to patients both domestically and internationally.

https://www.nakanoshima-qross.jp/

Background and details of this project

Founded in 1889, The Mentholatum Company, a subsidiary of ROHTO Pharmaceutical, has served customers in more than 110 countries around the world. Our brand has grown over the years as we have supported and connected with our customers around the world and listened to their problems. We have received hundreds of thousands of comments from them about us and our products.
In this project, we are using Microsoft Azure OpenAI Service, to create new value by analyzing "emotional" information contained in customer feedback through the simultaneous consolidation of multiple languages using AI. As we celebrate the 135th anniversary of The Mentholatum Company, in the first phase of the project, we will generate new images as an expression of connecting to the future based on the feedback from our loyal customers.

Masaya Saito, Executive Vice President and CFO of ROHTO Pharmaceutical Co., Ltd. and President of The Mentholatum Company

We are confident that generative AI is effective in helping us capture a vast number of customer comments that are beyond human comprehension and apply them to the development of products and services for future generations. In this project, we use Azure OpenAI Service at Microsoft AI Co-Innovation Lab in Kobe and simultaneously consolidate multiple languages and connect with "customers' emotions" found in their comments, and we hope to increase the value of Mentholatum products that we market worldwide.

Mr. Jun Yamasaki, Head of Microsoft AI Co-Innovation Labs, Microsoft Corporation

This project is undertaken with the technical support provided by Microsoft AI Co-Innovation Lab ("Kobe Lab"), which is a new facility opened in Kobe Japan. I am thrilled that the innovative services Kobe Lab and Microsoft Azure provide, including Azure OpenAI Service, are helping ROHTO Pharmaceutical carry out this project and that Kobe will be the birthplace of a new form of AI co-innovation that will be showcased to the rest of the world.

Background and Objectives of the Strategic Alliance:

In recent years, the global medical aesthetic market has garnered attention for its high efficacy and benefits, surpassing the pace of the mass skincare market. The EMEA region (Europe, the Middle East, and Africa) has been leading global trends in medical aesthetics, alongside North America, with anticipated high growth and potential future impact on Asia and Japan.

EMA is expanding its business of non-invasive aesthetic treatment devices globally, originally started from EMEA region, while the ROHTO Group possesses foundational research and formulation development capabilities in healthcare and skincare, actively conducting business in more than 110 countries around the world, mainly in Japan and Asian markets.

This alliance is expected to provide an opportunity for the ROHTO Group to expand its medical aesthetic business in the EMEA region and other areas, taking the opportunity of an innovative approach leveraging the strengths of both companies.

Nobuhiro Hirasawa, CEO of ROHTO MediLuxe Europe says;

This partnership is not only based on the synergy between innovative devices and regenerative medical expertise along with unique skincare formulation technology, but also on the synergy of EMA's ability to continuously create new businesses and ROHTO's thorough customer-oriented approach. At the milestone of our 125th anniversary, we are excited to enter the dynamic field of aesthetic medicine, crossing borders from Paris, and look forward to proposing new value to the world.

Malcolm Wall Morris, CEO of EMA AESTHETICS says;

Since its inception in 2019, EMA Aesthetics has consistently been a pioneer in aesthetic products. Our philosophy of continual innovation, driven by our dedication to surpass industry norms and exceed stakeholders' expectations, has been pivotal in our journey. The partnership with ROHTO signifies a key moment in our trajectory. Jointly, we are poised to push the limits of aesthetic products, enhancing our worldwide presence and reiterating our commitment to excellence and innovation.

Establishment of ROHTO MediLuxe Europe:

ROHTO Pharmaceutical established its subsidiary, ROHTO MediLuxe Europe, in France on October 6, 2023. Using France as a base, the company plans to explore new businesses and generate demand for next-generation products, considering the deep historical and geographical ties with regions like the Middle East and Africa.

Company Overview:

ROHTO MediLuxe Europe S.A.S.U.

EMA AESTHETICS LIMITED

Background and Objectives.

Australis Scientific Pty Ltd. is a cutting-edge health tech venture incubated at the Harvard Innovation Lab and is developing the In-Confidence™ Smart Patch for the management of urinary incontinence symptoms. It has achieved a significant milestone by successfully closing a Series Seed funding round and winning the Harvard President’s Innovation Challenge. Rohto Pharmaceutical Co., Ltd. is at the forefront of this round, demonstrating a clear vision dedicated to serving the aging population. Their role as principal investor highlights their unwavering commitment to meet the dynamic healthcare demands of Japan and Asian countries.

Urinary incontinence poses significant health concerns, affecting the quality of life of millions of patients globally. Australis Scientific Pty Ltd. has developed the ingenious In-Confidence™ Smart Patch technology, seamlessly incorporating percutaneous tibial nerve stimulation (PTNS) therapy to manage acute and chronic urinary frequency, urgency and nocturia symptoms. This breakthrough solution offers immense promise in mitigating the distressing symptoms of urinary incontinence.

Australis Scientific Pty Ltd. is dedicated to revolutionizing urinary incontinence management, combining state-of-the-art digital biomarker tracking, digital therapeutics, medical devices, and telehealth clinical services into a full stack solution that is the In-Confidence™ Smart Patch. With Rohto's strategic support, Australis Scientific Pty Ltd. is poised to expedite the development and deployment of the In-Confidence™ Smart Patch, ultimately making a significant impact on the lives of incontinent patients around the world. For more information on Australis Scientific Pty Ltd. Please visit their website at InConfidence.IO.

• https://www.inconfidence.io/

Ideal State and Directions to Advance

1. Contributing to a sustainable global environment [Environment (E)]

The ideal state of the ROHTO Group ("Group") is where we are proactively undertaking green initiatives, including resource circulation and considerations for the environment, where we have established a system to capture environment-related data in ROHTO Pharmaceutical Co., Ltd. ("ROHTO") and the whole Group, and where relevant information, such as the reduction targets set for various aspects, the details of each initiative, and actual results, are disclosed in and outside the Group, following social rules. Specifically, we will build a framework to work on the reduction of greenhouse gas (GHG) emissions and waste disposed through the manufacturing process and waste recycling, the development and provision of low-carbon products and items (including containers and packaging materials), and the preservation of biodiversity through all the Group business activities and the whole value chain.

• Contributing to a low-carbon society

  As we have set and disclosed concrete numerical targets for reducing GHG emissions from Scope 1 and 2 of ROHTO, we will continuously work on attaining those targets and switch the purchase of electricity for ROHTO's major offices (Osaka Plant, UENO Technology Center, and ROHTO Research Village Kyoto) to Co2-free electricity. Further, we will formulate a roadmap to reduce plastic usage for our products, which significantly affects GHG emissions.

• Contributing to a recycling-oriented society

  For printing papers used for our business activities (such as product packaging and office use), we will accelerate switching to eco-friendly papers and promote purchasing "green" products for office equipment and supplies.

• Considerations for the environment

  ROHTO has started to put the original symbol, the "R-eco" mark, on the packaging of our eco-friendly products. As definite criteria for placing that mark have not yet been established, we will set those criteria for the whole Group, discuss a specific target rate of products bearing that mark, and disclose it as early as practicable.

• For responsible procurement of palm oil

  To ensure sustainable palm oil procurement, we will participate in outside initiatives and follow the necessary process in stages.

2. Maximization of human capital, coexistence with society [Society (S)]

For the Group to attain sustained development while contributing to realizing a "Well-being" society, we must constantly create new values and remain in the position to be sought by the world. Each member (including officers and employees) of the Group companies bears that important role, and without individual growth, no organizational growth is expected. And, for usto generate new values continuously in the rapidly diversified and globalized current business circumstances, it is crucial that diverse personnel share the values, work hard together, and motivate each other to progress. To advance "Well-being" management, we will push Diversity Management to encourage all members to participate in business activities proactively and realize their career visions autonomously as professional workers. Moreover, we pursue creating a society of "Well-being" by building an organization that cultivates diverse individualities so that each member and the company can grow together. (ROHTO Diversity Management Policy)

• Promotion of diversity (promotion of employment of persons with disabilities, LGBTQ initiatives, and active participation by senior persons and women)

  ROHTO's employment rate of persons with disabilities exceeds the mandatory rate; however, having much room for improvement, we will create a working environment where many challenged persons can actively work. Also, with more careful consideration for LGBTQ persons and addressing any harassment issues, we will create and maintain a comfortable and inclusive workplace. For senior human resources, their number is expected to increase further in the "era of the 100-year lifespan," along with the full extension of the retirement age to 65 years in FY2025. As it is necessary to offer them opportunities for upskilling and lifelong learning, we are now working on programs, including a training course, to support their active participation. Regarding the empowerment of women, the percentage of female employees in ROHTO exceeds 50%, and the same for female managers is about 30%. Almost no female member leaves the company due to child delivery or childcare; thus, it can be said that ROHTO has achieved a certain level. However, according to our human resources portfolios, there are still certain gaps between males and females. For instance, the male group with longer years of service takes more supervisory roles than the female. Therefore, we will further strive to improve those portfolio ratios between men and women.

• Improving the "Well-being" of all members employees(Enhancement of the level of engagement)

  ROHTO has introduced the "Well-being" questionnaire survey (self-evaluation by its members) to ask how they deal with respective tasks, assess to what extent they feel affinities with the ROHTO's concept of values, and measure their satisfaction with working for the company. We monitor the scores on the survey ("Well-being Points"), indicating members' engagement and contentment. For the organization and individuals to grow together, we do not intend merely to raise the average of those scores but to push forward our efforts not to leave anyone behind. For that purpose, we will further strive to enhance their engagement, setting the highest target of realizing full points by all members.

• Promotion of health and productivity management and ensuring occupational safety and health of employees

  Recognizing that ensuring the employees' safe and secure lives and physically and mentally healthy conditions is the basis of corporate activities, we are advancing health and productivity management, setting our original indicators. In addition, through further efforts to increase the usage rate of paid leave, we will encourage all the employees to use holidays to refresh themselves, physically and mentally. We will also continuously work on preventing any work-related accidents.

• Respect for human rights and promoting CSR procurement

  As a global corporation, we recognize respecting the human rights of all members of the Group and business partners and suppliers (collectively "Business Partners") is essential for implementing our businesses. For that purpose, we will identify any risks related to human rights in the Group and the Business Partners without missing the timing. If any risk is actualized, we will promptly address, redress,and disclose its outcome in and outside the company. Also, encouraging the Business Partners to understand our sustainability initiatives and take action for the same goal, we seek the state where we are building trusted relationships with them.

3. Strengthening management foundation [Governance (G)]

We aim to realize a circumstance where all the members of the Group share compliance awareness and never allow any violation, any compliance risk can be promptly addressed, and appropriate measures are taken through the Group. To that end, we ensure the thorough provision of compliance education and enforce the system to receive internal and external reports and consultation on any doubt and violation of compliance ("Whistleblowing")

Future materiality and review of non-financial targets

In addition to responding to internal and external issues related to sustainability and changing expectations from stakeholders, we appropriately assess the environmental, social, and economic conditions in Japan and overseas, and the degree of impact on our group's business activities. We will review non-financial indicators (KPIs) as appropriate.

Sustainability Goals 2030 (non-financial goals for 2030)

Vision and Direction

1.Contribution to Sustainable Global Environment [Environment (E)]

In addition to aggressively implementing environmental measures, including resource recycling and environmental considerations, we have established a system for collecting environmental data on a non-consolidated basis and on a group-wide basis, and we aim to be able to disclose the details and results of our various reduction targets in accordance with social rules both inside and outside the company. We will construct a system to reduce greenhouse gas emissions throughout the ROHTO Group's business activities and value chain, reduce waste and recycle from manufacturing processes, develop and provide low-carbon impact products, including containers and packaging materials, and address biodiversity issues.

• Contributing to a low-carbon society

  We will continue to work toward achieving the target for the reduction target of Scope 1.2 on a non-consolidated basis, which we have already disclosed as a target. At the same time, we plan to switch the purchased power from our main business sites (Head Office Plant, Ueno Techno-Center, and RVK (Research Village Kyoto)) to CO2 free power.
  We will also work to formulate roadmaps to reduce the use of plastic for products that have a major impact on greenhouse gas emissions.

• Contribution to a recycling-based society

  For paper used in business activities (product packaging, offices, etc.), we will promote the switch to environmentally conscious paper and promote green purchasing of office supplies.

• Environmental consideration

  We have our own R eco labels on our environmentally conscious product packaging. Since we did not establish clear standards for the grant of this mark, we plan to establish standards for the use of the mark, including our group, and to review and disclose the targets for the products to which the mark is granted at an early stage.

• Toward Responsible Palm Oil Procurement

  Aiming to procure sustainable palm oil, we plan to participate in external initiatives and progressively implement countermeasures.

2.Maximization of human capital and coexistence with society [society (S)]

While contributing to the realization of a Well-being society, the Company must constantly create new value and be a company that is needed by society for sustainable growth. Each and every one of our employees, of course, does not grow the organization without the growth of our employees. Amid the rapid diversification and globalization of our business, it is essential that diverse human resources share values and grow through friendly rivalry in order for us to continue to create value. In order to promote Well-being management, we will promote diversity management so that our employees can participate in business activities on their own initiative and achieve their career vision autonomously as professional workers. At the same time, we will aim to create a Well-being community by enabling employees and companies to grow together through organizational development that makes the most of diverse "individuals." (Our Diversity Management Policy)

• Promote diversity (Employment of people with disabilities, LGBTQ, promotion of active participation by senior citizens, promotion of active participation by women)

  Our employment rate of people with disabilities is higher than the legally mandated rate. However, we believe that there is still room for improvement, and we will create an environment in which more people can play an active role. We also believe that a more detailed response to LGBTQ is needed, and we will work to create a comfortable working environment. In addition to dealing with harassment, we will also work to improve the work environment.
  In addition, we will strengthen our training, including training, as we feel the need for career education, in order to increase the number of senior employees, including those who have reached the age of 100 in their lives and those who have reached the age of 65 in fiscal 2025. With regard to female employees' careers, the ratio of female employees is over 50%, the ratio of female employees in managerial positions is about 30%, and there is almost no retiree for the reason of childbirth or childcare. However, there is a gap in the human resource portfolio between some men and women, as the ratio of men in higher grades with long years of service is higher, and we will work to improve the portfolio ratio.

• Improve employee Well-being (enhancing engagement)

  We conduct a Well-being survey (employee Well-being self-evaluation) to measure the affinity and satisfaction levels of our values, including how each employee is facing with their work. We pursue this improvement in satisfaction as an indicator of employee engagement. Our commitment to co-growth between individuals and organizations is not a matter of high average scores, but rather a goal of ensuring that no one is left behind. We will confront employees with a high goal of having all employees take full advantage of this indicator.

• Promoting health management and ensuring occupational health and safety

  We believe that maintaining the safety, security and physical and mental health of our employees is the foundation of our corporate activities, and we promote health and productivity management with their own indicators. In addition, by further improving the rate of paid leave taken, we hope to help employees refresh their mind and body. We will also continue our efforts to prevent industrial accidents.

• Respect for Human Rights and Promoting Procurement of CSR

  As a global company, we consider consideration of human rights among Group employees and business partners to be an essential part of our business operations. To this end, we will identify human rights risks within the Group and at suppliers in a timely manner. If any risk materializes, we will promptly remedy the risk and disclose the results both inside and outside the company. We will also seek the understanding and implementation of our approach to sustainability from our business partners, and aim to establish a relationship of trust with them.

3.Strengthen management base [Governance (G)]

Awareness is shared by the entire Group that compliance violations will never occur. If a compliance violation risk arises, we aim to ensure that cases are dealt with at an early stage and that appropriate responses are being taken by the entire Group. To this end, we will ensure thorough compliance education and strengthen internal and external reporting systems.

Future Materiality and Revision of Non-Financial Targets

In addition to responding to internal and external issues related to sustainability and changes in stakeholders' expectations, we will appropriately assess the environmental, social, and economic conditions both domestically and overseas, as well as the degree of impact on our group-wide business activities, and review materiality and non-financial indicators (KPI) as needed. Sustainability Target 2030 (Non-Financial Targets for 2030)

Our company's thoughts towards establishment

Our company has set the group's comprehensive management vision for 2030 as "Connect for Well-being," and we are implementing various initiatives in the fields of health, presymptomatic disease, and treatment so that every person can live an active life in body and mind. In recent years, real-world data has attracted increasing attention in the healthcare field, and it has already begun to be widely used in product and service development overseas. AI-based analysis on Japan's medical performance and derived (produced) medical big data will contribute to evaluate safety and effectiveness more quickly and efficiently than
conventional development processes, and these This will truly change the way product development is done.

About our company

Future outlook

The impact of this matter on our consolidated business results for the fiscal year ending March 2023 is minimal, and we will promptly notify you if any matters that need to be announced arise in the future.

About Fujita Gakuen Educational Corporation

Our Vision for Establishment

Rohto Pharmaceutical has embraced the Group comprehensive management vision, "Connect for Well-being," for 2030. We are actively pursuing various initiatives in the fields of health, pre-illness, and treatment to ensure that each individual can lead a vibrant and fulfilling life both physically and mentally. Real-world data has gained significant attention in the healthcare sector in recent years and has already been widely used overseas for product and service development. Leveraging Japan's medical expertise and medical big data, we can conduct analyses using artificial intelligence (AI) that enable quicker and more efficient evaluations of safety and efficacy than traditional development processes. This shift in approach has the potential to revolutionize product development.
Rohto Pharmaceutical shares Fujita Gakuen's strong commitment to providing services not only to its own organization but also to many individuals in the healthcare field. This led to the establishment of the joint venture company. Going forward, we will swiftly build the necessary platforms to meet customer needs and contribute to the supply of beneficial technologies and products for society as a whole.

Company Overview

Outlook

The impact of this development on our consolidated financial results for the fiscal year ending March 2023 is expected to be minimal. We will promptly notify stakeholders of any significant developments that require public disclosure.

About Fujita Gakuen

As part of Rohto Pharmaceutical's comprehensive management vision for 2030, "Connect for Well-being," we are committed to focusing on the field of medical ophthalmic drugs to contribute to the well-being of people. As a testament to this commitment, we entered into a licensing agreement with JT Inc. in March 2018 to develop ROH-201 as a therapeutic agent in the field of ophthalmology

Janus Kinases are a type of tyrosine kinase found in cells and play a crucial role in the transmission of immune activation signals within cells. ROH-201 is expected to improve eye disorders by inhibiting this function, thus suppressing excessive immune responses. Following the completion of Phase II clinical trials, which included dry eye patients, including those with Sjogren's syndrome, we are commencing Phase II clinical trials. We will continue to advance the development of ROH-201, aiming to contribute to the well-being of patients by promoting healthy eyes, ultimately benefiting society at large.

Glossary

• Tyrosine Kinase

  Enzymes that add phosphate groups to the amino acid tyrosine, playing vital roles in cell proliferation, survival, development, and differentiation. They collectively form a group of enzymes that are crucial for transmitting immune activation signals within cells. Janus Kinases are one type of tyrosine kinase..

• Sjogren's Syndrome

  An autoimmune disease characterized by organ-specific symptoms resulting from an imbalance in the immune system. It is designated as a rare disease. In the field of ophthalmology, it is known to exacerbate and complicate dry eye symptoms due to impaired tear and salivary gland function.

About JT Inc.

JT Inc. is a global tobacco company, and its products are sold in over 130 countries and regions. In addition to its tobacco business, the company is involved in pharmaceuticals and processed food operations, engaging in various business activities. JT Inc. primarily focuses on research and development functions in the areas of "cardiovascular, renal, and metabolic diseases," "immunity and inflammation," and "central nervous system." A group company, Torii Pharmaceutical Co., Ltd., is responsible for manufacturing and sales activities in Japan.
JT Inc. has developed Delgocitinib as a topical cream for the treatment of atopic dermatitis and received manufacturing and marketing approval in January 2020. It is marketed under the product name "CORECTIM® ointment."
For more information, please visit　https://www.jti.co.jp/

Key Features of the Smart Factory

"People-Friendly" Factory

The integration of technology allows for more flexible work, enabling individuals to shift towards a "well-being" way of working, with humans and technology working together effectively.

Ensuring the Safety and Efficiency of Workers through Collaboration between Robots and Humans

By utilizing IoT devices such as omnidirectional cameras and sensors, the facility can detect abnormal behavior, hazardous tasks, unauthorized access to restricted areas, and proximity to manufacturing equipment. This data is then relayed in real-time to both the workers and management through a centralized monitoring system, thus taking precautionary measures to prevent workplace accidents. Moreover, the introduction of collaborative robots enables the creation of production lines that leverage the strengths of both humans and robots, leading to streamlined work processes and increased efficiency.

Implementing a Cyber-Physical System (CPS) with IoT and AI for Enhanced Productivity

To produce high-quality products efficiently and consistently, the facility incorporates CPS into the manufacturing process. This involves the integration of data obtained through IoT sensors and cameras with production plans, resulting in optimized workflows, automation, and a reduction in physical strain on workers. The system also optimizes inventory management in the automated warehouse and reduces lead times. The CPS will be further expanded to contribute to added value for customers.

"Environmentally-Friendly" Factory

Targeting a 20% reduction in energy consumption (compared to existing factories), the facility actively harnesses renewable energy sources such as geothermal energy※2 and solar power, while incorporating energy-efficient equipment.

※2: Geothermal energy utilization takes advantage of the temperature differential between the ground (which remains at a stable temperature lower than outside air temperature in the summer and higher in the winter) to enable efficient air conditioning (heating and cooling).

Quality-assurance system compliant with global GMP as a manufacturing base for overseas

As a production base serving both domestic and international markets, the facility has established a quality assurance system compliant with the international PIC/S※3 GMP standards.

※3: Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-operation Scheme

Installation of an Informative Tour Route for Learning about Manufacturing with Fun

Primarily for local elementary school students and their families, an informative tour route has been established, allowing visitors to learn about the fascinating world of manufacturing while observing the production process. To ensure a comfortable experience for families, the facility has provided amenities such as a kids' restroom and a diaper-changing corner. In the future, the facility plans to offer experiential workshops led by ROHTO employees, providing an enjoyable opportunity for both adults and children to explore the field of health sciences.

Outline of of the New Facility

About Ueno Techno Center

Ueno Techno Center, in operation since 1999 and celebrating its 20th anniversary this year, serves as the mother plant for ROHTO Pharmaceutical. It produces a range of products, including V ROHTO Premium eye drops, one of ROHTO Pharmaceutical's flagship products, as well as skincare products like Hada Labo Moisturizing Hyaluronic Acid Lotion. It functions as a hub for quality control and logistics.

Notation

1. Reasons for the Ownership Acquisition

NCV is a cosmetics manufacturing company located in Binh Duong Province, in the suburbs of Ho Chi Minh City, Vietnam, with a land area of 2.0 hectares. Since its inception in December 2015, NCV has been producing and supplying high-quality basic skincare products such as lotion and emulsion, as well as makeup products including lipstick, primarily to Japan and other Southeast Asian countries. ROHTO Pharmaceutical Co., Ltd. and Naris Cosmetics Co., Ltd., the current holder of NCV's ownership stake, have reached an agreement for the transfer of NCV's full ownership stake to our company. Employees of NCV's factory will continue to be engaged in production activities. Through this acquisition, we aim to enhance the competitiveness of both factories, RMV's factory in Binh Duong Province and NCV's manufacturing capabilities, to meet the increasing demand for ROHTO Group's cosmetics products in the rapidly growing Vietnamese and Southeast Asian markets, thereby achieving sustainable medium and long-term growth for ROHTO Group in the region.

2. Ownership Stake Acquisition/Ownership Stake Before and After the Acquisition

(1) Ownership Stake Before the Transfer: 0%
(2) Ownership Stake Acquired: 100%
(3) Acquisition Price: Undisclosed (Subject to a confidentiality agreement)
(4) Ownership Stake After the Transfer: 100%

3. Company Profiles Related to This Matter

[ROHTO Mentholatum (Vietnam)].
(1) Name: ROHTO-MENTHOLATUM (VIETNAM) CO., LTD.
(2) Headquarters: 16 VSIP, Street 5, Vietnam-Singapore Industrial Park, Thuan An City, Binh Duong Province, Vietnam
(3) Position and Name of Representative: General Director Hirofumi Shiramatsu
(4) Business Activities: Mainly manufacturing and selling OTC pharmaceuticals, cosmetics, health food, and medical devices
(5) Capital: VND 245,104 million (as of March 2022)
(6) Date of establishment: July 18, 1997
(7) Number of Employees: 1,299 (as of June 2022)
(8) Recent Financial Performance: Sales revenue of JPY 7,967 million (FY12/2021)

[Naris Cosmetics Vietnam Company]
(1) Name: NARIS COSMETICS VIETNAM CO., LTD.
(2) Headquarters: Lot No,18-4,18-5 ,3B Street, PITP, An Tay Ward, Ben Cat Town, Binh Duong Province, Vietnam
(3) Position and Name of Representative: Representative Director and General Director Ryoichi Yokomichi
(4) Business Activities: Mainly manufacturing and exporting cosmetics and related products
(5) Capital: VND 159,835 million (as of December 2021)
(6) Date of Establishment: January 13, 2014
(7) Number of Employees: 61 (as of December 2021, including seconded personnel from Japan)
(8) Ownership and Ownership Ratio: NARIS Cosmetics Co., Ltd. 100%.
(9) Relationship between Listed Company and the Company in Question: No capital relationship, personnel relationship, or transactional relationship
(10) Recent Financial Performance: Sales revenue of JPY 360 million (FY12/2021)

4. Details of the Acquisition Target

(1) Name: NARIS Cosmetics Co., Ltd.
(2) Headquarters: 1-11-17 Ebie, Fukushima-ku, Osaka City, Osaka Prefecture, Japan
(3) Position and Name of Representative: President and Representative Director Hiroyoshi Muraokar
(4) Business Activities: Manufacturing and selling cosmetics
(5) Capital: JPY 1,601 million
(6) Date of Establishment: December 1949 (Founded in April 1932)
(7) Net Assets and Total Assets for the Previous Business Year:
Standalone: JPY 136.94 million, JPY 272.94 million
Consolidated: JPY 130.5 million, JPY 277.66 million
(8) Major Shareholders and Shareholding Ratios : Top 10 (as of March 31, 2022)
Hiroyoshi Muraoka: 948,000 shares, 12.70%
Osaka Small and Medium Business Investment & Consultation Co., Ltd.: 840,000 shares, 11.24%
NARIS Cosmetics Employee Shareholding Association: 542,000 shares, 7.26%
Naotada Muraoka: 458,000 shares, 6.13%
Daishi Hokuetsu Bank,Ltd.: 388,000 shares, 5.19%
Ei Muraoka: 373,000 shares, 4.99%
Sumitomo Mitsui Banking Corporation: 370,000 shares, 4.95%
SUMITOMO LIFE INSURANCE COMPANY: 355,000 shares, 4.75%
Mitsuko Muraoka: 265,000 shares, 3.54
Sumitomo Mitsui Trust Bank, Limited: 220,000 shares, 2.94%
(9) Relationship between Listed Company and the Company in Question: No capital relationship, personnel relationship, or transactional relationship

5. Schedule

(1) Board of Directors' Resolution: September 26, 2022
(2) Contract Signing Date: September 26, 2022
(3) Date of Ownership Transfer: Expected to be at the end of December 2022

6. Future Outlook

The impact on the consolidated financial statements of our group for the fiscal year ending March 2023 is expected to be minor, and we will promptly inform you of any matters that need to be disclosed in the future.

Background of Establishment

Since its full-scale entry into the regenerative medicine field in 2013, the Company has been actively engaged in various developments to expand its business, such as the development of automated cell culture equipment, the development of cell products focusing on refractory diseases, and the launch of serum-free AOF medium for mesenchymal stem cells.Particularly, the cell culture media is expected to experience significant demand growth in parallel with the rapid expansion of the regenerative medicine sector worldwide.Moreover, the unstable international situation, including the pandemic, has underscored the importance of production and supply systems in various regions and countries.
Hainan Island, where the joint venture will be established, has introduced various key and preferential policies for the "medical field" as part of its development as a free trade zone, making it one of the strategic regions for regenerative medicine. Bloomage Concell Biotechnology, which has a strong track record and a powerful network in the country, has been adopted in important projects in this region. Together with BioMimetics Sympathies and the Company, which have already formed partnerships in joint development, we aim to rapidly promote the culture media business in China and work toward the development and sustainable growth of regenerative medicine businesses based on research and development by the newly established company.

Details of the Joint Venture Company

Future Outlook

The impact of this matter on the consolidated performance of the Company for the fiscal year ending March 2023 is expected to be minor. We will promptly announce any matters that should be disclosed.

About Bloomage Concell Biotechnology (Hainan) Co.,Ltd.

About BioMimetics Sympathies Inc.

The compound is being developed as a treatment for specific ophthalmic diseases, using a compound that has already been marketed for other indications.DWTI introduced the rights for Japan from a British company in 2015 and has been conducting studies on formulation, among other considerations.

Based on the results of previous non-clinical trials, the compound's effectiveness and safety in the non-clinical phase have been confirmed. Therefore, in this trial, we will proceed to confirm the safety and pharmacokinetics of the compound in humans.

We are considering entering the medical pharmaceuticals business and continue to advance various research initiatives in the field of ophthalmology. In the future, we will provide products and services that contribute to the eye health of people and aim to be of service in the field of ophthalmology.
The impact of this agreement on the current fiscal year's performance is expected to be minimal.

About DWTI

Background of Sponsorship

We have established the ROHTO Group Comprehensive Management Vision 2030:Connect for Well-being and are continuing to challenge the future of healthcare and healthcare with the goal of achieving a well-beaing society that is not only physically but also mentally and socially flexible.
In this context, Osaka Pavlion aims to take a positive step by identifying its potential in the field of future healthcare and healthcare, with "future urban living" and "REBORN" in its stories.
We agreed that we would like to cooperate with and participate in the release of the "Healthcare Urban OSAKA" for the next generation and worldwide, with an empathy for the purpose of the "Osaka Pavirion."
In the future, we will be preparing to disseminate the possibilities of future medical and healthcare through co-creation with the Pavirion.

Background and Objectives of the Research

In recent years, diagnostic devices in the field of ophthalmology have advanced significantly, enabling multifaceted information gathering. Additionally, new reports have highlighted distinctive changes in the eyes associated with systemic diseases. This means that state-of-the-art ophthalmic diagnostic equipment can be used not only for eye care but also for evaluating overall health conditions.
By integrating eye health information with regular health checkup data and lifestyle survey data, it is expected that we can predict and diagnose the onset of diseases at an early stage and assess one's health status before diseases manifest.
Leveraging the knowledge and diagnostic techniques in ophthalmology at Osaka University's Graduate School of Medicine, SAI's expertise in information science, and their unique AI analysis technology, along with ROHTO Pharmaceutical's cohort data and product/business development capabilities, we will collaborate to create new healthcare initiatives such as personalized medicine and preventive medicine.
Through this collaboration among the three parties, we aim to realize early prediction and diagnosis of disease onset, fostering the innovation of preventing these diseases. This will contribute to extending healthy lifespans and realizing a society where everyone can stay healthy and active throughout their centenary lives.

Figure: Role image of the three

Glossary

• Ganciclovir

  Ganciclovir is an antiviral drug that inhibits viral DNA polymerases. In the field of ophthalmology, It is approved as a treatment for Simple Herpes Eye Infection in over 40 countries worldwide.

• Cytomegalovirus Endotheliitis

  Endotheliitis is a condition that causes inflammation of the corneal endothelial cells. When corneal endothelial cells are extensively damaged, it can lead to bullous keratopathy, resulting in severe vision impairment and, in some cases, blindness. Although the existence of Cytomegalovirus Endotheliitis was first reported in Japan in 2006, there are currently no approved treatments for this condition both domestically and internationally.

About Théa

Théa is a European independent pharmaceutical group company leading the field of ophthalmology. As a family-owned company, Théa is a pioneer in preservative-free eye drops and offers a wide range of ophthalmic treatments. Based in Clermont-Ferrand, France, Théa has approximately 30 subsidiaries and overseas locations across Europe, North America, South America, North Africa, and the Middle East. With around 1,500 employees worldwide, its products are sold in various countries.
For more information, please visit https://www.laboratoires-thea.com/en

{BDD4134C-A964-4973-825B-A9EADB1D0D2A} https://www-sc10-cd.rohto.com/global/research/researchnews/technologyrelease/2021/0630_01

ROHTO Pharmaceutical Co., Ltd. (Head Office: Osaka City, President: Masashi Sugimoto) conducted a performance assessment of a rapid test kit for corononavirus (SARS-CoV-2) antigens using domestic clinical samples, specifically nasopharyngeal samples, in collaboration with the Osaka City University Graduate School of Medicine (Professor Kakeya at Department of Infection Control Science, Associate Professor Yasutoshi Kido at Department of Parasitology and Senior Lecturer Yu Nakagama).
The product was launched on June 16, 2021. Distribution, sales, and promotional activities within the country are entrusted to companies with whom we have sales alliance agreements.
We will continue to actively conduct research and development through industry-academia collaboration and will continue to contribute to the health of people by addressing the requirements of medical institutions and patients.

Background: Rapid antigen testing by immunochromatography

Rapid immunochromatographic antigen test is a simple and rapid point-of-care medicine that detects and guides diagnosis of viral antigens in symptomatic individuals and is useful for screening symptomatic individuals in outpatient settings.
In particular, in regions and countries where large-scale testing equipment such as PCR is not available, the use of such equipment is considered to be even higher, even though the convergence of coronavirus (SARS-CoV-2) infections is not visible.
In addition, on May 28, 2021, Coronavirus Response Headquarters revised and announced the basic response policy,”The government encourages the implementation of testing for individuals with mild symptoms using antigen rapid test kits, among other measures, in workplaces as well, with the perspective of preventing the widespread occurrence of clusters and alleviating the strain on the healthcare system. In the event of a positive case being identified, efforts are made to quickly and flexibly conduct administrative testing, including PCR tests, while reducing the administrative burden on public health offices and ensuring a broad scope of contact tracking.”
We anticipate a continued rise in the demand for high-quality rapid antigen tests.

Study conclusion

A performance evaluation of the coronavirus (SARS-Cov-2) antigen rapid test kit using domestic clinical samples (nasophatyngeal swab) was performed. This evaluation verified that the test kit exhibited high sensitivity (positive percent agreement) for samples with more than 105 copies per test and achieved a specificity (negative percent agreement) of 100%. Based on this results, we conclude that the test kit holds clinical utility for reliably confirming positive or negative diagnosis in patients exhibiting specific symptoms, in accordance to the established test guidelines.

Future Outlook for ROHTO Pharmaceutical and Osaka City University

We will continue our joint research with Osaka City University. Based on the aforementioned background, our commitment is to enhance global public health. This will be achieved by addressing the requirements of medical and research institutions, as well as patients worldwide, through the expansion of coronavirus antigen rapid test kits, including those suitable for self-collected specimens and international deployment. In addition, the Osaka City University Graduate School of Medicine and Parasitology, responsible for the performance evaluation, has been conducting research activities on infectious diseases in regions such as Africa, Central and South America for many years. This collaborative research will be further developed at Osaka City University’s overseas research facility in the Democratic Republic of the Congo.※

※）https://www.osaka-cu.ac.jp/ja/news/2020/200420

Background

Reports on COVID-19 have indicated that approximately 20% of cases progress to severe pneumonia. This severity has been associated with a phenomenon called "cytokine storm," in which the immune cells of infected individuals uncontrollably release cytokines while fighting the virus. Therefore, it is believed that treatment for severe COVID-19 should not only focus on eliminating the virus but also on addressing the cytokine storm. Mesenchymal stem cell therapy using allogeneic mesenchymal stem cells has been explored worldwide, with multiple reports suggesting its potential effectiveness in treating severe COVID-19 cases. Mesenchymal stem cells are believed to possess anti-inflammatory properties through various mechanisms, making them a promising treatment option for patients who do not respond to approved COVID-19 therapies. ROHTO Pharmaceutical is committed to advancing research in this area to establish a mesenchymal stem cell-based treatment approach for COVID-19 and future infectious disease management.

About ADR-001

ROHTO Pharmaceutical's investigational product, "ADR-001," is a cell-based therapy composed of allogeneic adipose tissue-derived stem cells. ADR-001 is cultured using a proprietary serum-free medium designed to maximize the potential of adipose tissue-derived stem cells without the inclusion of animal-derived materials, reducing the risk associated with animal-origin viral infections. Adipose tissue is known to contain numerous mesenchymal stem cells, and its collection is relatively non-invasive, with excess tissue often available from surgeries. This makes it easily accessible for transplantation with allogeneic adipose tissue-derived cells, offering a rapid supply for eligible patients.
Following our ongoing clinical trial for patients with liver cirrhosis※, ROHTO Pharmaceutical has proceeded with the Phase I clinical trial of ADR-001 to assess its safety in severe COVID-19 pneumonia patients. As a result of the Phase I trial confirming a certain level of safety, we have planned a Phase II trial with efficacy as the primary endpoint. This trial will include an ADR-001 treatment group and a placebo group, with a comparative study between the two.※A Phase I/II Trial of ADR-001 in Subjects with Cirrhosis.

Clinical Trial Overview

Trial Name: Phase II Clinical Trial of ADR-001 for Severe Pneumonia Caused by SARS-CoV-2 Infection

• Target Disease: Severe pneumonia caused by SARS-CoV-2 infection
• Trial Design: Randomized, placebo-controlled, double-blind, intergroup comparative trial
• Primary Endpoint: Efficacy
• Administration Method: Intravenous infusion
• Planned Enrollment: 20 participants
• Scheduled Trial Duration: June 2021 to September 2022

Reason for Stock Acquisition

Amato Pharmaceutical, founded in the late Edo period, traces its roots to the Amato Pharmaceutical Chemical Research Institute established in 1921. It is known for pioneering "Boraginol®," a new drug for hemorrhoids in Japan, introduced in the same year. After being restructured as Amato Pharmaceutical Products, Ltd. in 1950, the company has continuously manufactured and sold the same product for a century. In the categories of medicinal pharmaceuticals and OTC pharmaceuticals for hemorrhoids, Amato Pharmaceutical holds leading positions with high market share.

In OTC pharmaceuticals, the company places importance on disseminating information to enhance health literacy along with its products. It enjoys strong brand recognition in the domestic market, and its products are well-received by customers. In medicinal pharmaceuticals, it has earned the trust of medical professionals and has developed a stable business over the long term.

Masashi Sugimoto, President of ROHTO Pharmaceutical, expressed, "We feel a significant social responsibility in inheriting Amato Pharmaceutical's hemorrhoid treatment business, which has a long tradition and solid customer trust. As one of our visions for 2030, ROHTO Pharmaceutical aims to become a leading company in OTC pharmaceuticals. Amato Pharmaceutical's products are not only a significant step toward realizing this vision but also an opportunity to leverage our overseas network, enhance our subsidiary's sales channels and marketing expertise, and achieve further business expansion. We believe this will ultimately bring joy to customers worldwide."

Ryozo Otsuki, President of Amato Pharmaceutical, commented, "Supported by a corporate group with a strong spirit of innovation in Japan and abroad, I hope to breathe new life into the 'Boraginol®' brand, bringing even more satisfaction to patients. We aim to contribute to the well-being of people and help them lead healthy and happy lives."

Number of Acquired Shares/Ownership Before and After Acquisition

Company Overview Related to this Matter

ROHTO Pharmaceutical Co., Ltd.

Amato Pharmaceutical Products, Ltd.

Schedule

Future Outlook

The impact on the consolidated financial statements of our group for the fiscal year ending March 2022 is expected to be minor, and we will promptly announce any matters that should be disclosed.

About the Licensing Agreement for the Candidate Compound (Quinolone-based Compound)

BioMimetics Sympathies identified a potential treatment for COVID-19 with inhibitory effects on the transcription factor FOXO1, which plays a crucial role in the regulation of gene expression for ACE2 and TMPRSS2. This discovery led to the identification of candidate compounds with FOXO1 inhibitory properties, and one of these compounds, a Quinolone-based compound, is the subject of the licensing agreement announced today.
This compound is groundbreaking as it effectively suppresses the gene expression of both ACE2 and TMPRSS2, which are essential for the entry and infection of the novel coronavirus into human cells. While previous drugs targeted either ACE2 or TMPRSS2 individually, this compound has the unique ability to inhibit both. Going forward, ROHTO Pharmaceutical and BioMimetics Sympathies will collaborate on the joint development of this compound and explore its commercialization.

About "RB+" – Translating Regenerative Medicine Research into Novel Drug Targets

To extend the methodology used to identify candidate compounds for the treatment of COVID-19 from regenerative medicine research to the development of treatments for other diseases, ROHTO Pharmaceutical and BioMimetics Sympathies are launching a new research and development organization called "RB+." "RB+" will aim to unravel the treatment mechanisms for many diseases targeted by mesenchymal stem cells in the near future, discover previously unknown drug targets, and involve other companies through open innovation to accelerate efforts towards practical applications of treatments.

About BioMimetics Sympathies Co., Ltd.

Glossary

• Mesenchymal stem cellsCells with the potential to differentiate into osteoblasts, fat cells, cartilage cells, and other cell types. They are sometimes referred to as mesenchymal stromal cells because it is unclear whether they function as stem cells in their tissue of origin.
• Transcription factorsA group of proteins that specifically bind to DNA and control gene expression.
• FOXO1: A transcription factor.
• ACE2: A protein that cleaves the spike protein of the novel coronavirus bound to ACE2, essential for infection.
• TMPRSS2: A protein that activates a spike protein that is critical for infection by cleaving the spike protein of a novel coronavirus bound to ACE2, essential for infection.
• Spike proteinA protein on the surface of the novel coronavirus that binds to human cell surface proteins.

Reason for Stock Acquisition

Olympus RMS was founded in December 2008 and has been primarily engaged in research and development of treatment methods using autologous cultured chondrocyte transplantation. Currently, clinical trials using the CCI (Cultured Chondrocyte Implantation) kit developed by the company have been underway since November 2018, targeting cartilage defects in knee joints. This CCI kit aims to achieve minimally invasive treatment by using a tissue adhesive (fibrin glue).
This stock acquisition is aimed at adding the orthopedic surgery field to our portfolio of regenerative medical products and accelerating the establishment of regenerative medicine as a future pillar of our business. Furthermore, we expect synergies in the R&D field between Olympus RMS and our cell manufacturing technology, leading to reduced cell manufacturing costs and the creation of new, unique pipelines. We are committed to delivering excellent regenerative medical products to patients and healthcare professionals as quickly as possible, contributing to the field of healthcare.

Overview of Olympus RMS Corporation

Overview of the Company after Stock Acquisition

Future Outlook

The impact on our consolidated performance for the fiscal year ending March 2021 is minimal, and we will promptly inform you if there are any matters that need to be disclosed in the future.

Glossary

• Sjogren's syndrome

  Sjögren's Syndrome: An autoimmune disease characterized by organ-specific symptoms resulting from an imbalance in the immune system, affecting organs such as the tear and salivary glands. In the field of ophthalmology, it is known to worsen due to impairment of the tear glands, leading to dry eye symptoms.
  

• Tyrosine Kinase

  A group of enzymes that add phosphate groups to the amino acid tyrosine, which is a component of proteins. They play a vital role in cell proliferation, survival, development, and differentiation and are a collective term for enzymes that play a crucial role in immune signal transduction within cells.
  

About JT Inc

JT Inc. is a global tobacco manufacturer, with its products being sold in over 130 countries and regions. In addition, the company is engaged in pharmaceutical and processed food businesses, conducting various business activities. JT Inc. primarily leads research and development in the areas of "sugar and lipid metabolism," "immunity and inflammation," and "viruses," with its subsidiary Torii Pharmaceutical Co., Ltd. responsible for manufacturing and sales functions in Japan.
For more information, please visit. https://www.jti.co.jp/

(Photo left: Current Ueno Techno Center, Photo right: Conceptual drawing of the new factory building)

Background of Expansion

In response to the growing trend of self-medication and increased demand for high-quality over-the-counter pharmaceuticals and high-performance skincare products in the beauty segment, ROHTO Pharmaceutical has decided to construct a new factory building to meet these expanding needs. The new factory, compared to the existing facilities, will enable a 1.5-fold increase in production capacity. The new factory will utilize IoT and AI technologies, advancing the initiatives ROHTO Pharmaceutical has undertaken for workstyle reform and environmentally-friendly practices. It aims to be a "smart factory" that aligns with both the concept of being "friendly to both people and the environment."

Key Features of the Smart Factory Building

People-Friendly Factory

Ensuring the safety and efficiency of workers through collaboration between robots and humans

Establishment of a centralized management system that utilizes IoT devices such as omnidirectional cameras and sensors to detect abnormal behavior, unauthorized entry into hazardous areas, and proximity to manufacturing equipment, notifying not only the workers themselves but also management in real-time to prevent workplace accidents.Introduction of collaborative robots to create production lines that leverage the strengths of both humans and robots, aiming to eliminate waste and streamline work processes.

Enhancing Productivity Through IoT and AI

Achieving increased productivity through digitalization using IoT and AI technologies that visualize people, equipment, and processes, ensuring stable product quality and process efficiency. Data collection on human activities, movement patterns, and physical strain using sensing technology based on quality, cost, and delivery requirements. This data will be further enhanced in the virtual space using AI and deep learning, allowing for simulations of work, movement patterns, line configurations, and strain. This will lead to standardized work processes, enabling the production of high-quality products consistently.

Environmentally-Friendly Factory

(Photograph: Mechanism of geothermal utilization)

Reducing energy consumption by 20% compared to the existing factory through the utilization of renewable energy sources such as geothermal energy※２, solar power, and the introduction of energy-efficient equipment. The transition to eco-friendly materials will also be carried out progressively.

Domestic and International Production Base

The new factory building will serve as a production base not only for domestic production but also for overseas markets. It will establish a quality assurance system compliant with PIC/S GMP (Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-operation Scheme) in both the existing and new factory buildings.

About Ueno Techno Center

The Ueno Techno Center, which began operations in 1999 and has now been in operation for 20 years, produces ROHTO Pharmaceutical's flagship products, including V ROHTO Premium eye drops, and skincare products such as Hada-Labo Gokujyun Lotion. It serves as a mother factory, responsible for quality control and logistics.

Address: 7-3 Yumegaoka, Iga City, Mie Prefecture, 518-0131
Phone :0595-26-2111

"DW-1001" was introduced to Japan by DWTI in 2015 from a UK-based company, and it has been under consideration for formulation and other developments. Please note that the specific disease targeted by this treatment remains undisclosed.

With the signing of this agreement, ROHTO Pharmaceutical will now take over the development of DW-1001 for the treatment of specific ophthalmic diseases in Japan, commencing with non-clinical trials..

We are actively exploring opportunities in the medical pharmaceuticals business and have been conducting various research activities in the field of ophthalmology. Moving forward, we will continue to provide products and services that benefit healthcare professionals in the ophthalmology sector and contribute to the eye health of individuals.

It is worth mentioning that the impact of this agreement on our current fiscal year's performance is expected to be minimal.

About DWTI

Reason for Share Acquisition

Nihon Eyedrops Research Institute is a company established in 1961, primarily engaged in the manufacturing and sale of medical ophthalmic eyedrops. Since its founding, the company has continued its research and development of "eye-friendly eyedrops," featuring the "PF Delami Container" for preservative-free eyedrops and a stable production system supported by advanced manufacturing technology, as well as a nationwide distribution network to ophthalmologists.
The purpose of this share acquisition is to synergize the technical expertise of Nihon Eyedrops Research Institute in areas such as the "PF Delami Container" and various ophthalmic eyedrops with ROHTO Pharmaceutical's strength as a leader in over-the-counter eyedrops. We aim to develop and introduce outstanding ophthalmic products that are unique and expand our business not only domestically but also in the international ophthalmology field.
Leveraging Nihon Eyedrops Research Institute's foundation and track record as a manufacturer and distributor of medical ophthalmic products, we intend to use this opportunity to enter the field of future medical pharmaceuticals and provide products and services that benefit healthcare professionals in the ophthalmology sector, contributing to eye care for people around the world.

Overview of the Parties Involved

Schedule

Future Outlook

The impact on our group's consolidated performance for the fiscal year ending March 2020 is expected to be minimal. We will promptly announce any matters that should be disclosed in the future.

Overview of ROHTO Advanced Research Hong Kong Limited

Overview of Rohto Medical China Co., Ltd.

Purpose of the Joint Research

1. 1. Discovery new health materials by research the functionality of unique materials from Mie Prefecture and ROHTO Pharmaceutical
2. 2. Reevaluate "Traditional Medicine" (Honzo-gaku),originating from Mie Prefecture with modern technology to establish it as a new field of health science
3. 3. Combine the academic knowledge of Mie University with ROHTO Pharmaceutical's expertise to contribute to the regional revitalization of Mie Prefecture

Joint Research Details

Joint Research Details: Mie Prefecture boasts the lowest obesity rate in Japan and ranks 8th for women and 10th for men※１ in terms of healthy life expectancy. The region has around 100 unique food materials, such as Shakuyaku, which have been traditionally considered beneficial for health and supported lives of local people. In this joint research, the functionality of these unique food materials from Mie Prefecture will be explored. Specifically, the study will reevaluate the "Traditional Medicine"(Honso-gaku) developed by Mie Prefecture figures such as Genjyo Noro, Shohaku Niwa etc. to adapt it to modern times and establish it as a new field of health science. “Aqua Ignis Taki” in Taki Town, Mie Prefecture, set to open in February 2020, is one of the facility's concepts that includes the dissemination of academic knowledge and the provision of herbal baths and health products.
Mie University is a pioneer in the field of zebrafish research worldwide, possessing various disease prevention models that yield effective results in a short time. By utilizing zebrafish for the exploration and research of ROHTO Pharmaceutical's proprietary development materials, new functionalities will be able to add to ROHTO Pharmaceutical's unique materials.