Rohto Pharma to issue bonds, buy back shares

Rohto Pharmaceutical (TSE:4527) announced plans to issue zero-coupon euro-denominated convertible bonds due in 2032, aiming to raise approximately ¥25 billion. The funds will be allocated towards strengthening research and development in core OTC, skincare, and functional food segments (¥6 billion), refinancing debt related to the Eu Yan Sang acquisition (¥14 billion), and funding a share repurchase program (¥5 billion). Concurrent with the bond issuance, Rohto is initiating a share repurchase program, targeting up to 2.43 million shares, representing 1.07% of outstanding shares, for a total of ¥5 billion between February 27 and April 30, 2025. The move seeks to improve returns on equity and earnings per share and counter potential dilution from the convertible bond issuance. The bond's conversion price will have conversion restrictions until December 15, 2031. The company aims to improve its capital structure and facilitate long-term strategic investments.