PeptiDream implements reforms after executive misconduct

PeptiDream Inc. has announced comprehensive recurrence prevention measures following an investigation into its former director and executive vice president COO. The investigation uncovered inappropriate ordering and removal of research reagents and unauthorized acceptance of outsourced work and monetary compensation from business partners. The former executive's actions were attributed to an abuse of authority, circumvention of internal controls, and a lack of ethics.

To address these issues, PeptiDream is implementing a new integrated IT system for reagent management, organizational changes within the research administration group, and strengthened detection controls through regular monitoring, all by November 2025. Additionally, the company will enhance compliance awareness among all officers and employees, promote its internal reporting system, bolster facility security, and strengthen the supervisory functions of its board of directors and various committees, including a newly established executive leadership team.

The company will pursue legal action against the former executive to recover damages and will terminate his 8th and 9th stock acquisition rights, totaling 1,230,000 shares. Furthermore, current directors who were in office during the incidents (March 2017 to January 2025) have voluntarily reduced their compensation: the president and representative director by 20% of one month's compensation, the executive vice president and director by 10% of one month's compensation, and two outside directors serving as audit and supervisory committee members by 10% of one month's compensation.