The pharmaceutical industry has turned a corner with the launch of niche products, royalties and operation in overseas markets, and will begin a golden era in 2023- an era of high profitability. The company's profitability will reach a new high in 2023. Companies with profitability which is expected to exceed a half of its captial stock include Bora Pharmaceuticals, Lotus Pharma, Syn-Tech Chem. & Pharm., Chunghwa Chemical Synthesis & Biotech, Standard Chem & Pharm, TTY Biopharm, Panion & BF Biotech, SCI Pharmtech and Nang Kuang Pharmaceutical.
In addition, royalties generated from in-and-out licensing will be the best ever, and the biotech industry will enter a whole new generation in 2023.
According to President Capital Management, Taiwan's biotechnology has the following strengths and changes in 2023: 1) Good long-term profitability trend and much lower geopolitical risk than the manufacturing industry, which will help compete for capital; 2) the market will be looking for a new targets after those of Polaris Pharmaceuticals and PharmaEssentia; 3) the market will be more balanced with projections between high-growth-focused investors and dream finders.
Basically the pharmaceutical industry by profitability will be dominated by Bora and Lotus in 2023, while Syngen Biotech and Syn-Tech will profit well amongst their peers. The most stable sector by profitablity will be those companies supplying APIs.
Since September 2022, when its blood cancer drug was launched in the U.S., Lotus has benefited from a record NT$10.96 in EPS for the first three quarters. EPS is expected NT$18 to NT$20 for Lotus in 2023.
In 2023, Bora expects to maintain a good level of operating profit as new CDMO orders, new customers and sales of Dexilant, a generic drug for gastroesophageal reflux, grow.
Nang Kuang has already received a one-off three-year purchase from China for the anti-inflammatory drug "Medason" injection, with an estimated annual shipment of 10 million doses.
PBF's Nephoxil is no longer subject to the payment of 50% of the original inventor's sales profit due to the expiry of its global patent and the possibility of obtaining the mainland drug license in 2023 and 2024.
