ANXO, a biopharmaceutical company specializing in specialty drug formulations, is experiencing a notable surge in its operations in 2024, propelled by its strategic overseas expansion efforts. The management team anticipates significant momentum in the latter half of the year, driven by niche psychiatric drug orders from China and project bids from Hong Kong, leading to a growth rate in revenue surpassing that of the previous year. Additionally, negotiations for three collaboration projects in Japan are underway, with the earliest expected to yield results this year. Moreover, the company aims to apply for listing on the stock exchange within the same timeframe.
After achieving profitability in the first half of last year, with earnings per share of $0.14 after tax, analysts anticipate ANXO's performance in the second half of the year to outperform the first half.
Looking forward, ANXO's General Manager, Lin-qun Yan, highlighted significant developments. Firstly, the drug approval obtained in August last year for a treatment targeting moderate to severe depression in China is currently undergoing provincial-level approval. Typically, peak sales are anticipated in the latter half of this year following approval. Additionally, a contract for a kidney drug in Hong Kong, secured last year, is set to contribute significantly to revenue. Although shipment has been postponed to the latter half of this year due to slight modifications in local regulations, this contract, spanning three years with an annual value of 50 to 60 million NTD, presents a lucrative opportunity.
Lin-qun Yan is particularly bullish on prospects in Japan, where negotiations for three products are ongoing. The cooperation model involves seeking licensing partners in Japan to conduct necessary bioequivalence (BE) trials locally, while ANXO handles production. The products under negotiation include two psychiatric drugs and one pulmonary drug. Positive outcomes from these negotiations this year are expected to pave the way for collaborations, with product launches in Japan projected for two years later.
Furthermore, Lin-qun Yan highlighted promising opportunities in the Japanese pharmaceutical market, as many small and medium-sized pharmaceutical companies are considering selling due to succession and domestic consolidation issues. The company is actively exploring potential acquisition targets.
In addition to China, Hong Kong, and Japan, Lin-qun Yan noted positive developments in other markets. Thailand obtained new drug approvals last year, with continued sales growth expected this year. Similarly, Malaysia secured qualification for its first generic psychiatric drug, while negotiations for two products are underway in Indonesia.
Apart from ANXO, its subsidiary, AUPA Biopharm Co. Ltd., is also poised for growth this year. Lin-qun Yan revealed plans for two additional products to be outsourced to AUPA Biopharm Co., Ltd., by Japanese partners, with potential sales in Southeast Asian markets and potential re-entry into Japan.
