TSH Biopharm Corp. Ltd. is bolstering its efforts in nurturing a golden goose! Following last year's acquisition of Chuang Yi Biotech co. ltd. to gain controlling interest, General Manager Yang Hsi-yuan revealed during a press conference on the 25th that they have acquired 51% equity in Top Pharm. Medicalware Co. Ltd. for 2.57 billion yuan. It is anticipated that this year, the core business and contributions from the golden goose will each account for about 50% of the revenue, with analysts optimistic about the possibility of annual revenue challenging the 1.2 billion mark.
Actively strengthening its distribution channels and enhancing sales competitiveness, TSH Biopharm, which spent 160 million yuan last year to acquire over half of Chuang Yi Biotech co. ltd.'s equity, thus igniting the growth potential of Golden Goose No. 1, recently acquired over half of Top Pharm. Medicalware's equity for 2.57 billion yuan to initiate the layout of Golden Goose Project No. 2.
Yang Hsi-yuan stated that since the initiation of Golden Goose Project No. 1 - the inclusion of Chuang Yi Biotech co. ltd. Biotechnology last year, the age range of products has extended from the elderly to young children, also expanding its reach to 3,700 clinics and pharmacies province-wide. Furthermore, preventive medicine has been integrated as one of its core products, propelling the combined revenue to a historic high of 810 million yuan in 2023.
This year, TSH Biopharm is partnering with Top Pharm. Medicalware, also dedicated to the elderly market sector. They aim to gain access to professional sales teams and distribution channels. Top Pharm. Medicalware owns a leading brand of oral hyaluronic acid, focusing on prescription drugs for chronic diseases and sales through orthopedic channels. With stable profits over the years, its revenue reached approximately 300 million yuan last year, with an expected double-digit growth rate in future revenue.
Yang Hsi-yuan expressed that through Golden Goose Project No. 2, TSH Biopharm aims to deepen cooperation with Top Pharm. Medicalware, hoping to achieve mutually beneficial results, expand the sales territory to seize the 300 billion yuan market opportunity of the elderly, increase the proportion of self-funded sales, and jointly enhance the group's operational performance.
As Golden Goose Project continues to develop, Yang Hsi-yuan stated that through this strategy, investing in potential companies to become part of the group will accelerate regional expansion efforts, further expanding the sales territory, and enhancing inorganic growth operational performance.
Furthermore, TSH Biopharm's organic growth momentum mainly comes from new combinations of lipid-lowering drugs. As the previously out-of-stock new self-funded drug for angina pectoris returns to the market, it is expected to contribute to revenue this year. If NGS testing is approved for health insurance reimbursement in May, it is estimated to not only drive growth in self-funded testing but also account for 5% of health insurance market share.
Analysts indicate that in addition to the effectiveness of TSH Biopharm's innovative business model - the dual-engine strategy, this year's core business revenue is expected to reach 600 million yuan, while contributions from Chuang Yi Biotech co. ltd. and Top Pharm. Medicalware are estimated at approximately 300 million yuan each. This sets the stage for a revenue challenge of 1.2 billion yuan by 2024, driven by Top Pharm. Medicalware.
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