According to Economic Daily News, Handa Pharmaceuticals Inc., a biotech stock set to debut on the OTC market, announced on the 7th that its application for listing has been approved by the board of the OTC Exchange, and it will officially go public in the near future. Handa stated that three drugs, including the high-technical-threshold generic drug HND-002 for gastroesophageal reflux disease, the new drug HND-020 for multiple sclerosis, and the anti-cancer drug HND-033, are expected to boost the company's business growth this year.
Handa recently released its financial report for last year, showing a revenue of NT$1.106 billion in 2023, a year-on-year increase of 459.66%. The gross profit margin was 99.9%, the operating profit margin was 62.7%, and the earnings per share were NT$5.41, marking a turnaround from losses to profits.
General Manager Chen Chun-liang stated that the company focuses on "high-technical-threshold generic drugs" and "505(b)(2) new drugs" as its dual engines. Based on a stable cash flow foundation, the company aims to maximize profits from new drugs and expects to obtain new drug authorizations every year. After offsetting accumulated losses, nearly 80% of the remaining earnings will be distributed, with a cash dividend of NT$1 per share announced.
In terms of new drugs, there are three pathways for drug approval by the U.S. Food and Drug Administration (FDA): new molecular entity drugs, 505(b)(2) new drugs, and generic drugs. Handa has been focusing on the development of 505(b)(2) drugs since 2016, adopting a unique operating model that focuses on developing and licensing 505(b)(2) new drugs to earn drug royalty and milestone payments, without involvement in manufacturing, sales, or marketing. This asset-light and high-licensing fee business model is reflected in the 2023 financial report, with a debt ratio of only 9.3% and no debt issuance. Additionally, on average, each employee contributes revenue of over NT$30 million, demonstrating Handa's success in achieving fruitful results with a streamlined team, making it a leader in intellectual property in the biotech industry.
Chen Chun-liang pointed out that the threefold increase in revenue for Handa in 2023 was driven by HND-002, which captured approximately 40% of the U.S. market that year. It is expected to continue to contribute to stable cash flow this year. Although there are competitors seeking authorization, the impact on Handa is currently considered limited.
Another drug from Handa, HND-020, is a reformulation of Novartis's blockbuster drug Gilenya Capsules, with the original difficult-to-swallow capsules being transformed into orally disintegrating tablets. With the support of patient care programs, the number of patients using the drug has been steadily increasing month by month. The anti-cancer drug HND-033 is currently undergoing active preparation for supplementary filing.
Handa has a capital of NT$1.41 billion, and Chairman Liu Fang-yu holds a Ph.D. in Industrial and Physical Pharmacy from Purdue University in the United States. With long-term experience in the U.S. biotech industry and deepening cooperation with Taiwan's industry in recent years. General Manager Chen Chun-liang has approximately 30 years of experience in the biotech industry and has served as Chairman of Hua Ray Biopharmaceuticals and General Manager of TTY Biopharm, demonstrating solid leadership and expertise. They will lead Handa to establish itself in Taiwan and expand globally, marking the next milestone in the company's journey.
Resource (Mandarin):
