Lotus announced on the 10th of April that its consolidated revenue for March 2024 was NT$1.15 billion, a decrease of 19.55% year-on-year. The accumulated consolidated revenue for the first quarter of this year was NT$4.198 billion, a decrease of 7.2% year-on-year. Lotus emphasized that sales of its blood cancer drug Lenalidomide in the United States will peak in the second and third quarters of this year. The drug was approved in Japan last year and has been successfully launched, with simultaneous launches in Brazil in South America and the Philippines in Asia. Lotus anticipates significant growth in the Brazilian market, primarily in Latin America, this year.
Lotus stated that its performance in Asian markets has gradually recovered from the impact of the Lunar New Year holidays since March, especially in Taiwan and South Korea. The performance in Asia has increased by about 14% compared to the same period last year. However, global export market performance has slightly declined compared to the same period last year due to differences in the timing of replenishment for blood cancer drugs and addiction drugs.
Lotus pointed out that the first-quarter consolidated revenue reached NT$41.98 billion, a 7% decrease compared to the same period last year. This decline was mainly due to the launch of two doses of Lenalidomide, 2.5 mg and 20 mg, in March last year. However, it is noteworthy that Lotus's performance in export markets outside the United States has grown by nearly 100% annually, highlighting its continuous efforts to expand markets. Lotus expects significant growth in its blood cancer drug business compared to last year in 2024.
Lotus recently presented its business outlook for the year at the invitation of the Taiwan Stock Exchange. Vice General Manager Ye Shen stated that Lotus's Lenalidomide sales in the United States will peak in the second and third quarters of this year. The drug was approved and successfully launched in Japan last year, with simultaneous launches in Brazil in South America and the Philippines in Asia. Lotus expects significant growth in the Brazilian market, primarily in Latin America, this year.
Lotus's addiction treatment drug, Buprenorphine / Naloxone, remains a major product this year. Based on the experience of 2023, Lotus will maintain an appropriate market share despite the continued competition. Although competition will not decrease, Lotus hopes to offset the decline caused by the appearance of the fourth generic drug by capturing market share from branded drugs.
In terms of new products, Lotus will launch Enzalutamide for prostate cancer and Pomalidomide for multiple myeloma in Europe this year. Nintedanib for idiopathic pulmonary fibrosis, a larger market, also has the opportunity to be launched in Europe and Canada by the end of this year. Lotus stated that the global market for Nintedanib is approximately $3.5 billion, considering it a heavyweight product in the future. However, the largest market, the United States, is not expected to launch until after the end of 2025.
Ye Shen emphasized that Lotus will gradually move towards higher-value products over the next five years, including high-threshold generic drugs, 505(b)2 drugs, and new ingredient drugs. However, Lotus will not independently develop these high-value products in the short term, mainly introducing them through licensing agreements.
Lotus remains optimistic about the sales performance of its weight loss drug, Qsymia, in South Korea this year. Ye Shen explained that although Novo Nordisk's weight loss drug, Wegovy, has the opportunity to enter the South Korean market in the second half of this year, he believes that Wegovy will not pose a threat to Lotus's Qsymia in South Korea, regardless of the sustainability of the treatment or price segmentation. Instead, competition from Eli Lilly's weight loss drug poses greater pressure on Lotus. However, it appears that the drug manufacturer's weight loss drug will not enter the Asian market in the next two to three years. Ye Shen emphasized that Lotus does not rule out introducing Qsymia to other countries, but its mechanism of action is not yet open for weight loss purposes in some countries such as Taiwan and mainland China, while Southeast Asia presents more opportunities to enter the local market.
Ye Shen also pointed out that Lotus will initiate acquisitions in Southeast Asia this year, including pharmaceutical companies and products. Besides viewing Thailand as a key base for horizontal expansion in Southeast Asia, Lotus sees potential acquisition targets in Vietnam, the Philippines, Malaysia, and even Indonesia.
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