With milestone revenue from its core business and investments in new drug companies, Formosa Laboratories saw its first-quarter revenue increase by over 20% year-on-year. Analysts anticipate that both gross profit margin and operating margin from the core business will rise simultaneously. However, due to financial valuation issues with EirGenix, the company's stock price fell by 13% in the first quarter, leading to losses outside of its core operations. Nevertheless, the growth momentum from the core business this year continues to be viewed positively by the market.
Apart from its core pharmaceutical products maintaining expectations for double-digit order growth, Formosa Laboratories's injection plant has been completed. The annual production capacity of the general production line can reach 100 million doses, while the cytotoxic production line can reach 20 to 30 million doses. The cytotoxic production line has completed inspections by the Taiwan Food and Drug Administration (TFDA) and is scheduled to apply for inspections by the U.S. Food and Drug Administration (FDA) starting in May this year. Additionally, the company's first formulated product, Eribulin, is also expected to begin contributing to revenue by the end of this year.
Analysts anticipate that Formosa Laboratories's growth momentum from its core business in raw materials and formulations this year will be robust. Furthermore, losses from its subsidiary, Formosa Pharmaceuticals, which is included in its consolidated financial statements, are expected to decrease as it has applied for listing. While there may be short-term financial valuation losses due to holding 18,000 shares of EirGenix, the long-term reflection of the company's growth momentum from its core business is expected to gradually improve its valuation.
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