Bora Pharmaceuticals's revenue in April reached a new high in nearly 14 months, totaling NT$1.643 billion, with a year-on-year increase of over 80% and a month-on-month increase of 118%, driven by the inclusion of USL's performance after the acquisition and a stabilization in the competitive landscape of the gastroesophageal reflux disease drug market. The cumulative revenue for the first four months was NT$4.5 billion, representing a year-on-year decline of 20.96%.
Bora Pharmaceuticals stated that as USL's business is still mainly focused on pharmaceutical sales in the US market, its revenue will be attributed to a part of the global market sales business, along with the Dexlansoprazole product from Angan Pharmaceutical under the USL umbrella stabilizing its market competition in April in the US, maintaining a leading market share. This contributed to the breakthrough of global market sales revenue in April, exceeding NT$1.1 billion.
Excluding the revenue from the newly acquired USL, the original business of Angan Pharmaceutical and Bora Pharmaceuticals Federation also grew by over 5% compared to the same period last year, indicating continued growth potential in the existing business.
Additionally, Bora Pharmaceuticals's global contract manufacturing CDMO business performed well in April, with revenue increasing by nearly 11% compared to March, achieving double-digit growth for two consecutive months, in line with customer project progress and shipping schedules.
As of April 1, Upsher-Smith Laboratories (USL), Bora Pharmaceuticals's US subsidiary, owns two production bases and logistics centers, with three major businesses including CDMO, branded generics, and generics. Analysts expect Bora Pharmaceuticals's operations to gradually improve in the future with the support of USL's performance.
Chairman of Bora Pharmaceuticals, Sean Pao-Hsi Sheng, stated that in the branded generics field of USL, Vigadrone accounts for over one-fifth of the revenue. Since its launch in 2018, the drug has continued to be highly prescribed by doctors with a high profit margin. Additionally, there are five rare disease products in its portfolio, and in the next three years, 22 new generic drugs will be launched, creating significant operational niches.
Analysts believe that the shareholders' equity on USL's books exceeds the purchase price, which should bring benefits to Bora Pharmaceuticals from a cost-effective acquisition standpoint. Given that the scale of this acquisition is larger than previous acquisitions like Hospira and GSK's Canadian plant, the benefits from cost-effective acquisition may be higher than before. Therefore, the timing of its inclusion is being closely watched.
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