Specialty generic pharmaceutical company Lotus Pharmaceutical is set to see significant growth in sales of its high-margin leukemia drug in the U.S. this year, with peak shipments expected in Q2 and Q3. Another batch is scheduled for delivery in May and June, indicating strong Q2 operations. Eyeing the rapid growth of the Southeast Asian pharmaceutical market, Lotus Pharmaceutical plans to accelerate its expansion through acquisitions. Currently evaluating multiple acquisition opportunities related to products, sales, or manufacturing, the company aims to finalize at least one deal by the end of this quarter. Additionally, Lotus Pharmaceutical will decide by late June to July whether to proceed with the co-development of the NRX-101 bipolar disorder treatment.
Lotus Pharmaceutical’s outlook for this year is positive. During the investor conference on the 16th, the management highlighted that sales of the leukemia drug Lenalidomide are expected to grow significantly, with peak shipments in Q2 and Q3. The exact shipment timings may be adjusted based on the demands of sales partners and production schedules. In addition to the April shipments, a second batch is planned for May and June, which is anticipated to drive significant revenue growth for Q2.
Regarding addiction treatment drugs, Lotus Pharmaceutical experienced a loss in market share in Q1, leading to reduced revenues in the U.S. This was primarily due to the entry of a fourth generic competitor, resulting in a revenue decline of 200-300 million NTD compared to the previous year. However, the price drop was not as severe as expected, and the market has since stabilized. The top three competitors now hold approximately 80% of the market, with the other two holding 20%. The original manufacturer, which maintained a market share of over 30% for the past three years, has begun to see a decline. Lotus Pharmaceutical aims to capture this market share in the second half of the year.
New growth drivers include the launches of Pomalidomide and Enzalutamide in Europe in Q4, and Nintedanib in Canada, with plans for additional markets in 2025. Expanding sales regions for key products like Lenalidomide, Qysima, Alimta, Cialis, and others continue to drive revenue growth.
In the Southeast Asian market, Lotus Pharmaceutical notes this region is the fastest-growing within the Asia-Pacific, with increasing health awareness spurring rapid pharmaceutical market growth. With a projected compound annual growth rate of 6.2% from 2024 to 2028, the region lacks high-quality medical products, and the market is fragmented without clear industry leaders. The influence of traditional pharmaceutical giants from China and India is limited in this region. Lotus Pharmaceutical plans to transfer its successful strategies to Southeast Asia, using acquisitions to fuel growth. Currently, multiple acquisition targets related to products, sales, or manufacturing are under evaluation, with one deal likely to be finalized by the end of this quarter. The local government approval process is expected to take 2-3 months.
As for the NRX-101 co-development project, a decision on whether to proceed is expected by late June to July. Data collection and analysis are ongoing. Lotus Pharmaceutical has received Phase II data from the partner, which is currently being analyzed and validated by an independent consulting firm to determine the market potential. A decision on participating in the development will follow this analysis, expected by late June to July.
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