On May 28, TaiMed held its shareholders' meeting, where Chairman Nien-Yuan Chang announced that their HIV drug, Trogarzo, has begun generating positive operating cash flow. Since the beginning of this year, the company has signed regional contracts with multiple partners, providing growth momentum for the upcoming year. TaiMed plans to continue forging alliances with partners across different regions to expand its sales channels and further enhance its operations.
Chang emphasized that TaiMed has developed a comprehensive strategy encompassing short, medium, and long-term research and development projects. Additionally, the company's Zhubei facility has passed an FDA inspection, starting to contribute revenue from contract development and manufacturing organization (CDMO) services.
Short-term strategy
In the short term, Trogarzo has already created positive operating cash flow. Starting in 2024, TaiMed has signed exclusive sales agreements with AcedrA, WuZhou Pharmaceuticals, and Orient EuroPharma for the Middle East-North Africa, Hong Kong-Macau, and Taiwan regions, respectively. These agreements are expected to positively impact TaiMed's overall profitability and long-term value. From 2025 onward, the company anticipates significant revenue growth and plans to continue seeking potential regional partners to expand Trogarzo's market presence.
Medium-term strategy
For the medium term, TaiMed is focusing on the long-acting TMB-365/380, targeting frontline HIV treatment. The phase 1b clinical results were presented at the Conference on Retroviruses and Opportunistic Infections (CROI), attracting significant attention from major pharmaceutical companies and the medical community. This project entered phase 2a clinical trials earlier this year, with results expected to be published by the end of this year or early next year. If the outcomes meet expectations, phase 2b trials are slated for next year, along with ongoing discussions with major pharmaceutical companies for potential licensing agreements.
Long-term strategy
In the long term, TaiMed is focusing on Antibody-Drug Conjugates (ADC) development. Chang explained that TMB-365 has a high binding specificity to CD4 cells, making it an ideal carrier for anti-HIV drugs. TaiMed's ADC technology combines a monoclonal antibody highly specific to CD4 cells with an anti-HIV drug. Upon binding with CD4 cells, the ADC internalizes and releases the anti-HIV drug, inhibiting viral replication. Unlike ADCs used in cancer treatment, TaiMed's ADC technology serves both as a viral drug carrier and an effective HIV entry inhibitor.
CDMO business progress
Regarding CDMO business, TaiMed's Zhubei cGMP protein plant passed the U.S. FDA inspection, generating approximately NT$30 million in CDMO revenue in 2023. Several potential clients are currently in discussions, and the company expects to generate more CDMO revenue in 2024.
Financial performance and capital raising
TaiMed's first-quarter financial report for this year showed an operating revenue of NT$179 million, a year-over-year increase of approximately 150%. The net loss for this period was NT$16.04 million, an 80% reduction compared to the same period last year. The net loss per share was NT$0.06, nearing breakeven.
To support the phase 2 clinical trials of TMB-365/380 and prepare for the critical phase 3 trials, TaiMed completed a cash capital increase in the first quarter of this year, raising NT$1.64 billion. This increased the net asset value per share to NT$15.42, significantly improving the company's financial structure and aiding future licensing negotiations.
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