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Taiwan Liposome Company (Formosa Laboratories), a leading CDMO and raw material pharmaceutical manufacturer, has reported impressive achievements this month. The company announced that its May revenue reached NT$455 million, marking a historical high for the same period and the third-highest monthly revenue on record. This represents a 41% month-over-month increase and a 38% year-over-year increase. Additionally, Formosa Laboratories’s subsidiary, Taiwan Liposome Company New Drug (Formosa Pharmaceuticals), has received approval from the Taiwan Stock Exchange for its IPO, pending board approval, with expectations to go public in the second half of the year.
Formosa Laboratories's announcement highlights that the strong demand for its primary product, cholesterol phosphate binders, drove the revenue surge, which saw a 22% month-over-month increase and a 44% year-over-year increase. Sales of steroid products contributed NT$70-80 million to the revenue. Furthermore, sales of CDMO services and respiratory system medications also heated up, with annual growth rates of 58% and 19%, respectively.
The demand for cholesterol phosphate binders has been robust due to the increased penetration of generic drugs in recent years. This demand led to a 25% capacity expansion at the end of last year, with orders fully booked and an average capacity increase of 15-20% compared to last year. In the CDMO sector, Formosa Laboratories serves clients from Europe, America, China, and Taiwan, with ADC drugs now accounting for 20-30% of CDMO revenue. To support future growth, Formosa Laboratories is expanding its ADC production capacity fivefold, with completion expected in the third quarter. Recently, Formosa Laboratories also completed the acquisition of North American CDMO company Synchem, aiming to accelerate its market expansion in the U.S. and secure more opportunities from Chinese companies developing drugs in the U.S.
Looking ahead, steady growth is anticipated in cholesterol phosphate binders, vitamin D derivatives, and respiratory system medications. CDMO business is also recovering from its trough. Moreover, Formosa Laboratories’s generic injectable drug Eribulin is expected to obtain U.S. market approval in the third quarter, which is projected to be a new growth driver, with an estimated EPS of NT$7.19 for this year.
Formosa Pharmaceuticals, Formosa Laboratories’s subsidiary, has also had a string of successes this year. Its ophthalmic new drug APP13007 received FDA approval for market entry in March, with sales expected to begin mid-year. Formosa Pharmaceuticals’s market presence is expanding beyond the U.S., having secured a licensing agreement with Cristalia in Brazil and granting exclusive rights to Tabuk Pharmaceuticals for commercial sales in major markets in the Middle East and North Africa.
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