On the 8th, Sunny Pharmtech's board approved the financial report for the first half of 2024. The company benefited from increased demand for the anti-infective drug NFT-C and the multi-cancer drug CPA-I, which drove sales and revenue growth. Additionally, steady contributions from the Contract Development and Manufacturing Organization (CDMO) business helped Sunny Pharmtech achieve a record high in first-half consolidated revenue, reaching NT$234 million, a year-on-year increase of 31.68%.
Looking ahead to the second half of the year, Sunny Pharmtech has five products currently undergoing regulatory review in the United States, with additional products under review in China, Taiwan, and other markets. These products are expected to receive approval and launch within the second half of the year. With continued strong demand for CPA-I and steady growth in the CDMO business, the company remains cautiously optimistic about its operational performance in the coming months.
In terms of profitability, last year’s higher base was due to a significant contribution from high-margin project milestone payments. This year, the company made adjustments to its accounting practices, reclassifying intangible assets from operating expenses to operating costs after passing FDA inspections and receiving drug approvals. As a result, the operating gross profit and gross margin for the first half of this year were lower compared to the same period last year. However, with the gradual approval and launch of new products and the expansion of operations, the company's core business and net losses have narrowed. For the first half of this year, Sunny Pharmtech reported an operating net loss of NT$48.11 million, a net after-tax loss of NT$39.29 million, and a loss per share of NT$0.26, which is a significant improvement from last year’s operating net loss of NT$52.73 million, net after-tax loss of NT$52.13 million, and loss per share of NT$0.38.
Sunny Pharmtech noted that although the financial statements still show a loss, the company’s EBITDA for the first half of this year increased by 130% compared to the same period last year. The core business operations continue to generate positive cash flow, and with the ongoing expansion of its operational scale, the company expects further improvements in operational efficiency and profitability.
The company also emphasized that its primary revenue source remains the U.S. market, where seven niche drugs are currently being sold. Since last year, Sunny Pharmtech has been expanding its global presence through the "One Drug, Multiple Approvals" model, which accelerates its operational growth.
The "One Drug, Multiple Approvals" model involves licensing the technical documentation of drugs already approved in the U.S. to partners in other countries or regions to handle regulatory approvals. Once approved, Sunny Pharmtech manufactures and supplies the products. Notably, the gynecological drug CPT-I was submitted to China's National Medical Products Administration (NMPA) for registration last year and has already been submitted for marketing authorization in the UK this year. Additionally, Sunny Pharmtech plans to submit a marketing authorization application to the United Arab Emirates this quarter. Furthermore, the multi-cancer drug CPA-I is preparing to enter the Australian market through partnerships, with final negotiations currently underway.
Since entering the CDMO business, Sunny Pharmtech has completed over 30 projects for clients both domestically and internationally, including new drug companies. In April of this year, the company signed a new manufacturing contract with an internationally renowned pharmaceutical company for a prostate cancer drug, targeting the U.S. market. Revenue from the CDMO business reached NT$48.72 million in the first half of the year, marking a 9.63% year-on-year increase. Additionally, this quarter, a multinational pharmaceutical company is scheduled to visit Taiwan for discussions on global contract manufacturing opportunities, indicating that the CDMO business's operational success is likely to continue.
Resource (mandarin): 祥翊上半年EPS -0.38元、虧損收斂 下半年拚五藥品上市
