Bora Pharmaceuticals and Tanvex BioPharma (Tanvex-KY) both announced on the evening of the 26th that they will be temporarily suspending trading as of the 27th due to significant pending announcements, with approval from the Taiwan Stock Exchange. Market speculation suggests that this suspension may be related to a potential merger, collaboration, or equity exchange between the two companies, possibly with Bora acquiring a controlling stake.
In recent years, Bora Pharmaceuticals has been expanding its group size through acquisitions. In the second quarter, the company saw a significant boost in profits following its acquisition of the U.S. pharmaceutical company Upsher-Smith Laboratories (USL), recording a net profit of NT$1.214 billion, a 73% year-over-year increase, with an earnings per share (EPS) of NT$11.61 for the quarter. The first-half EPS reached NT$18.68, solidifying Bora’s position as a leader in biotech profitability.
In April, Bora completed the acquisition of Upsher-Smith Laboratories, the largest pharmaceutical manufacturer in Minnesota, adding two facilities to increase their oral solid dosage production capacity. In August, Bora further expanded by acquiring a sterile injectable manufacturing facility in Camden, Maryland, from Emergent BioSolutions. This new facility will be utilized to support clients in the development and commercial production of biotech drugs.
Tanvex-KY currently operates by advancing both its proprietary products and its contract development and manufacturing organization (CDMO) services. Earlier this year, its first biosimilar drug, Nypozi, launched in Canada. Following FDA approval at the end of June, Tanvex is now pursuing a second U.S. drug license for TX05. TX05, their second self-developed biosimilar, is modeled after the reference drug Herceptin, and is primarily indicated for breast and gastric cancers. After successfully completing a Phase III clinical trial, Tanvex filed for FDA approval in August 2021.
The relationship between Bora’s chairman, Bobby Sheng, and Tanvex-KY’s founder, Allen Chao, runs deep. In 2022, the two partnered with Taishin HealthCare Fund to jointly invest in Bora. Bora also invested $50 million USD (over NT$1.5 billion) to acquire the Taiwan-based assets of Eden Biologics (formerly JHL Biotech), thereby expanding the group's operations from small molecule drugs to include large molecule biologics.
Moreover, Bobby Sheng’s acquisition of Impax’s business in 2018 was also influenced by Allen Chao. Sheng recalls receiving an unexpected call from Chao at a U.S. airport, urging him to acquire the Epinephrine Auto-Injector business from Impax, as it would benefit Bora’s future development. Trusting Chao’s industry insight, Sheng swiftly initiated the acquisition. Bora successfully acquired the business, despite not being the highest bidder, for NT$550 million, along with securing a five-year manufacturing contract, a move that shocked the biotech industry and set the stage for Bora’s subsequent international acquisitions.
Given the close relationship between the two companies, there has been ongoing speculation in the market about a potential acquisition of Tanvex by Bora. With Tanvex’s first biosimilar drug, Nypozi, launched in Canada earlier this year and receiving FDA approval at the end of June, the company is now entering a phase of harvesting the fruits of its efforts, which could increase its valuation. This makes the timing ideal for Bora to consider a merger, equity exchange, or acquiring a controlling stake in Tanvex, a move that would be seen as beneficial to the industry.
Resource (mandarin): 合併有譜？保瑞、泰福暫停交易
