Panion & BF Biotech has seen its influenza detection market share surge to number one, with a doubling of performance in the first half of the year. Health supplements also grew nearly 40%, propelling revenue growth to a 14.32% increase in the first seven months of the year. As the flu season approaches in the second half, the momentum from these dual growth engines is expected to continue. Additionally, the new liquid oral formulation of their renal drug Nephoxil, designed for treating kidney disease in pets, is expected to launch later this year, providing further growth impetus. Regarding active pharmaceutical ingredients (APIs), the company has expanded its production line with a maximum annual capacity of 100 tons. The efficacy validation is underway this quarter, and they plan to submit it for regulatory approval this year, aiming to secure supply agreements with partners by next year.
For the first half of the year, Panion & BF Biotech reported revenue of NT$1.005 billion, representing a year-over-year growth of 14.49%. The gross profit margin stood at 53.31%, with operating profit reaching NT$93.53 million, a year-over-year increase of 64.14%. Net profit after tax was NT$63.98 million, up 60.22% year-over-year, translating to earnings per share (EPS) of NT$0.75. Cumulatively, revenue for the first seven months of the year was NT$1.135 billion, a year-over-year increase of 14.32%.
The growth in the first half was primarily driven by diagnostic reagents and health supplements. The market share for Panion & BF Biotech’s influenza detection kits has risen to number one, with second-quarter revenue growing 51% year-over-year, and a 109% increase for the first half, doubling the revenue contribution to 6%. The performance has already surpassed last year’s total. Health supplements saw an 8% increase in second-quarter revenue, with a 38% growth in the first half, raising their revenue share from 14% to 17%.
Royalties and milestone payments from Nephoxil increased by 23% in the second quarter and 16% in the first half, contributing 23% to total revenue. In the key U.S. market, the performance of the licensed partner Akebia strengthened in the second quarter, narrowing the year-over-year decline to 2.4%. The company expects stable growth in this market, with full-year revenue trends similar to last year. Recently, Panion & BF Biotech successfully signed a multi-year TDAPA contract starting in 2025 with one of the largest dialysis organizations in the U.S. (BTIG). The Japanese market also saw growth, driven by the widespread use of prescriptions for iron deficiency anemia, offsetting the negative impact of drug price adjustments, with second-quarter revenue growing by 5.5% year-over-year.
However, the company’s licensing partner, Korea’s Kwang Dong Pharmaceutical (KKKR), will terminate its licensing and exclusive distribution agreement in February next year due to its parent company’s restructuring of its Asia-Pacific business. Nephoxil was launched in Korea in the second quarter of last year, and its sales in the first half of this year accounted for approximately 2% of Panion & BF Biotech’s consolidated revenue. The company will work with KKKR to find a new partner to ensure stable sales of Nephoxil in the local market.
Nephoxil continues to expand its market applications, with the 1,000 mg tablet formulation for pre-dialysis patients already undergoing preparations for drug market approval and parallel health insurance reimbursement review. The oral liquid formulation for treating pet kidney disease is expected to launch in the second half of the year, providing new growth momentum. The drug is also expected to be launched in the Thai market in the third quarter of this year.
In terms of APIs, the company has completed the upgrade of its basic production line to an annual capacity of 10 tons. The expansion of the production line to a maximum annual capacity of 100 tons is ongoing, with a trial run conducted last quarter. Efficacy validation is being conducted this quarter, and the company plans to submit it for regulatory review by the relevant authorities, including TFDA, and add it to the U.S. Drug Master File (US DMF). The company aims to secure supply agreements with partners by next year.
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