Another strategic alliance has been formed within Taiwan’s pharmaceutical industry. On the 20th, Anxo Pharmaceutical announced its collaboration with Carlsbad Technology, Inc., a U.S. subsidiary of YungShin Global Holding Corporation, signing a commercialization agreement for a cardiovascular drug. The two companies will jointly expand into the U.S. generic drug market, the largest in the world, aiming to capture a market opportunity worth over $270 million.
The agreement was witnessed by Fang Hsin Lee, Chairman of YungShin Global Holding, and Lin-Chuan Yen, General Manager of Anxo Pharmaceutical. The signing ceremony was officiated by Jerry Wang, Chairman of Anxo, and Chih-Wei Chien, Chairman and CEO of Carlsbad Technology, on behalf of their respective companies.
Under the terms of the agreement, Anxo will be responsible for the formulation development of the drug, while Carlsbad Technology will handle local regulatory inspections, production, and sales. Both parties will share the development costs and split the sales profits once the product is launched. Furthermore, the agreement includes the option for Anxo's subsidiary, AUPA Biopharm, to become a second manufacturer post-launch. This move will not only enhance the resilience and competitiveness of the drug's supply chain but also expand the market presence of both companies in the U.S.
Lin-Chuan Yen commented that the U.S. is the largest pharmaceutical market in the world. Carlsbad Technology, with over 30 years of experience in the U.S., has established a comprehensive operational model from production to sales. It holds drug sales licenses in all 50 states and is integrated into the top three pharmaceutical distribution channels, which account for more than 90% of the U.S. market. As the only pharmaceutical manufacturer in California with both production and end-to-end sales capabilities, Carlsbad Tech offers a unique advantage. Yen expressed confidence that the partnership would secure a significant market share and create a win-win situation, building on the companies' successful prior collaboration in Malaysia.
Fang Hsin Lee expressed his enthusiasm for Carlsbad Technology becoming Anxo's strategic partner in the U.S. market. He highlighted Anxo's expertise in developing specialized formulations and unique process technologies, emphasizing that this collaboration will allow both companies to leverage their resources and complementary strengths, accelerating the drug's time to market.
Lee also pointed out that this partnership underscores the competitive advantages of YungShin Group’s U.S. production facilities and distribution networks. With the U.S. Congress recently passing the Biosafety Act, which limits collaborations with certain Chinese biotech companies, Carlsbad Tech is in a prime position to capitalize on this opportunity. This legislation also paves the way for deeper cooperation between the two companies, enabling them to capture market opportunities left by Chinese competitors.
Lin-Chuan Yen noted that the cardiovascular drug involved in this collaboration has already been developed and approved for sale in Taiwan, and will now undergo technology transfer to meet U.S. FDA regulations through Carlsbad Tech. According to data from IQVIA, the U.S. market consumes over 30 million units of this drug annually, with sales in 2023 reaching approximately $272 million. As the original drug’s API crystalline form patent expired in 2023, generic versions have started entering the market, although the original manufacturer still dominates. With Anxo's accumulated development expertise and Carlsbad Tech's strong distribution channels, the partnership stands a strong chance of capturing a portion of this market.
Yen also pointed out that, in the U.S., pharmaceutical companies set their own prices based on market competition and buyers' bargaining power, resulting in higher prices for generic drugs compared to Taiwan. For example, the average price of the cardiovascular drug involved in this collaboration is 4 to 30 times higher in the U.S. than in Taiwan’s National Health Insurance system. He expressed optimism that the launch of the product would positively contribute to both companies' revenue and profitability.
Resource (mandarin): 瑩碩與永信集團合作開發心血管藥物 搶攻2.7億美元商機
