Standard Chem & Pharm Group has maintained its position as the most profitable pharmaceutical group in the first three quarters, driven by the combined efforts of the parent company and its subsidiaries. During a financial briefing on the 14th, Chairman Tzu Ting Fan stated that with progress in overseas markets such as Japan, China, and Southeast Asia, the group’s revenue growth is expected to remain in single digits next year, while profitability will be sustained.
In the first three quarters, all subsidiaries performed among the top tier of biotech companies in profitability. Syn-Tech, which focuses on APIs, achieved an EPS of NT$6.77, surpassing last year’s full-year figure of NT$5.63 and setting a new annual profit record ahead of schedule. Health supplement company Sheng-Chan posted an EPS of NT$6.71, while Standard Chem & Pharm recorded after-tax net profit of NT$1.014 billion, a 1.88% increase year-on-year, with an EPS of NT$3.84.
Fan explained that the Trump administration’s policies had limited impact on Taiwanese pharmaceutical companies due to their relatively small presence in the U.S. market. However, rising costs such as electricity and wages have posed challenges. For example, electricity price increases alone have added NT$10 million in annual expenses. Coupled with reductions in National Health Insurance (NHI) reimbursement rates, the company has been actively focusing on expanding overseas markets.
In Japan, two products for pain relief and bronchiolitis are being stably shipped. This year, two CDMO agreements were signed for drugs targeting ADHD and pulmonary arterial hypertension, with Standard Chem & Pharm responsible for R&D and production and the Japanese partners handling local sales. Milestone payments are expected after the drugs reach the market. Additionally, a new gout drug licensed from Japan for sale in Taiwan is in the documentation stage, targeting approval by Q4 2025. A generic nasal spray is also expected to gain approval by 2026.
In Southeast Asia, the company has obtained over 100 drug approvals, contributing approximately NT$300 million annually. Leveraging the population dividend of ASEAN countries, it has established a marketing team in the Philippines and a subsidiary in Vietnam. The drug registration process is also being expedited, with applications submitted as soon as bioequivalence (BE) trials are completed.
In Taiwan, Fan highlighted the NHI Administration’s recent proposal to grant the first two generic drugs approved after patent expiration the same reimbursement rates as the original drugs. If finalized by the end of this year, Standard Chem & Pharm is well-positioned to benefit. The company has identified seven high-demand drugs with patents expiring between 2025 and 2031. Two of these, with patents expiring next year, have already been approved and are ready for launch, allowing the company to capitalize on this opportunity.
Resource: 生達集團坐穩製藥獲利王
