Lotus Pharmaceutical, a specialty pharma company, is experiencing rapid growth in the Southeast Asian market. With the acquisition of Alpha Choay and expansion of its business in Thailand, the company aims to double its Southeast Asia revenue to NT$2.2 billion by 2025. In addition to this market expansion, three licensing agreements for innovative products are expected to be finalized next quarter. Lotus is also pursuing two brand acquisitions, likely to be completed by mid-2025, and is advancing two larger-scale M&A projects, targeting concrete progress in the second and fourth quarters. A previously confirmed product acquisition in Vietnam is also set to be completed soon.
The three upcoming licensing agreements involve new chemical entities (NCEs) or 505(b)(2) innovative drugs for the Asian market. These include medications for attention deficit hyperactivity disorder (ADHD), Parkinson’s disease, and presbyopia eye drops. All three products have either received approval from the U.S. FDA and the European EMA or are currently under review. The combined peak sales potential in Asia is estimated at US$60 million. Lotus expects to finalize the licensing deals in the second quarter and begin the standard drug registration process in Asia in the fourth quarter.
On the acquisition front, Lotus is working on two brand acquisitions, with plans to complete them between mid and late 2025. Updates will be provided when the timing is appropriate. At the same time, the company is making progress on two larger-scale mergers, aiming for definitive developments in the second and fourth quarters. Additionally, a product portfolio acquisition in Vietnam is scheduled to be completed by the end of Q1 or early April 2025. This deal, originally expected to close in Q4 2024, was delayed, and the estimated peak annual sales of the acquired products are around US$11 million.
In 2024, Lotus generated NT$1 billion in revenue from Southeast Asia, marking a NT$270 million increase over 2023, largely driven by the consolidation benefits following the acquisition of TEVA Thailand in August 2024. With continued expansion in Thailand and the Alpha Choay acquisition contributing over US$20 million in annual revenue, Lotus is set to double its Southeast Asia revenue in 2025, targeting NT$2.2 billion.
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