In response to the heavy impact of Trump's tariff policies on the stock market, Bora Pharmaceuticals, the leading biotech profit maker, announced on the evening of April 8 that it will repurchase 500 shares of its own stock between April 9 and June 6, with a total buyback limit of NT$9.86 billion. The repurchase price range is set between NT$600 and NT$700 per share, with the actual buyback amount reaching a maximum of NT$350 million. This marks the first instance of a biotech company initiating a stock buyback under the pressure of the new tariff regime, and it is expected to set a precedent for others to follow.
Bora Pharmaceuticals, which has performed excellently due to the benefits of its acquisitions, reported revenue of NT$19.26 billion last year, a 35.6% year-on-year increase. After-tax net profit reached NT$3.939 billion, up 32% from the previous year, with an earnings per share (EPS) of NT$38.69. The board of directors has approved a dividend distribution of NT$16 per share, comprising NT$14 in cash and NT$2 in stock. Both revenue, profit, and dividends reached new highs, solidifying Bora's position as the profit leader in the biotech industry.
Due to its production base in the United States, Bora Pharmaceuticals was impacted by Trump's new tariff policies, and although its stock dropped sharply on April 7, it rebounded quickly on April 8, closing at NT$644, a 3.37% increase, with a trading volume of 2,224 shares. Institutional investors are optimistic that the stock buyback will stimulate further upward momentum in the stock price.
In 2024, Bora made significant acquisitions, spending a total of NT$8.58 billion to acquire USL Pharmaceuticals, Emergent BioSolutions' sterile injectable plant, and Pyros. Additionally, Bora became the largest shareholder of Taifo, expanding its manufacturing capabilities in the U.S. with complete production lines for oral solid dosage forms, injectables, and large molecule drugs, while also increasing its CDMO (Contract Development and Manufacturing Organization) orders.
Chairman Bobby Sheng stated that the company has secured new CDMO clients and, to meet order demands, Bora plans to expand its existing injectable production facility, which is not large enough to handle bulk orders such as vaccines or antibiotics. In addition to a fast-track production line expected in Q3, Bora is also considering further acquisitions of injectable plants. Furthermore, Taifo has recently expanded its capacity with two 2,000-liter single-use reactors, expected to be operational by 2026, and will also begin acquiring large molecule facilities.
To protect shareholders' interests, Bora Pharmaceuticals announced the implementation of a stock buyback on April 8, with plans to repurchase 500 shares of its own stock from April 9 to June 6, with a buyback range of NT$600 to NT$700 per share. This will be the company's third stock buyback in the past three years.
According to the announcement, Bora repurchased 300 shares out of the 400 it had declared to buy back between January 22 and March 21, 2022. Additionally, Bora repurchased 519 shares out of the 1,000 shares declared for repurchase between March 8 and May 7, 2024.
Resource: 生技第一家！保瑞實施庫藏股 擬買回500張自家股票
