Formosa Laboratories announced that production capacity for its phosphate binder used in cholesterol management has already sold out this year, driving a 10% revenue increase. New vitamin D derivatives are expected to contribute a single-digit percentage growth, while steroid products entering the original drug manufacturers’ supply chains may boost revenue by up to five times. Additionally, the company is aiming to obtain U.S. approval and launch sales of its breast cancer injectable generic drug in the second half of the year. With a recovery in CDMO performance, Formosa anticipates a stronger operational growth momentum in 2025.
In 2024, the company achieved revenue of NT$4.73 billion, marking an 8% year-over-year increase. Gross margin remained steady at 42%, but net profit was impacted by non-operating losses, primarily due to a decline in the share price of TaiMed Biologics (6589), resulting in a net profit margin of only 3.4% and earnings per share of NT$1.3. As of March 2025, revenue reached NT$1.143 billion, showing a slight increase compared to the same period last year.
In terms of 2024 product revenue composition, the top four contributors were phosphate binders, vitamin D derivatives, respiratory drugs, and CDMO services. Revenue from phosphate binders grew by 4%, vitamin D derivatives by 1%, respiratory drugs by 20%, while CDMO services declined by 10%, mainly due to delayed shipments from commercial CMO clients.
APIs will remain the main driver of performance in 2025, with the company continuing to optimize yields, expand capacity, and maintain high-standard manufacturing processes. Formosa retains its leading market position in phosphate binders; respiratory drug sales continue to grow steadily; and steroid product demand is expected to remain strong thanks to its entry into the originator supply chains.
Formosa stated that all production capacity for its phosphate binder product this year has been sold out, reaffirming its global leadership. Sales of vitamin D derivatives are expected to achieve single-digit percentage growth, driven by the launch of a new product. Steroid product revenue in 2025 is projected to grow fivefold, potentially contributing nearly 10% of total revenue.
Chairman Chen-Yu Cheng noted that prospects for generic drug APIs remain promising. Growth in CDMO business—especially injectables—is considered entirely incremental. Given limited room for API capacity expansion in Taiwan, any future expansion is likely to take place overseas, with the U.S. being the top candidate.
The breast cancer injectable generic drug Eribulin Injectable has already started shipments to hospitals in Taiwan. The company is aiming to obtain U.S. regulatory approval and begin exports by the fourth quarter of this year. As CDMO capabilities and certifications mature, demand has surged, with the number of clients increasing by 30% compared to the same period last year. Growth momentum in 2025 is expected to further strengthen.
With strong performance across its three main API segments, combined with support from injectables and CDMO services, Formosa Laboratories is set for a significant rebound in 2025, with growth likely to outpace that of 2024.
Resource: 台耀主力原料藥齊步向上，2025年營運成長力度估勝去年
