Taipei, Taiwan, 8 August 2024 -- Lotus Pharmaceuticals (1795:TT; “Lotus” or “the Company”), a multinational leading pharmaceutical company, today reported 2Q24 audited financial results.
2Q24 financial highlights:
Net profit: Surge to NT$1,332 million in 2Q24 and resulting an EPS of NT$5.09, reflecting a strong quarter-over-quarter (QoQ) growth of 29% and a year-over-year (YoY) increase of 5%.
Consolidated net sales: Reached NT$4,743 million.
o Export Business: Revenue outside of Asia grew by 8% YoY and 29% QoQ, primarily resulting from increased sales of Lenalidomide in the US.
o Asian Business: Demonstrated topline growth of 5% YoY; driven by Taiwan and Southeast Asia(SEA) business.
o Revenue Distribution: Asia market accounting for approximately 49% of total revenues and exports representing approximately 51%.
Gross Margin: Improved to 61%, up by 6 percentage points (ppt) QoQ and 2 ppt YoY, thanks to rising sales of higher-margin products such as Lenalidomide and decreasing sales of lower-margin products such as Buprenorphine/Naloxone.
Operating Expenses: Increase by 19% QoQ and 26% YoY, mainly due to one-off charges related to the termination of the co-development project NRX 101 with NRx Pharmaceuticals and higher expenses related to equity-linked compensation.
Petar Vazharov, Chief Executive Officer of Lotus, said " I am pleased to report another successful quarter for Lotus, marked by impressive profitability growth and the completion of our foundational step for Southeast Asia expansion with the acquisition of Teva Pharma Thailand. This strategic move strengthens our regional presence and enhances our capabilities. We maintain a positive outlook for 2024, confident in our ability to drive sustainable growth and achieve new milestones."
Operational results for the quarter ending on June 30, 2024
Total consolidated net sales were NT$4,743 million for 2Q24, compared to NT$4,442 million in 2Q23, representing an increase of approximately 7%. Compare with previous quarter, 2Q24 sales showed a robust growth of 13%.
· Export business: Grew 8% YoY and 29% QoQ, driven by strong growth of lenalidomide sales in the US, offset by lower revenue from Buprenorphine/Naloxone.
· Asia business: 2Q24 revenue increased 5% YoY and similar level as previous quarter. YoY growth was driven by Taiwan and SEA businesses. Notable YoY growth in Taiwan was seen with brands such as Aclasta (+17%), Bensau (+18%), and Zepzelca (+266%). Other Asian business growth was mainly driven by increased revenue from Vietnam (+183%).
Gross margin was 61% for 2Q24, increase 2 ppt YoY and 6 ppt QoQ. This improvement was driven by a favorable revenue mix, including a higher-margin export of Lenalidomide to the US.
R&D expenses were NT$ 223million in 2Q24, 73% higher than 2Q23, driven by one-off charges related to the termination of the NRX co-development.
SG&A expenses increased by 18% compared to 2Q23, primarily due to higher costs of equity-based compensation.
2Q24 Business Update
R&D: Initiated 4 projects, completed 1 pivotal study, currently there are 27 projects ongoing.
Regulatory: 38 filings, gained 16 market approvals, 23 SKUs (10 INN) launched.
In 2Q24, Lotus continued to expand its global outreach. Lotus’ regulatory teams made 38 filings around the world and received 16 market authorization approvals globally. Notably, the company received market approval in the several south America countries such as Guatemala and Paraguay for Enzalutamide (generic of Xtandi®). In SEA market, Lotus gained market approval of key products like Pomalidomide (generic of Pomalyst ®) in Singapore, and launched Lenalidomide in Vietnam, to advancing the presence in the area.
Business Development: Completed acquisition of TEVA pharm Thailand, signed 4 deal, with more than 25 projects in advanced stage of negotiation. Actively seeking SEA market opportunities.
In 2Q24, Lotus completed its first SEA acquisition, TEVA Pharma Thailand, strengthening its presence in the region. The acquisition complements Lotus’s Thailand portfolio with leading ophthalmology and respiratory products and expands Lotus’s channel to pharmacy.
Lotus's in-licensing team enhanced the company's portfolio by signing four deals for products in the SEA market. Currently, there are over 25 projects in advanced negotiation stages, including NCE products, 505(b)2, biosimilars, and several brand acquisition deals.
Conference call and earnings material
Lotus Pharmaceutical will host a live audio conference in Mandarin at 2pm on August 15, 2024 (http://www.zucast.com/webcast/W0DgvZPF), and will attend the investor conference(in English) invited by KGI Securities at 3:30pm on August 15, 2024 (https://ib.kgi.com/IBWebSite/Views/Registration/RegistPage.aspx?ActNbr=6gh06-SoWyv7JRY8Jb-Vcg==), to review the Company's financial results for second quarter 2024. Information about the earnings call is available at the following address on the Company's website: https://www.lotuspharm.com/.
Investor inquiries:
Yu-Ying Yang, Associate Director, Corporate Communication
+886 2 2700 5908