Lotus Pharmaceutical Reports Record Revenue in First Half 2026 and Improved Second-Quarter Profitability

Taipei, Taiwan, 13 Aug 2026 — Lotus Pharmaceutical (1795:TT; “Lotus” or “the Company”), a multinational pharmaceutical company, announced its financial results for the first half and second quarter ended 30 June 2026, setting new records for both half-year and quarterly revenue, mainly driven by the acquisition of Alvogen and B2B sales, with second-quarter performance also delivering quarter-on-quarter improvement.

1H26 Financial Highlights:

- Record 1H Revenue: Consolidated revenue increased 84% YoY to NT$17,453 million, setting a new half-year record.

o     US Market: Revenue increased by 180% YoY to NT$10,732 million, driven by the consolidation of Alvogen, which expanded the US revenue base to include a broader portfolio of products.

o     B2B: Revenue increased by 245% YoY to NT$1,466 million, driven by the launch of Nintedanib across 30 markets including US and major markets in EU, and Enzalutamide in Canada and South Korea.

o     Asian Markets: Revenue increased by 1% YoY to NT$5,255 million, supported by growth in Southeast Asia, mainly driven by Thailand and Vietnam markets.

o     Revenue Mix: US, Asia and B2B contributed 62%, 30% and 8%, respectively.

- Gross Profit and Margin: Supported by a more favourable product mix, gross margin improved sequentially to 53.7% in 2Q 2026 from 50.7% in 1Q 2026. Gross profit grew by 60% YoY to NT$9,114 million in 1H 2026, driven by the acquisition of Alvogen and B2B sales. As compared to prior year, 1H 2026 gross margin was 52.2%, down 8.0 ppts, primarily reflecting changes in product mix.

- Operating Profit and Margin: Operating margin improved sequentially to 26.5% in 2Q 2026 from 22.7% in 1Q 2026. For 1H 2026, operating profit grew by 33% YoY to NT$4,292 million, while operating margin was 24.6%, down 9.4 ppts YoY, in line with the gross margin.

- 1H Net Profit and EPS Reflected Acquisition Impact: Net profit was NT$1,209 million (-44% YoY), compared with NT$2,164 million in 1H 25. Earnings per share (EPS) was NT$4.65 (-44% YoY), compared with NT$8.29 in 1H 25. The decline in net profit was primarily attributable to higher finance costs following the acquisition of Alvogen, foreign exchange losses resulting from the strengthening of the U.S. dollar during the period, and one-off, non-recurring tax items, which temporarily increased the reported effective tax rate to 29.5% for the period. Excluding these one-off tax items, the effective tax rate would have been 22.3%. Adjusting for both the one-off tax items and FX losses of NT$204 million, net profit would have been NT$1,492 million (-42% YoY), or EPS of NT$5.74 (-42% YoY).

Leadership Comments

Petar Vazharov, Chief Executive Officer of Lotus said, “I am pleased to announce that Lotus has delivered record first-half revenue, growing 84% year over year, as well as another record quarterly revenue, reflecting the successful acquisition of Alvogen and continued execution across our global platform. So far in 2026, we also achieved several important strategic milestones, including U.S. FDA acceptance of the cabozantinib (LP757) application under the 505(b)(2) pathway, U.S. FDA approval for the first generic Baloxavir Marboxil Tablets, and completing the acquisition of the Philippines business from Sandoz, which further expands our commercial footprint in Southeast Asia.”

He added, “Our focus remains on advancing our R&D and business development priorities, pursuing selective opportunities to strengthen our portfolio and commercial platform, and optimising our capital structure to lower finance costs and enhance flexibility. With our broader global platform and diversified portfolio, Lotus is well positioned for sustainable long-term growth."

Business Highlights for YTD 2026

The acquisition of Alvogen continued to contribute meaningfully during the first half of 2026, while Lotus maintained strong execution across R&D, business development and strategic expansion initiatives. The Company's pipeline remains robust, comprising 135 development and business development projects targeting an addressable market of over US$125 billion.

From an R&D perspective, the Company successfully launched Nintedanib across 30 markets globally. Cabozantinib (LP757) was accepted for review in the United States, marking Lotus' first oral oncology product filed via the 505(b)(2) pathway. The Company also achieved the Day-1 launch of generic Enzalutamide in South Korea and received U.S. FDA approval for the first generic Baloxavir Marboxil tablets, a generic version of Xofluza®.

From a business development perspective, Lotus strengthened its portfolio in APAC through partnerships for FYB206, a Keytruda® (pembrolizumab) biosimilar candidate; acquisition and commenced distribution of Uro-Vaxom®, a specialty pharmaceutical product for urology and infectious disease prevention; MFDS approval of SERPLUMA® (serplulimab), an anti-PD-1 therapy, for the first-line treatment of extensive-stage small cell lung cancer (ES-SCLC) in South Korea. In addition, Lotus broadened its CNS pipeline with SLX-100, an orphan drug candidate for spinocerebellar ataxia type 27B.

The completion of the acquisition of the Philippines business from Sandoz further expanded Lotus' footprint in Southeast Asia, strengthening its commercial platform and enhancing access to hospital and specialty care channels in the region.

On the regulatory front, Lotus submitted 59 filings, gained 49 market approvals, and launched 250 SKUs*.

Xofluza®, Keytruda®, and Uro-Vaxom® are registered trademarks. All other trademarks are the property of their respective owners.

*For B2B, “launch” refers to the initial product shipment to a partner; in-market launch timing is subject to local commercial arrangements.

Key financials for the period ending on 30 June 2026: 

In NT$ million, except EPS	1H26	1H25	YoY %
Consolidated Revenue	17,453	9,477	+84%
Gross Profit	9,114	5,708	+60%
Gross Margin %	52.2%	60.2%	-8.0ppt
Operating Expenses	-4,822	-2,490	+94%
Operating Income	4,292	3,218	+33%
Op. Margin %	24.6%	34.0%	-9.4ppt
Non-Op inc. (exp.)	-2,576	-649	297%
Income Before Tax	1,716	2,570	-33%
Net Income	1,209	2,164	-44%
Basic EPS (NT$)	4.65	8.29	-44%
Adj. Net Income*	1,492	2,594	-42%
Adj. Basic EPS* (NT$)	5.74	9.94	-42%

*Adjusted for one-off tax items in 2026 and FX losses in 2025 and 2026

Conference call and earnings material

There will be a live audio conference call hosted by Morgan Stanley Securities on 14 August 2026 to review Lotus Pharmaceutical's financial results for 1H26 and business outlook for 2026.

Founded in 1966, Lotus (1795: TT) is an international pharmaceutical company with a global presence, focused on commercializing both novel and generic pharmaceuticals to provide patients with better, safer, and more accessible medicines. The company boasts a best-in-class R&D and manufacturing platform in Asia, certified by leading regulatory authorities around the world, including the US FDA, EU EMA, Japan PMDA, China FDA, and Brazil ANVISA. Lotus has established partnerships in nearly every major global market, including the U.S., Europe, Japan, China, and Brazil. The company is currently developing and registering over 100 strategically selected pharmaceutical projects across Asia and the U.S., with more than 250 commercial products. Lotus invests in a diversified portfolio, consisting of high-barrier oncology, complex generics, 505(b)2, NCEs, and biosimilars, through both internal R&D investments and licensing-in partnerships to strengthen its portfolio competitiveness