Taipei, Taiwan, 9 May 2024 -- Lotus Pharmaceuticals (1795:TT; “Lotus” or “the Company”), a multinational pharmaceutical company, today reported 1Q24 audited financial results.
1Q24 financial highlights:
Net profit is NT$1,036 million in 1Q24 and resulting an EPS of NT$3.96.
Consolidated 1Q24 net sales were NT$4,198 million.
o Export revenues outside of Asia decreased 18% YoY, primarily resulting from absence of Lenalidomide 2.5 mg and 20mg launch stock in 1Q24. Export revenues outside of US grew almost 100% YoY.
o Asian Business demonstrated topline growth of 4%; driven by Korea and Taiwan business.
o 1Q24 Revenues from Asia accounting for approximately 56% of total revenues and exports representing approximately 44%.
1Q24 gross margin is 55%, down 5ppt compared to 1Q23 gross margin due to higher margin lenalidomide US launch stock replenishment last year.
Operating expenses in line with the same period last year; operating profits decreased 7 ppt to 30% from 37% in 1Q23, resulting from lower gross margin in 1Q24.
Petar Vazharov, Chief Executive Officer of Lotus, said " As for the first quarter of the year, our performance in export markets beyond the US and Asia remained notably robust. With our steadfast commitment to our long-term vision and strategic objectives, we maintain a positive outlook for 2024."
Operational results for the Year ending on March 31, 2024
Total consolidated net sales were NT$4,198 million for 1Q24, compared to NT$4,524 million in 1Q23, representing a decrease of approximately 7%.
· Due to absence of Lenalidomide 2.5mg and 20mg launch stock replenishment to the US in 1Q24, the revenue from export decreased 18 % YoY. This was planned and had no impact on the full year delivery schedule of the product to the US market.
· The revenue from products in export markets outside of the US demonstrated a nearly 100% YoY growth, primarily contributed by Enzalutamide launches in various EU countries and strong demand of Lenalidomide in Latin markets, such as Brazil.
· In Asia, 1Q24 revenue increased 4% YoY driven by the Korean and Taiwan domestic businesses. Korea business grew 10% YoY, driven by Qsymia and B2B business, whereas Taiwan business growth was driven by the ED brand Cialis®, cough & cold brand Bensau®, as well as the strong growth of Lotus’ first New Chemical Entity (“NCE”) product in Taiwan Zepzelca® (Lurbinectedin), which grew by an impressive 445% YoY this quarter.
Gross margin was 54.9% for 1Q24, similar level as full year 2023 but down 5 ppt compares to 59.8% in 1Q23. The lower gross margin was due to a revenue mix due to less high margin export of Lenalidomide to the US.
R&D expenses were NT$117 million in 1Q24, 29% lower than 1Q23. The decrease in R&D expenses was due to higher one-off EU regulatory fee accruals in 1Q23.
SG&A expenses saw an increase of 6% compared to 1Q23, mostly because of the equity-based compensation plan issued last September.
1Q24 Business Update
R&D: Initiated 1 project (potential FTF product), completed 3 pilot BE studies, currently there are 27 projects ongoing.
Regulatory: 34 filings, gained 11 market approvals, 27 SKUs (13 INN) launched.
In 1Q24, Lotus continued to expand its global outreach. Lotus’ regulatory teams made 34 filings around the world and received 11 market authorization approvals globally. Notably, the company received market approval in the UK for Enzalutamide (generic of Xtandi®). In SEA market, Lotus has launched Vinorebine (generic of Navelbine®) in Malaysia and Philippines, Enzalutamide in Vietnam, both are the first generic launched in these SEA countries.
BD: 1 deal signed, 14 projects in advanced stage of negotiation. Actively seeking SEA market opportunities.
Out-licensing: 2 deals signed.
In addition to in-house product development, Lotus’ in-licensing team continued to expand the Company’s portfolio with product profile ranging from 505(b)2, NCE, biosimilar and generics. The team is actively working to bolster Lotus' presence in the SEA market through brand acquisitions, portfolio expansions, or the acquisition of sales platforms.
Moreover, Lotus signed 2 out-licensing agreements during 1Q24, partnering with leading pharmaceutical companies in Japan for multiple myeloma treatment Pomalidomide.