Taipei, Taiwan, November 9, 2023 -- Lotus Pharmaceuticals (1795:TT; “Lotus” or “the Company”), a multinational pharmaceutical company, reported Q3 2023 audited financial results.
Key Financial Highlights for Q3 2023:
- In the third quarter of 2023, Lotus achieved consolidated revenues of NTD 4,573 million, marking the second-highest figure in its history. Earnings per share (EPS) for the quarter stood at NTD 4.76.
- Notably, the third quarter of 2022 saw the launch of lenalidomide (a generic version of Revlimid®) in the U.S. In 2023, lenalidomide's replenishment strategy, occurring at a quarterly pace, resulted in a more meaningful year-to-date (YTD) comparison of revenues in Q3:
- Throughout the first nine months of the year, Lotus' Asian businesses exhibited strong growth, with an overall year-on-year (YoY) increase of 24%. Specifically, Taiwan's domestic businesses recorded a remarkable growth of 74%, Korean businesses grew by 8%, and other Asian businesses, including exports to mainland China, grew by 48%.
- Export businesses outside Asia experienced a 14% growth during the same period. U.S. businesses increased by 24%, while the Rest of World exports decreased by 36%, primarily due to the lenalidomide EU launches in 2022.
- Q3 gross profit amounted to NTD 2,648 million, with a gross margin rate that remained consistent with previous quarters at 57.9%.
- Operating expenses amounted to NTD 1,166 million, primarily driven by impairment expense recorded during the quarter. Operating profit for Q3 was NTD 1,482 million, resulting in an operating margin of 32.4%.
- Q3 net income stood at NTD 1,246 million, and EPS remained consistent with previous quarters at NTD 4.76.
- The consolidated revenue for the first nine months of the year exhibited an 18% YoY growth, reaching NTD 13,539 million. Net income reached NTD 3,706 million, surpassing the full-year 2022 figure. EPS recorded TWD 14.19, reflecting a 29% YoY growth.
Key Business Highlights for Q3 2023:
- Lotus Pharmaceuticals launched 17 new SKUs through its Asian businesses, including diabetes medicines Sitagliptin/Dapagliflozin in Korea, lenalidomide in the Philippines, and Sunitinib in Malaysia. Additionally, Export businesses introduced 17 SKUs, with the notable introduction of Pomalidomide in Canada as a second-line treatment for relapsed patients previously treated with lenalidomide.
- Regulatory progress was achieved with 19 marketing authorization approvals in Q3, including Lenalidomide in Japan and Nintedanib in Canada.
- Business development thrived with three significant deals signed during the second quarter, including two 505b2 products, cardiovascular medicine VAZKEPA®, and Alzheimer's Disease Treatment ADLARITY® in Asia.
- Licensing-out remained robust with seven agreements signed during the third quarter.
- Research and development saw two new projects focused on the oncology portfolio kick-off in Q3. Furthermore, the company submitted dossiers of Pomalidomide and Tofacitinib in major markets.
Dr. Petar Vazharov, Chief Executive Officer of Lotus, said, "I am thrilled to announce our record-breaking results in the third quarter of 2023. It is with great pride that I share the remarkable news that our company has achieved a net profit in the first three quarters of 2023 that not only surpasses our full-year record from 2022 but also sets a new historical high. As we celebrate these historic achievements, we remain focused on our commitment to delivering value to our shareholders, meeting the needs of global patients, and driving innovation in our industry. Our journey of success continues, and we are excited about the future as we build on this strong foundation."
Founded in 1966, Lotus (1795: TT) is an international pharmaceutical company with global presence, focused on commercializing novel and generic pharmaceuticals, offering patients better, safe and more accessible medicines. The Company has a recognized best-in-class R&D and manufacturing platform in Asia and has established partnerships in nearly every global market including the U.S., Europe, Japan, China, and Brazil. Lotus runs over 100 strategically selected pharmaceutical projects in development and registrations across Asia and the US, with over 250 commercial products. The Company invests in diversified best portfolio consisting of high-barrier oncology, complex generics as well as 505(b)2 and NCE via internal R&D investment and licensing-in partnership, and also strengthens its portfolio competitiveness by adding biosimilar products with support from strategic partners. Its industry-leading infrastructure certified by most of the advanced regulatory authorities around the world, including US FDA, EU EMA, Japan PMDA, China FDA, and Brazil ANVISA.
Forward looking statements disclaimer
Except for historical information contained herein, the matters set forth in this document are forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. These forward-looking statements are not based on historical facts but rather on management’s expectations regarding future growth, results of operations, performance, future capital and other expenditures, competitive advantages, business prospects and opportunities. Statements in this presentation about our future plans and intentions, results, level of activities, performance, goals or achievements or other future events constitute forward looking statements. Wherever possible, words such as “anticipate”, “believe”, “expect”, “may”, “could”, “will”, “potential”, “intend”, “estimate”, “should”, “plan”, “predict”, or the negative or other variations of statements reflect management’s current beliefs and assumptions and are based on the information currently available to our management. Investors are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this document and we assume no obligation to update or revise any forward-looking statements.
Susan Liao, Head of Investor Relations
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