TAIPEI, Taiwan, Nov. 11, 2022 /PRNewswire/ -- Lotus Pharmaceutical (1795: TT), a multinational pharmaceutical company, today reported its financial results for the third quarter ended 30 September 2022.
Third quarter financial highlights:
Robert Wessman, Chairman of Lotus said: "I am very happy to share such a record setting quarter that will most certainly lead to the most profitable year in Lotus's history. With Lenalidomide launch in the US, the largest market in the world and the first delivery to Brazil, the largest market in South America, Lotus has achieved major milestones of its transformation to a global oncology player. I am confident that the team will continue to set records with further achievements driving sustainable growth."
Petar Vazharov, Chief Executive Officer of Lotus, continued to indicate: "Lotus will continue to build US pipeline and the recent tentative approval of the generic Midostaurin softgel capsules from the US FDA is a testimony to that. Lotus believes that this is a potential first-to-file opportunity and expects to launch the generic Midostaurin softgel capsules subject to the intellectual property clearance in the US. Another important milestone occurred during the quarter is Lenalidomide filing in Japan, and similar to the US, we are ramping up a robust pipeline of products for Japan market based on strategic partnership.
Lotus's success during recent years provides necessary financial resources to continue investing in new products, new partnerships, entering new markets and, at the same time, provide returns to our shareholders. We believe this is the beginning of a new chapter of Lotus's growth story."
Operational results for the third quarter 2022
Total net sales were NT$5,389 million, comparing to NT$3,058 million for the same period last year, representing an increase of 76.3%, or 78.9% excluding the unfavorable impact on foreign exchange between the Korean Won and New Taiwan Dollar.
Gross margin was 67.9% for the quarter, significantly higher than 45.3% for the same period 2021 and 47.4% in the previous quarter. The difference was mainly explained by more revenues coming from more profitable export segment.
R&D expenses was NT$203 million for the three months ended 30 September 2022, a 66.6% increase compared to a year before due to the cessation of one R&D project and thus recognizing the impairment charge of approximately NT$93 million, slightly offset by less R&D spending during the quarter.
SG&A expenses saw an increase of 19.7% compared to the same prior year period, mostly driven by higher amortization of the newly-acquired Cialis and Evista brands in Taiwan and higher personnel expenses with more headcounts to expand the business.
The Company delivered a historical high operating margin of 49.0% for the quarter, versus 19.1% for the comparable period last year and 16.8% for the prior quarter, resulted from the improved gross margin while maintaining a similar level of operating expenses.
During the quarter, the Company generated steadily cash inflow from operations and had net inflow of NT$1,123 million from operations before tax and interest. Its net gearing has gone down due to increasing profitability. The Company's net debt to LTM EBITDA ratio landed at 1.23x as of the third quarter 2022, compared to 1.45x as of the same period last year.
Exceeding the expectation, the Company reported an EPS of NT$7.97 for the third quarter 2022 and NT$10.96 for the first nine months ended 30 September 2022.
Pipeline and business development update
During the third quarter 2022, Lotus made several achievements to further expand the addressable markets with more diversified portfolio through internal R&D as well in-licensing business development deals. 15 submissions were made in total, including Lenalidomide in Japan and Tofacitinib, indicated for rheumatoid arthritis (RA), in South Africa via local partner. 24 approvals were granted during the quarter, including Alyssa and the approval of Pomalidomide in Taiwan.
Income statement
In NT$ million, except EPS | Q3'22 | Q3'21 | YoY % |
Net Sales | 5,389 | 3,058 | 76.3 % |
Cost of Goods | 1,732 | 1,673 | 3.5 % |
Gross Profits | 3,657 | 1,385 | 164.1 % |
Gross Margin % | 67.9 % | 45.3 % | |
R&D | 203 | 122 | 66.6 % |
SG&A | 813 | 680 | 19.7 % |
Operating Expenses | 1,016 | 801 | 26.8 % |
Operating Income | 2,641 | 583 | 352.8 % |
OP Margin % | 49.0 % | 19.1 % | |
Non-Operating Income (Expenses) | (11) | (111) | (90.1 %) |
Income Before Tax | 2,630 | 473 | 456.4 % |
Net Income | 2,079 | 348 | 497.0 % |
Basic EPS (NT$) | 7.97 | 1.34 | 494.8 % |
Conference call and earnings material
Lotus Pharmaceutical will host a live audio conference in Mandarin at 2pm, 15 November and conduct a conference call at 4pm, 15 November in English to review the Company's financial results for the third quarter 2022. The information of earnings call is available at the following address on the Company's website: https://www.lotuspharm.com/.
About Lotus
Founded in 1966, Lotus (1795: TT) now is the largest pharmaceutical company in Taiwan with high-value generic products covering CNS, CVS, women health, and anti-obesity drugs in tablets and hard/softgel capsule with a special focus on oral oncology for global markets.
By leveraging a best-in-class R&D and manufacturing platform in Asia, Lotus aims to benefit patients, its employees and stakeholders. Furthermore, Lotus can reach nearly every global market with its high value pipeline through its direct markets, currently encompassing Taiwan, Korea, Thailand, Vietnam, Singapore, Hong Kong, Malaysia, Philippines, and China, or via alliances with top-tier pharma companies based on its industry-leading infrastructure certified by most of the advanced regulatory authorities around the world, including US FDA, EU EMA, Japan PDMA, China FDA, and Brazil ANVISA.
Investor enquiries:
Angela Luan, Investor Relations Director
+886 2 2700 5908
investor@lotuspharm.com
Media enquiries:
Lara Omarsdottir, Public Relations
+354 659 9166
media@aztiq.com
lara@aztiq.is
