Country for PR: United Kingdom
Contributor: PR Newswire Europe
Friday, November 11 2022 - 21:00
TAIPEI, Taiwan, Nov. 11, 2022 /PRNewswire-AsiaNet/ --

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:

- Third quarter 2022 is the best quarter ever in the Company's history, majorly 
driven by the successful launch of Lenalidomide in the US – the biggest launch 
in Lotus history so far. Basic EPS for the first nine months ended 30 September 
2022 totaled 10.96 TWD, setting the course for the Company to achieve another 
record year in 2022.
- Consolidated net sales were 5,389 million TWD, representing a growth of 85.2% 
over the last quarter and 76.3% versus prior year period.
      - Export Business was the main growth driver, contributed by the 
successful launch of Lenalidomide (generic of Revlimid) in the US, as well as 
the first delivery to Brazil, the largest market in Latin America. Sales from 
Export increased 245% compared to last quarter and 183% compared to same period 
last year.
      - Asian Business continued to grow for the third consecutive quarter, 
3.2% over last quarter, also 10.8% over the same period last year. Key brands 
in major markets, including Korea, Taiwan, and Thailand, continued the growth 
- Gross margin rose to 67.9%, driven by product mix with higher contribution 
from more profitable export oncology products during the quarter.
Comparing to the prior year, operating profits grew by 353%, to 2,641 TWD 
million, with 49.0% operating margin for the quarter, mainly driven by higher 
gross margin.
- Historic high third quarter EPS of 7.97 TWD and first 9 months basic EPS of 
10.96 TWD.

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 

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 5,389 million TWD, comparing to 3,058 million TWD 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 203 million TWD 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 93 million 
TWD, 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 1,123 million TWD 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 7.97 TWD for the 
third quarter 2022 and 10.96 TWD for the first nine months ended 30 September 

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.

- As of the third quarter 2022, the Company has 95 countries covered in the 
world for its Lenalidomide and made its Lenalidomide now available in 43 
countries around the world.
- Addressable markets are also continuously expanding for Lotus's other leading 
portfolio globally – more than 50 countries for its Gefitinib, Vinorelbine, and 
Sunitinib, more than 30 countries for its Enzalutamide and Pazopanib, and 17 
more for its Pomalidomide.
- Among the second-wave oncology portfolio, the Company has launched its 
Enzalutamide in 4 countries, including the newly-approved Taiwan, and added 
Israel as the 22nd market for its Vinorelbine around the world.
Income statement

In TWD 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 (TWD)                   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:

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

Media enquiries:

Lara Omarsdottir, Public Relations
+354 659 9166


Source: Lotus Pharmaceutical