A one-time expense it made in merging with US-based drug maker Alvogen Group Inc has led generic drug maker Lotus Pharmaceutical Co (美時化學製藥) to report losses of NT$51.12 million (US$1.68 million), or NT$0.32 per share, over the past two months.
The figure stood in stark contrast to the net profit of NT$19.5 million, or NT$0.26 per share, that Lotus Pharmaceutical posted for the same period last year, a filing with the Taiwan Stock Exchange showed yesterday, after the company was asked by the GRETAI Securities Market to disclose the information amid volatile trading of its shares.
The massive fluctuation in the company’s shares sent Lotus Pharmaceutical stock plunging 5.26 percent to close at NT$79.3 yesterday on the over-the-counter market, according to stock exchange statistics. Yesterday’s closing price was 36.56 percent lower than that of NT$125 seen on Thursday, the data showed.
The benchmark GRETAI index rose 1.18 percent yesterday, while the TAIEX advanced by 1.77 percent from Friday.
Over last month alone, Lotus Pharmaceutical registered losses of NT$45.43 million, or NT$0.28 per share, compared with net profit of NT$15.86 million, or NT$0.21 per share, a year ago, the company’s figures show.
Lotus Pharmaceutical, which manufactures and distributes oral and injected medicines, attributed last month’s losses to lower revenue and the one-time expense it made selling its shares to Alvogen.
The company’s 100-percent acquisition of shares of South Korea-based Alvogen Korea also contributed to last month’s decline, the Taiwanese firm said in the filing.
Lotus Pharmaceutical’s revenue was NT$187.93 million last month, down 16.9 percent from NT$226.16 million the previous month, because of delayed payments for new products it is developing for its clients, inventory adjustment in its retail shops and a seven-day holiday in South Korea.
However, the figure was more than two times higher than the NT$55.31 million it posted in the same period last year, according to the filing.
Looking ahead, Lotus Pharmaceutical said it expects revenue to rise to a normal level again within the next few months.
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