Cowealth Medical Holding Co (合富醫療) yesterday said the company would strive to post a more than 30 percent revenue increase next year, after it receives revenue from new partners and sells more equipment.
The company, which markets medical equipment and supplies in China, aims to raise its revenue to NT$4 billion (US$130.44 million) next year from NT$3 billion this year, chairwoman Joyce Wang (王瓊芝) said at an investors’ conference.
As the company received approval to sell TearScience Inc products for the treatment of dry eye syndrome in Taiwan in September, Cowealth’s sales of TearScience Inc products are expected to rise by NT$100 million to NT$200 million next year from about NT$10 million this year, Wang said.
Cowealth also signed contracts with four Chinese medical companies this year, so the firm’s revenue is expected to rise by between NT$300 million and NT$600 million next year, Wang said.
However, the company’s sales for diagnostics facilities and reagents could remain flat next year from this year because some of its clients might not renew contracts over pricing issues, she said.
From January through last month, the company’s revenue totaled NT$2.6 billion, up 19.74 percent from NT$2.17 billion the previous year, with sales of diagnostics facilities and reagents accounting for 86 percent of total sales, with 14 percent coming from repairing and maintaining Accuray Inc’s Cyberknife systems.
Accuray agreed to a contract for Cowealth to sell its product in China in December last year, and the two companies are currently involved in a lawsuit, which is expected to end in February or March next year, Cowealth chief executive officer Lee Duane (李惇) said.
In the past three quarters, the company reported net profit of NT$305.21 million, up 19.91 percent from NT$254.53 million the previous year, while gross margin remained at 13 percent in the past three quarters, the same as a year ago, according to Cowealth.
Lee said the company’s gross margin declined from the previous year because its clients demanded lower prices for diagnostics facilities and reagents, while the company’s expense ratio also dropped as it gradually reaches economies of scale.
Cowealth’s shares rose 0.21 percent to NT$96.8 yesterday.
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