ScinoPharm Taiwan (台灣神隆), which makes active pharmaceutical ingredients, yesterday reported a 36.95 percent decline in net profit for last quarter because of slow orders and mounting price pressure.
Net profit fell to NT$121.4 million (US$3.97 million), or NT$0.17 per share, last quarter, from NT$192.56 million, or NT$0.28 per share, a quarter ago, according to the company’s filing to the Taiwan Stock Exchange. The figure was 51.92 percent lower than NT$252.5 million, or NT$0.36 per share, a year earlier, filing said.
“Sales of weight-loss drug Qsymia were lower than expected, resulting in high inventory level for the drug’s developer, US-based Vivus Inc. Therfore, the company reduced its purchase of ingredients for the drug this year,” company chief financial officer Patricia Chou (周珮芬) said in an investors’ conference yesterday.
Lower sales not only affected ScinoPharm’s top line but also reduced its utilization rate, Chou said.
The company also faced pressure from its clients that make generic drugs to cut prices, Chou added.
ScinoPharm Taiwan also had difficulty acquiring paclitaxel, which is used to make “10 dab” for manufacturing ingredients for cancer drugs, because of unstable weather in Europe, Chou said, adding that higher prices for paclitaxel is expected to reduce the firm’s gross margin by 5 percent this year.
The company’s gross margin dropped to 37.23 percent last quarter, from 43.56 percent the previous quarter and 42.75 percent a year ago, according to filing.
Revenue for ScinoPharm Taiwan also declined to NT$1 billion, down 13.04 percent from NT$1.15 billion the previous quarter and 19.35 percent from NT$1.24 billion a year ago, the filing said.
Chou said prices for paclitaxel would return to normal next year, but the company’s utilization rate would still remain low over the next year.
Chou said ScinoPharm Taiwan’s sales and profit would rise significantly after next year, when the US Food and Drug Administration completes its inspection of the company’s factory in Changshu, China to make active pharmaceutical ingredients.
Meanwhile, the company said it inked a deal with Nanjing King-friend Biochemical Pharmaceutical Co (南京健友生化) to make ingredients for Regadenson, which is used to facilitate the examination of human hearts.
The drug is expected to receive approval to enter the Chinese market in 2020, with expected sales of 200 million to 300 million Chinese yuan (US$32.68 million to US$49.02 million) per year, ScinoPharm Taiwan said, citing Nanjing King-friend.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to