Maxigen Biotech to list on main bourse

MOVING UP::The cosmetic and surgical materials maker is to leave the Emerging Stock Market this month and is banking on a trove of permits in myriad nations to raise profits

By Camaron Kao  /  Staff reporter

Wed, Dec 04, 2013 - Page 14

Maxigen Biotech Inc (MBI, 和康生技), which makes cosmetics and surgical materials, is set to shift to the main bourse from the Emerging Stock Market (興櫃市場) on Dec. 20.

The company has acquired 26 permits for its medical materials to be used for surgery in Taiwan, the US, Europe and Singapore over the past two years, which are expected to help boost its revenue starting next year, Maxigen president and CEO Edward Chang (張立言) said at an investors‘ conference yesterday.

“It took some time to persuade doctors and hospitals to use our products,” Chang said.

Maxigen signed a contract with a company listed in China to sell Formaderm — an antiwrinkle treatment — Chang said, adding that it is also considering taking over local companies to expand its retail network.

During the January-to-October period, Maxigen posted revenue of NT$190.26 million (US$6.42 million). The figure represents a 0.87 percent drop from the NT$191.26 million recorded a year ago, a company filing with the Taiwan Stock Exchange showed.

Cosmetics product sales accounted for about 46 percent of Maxigen’s revenue, while surgical material sales accounted for 53 percent, the company said.

The business started to turn a profit last year, Chang said, adding that he expects profits will see an annual increase next year.

From January to September, the company posted a profit of NT$753,000, down from NT$4.99 million a year ago, the filing said.

Chang said the decline was mostly caused by decreasing non-operating profits resulting from the end of government subsidies.

Maxigen started construction on a new factory in Taoyuan County in August that is slated to be completed by the first half of 2015, Chang said, adding that the plant is to increase capacity by three to six-fold.

The company plans to issue about 7,000,000 shares priced at between NT$32 and NT$35, and is to use the proceeds to set up retail routes in China and apply for permits for its surgical products.

US-based medical device firm NuVasive Inc owns a 7 percent stake in Maxigen and is responsible for selling FormaGraft, a bone substitute, in the US and Europe, the Taiwanese company said.

Meanwhile, drugmaker TWi Pharmaceuticals Inc (安成藥) saw its shares rise 33.06 percent to NT$330 from the NT$248 target it set for its debut on the GRETAI Securities Market yesterday.

TWi Pharmaceuticals plans to launch its first products in the US starting next year. It said it expects to swing to the black starting in 2015, after six to eight of its products enter the US market.