Daiwa Capital Markets initiated its coverage of generic-drug producerTWi Pharmaceuticals Inc (安成藥) in expectation that the company’s revenue would more than triple next year after its first new products hit the US market.
TWi Pharmaceuticals’ revenue is expected to grow to NT$1.17 billion (US$39.52 million) next year, from NT$300 million this year, Daiwa analyst Christine Wang (王琦清) forecast in a report issued on Monday.
Losses next year would improve to NT$193 million from this year’s loss of NT$655 million, Wang forecast.
In 2015, TWi Pharmaceuticals’ revenue is expected to grow more than four-fold annually to NT$5.5 billion from a year earlier after it launches another five to six drugs in the US, Wang said in the report.
TWi is developing medicines to cure diseases including gastroesophageal reflux.
The company would move into the black with profit of NT$1.75 billion in 2015, Wang forecast.
TWi Pharmaceuticals, established in 1997, has not sold any drugs on any market. Targeting the US market, the company said it had nine new drugs under review by the US Food and Drug Administration and hoped those drugs would help TWi enter the US$3.45 billion per year market in the US.
“Given the much larger scale of revenue next year, compared with this year, we believe the company will see its loss narrow in 2014 and become profitable in 2015,” Wang said.
Daiwa gave a “buy” rating on TWi Pharmaceuticals, with a six-month target price of NT$465. That represented a 49 percent upside from the stock’s closing price of NT$312.01 on the Emerging Stock Market on Friday.
The company is set to trade its shares on the GRETAI Securities Market by the middle of next month.
TWi plans to sell 13.3 million shares at the price ranging from NT$244 to NT$253, Michael Huang (黃立鑫), the company’s head of investor relations, said by telephone on Friday.
The company plans to use the proceeds of between NT$3.25 billion and NT$3.36 billion to do clinical trials, capital expansion and to set up retail stores in the US, Huang said.
“We are considering acquiring firms in the US to build our own retail stores,” Huang said.
TWi plans to spend between US$20 billion and US$25 billion on research and development each year, he added.
The company operates two factores in Jungli (中壢), Taoyuan County. The company is seeking opportunities for expansion, but there is no detailed plan at this moment, Huang said.
Nvidia Corp CEO Jensen Huang (黃仁勳) is expected to miss the inauguration of US president-elect Donald Trump on Monday, bucking a trend among high-profile US technology leaders. Huang is visiting East Asia this week, as he typically does around the time of the Lunar New Year, a person familiar with the situation said. He has never previously attended a US presidential inauguration, said the person, who asked not to be identified, because the plans have not been announced. That makes Nvidia an exception among the most valuable technology companies, most of which are sending cofounders or CEOs to the event. That includes
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
Taiwanese manufacturers have a chance to play a key role in the humanoid robot supply chain, Tongtai Machine and Tool Co (東台精機) chairman Yen Jui-hsiung (嚴瑞雄) said yesterday. That is because Taiwanese companies are capable of making key parts needed for humanoid robots to move, such as harmonic drives and planetary gearboxes, Yen said. This ability to produce these key elements could help Taiwanese manufacturers “become part of the US supply chain,” he added. Yen made the remarks a day after Nvidia Corp cofounder and chief executive officer Jensen Huang (黃仁勳) said his company and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) are jointly
MARKET SHIFTS: Exports to the US soared more than 120 percent to almost one quarter, while ASEAN has steadily increased to 18.5 percent on rising tech sales The proportion of Taiwan’s exports directed to China, including Hong Kong, declined by more than 12 percentage points last year compared with its peak in 2020, the Ministry of Finance said on Thursday last week. The decrease reflects the ongoing restructuring of global supply chains, driven by escalating trade tensions between Beijing and Washington. Data compiled by the ministry showed China and Hong Kong accounted for 31.7 percent of Taiwan’s total outbound sales last year, a drop of 12.2 percentage points from a high of 43.9 percent in 2020. In addition to increasing trade conflicts between China and the US, the ministry said
RSS