ScinoPharm Taiwan Ltd (台灣神隆), which makes active pharmaceutical ingredients, is upbeat on contract manufacturing sales growth as a new antibiotic product developed by a client has gained approval from the US Food and Drug Administration.
Baxdela, an antibiotic to treat acute bacterial skin and skin structure infections developed by US-based Melinta Therapeutics, is expected to contribute millions of US dollars annually, ScinoPharm said.
About 3 million people are hospitalized each year in the US, many of whom develop skin infections, leading to treatment challenges on top of underlying medical conditions, the company said, adding that optimal antibiotic selection in such cases is more difficult.
Amid growing concerns about drug resistance, US authorities have granted Baxdela qualified infectious disease product designation, extending to its developer five years of market exclusivity as part of efforts to drive antibiotic development to provide physicians with more tools, the company said.
Melinta is assessing the antibiotic in a clinical trial of patients with hospital-treated, community-acquired bacterial pneumonia and has planned studies on complicated urinary tract infections in the near future, ScinoPharm said.
A stronger New Taiwan dollar and shifts in the company’s product mix led to a drop in net income last quarter, ScinoPharm said.
Net income last quarter fell 51 percent quarter-on-quarter to NT$84 million (US$2.78 million), or earnings per share of NT$0.11, the company said.
Operating revenue and gross profit fell 7 percent and 31 percent quarterly to NT$853 million and NT$326 million respectively amid narrowing margins, it added.
Foreign exchange-related losses last quarter totaled NT$65 million, it said.
Apart from declining sales, the company also saw smaller sales contribution from higher-margin oncology products as its major international clients carry out consolidation plans.
Teva Pharmaceuticals Industries Ltd’s acquisition of Actavis Generics from Allergan Inc resulted in two clients cutting back contract manufacturing orders as they sort out overlapping product offerings, ScinoPharm said.
In addition, as more targeted cancer therapies emerge, consumption of drugs used in chemotherapy made by the company has declined, ScinoPharm said, adding that its drug manufacturing business is facing price competition from Indian companies.
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