ScinoPharm Taiwan H1 performance strong, expands focus on injectable and CDMO businesses

ScinoPharm Taiwan (stock code 1789) reported consolidated revenue of NT$1.646 billion for the first half of 2024, with a post-tax net profit of NT$215 million, representing a 117% increase compared to the same period last year. Last year's key investments in plant improvements and production line optimization have paid off, resulting in increased capacity utilization and strong operational performance in the first half of 2024, achieving near double-digit growth in USD revenue.

During the first half, ScinoPharm Taiwan continued to meet customer demands by delivering products and services on schedule. The company's contract development and manufacturing organization (CDMO) business saw significant growth, particularly from sales of epilepsy and oncology drugs. Several products are expected to continue driving shipments in the second half. The injectable business also performed well, with stable ongoing supply following the mass production and launch of injectable contract manufacturing products provided to U.S. customers last year. Additionally, in March, both ScinoPharm Taiwan's injectable plant and SciAnda (Changshu)'s API plant passed US FDA inspections with zero deficiencies (Zero Form 483), marking the eighth consecutive time since 2015 that ScinoPharm's facilities have passed US FDA audits without any deficiencies, underscoring the company's high standards of production and quality management, and reaffirming its international-level manufacturing capabilities.

Looking ahead, ScinoPharm Taiwan is working on a new Alzheimer's disease drug under a CDMO contract. The customer recently obtained FDA approval and is preparing to launch the product in the U.S. in 2025, with ScinoPharm poised to fulfill the subsequent demand. Other CDMO customers are planning to submit NDA applications in the next two years based on their clinical trial results and schedules. If approvals are secured, ScinoPharm expects to see a boost in revenue from fulfilling these orders. In the injectable business, the company continues to meet market demand by scheduling production and shipments according to customer needs. It is expanding its offerings to include additional contract manufacturing items and services. Furthermore, ScinoPharm Taiwan has proactively responded to recent regulatory changes by offering drug testing services to clients, further leveraging its analytical testing capabilities.

Subsidiary SciAnda (Changshu) has seen significant growth in API and CDMO services in the first half of 2024, driven by the commercial-scale production of CDMO products and the approval of partner products for market launch. The zero-deficiency FDA inspection has further strengthened ScinoPharm's ability to attract international pharmaceutical companies and clients from both China and the U.S., contributing to continued growth momentum.

ScinoPharm Taiwan remains committed to its niche in generic APIs, actively developing and promoting new products. The company is focused on developing its own APIs and injectable products and providing integrated CDMO services that cover everything from APIs to injectables. This strategy aims to enhance overall profitability.