First quarter financial highlights:
Strong start of 2022,with both top line and bottom line exceeding the management expectation.
Consolidated net sales reachedNT$3,161 million, representing a 12.8% growth compared to last quarter.
Asian Business segment continues to be a solid foundation for our business, increasing by 1.4% QoQ to
Export Business segment was the key growth driver of the quarter, growing by 30.7% QoQ to
Operating profits were up 58.7% over last quarter to
First quarter EPS was
Petar Vazharov, Chief Executive Officer of Lotus, said: 'We are very pleased with the strong start of 2022, following 2021 - so far the most successful year in Lotus history. All business units performed very well and we are confident that Lotus is in a very strong position to deliver 2022 objectives despite the turbulences caused by the COVID recurrence in certain Asian countries as well as the rising uncertainties of global economy.
We would like to highlight the major deliverables on the portfolio part during this Quarter from both Business development and R&D. As you know the company completed the acquisition of Cialis from Eli
Last but not the least, Lotus witnessed a major milestone this quarter - the transaction led by Aztiq and Innobic, two strategic partners we've been working closely with, to acquire the 100% shares of Lotus's controlling shareholder AEMH has been officially closed. Following the completion of this transaction, Aztiq and Innobic joined force and formally became the leading shareholders of Lotus. This is a powerful alliance that not only paves the way for the regional expansion in
Operational results for 2022 Q1
Total net sales were
Net sales from Asian Business steadily grew during the quarter. All the major markets, including
Export Business revenues decreased slightly by 4.9% overall comparing to the same period last year, mainly due to the replenishment pattern of generic Suboxone in the US and the price erosion in Q3 last year. However, this was offset by the Company successfully launching Lenalidomide in 14 European countries in February as scheduled, which boosted the Global Oncology Export sales over 90% year-over-year.
Gross margin was 43.4% for the quarter, compared to 45.0% for the same period 2021. The shortfall was mostly caused by the manufacturing variance related to its generic Suboxone in the US, including scrapping of one out-of-spec batch.
R&D expenses was
SG&A expenses decreased by 8.3% compared to the same prior year period given that one-time expenses associated with group optimization programs in
With well-managed spending, the Company's operating margin landed at 19.7% for the quarter. Compared to 18.1% as average through the year of 2021, the operating margin of this quarter increased by 1.6 percentage points with the continuous improvement of operating leverage.
The Company also continued to generate stable cash inflow from operations. During the quarter, the Company generated
With all the major deliverables achieved on track, the Company made the second highest quarterly earnings in Lotus history and reported an EPS of
Pipeline and business development update
During the first quarter 2022, Lotus continued to develop its pipeline through internal R&D, in-licensing as well as brand acquisitions. 28 submissions were made in total, including biosimilar oncology product Adalimumab in both
As of Q1'22, the Company has 94 countries covered in the world, which includes the single largest market in the US and several major European countries, for its Lenalidomide - 58 counties approved with 1 more tentative approval, 26 countries under registration, and 9 submissions under preparation. The Company has also launched Lenalidomide in 39 countries around the world as of quarter end.
There are 54 countries covered for Lotus' Gefitinib - 36 approved with 26 countries already launched, 10 under registration, and 8 submissions under preparation.
50 countries are covered for Lotus' Vinorelbine - 37 approved including the largest 2 markets globally Taiwan and
The Company also has 49 countries covered for its Sunitinib, 38 countries for Enzalutamide, 32 countries for Pazopanib, 2 countries for Midostaurin, and 6 countries for Pomalidomide, as of the quarter end.
The Company, during the quarter, also achieved several milestones by in-licensing deals and brand acquisitions. It secured Ryaltris, the first brand product to be included in its respiratory portfolio with strong clinical data and IP protection, by signing an exclusive commercial right with Glenmark in key SEA markets. The Company also acquired Cialis, the second largest brand by revenue in
Contact:
E: info@lotuspharm.com
(C) 2022 Electronic News Publishing, source