Bora Pharmaceuticals (6472) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 revenue of TWD 4.48 billion, up 56.8% year-over-year but down sequentially due to discontinued low-margin products and site rationalization.

• CDMO revenues reached a historic high, up 52% year-over-year, with record contract signings and strategic US consolidation.

• Specialty pharma sales surged 82% year-over-year, supported by USL acquisition and new product launches.

• 95% of revenues generated outside Taiwan, with a market cap of $2.5B and FY2024 revenue of $600M.

• Significant one-time gain of NT$2,590.7 million from equity swap of Bora Biologics shares for TaiMed Biologics shares, recognized under non-operating income.

Financial highlights

• Gross margin for the quarter was 42%, up 9% sequentially but down from 53% a year ago; adjusted for one-time items, gross margin approached 49%.

• Operating profit increased 28% sequentially to NT$681 million, but fell 24% year-over-year; OP margin at 15%.

• Net income from continuing operations was NT$2.75 billion; total net income NT$1.4 billion, up 124% sequentially and 89% YoY.

• Basic EPS from continued operations was TWD 26.54; including one-time items, EPS was TWD 13.55.

• Discontinued operations (Plymouth/Clinton) resulted in a one-time charge of TWD 1.3 billion and post-tax loss of NT$1,341.9 million.

Outlook and guidance

• Confident in increasing quarterly results for the remainder of 2025 and optimistic for 2026, focusing on higher-margin products and CDMO growth.

• Expect to unlock ~NT$200 million capital per quarter and ~NT$1,000 million divestment gain in 2025.

• Margin profile projected to improve in 2025 as high-value asset synergies emerge and cost-effective tech transfers complete.

• Ongoing investments in Maple Grove and Maryland facilities to support future growth and capacity.

• Management expects continued growth in CDMO and branded generics, leveraging recent US acquisitions.