Bora Pharmaceuticals (6472) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 results with revenue of NT$5.03bn, up 60% year-over-year and 76% sequentially, and net income of NT$1.21bn, up 73% year-over-year.

• EPS reached NT$11.61, with adjusted EPS at NT$7.80, the highest in five quarters.

• Major acquisitions included Upsher-Smith Laboratories, LLC and the integration of Morning Sun Biotech, expanding CDMO and branded generics presence in North America.

• USL integration contributed NT$2bn to Q2 revenue, and the acquisition of a US-based sterile injectable site expanded CDMO capabilities.

• All major financial metrics hit record highs, driven by both organic growth and M&A activity.

Financial highlights

• Revenue: NT$5,027mn (up 60% YoY, 76% QoQ); Gross profit: NT$1,951mn (up 13% YoY, 30% QoQ); Net income: NT$1,214mn (up 73% YoY, 63% QoQ).

• Gross margin at 39%, down from 55% YoY due to one-time costs; operating margin at 15%.

• Operating expenses increased 220% YoY, reflecting integration and acquisition costs.

• Bargain purchase gain of NT$799mn recognized in Q2.

• Excluding one-time items, operating income was NT$1,157mn and net income NT$829mn.

Outlook and guidance

• Another record year expected, with strong H1 2024 performance and continued growth momentum.

• Camden facility to contribute from Q3 2024; strategic alliance with Tanvex to enhance biologics capabilities.

• Focus on maximizing shareholder value through organic growth, M&A, and strategic alliances.

• The company plans to issue its first overseas convertible bond up to US$200 million, with a five-year term and 0% coupon.

• Expansion of CDMO operations in North America continues, including the acquisition of Cangene bioPharma's Maryland facility.