Bora Pharmaceuticals (6472) Q3 2024 earnings summary

Executive summary

• Achieved record Q3'24 revenue of NT$5.61 billion, up 37% year-over-year and over 30% quarter-over-quarter, driven by strategic mergers and business integration.

• Net profit reached NT$1.45 billion, with EPS of NT$14.15; gross margin improved to 42%, operating margin to 22%, and net margin to 26%.

• Revenue for the nine months ended September 30, 2023, reached NT$13.5 billion, up 23% year-over-year, with net income of NT$3.33 billion, up 35%.

• Major acquisitions included Upsher-Smith Laboratories, Cangene bioPharma, and Pyros Pharmaceuticals, expanding US presence and rare disease portfolio.

• U.S. market now accounts for over 85% of revenue, with significant expansion in North America and a growing employee base.

Financial highlights

• Revenue increased 37% year-over-year and 12% sequentially in Q3; gross profit up 45% year-over-year and 22% quarter-over-quarter.

• Net income rose 95% year-over-year and 20% sequentially in Q3; basic EPS up 94% year-over-year and 22% quarter-over-quarter.

• Cumulative net profit for YT3Q24 already exceeded FY'23; 3-year revenue CAGR at 99%, gross profit CAGR at 115%.

• Acquisition-related costs of NT$80 million and a one-time bargain purchase gain of NT$690 million recorded in Q3.

• Cash and cash equivalents at period end were NT$6.23 billion, up from NT$4.14 billion a year ago.

Outlook and guidance

• Full-year outlook remains strong, with CDMO YTD revenue already surpassing the 2024 target.

• FlexPro Line at Baltimore facility expected to increase output by 30% in 2025.

• Two additional specialty products expected to launch in Q4'24; Deflazacort Tablet and VIGAFYDE Oral Solution to strengthen rare disease portfolio.

• Management expects continued growth from expanded US operations and CDMO business, with integration of recent acquisitions to drive future performance.

• Ongoing investments in R&D and product pipeline are expected to support long-term competitiveness.