JPM 2024: Taiwan’s Pharma Giant Bora Pharmaceuticals Climbing US Pharmaceutical Summit

Bobby Sheng, the CEO of Bora Pharmaceuticals, presented at the 42nd JP Morgan Annual Healthcare Conference (JPM 2024) on January 9, 2024, highlighting the company’s pharmaceutical market position and financial performance up to December 2023.

Synergistic Dual Growth Engine

Taiwan-based Bora Pharmaceuticals’ dual business strategy, which consists of Global CDMO Operations and Global Commercial Operations along with their M&A strategies has made significant growth of the Taiwan CDMO giant in recent years. Based on these achievements, Bora has been recognized by global investors and capital markets, which made Bora Pharmaceuticals hit the Taipei Stock Exchange to a public listing on the Taiwan Mainboard (TWSE) in December 2023.

For the Synergistic Dual Growth Engine, as described by Bobby, the CDMO side emphasizes high growth and positive cash flow, touts an inflation and recession-proof business model, and highlights a strong, sustainable customer base. They aim to increase site utilization, partner with TWi Pharmaceuticals to enhance opportunities, and stay ahead of technical trends.

On the commercial side, they focus on higher margins through PIV challenges and complex generics, rapid growth with new product launches, and dynamic market opportunities, all while aiming for cost-effective operations without significant capital expenditure (CAPEX) and bolstering manufacturing to grow market share.

Climbing Another Summit in the US Pharmaceutical Market

When it comes to Taiwan’s pharmaceutical exports, particularly to North America. Since Bora became a leading CDMO in 2018, Taiwan’s pharma product exports to North America have increased by 205%. In 2022, Bora accounted for 26.1% of these exports to North America and 9.7% of Taiwan’s total global finished dosage export value (a key metric in assessing the performance and impact of the pharmaceutical sector in the global market), highlighting the global reach of Taiwan’s pharma exports, with North America being a key market.

Bora also contained a dynamic and diverse portfolio. In the US market, TWi, a part of the Bora Group, has 22 approved ANDAs (Abbreviated New Drug Applications), with an additional 6 pending approval, and over 5 active R&D projects, indicating a diversified offering including nutrition supplements, prescription drugs, and over-the-counter (OTC) products through SunWay Biotech and Bora Health, among others.

Bora Pharmaceuticals’ strategic move in the US market, marking its first NDA product acquisition to diversify and strengthen its presence in branded products. The acquisition, involving a $38.5 million investment, is set to transition sales to the TWi US team in the fourth quarter of 2023, funded entirely by cash reserves. This development represents a significant step for the company in expanding its product portfolio and commercial operations in the US.

Tracing Back the Expansion History Reveals the Exponential Growth Context

Since its establishment in 2007, Bora Pharmaceuticals has pursued aggressive growth, evidenced by its acquisition of the Eisai facility in 2013 and the GSK Mississauga facility in 2020, enhancing its manufacturing prowess. A pivotal moment came in 2017 with its IPO, signaling financial growth. Expansion into the U.S. market was furthered by acquiring TWi Pharmaceuticals in 2022. Embracing the lucrative nutraceutical sector, Bora became a major shareholder of SunWay Biotech in 2023, indicating its strategic diversification and global market penetration.

Until 2023, as Bobby briefly introduced the company’s key numbers, including market capitalization of over $2.1 billion, employs more than 1,300 individuals, and exports to over 100 countries. It operates 7 manufacturing sites and has generated over $450 million in revenue for the fiscal year 2023. Notably, 95% of its revenue comes from outside of Taiwan, and it stands as the number 1 pharmaceutical manufacturer in Taiwan by volume.

Author

Oscar Wu