12 Apr. 2019
OEP announced the consolidated revenue reached 5.5billion in 2018 and overseas contributed over 50%
(Press Release) Orient EuroPharma (OEP) participated in Taipei Exchange’s Investor Conference on the 12th April where its General Manager and CEO, Calvin Tsai, announced the group’s 2018 performance and future plan. OEP achieved 5.510 billion in consolidated revenue in 2018, an increase of 5.43% than that of 2017. In addition, its overseas revenue percentage has also seen a surge up to 51.5%, surpassing OEP’s domestic revenue for the first time. On the other hand, benefited from the growth of international market, the powdered formula business has reached the peak again, accounting for more than 60% of the overall revenue. It can be seen that international market and the formula business have become the main drive of OEP’s steady growth. With the launch of new products this year, it’s growth potential is formidable. Despite its overall revenue growth stability, the consolidated net profit after tax is rendered 246 million, with an EPS of 2.84 dollars — lower than the past years — given the volatility in currency rate.
Powdered formula business takes the lead
Consolidated and overseas revenue percentages peak all time high
According to CEO Tsai, the growth of revenue source of the powdered formula business mainly comes from overseas. Karihome, the powdered goat milk, is not only the leading brand in its Taiwanese baby formula market, its performance internationally has also been profound; with an increased number in sales regions, it’s brought in a whopping two-digit growth in recent years. In light of the decrease in birth rate and the cut throat competition in the market, OEP has striven to differentiate itself from other brands, launching series of new products that include goat milk formula for pregnant woman and high-end baby formula. In addition, OEP has also expanded it sales bases to countries such as Indonesia, and the Philippines in hope of ushering in more revenue from overseas.
Steady sales in pharmaceuticals overseas expansion yields fruitful
In terms of its pharmaceutical enterprise, OEP has successfully introduced its self-developed hypolipidemic medicine to the Philippines and Vietnam. It also plans to expand its market in ASEAN, beginning with its registration and examination process in Myanmar and Cambodia this year. Furthermore, OEP’s effort in medicine development has started to yield fruit, earning two licenses in Taiwan last year – a new ADHD treatment medicine, and an epilepsy medicine that OEP has worked on developing with US Supernus. Both medicines are categorized as 505(b)(2) new drugs with great market potential. OEP is now preparing to launch them in Taiwan and internationally.
Import world-renowned skin care products
Self develop high-end anti-aging skin care brand
OEP has long been an agent for renowned medical cosmetic skin care brands in Europe, the United States, and Japan – these products have seen great popularity among consumers in Taiwan, the Philippines, and Malaysians. Given its specialty in medicine, OEP has also started to actively participate in developing medical cosmetic product. It has scheduled to launch its own exclusive technology anti-aging cosmetic brands which aims to provide consumers with better and more innovative options.
New drugs’ development proceeds as expected
R&D and OEM are the two drivers for revenue
CEO revealed that while OEP’s existing businesses have continued to drive growth, the group has also invested in developing new medicine in order to maintain sustainability. At the moment, OEP holds 17 drug licenses together in Taiwan and world-wide, while another two are in the application process. Among the newly developing drugs, six are respectively at the stage of one to three in clinical trials, which include drugs for rheumatoid arthritis, ovarian cancer, NSCLC, metastasis head and neck cancer, pancreatic cancer, and head and neck cancer. In addition, there are three drugs in the category of 505(b)(2) which are for antilipemic agent (compound), antihypertensive (compound) and antituberculotic; another three niche generic drugs for bone marrow dysplasia syndrome, Schizophrenia, and antihypertensive. The latter six are all in the development stage.
OEP’s subsidiary company, OP NanoPharma, has also been under the spotlight. It is the first company in Taiwan to have equipped Bosch’s isolator filling production lines and IMA’s lyophilization equipment for its cancer medicine ampoules manufacturing plants. High-end and complete equipment is employed to meet the demand of producing various types of medicine ampoules, including the highest level of OEL5 protection and T-shape production lines while all procedures are completed in insolation glove boxes. All plants are undergoing validation of the equipment operation. In the future, in addition to manufacturing OEP’s own products, these plants also seek CMO and CDMO opportunities.
While OEP’s core businesses have seen steady growth, it has sought active integration of all resources within the group – developing new drugs, expanding its overseas market, striving for cooperation with pharmaceutical manufacturers in Europe, the United States, and Japan. Last year, to meet the high growth rate and internationalized demands, OEP has also invested in establishing SAP and IQVIA CRM system in order to increase efficiency. With the help of new products, markets, medicine, manufacturing plants and system, OEP is on its way to become a competitive benchmark corporate in Asia.