Medical device company ApexBio reported strong performance in the first half of the year, with revenue reaching NT$924 million for the January–May period, marking a 25.5% year-on-year increase. The company stated that due to ongoing uncertainty surrounding U.S. tariffs, it will temporarily shift focus toward the European and other markets. While third-quarter demand is expected to soften due to the summer holiday season, shipment momentum is projected to strengthen in the fourth quarter. As for its continuous glucose monitoring (CGM) product, ApexBio aims to complete development and submit a clinical trial application by the end of the year, with certification efforts to follow in 2025.
For the first quarter, gross margin stood at 29.1%, with earnings per share (EPS) of NT$0.62. The company noted that gross margin exceeded expectations, driven by a higher proportion of test strips in the product mix.
In terms of product composition for 2024, glucose electrodes now account for just 2% of total sales, glucose and HbA1c products 85%, non-glucose-related products 10%, and others 3%. The drop in electrode strips—from 6% to 2%—reflects changes in customer demand patterns: whereas clients previously purchased bulk packaging to repack themselves, ApexBio now supplies fully finished retail units, which command higher unit prices and better margins.
While non-glucose test kits underperformed expectations, some U.S. regulatory approvals have been obtained, and if shipments progress smoothly, this segment may recover.
From a market perspective, the U.S. accounted for 52% of sales in the first quarter, up from 39%, while the EU share dropped from 48% to 41%. Sales in Asia and Africa remained limited. ApexBio attributed its growth in the U.S. to preemptive inventory stocking in response to tariff uncertainty. The decline in Europe stemmed mainly from stagnant orders from Italian customers, though increased orders from Austria partly offset this dip.
On the product development front, ApexBio is co-developing an intensive care unit (ICU) continuous glucose monitoring system (ivCGM) with an Italian partner and expects product certification soon. The product is classified under MDR regulations, and the customer is actively seeking suitable distribution partners. A new version of ApexBio’s 4-in-1 multifunctional analyzer is also in development, attracting interest from clients in Europe and Southeast Asia.
Looking ahead to the second half of the year, ApexBio noted that tariff-related uncertainty will continue to affect the U.S. market, prompting the company to focus more on Europe and other regions. Due to summer holidays, third-quarter revenues are expected to dip below Q2 levels. However, shipments to Austria and Italy are expected to pick up in Q4, driving a rebound in revenue.
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