Bora Pharmaceuticals announced at its investor conference on the 12th that it will adopt two strategies to counter potential Section 232 tariffs: a “manufactured-to-market” model and the establishment of an offshore capital pool (BlockGoogle). Chairman Bobby Sheng expressed optimism that operations in the second half of the year will outperform the first half. The company’s acquisition targets remain unchanged, with several promising prospects under evaluation, though developments under Trump’s administration are still being closely monitored.
In addition to the investor update, Bora shared positive news in the evening: USL, a subsidiary, has secured U.S. FDA approval for the suspension formulation of Deflazacort, following approval of the oral form last year. This allows Bora to further expand into the Duchenne muscular dystrophy market, which carries an annual business opportunity exceeding US$1 billion.
According to Sheng, Bora is benefiting from product mix optimization and synergies from plant integration, driving a higher share of high-margin products. Its CDMO (Contract Development and Manufacturing Organization) capacity is also regaining momentum under the U.S. manufacturing advantage. With expansion projects ongoing at three plants in the U.S. and Canada, Bora is making strong advances in epilepsy specialty drugs and formulation-improvement “blue ocean” markets. He expects performance in the second half to surpass the first half.
Due to foreign exchange losses and restructuring, Bora’s Q2 profit fell 56% quarter-on-quarter, with EPS at NT$5.95. For the first half of the year, net profit after tax reached NT$2.016 billion, up 11.91% year-on-year, with EPS at NT$19.5. Revenue for the first seven months was NT$11.8 billion, up 22.9% year-on-year. Its CDMO business has exited the integration transition period, posting over 20% monthly growth.
Leveraging its U.S. manufacturing base, Bora plans to first set up a small-molecule packaging line at its Maple Grove site, with phased capacity expansions to follow. Its sterile injectable plant in Maryland will begin serving mass production clients in September, with 20 projects from new and existing customers scheduled for rollout in the second half of next year. Meanwhile, the Canada plant will expand its dermatology drug filling line, boosting capacity by 40% next year. It also secured a major client in the first half of this year, ensuring strong order volume.
Bora is also developing its own drug portfolio, with upcoming launches in GLP-1, multiple sclerosis, and ophthalmology. Approvals are expected progressively from Q4 this year through next year. Given limited competition or instability among current suppliers, Bora is well-positioned with strong competitive advantages.
Regarding tariffs, Bora’s board has approved a US$40 million investment to establish a wholly owned offshore holding company. This capital pool will mitigate foreign exchange volatility impacts on earnings statements, enhance financial efficiency, and increase flexibility for overseas capex and acquisitions.
The company’s global sales will pivot toward a “manufactured-to-market” model, leveraging its U.S. and Canadian facilities for flexible production line adjustments to better serve clients.
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