Specialty generic drugmaker Lotus Pharmaceutical spokesperson Bjartur Shen said at the company’s earnings call on the 15th that exchange rate fluctuations will trim this year’s revenue growth target by about 2–3 percentage points, but margins will remain unaffected. The second-quarter gross margin decline reflected the timing of revenue recognition for the blood cancer drug Lenalidomide, while this year’s peak sales are expected in the fourth quarter. Exports of addiction treatment drugs are likely to rise in the second half due to supply disruptions among competitors. New products such as Nintedanib will begin contributing this year, with larger volumes expected next year. Coupled with successful business integration and M&A progress in Asian markets, the company remains optimistic for the second half.
Shen explained that the U.S. dollar depreciated by an average of about 4% compared to last year, accounting for roughly 40% of revenue in the first half of 2025, while the Korean won depreciated by 8% against the New Taiwan dollar, accounting for about 30% of revenue. Together, these factors created a roughly 4% drag on full-year revenue growth. With the New Taiwan dollar strengthening since May, if the trend continues through the second half, currency translation could weigh further on revenue, reducing growth by about 2–3% and dampening this year’s 7–10% growth target.
However, Shen emphasized that most of Lotus’s procurement and capital expenditures are also denominated in foreign currencies, meaning the NT dollar’s appreciation results mainly in accounting losses with minimal impact on gross margin or operating profit. The second-quarter margin decline was primarily due to revenue recognition timing for Lenalidomide. While dollar-denominated sales reduce NT-dollar revenue, the company’s supply chain expenses are also mostly in foreign currencies. To hedge against currency swings, Lotus plans to gradually increase U.S.-dollar-denominated debt.
On U.S. policy risks, Shen noted that President Trump’s proposed drug price cuts require Congressional approval and are unlikely to materialize in the short term. High drug prices stem primarily from branded drugs, not generics. The 11 companies recently contacted by Trump were all major originator firms, with no generic makers included. Shen said generics may instead become a solution for U.S. cost containment, leaving Lotus unaffected in the near to medium term. As for U.S. tariffs, the company completed advance shipments of Lenalidomide earlier this year, minimizing any short- to mid-term impact.
In Asia, Lotus reported successful integration of its Thai operations and smooth takeover of Alpha Choay in Vietnam, driving double-digit growth across the region. Sales in China met expectations, with revenue peaking in the fourth quarter and full-year growth also expected in double digits.
For exports, addiction treatment drugs saw a decline in the first half, but the downward trend will ease in the second half, and shipment volumes could rise as competitors face supply issues. Lenalidomide shipments will peak in the fourth quarter. Regarding the 2026 expiration of Lenalidomide’s patent, Shen said while competition may intensify as supply restrictions are lifted, the company does not expect a “cliff-like” revenue decline and has prepared mitigation strategies.
Key growth drivers for the second half and beyond include Nintedanib, Enzalutamide, and Pomalidomide, all of which have already started contributing revenue this year. Larger growth is expected in 2025. Nintedanib is scheduled for initial shipments to Europe in the fourth quarter of this year, with full-scale supply beginning in the first quarter of 2026, followed by U.S. shipments in the second to third quarter of 2026.
Resource: 美時下半年亞洲、出口業務多引擎齊發，匯率壓抑營收但無損毛利率
