Orient Europharma Group is advancing its dual-track strategy, and General Manager Calvin Tsai stated that the company will continue launching new products to expand its reach across all age demographics while actively expanding into Southeast Asian markets. In the future, the company plans to partner with Orient Pharma to enter markets such as the United States and even the Middle East. This year’s revenue is expected to achieve single-digit growth. With ample cash from asset disposals, the company will continue seeking suitable targets to enrich its product portfolio. In addition to equity-based partnerships, it does not rule out acquiring drug licenses or companies to accelerate its Southeast Asia expansion.
The group operates on a dual-track model focusing on pharmaceuticals and nutritional supplements, with pharmaceutical products accounting for 60% of revenue and nutritionals making up around 40%. Among pharmaceuticals, its subsidiary Orient Pharma focuses on the treatment of metabolic syndrome and central nervous system diseases. The current top-performing product is a lipid-lowering medication. Promising new products in Taiwan include a recently launched out-of-pocket weight-loss drug and a urology combination drug released earlier this year, both of which are being prepared for overseas licensing and sales. By the end of the year, a topical anti-hair loss product, introduced through an agency partnership, is also expected to launch.
On the international front, past reliance on licensed products limited overseas development, but moving forward, the group will collaborate with Orient Pharma to explore opportunities in the U.S. and Middle Eastern markets.
Regarding government incentives for domestic pharmaceutical manufacturing—such as premium pricing for internationally approved drugs produced in Taiwan and P4 bioequivalence studies for generics—Calvin Tsai said the company will focus on new drugs or 505(b)(2) drugs and will consider introducing approved or complex generics from abroad for local manufacturing.
Tsai also noted that proceeds from prior investments will be used to pursue high-potential products or technologies. The group currently employs a strategic investment model combining equity investments and regional licensing through royalty payments. This approach has been used for investments in Rakuten Medical and First Biotech. It also does not rule out acquiring drug licenses or companies in Southeast Asia.
A photodynamic immunotherapy product introduced in collaboration with Rakuten Medical is currently in Phase III clinical trials in Taiwan, aiming to obtain drug approval by next year. Orient Europharma has invested US$8 million for preferred shares in the project. The investment in First Biotech focuses on ADC (antibody-drug conjugate) technology, which is viewed as a key area of future development following biologics. The company invested NT$135 million to secure Asian sales rights and priority share subscriptions.
In the nutritional supplement segment, Kalotani infant formula contributes 90% of revenue. The company plans to expand its target market from infants (ages 0–3) to people of all ages (0–99). For instance, it previously partnered with Taipei Veterans General Hospital to launch products tailored to elderly consumers. Due to certification issues and market contraction, revenues from China have declined, with current sales primarily coming from Taiwan and Southeast Asia, each contributing half. Southeast Asia expansion is particularly focused on Malaysia and Indonesia. Although the Indonesian market was previously affected by the pandemic, progress has now resumed.
In the first half of this year, Orient Europharma reported NT$2.282 billion in revenue, a 4.3% year-on-year increase. According to Tsai, full-year revenue should maintain this single-digit growth trend. New products are expected to contribute more significantly starting next year, especially P4 products targeting the U.S. market, which could drive stronger performance. In terms of gross margin, the recent appreciation of the Taiwan dollar has helped lower the cost of imported nutritional products, thereby improving overall margins.
Resource: 友華今年營運穩增，不排除買藥證或併購東南亞，加速東南亞布局
