Shengda has the opportunity to hit new highs in profit this year, and the Japanese market has great potential next year

[Reporter Chen Yongji/Report from Taipei] Domestic pharmaceutical company Shengda (1720) held a press conference today. Chairman Fan Ziting said that the profits in the first three quarters of this year have reached a new high for the same period, and the absolute value of the full-year profit has a chance to hit a record high. However, due to the rights issue this year, the share capital will expand by 10%, and the after-tax earnings per share may not reach a simultaneous high.

Fan Ziting said that Shengda has 5 new products launched in Taiwan this year. In addition, the overactive bladder drug P4 patent challenge case has received a victory notice, and the drug is expected to be launched in the first quarter of 2027. There is also a new drug for the treatment of gout that we represent has obtained a drug license and is waiting for the price to be verified by health insurance.

In terms of overseas markets, Fan Ziting believes that the Japanese market has the greatest potential. In addition to 3 drugs that Shengda has shipped, five more are under development. Since Japan's policy actively promotes generic drugs, Shengda will actively seek CDMO (commissioned development and manufacturing services) cooperation projects. By cooperating with its API manufacturer Shengtai (1777) to reduce costs, Shengda will be responsible for R&D and manufacturing, and the Japanese partner will be responsible for sales. The cooperation income includes development fees and post-marketing revenue sharing, so it is expected that the CDMO business contribution from Japan will continue to expand.

Regarding the North American market, Fan Ziting pointed out that the company will gradually reduce its investment in the United States and shift to the Canadian market, considering the uncertainty of U.S. policies.