Bora Pharmaceuticals Reports 2025 EPS of NT$23.9, Proposes NT$10 Dividend; CDMO Business Becomes Primary Profit Engine

Bora Pharmaceuticals (6472) announced its full-year 2025 financial results on March 11. Despite an impact of NT$11.24 per share in net loss from discontinued operations, the full-year earnings per share (EPS) after tax reached NT$23.9. The board approved a cash dividend of NT$10 per share. Based on the closing price of NT$473.5 on March 11, the cash dividend yield is approximately 2.1%. The company's full-year consolidated revenue reached NT$19.014 billion (approx. $598.1 million), a year-on-year increase of 9.11%.

Notably, Bora's operating cash flow margin for 2025 reached a new high of 34.74%, a significant turnaround from -4.00% in the same period of 2024. The company stated that this demonstrates the successful completion of a phase in balance sheet management for its dual-engine business model of "CDMO and Global Sales." Excluding the impact of discontinued operations, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for continuing operations decreased by 19.0% compared to 2024 but was still 12.5% higher than in 2023, indicating that the revenue and profit foundation established over the past two years remains solid.

CDMO Business Shows Strong Growth, Becomes Group's Primary Profit Engine

The most impressive performance in the 2025 financial report came from the CDMO business. Full-year CDMO revenue (including internal orders) reached NT$10.64 billion (approx. $334.7 million), a substantial year-on-year increase of 53.8%. External order revenue alone was NT$7.5 billion (approx. $235.9 million), growing 19.53% year-on-year. In the fourth quarter, CDMO revenue accounted for 45.78% of the company's total revenue, with the full-year proportion reaching 39.43%. This indicates that the CDMO business is gradually becoming the group's most important profit engine. Throughout the year, the company developed and manufactured 2.5 billion doses of pharmaceuticals, demonstrating continued scaling effects.

Chairman Sheng Pao-Hsi stated that the company has successfully renewed its contract with the international pharmaceutical giant GSK (GlaxoSmithKline), marking a decade-long partnership milestone. This renewal underscores Bora's market credibility in supply chain reliability and quality control. Furthermore, the total value of new orders signed in 2025 reached $482 million, with a significant 89% of these being commercial-stage orders. An additional 16 products are in the research and development stage, providing clear revenue visibility for the Canadian and Maryland injectable facilities starting in 2026. According to the latest statistics, the CDMO business has $264 million in confirmed orders for the next 12 months, indicating ample order visibility.

Regarding capacity expansion, the company completed an approximately 10% increase in sterile filling capacity, with a net expansion of about 3% for solid and liquid dosage forms combined. The company is particularly optimistic about the recovery of the U.S. biopharmaceutical market, especially the rapid growth in early-stage biologics such as Antibody-Drug Conjugates (ADCs). Market information suggests that Bora views flexible, single-use bioreactor capacity in North America as a scarce resource. Following capacity expansion, the large-molecule CDMO platform of its subsidiary, Tai Fu, will be better positioned to meet the strong demand from the U.S. market. Although Tai Fu's non-operating performance may exert short-term pressure, it remains a crucial piece in Bora Group's strategy to provide one-stop CDMO services and position itself for future growth.

Global Sales Business Faces Short-Term Pressure; 2026 New Product Pipeline Ready

In contrast to the strong performance of the CDMO segment, the Global Sales business faced challenges in the fourth quarter of 2025. Revenue for that quarter was NT$2.64 billion (approx. $83.1 million), considered one of the weaker quarters since the acquisition of Upsher-Smith. The pressure stemmed from three main factors: the entry of a new competitor for the gastroesophageal reflux drug DLS in November led to cautious downstream purchasing; intensified market competition for the generic drug Topiramate ER compressed gross margins; and the cost structure adjustment following the technology transfer of some Upsher-Smith proprietary products to new manufacturing sites affected the quarterly gross margin. On a comparable basis, the estimated consolidated gross margin for this business is in the range of 38% to 39%.

Looking ahead to 2026, the company plans to launch at least seven new generic drug products. These include the recently approved Cyclosporine for dry eye disease and a licensed-in product for treating hyponatremia. Additionally, a significant potential growth driver comes from Bora Sheng. If Bora Sheng obtains approval for a generic version of Cladribine, the active ingredient in Merck's product Mavenclad, Upsher-Smith, as the exclusive distributor, would have the opportunity to prepare for launch in the U.S. market, potentially injecting considerable growth into revenue.

In the specialty drug business, the Vigabatrin series of products for treating infantile spasms continues to perform well, with a monthly increase in new patient numbers laying the foundation for future sales expansion. Chairman Sheng Pao-Hsi emphasized that the company's strategic focus for 2026 is to strengthen the depth of its product portfolio by adding differentiated items. Simultaneously, it aims to gradually expand its presence in injectables and 505(b)(2) new drugs (referring to new dosage forms or new indications for approved drugs). The goal is to create a more diverse and balanced product portfolio, thereby enhancing overall profit resilience.

Institutional Perspective: Dual Engines Accumulating Momentum, Positive Outlook

Industry analysts note that Bora's CDMO business, supported by long-term orders from international giants like GSK and an expanding client base, has a clear growth trend. Although the Global Sales business is under short-term pressure, its new product pipeline is ready, and its布局 in niche markets like rare diseases continues to deepen, accumulating momentum for future growth. Under the strategy of advancing both the CDMO and Global Sales engines simultaneously, the company's subsequent operational performance is worth anticipating.

Key operational data for Bora Pharmaceuticals in 2025 is shown in the table below:

Item	2025 Performance	YoY Growth Rate / Notes
Consolidated Revenue	NT$19.014 billion (approx. $598.1 million)	+9.11% YoY
Net Profit After Tax	NT$2.98 billion (approx. $93.8 million)	-24.3% YoY
Earnings Per Share (EPS)	NT$23.9	-24.22% YoY (Impacted by discontinued operations)
Cash Dividend	NT$10 per share	Approved by the board
Operating Cash Flow Margin	34.74%	Record high, was -4.00% in same period 2024
CDMO Revenue (incl. internal)	NT$10.64 billion (approx. $334.7 million)	+53.8% YoY
CDMO Full-Year Revenue Share	39.43%	Gradually becoming the primary profit engine
CDMO Newly Signed Orders	$482 million	89% are commercial-stage orders

Regarding the external environment, the company also highlighted challenges from U.S. trade and industrial policy adjustments, which bring supply chain reconfiguration and exchange rate volatility. Additionally, the rapid integration of artificial intelligence (AI) is changing the competitive landscape in manufacturing. However, Bora aims to navigate these changes through solid customer relationships, continuous capacity investment, and a diversified product strategy, seeking to return its growth trajectory to a more stable and positive trend.