The Taiwan Monthly

Oct. 2019

Listed Companies and Initial Public Offerings

Lotus Pharmaceutical Co., Ltd. submitted Taiwan's first alternative listing application on August 30, 2019

TPEx listed Lotus Pharmaceutical Co., Ltd. (Code: 1795) submitted a listing application on August 30, 2019. This is the 9th domestic company to submit a listing application this year and the first alternative listing application.


TWSE, as an ongoing capital raising and investment platform in Taiwan's capital markets, amended the Taiwan Stock Exchange Corporation Rules Governing Review of Securities Listings on March 31, 2018. The amendment allows companies or innovative enterprises of a certain size that operate with a promising business model but make no profit yet and companies that make substantial contributions to the economy (including TPEx listed companies) to submit listing applications and be exempted from the profitability requirement. The goal is to support innovative enterprises of a certain size or above in Taiwan and achieve the mission to encourage innovative enterprises to apply for listing, raise capital, and expand their businesses.


According to the lead underwriter, KGI Securities, Lotus Pharmaceutical Co., Ltd. brought in Alvogen Group Inc as a strategic shareholder in 2014, and made changes to its R&D technologies, products, and business models. Lotus Pharmaceutical focuses on developing first generics and Paragraph IV certifications and making 505(b)(2) applications. The company follows a business model that targets more technically challenging generic drugs and makes use of Alvogen Group's global network to provide one-stop services that include R&D, compliance, clinical, manufacturing and marketing. Furthermore, the alliance with Alvogen Group has brought the average operating revenue up to NTD 6.4 billion over the last two years (2017-2018). The ongoing cash injections into R&D, product line acquisition and equipment upgrade contribute to a certain degree for the global visibility of Taiwan's pharmaceutical industry.


TWSE also comments that TPEx listed Lotus Pharmaceutical is applying for TWSE listing in the interest of business development and international expansion for the group. TWSE will process the application in accordance with the Taiwan Stock Exchange Corporation Rules Governing Review of Securities Listings and the Procedures for Review of Securities Listings. Following economic development and industry trends, TWSE continues to encourage innovative enterprises with substantial contributions to the economy to join Taiwan's capital markets, and provides assistance in capital raising and business expansion.


The following is a summary from the prospectus of Lotus Pharmaceutical Co., Ltd.:


  1. Responsible person: Robert Wessman
  2. Company address: 15F, No. 149, Section 3, Xinyi Road, Daan District, Taipei City, Taiwan
  3. Paid-up capital(in thousands): NTD 2,431,140 (including NTD 1,560,132 in private placement)
  4. Key products: Tablets, capsules and other solid dosage forms and other non-solid dosage forms such as ointments and liquids
  5. 2018 annual profit before tax amount(in thousands): NTD 163,704
  6. 2018 annual after-tax earnings per share: NTD 0.42


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