Maxigen expands business groups
Taiwan News, Staff Writer
2014-03-26 05:49 PM
Maxigen Biotech Inc. (1783) president Edward Chang states that the biomedical business group’s four major growth pillars have taken shape and the cosmetics business group will accelerate plans in China. The operations of these two business groups will grow in sync and 14 product certifications are expected to be obtained this year including an ophthalmic viscoelastic for China in the first half of the year. By 2016, the product line will near completion with total product certifications exceeding 80 in 2017.

Maxigen was established in 1998 and currently has a capitalization of NT$700 million. Its core technology includes collagen/hyaluronic acid utilization in its biomaterials and cosmetics business groups. Last year, Maxigen revenue totaled NT$233 million with an operational loss of NT$3.55 million. However, with extracurricular business contributions, net income totaled NT$2.58 million, or NT$0.04 per share, with an annual gross profit margin of 46%. The cosmetics business group accounted for 55% of revenue, down from 62% last year and the biomedical business group accounted for 45%, up from 38% last year. In the first two months of this year, the biomedical group’s portion of revenue leapt to 54% while cosmetics fell to 46%.

Chen states that, from a gross profit contribution standpoint, the biomedical group and cosmetics group accounted for 65% and 35% of gross profit last year, respectively. After deducting operating expenses, the cosmetics business group still posted a loss and profit came primarily from the biomedical group. Profit contributions from the biomedical business group for the first 2 months of the year fell slightly to 62% while profits from the cosmetics business group rose to 38%.

The biomedical group’s second pillar involves the ArtiAid® Intra-articular Injection. In the first half of last year, only five formulation products were available. These products accounted for 26% and 27% of biomedical group revenue in the first two months of last year and this year, respectively. Chang states that Taiwan approved three formulation products last July, NHI drug pricing was obtained in December, and delivery began in January to major hospitals. Since mainstream products are moving towards three formulations, it will be the source of growth for this product line.

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