Reported Earnings • May 13
First quarter 2026 earnings released: EPS: NT$0.95 (vs NT$0.71 in 1Q 2025) First quarter 2026 results: EPS: NT$0.95 (up from NT$0.71 in 1Q 2025). Revenue: NT$239.8m (up 28% from 1Q 2025). Net income: NT$137.2m (up 34% from 1Q 2025). Profit margin: 57% (up from 55% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Announcement • May 05
Xtalpi and Pharmaengine Achieve Enrollment Milestone for Pep08 and Initiate Second Synthetic Lethality Program XtalPi (2228.HK), an AI- and robotics-powered innovation platform, announced dual breakthroughs in its strategic partnership with PharmaEngine (4162.TWO). PEP08, a next-generation PRMT5 inhibitor discovered via XtalPi's platform, has successfully begun enrollments in a Phase I solid tumor trial, achieving a new clinical milestone. Built upon the success of PEP08 at the drug discovery stage, the two companies initiated a second project, targeting a different undisclosed synthetic lethality mechanism. PEP08 received clinical clearance in June 2025 and is currently in Phase I evaluation for solid tumors in Australia and the Taiwan region. The enrollment milestone underscores XtalPi's ability to deliver differentiated molecules with strong drug-like properties, while demonstrating the program's steady clinical advancement. Leveraging XtalPi's integrated quantum physics-, AI-, and robotics-powered platform, PEP08 was designed to overcome the dose-limiting hematological toxicities seen with first-generation PRMT5 inhibitors. The molecule exploits an innovative MTA-cooperative binding mode to specifically target MTAP-deleted tumors—a genomic alteration found in 10-15% of all human cancers, with higher frequencies observed in NSCLC, pancreatic cancer, glioblastoma, and more. Preclinical data presented at 2025 AACR show PEP08 achieving superior efficacy compared to other clinical-stage MTA-cooperative PRMT5 inhibitors across multiple MTAP-deleted tumor models, supporting a potential best-in-class profile. Driven by the success of PEP08 at the drug discovery stage, the partnership expanded into a second project. By combining PharmaEngine's deep oncology expertise with XtalPi's AI and robotics molecular design engine, the duo aims to capture additional market share in the synthetic lethality space. Synthetic lethality is widely recognized as challenging yet highly promising frontier in oncology. According to Globocan and industry data, the global market is expected to grow from $4,200 million to $17,600 million by 2033, at a 17.3% CAGR. In recent years, several early-stage licensing deals in this space have exceeded $1,000 million, further underscoring the immense clinical value and commercial appetite for this category. The clinical advancement of PEP08 and the ongoing collaboration of the second project serve as a dual validation of XtalPi's AI+robotics discovery engine. By repeatedly meeting rigorous benchmarks in complex target spaces, XtalPi has built a reproducible innovation model that turns deep know-how into high-value clinical assets. Underpinned by a milestone-sharing structure, this model tightly aligns the platform's evolution with clinical success, quickly translating biological insights into tangible impact for partners and patients around the world. Reported Earnings • Mar 12
Full year 2025 earnings released: EPS: NT$2.70 (vs NT$12.19 in FY 2024) Full year 2025 results: EPS: NT$2.70 (down from NT$12.19 in FY 2024). Revenue: NT$911.4m (down 64% from FY 2024). Net income: NT$387.6m (down 78% from FY 2024). Profit margin: 43% (down from 69% in FY 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Announcement • Mar 04
PharmaEngine, Inc., Annual General Meeting, May 26, 2026 PharmaEngine, Inc., Annual General Meeting, May 26, 2026. Location: b2 floor no,8, sec.3 min sheng e. rd., jhongshan district, taipei city Taiwan New Risk • Nov 12
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 89% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 89% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Nov 12
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: NT$0.95 (up from NT$0.64 in 3Q 2024). Revenue: NT$242.2m (up 11% from 3Q 2024). Net income: NT$136.5m (up 48% from 3Q 2024). Profit margin: 56% (up from 42% in 3Q 2024). The increase in margin was primarily driven by lower expenses. Revenue exceeded analyst estimates by 10%. Earnings per share (EPS) also surpassed analyst estimates by 40%. Revenue is expected to decline by 63% p.a. on average during the next 2 years, while revenues in the Biotechs industry in Asia are expected to grow by 25%. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Announcement • Sep 09
Xtalpi Inc. Announces Pep08 Receives Regulatory Clearances to Initiate Phase 1 Clinical Trials in Solid Tumor XtalPi Inc. has announced that PEP08, a next-generation PRMT5 inhibitor candidate developed through its AI drug discovery collaboration with PharmaEngine, Inc. has received regulatory clearances to initiate Phase 1 clinical trials in solid tumors. Approvals include Australia'sHuman Research Ethics Committee (HREC), recognized by the Australian Therapeutic Goods Administration (TGA), and the food and drug authority of the Taiwan region (TFDA). This milestone triggered a payment to XtalPi under the partnership agreement. PRMT5 (Protein Arginine Methyltransferase 5) is a validated synthetic lethality target in tumors harboring homozygous MTAP deletion, which is related to poor prognosis and present in 10-15% of human cancers, including small cell lung cancer (NSCLC), mesothelioma, pancreatic cancer, glioblastoma multiforme (GBM), head and neck cancer, esophageal cancer, and bladder cancer. While PRMT5 inhibition offers a potent mechanism for targeted therapy, first-generation inhibitors face significant challenges in selectivity, resulting in dose-limiting toxicities and unmet medical needs. Leveraging its integrated drug discovery platform that combines quantum physics, AI, and large-scale robotic experiments, XtalPi partnered with PharmaEngine's scientific team to conduct de novo drug design. The AI platform generated a multi-million compound library for PRMT5, identifying novel lead series with exceptional potential and selectivity. Following iterative optimization through quantum physics and AI-powered ADMET screening, PEP08 emerged as the preclinical candidate (PCC) and advanced through IND-enabling studies by PharmaEngine. As a second-generation PRMT5 inhibitor with a novel scaffold, PEP08 demonstrates superior activity and selectivity. Its MTA-cooperative binding mode stabilizes a ternary complex with PRMT5, enabling highly selective target inhibition. This mechanism drives potent synthetic lethality efficacy against MTAP-deleted tumor cells while minimizing off-target effects on normal cells, highlighting significant therapeutic potential. Preclinical studies revealed PEP08's markedly improved safety profile compared to first-generation PRMT5 inhibitors, alongside favorable blood-brain barrier penetration and overall developability characteristics. The compound achieved robust in vivo efficacy across multiple animal models. Compared to other clinical-stage second-generation candidates, PEP08 exhibits potential best-in-class properties and compelling combination therapy opportunities. PharmaEngine presented these findings at the 2025 American Association for Cancer Research (AACR) Annual Meeting. PEP08's successful regulatory clearance and milestone achievement underscore XtalPi's platform-driven innovation capabilities and mark a pivotal advancement in its partnership with PharmaEngine. XtalPi remains committed to empowering partners to discover novel drug candidates addressing complex targets, accelerate the development of competitive pipeline projects, and deliver transformative medicines to patients worldwide. Reported Earnings • Aug 15
Second quarter 2025 earnings released: EPS: NT$0.12 (vs NT$1.11 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.12 (down from NT$1.11 in 2Q 2024). Revenue: NT$196.8m (down 25% from 2Q 2024). Net income: NT$17.8m (down 89% from 2Q 2024). Profit margin: 9.0% (down from 61% in 2Q 2024). The decrease in margin was primarily driven by higher expenses. Revenue is expected to decline by 63% p.a. on average during the next 2 years, while revenues in the Biotechs industry in Asia are expected to grow by 23%. Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. New Risk • Aug 06
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 89% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 89% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Declared Dividend • Jul 31
Dividend increased to NT$6.00 Dividend of NT$6.00 is 300% higher than last year. Ex-date: 13th August 2025 Payment date: 29th August 2025 Dividend yield will be 8.1%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is well covered by both earnings (49% earnings payout ratio) and cash flows (40% cash payout ratio). The dividend has increased by an average of 24% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 95% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • May 24
PharmaEngine, Inc. Approves Board Elections PharmaEngine, Inc. announced at annual shareholders meeting held on May 23, 2025, the shareholders elected Wen-Ta Chiu and Pau-Chu Lo as Independent Directors and Jan-Yau Hsu as director of the company. Reported Earnings • May 14
First quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2025 results: EPS: NT$0.71 (up from NT$0.57 in 1Q 2024). Revenue: NT$187.4m (up 14% from 1Q 2024). Net income: NT$102.3m (up 25% from 1Q 2024). Profit margin: 55% (up from 50% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 5.8%. Earnings per share (EPS) exceeded analyst estimates by 31%. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Apr 22
PharmaEngine, Inc. to Report Q1, 2025 Results on Apr 29, 2025 PharmaEngine, Inc. announced that they will report Q1, 2025 results on Apr 29, 2025 Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to NT$76.80, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 28x in the Biotechs industry in Taiwan. Total returns to shareholders of 2.0% over the past three years. New Risk • Mar 16
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 189% Dividend yield: 5.7% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (146% accrual ratio). Minor Risks Dividend is not well covered by cash flows (189% cash payout ratio). Share price has been volatile over the past 3 months (6.8% average weekly change). Buy Or Sell Opportunity • Feb 28
Now 24% undervalued Over the last 90 days, the stock has risen 12% to NT$109. The fair value is estimated to be NT$143, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 33% over the last 3 years. Earnings per share has grown by 35%. Revenue is forecast to decline by 62% in a year. Earnings are forecast to decline by 74% in the next year. Major Estimate Revision • Feb 18
Consensus revenue estimates increase by 13% The consensus outlook for revenues in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$1.49b to NT$1.68b. EPS estimate increased from NT$8.24 to NT$12.19 per share. Net income forecast to grow 112% next year vs 26% growth forecast for Biotechs industry in Taiwan. Consensus price target of NT$120 unchanged from last update. Share price was steady at NT$110 over the past week. Announcement • Feb 18
PharmaEngine, Inc. to Report Fiscal Year 2024 Results on Feb 25, 2025 PharmaEngine, Inc. announced that they will report fiscal year 2024 results at 9:00 AM, Taipei Standard Time on Feb 25, 2025 Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$113, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 12x in the Biotechs industry in Asia. Total returns to shareholders of 87% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$101 per share. Announcement • Jan 24
PharmaEngine, Inc., Annual General Meeting, May 23, 2025 PharmaEngine, Inc., Annual General Meeting, May 23, 2025, at 09:00 Taipei Standard Time. Location: b2 floor no,8, sec.3 min sheng e. rd., jhongshan district, taipei city Taiwan New Risk • Jan 09
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 26% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (6.1% average weekly change). New Risk • Dec 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. This is currently the only risk that has been identified for the company. Buy Or Sell Opportunity • Dec 16
Now 21% undervalued Over the last 90 days, the stock has risen 5.4% to NT$87.20. The fair value is estimated to be NT$111, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.9% over the last 3 years. Earnings per share has declined by 24%. Revenue is forecast to grow by 30% in a year. Earnings are forecast to grow by 70% in the next year. New Risk • Nov 09
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 26% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Price Target Changed • Nov 08
Price target increased by 13% to NT$120 Up from NT$106, the current price target is provided by 1 analyst. New target price is 17% above last closing price of NT$103. Stock is down 3.3% over the past year. The company is forecast to post earnings per share of NT$2.98 for next year compared to NT$1.91 last year. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NT$102, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 14x in the Biotechs industry in Asia. Total returns to shareholders of 85% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$65.75 per share. Announcement • Oct 24
PharmaEngine, Inc. to Report Q3, 2024 Results on Oct 31, 2024 PharmaEngine, Inc. announced that they will report Q3, 2024 results on Oct 31, 2024 Buy Or Sell Opportunity • Aug 07
Now 21% overvalued Over the last 90 days, the stock has fallen 7.1% to NT$86.70. The fair value is estimated to be NT$71.94, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 11% over the last 3 years. Earnings per share has declined by 35%. Revenue is forecast to grow by 0.08% in a year. Earnings are forecast to grow by 7.1% in the next year. Reported Earnings • Aug 07
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: NT$1.11 (up from NT$0.52 in 2Q 2023). Revenue: NT$261.9m (up 58% from 2Q 2023). Net income: NT$158.9m (up 112% from 2Q 2023). Profit margin: 61% (up from 45% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 17%. Earnings per share (EPS) also surpassed analyst estimates by 106%. Revenue is forecast to grow 1.7% p.a. on average during the next 2 years, compared to a 24% growth forecast for the Biotechs industry in Asia. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. New Risk • Aug 05
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.8% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Declared Dividend • Jul 27
Dividend reduced to NT$1.50 Dividend of NT$1.50 is 25% lower than last year. Ex-date: 12th August 2024 Payment date: 30th August 2024 Dividend yield will be 1.5%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is covered by both earnings (78% earnings payout ratio) and cash flows (86% cash payout ratio). The dividend has increased by an average of 8.9% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 17% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Jul 18
PharmaEngine, Inc. to Report Q2, 2024 Results on Jul 25, 2024 PharmaEngine, Inc. announced that they will report Q2, 2024 results on Jul 25, 2024 Reported Earnings • May 04
First quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2024 results: EPS: NT$0.57 (up from NT$0.57 in 1Q 2023). Revenue: NT$164.5m (down 2.3% from 1Q 2023). Net income: NT$81.7m (flat on 1Q 2023). Profit margin: 50% (up from 48% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 8.6%. Earnings per share (EPS) exceeded analyst estimates by 16%. Revenue is forecast to grow 8.7% p.a. on average during the next 2 years, compared to a 23% growth forecast for the Biotechs industry in Asia. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Announcement • Apr 26
PharmaEngine, Inc. Announces First Patient Dosed in Phase I Trial of PEP07 for Solid Tumors PharmaEngine, Inc. announced first patient dosed in Phase I trial of PEP07 for solid tumor cancers. PEP07 Phase 1 clinical trial for solid tumors received approval from TFDA in September 2023. PEP07 is a checkpoint kinase 1 (CHK1) inhibitor featuring high kinase selectivity, high potency and brain penetrating which targets the DNA Damage Response (DDR) pathway. PEP07 has demonstrated significant single-agent activity and combination potential with standard treatments in preclinical model. Currently, PharmaEngine is conducting a PEP07 Phase 1 clinical trial for solid tumor cancers in Taiwan and Company are announcing that the first patient has been dosed. Title: PEP07-102: Participants and Investigator Sites: Approximately a total of 30 participants in Taiwan; Primary Objectives: Evaluate the safety and identify the Recommended Phase 2 Dose (RP2D) of PEP07 for solid tumor cancer patients; Study Phase: 1; Protocol Number: PEP07-102; Clinical Study Design: Open label dose finding study. New drug name or code: PEP07 Indication: PEP07 is a checkpoint kinase 1 (CHK1) inhibitor featuring high kinase selectivity, high potency and brain penetrating which targets the DNA Damage Response (DDR) pathway. Planned development stages: Phase 1 to 3 clinical studies, then apply for NDA. Current development stage: Application. submission/approval/disapproval/each of clinical trials (include interim analysis): Approval Once disapproved by competent authority or each of clinical trials (include interim analysis) results less than statistically significant sense, the risks & the associated measures the Company may occur: None After obtaining official approval or the results of statistically significant sense, the future strategy: PEP07 is a CHK1 inhibitor with features such as high kinase selectivity, high potency and brain penetrating. The main function is to trigger replication catastrophe which leads to apoptosis in the cancer cell during DNA damage. PEP07 has demonstrated significant single-agent activity and combination potential with standard treatments in preclinical model. Currently, PharmaEngine has been conducting Phase 1 clinical trials for hematologic and solid tumor cancers. Accumulated investment expenditure incurred:Due to possible future involvement of international cooperation negotiations or product marketing strategies, to protect the rights and interests of investors, we will not disclose the investment expenditure at the time being. Upcoming development plan: Estimated date of completion: It is expected to be completed in about two years for the clinical study. Estimated responsibilities: All expenditures are solely funded by PharmaEngine, Inc. Market situation:Per the latest data provided by World Health Organization's GLOCAN database, worldwide, in 2022, there was an estimated 19.98 million new cancer cases and around 9.74 million cancer deaths. New drug development requires long process, vast investments, and with no guarantee in success which may pose investment risks. The investors are advised to exercise caution and conduct a thorough evaluation. Announcement • Apr 19
PharmaEngine, Inc. to Report Q1, 2024 Results on Apr 25, 2024 PharmaEngine, Inc. announced that they will report Q1, 2024 results on Apr 25, 2024 Reported Earnings • Mar 13
Full year 2023 earnings released: EPS: NT$1.91 (vs NT$2.22 in FY 2022) Full year 2023 results: EPS: NT$1.91 (down from NT$2.22 in FY 2022). Revenue: NT$767.7m (up 17% from FY 2022). Net income: NT$274.7m (down 14% from FY 2022). Profit margin: 36% (down from 49% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. New Risk • Mar 07
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 5.1% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 99% Cash payout ratio: 132% Earnings are forecast to decline by an average of 5.1% per year for the foreseeable future. High level of non-cash earnings (31% accrual ratio). Announcement • Mar 01
PharmaEngine, Inc., Annual General Meeting, May 24, 2024 PharmaEngine, Inc., Annual General Meeting, May 24, 2024. Location: Importers and Exporters Association of Taipei, Conference Room II, 11F, 350, Sung Chiang Road, Taipei Taiwan Agenda: To consider 2023 business report; to consider Audit Committee's review of the 2023 annual final accounting ledgers and statements; to consider Report on 2023 employees' and directors' remuneration; to consider Report on 2023 remuneration paid to directors; to consider Acknowledgment of the 2023 Business Report and Financial Statements; to consider Acknowledgment of the 2023 Earnings Distribution; and to consider Discussion of amendments to the Company's "Operational Procedures for Derivatives". Reported Earnings • Nov 08
Third quarter 2023 earnings: Revenues and EPS in line with analyst expectations Third quarter 2023 results: EPS: NT$0.56 (down from NT$0.61 in 3Q 2022). Revenue: NT$245.9m (up 59% from 3Q 2022). Net income: NT$80.8m (down 7.6% from 3Q 2022). Profit margin: 33% (down from 56% in 3Q 2022). Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 46% growth forecast for the Biotechs industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 27% per year, which means it is well ahead of earnings. New Risk • Oct 24
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.3% per year for the foreseeable future. Minor Risks Share price has been volatile over the past 3 months (6.0% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Oct 24
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$110, the stock trades at a forward P/E ratio of 60x. Average forward P/E is 26x in the Biotechs industry in Asia. Total returns to shareholders of 115% over the past three years. Announcement • Sep 23
TFDA Approves PharmaEngine, Inc.'s PEP07 Phase I Clinical Trial for Solid Tumor Cancers PharmaEngine, Inc. announced TFDA approved PEP07 Phase I Clinical Trial forSolid Tumor Cancers. New drug name or code: PEP07. Indication: PEP07 is a checkpoint kinase 1 (CHK1) inhibitor featuring high kinase selectivity, brain penetrating and oral bioavailability which targets the DNA Damage Response (DDR) network. PEP07 has demonstrated significant single-agent activity and combination potential with standard treatments in preclinical models. Planned development stages: Phase I, II, III clinical trial, and New Drug Application. Current development stage: (1) Application submission/approval/disapproval/each of clinical trials (include interim analysis): A PEP07 Phase I clinical trial in solid tumor cancers has been approved by TFDA. (ClinicalTrials.gov Identifier: NCT05983523) (2) Once disapproved by competent authority or each of clinical trials (include interim analysis) results less than statistically significant sense, the risks & the associated measures the Company may occur: Not applicable. Accumulated investment expenditure incurred: For negotiation on potential licensing deals in the future, and for the best interest of shareholders, this information is kept confidential temporarily. Upcoming Dividend • Aug 08
Upcoming dividend of NT$2.00 per share at 2.4% yield Eligible shareholders must have bought the stock before 15 August 2023. Payment date: 01 September 2023. Payout ratio is on the higher end at 95%, and the cash payout ratio is above 100%. Trailing yield: 2.4%. Lower than top quartile of Taiwanese dividend payers (5.4%). Lower than average of industry peers (2.8%). Reported Earnings • Aug 05
Second quarter 2023 earnings released: EPS: NT$0.52 (vs NT$0.56 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.52 (down from NT$0.56 in 2Q 2022). Revenue: NT$166.1m (flat on 2Q 2022). Net income: NT$75.1m (down 6.9% from 2Q 2022). Profit margin: 45% (down from 48% in 2Q 2022). Revenue is forecast to grow 7.6% p.a. on average during the next 2 years, compared to a 59% growth forecast for the Biotechs industry in Taiwan. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has increased by 3% per year. New Risk • Aug 04
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 3.2% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 95% Cash payout ratio: 128% Earnings are forecast to decline by an average of 3.2% per year for the foreseeable future. High level of non-cash earnings (44% accrual ratio). Announcement • Jul 12
PharmaEngine, Inc. Announces EMAs Acceptance of Onivyde's Type II Variation Application PharmaEngine’s global partner, Servier, applied the Type II Variation of ONIVYDE to the European Medicines Agency (EMA). EMA has accepted the application. The new indication is using ONIVYDER in combination with oxaliplatin, 5-fluorouracil and leucovorin as first line treatment for patients with metastatic adenocarcinoma of the pancreas. Name of the product: NAPOLI-3. Indication: in combination with oxaliplatin, 5-fluorouracil and leucovorin for the first line treatment of patients with metastatic adenocarcinoma of pancreas. The next step in development: file post-approval change for a new indication. Current stage of the Research and Development. Post-approval change in indication, drug administration and dosage Future direction if it receives the approval from Governmental Authority: Servier’s sales team will be responsible for the sales in Europe while PharmaEngine’s sales team will be responsible for the sales in Taiwan. New Risk • Jun 26
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 95% Cash payout ratio: 128% Dividend yield: 2.1% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 95% Cash payout ratio: 128% High level of non-cash earnings (44% accrual ratio). Announcement • Jun 15
PharmaEngine, Inc. Announces Approval of Phase 1 Clinical Study of Pep07 by TFDA PharmaEngine, Inc. announced that Phase 1 clinical study of PEP07 has been approved by TFDA. Indication: PEP07 is a checkpoint kinase 1 (CHK1) inhibitor featuring high kinase selectivity, brain penetrating and oral bioavailability which targets the DNA Damage Response (DDR) network. PEP07 has demonstrated significant single-agent activity and combination potential with standard treatments in preclinical models. Current development stage: (1)Application submission/approval/disapproval/each of clinical trials (include interim analysis): a PEP07 Phase I clinical trial in hematological cancers (e.g., AML or MCL) has been approved by TFDA. (ClinicalTrials.gov Identifier: NCT05659732) Estimated date of completion: actual timeline depends on clinical progress and subsequent regulatory review. Reported Earnings • Mar 19
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: NT$2.22 (down from NT$2.95 in FY 2021). Revenue: NT$654.4m (flat on FY 2021). Net income: NT$318.8m (down 25% from FY 2021). Profit margin: 49% (down from 65% in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 48%. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has increased by 42% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Nov 16
Price target decreased to NT$107 Down from NT$116, the current price target is provided by 1 analyst. New target price is 16% below last closing price of NT$128. Stock is up 127% over the past year. The company is forecast to post earnings per share of NT$9.27 for next year compared to NT$2.95 last year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 5 non-independent directors. Independent Director Chien-Huang Lin was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improved over the past week After last week's 18% share price gain to NT$113, the stock trades at a trailing P/E ratio of 42.9x. Average forward P/E is 28x in the Biotechs industry in Taiwan. Total returns to shareholders of 76% over the past three years. Reported Earnings • Nov 06
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: NT$0.61 (up from NT$0.51 in 3Q 2021). Revenue: NT$154.9m (down 13% from 3Q 2021). Net income: NT$87.5m (up 20% from 3Q 2021). Profit margin: 56% (up from 41% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 19%. Earnings per share (EPS) also missed analyst estimates by 12%. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 29
Investor sentiment deteriorated over the past week After last week's 19% share price decline to NT$114, the stock trades at a trailing P/E ratio of 45.2x. Average forward P/E is 24x in the Biotechs industry in Taiwan. Total returns to shareholders of 62% over the past three years. Buying Opportunity • Sep 19
Now 20% undervalued Over the last 90 days, the stock is up 54%. The fair value is estimated to be NT$162, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 35% over the last 3 years. Earnings per share has grown by 55%. Announcement • Sep 03
PharmaEngine, Inc. Announces Change of Board of Directors Chairperson PharmaEngine, Inc. announced the following changes to the board: Name of the previous position holder: Tu, Ted. Resume of the previous position holder: Chairman of PharmaEngine Inc. Name of the new position holder: Hsu, Jan-Yau .Resume of the new position holder: Former Chairman of TWSE. Reason for the change: TTY Biopharm Company Limited assigned a new representative to serve as institutional director. Effective date of the new appointment is September 1, 2022. Announcement • Aug 31
PharmaEngine, Inc. Announces Management Changes, Effective September 1, 2022 PharmaEngine, Inc. announced Hsu, Jan-Yau, Former Chairman of TWSE as institutional director in place of Tu, Ted, Chairman of PharmaEngine Inc. effective date of appointment is September 1, 2022. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment improved over the past week After last week's 15% share price gain to NT$101, the stock trades at a trailing P/E ratio of 40x. Average forward P/E is 29x in the Biotechs industry in Taiwan. Total returns to shareholders of 48% over the past three years. Upcoming Dividend • Aug 08
Upcoming dividend of NT$2.70 per share Eligible shareholders must have bought the stock before 15 August 2022. Payment date: 02 September 2022. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.2%. Lower than top quartile of Taiwanese dividend payers (6.6%). Higher than average of industry peers (2.8%). Reported Earnings • Aug 05
Second quarter 2022 earnings: Revenues and EPS in line with analyst expectations Second quarter 2022 results: EPS: NT$0.56 (down from NT$1.14 in 2Q 2021). Revenue: NT$166.9m (up 5.5% from 2Q 2021). Net income: NT$80.7m (down 51% from 2Q 2021). Profit margin: 48% (down from 105% in 2Q 2021). The decrease in margin was primarily driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Jul 28
Pharmaengine, Inc. Announces Dividend for 2021,Payment Date of Cash Dividend Distribution Is September 2, 2022 PharmaEngine, Inc. announced dividend for 2021. Type and monetary amount of dividend distribution is Cash dividend $387,711,468, TWD 2.7 per share. Ex-rights (Ex-dividend) date is August 15, 2022. Ex-rights (Ex-dividend) record date is August 21, 2022. Payment date of cash dividend distribution id September 2, 2022. Major Estimate Revision • Jul 01
Consensus revenue estimates increase by 10% The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from NT$951.0m to NT$1.05b. EPS estimate increased from NT$2.98 to NT$3.12 per share. Net income forecast to grow 12% next year vs 26% growth forecast for Biotechs industry in Taiwan. Consensus price target of NT$84.67 unchanged from last update. Share price was steady at NT$88.10 over the past week. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment improved over the past week After last week's 16% share price gain to NT$88.80, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 26x in the Biotechs industry in Asia. Total returns to shareholders of 6.4% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$97.39 per share. Announcement • May 29
Pharmaengine, Inc. Approves the Change of the Member of Compensation Committee PharmaEngine, Inc. approved the appointment of Ming-Daw Chang, Chairman, Bank of Panhsin to the Compensation Committee in place of Charles Chiang, effective from May 27, 2022. Buying Opportunity • May 12
Now 25% undervalued Over the last 90 days, the stock is up 16%. The fair value is estimated to be NT$99.34, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 42% over the last 3 years. Earnings per share has grown by 62%. Revenue is forecast to grow by 40% in a year. Earnings is forecast to grow by 8.1% in the next year. Reported Earnings • May 08
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: NT$0.68 (up from NT$0.52 in 1Q 2021). Revenue: NT$174.1m (up 51% from 1Q 2021). Net income: NT$97.0m (up 28% from 1Q 2021). Profit margin: 56% (down from 65% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.3%. Over the next year, revenue is forecast to grow 40%, compared to a 11,716% growth forecast for the industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Price Target Changed • Apr 27
Price target decreased to NT$73.50 Down from NT$116, the current price target is an average from 3 analysts. New target price is 10% below last closing price of NT$82.00. Stock is up 13% over the past year. The company is forecast to post earnings per share of NT$2.80 for next year compared to NT$2.95 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Director Sonny Wang was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Feb 25
Investor sentiment improved over the past week After last week's 16% share price gain to NT$77.90, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 28x in the Biotechs industry in Asia. Total loss to shareholders of 20% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$78.92 per share. Announcement • Jan 28
PharmaEngine, Inc., Annual General Meeting, May 27, 2022 PharmaEngine, Inc., Annual General Meeting, May 27, 2022. Location: No. 8, Sec. 3, Minsheng E. Rd., Taipei City Taiwan Agenda: To consider 2021 business report and 2022 business plan; to Report on 2021 employees and directors remuneration; and to report the execution status of buying back treasury shares in 2021 and the Amendments of treasury shares transferred to employees regulations. Buying Opportunity • Jan 21
Now 21% undervalued Over the last 90 days, the stock is up 9.4%. The fair value is estimated to be NT$80.20, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 38% per annum over the last 3 years. Earnings per share has grown by 49% per annum over the last 3 years. Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS NT$0.51 (vs NT$0.13 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$177.1m (up 85% from 3Q 2020). Net income: NT$73.2m (up 298% from 3Q 2020). Profit margin: 41% (up from 19% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 13
Second quarter 2021 earnings released: EPS NT$1.14 (vs NT$0.099 in 2Q 2020) Second quarter 2021 results: Revenue: NT$158.3m (up 76% from 2Q 2020). Net income: NT$165.7m (up NT$151.3m from 2Q 2020). Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. Reported Earnings • May 11
First quarter 2021 earnings released: EPS NT$0.52 (vs NT$0.34 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$115.6m (up 38% from 1Q 2020). Net income: NT$75.7m (up 55% from 1Q 2020). Profit margin: 65% (up from 58% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has fallen by 20% per year, which means it is performing significantly worse than earnings. Reported Earnings • Mar 23
Full year 2020 earnings released: EPS NT$4.15 (vs NT$0.29 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$1.06b (up 236% from FY 2019). Net income: NT$604.3m (up NT$561.7m from FY 2019). Profit margin: 57% (up from 14% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Announcement • Mar 16
PharmaEngine, Inc., Annual General Meeting, May 31, 2021 PharmaEngine, Inc., Annual General Meeting, May 31, 2021. Is New 90 Day High Low • Feb 24
New 90-day high: NT$66.90 The company is up 16% from its price of NT$57.90 on 26 November 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Biotechs industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$285 per share. Is New 90 Day High Low • Jan 29
New 90-day low: NT$48.60 The company is down 11% from its price of NT$54.40 on 30 October 2020. The Taiwanese market is up 22% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Biotechs industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$271 per share. Is New 90 Day High Low • Jan 13
New 90-day low: NT$53.70 The company is down 11% from its price of NT$60.50 on 16 October 2020. The Taiwanese market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Biotechs industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$273 per share. Major Estimate Revision • Dec 12
Analysts lower revenue estimates to NT$384.0m The 2020 consensus revenue estimate decreased from NT$660.0m. Earning per share (EPS) estimate was also lowered from NT$1.75 to NT$0.75 for the same period. Net income is expected to grow by 219% next year compared to 52% growth forecast for the Biotechs industry in Taiwan. The consensus price target of NT$70.50 was unchanged from the last update. Share price is down by 1.2% to NT$59.10 over the past week. Is New 90 Day High Low • Nov 17
New 90-day low: NT$53.90 The company is down 24% from its price of NT$70.60 on 19 August 2020. The Taiwanese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Biotechs industry, which is down 5.0% over the same period. Analyst Estimate Surprise Post Earnings • Nov 08
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 5.1%. Earnings per share (EPS) also surpassed analyst estimates. Reported Earnings • Nov 08
Third quarter 2020 earnings released: EPS NT$0.13 The company reported a soft third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: NT$95.7m (up 17% from 3Q 2019). Net income: NT$18.4m (down 22% from 3Q 2019). Profit margin: 19% (down from 29% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 71% per year but the company’s share price has only fallen by 29% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Oct 27
New 90-day low: NT$56.70 The company is down 22% from its price of NT$72.50 on 29 July 2020. The Taiwanese market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Biotechs industry, which is down 3.0% over the same period. Is New 90 Day High Low • Oct 12
New 90-day low: NT$59.10 The company is down 28% from its price of NT$82.20 on 14 July 2020. The Taiwanese market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Biotechs industry, which is down 17% over the same period. Is New 90 Day High Low • Sep 23
New 90-day low: NT$64.70 The company is down 17% from its price of NT$78.20 on 24 June 2020. The Taiwanese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Biotechs industry, which is up 1.0% over the same period.