PharmaEssentia Faces Nearly €98 Million Arbitration Ruling Against AOP, Yet Stock Hits Daily Limit Up Despite Negative News

PharmaEssentia held a press conference on Saturday (October 8) to disclose the partial arbitration ruling in the second phase of its dispute with AOP. The arbitral tribunal ruled that PharmaEssentia must pay AOP approximately €97.48 million (about NT$3.6 billion). However, the company emphasized that its revenue base has become increasingly robust, with projected 2025 revenue reaching NT$15.6 billion and cumulative revenue for the first seven months of this year nearing NT$14.5 billion, indicating no significant financial impact. On October 10, the stock defied negative sentiment, briefly hitting the daily limit-up price.

PharmaEssentia opened at NT$1,200, down from the previous close, but reversed course during trading and briefly reached the limit-up price of NT$1,360. It failed to close at that level, however. As of 11:10 a.m., the stock was trading at NT$1,340, up over 8%, with trading volume exceeding 3,000 lots.

The company explained that the tribunal found PharmaEssentia liable for delays in obtaining European marketing authorization and delivering products. After offsetting approximately €17 million in outstanding payments and royalties owed by AOP, PharmaEssentia was ordered to pay €65.88 million (approximately NT$2.452 billion). Additionally, due to disputes over drug procurement pricing, PharmaEssentia must refund €31.60 million (approximately NT$1.176 billion), bringing the total awarded amount to approximately €97.48 million (about NT$3.628 billion).

PharmaEssentia stressed that its revenue has steadily expanded in recent years. With 2025 revenue projected at NT$15.6 billion and cumulative revenue for the first seven months of the year reaching nearly NT$14.5 billion, the company asserts that the ruling will not have a material impact on its operations or financial condition. It also stated that it will consider filing for the annulment of the arbitration award.

In July alone, the company reported revenue of NT$2.507 billion, up 7.47% month-on-month and 92.59% year-on-year, marking another record high. Cumulative revenue for the first seven months of the year reached NT$14.484 billion, up 77.46% year-on-year, reflecting sustained strong growth.