Focus Stock: Polaris Pharmaceuticals Sees Operational Recovery in Second Half, Set to Return to Growth by 2027, Surpassing All Moving Averages

Polaris Pharmaceuticals (6472-TW) reported lower profits in the first half of the year. However, with merger and acquisition synergies emerging, its CDMO business is gaining strong momentum, while brand-name drugs and Consumer Health Care (CHC) are also contributing positively. Financial institutions now anticipate an operational recovery in the second half, with a full return to growth projected by 2027. This optimism has driven Polaris's stock price sharply higher today (20th), surging over half of the daily limit and surpassing all moving averages.

Polaris opened at NT$420 this morning, rising steadily to a high of NT$445—approaching the daily upper limit—and reclaiming all moving averages, with trading volume exceeding 1,000 shares.

The company's small-molecule CDMO projects are expected to ramp up significantly in the second half of 2027, which should improve plant utilization, gross margins, and overall profitability.

On the large-molecule front, the Rockville formulation facility in the U.S. was officially consolidated into financial statements in July. Filling capacity at the Maryland injectables plant is also expected to exceed first-half levels in the second half. With multiple commercialization projects underway, analysts believe the Rockville facility could turn profitable by 2027.

Additionally, the proportion of revenue from brand and specialty drugs continues to rise, with VIGAFYDE expanding its prescription coverage. Six new generics are scheduled for launch in the second half. In the CHC segment, full consolidation begins in Q3, with new product launches rolling out across European and U.S. markets. Combined with entry into the peak consumer season, analysts expect both revenue and profit growth in CHC.