Hyphens Pharma International has announced a strategic review of its product portfolio, focusing on higher-margin products, as revealed in a recent report by CGS International. The company’s core profit after tax and minority interests (PATMI) for the first half of 2025 stood at S$5.8 million, marking a 7.4% year-on-year decline. However, the gross profit reached a record S$35.3 million, a 1.5% increase from the previous year, attributed to the shedding of low-margin products.
The company’s revenue for the first half of 2025 decreased by 10.1% year-on-year to S$89.5 million. This decline is seen as a result of Hyphens Pharma’s deliberate move to discontinue low-margin products, such as the infant formula Physiolac in Cambodia and Myanmar, which contributed less than 1% to the company’s gross profit. The decision aligns with Hyphens Pharma’s strategy to enhance its profitability by prioritising products with higher gross profit margins.
Despite the revenue drop, Hyphens Pharma’s gross profit margin expanded by 4.5 percentage points to 39.4% in the first half of 2025. The company faced one-off losses due to inventory obsolescence and foreign exchange translation, impacting its headline net profit, which fell to S$1.7 million. These losses were attributed to excess inventory of the nasal spray brand Sterimar and currency fluctuations affecting sales in Vietnam and Indonesia.
Looking forward, Hyphens Pharma is optimistic about its growth prospects, particularly in its medical aesthetics portfolio. The company has increased its earnings per share (EPS) forecasts for 2025 to 2027 by up to 14.6%, reflecting an improved profitability outlook. The target price for Hyphens Pharma’s shares has been raised to S$0.43, indicating a potential upside of 48.3% from the current price.
Hyphens Pharma’s strategic shift is expected to bolster its growth trajectory, with new product launches like Winlevi, a topical acne treatment, and Metoject, a treatment for rheumatoid arthritis, anticipated to drive future revenues. The company remains focused on optimising its product offerings to sustain its competitive edge in the pharmaceutical industry.
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