Bora Navigates A Transitional 1Q26 And Sets A Strong Foundation For Rest Of The Year

Mr. Bobby Sheng, Chairman of Bora Group, stated, “The beginning of 2026 was eventful and challenging both in the world and at Bora. We have seen supply chain disruptions, inflation from wars, and continuous geopolitical tensions. Yet through it all, Bora Group’s disciplined approach to growth-oriented investment remained unwavering.

Our CDMO business CAPEX-to-revenue ratio reached an all-time high of over 10% in 2025, marking another year of upward progression and bringing the Company to a level comparable with established global CDMO peers. This marked a deliberate shift in where we direct investments from capacity-led expansion that defined our earlier growth chapters to a sharper focus on capability demands and modality, anchored in innovation and technology. Over the past 18 months, we have pursued an ambitious growth trajectory against a dynamic macroeconomic backdrop – recalibrating expectations, sharpening our strategy, and reaffirming long-term plans. The underlying demand environment supports our conviction: global pharma is growing at 5-8% per year, biologics CDMO outsourcing demand at 15%+ and small-molecule outsourcing demand at 8-10%. With our investment foundation now in place, we believe our CDMO business is positioned to compound organically at 13-23% annually.

In the first quarter, we executed a series of organizational adjustments, each aligned to a specific dimension of customer demand. We established the MSAT (Manufacturing, Science and Technology) function within the CDMO business, the R&D backbone of the platform, to deepen scientific and technical capability across our entire client base, an increasingly critical asset as small and mid-sized biotech and pharma clients rethink their supply chain. In parallel, we repurposed the Strategic Enterprise Account Management team into a networked model to serve clients for whom customer proximity is paramount. Together, these capability investments target specific customer pain points and position Bora to navigate the evolving political and economic landscape and capture a new chapter of commercial momentum.

To sum up, CDMO business in 1Q26 delivered US$27.2 million in total external wins on top of orders on hand, 60% or 7 molecules from pre-commercial programs. For context, full-year 2025 saw 16 pre-commercial molecule signings; 1Q26 alone has already secured nearly half that count in a single quarter. This run-rate acceleration is a leading indicator: as our capability investments take hold, forward visibility and growth potential are set to compound. Bora’s CDMO business has entered a new phase. Reinforcing this trajectory, the Group’s recently announced acquisition of MacroGenics’ Rockville, Maryland CDMO facility adds a substantial commercial-stage monoclonal antibody programs backlog and manufacturing expertise to the Group. Equipped with five 2,000-liter and two 500-liter single-use bioreactors and integrated QC and analytical labs and currently generating more than half of revenues from commercial manufacturing, the transaction marks a pivotal step in scaling Bora’s integrated biologics CDMO platform, known as Bora Biologics. DS and DP capabilities shall be integrated over the next 12–18 months to offer global biotech customers a single partner from development through commercial supply in the U.S..

On the pharma sales side, the Group faced competition across a handful of core generic products. Upsher-Smith is navigating the competitive landscape with a clear focus on the most margin-accretive opportunities while continuing to scout niche, brand-oriented assets. Near-term, DLS market share has been defended; over the medium term, sustained market share maximization of the infantile spasm franchise coupled with swift pipeline replenishment weighted toward differentiated assets is critical. In the first quarter, we saw unique patients for VIGAFYDE grew by more than 140% over same period last year and a continuous increase in new patients. Both healthy signs of steady execution pace building up to durable resilience in the pharma sales business.”



1Q26 Operational Achievements & 2026 Outlook



Global CDMO Operations

Revenues declined 24.62% year-over-year and 30.15% quarter-over-quarter including internal orders, mainly due to above-mentioned maintenance at fill and finish facility in Maryland, a routine cycle factored into our operating plan, and seasonality at Canada site. To scale biologics CDMO one-stop-shop platform in commercialized projects with SUB (Single Use Bioreactors) in the US; Board of Directors approved the acquisition of Rockville, Maryland based drug substance facility from MacroGenics for US$122.5 million.

Following closing, Bora Group intends to leverage the Rockville Site in cooperation with Tanvex Biopharma (TWSE: 6541), which operates the Group’s biologics CDMO franchise under the “Bora Biologics” brand. Together with Bora’s sterile drug product capabilities, this is expected to expand and strengthen the Group’s end-to-end biologics platform. The Rockville facility has operated as an outsource manufacturing partner since 2022 and is equipped with five 2,000-liter and two 500-liter single-use bioreactors and fully integrated QC and analytical laboratories and has been inspected by both the U.S. FDA and Japan’s PMDA.

During the quarter, 0.44 billion doses, or 108 molecules, were developed and manufactured. Excluding internal orders, the business accounted for 37.73% of consolidated revenues. Contribution from the top 20 global pharmaceutical companies stood at 32.10%.

As the Company continues to expand its CDMO capacity and capabilities, this year’s CAPEX plan is closely linked to the contracting cadence of a key customer anchored at Bora’s North American CDMO network. The Group expects to complete Maple Grove’s capital expenditure program in the first half of the year, sequencing the investment to grow in step with major pharmaceutical partners’ supply chain plans and optimize return on capital deployed.

Pharma Sales Operations

Discontinued operations impact in 2025 has materially abated this quarter, positioning Upsher-Smith to re-accelerate organic growth in 2026. Management has defined two strategic priorities for 2026, designed to enhance capital efficiency and sharpen commercial focus:

First, R&D capital allocation optimization. 505(b)(2) Pipeline programs have been transferred to Salus Therapeutics, an equity-method affiliate. Under this structure, Upsher-Smith retains the right to economic participation in commercial outcomes while shareholders’ exposure to early-stage development and regulatory risks, and associated cash burden is meaningfully reduced. The decision is consistent with the Group’s capital discipline observed across businesses.

Second, institutionalizing pipeline expansion capabilities. An integrated business development and medical affairs function is being established to systematically evaluate in-licensing, co-promotion, and bolt-on opportunities. This integrates Bora’s proven asset-selection and M&A strategy directly into Upsher-Smith’s commercial infrastructure, enabling franchise compounding through targeted external sourcing rather than capital-intensive internal development. These lifecycle initiatives focus but are not limited to pediatric epilepsy opportunities.

Collectively, Management expects Upsher-Smith to evolve fully into a capital efficient, commercially led, and therapeutically centered vehicle designed to deliver sustained shareholder value before exiting 2026.