Why is Far Eastern Biotech's loan disclosure significant?

The loan balance exceeds 20% of equity, triggering mandatory disclosure for investor transparency.

What are the main purposes of the loans?

To expand CDMO operations, acquire assets, and strengthen working capital in the U.S.

Does this pose financial risks?

While intra-group, high loan ratios may raise concerns over repayment and governance.

What characterizes Far Eastern Biotech's global strategy?

Local U.S. operations via subsidiaries and post-M&A funding to build CDMO competitiveness.

What developments are expected next?

New product approvals or major contracts from U.S. subsidiaries are likely in the near term.

Far Eastern Biotech Announces Substantial Intercompany Loans Under Taiwan's Public Company Lending Guidelines

Published Jun 18, 2026 9:00 AM ・ Updated Jun 20, 2026 12:30 AM ・ 6 min read ・ Source: PR Times

Far Eastern Biotech and its subsidiaries have extended loans totaling NT$4.94 billion to affiliated companies, exceeding 20% of the company's net worth. The funds are primarily allocated to support CDMO operations and asset acquisitions in the U.S.

1. Date of Fact: 2026/06/18

2. The balance of funds lent by the publicly issued company and its subsidiaries to others exceeds 20% of the company's net equity as shown in the most recent financial statements:

(1) Name of the company receiving the loan: Bora Pharmaceuticals USA Inc. (2) Relationship with the lending company: A 100% directly owned subsidiary of the company (loan provided by subsidiary Bora Global Ltd.) (3) Loan limit (in thousand NTD): 3,897,602 (4) Loan balance as of the fact date (in thousand NTD): 2,573,770 (5) Purpose of the loan as of the fact date: To fund working capital required for the acquisition of CDMO operating assets in Maryland.

(1) Name of the company receiving the loan: Bora Pharmaceuticals Inc. (2) Relationship with the lending company: A 100% indirectly owned subsidiary of the company (loan provided by subsidiary Bora Pharmaceuticals USA Inc.) (3) Loan limit (in thousand NTD): 26,821,545 (4) Loan balance as of the fact date (in thousand NTD): 789,500 (5) Purpose of the loan as of the fact date: To fund working capital required for Bora Pharmaceuticals Inc. to expand its CDMO business.

(1) Name of the company receiving the loan: Upsher-Smith Laboratories, LLC (2) Relationship with the lending company: A 100% indirectly owned subsidiary of the company (loan provided by subsidiary TWi Pharmaceuticals USA, Inc.) (3) Loan limit (in thousand NTD): 26,821,545 (4) Loan balance as of the fact date (in thousand NTD): 167,374 (5) Purpose of the loan as of the fact date: To fund working capital and repay borrowings.

(1) Name of the company receiving the loan: Upsher-Smith Laboratories, LLC (2) Relationship with the lending company: A 100% indirectly owned subsidiary of the company (loan provided by subsidiary TWi Pharmaceuticals USA, Inc.) (3) Loan limit (in thousand NTD): 2,438,660 (4) Loan balance as of the fact date (in thousand NTD): 1,175,608 (5) Purpose of the loan as of the fact date: To fund working capital and reclassify overdue accounts receivable into other receivables.

(1) Name of the company receiving the loan: Bora Pharmaceuticals Injectables Inc. (2) Relationship with the lending company: A 100% indirectly owned subsidiary of the company (loan provided by subsidiary Bora Pharmaceuticals USA Inc.) (3) Loan limit (in thousand NTD): 26,821,545 (4) Loan balance as of the fact date (in thousand NTD): 236,850 (5) Purpose of the loan as of the fact date: To fund working capital and repay borrowings.

3. Total loan balance as of the fact date (in thousand NTD): 4,943,102

4. Ratio of total loan balance to the net equity in the most recent financial statements of the publicly issued company: 33.93%

5. Source of funds lent to others: The subsidiaries themselves

6. Other matters to be disclosed: None.

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Source: PR Times
Category: News
Organizations: Bora Pharmaceuticals USA Inc. / Bora Pharmaceuticals Inc. / Upsher-Smith Laboratories, LLC

Far Eastern Biotech Announces Substantial Intercompany Loans Under Taiwan's Public Company Lending Guidelines

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