Kasikorn Securities has maintained a “Buy” rating on PTT Public Company Limited (SET: PTT) with a target price of THB 33.80, following the company’s move to boost its pharmaceutical portfolio through Lotus Pharmaceutical’s acquisition of New Alvogen Group Holdings Inc. (Alvogen US), a US-based specialty pharma firm.
Analysts at Kasikorn Securities described the investment as having a neutral impact, noting that the incremental profit attributable to PTT is expected to be around THB 1.2 billion per year. This represents a modest upside of approximately 1.3% to the brokerage’s earnings forecast. Kasikorn Securities also highlighted that PTT’s balance sheet will likely remain unaffected in any material way, as the company has reduced its stake in Lotus Pharmaceuticals from 38% to 36%, negating the need to consolidate Lotus’s financials. Furthermore, Lotus will self-fund the transaction, minimizing the impact on PTT’s financial position.
The commentary follows PTT’s announcement to the Stock Exchange of Thailand that on September 23, 2025, the board of directors of Lotus Pharmaceutical, a company in which PTT’s wholly-owned subsidiary Innobic (Asia) is the major shareholder, approved the acquisition of Alvogen US in a deal valued at around USD 658 million. The transaction will be funded by approximately 65% in cash and loans from Lotus, with the remainder through the issuance of preferred shares to current Alvogen US shareholders.
PTT stated that this acquisition will provide Lotus with strategic access to the US pharmaceutical market — the world’s largest — and bolster its research, manufacturing, and commercialization capabilities. According to PTT, the move aligns with its long-term Life Sciences strategy and supports Lotus’s self-funded growth path.
Kasikorn Securities’ reaffirmation of its positive stance reflects confidence in the group’s strategy while tempering expectations for immediate financial impact.
