SANTA MONICA, Calif., Aug. 16 AidaPharmaceuticals, Inc. (OTC Bulletin Board: AIDA), one of mainland China'sleading pharmaceutical companies, today announced the release of its secondquarter 2007 financial results. Full details of the Company's 10Q quarterlyfinancial results are available in the Company's Form 10-QSB athttp://www.sec.gov.
Jin Biao, Chairman of Aida Pharmaceuticals, said, "Etimicin sulfateconsumption throughout China continues to be strong and we expect it willdrive the Company's growth in the near-term. Our pipeline of new drugs forcancer, hepatitis and stroke continue to be aggressively developed. We expectthat the commercialization of our new drugs will decrease the heavy relianceon Etimicin and lessen the fluctuation of our performance. We are alsocontinuing to focus on selective acquisitions for vertical and horizontalmarket expansion. Into the future, Aida will continue to target the alignmentof our valuation with our strong growth profile."
Aida's flagship product, Etimicin Sulfate, is the first and onlyantibiotic developed in China and is patent-protected through 2013. Thismarket-driven innovation has led to supremacy in the Etimicin Sulfate market,where Aida continues to dominate, with 80% market share in mainland China,equivalent to over 6 million 100mg units sold.
Revenues for the three months ended June 30, 2007 were $6,419,476, adecrease of $865,412 from $7,284,888 for the three months ended June 30, 2006.The decrease is due to temporary modifications needed to comply with recentlyestablished China government regulations. The Chinese pharmaceuticalindustry, as a whole, suffers from a relatively rigorous industrialenvironment since last year, mainly due to the strict regulation policies andpersonnel change from the SFDA, equivalent to the US FDA. This negativelyaffected the sales of the company in the short term.
For example, the medical tender system for hospitals in some regions, inthe second quarter of 2007, differed from that in 2006, which resulted in somesales decline and sales return in those regions. Aida strongly believes thatit will overcome the short-term disadvantage after renewal of sales agentagreements and rapid adaptation to the new government system. In the longrun, we anticipate Aida will benefit from the restructuring of the industryand government regulation and will continue to lead the market as a well-disciplined and innovative company.
Aida's ongoing successful legal action against etimicin sulfatecounterfeiters has begun to show results to the bottom line, as the Companybelieves those manufacturers will be forced out of competition in the shortterm. The Company believes that operations and growth will continue torecover in the coming quarters.
For the three months ended June 30, 2007, the sales ofAida's Fangyuandivision increased by $979,808 or 114.36% as compared to the same period of2006. The increase in sales is mainly attributable to an increase in sales ofEtimicin material product. Sales of Aida's Hainan Aike division decreased by$715,378 or 19.37% as compared to the same period of 2006. The decrease insales can mainly be accounted for the decrease in sales of the Etimicintransfusion product, "Aiyi".
The cost of goods sold for the second quarter ended June 30, 2007 was$3,605,286 an increase of $25,586 from $3,579,700 for the same period of 2006.Compared to the three months ended June 30, 2006, the percentage gross profitmargin for Aida decreased from 50.86% to 43.84% for the first quarter endedJune 30, 2007. In the second quarter of 2007, Aida's net income decreased by$415,203 to a net income (loss) of $(16,315) from $398,888 in the same periodin 2006.
About Aida Pharmaceuticals
Aida Pharmaceuticals is a product-focused pharmaceuticals company engagedin the formulation, clinical testing, registration, manufacture, sales andmar