NANTONG CITY, China, Oct. 21 Sinobiopharma,Inc. (OCT Bulletin Board: SNBP) ("Sinobiopharma" or, the "Company") is pleasedto present the following highlights from the unaudited financial results forthe first quarter ended August 31, 2009.
The highlights feature record revenues and increases in both gross marginand net profit, and a Company milestone of posting its first overall netprofitable quarter since the second quarter 2008, according to Dr. Lequn LeeHuang, Sinobiopharma President and CEO.
"Sinobiopharma has reached two important milestones," said Dr. Huang."First, its wholly owned operating subsidiary, Dong Ying (Jiangsu) hasrecorded more than one half million USD net income in a quarter; and second,the Company has posted an overall net profitable result in its consolidatedfinancial statement for the first time since the second quarter 2008."
"The increases in sales revenue, as well as those in gross and net profit,are clear indicators that more hospitals are choosing our products over thoseof our competitors, that our continuing efforts to control costs aresucceeding, and that our sales and marketing efforts are bearing fruit. Wewill continue executing on our plan to improve production efficiencies whileexpanding sales and marketing to ensure that more patients benefit from ourproducts," said Dr. Huang.
Sinobiopharma, Inc. is a fully integrated and highly innovative specialtybiopharmaceutical company engaged in the research and development, manufactureand marketing of biopharmaceutical products in China, the world's fastestgrowing pharmaceutical market. Known as Dong Ying (Jiangsu) Pharmaceutical Co.,Ltd. in China, the Company's current therapeutic focus is onanesthesia-assisted agents and cardiovascular drugs.
FORWARD LOOKING STATEMENTS
This news release may include "forward-looking statements" regardingSinobiopharma, Inc., and its subsidiaries, business and project plans. Suchforward looking statements are within the meaning of Section 27A of theSecurities Act of 1933, as amended, and section 21E of the United StatesSecurities and Exchange Act of 1934, as amended, and are intended to becovered by the safe harbor created by such sections. Where Sinobiopharma, Inc.expresses or implies an expectation or belief as to future events or results,such expectation or belief is believed to have a reasonable basis. However,forward-looking statements are subject to risks, uncertainties and otherfactors, which could cause actual results to differ materially from futureresults expressed, projected or implied by such forward-looking statements.Sinobiopharma, Inc. does not undertake any obligation to update anyforward-looking statement, except as required under applicable law.-- Revenue increased to US $1,293,764 for the three months ended August 31, 2009 from US $931,203 in the corresponding period ended August 31, 2008, an increase of 39%. -- Gross profit increased 57% to US $962,923, reflecting a 74% gross margin for the three months ended August 31, 2009. This compares to US $612,428, and a 66% gross margin, reported for the corresponding period ended August 31, 2008. -- Net profit of the Company's wholly owned operating subsidiary, Dong Ying (Jiangsu) Pharmaceutical Co., Ltd., increased to US $561,292, representing 43% of sales revenue, for the three months ended August 31, 2009 from US $218,031 in the corresponding period ended August 31, 2008, a year-over-year increase of more than 154%. -- With a net profit overall of US $237,167 for the three months ended August 31, 2009, the quarter marks the first time Sinobiopharma has moved from loss to net profitability. During the quarter, the main expense affecting the net result was a stock-based compensation charge of US $324,125. The charge has been fully amortized in this quarter, reflecting the vesting of stock options granted by the Company. -- Growth in sales and the improvement in gross margin were both due to continued strong demand for of Cisatracurium Besylate, which contributed US $1,240,405, or 96% of revenue for the quarter, up from $865,407 for the first quarter in 2008.
SOURCE Sinobiopharma, Inc.