China Medicine Corp reports strong third quarter 2009 results
China Medicine Corp (OTCBB: CHME) reported a rise in total revenues in the third quarter of 2009 to US$19.15 million from US10.5 million a year earlier, while net profit in the period rose to US$3.13 million from US$1.9 million.
This revenue increase in the third quarter was mainly
attributable to the 393 percent increase in industry-wide sales on
regional level driven by growth in second and third tier cities
resulting from the implementation of the health care reform in rural
areas.
For the first nine months of 2009, total revenues increased to
US$44.3 million from US$29.2 million in first nine months of 2008. Net
income for the first nine months was US$3.8 million, compared to US$5.6
million, with the 2009 figure taking into account expenses related to
$2.1 million fair value of warrants.
The company develops and distributes prescription and
over-the-counter pharmaceuticals, traditional Chinese medicines,
nutritional and dietary supplements, and medical devices and medical
formulations.
Chairman and CEO Senshan Yang commented: “As the government
implements its plan to support rural healthcare and establish a
universal healthcare system, we expect to be positively impacted as we
distribute pharmaceutical products through our extensive distribution
network that addresses this underserved market. In addition, once the
recent acquisition of LifeTech (Pharmaceuticals Co) is consummated, we
should be positioned as a stronger player in the pharmaceutical
industry.”
As September 30 2009, China Medicine had US$2.2 million in cash
and cash equivalents. Working capital was approximately US$32.1
million. Accounts receivable stood at US$14.9 million as of September
30 2009, down from US$19.2 million as of December 31 2008, reflecting
increased customer collections.
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