China Pharma full year revenues climb 21% to US$61.7 million
China Pharma Holdings (AMEX:CPHI), which develops, manufactures, and markets specialty pharmaceutical products in China announced financial results for the fiscal year ended December 31, 2009.
Fiscal highlights included a 21% jump in full year revenues to US$61.7 million, a 13% increase in net income to US$20.2 million and 63% uplift in cash flow from operations to US$10.7 million. Earnings per share rose to 48 cents from 44 cents in 2008, while gross margins fell from 50% in 2008 to 42% in 2009, which was blamed on a high proportion of sales coming from lower margin products.
China Pharma attributed the strong sales growth to a combination of higher sales from its existing products combined with new offerings. Sales of Antiviral & Respiratory drugs improved by 31%, while digestive product sales more than doubled to US$4.8 million. The company also reported strong sales growth for its tumour drug, Granisetron.
As of December 31, 2009, the Company had cash and cash equivalents of $3.6 million, down slightly from the previous year.
Looking ahead to 2010, the fast growing pharmaceutical company said it expected revenues to grow by 20 to 25%.
China Pharma's President and CEO, Ms. Zhilin Li, stated, "We are very pleased with our 2009 results, which have continued to yield a net income margin above 30%. After adding two new drugs in 2009, our core portfolio now has 20 products, and we have a number of new products in various stages of registration, including Rosuvastatin (generic for Crestor) and an antibiotic, that are in clinical trials. Going forward, we will continue to invest to strengthen our product portfolio. The Healthcare Reform in China is now moving ahead steadily but forcefully, with important implications for the pharmaceutical industry. We believe the changes will be favorable for highly profitable companies like ours with innovative drugs. We also believe the changes may cause attractive acquisition opportunities to appear. To that end, we are monitoring the market for strategic opportunities to take advantage of the current fragmented nature of the pharmaceutical industry landscape in China."
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