Sinobiopharma Revenue Increases By 39%

Sinobiopharma has reported revenue of $1.29m for three months period which ended August 31, 2009, an increase of 39% from $931,203 for the comparable period previous year. Gross profit increased 57% to $962,923, reflecting a 74% gross margin for the three months period. This compares to $612,428 and a 66% gross margin, reported for the corresponding period for the prior year.

Reportedly, net profit of the company’s wholly owned operating subsidiary, DongYing (Jiangsu) Pharmaceutical, increased to $561,292, representing 43% of sales revenue, for the three months period from $218,031 in the corresponding period for the previous year.

The company said that growth in sales and the improvement in gross margin were both due to continued demand for Cisatracurium Besylate, which contributed $1.24m or 96% of revenue for the quarter, increased from $865,407 for the first quarter for the prior year.

Lequn Lee Huang, president and CEO at Sinobiopharma, said: “Sinobiopharma has reached two important milestones. First, its wholly owned operating subsidiary, Dong Ying (Jiangsu) has recorded more than one half million USD net income in a quarter; and second, the company has posted an overall net profitable result in its consolidated financial 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 those of our competitors, that our continuing efforts to control costs are succeeding, and that our sales and marketing efforts are bearing fruit. We will continue executing on our plan to improve production efficiencies while expanding sales and marketing to ensure that more patients benefit from our products.”