Sinobiopharma Inc. (SNBP), which provides enhanced generic drugs like Teva Pharmaceuticals, Inc. (TEVA) or Taro Pharmaceuticals, Inc. (TAROF), saw its revenues jump 120% as it swung to a profit for its latest quarter.
Sinobiopharma Inc. (SNBP), a manufacturer and marketer of biopharmaceutical products in China, announced earnings of $1,073,550 for the three months ended November 30, 2009, compared to a net loss of $1,045,239 during the same period a year ago.
Revenues increased 120% to $2,137,471 and gross margins that improved 182% to 80% of sales, both of which were attributed to continuing growth in the sales of Cisatracurium Besylate. The drug now represents approximately 96% of the company’s total sales.
Operating expenses decreased 63% to $596,154 due to a decrease in stock-based compensation and a reduction in general and administrative expenses. However, research and development expenses rose to $189,396 from $33,015 a year ago.
As a result, net cash from operating activities rose $804,518 to $1,124,109 compared to $319,591 for the six months ended November 30, 2008 versus November 30, 2009.
Notably, Sinobiopharma is also actively enhancing internal controls in order to improve reporting standards. In October 2009, the company engaged Xinjie Mu, a certified public accountant with extensive experience in internal control and U.S. GAAP reporting compliance, as Chief Financial Officer. These efforts should help increase investor confidence.
Sinobiopharma, through its operating subsidiary Dong Ying China, is involved in the Chinese biopharmaceutical industry. The company has developed new methods for synthesis of active pharmaceutical ingredient (“API”) and innovative drug delivery (new formulation) that dramatically reduces the time and cost of drug development.
The company’s current therapeutic focus is on anesthesia-assisted agents and cardiovascular drugs. And it’s R&D focus is new, innovative methods of synthesizing compounds more rapidly at lower cost, and/or improved drug formulation with enhanced usability.
In November 2009, the company received final approval from all authorities for the production and sales of our new drug Perindopril with brand name of Yitai. Yitai is a cardiovascular drug used for the patients with heart disease and high blood pressure, and it is covered by Chinese health insurance.