by: ChinaBio Today November 15
Mindray Medical posted a modest 3.1% increase in revenues during its Q3. The company said revenues reached $151 million during the three months, while non-GAAP net income increased 11.0% to $37.4 million. In addition, Mindray received a $14 million payment when its partnership with Beckman Coulter ended early (Beckman Coulter acquired Olympus Diagnostic Division).
The company said domestic sales were below forecasts because the government tender process was operating slowly. Mindray anticipates very strong Q4 business in China as the country begins to implement its healthcare reform, which in part will consist of constructing and upgrading hospitals in rural areas and cities away from the more developed Eastern corridor. Mindray expects this will be good for its medical equipment business. The company also said US sales were also hit by the uncertainties of pending healthcare reform legislation in the US Congress.
Kun Run Biotechnology, Inc., a biopharma focused on peptide-based drugs, said Q3 revenues rose 65% to $4 million and net income jumped 137% to $2 million, which, incidentally, represents a net income margin of 50%. EPS works out to 8 cents. Almost half of the companyâ€™s revenues came from sales of its TP-5 (thymopoietin pentapeptide) products, which modulate the immune system. TP-5 drugs were up 65% from the year-earlier quarter.
Tianyin Pharmaceutical Co., Inc. a company with both TCM and Western drugs in its portfolio, said its fiscal Q1 revenues climbed 40% to $13.4 million. The companyâ€™s top three products, Ginkgo Mihuan Oral Liquid, Arpu Shuangxin Oral Liquid, and Azithromycin Dispersible Tablets, produced 53% of total revenues. Net income was $2.2 million, up 22%. Tianyin recently increased its guidance for fiscal 2010 (ends June 30, 2010), calling for revenues of $64 million and net income of at least $11 million. Both numbers represent increases of more than 40% over 2009. The company also announced a new JV with Sichuan Mingxin Pharmaceutical Co. that will produce macrolide antibiotics. Tianyin owns 77% of the JV.
Biostar Pharmaceuticals, Inc. more than doubled its results from the year-earlier quarter. Revenues shot up 106% to $15.6 million and net income soared 459% to $3.1 million. The vast majority of Biostarâ€™s sales come from Xin Aoxing Oleanolic Acid Capsule, an OTC treatment for hepatitis B that accounted for 77% of the quarterâ€™s revenues. Biostar said the increases were due mainly to adding wholesalers in three new provinces.
China Pharma Holdings, Inc. (CPHI), reported Q3 revenues moved 23% higher to $15.5 million. Net income, however was almost flat at $4.4 million, though a more optimistic estimate for bad debt collection added $2.8 million into the final profit. During Q3, China Pharma received SFDA approval for its proton pump inhibitor, generic Omeprazole Sodium for Injection. The company repeated its call for 20% revenue growth in 2009.