Tianyin Pharmaceutical Co announced it expects to report revenues of $42 million and net income of $7.5 million in its 2009 fiscal year. Both numbers reflect an increase of 25% over year earlier results.
Tianyin also issued guidance for further growth of 40% in fiscal 2010. The company predicted revenues will hit $59 million and net income will total $10.5 million next year. Tianyin focuses on modernized forms of traditional Chinese medications. As a recap, Tianyin said it received SFDA approval for 10 new products during fiscal 2009, and revenues for its flagship product, Ginkgo Mihuan, increased significantly. The company attributed the rise in Ginkgo Mihuan revenues to successful tenders and an increase in the number of distributors for the product. Ginkgo Mihuan Oral Solution, which contributes about 31% of the company‚Äôs revenues, is a traditional Chinese medicine that is prescribed to treat sequelas of cerebral thrombosis, coronary heart diseases and myocardial infarction.
Tianyin said future growth will result from a combination of initiatives it has already begun, including:
* GMP certification for its new production facility that will increase its capacity for solid dosage by 300% and enable future growth for 20 of its products;
* the new facility will initiate a wholesale component to its business that will distribute higher margin products for other pharmaceutical manufacturers through the company‚Äôs existing sales force and distribution channels;
* the Healthcare Reform Act is expected to increase the demand for approximately 20 of the 22 drugs Tianyin currently has listed in the reimbursement catalog;
* the company will expand its targeted marketing strategy, including multi-media and television advertising, to increase brand awareness and promote higher gross-profit-margin products, such as Ginkgo Mihuan Oral Liquid and Xuelian Cangcao;
* Tianyin will expand collaboration with universities and research organizations to complement internal drug development efforts; and
* the company will continue to seek complementary acquisitions.