China Biologic Products Announces Strong First Quarter 20...(a loss in the change in fair value of de...)

Provision for income taxes increased 174.2% to $2.0 million for the first quarter of 2009, from $0.7 million for the same period last year. The effective tax rate for the quarter was 21.9% as compared to 20.5% in the same period of 2008.

Net income attributable to controlling interest for the first quarter of 2009 was $4.3 million, up 87.8% from $2.3 million in first quarter of 2008. Fully diluted earnings per share were $0.20 for the first quarter of 2009, compared to $0.10 in first quarter of 2008.

Financial Condition

As of March 31, 2009, the Company had $34.0 million in cash, approximately $2.2 million in working capital and a current ratio of 1.0. Shareholder's equity at the end of the first quarter of 2009 was $39.9 million, compared to $37.2 million at the end of 2008. The Company generated $7.1 million in net cash from operating activities for the first quarter of 2009.

Recent Developments

On April 17, China Biologic announced that it has completed the third installment payment towards the acquisition of a 90% equity interest in Chongqing Dalin Biologic Technologies Co., Ltd. ('Dalin') for a total consideration of RMB 194,400,000 (approximately $28.5 million), in accordance with the terms of an equity transfer agreement with the Dalin shareholders, and is now entitled to all the rights and privileges of a 90% shareholder in Dalin and in Dalin's 54% majority-owned operating subsidiary, Qianfeng Biological Products Co., Ltd. ('Qianfeng'), one of the largest plasma-based biopharmaceutical companies in China, located in Guiyang, Guizhou Province.

On April 27, China Biologic received an order from one of the largest authorized biopharmaceutical distributors in India, to ship Company products valu
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