Navigation Links
Dragon Pharmaceutical Reports Growth in Sales and Profits during Second Quarter of 2007
Date:8/19/2007

VANCOUVER, Aug. 14 /PRNewswire-FirstCall/ - Dragon Pharmaceutical Inc. (TSX: DDD; OTCBB: DRUG; BBSE: DRP) today announced the financial results for the second quarter ended June 30, 2007.

Highlights of the Second Quarter, 2007

- Sales increased 48% to $20.55 million from $13.89 million for the

same period of 2006, and increased 19% as compared to the first

quarter 2007;

- Gross profit and gross margin increased to $3.98 million and 19.36%

from $2.39 million and 17.24% for the same period of 2006;

- Operating income increased 5.6 times to $1.17 million from

$0.18 million in the same period of 2006;

- Net income was $0.45 million, compared to a net loss of $0.32 million

for the same period of 2006. Net income for the second quarter of

2007 was net of a non-cash stock based compensation of $1.02 million.

Strong Sales Growth in the Low Season

Dragon experienced significant revenue growth in the second quarter of 2007 which was normally regarded as the low season during the year. Net sales increased 48% to $20.55 million from $13.89 million for the same period of 2006 and increased 19% sequentially as compared to the first quarter of 2007. The Company experienced revenue growth for all three divisions with 37%, 134% and 44% year-over-year growth rate for the Chemical, Pharma and Biotech divisions respectively.

The revenue growth was mostly driven by the increase in both the sale volume and the price of 7ACA product. As the prices for Penicillin intermediates tripled during the past 12 months, more customers have turned to other alternatives such as cephalosporin drugs, which have led to the increase in both the sale volume and price for 7ACA product. During the quarter, 146 tons of 7ACA were sold, which were 107% of the 137 tons of production output.

The Company has also increased its export sales of Clavulanic Acid by 26% compared with the same period of last year to $2.38 million. The Company obtained three new customers in China and three in India during the quarter, which is expected to provide a good foundation for the continuous growth during the third quarter.

The revenue growth of the Pharma Division was also significant. Total sales reached $3.67 million, representing an increase of 96% sequentially from the first quarter and 134% from the same period of 2006.

Significant increase in Gross Profit

During this quarter, the Company increased its production level and achieved a utility rate of 91% for 7ACA and 90% for Clavulanic Acid, and the unit cost for 7ACA dropped by 12% as compared to prior year period. The gross profit and gross margin increased to $3.98 million and 19.36% as compared to $2.39 million and 17.24% for the same period of 2006.

"We are glad that the Company delivered very strong growth in this low summer season," said Mr. Yanlin Han, Chairman and CEO of the Company, "We believe the same growth drivers from the market and customers will be stronger for the rest of this year. With strengthened competitive advantages, management believes that we can achieve continuous growth in business and profitability."

The Company is also pleased to announce the results of the Annual Shareholders Meeting which was held on August 13, 2007 in Datong, China.

The shareholders have re-elected the following eight members as the Board of Directors of the Company: Mr. Yanlin Han, Dr. Alexander Wick, Mr. Zhanguo Weng, Dr. Yiu Kwong Sun, Ms. Xuemei Liu, Mr. Peter Mak, Dr. Heinz Frey, and Mr. Jin Li.

This press release contains forward looking statements, including but not limited to, that the Company will be able to improve its product quality and efficiency, that it will continue to experience growth in sales of Clavulanic Acid, and that it will continue to achieve continuous growth in business and profitability in the near future. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward looking statement. Readers should not place undue reliance on forward looking statements, which only reflect the view of management as of the date hereof. The Company does not undertake the obligation to publicly revise these forward looking statements to reflect subsequent events or circumstances. Readers should carefully review the risk factors and other factors described in its periodic reports filed with the Securities and Exchange Commission.

CONTACT: Dragon Pharmaceutical Inc., Maggie Deng, Telephone: (604) 669-8817 or North America Toll Free: 1-877-388-3784, Email: irdragon@dragonpharma.com, Website: http://www.dragonpharma.com


'/>"/>
SOURCE Dragon Pharmaceutical Inc.

Copyright©2007 PR Newswire.

Related biology technology :

1. Chinese pharma-biotech dragon rears its head
2. Analyzing Trace-Level Impurities of a Pharmaceutical Intermediate Using an LCQ Deca Ion Trap Mass Spectrometer and the Mass Frontier Software Package
3. Practical Applications of HyperDSC in a Pharmaceutical Laboratory
4. World Class Life Science and Pharmaceutical Companies Leverage DoveBid s Global Reach for Asset Management and Disposition
5. Deltanoid Pharmaceuticals begins phase II osteoporosis study
6. Doing the pharmaceutical tango
7. Want to squeeze U.S. pharmaceutical companies? Be careful what you ask for
8. The Coming of Biotech Generic Pharmaceuticals
9. Knowledge Management: The Key to Success for Life Sciences and Pharmaceutical Companies
10. TomoTherapy reports 86% revenue jump, $131M net loss in Q1
11. Sonic Foundry reports GAAP loss as Q2 revenues rise
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/3/2016)... ... May 03, 2016 , ... In a list published by the Boston ... 76 fastest-growing private companies; a small percentage of the state's 615,000+ small businesses. The ... percent change in revenue from 2012 to 2015. , As this award ...
(Date:5/3/2016)... ... May 03, 2016 , ... ... , the sensor and data driven conferences, will take place on June 7-8, 2016, at the ... UnitedHealth's Vidya Raman-Tangella on incorporating technology -- including AR/VR, machine learning, apps, robotics and ...
(Date:5/3/2016)... ... May 03, 2016 , ... Nashville Fertility ... laboratories. A contingency of reproductive endocrinologists, including Dr. George Hill at ... and to help them build families. , Ovation Fertility is a nationwide network ...
(Date:5/2/2016)... ... May 02, 2016 , ... F.E.E.D. Co., the Feline Environmental ... revolutionary, veterinarian-designed product for indoor cats. The NoBowl Feeding System replaces the bowl ... the way nature intended. NoBowls make cats happy and healthy. , Since being ...
Breaking Biology Technology:
(Date:3/9/2016)... , March 9, 2016 This BCC ... future states of the RNA Sequencing (RNA Seq) market ... such as instruments, tools and reagents, data analysis, and ... various segments of the RNA-Sequencing market such as RNA-Sequencing ... Identify the main factors affecting each segment and forecast ...
(Date:3/8/2016)... 8, 2016   Valencell , the leading ... it has secured $11M in Series D financing. ... new venture fund being launched by UAE-based financial ... existing investors TDF Ventures and WSJ Joshua Fund. ... its triple-digit growth and accelerate its pioneering innovation ...
(Date:3/3/2016)... SOTO, Kansas , March 3, 2016 ... Oncimmune,s Early CDT®-Lung, a blood test to aid ... cancer Early CDT®-Lung test to its clients ... Early CDT®-Lung test to its clients which include ... a leader in early cancer detection, today announced a ...
Breaking Biology News(10 mins):