RESULTS REVISE AND UPDATE DONG YING Q3 RESULTS REPORTED DECEMBER 10, 2008
NANTONG CITY, China, Jan. 29 /PRNewswire-FirstCall/ -- Sinobiopharma, Inc. (OTC Bulletin Board: SNBP) is pleased to report financial highlights from the complete unaudited financial results of its wholly owned operating subsidiary, Dong Ying China, that have been consolidated into Sinobiopharma's financial statements for the six-month period ended November 30, 2008. The complete unaudited financial results for the period were filed with the SEC in Form Q10 on January 14, 2009 and available at www.edgar-online.com.
Financial highlights include:
- Sales revenue increased to $1,902,376 for the six months ended November 30, 2008 from $583,748 in the corresponding period in 2007.
- Gross profit increased to $1,223,180 (64% of sales revenue) from $116,009 (20% of revenue).
- Increase in sales volume and the improvement in gross profit percentage are both due to growth in sales of Cisatracurium Besylate., a skeletal muscle relaxant. Sales of this product increased to $1,756,798 in the six months ended November 30, 2008 from $505,331 in the six months ended November 30, 2007.
- Operating expenses for the six months ended November 30, 2008 were $2,115,788, as compared to $366,833 for the six months ended November 30, 2007. The most significant category of expenses was stock-based compensation of $972,375 in the six months ended November 30, 2008 compared to $nil in the same period in 2007, as the Company granted stock options to various directors, management, employees and consultants upon completing the reverse acquisition and effectively taking the Dongying companies public.
- The second most significant expense category is professional fees, which have increased to $290,109 form $30,036 in the same period of the previous year. The main reason for the increase is the reverse acquisition, which required a substantial amount of legal, accounting and audit work to bring the Chinese companies up to U.S. financial reporting standards and to advise on and document the legal agreements.
- The Company incurred $280,664 in general and administrative expenses in the six months ended November 30, 2008, an increase from $148,861 for the six months ended November 30, 2007. The increase is due to increased manufacturing, marketing and general activity with the push to gain market share for the Cisatracurium Besylate product. Salaries and benefits and travel expenses have increased significantly due to the same activity.
- The Company had a working capital deficiency of $3,908,091 at November 30, 2008. The Company plans to raise capital through sales of shares to provide cash to pay debt of Dong Ying China and fund further drug product development.
Mr. Lequn Huang, Chairman and CEO of Sinobiopharma Pharmaceutical Group, commented: "Sinobiopharma achieved significant year-over-year growth in the six months ending November 30, 2008 in both sales and gross margin. As we move forward in early 2009, we will continue to focus on building our portfolio of innovative and first-to-market drugs through organic growth and acquisitions. We also plan to enhance our investment in sales and marketing activities to help Sinobiopharma achieve sustainable, long-term growth."
Sinobiopharma, Inc. is a fully integrated and highly innovative biotechnology company engaged in the research and development, manufacture and marketing of biopharmaceutical products in China, the world's fastest growing pharmaceutical market. Known as Dong Ying (Jiangsu) Pharmaceutical Co., Ltd. in China, the Company's current therapeutic focus is on anesthesia-assisted agents and cardiovascular drugs.
This news release may include "forward-looking statements" regarding Sinobiopharma, Inc., and its subsidiaries, business and project plans. Such forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Sinobiopharma, Inc. expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Sinobiopharma, Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
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