NANTONG CITY, China, Sept. 23 /PRNewswire-Asia-FirstCall/ -- Sinobiopharma, Inc. ("Sinobiopharma" or the "Company") is pleased to report financial highlights from the audited financial results for the fiscal year ended May 31, 2009.
Financial highlights include: -- Sales revenue increased to US$3,850,278 for the 12 months ended May 31, 2009, from US$1,810,318 in the corresponding period ended May 31, 2008, a year-over-year increase of 112.69 percent. -- Gross profit increased to US$2,538,441, representing 66 percent of sales revenue, for the 12 months ended May 31, 2009, from US$580,915, representing 32 percent of revenue, in the corresponding period ended May 31, 2008. -- Net profit of the Company's wholly owned operating subsidiary, Dong Ying (Jiangsu) Pharmaceutical Co., Ltd., increased to US$1,019,507 representing 26% of sales revenue, for the 12 months ended May 31, 2009, from -US$199,306 in the corresponding period ended May 31, 2008, a year-over-year increase of more than 400 percent. However, the Company's overall net loss increased to US$2,140,237 for the 12 months ended May 31, 2009, of which one of the main expenses affecting the results of operations was the stock-based compensation charge of US$2,917,125, reflecting the vesting of stock options granted by the Company and professional fee of public company administration (audit, legal, etc.) of US$270,518. -- Increase in sales volume and the improvement in gross profit percentage are both due to growth in sales of Cisatracurium Besylate, a pre- surgical skeletal muscle relaxant. Sales of this product increased to US$3,595,031 in the 12 months ended May 31, 2009, from US$1,364,165 in the 12 months ended May 31, 2008. At the same time, as volume has increased, cost of manufacturing Cisatracurium Besylate has decreased to 29 percent of its price for the 12 months ended May 31, 2009, from 47 percent of its price for the 12 months ended May 31, 2008.
"The significant increases in sales revenue as well as gross and net profit -- achieved despite sustained economic turmoil and without any funds raised in the last fiscal year -- speak well to the growing success of Sinobiopharma's products in the marketplace and the Company's improved ability to produce and distribute them more cost-effectively," said Dr. Lequn Lee Huang, Sinobiopharma's President and CEO.
Sinobiopharma, Inc. is a fully integrated and highly innovative specialty biopharmaceutical 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.
FORWARD LOOKING STATEMENTS
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.
|SOURCE Sinobiopharma, Inc.|
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