Navigation Links
Dragon Sells EPO Business; Focus on Antibiotic Core Business
Date:11/14/2007

VANCOUVER, Nov. 14 /PRNewswire-FirstCall/ - Dragon Pharmaceutical Inc. (TSX: DDD; OTCBB: DRUG; BBSE: DRP) today announced that it has entered an agreement with an unaffiliated party for the sale of its EPO business which accounted for less than 3% of Dragon's consolidated revenue for the first nine months of 2007. The decision was made based on the studies of the EPO market which showed limited growth potential, if not downward trend, during the next three years. The Company considers this decision an important part of Dragon's ongoing strategy to fully focus on its core business of antibiotic product lines that have shown tremendous growth over the past years.

Over the past three years, Dragon's revenues from antibiotic products increased from $31.23 million for the year of 2005 to approximately $60 million for the first nine months of 2007, reflecting the strong market demand as well as enhanced competitiveness of the Company in antibiotic products. Mainly due to the strong growth of antibiotic products, EPO business only accounted for less than 3% of total revenues for the first nine months of 2007, as compared to 11% of the total revenues for the year of 2005. Since EPO business is no longer a significant and growing component of our product portfolio, the Company decided that it is in the best interests of its shareholders to sell its EPO business and concentrate all its resources on the antibiotic product lines which offered the greatest growth potential.

According to the agreement, the EPO business will be sold for $2.08 million. The transaction is expected to be completed during the fourth quarter of 2007. Because of this disposal, the Company recorded a non-cash impairment charge of $2.64 million during the current quarter related to the write down of the intangible assets and goodwill associated with the Biotech division which was created as a result of the reverse take-over of Dragon Pharmaceutical Inc. by Oriental Wave Holdings Limited on January 12, 2005. During the three and nine months ended September 30, 2007, the Company recognized $0.97 million and $2.12 million after-tax income from continuing operations.

"Our EPO business performed well during the past years. However, an in-depth review of the EPO business has concluded that it is very demanding in market resources but with very limited growth potential," said Mr. Yanlin Han, Chairman and CEO of the Company. "We are focusing our efforts in the antibiotic market which we intend to lead while showing a sustainable and growing profit. In addition, the Company is also actively exploring additional business opportunities in broadening its core antibiotic product offerings and increasing production capacities. We are confident that the benefits of all these initiatives will be reflected in the Company's performance in the future."

This press release contains forward looking statements such as the Company's Chemical and formulation business to be competitive and successful in the marketplace. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward looking statements. 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 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.
All rights reserved

Related medicine news :

1. Dragon Achieved Solid Increase in Sales and Profits from Continuing Operations for Q3
2. Celebrity Seating Only! Levitz Chair Signed by 39 Daytime Stars Sells for $1200 on Charitybuzz.com
3. NPS Sells Assets Related to mGluR Collaboration to AstraZeneca for $30 Million to Support Late-Stage Product Development
4. National Pharmaceutical Council Announces New Strategic Focus, Search for New Leadership
5. Academy of General Dentistry Launches Campaign to Focus on Tooth Erosion
6. Education Key Focus of Michigan Policy Summit
7. Heart Failure Society of America 11th Annual Scientific Meeting to Focus on Heart Failure Guidelines, Innovation and New Research
8. Major Pharma Clinical Case Studies From Amgen, AstraZeneca, GSK, Intermune, Cephalon Inc, Sunesis Pharmaceuticals and Dartmouth Medical School During Fall Clinical Focused Programs
9. This October, the American Physical Therapy Associations National Physical Therapy Month to Focus on Nations Obesity Epidemic
10. DuPont Focused on Meeting Global Demands for Greater Safety & Protection
11. New Seminar Series from Activator Methods Teaches Doctors a Unique Approach to Improving Nations Chiropractic Care: Focus on the Patients
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/27/2016)... ... June 27, 2016 , ... A revolution ... the emergency ambulance transport experience for the millions of people who require these ... disrupted the taxi industry through the use of technology. Now, SmartEMS has put ...
(Date:6/26/2016)... ... 2016 , ... PawPaws brand pet supplements owned by Whole Health ... the health of felines. The formula is all-natural and is made from Chinese herbs ... Cat Kidney Support Supplement Soft Chews are Astragalus Root Extract and Rehmannia ...
(Date:6/25/2016)... ... 2016 , ... The temporary closing of Bruton Memorial Library on June 21 due to a ... new, often overlooked aspect of head lice: the parasite’s ability to live away from a ... occurrence, but a necessary one in the event that lice have simply gotten out of ...
(Date:6/25/2016)... ... ... On Friday, June 10, Van Mitchell, Secretary of the Maryland Department of ... recognition of their exemplary accomplishments in worksite health promotion. , The Wellness at Work ... Symposium at the BWI Marriott in Linthicum Heights. iHire was one of 42 businesses ...
(Date:6/24/2016)... ... 2016 , ... Marcy was in a crisis. Her son James, eight, was out of control. ... and physically. , “When something upset him, he couldn’t control his emotions,” remembers Marcy. ... rocks at my other children and say he was going to kill them. If ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... , June 24, 2016 Dehaier Medical Systems ... "Company"), which develops, markets and sells medical devices and ... , signed a strategic cooperation agreement with Hongyuan Supply ... Supply Chain") on June 20, 2016, to develop Dehaier,s ... strategic cooperation agreement, Dehaier will leverage Hongyuan Supply Chain,s ...
(Date:6/24/2016)... Mass. , June 24, 2016   Pulmatrix, ... pharmaceutical company developing innovative inhaled drugs, announced today that ... Russell Investments reconstituted its comprehensive set of ... "This is an important milestone for Pulmatrix," ... will increase shareholder awareness of our progress in developing ...
(Date:6/23/2016)... Research and Markets has announced the addition of ... report to their offering. ... kidney failure, it replaces the function of kidneys by removing ... thus the treatment helps to keep the patient body,s electrolytes ... Increasing number of ESRD patients & substantial healthcare expenditure ...
Breaking Medicine Technology: