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Genesis Pharmaceuticals Announces Results for The First Quarter of Fiscal Year 2008
Date:11/19/2007

Acid Acetate with the proceeds from our recent private placement."

First Quarter of Fiscal 2008 Results

Total revenue for the first quarter of Fiscal Year 2008 totaled $16.6 million, down 7.7% from $18.0 million in the first quarter of Fiscal Year 2007. This decrease occurred because production was halted for all of August and part of September while maintenance activities took place. Declining revenue was partially offset by greater overall sales in the rest of the quarter.

Gross profit for the first quarter of Fiscal Year 2008 totaled $12 million, a decrease of 7% from $12.9 million for the first quarter of Fiscal Year 2007. The Company's lower gross profit was due to the production stoppage described above. Gross profit margin was 72.4% for the first quarter Fiscal Year 2008, compared to 71.8% for the prior year period, a slight increase of 0.5%. This increase was due to more efficient manufacturing production by the Company. Clarithromycin sustained-release tablets accounted for 65.3% of total revenue during the quarter, with a gross margin approaching 80.0%, and Itopride Hydrochloride granules accounted for 27.3% of total revenue with a gross margin approaching 90%.

Research and development expenses for the first quarter of Fiscal Year 2008 totaled $264,920, a decrease of 92.7% from $3.6 million for the first quarter Fiscal Year 2007. This decrease was due to a difference in the timing of payments by the Company for new product clinical trials. Payments made by the Company for clinical trials are expected to increase in the second quarter of Fiscal Year 2008.

Selling, general and administrative expenses for the first quarter of Fiscal Year 2008 totaled $6.8 million, compared to $3.9 million in the first quarter of Fiscal Year 2007. This increase was primarily due to pre-launch advertisement expenses for Baobaole chewable tablets, the Company's first Chinese plant based drug product. This drug is used to stimulate children's appetit
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SOURCE Genesis Pharmaceuticals Enterprises, Inc.
Copyright©2007 PR Newswire.
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