CHENGDU, China, June 18/ PRNewswire-Asia-FirstCall/ -- -- Management expects to report revenues of approximately $42 million and net income of approximately $7.5 million for the Fiscal Year which ends June 30, 2009. Fourth quarter revenue and net income of approximately $12.4 million and $1.8 million, respectively. -- Fiscal 2010 Guidance of $59 million in revenue and $10.5 million in net income, representing approximately 40% and 42% growth over estimated fiscal 2009.
Tianyin Pharmaceutical, Co., Inc., (NYSE AMEX: TPI), a manufacturer and supplier of modernized traditional Chinese medicine ("TCM") based in Chengdu, China, today announced its unaudited, preliminary financial results for the fiscal year ended June 30, 2009, and fiscal 2010 financial guidance. The Company plans to announce the final results and to hold a conference call for 2009 in September.
Fiscal Year 2009 Financial Highlights
Based on preliminary financial data, Tianyin expects to report fiscal 2009 (year ending June 30) revenues of $42 million and net income of at least $7.5 million, representing 25% and 26% year over year growth respectively. Ginko Mihuan is expected to represent approximately 23% of total revenues. This data is subject to normal audit adjustments and therefore may be changed when reported in Tianyin's Annual Report on Form 10-K for the fiscal year ended June 30, 2009.
"We are very pleased with these anticipated results, which have been supported by targeted sales promotion of new and existing products, including Ginko Mihuan, and supported by the further expansion of our sales team and distribution channels." Dr. Jiang, Chairman and CEO of Tianyin commented. "During the 2009 fiscal year, our advertising expense increased 15% to $1.8 million, generating strong brand awareness and creating further demand for our flagship and other proprietary products. In addition, we instituted a cash dividend which enables our shareholders to participate in our profitability each quarter and is something we hope to increase in the future as the Company grows."
"During fiscal 2009, we received approval from the Chinese State Food and Drug Administration (SFDA) for ten new products. These introductions are critical to our growth strategy and our enhanced product portfolio positions us for accelerating revenues during fiscal 2010. We significantly grew the sales of our flagship Gingko Mihuan through successful tenders and greatly expanded the number of distributors actively marketing this product. We also completed the build-out of our new production facility and are currently initiating GMP certification process. The recent passage of the Healthcare Reform Act was a significant milestone and will culminate into approximately $126 Billion being spent by the government during the next 3 years to bring universal healthcare to all Chinese citizens. As a further component, the central government openly stated its support for Traditional Chinese Medicine (TCM), which will receive additional incentives and funding; this is a policy that we believe will have significant positive implications for our industry," Dr. Jiang stated.
Fiscal Year 2010 Financial Guidance
For fiscal year 2010 which ends June 30, 2010, Tianyin forecasts that revenues will exceed $59 million with net income at least $10.5 million, representing approximately 40% and 42% growth compared to fiscal 2009 forecasts. Management anticipates that approximately $7 million, or 12% of total revenues will result from products which were launched during fiscal 2009, while it is anticipated that sales of the Company's flagship product, Ginko Mihuan, will grow by approximately 80% to $20 million for the year. Net income forecasted does not include non-cash expenses associated with stock compensation plans or future interest expense. This guidance does not include any contribution from potential future acquisitions and management will continue to evaluate its business outlook as necessary and communicate any changes on a quarterly basis or when appropriate. At the time of this release, the Company does not have any formal agreements nor is it involved in any definitive discussions regarding potential acquisitions.
Growth will be supported by a number of initiatives, including: 1) Receiving GMP certification for Tianyin's new production facility will increase its capacity for solid dosage by 300% and enable future growth for 20 of its products; 2) this new facility will enable the company to initiate a wholesale component to its business focused exclusively on distributing higher margin, specialty products for other pharmaceutical manufactures through the existing sales force and distribution channels; 3) the new Healthcare Reform Act is expected to increase the demand for approximately 20 of the total 22 drugs Tianyin currently has listed in the reimbursement catalog; 4) expanding its targeted marketing strategy, including multi-media and television advertising, to further brand and promote higher gross-profit-margin products, such as Ginkgo Mihuan Oral Liquid and Xuelian Cangcao; 5) expand collaboration with universities and research organizations to complement Tianyin's internal drug development efforts and continue introducing new products to the market; and, 6) continue looking for complementary acquisitions primarily focused on existing product lines which would increase the depth and breadth of the existing portfolio.
About Tianyin Pharmaceuticals
Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 40 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. Tianyin achieved revenue of approximately $33.5 million and net income of approximately $6 million in FY2008 ending June 30, 2008. For more information about Tianyin, please visit http://www.tianyinpharma.com .
Safe Harbor Statement
The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.
For more information, please contact: For the Company: Allen Tang, Ph.D., MBA, Assistant to the CEO China Tel: +86-158-2122-5642 Email: Allen.email@example.com Investors: HC International, Inc. Matt Hayden Tel: +1-561-245-5155 Email: Matt.firstname.lastname@example.org
|SOURCE Tianyin Pharmaceutical, Co., Inc.|
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