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Aoxing Pharmaceutical Company, Inc. Announces Financial Results For First Quarter Of 2013 Fiscal Year
Date:11/14/2012

JERSEY CITY, N.J., Nov. 14, 2012 /PRNewswire/ -- Aoxing Pharmaceutical Company, Inc.  (NYSE MKT: AXN) ("Aoxing Pharma"), a specialty pharmaceutical company focusing on research, development, manufacturing, and distribution of narcotic, pain-management, and addiction treatment pharmaceuticals, today announced its financial and operational results for the quarter ended September 30, 2012.  Complete financial results can be found in the Quarterly Report on Form 10-Q filed by Aoxing Pharma on November 14, 2012.

Financial Results:

Sales for the first quarter of fiscal year 2013 were $2,604,764, representing a 70% increase over the sales realized during the first quarter of the 2012 fiscal year. The increase was primarily attributable to the 78% increase in sales of the Company's main product, Zhongtongan, which is now being marketed for gynecological and orthopaedic applications in addition to its core dental market.  Sales of Zhongtongan accounted for 92% of sales during the quarter ended September 30, 2012. 

Gross margin for the first quarter of fiscal 2013 was 61.1%, an increase from the gross margin of 56.7% achieved in the first quarter of fiscal 2012.  The increase was primarily the result of a strategic decision to reduce emphasis on sale of lower margin products.  As a result of increased sales and improved margin, Aoxing Pharma's gross profit for the first quarter of fiscal 2013 increased by 83% to $1,590,519.

General and administrative expenses in the three months ended September 30, 2012 were $610,871, a reduction of 18% from the first quarter of the prior fiscal year.  The reduction in expenses was primarily attributable to a 26% reduction in stock compensation expenses, a reduction in staffing, and overall efforts to contain costs.  The reduction in general and administrative expenses was more than offset, however, by a 68% increase in selling expenses, as the Company seeks to exp
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SOURCE Aoxing Pharmaceutical Company, Inc.
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