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China Biologic Products Reports Higher Results for the First Quarter 2012
Date:5/8/2012

ng the foreign exchange translation effect, the average price of human tetanus immunoglobulin products in RMB increased 4.6% in the first quarter from the first quarter 2011. The price increase of tetanus immunoglobulin products was primarily due to the supply shortage in the first quarter 2012 as the market started to experience the reduced supply of tetanus immunoglobulin products due to the plasma stations that were closed by the Guizhou provincial government in August 2011. Sales volume of human tetanus immunoglobulin products increased 10.5% mainly due to more approved finished tetanus products being available to meet the demand in the market.Cost of sales

Cost of sales increased by $6.4 million or 68.8% to $15.7 million in the first quarter 2012 from $9.3 million in the first quarter 2011. Cost of sales as a percent of total sales was 33.3% in the first quarter 2012 compared with 27.0% in the first quarter 2011. The increase in cost of sales, as well as the increase in cost of sales as a percentage of sales, was mainly due to the increase in sales and the increase in the cost of plasma paid to donors, which was in line with the industry-wide practice. In an effort to increase plasma collection volume and expand our donor base, we increased the nutrition fees paid to donors. Gross profit and gross profit margin

Gross profit increased by $6.4 million or 25.2% to $31.5 million in the first quarter 2012 from $25.2 million in the first quarter 2011. The gross profit margin (gross profit as a percent of total sales) decreased 6.3% to 66.7% in the first quarter 2012 from 73.0% in the first quarter 2011 mainly due to the higher raw material costs that outpaced the price increases of our products.Total operating expenses

Total operating expenses increased by $2.1 million or 19.4% to $12.7 million in the first quarter 2012 from $10.6 million in the first quarter 2011, primarily due to a 97.0% increase in our selling expenses, which were partly offse
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SOURCE China Biologic Products, Inc.
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