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China Pharma Holdings, Inc. Reports Third Quarter 2010 Financial Results
Date:11/11/2010

ucts category rose 100% year-over-year to $4.5 million, primarily due to higher sales of Granistron and Vitamin B6, the latter of which is one of two China Pharma products on the National EDL (Essential Drug List).  Sales from the Company's Central Nervous System (CNS), Cerebral and Cardio Vascular products experienced modest growth of 5% to $5.9 million from $5.6 million in the comparable 2009 period due to strong performances from Ozagrel and Gastrodin Injection. Sales from the Company's Anti-Viro/Infection and Respiratory products decreased by 2% to $6.0 million from $6.1 million in the same quarter last year, but this group continues to be the largest contributor to overall Company revenue.

Gross profit for the three months ended September 30, 2010 increased by 16.5% to $7.6 million from $6.5 million in the comparable period last year. Gross margin for the third quarter was 40.8% as compared to 42.2% in the previous year quarter. The decrease in gross margin was largely due to increased sales volume from lower margin products compared to the same period a year ago.  

Total operating expenses were $1.4 million (7.7% of revenue) for the three months ended September 30, 2010, compared to credit balance of $1.5 million in the same period last year, which included a one-time non-cash benefit of $2.8 million for bad debt estimate change.

Net income was $5.5 million, or $0.13 per basic and diluted share, compared to $7.2 million, or $0.17 per basic and diluted share in the year ago period,  excluding the effect of change in bad debt estimate in the third quarter 2009, net income increased 29% from $4.3 million in the year ago period to $5.5 million this quarter  

Nine Months ResultsRevenues for the nine months ended September 30, 2010 were $50.4 million, up 20% from revenues of $42.1 million for the nine months ended September 30, 2009. Gross profit for the nine months ended September 30, 2010 was $20.8 million,
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SOURCE China Pharma Holdings, Inc.
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