--2010 revenue rose 101% YoY to $7.7 million
--2010 net income increased approximately $5.1 million YoY to $2.9 million, or $0.03 per diluted share
NANTONG CITY, China, Sept. 21, 2010 (GLOBE NEWSWIRE) -- Sinobiopharma, Inc. (OTCBB:SNBP) ("Sinobiopharma" or "the Company), a fully integrated and highly innovative specialty pharmaceutical company engaged in the research, development, manufacture, and marketing of biopharmaceutical products in China, announced financial results for the fiscal year ended May 31, 2010.
Fiscal Year 2010 Highlights
- Total revenue increased 101% year-over-year to approximately $7.7 million from $3.9 million in the comparable period of 2009.
- Gross margin increased 142% year-over-year to approximately $6.2 million, or 80% of sales from $2.5 million, or 66% of sales for the same period of 2009.
- Net income increased $5.1 million from net loss of $2.2 million for the year ended May 31, 2009 to net income of approximately $2.9 million for the year ended May 31, 2010. Net income before non-cash stock compensation expense reached approximately $3.7 million for the year ended May 31, 2010 as compared to $0.8 million for the year ended May 31, 2009.
- Operating income increased $4.9 million to approximately $2.9 million from a loss of $2.0 million for the same period of 2009.
- Income before income tax expense increased $5.2 million to approximately $3.0 million from a loss of $2.2 million for the same period of 2009.
- EPS of $0.03 compared to $(0.03) for the same period 2009.
- Net worth increased from $776,831 at May 31, 2009 to $9,752,831 at May 31, 2010. Total assets increased by $5,996,519, from $5,956,443 at May 31, 2009 to $11,952,962 at May 31, 2010.
Dr. Lequn Lee Huang, Sinobiopharma's Chairman and CEO, commented on the fiscal year 2010 results: "This has been a great year for Sinobiopharma. The market has demonstrated a strong need for our flagship product – KuTai - and the sales increases from this product are expected to continue for the next two years. The cash flow generated organically is expected to fully support ongoing operations."
Results for the fiscal year ended May 31, 2010
- Revenue increased 101% to $7,731,039 for the year ended May 31, 2010, from $3,850,278 for the year ended May 31, 2009.
- Gross margin increased 142% to $6,151,430 (80% of sales) for the year ended May 31, 2010, from $2,538,441 (66% of sales) for the year ended May 31, 2009.
- The increase in revenue was due to the continuing growth in sales of Cisatracurium Besylate (KuTai). Sales of this product increased to $7,516,436 for the year ended May 31, 2010, from $3,592,406 for the year ended May 31, 2009, representing 97% of sales and 94% of sales for the year ended May 31, 2010 and 2009, respectively. The improvement in gross margin is attributable to an increase in volume, while the unit production cost of Cisatracurium Besylate decreased because the allocation of the unit indirect cost decreased.
- The operating expenses for the year ended May 31, 2010 were $3,218,398 representing a 29% decrease as compared to $4,541,699 for the year ended May 31, 2009. The decrease is primarily attributable to the decrease of $2,086,240 in the stock-based compensation of $830,885 for the year ended May 31, 2010, compared to $2,917,125 for the year ended May 31, 2009. The stock options have been fully vested and expensed as of August 31, 2009.
- Net income increased $5,017,709 from net loss of $2,154,137 for the year ended May 31, 2009 to net income of $2,863,572 for the year ended May 31, 2010. The increase in net income was due to the increase in sales of Cisatracurium Besylate and decrease of stock-based compensation expense.
- Earnings per share were $0.03 compared to $(0.03) for FY 2009.
About Sinobiopharma, Inc.
Sinobiopharma is a fully integrated and highly innovative specialty biopharmaceutical company engaged in the research and development, manufacture and marketing of biopharmaceutical products in China, one of the world's fastest growing pharmaceutical markets. Known as Dong Ying (Jiangsu) Pharmaceutical Co., Ltd., Sinobiopharma's wholly-owned subsidiary in China, the Company's current therapeutic focus is on anesthesia-assisted agents and cardiovascular drugs. Sinobiopharma has patented new methods for synthesizing active pharmaceutical ingredients (API) at a lower cost and owns drug delivery formulations that improve usability. For additional information, please visit the Company's website at: .
FORWARD LOOKING STATEMENTS
This news release may include "forward-looking statements" regarding Sinobiopharma, Inc., and its subsidiaries, business and project plans. Such forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Sinobiopharma, Inc. expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Sinobiopharma, Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
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CONTACT: Sinobiopharma, Inc. James Mu, CFO 86-25-5806-1579 email@example.com