Tuesday, September 21, 2010

Sinobiopharma, Inc. (SNBP.OB) Announces FY 2010 Financial Results; 101% Increase in Revenues

Sinobiopharma, Inc., a fully integrated and highly innovative specialty pharmaceutical company focused on biopharmaceutical products in China, today announced its financial results for the fiscal year ended May 31, 2010.

Highlights included a 101% year-over-year increase in total revenue to approximately $7.7 million, a 142% increase in gross margin to approximately $6.2 million, or 80% of sales, net income of $2.9 million versus the previous year’s loss of $2.2 million, and EPS of $0.03 compared to $(0.03) for the same period 2009.

Dr. Lequn Lee Huang, Sinobiopharma’s Chairman and CEO, stated the following: “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.”

The company attributed the strong results mainly to the consistently growing 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 previous year, representing 97% of sales and 94% of sales for the year ended May 31, 2010 and 2009, respectively. The improvement in gross margin is a result of the increase in volume of sales, reducing the unit production cost of Cisatracurium Besylate because the allocation of the unit indirect cost decreased.

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