China Pharma Holdings Inc. (OTCBB: CPHI) develops, manufactures and markets generic and branded bio-pharmaceutical products throughout China. Today the company announced its first-quarter results, posting an increase in revenues and net income, as well as reiterating its 2008 full year revenue to surpass 40 percent growth.
For the first quarter of 2008, China Pharma increased its revenues 62 percent to $11.7 million from $7.2 million for the same period last year. The company attributes the increase to its expanded production of its product portfolio and enhanced marketing efforts. Net income was $4.2 million, a 77 percent increase over the first quarter of 2007.
“We are pleased to report another quarter of strong revenue and net income growth. The success of our increased marketing efforts and diversified portfolio focusing on therapeutics targeting high mortality and
high incidence diseases enabled us to achieve a 62 percent increase in revenues for the first quarter of 2008,” Zhilin Li, president and CEO of China Pharm stated in the press release. “Our ability to prudently manage expenses while collecting on 2007 bad debt reserves contributed to the decrease in operating expenses and resulted in a higher operating margin. We anticipate this trend will continue during 2008 as we aim to maintain or improve margins and profitability going forward.”
China Pharm attributed its 76 percent growth in gross profit, posted at $5.8 million, to the increase in revenue and decrease in overall production for the first quarter of 2008.
“In the first quarter of 2008, our acceleration in organic growth from our existing core products and new products launched after 2006 demonstrates the success of our dual growth strategy. China Pharma continues to focus on developing and marketing improved generic products for high incidence and high mortality diseases particular to the China market. With the rapidly growing economy and the Chinese Government’s commitment to expand its rural cooperative medical system (CMS) by spending $1.3 billion to increase coverage from 51 percent to 100 percent in rural areas, we are well positioned in the Chinese pharmaceutical industry to continue to grow our revenue and net income throughout 2008 and beyond,” Li stated.
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