| By Alex Shaw, Pharmaceutical Manufacturing News |
| Monday, 02 November 2009 |
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Zhejiang province-based Huahai Pharmaceutical recently released its third-quarter fiscal results. For the January to September period, the
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company realized revenues of RMB639 million (approx. US$94 million), an increase of 6.4 percent year-on-year, net profit of RMB101 million (approx. US$14.9 million), while earnings per share increased approximately 5 percent year-on-year to 0.34 yuan. For the third quarter, the company achieved revenues of RMB234 million (approx. US$34.4 million), representing a year-on-year growth of 26.7 percent, cash flow generated from operating businesses soared 221.3 percent year-on-year to RMB105.7 million (approx. US$15.5 million), while net profits increased 57.4 percent year-on-year to RMB29.7 million (approx. US$4.4 million).
Compared with the second quarter, the third-quarter revenues increased 11.9 percent, while net profits declined 11 percent.
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The API segment sees higher sales and lower pricing: the company’s Sartan drugs sales are expected to increase by more than 80 percent for the full-year, however, gross profit is predicted to increase only by up to 10 percent in view of drastic decrease in pricing.
Gross margin continues downward trend: the company’s gross margin was 36.7 percent for the third quarter of this year, significantly lower than the 43.6 percent and 46.3 percent recorded in the second and first quarter, respectively.
Sales of preparations in the domestic market are projected to increase during the rest of this year and all of next year: rapid sales growth has promoted Paroxetine into the Top 10 psychotropic medications, while Losartan and Irbesartan have also been approved to be sold publicly by the respective domestic authorities.
In light of a large number of agents have been named into the national essential drug list, the compound annual growth rate of domestic preparations is expected to exceed |
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50 percent for this and next year. Outlook for the sales of preparations in the international market are promising next year: the company is stepping up efforts on marketing applications for preparations in overseas markets and plans to submit Abbreviated New Drug Applications (ANDAs) for another two generic drugs, after receiving the approval of Benazepril.
Industry experts indicated that the company saw rapid year-on-year growth in revenue and earnings for the third quarter, partly due to a low base in the third quarter of 2008, but the main reason is API exports have rebounded as the economic slowdown abated.
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