SANTA MONICA, Calif., Aug. 16 /PRNewswire-FirstCall/ -- Aida Pharmaceuticals, Inc. , one of mainland China’s leading pharmaceutical companies, today announced the release of its second quarter 2007 financial results. Full details of the Company’s 10Q quarterly financial results are available in the Company’s Form 10-QSB at http://www.sec.gov.
Jin Biao, Chairman of Aida Pharmaceuticals, said, “Etimicin sulfate consumption throughout China continues to be strong and we expect it will drive the Company’s growth in the near-term. Our pipeline of new drugs for cancer, hepatitis and stroke continue to be aggressively developed. We expect that the commercialization of our new drugs will decrease the heavy reliance on Etimicin and lessen the fluctuation of our performance. We are also continuing to focus on selective acquisitions for vertical and horizontal market expansion. Into the future, Aida will continue to target the alignment of our valuation with our strong growth profile.”
Aida’s flagship product, Etimicin Sulfate, is the first and only antibiotic developed in China and is patent-protected through 2013. This market-driven innovation has led to supremacy in the Etimicin Sulfate market, where Aida continues to dominate, with 80% market share in mainland China, equivalent to over 6 million 100mg units sold.
Revenues for the three months ended June 30, 2007 were $6,419,476, a decrease of $865,412 from $7,284,888 for the three months ended June 30, 2006. The decrease is due to temporary modifications needed to comply with recently established China government regulations. The Chinese pharmaceutical industry, as a whole, suffers from a relatively rigorous industrial environment since last year, mainly due to the strict regulation policies and personnel change from the SFDA, equivalent to the US FDA. This negatively affected the sales of the company in the short term.
For example, the medical tender system for hospitals in some regions, in the second quarter of 2007, differed from that in 2006, which resulted in some sales decline and sales return in those regions. Aida strongly believes that it will overcome the short-term disadvantage after renewal of sales agent agreements and rapid adaptation to the new government system. In the long run, we anticipate Aida will benefit from the restructuring of the industry and government regulation and will continue to lead the market as a well- disciplined and innovative company.
Aida’s ongoing successful legal action against etimicin sulfate counterfeiters has begun to show results to the bottom line, as the Company believes those manufacturers will be forced out of competition in the short term. The Company believes that operations and growth will continue to recover in the coming quarters.
For the three months ended June 30, 2007, the sales ofAida’s Fangyuan division increased by $979,808 or 114.36% as compared to the same period of 2006. The increase in sales is mainly attributable to an increase in sales of Etimicin material product. Sales of Aida’s Hainan Aike division decreased by $715,378 or 19.37% as compared to the same period of 2006. The decrease in sales can mainly be accounted for the decrease in sales of the Etimicin transfusion product, “Aiyi”.
The cost of goods sold for the second quarter ended June 30, 2007 was $3,605,286 an increase of $25,586 from $3,579,700 for the same period of 2006. Compared to the three months ended June 30, 2006, the percentage gross profit margin for Aida decreased from 50.86% to 43.84% for the first quarter ended June 30, 2007. In the second quarter of 2007, Aida’s net income decreased by $415,203 to a net income (loss) of $(16,315) from $398,888 in the same period in 2006.
About Aida Pharmaceuticals
Aida Pharmaceuticals is a product-focused pharmaceuticals company engaged in the formulation, clinical testing, registration, manufacture, sales and marketing of advanced pharmaceutical and genetic products in mainland China. The Company’s mission is to discover, develop and market meaningful new therapies that improve human health. Aida, in operation since March 1999, is headquartered in Hangzhou, China with manufacturing, distribution and sales points throughout mainland China. Aida is GMP certified in China and ISO9002 certified for quality assurance and ISO14000 certified for ecologically-friendly practices. Aida is now producing and marketing a patented prescription drug in China, etimicin sulfate. It is the first antibiotic developed in China and is regarded as a category “A” drug by the State Food and Drug Administration of China.
For additional information, please visit http://en.aidapharma.com. Company Contact: Aida Pharmaceuticals, Inc. 31 Dingjiang Road Jianggan District Hangzhou, China 310016 U.S. Contact: Aida Pharmaceuticals, Inc. c/o Ashley Hull (310) 450-9100 opt 1 hunnyhull@leamanagement.com
Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company’s actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company’s periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company’s plans or expectations.
Aida Pharmaceuticals, Inc.
CONTACT: Ashley Hull for Aida Pharmaceuticals, Inc., +1-310-450-9100, ext.1, hunnyhull@leamanagement.com
Web site: http://en.aidapharma.com/
