HANGZHOU, China, Sept. 21 /PRNewswire-FirstCall/ -- Aida Pharmaceuticals, Inc. , one of mainland China’s leading pharmaceutical companies, today announced the Company has issued a financial update to its investors:
Dear Existing and Prospective Shareholders:
On August 14, 2006, Aida Pharmaceuticals announced its completed acquisition of majority control of Shanghai Qiaer Biotechnology, a company leading the Chinese pharmaceutical industry in the development of gene-therapy Rh-Apo2L. We believe that Rh-Apo2L will prove to be a revolutionary therapy for the treatment of various forms of cancer. It is Aida’s intention to continue delivering our pioneering antibiotic, Etimicin Sulfate, while working to research, develop and deploy new drug therapies for the Chinese and international marketplaces. My purpose in writing you today is to reiterate what we believe to be the strong financial foothold Aida has in the bio-pharmaceutical market and how this will translate into positive performance in the second half of fiscal 2006 and beyond.
As previously reported in the company’s 10KSB, Aida generated a profit of approximately $1.47 million on revenues of approximately $24.53 million at year-end 2005. More recently, Aida announced $7,284,888 in revenues for the second quarter ended June 30, 2006, a 44% increase over revenues of $5,031,908 for the quarter ended June 30, 2005. This represents a sequential revenue increase of approximately 37% from revenues of $5,331,827 for the quarter ended March 31, 2006. 2006 revenues for the six-month period ended June 30, 2006 totaled $12,616,715. Cash and cash equivalents were $5,684,350 and shareholders’ equity was $7,240,735 as of June 30, 2006. Net income in the June ending quarter totaled $398,888, versus a net loss of $165,897 in the second quarter of 2005, and increased 2,644% versus net income of $14,536 in the first quarter of 2006. The Company reported earnings per share of $0.02 in the second quarter of 2006, versus a loss of $0.01 in the second quarter of 2005 and versus $0.00 in the first quarter of 2006.
We remain encouraged by recent developments at Aida spanning our numerous divisions, staffed by nearly 500 employees, and impacting the entire reach of our company. Based on developments over the past nine months, we are targeting 10-15% revenue growth for the year representing a projected 2006 year-end revenue range between $27 million and $28.2 million. We are also targeting 30-40% earnings growth for the year, representing a projected 2006 year-end earnings range between $1.9 million and $2.05 million.
Our long term outlook is equally positive. Assuming Aida generates 2006 year-end revenues of $27.6 million, the approximate mid-point of our guidance, we anticipate 15% to 30% revenue growth in 2007 and 2008, excluding any potential contribution from our newly acquired company. In light of the recent acquisition of Shaghai Qiaer Biotechnology and our estimated timetable to bring Rh-Apo2L to market, we believe by the end of fiscal year 2008 Aida Pharmaceutical’s consolidated revenues may realistically approach $100 million, with the potential of being even higher.
These statements are based on Aida Pharmaceuticals, Inc.'s management’s current expectations and are subject to risks and uncertainties and changes in circumstances.
As stated previously in press releases, Aida Pharmaceuticals and Shanghai Qiaer Biotechnology are awaiting approval for Phase II and Phase III clinical trials from the State Food and Drug Administration (SFDA) in China to continue to develop Rh-Apo2L. We anticipate these trials will conclude by year-end 2007. Upon their completion, Aida will apply for Rh-Apo2L’s Category ‘A’ drug license and seek production approval from the SFDA, assuming the process takes place as previously announced and remains on schedule. Once received, this license will then enable Aida to produce, market and sell Rh-Apo2L in 2008 in mainland China. As more information and updates become available, Aida management will promptly communicate information to investors through its continued marketing efforts.
Aida Pharmaceuticals remains focused on driving long term value for the Company and its shareholders through a strategy of product development and acquisitions. Aida Pharmaceuticals is dedicated to build on and enhance its core competencies. The Company will consider acquiring pharmaceutical companies that research and develop promising new drug therapies including, but not limited to antibiotics, cardiovascular, gene therapy and cancer treatments. It is the goal of Aida Pharmaceuticals to bring meaningful and effective drug therapies to market in mainland China and international markets.
In addition to building on Aida’s core competencies through internal product development and a dynamic acquisition strategy, Aida Pharmaceuticals continues to take strides in its continuous adherence to all North American accounting and regulatory rules and regulations. The Company intends to effect key Board appointments within the calendar year and to establish formalized Audit, Nomination and Compensation Board of Directors committees in accordance with these regulatory requirements. Our continued goal is to hold ourselves to the highest standards of Western compliance. Aida Pharmaceuticals will continue to improve its corporate governance structure to engender transparency and clear communication with our investors and the public. Finally, once we qualify, Aida intends to file an application to join a larger exchange (AMEX or NASDAQ).
To continue to track our progress and for updates, please visit our website: http://en.aidapharma.com or http://www.equityperformancegroup.com/clients_aida.php.
Sincerely, Jin Biao, Chairman 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.
Aida Pharmaceuticals, Inc. 31 Dingjiang Road Jianggan District Hangzhou, China 310016 Investor Relations: Equity Performance Group Gary Geraci (617) 723-2373 gary@equityperfgp.comwww.equityperformancegroup.com Safe Harbor Statement:
Under the Private Securities Litigation Reform Act of 1995: This press release includes certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on Aida Pharmaceuticals, Inc.'s management’s current expectations and are subject to risks and uncertainties and changes in circumstances. All forward-looking statements included in this press release are based upon information available to Aida Pharmaceuticals, Inc. as of the date of the press release, and it assumes no obligation to update or alter its forward looking statements whether as a result of new information, future events or otherwise. These forward-looking statements may relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact. Further information on risks or other factors that could affect Aida Pharmaceuticals, Inc.'s results of operations is detailed in its filings with the United States Securities and Exchange Commission available at http://www.sec.gov.
Aida Pharmaceuticals, Inc.
CONTACT: Gary Geraci of Equity Performance Group for Aida Pharmaceuticals,+1-617-723-2373, gary@equityperfgp.com
Web site: http://en.aidapharma.com/
