HUBEI PROVINCE, China, Aug. 14 /Xinhua-PRNewswire-FirstCall/ -- Benda Pharmaceutical, Inc. , a China-based pharmaceutical company producing both Gendicine(R), a commercialized gene therapy medicine for the treatment of cancer, and traditional Chinese and conventional medicines, today announced financial results for the quarter ended June 30, 2008. The Company intends to file its Form 10Q with the SEC today.
Six Months Ended June 30, 2008
Revenue in the first half of 2008 increased 60.6% to $13.2 million from $8.2 million in the first half of 2007, primarily reflecting increased sales at Benda Ebei. SiBiono generated revenue of $1.2 million in the first six months of 2008, down slightly from $1.5 million in the prior year period. The slight decline in revenue reflects the Company's reorganization of personnel in the department. On a six months basis, the Company sold 3,526 vials of Gendicine, which was a sequential increase from 1,087 vials sold in the first quarter of 2008.
Gross profit in the first half of 2008 was $4.8 million, a 23.8% increase from $3.9 million in the first half of 2007. Gross margin was 36.5%, compared to 47.4% in the same period of 2007. The drop in gross margin reflects the re-engineering of production department personnel at SiBiono, which affected sales of Gendicine.
Operating loss in the first half of 2008 was $1.3 million, an improvement compared to an operating loss of $7.1 million in the first half of 2007. Operating expense in the first half of 2008 was approximately $6.1 million, compared to $11.0 million in the first half of 2007. Operating expense reflects promotional fees for Gendicine and the introduction of new products in Benda Ebei, as well as a $1.1 million penalty paid to investors for registration delays. The Company incurred significantly higher operating costs in the prior year period related to the acquisition of SiBiono.
Net loss in the first half of 2008 improved to $3.8 million, or $0.04 per basic and diluted share, from a net loss of $8.2 million, or $0.09 per basic and diluted share, in the first half of 2007. Net loss in the first half of 2008 includes the impact of approximately $1.9 million of interest expense related to the Company's outstanding convertible notes. Results in 2008 also include the impact of a $1.1 million payment to investors related to the timing of the effectiveness of its registration statement on Form S-1. Please note the Company was granted effectiveness on the S1 filing and does not anticipate further penalty payments related to this S1 filing going forward.
Three Months Ended June 30, 2008
Revenue in the second quarter of 2008 increased 39.8% to $7.3 million from $5.2 million in the second quarter of 2007, primarily reflecting increased sales at Benda Ebei. SiBiono generated revenue of $0.8 million in second quarter of 2008, down slightly from $1.5 million in the prior year period. The slight decline in revenue reflects the Company's reorganization of personnel in the department. Benda management concluded the reorganization during the second quarter of 2008, and believes that SiBiono production and sales have resumed. In the second quarter of 2008, the Company sold 2,439 vials of Gendicine, a sequential increase from sales of 1,087 vials sold in the first quarter of 2008.
Gross profit in the second quarter of 2008 was $2.7 million, unchanged from the second quarter of 2007. Gross margin was 37.1%, compared to 52.2% in the same period of 2007. The decline in gross margin was primarily due to a re-engineering of SiBiono's production department which affected the sales of Gendicine. However, management believes that the re-engineering will lead to revenue growth in the coming quarters.
Operating loss in the second quarter of 2008 improved to $0.3 million from an operating loss of $7.7 million in the second quarter of 2007. Operating expense in the second quarter was approximately $3.0 million, compared with $10.4 million in the second quarter of 2007, and reflects the penalty payment referenced above as well as advertising expenditure for SiBiono and Benda Ebei new product launches.
Net loss in the second quarter of 2008 improved to $1.8 million, or $0.02 per basic and diluted share, from a net loss of $8.8 million, or $0.09 per basic and diluted share, in the second quarter of 2007.
Wan commented, "We remain very focused on enhancing our revenue performance at SiBiono, as well as our gross margin performance across the organization."
About Benda Pharmaceutical, Inc.
Benda Pharmaceutical, Inc. ( http://www.bendapharma.com ), a China-based pharmaceutical company, produces traditional Chinese and conventional medicines, as well as Gendicine(R), a commercialized gene therapy medicine for the treatment of cancer.
Safe Harbor Statement
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward- looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward looking statements if they comply with the requirements of the Act.
CONTACT: Christine Duan of Integrated Corporate Relations, Inc. at
+1-203-682-8200, for Benda Pharmaceutical, Inc.
Web site: http://www.bendapharma.com/
