CHENGDU, China, Jan. 30 /PRNewswire-Asia-FirstCall/ -- Tianyin Pharmaceutical, Co., Inc. , a manufacturer and supplier of modernized traditional Chinese medicine ("TCM") based in Chengdu, China, today announced that the Company has begun the initial purchase of shares under its previously announced stock repurchase program. These shares will be retired to the treasury while reducing the number of outstanding shares of its common stock.
On October 27, 2008, the Board of Directors authorized the Company to repurchase up to $3.0 million of its common stock from time to time in the open-market or through privately negotiated transactions. The Company's original announcement stated that the buyback would be conducted through January 2009, but it shall be conducted through June 30, 2009. The Company reported $12.4 million in net cash and equivalents on September 30, 2008 and was cash flow positive. Management believes the Company is adequately funded to meet all of the working capital and capital expenditure plans for 2009. Additionally, the Company believes that the Pharmaceutical Industry will be a beneficiary of expanded social reform with the recently announced government stimulus plan.
As of December 31, 2008, the Company has approximately 15.7 million shares of common stock outstanding and approximately 1,031,322 million shares are in the public float as of today.
"The initial share buyback illustrate our confidence in the long-term growth of the company and our commitment to our shareholders," said Guoqing Jiang, Chairman and Chief Executive Officer, "I am pleased to announce that we have made significant progress toward our new production facility which is expected to commence production in the Spring. We recently completed installation of steel framework and roofing of the new building, while laying the floors. The civil construction is expected to be completed around Chinese New Year and we will begin decoration afterwards. The new plant will expand our overall production capacity by 3 times and will be utilized to meet growing demand for our current products, while accommodating new product launches from our development pipeline to also drive future revenue growth."
About Tianyin Pharmaceuticals
Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 33 modernized TCMs and 5 generic western medicines in the market, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance Program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 47 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. Tianyin achieved revenue of approximately $33.5 million and net income of approximately $6 million in FY2008 ending June 30, 2008. For more information about Tianyin, please visit http://www.tianyinpharma.com .
Safe Harbor Statement
The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.
CONTACT: For the Company: Allen Tang, Ph.D., MBA, Assistant to the CEO,
China, at +86-158-2122-5642, or Allen.y.tang@gmail.com; or Investors:
Matthew Hayden, HC International, Inc. at +1-561-245-5155 or
Matt.Hayden@hcinternational.net, for Tianyin Pharmaceutical
Web site: http://www.tianyinpharma.com/
