SHANGRI-LA COUNTY, CHINA, Aug. 15, 2011 /PRNewswire/ -- Tibet Pharmaceuticals, Inc. (NASDAQ: TBET), an emerging specialty pharmaceutical company engaged in the development, manufacturing and marketing of traditional Tibetan medicine in China, today reported its financial results for the second quarter ended June 30, 2011.
Summary of Second Quarter Ended June 30, 2011 Financial Results:
- Revenue of $8.7 million, an increase of 12% from $7.8 million in Q2 2010
- Gross profit of $3.9 million compared to $4.1 million in Q2 2010
- Net income of $3.5 million compared to $3.4 million in Q2 2010
- Fully diluted EPS of $0.25
“Tibet Pharmaceuticals is pleased to report our financial results for the second quarter of 2011,” said Hong Yu, CEO and Chairman of Tibet Pharmaceuticals. “We demonstrated a steady 12% increase in revenue in the first quarter of 2011, as well as maintaining high net income margins upwards of 40%. We also benefited from the recent price increase in our products, which was in response to rising raw material costs. This had a positive impact on our revenue, and we believe these new prices, along with streamlining our operations and reducing expenses, will allow us to maintain our attractive margins going forward.”
All of Tibet Pharmaceuticals’ current products are offered and derived from Tibetan-based traditional medicines with natural herbs and minerals found in the high-latitude, low-temperature, and pollution-free environment of Qinghai-Tibet Plateau. Tibet Pharmaceuticals currently sells 5 prescription and over-the-counter Tibetan medicine products, each having been approved by the State Food and Drug Administration of China, also known as the SFDA.
Tibet Pharmaceuticals expects to continue to grow in China‘s fragmented pharmaceutical and traditional Tibetan medicine industries. The company is committed to establishing itself as a leading manufacturer and distributor of Tibetan medicine in China.
Highlights for the 2011 Second Quarter:
- Revenue was $8.7 million along with net income of $3.5 million, resulting in fully diluted EPS of $0.25 for Q2 2011.
- Tibet Pharmaceuticals currently has 190 full-time employees and sells 5 prescription and over-the-counter Tibetan medicine products, each of which has been approved by the SFDA.
- Revenues from Tibet Pharmaceuticals’ biggest product sales contributor, its 25 Ingredients Mandrake Pill, increased 40% to $4.2 million in Q2 2011 from $3.0 million in Q2 2010.
- Expansion of Tibet Pharmaceuticals’ existing distributor network contributed to revenue growth during the second quarter ended June 30, 2011.
- The company’s first price increase since becoming a public company took place on May 1, 2011 in response to rising raw material costs, allowing the company to increase revenue while maintaining margins over 40%.
- Going forward in the second half of 2011, Tibet Pharmaceuticals expects to increase its distribution network for its growing portfolio of traditional Tibetan medicines through various organic growth strategies, while also looking for opportunities for accretive acquisitions and licensing arrangements.
In China, traditional Tibetan medicine is not an alternative form of therapy but is used in the state-run hospitals alongside modern medicine. For its practitioners and advocates, traditional Tibetan medicine is seen as a safe and effective solution to diseases, having the advantage of causing fewer side effects than Western medicine, due to the natural ingredients used. Traditional Tibetan medicine is also believed to promote long term wellness and vigor, and many modern-day drugs have been developed from herbal sources.
Tibet Pharmaceuticals believes that it has benefited from the overall economic development in China in recent years and the increase in the number of elderly people in China, which together have resulted in increased expenditures on medicine in China, including traditional Tibetan medicine. With the improvement of living standards in China, the health care industry has grown substantially in recent years, which also stimulated the domestic demands for Tibetan medicine. As China’s elder population grows, as well as the increased awareness and perception of the safety of traditional Tibetan medicine products, the market demand for traditional Tibetan medicine products is expected to continue to rise.
Earnings Conference Call Details:
Tibet Pharmaceuticals will host a conference call on Tuesday, August 16 at 9:00 am Eastern to discuss its financial results for the second quarter ended June 30, 2011.
The teleconference can be accessed by dialing 877-407-0778 when calling within the United States or 201-689-8565 when calling internationally. Please dial in 10 minutes prior to the beginning of the call. There will be a playback available until September 15, 2011. To listen to the playback dial 877-660-6853 when calling within the United States, or 201-612-7415 when calling internationally and use account number: 286, in conjunction with replay ID number: 377516.
The conference call will be simultaneously webcast and available on the company’s website, www.tibetpharmaceuticals.com, under the “Resources” tab of the “Investor Center” section.
About Tibet Pharmaceuticals, Inc.
Based in Shangri-La County, Yunnan Province, China, Tibet Pharmaceuticals, Inc. (NASDAQ: TBET) is a rapidly growing specialty pharmaceutical company engaged in the research, development, manufacturing and marketing of modernized traditional Tibetan medicines in China. With over 190 employees and nation-wide distributors, the company develops both prescription and over-the-counter traditional Tibetan medicines that promote health in human respiratory, digestive, urinary and reproductive systems. Tibet Pharmaceuticals’ products are sold throughout China, with a majority of sales concentrated in the southern provinces, most notably Yunnan Province, where the company’s 52,000 sq. ft. GMP-certified manufacturing facilities are located. The access to key raw materials, not generally available outside the province, provides a significant advantage for Tibet Pharmaceuticals.
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For more information on Tibet Pharmaceuticals, please visit: www.tibetpharmaceuticals.com.
Forward-Looking Statements
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. Specifically, references herein to contemplated growth in company revenues and/or earnings are forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
Financial Communications Contact:
Trilogy Capital Partners - Asia
Darren Minton, President
Toll-free: 800-592-6067
info@trilogy-capital.com
SOURCE Tibet Pharmaceuticals, Inc.
