| By Cindy Wu, Asia Manufacturing Pharma |
| Wednesday, 13 May 2009 |
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Hainan Haiyao, a leading pharmaceutical producer in China, recently announced its financial results for the first quarter of 2009. The company reported a year on year increase of 49.7 per cent in operating revenue to RMB142 million (approx US$20.8 million) in the first quarter. Net profit amounted to RMB22.7 million (approx US$3.3 million),
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an increase of 55.6 per cent as compared to a year before. Earnings per share reached RMB0.11 (approx US$0.016) for its basic shares, while the debt ratio declined to 42 per cent, representing a year on year decrease of eight percentage points. The strong financial results for the quarter were mainly driven by higher sales revenue as a result of the company’s greater efforts in integrating pharmaceutical resources, together with cost reduction measures.
Hainan Haiyao controls the verticals in the industry chain ranging from |
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active pharmaceutical ingredients (APIs) to preparations, with core businesses consisting of Fengliao Changweikang granules, paclitaxel injections and antibiotics.
The drug maker is also involved in contract manufacturing, exports of APIs and sales agency agreements. Hainan Haiyao’s subsidiary Chongqing Tiandi Pharmaceutical is a major API manufacturing facility specializing in the production of plant extracts and APIs for antibiotics.
Hainan Haiyao’s Fengliao Changweikang granules are expected to post a 30 per cent growth in sales in 2009, with sales revenue expected to exceed RMB100 million (approx US$15 million), while its paclitaxel injections are forecast to maintain strong growth.
In addition, the drug maker will for the first time export paclitaxel injections to Vietnam in 2009, and the exports are expected to contribute approximately RMB15 million (approx US$2.2 million) to the company’s sales revenue this year. |
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Chongqing Tiandi Pharmaceutical’s new manufacturing lines for APIs of 7-ANCA, 7-ACCA and ceftibuten are scheduled to be put into operation in September 2009. Currently, China’s APIs for 7-ANCA and 7-ACCA, for the most part, are imported from India.
Artificial cochlea is expected to become a new driver of Hainan Haiyao’s profit growth going forward. The company plans to invest up to RMB50 million (approx US$7.3 million) in collaboration with Shanghai Lishengte Medical Technology to start an artificial cochlea manufacturing program in late 2009 or early 2010.
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