| By Liu Yuanyuan, Asia Manufacturing Pharma |
| Monday, 05 October 2009 |
 |
Chongqing Lummy Pharmaceutical, a technology-based pharmaceutical maker focusing on the research, development, manufacture and sales of new drugs, said in its prospectus that it plans to issue up to 23 million A shares through an initial public offering on the soon-to-be-launched growth enterprise market in Shenzhen. The proceeds will be used to establish an industrial manufacturing base for anti-infective drugs and specialty medicines with a total investment of RMB144 million (approx US$21.1 million), to
|
|
consolidate and further the company’s leading position in Chinese anti-infective drugs and specialty medicines markets. The potential remaining proceeds will be used as working capital or to pay off loans.
The proposed project foresees eight production lines, including four lines for manufacturing six categories of |
|
|
preparations; and four lines for manufacturing four kinds of APIs. Each production line for preparations will have a capacity of 46.5 million bottles, compared with the capacity of over 41 million bottles in 2008.
Once the project is completed, the company is expected to deliver an average annual growth rate of approximately 30 per cent in sales revenue over the next three years. It is expected to deliver sales revenue of RMB600 million (approx US$87.9 million) and net profit surpassing RMB70 million (approx US$10.2 million) by 2012.
In addition, the company will strive to make breakthroughs through its own R&D efforts over the next three years, with targets of bringing at least one drug into the clinical trial phase fully based on its own R&D efforts, and, in the process, obtaining three to five national invention patents as a result of applying six to eight patent applications, as well as developing seven to nine new products. |
|
The pharmaceutical maker delivered relatively solid growth in its operating results over the past several years. Earnings per share reached RMB0.34 (approx US$0.050), RMB0.57 (approx US$0.083), RMB0.48 (approx US$0.070) and RMB0.26 (approx US$0.038) for 2006, 2007, 2008 and the first half of 2009, respectively.
The manufacturer reported year-over-year increases of 20.3 per cent, 59.7 per cent and 72.3 per cent in its operating revenue during the first half of 2009, the whole year 2008 and 2007, respectively.
Want to read more?
Beijing SL Pharmaceutical’s share price increases nearly tenfold in four years
Shenzhen Salubris Pharmaceuticals remains market leader in China’s cephalosporin antibiotics sector
China's Joincare Pharmaceutical Group seeks financing to expand capacity and improve performance |
|
|
