Tibet Pharmaceuticals Reports Financial Results for First Quarter Ended March 31, 2011
SHANGRI-LA COUNTY, China, May 16, 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 first quarter ended March 31, 2011.
Summary of First Quarter Ended March 31, 2011 Financial Results:
- Revenue of $8.2 million, an increase of 17% from $7.0 million in Q1 2010
- Gross profit of $3.5 million compared to $3.5 million in Q1 2010
- Net income of $2.6 million compared to $2.8 million in Q1 2010
- Fully diluted EPS of $0.18
“Tibet Pharmaceuticals is pleased to report our financial results for the first quarter of 2011,” said Taylor Guo, Chief Executive Officer at Tibet Pharmaceuticals. “We demonstrated a steady 17% increase in revenue in the first quarter of 2011, as well as maintaining net income margins upwards of 30%. Although our net income decreased slightly compared to the first quarter of 2010, this was due primarily to the rising cost of raw materials, and our management team believes this will begin to improve going forward as we initiate efforts to increase the prices of our products accordingly. Subsequent to the end of the first quarter, on May 1 we initiated our first price increase since becoming a public company and we believe this will have a positive impact on our 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, with 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.
Mr. Guo added, “Tibet Pharmaceuticals is looking to leverage its proceeds from its IPO earlier this year toward potential accretive acquisitions to help the company expand within the highly fragmented traditional Tibetan medicine industry. Tibet’s management team has already identified several targets and looks forward to relaying more details over the coming weeks and months.”
Highlights for the 2011 First Quarter:
- Revenue was $8.2 million along with net income of $2.6 million, resulting in fully diluted EPS of $0.18 for the first quarter ended March 31, 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 22% from $3.2 million in Q1 2010 to $3.9 million in Q1 2011.
- Expansion of Tibet Pharmaceuticals’ existing distributor network contributed to revenue growth during the first quarter ended March 31, 2011.
- The company’s first price increase since becoming a public company took place May 1, 2011 and is expected to improve margins and enhance net income going forward.
- Going forward in fiscal 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, May 17 at 9:30 am Eastern to discuss its financial results for the first quarter ended March 31, 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 May 31, 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: 372828.
The conference call will be simultaneously webcast and available on the company’s website, www.tibetpharmaceuticals.com, under the “Events and Presentations” tab of the “Investors” 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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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
SOURCE Tibet Pharmaceuticals, Inc.