Singapore, Feb 09, 2010: Tianyin Pharmaceutical, a manufacturer and supplier of modernized traditional Chinese medicine based in Chengdu, China, announced that its revenue for the second quarter of fiscal 2010 was approximately $14.9 million, an increase of 47.9 percent compared to $10.1 million for the second quarter of fiscal 2009.
The increase was attributable to higher sales of both existing and new products, channel expansion efforts that increased market penetration, and increased utilization of the Company's expanded production facility. Revenues from the top three selling products, Ginkgo Mihuan Oral Liquid, Arpu Shuangxin Oral Liquid and Azithromycin Dispersible Tablets, were $7.6 million and represented approximately 51percent of total revenues collectively for the quarter.
Cost of goods sold for the three months ended December 31, 2009 was approximately $7.2 million or 48.1 percent of revenue as compared to $4.9 million or 49 percent of revenue for the three months ended December 31, 2008, yielding a gross profit of $7.8 million and gross margins of 51.9 percent, compared to $5.2 million in gross profit and gross margins of 51 percent during the second quarter of fiscal 2009. Gross margins improved as a result of an increase in higher margin products in the sales mix along with greater efficiencies in our production and manufacturing processes.
"Our strong performance in the second quarter and first half of fiscal year 2010 was driven by continued execution of our growth strategy, including the expansion of our sales force and distribution channels, increased sales and marketing activities to support market share gains for our expanding portfolio of products, in addition to rapid utilization of our newly added manufacturing capacity," said Dr Guoqing Jiang, Tianyin's Chief Executive Officer.
"To facilitate our future growth strategy and to diversify our product offering, we formalized a joint venture named Sichuan Jiangchuan Pharmaceutical to produce macrolide antibiotics, which addresses a large and rapidly growing market in China. We have secured the property and commenced construction for our new production facility and expect this to be a key contributor to growth during fiscal 2011. In addition, we received SFDA approval for four new generic products, which complement our portfolio and address established billion dollar plus markets that cover multiple indications. We currently have 40 drug candidates under SFDA review and believe the Chinese stimulus plan, favorable health care policies, increased consumer disposable income, and favorable demographic trends will continue driving overall growth in demand for the pharmaceutical market," added Dr Jiang.
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