(PublicWire) — China Aoxing Pharmaceutical Company, Inc. (OTCBB: CAXG) (“China Aoxing”), a China-based pharmaceutical company specializing in research, development, manufacturing and distribution of narcotic and pain-management products, today announced financial and operational results for the three months ended December 31, 2009, or the second quarter of fiscal year 2010.
Second Quarter 2010 Highlights:
- Successful restructuring Bank of China loan with forgiveness of $3,579,085 in from bond holders
- Continuous improvement of operating efficiency with record low operating loss
- Completed Phase II clinical study for oral TJSL capsules, a novel investigational drug to treat primary dysmenorrhea, or menstrual pain, in adult women
- Completed pivotal clinical trial of Tilidine for acute and chronic treatments of moderate to severe pain
- Received GMP re-certification for four dosage forms at new manufacturing facility
Revenues for the three months ended December 31, 2009 were $1,556,431, a 33% decrease from the revenues of $2,315,709 realized during the three months ended December 31, 2008. The decrease in revenue was impacted by the relocation of the LRT manufacturing facility in the summer of 2009. The consolidation of the LRT facility necessitated GMP re-certification of six formulations at the new facility, delaying fulfillment of the purchase orders for those formulations. As of December 31, 2009, the new facility has successfully passed the GMP re-certification on capsule, tablet, granule and oral solution formulations while re-certification on pill and tincture formulations is expected to conclude in the first half of 2010.
General and administrative expenses were $825,503 in the three months ended December 31, 2009, similar to $796,900 in the three months ended December 31, 2008.
During the three months ended in December 31, 2009, the company continued to improve its profitability and operating efficiency. Loss from operations decreased to $285,225 during the three months ended December 31, 2009, or a 39% reduction from $466,735 incurred during the three months ended December 31, 2008.
Net income for the three months ended December 31, 2009 was $5,446,154, and income attributable to the Company after 5% minority interest was $5,282,170, mainly attributable to the forgiveness of debt and the decrease in the fair value of the outstanding financial derivatives. In comparison, during the three months ended December 31, 2008, the recorded net loss was $1,999,699, and the Company recorded net loss in the amount of $1,972,987 after 5% minority interest and an expense of $1,144,012 attributable to the increase in the fair value of the outstanding financial derivatives.
Mr. Zhenjiang Yue, Chairman and Chief Executive Officer of China Aoxing, commented, “We are very pleased with our financial and business results of this period. As promised, we successfully restructured our capital structure and improved our financial condition significantly, forming the important basis of our future business expansion. The GMP re-certification of four dosage forms at our manufacturing facility is an important step and will help alleviate product backlog. We are excited about the prospects for our business in 2010 and will continue advancing the new generation of narcotics and pain medicine into the market place in China.”
About China Aoxing Pharmaceutical Company, Inc.
China Aoxing Pharmaceutical Company, Inc. (OTCBB: CAXG) is a pharmaceutical company specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE: AOB). Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China’s largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.