SHANGRI-LA COUNTY, China, March 30, 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 record financial results for its fiscal year ended December 31, 2010.
Summary of Fiscal Year Ended December 31, 2010 Financial Results:
- Revenue of $32.4 million, an increase of 41% from $23.0 million in 2009
- Gross profit of $16.2 million, an increase of 38% from $11.7 million in 2009
- Net income of $13.1 million, an increase of 42% from $9.2 million in 2009
- Fully diluted EPS of $1.11 for fiscal 2010, exceeding all prior results
"Tibet Pharmaceuticals is thrilled to report record financial results as the company continues to drive revenues and earnings, while simultaneously maintaining our attractive margins," said Taylor Guo, Chief Executive Officer at Tibet Pharmaceuticals. "This has been a significant year for the company and our valued shareholders. We became publicly listed on NASDAQ in January 2011, we raised $16.5 million in financing through our IPO and we continue to execute on improving our business by driving growth and minimizing costs and inefficiencies in our operations."
Tibet Pharmaceuticals expects to continue to grow its revenue and earnings through its corporate growth initiatives and expansion strategy 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 throughout China.
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.
In the last two years, Tibet Pharmaceuticals' business has grown rapidly as a result of China's strengthening economy, the strong demand in China for traditional Chinese and Tibetan medicines, the government's efforts to improve health care in China, and the increase in the number of elderly people in China.
Mr. Guo added, "Benefiting from our recent milestones, Tibet Pharmaceuticals will seek to capitalize on China's growing elderly population and rising middle-class consumers to drive revenues, earnings and ultimately shareholder value."
Highlights for the 2010 Fiscal Year:
- Revenue was $32.4 million along with net income of $13.1 million, resulting in fully diluted EPS of $1.11 for the fiscal year ended December 31, 2010.
- 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.
- In January, Tibet Pharmaceuticals became a U.S. listed operating company and completed a $16.5 million IPO.
- Revenues from Tibet Pharmaceuticals' biggest product sales contributor, its 25 Ingredients Mandrake Pill, increased 26.8% from $11.2 million in 2009 to $14.2 million in 2010.
- In 2009, the PRC government began the implementation of a new national medical and health plan. Among other features, this new plan seeks to extend national medical insurance coverage to China's rural areas, with an aggressive target population in excess of 900 million, and to promote the use of traditional Tibetan medicine products.
- Expansion of Tibet Pharmaceuticals' existing distributor network contributed to increases in revenue and earnings during the year ended December 31, 2010.
- Tibet Pharmaceuticals achieved record net income through higher sales revenue, and the company's efforts to improve efficiencies, including the management of production costs and administrative expenses.
- Going forward in fiscal 2011, Tibet Pharmaceuticals expects to increase its distribution network for its growing portfolio of its traditional Tibetan medicines through both organic growth and accretive acquisitions.
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 Friday, April 1, 2011, at 10:00 am Eastern to discuss its fiscal year-end December 31, 2010 financial results.
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 June 14, 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: 369954.
About Tibet Pharmaceuticals, Inc.
Based in Shangri-La County, Yunnan Province, China, Tibet Pharmaceuticals, Inc. (Nasdaq: TBET) is a 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 full-time employees and national-wide distributors, the company develops both prescription and over-the-counter ("OTC") 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 the Yunnan Province, where the company's 52,000 sq. ft. fully GMP-certified manufacturing facilities are located. The access to key raw materials is not generally available outside the province and provides a significant advantage for Tibet Pharmaceuticals.
For more information on Tibet Pharmaceuticals, please visit: www.tibetpharmaceuticals.com
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 acquisitions, industry growth and possible 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.
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