Dragon Pharmaceuticals Inc. announced results for the three months and nine months ending September 30, 2001. All dollar amounts are expressed in US currency.
Revenues for the quarter totalled $787,682, an increase of 6.5% over the same period in 2000. Revenues comprise sales of the company’s sole current product, Erythropoietin (EPO), which increased 115% to 157,067 doses compared to the same period last year. Revenues did not increase proportionately to sales volumes due to competitive EPO price reductions in China over the past year.
The third quarter represents the first sales revenue generated from outside China as the company delivered two shipments of vialed EPO to Egypt as well as a large order of purified bulk to Malaysia.
“We are in the product registration process for EPO throughout non-patent protected countries in Central and Eastern Europe, Southeast Asia, Latin America and the Middle East,” said Dr. Longbin Liu, President and Chief Executive Officer. “Our distribution partners have estimated the current market size in these areas at $310 million, which is expected to double by 2005.”
The loss for the quarter was $737,782 or $0.04 per share, compared to a loss of $362,975 or $0.03 per share in the third quarter 2000. The change was due to increased marketing and administration costs, and greater production of EPO to build inventories, in anticipation of international sales orders.
The company ended the quarter with cash and short-term investments of $9,372,683, compared with $6,340,315 at December 31, 2000.
For the first nine months of 2001, revenues totalled $2,054,437, a 6.5% decrease from the same period last year. This was in spite of a 66% increase in EPO sales to 400,222 doses. As with quarterly results, increased sales volumes did not translate into a proportionate revenue gain because of price erosion.
The company incurred a net loss of $2,566,678 ($0.15 per share) during the nine months, compared with $766,752 ($0.06 per share) for the same period in 2000.
Note: The term “dose” refers to the standard reference dosage of 2,000 IU.