Dragon Pharmaceutical Inc. (TSX: DDD; OTC BB: DRUG) is pleased to announce the results for the first quarter ending March 31, 2004. During the quarter, the Company posted revenues of $878,270 from the sales of rHu Erythropoietin (EPO), which represents 32.2% growth from the same period in 2003.
Revenues of $701,870 were generated from sales in China and $176,400 from sales outside of China during the first quarter of 2004 compared to $454,347 in China and $209,975 from sales outside of China for the same period in 2003. The gross profit margin was 71.9% for the first quarter of 2004, slightly increased from the gross margin of 69.7% for the same period in 2003.
Operating expenses for the quarter in 2004 were $0.88 million, down from $1.2 million from the same period last year reflecting the results of our continued efforts to streamline our operations during the past 12 months. Net loss for the first quarter in 2004 was $249,423 or $0.01 per share, down from a net loss of $734,027, or $0.04 per share, for the same period in 2003.
“We believe the fairly strong first quarter was as a result of our stronger than expected sales in China. A combination of a 32% increase in revenues, a slight improvement in gross margin and a 26% decrease in operating expenses during the first quarter of 2004 compared to the same period last year, have contributed to our lower net loss to just less than $0.25 million or $0.01 per share.” said Dr. Alexander Wick, President and CEO of Dragon Pharmaceutical Inc. “During the first quarter of 2004, we have made a few major announcements which we believe are extremely important to the future development of the Company, including our in-licensing of worldwide rights, excluding China, for Recombinant Human Granulocyte Colony Stimulating Factor (“rhG-CSF”) from Suzhou Zhongkai Bio-Pharmaceuticals Company Limited and our signing of a Letter of Intent to merge with Oriental Wave Holding Ltd. We are very pleased with the progress in completing negotiations of a definitive agreement with Oriental Wave and are still targeting to have the proposed merger completed by the third quarter of 2004, subject to fulfillment of all conditions. Detailed information regarding the transaction, the business of Oriental Wave and its subsidiary and its financial statements would be prepared and circulated to the shareholders of Dragon in connection with a general meeting of shareholders which would be convened to approve the transaction.”