GNPH - Genesis Pharmaceuticals Enterprises
03.11.2008 16:50
Genesis Pharmaceuticals Launches New Corporate Website
LAIYANG, China, Nov. 3 /Xinhua-PRNewswire-FirstCall/ -- Genesis Pharmaceuticals Enterprises, (News) Inc. (BULLETIN BOARD: GNPH) ("Genesis" or the "Company"), a U.S. pharmaceutical company with its principal operations in the People's Republic of China, today announced the launch of its new corporate website with the domain address http://www.genesispharmaceuticals.com/ .
The website features an overview of the Company, its corporate history, current products and recent news. The website includes an investor relations section from which users can download presentations and filings.
"We are very pleased to officially launch our new corporate website. We believe that this new website will provide a quick and easy way for our customers, investors and business partners to access key information about Genesis Pharmaceuticals and communicate directly with us," said Mr. Wubo Cao, Chief Executive Officer of Genesis. " Through frequent and regular updates, we believe our website will be an effective tool that will increase awareness of our Company's products among consumers, enhance contacts with our investors, and raise awareness of our business within the investment community."
About Genesis Pharmaceuticals Enterprises, Inc.
Genesis Pharmaceuticals Enterprises, Inc. is a U.S. public company engaged in the research, development, production, marketing and sales of pharmaceutical products in the People's Republic of China. Its operations are located in Northeast China in an Economic Development Zone in Laiyang City, Shandong province. Genesis is a major pharmaceutical company in China producing tablets, capsules, and granules for both western and Chinese herbal- based medical drugs.
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to introduce, manufacture and distribute new drugs. Actual results may differ materially from anticipated or predicted results, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's ability to obtain raw materials needed in manufacturing, the continuing employment of key employees, the failure risks inherent in testing any new drug, the possibility that regulatory approvals may be delayed or become unavailable, patent or licensing concerns that may include litigation, direct competition from other manufacturers and product obsolescence. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
For more information, please contact: Genesis Pharmaceuticals Enterprises, Inc. Ms. Elsa Sung, CFO Phone: +1-954-727-8435 Email: genesispharm@gmail.com Web: http://www.genesispharmaceuticals.com/ CCG Investor Relations, Inc. Mr. Crocker Coulson, President Phone: +1-646-213-1915 Email: crocker.coulson@ccgir.com Web: http://www.ccgir.com/
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HOMEPAGE : http://www.genesispharmaceuticals.com
NEWS: http://www.genesispharmaceuticals.com/...fir_lineid=79&sec_lineid=490
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Wochenverlauf_USA: 03.11.-07.11.2008
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Press Release Source: Genesis Pharmaceuticals Enterprises, Inc.
Genesis Pharmaceuticals Announces Conference Call to Discuss Results for the First Quarter of Fiscal Year 2009
Thursday November 13, 8:00 am ET
LAIYANG, China, Nov. 13 /Xinhua-PRNewswire/ -- Genesis Pharmaceuticals Enterprises, Inc. (OTC Bulletin Board: GNPH - News; "Genesis" or the "Company"), a U.S. pharmaceutical company with its principal operations in the People's Republic of China, today announced that the Company will host a conference call at 9:00 a.m. Eastern on Monday, November 17, 2008 to discuss financial results for its first quarter of fiscal year 2009
ADVERTISEMENT
Genesis Pharmaceuticals management will host a conference call at 9:00 a.m. Eastern on Monday, November 17, 2008 to discuss financial results for its first quarter of fiscal year 2009 ended September 30, 2008. The conference call will include Mr. Wubo Cao, Chairman and CEO, Ms. Elsa Sung, CFO, and Ms. Hong Xue, Financial Controller. To participate in this live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (888) 419-5570. International callers should call (617) 896-9871. The Conference Passcode is 684 940 06.
If you are unable to participate in the call at that time, replay of the conference call will be available from Monday, November 17 at 11:00 a.m. Eastern until Monday, December 1. To access the replay, call (888) 286-8010. International callers should call (617) 801-6888. The Conference Passcode is 396 547 67.
About Genesis Pharmaceuticals Enterprises, Inc.
Genesis Pharmaceuticals Enterprises, Inc. is a U.S. public company engaged in the research, development, production, marketing and sales of pharmaceutical products in the People's Republic of China. Its operations are located in Northeast China in an Economic Development Zone in Laiyang City, Shandong province. Genesis is a pharmaceutical company in China producing western and Chinese herbal-based medical drugs in tablet, capsule, and granule form. For more information of the Company, welcome to visit http://www.genesispharmaceuticals.com .
BALANCE SHEETS
Cash: $ 61,269,936
Total assets: $ 123,948,290
__________________________________________________
REVENUES.
Our revenues include revenues from sales and revenues from sales to related party of $27.3 million and $0.2 million, respectively, for the three months ended September 30, 2008. During the three months ended September 30, 2008, we had revenues from sales of $27.3 million as compared to revenues from sales of $15.3 million for the three months ended September 30, 2007, an increase of $12.1 million or approximately 79.0%. During the three months ended September 30, 2008, we had revenues from sales to related party of $0.2 million as compared to revenues from sales to related party of $1.3 million for the three months ended September 30, 2007, a decrease of $1.1 million or approximately 81.9%. The overall increase in total revenue was due to the increase of sales volume of our strong selling product, Itopride Hydrochloride Granules and a new product, Baobaole Chewable Tablets, and partially offset by the decrease in sales of Clarithromycin Sustained-release Tablets. Itopride Hydrochloride Granules sales increased by over 90% were primarily due to the strong market demand for this product. Baobaole was released in the second quarter of fiscal year 2008 and the product has been very popular in the market since. Additionally, we also had a loss of production time for approximately five weeks in the three months ended September 30, 2007, due to a previously scheduled maintenance project implemented by management to comply with Chinese drug production industry standards, which affected our production and related sales in 2007. We believe that our sales will have improvements and growth in remaining of fiscal year 2009 as our new product Baobaole Chewable Tablets continues generating strong sales and we began selling another new product, Radix Isatidis Dispersible Tablets, in October 2008. We will also continue strengthening our sales force, improving the quality of our products and developing new products that will be well accepted in the market.
§
§
...and we began selling another new product,
Radix Isatidis Dispersible Tablets, in October 2008.
In November 2008, the Board of the Directors of the Company authorized a share buyback program to purchase the Company’s common stock in the open market with a two million dollar limitation. As of November 13, 2008, the Company has not purchased any shares in the open market.
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HOMEPAGE : http://www.genesispharmaceuticals.com
NEWS: http://www.genesispharmaceuticals.com/...fir_lineid=79&sec_lineid=490
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13.11 PR-NEWS http://ih.advfn.com/...&cb=1226859084&article=29293351&symbol=NB^GNPH
14.11 EDGAR (10-Q) http://ih.advfn.com/...&cb=1226859084&article=29335900&symbol=NB^GNPH
The total shares outstanding at November 12, 2008 was 10,331,448
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Guys, while I have not had a chance to review the Report.. Lets review a few things here;
We are in tremendous economic pressure throughout the globe, yet GNPH returns a positive quarter showing possibilities of steady and or increased revenue.
Gross profit was $21.8 million for the three months ended September 30, 2008, as compared to $12.0 million for the three months ended September 30, 2007
"REVENUES. Our revenues include revenues from sales and revenues from sales to related party of $27.3 million and $0.2 million, respectively, for the three months ended September 30, 2008. During the three months ended September 30, 2008, we had revenues from sales of $27.3 million as compared to revenues from sales of $15.3 million for the three months ended September 30,"
But most importantly is our new product.. $18 million in orders. That's not sales just orders..
Add this to the year, and you are looking at the CEO's projections of $130-40 million in total revenue..
Like there's companies out there that are doing this??
In todays market?
Earnings are excellent, outstanding! Yawl ought not try and match your wits with a CEO who's producing astronomically in spite of disparity. ..
Me thinks I need to do some pump around here and help show some of you's what's up in China.. Why China's coming through this economic down slide, up on top.
But for now, a few hints. Chinese people, as a society, are penny savers from hell.. Just imagine how your country would be behaving if you'd been under economic pressure for the past 60 years.. Scrimping and saving slices of pennies to make ends meet for generations, a hell of a struggle. .. This is something which does not 'just' slip away. It's a Chinese social moray.
While much of the globe is suffering currently, some might feel that investing in the USA or which every your home. is noble. And noble it may be but investing in China now is one way you have a chance to bring some of that green back to your shore. Emerging small cap, producing extraordinary results is the key while shopping for bottoms.
We should be trading near 19 bucks now all things considered.. Do the math..
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In November 2008, the Board of the Directors of the Company authorized a share buyback program to purchase the Company’s common stock in the open market with a two million dollar limitation. As of November 13, 2008, the Company has not purchased any shares in the open market.
17.11.2008 12:31
China West, LLC / China West II, LLC Arbitrations Against Genesis Pharmaceuticals Now Total $13.5 Million
MIAMI, Nov. 17 /PRNewswire/ -- China West has filed a second arbitration for $7.5 million USD against Genesis Pharmaceuticals (BULLETIN BOARD: GNPH) for its breach of contract and failure to carry out its obligation under the Genesis Equity Partners operating agreement and contractual obligations.
China West, LLC and China West II, LC now has a total of $13.5 million in arbitration claims currently pending against Genesis Pharmaceuticals, Inc.
In 2006, Genesis Technology Group, (News) Inc. (GTEC), China West, LLC and Joshua Tan, a director of Genesis, formed GENESIS EQUITY PARTNERS LLC (GEP), a Florida limited liability company, for the purpose of completing private-to- public reverse merger programs for Chinese companies. GTEC owned 51%, China West owned 25% and Tan owned 24% of GEP.
In 2007, GEP entered into an agreement with a Chinese pharmaceutical company known as Laiyang Jiangbo Pharmaceuticals Co. Ltd. (LJP) pursuant to which GEP would fund the legal, accounting and other work necessary to complete a reverse merger with a U.S. publicly traded company. GTEC decided it would be the merger partner for LJP and the reverse merger occurred on October 1, 2007. The reverse merger company was named GENESIS PHARMACUETICAL ENTERPRISES, INC. GTEC received 25% of the new company. In breach of its contractual and fiduciary duties, Genesis did not distribute to China West its 25% share of the shares GTEC received as provided under the GEP operating agreement. The value of the shares China West was entitled to receive was $7.5 million.
On May 12, 2007 from Beijing, Dr. Shaohua Tan, then a Genesis Director, observed: "I just came back with a signed Contract with our GEP No. 6 partner, Laiyang Jiangbo Pharmaceutical Co., Ltd, for a 30% stake for GEP."
Tan further stated, "With 2006 revenue over RMB713 Million ($92.7 Million) and profit margin over 16%, this company is one of largest pharmaceutical companies in Northeast China, also, one of the major pharmaceutical companies in China. It is so far the largest GEP partner, about 3 times bigger than Lotus.
There has been a major effort to close this deal with months of hard work and contributions from our alliance. Considering that the initial offer was only 15%, you can imagine the difficulty to close this deal at a satisfactory conclusion."
China West LLC, and China West II, LLC is represented by Jeffrey Tew, Esq., Tew Cardenas, 15th Floor Four Seasons Tower, 1441 Brickell Avenue, Miami, FL 3331. Genesis is represented by Benjamin Olive, Esq., Olive&Associates, 2438 E. Las Olas Blvd., Fort Lauderdale, FL 33301.
Certain statements set forth in this press release constitute 'forward- looking statements.' Forward-looking statements including, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words 'estimate,' 'project,' 'intend,' 'forecast,' 'anticipate,' 'plan,' 'planning,' 'expect,' 'believe,' 'will likely,' 'should,' 'could,' 'would,' 'may' or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
17.11.2008 13:07
Genesis Pharmaceuticals Reports Results for the First Quarter of its Fiscal Year 2009
LAIYANG, China, Nov. 17 /Xinhua-PRNewswire-FirstCall/ -- Genesis Pharmaceuticals Enterprises, (News) Inc. (BULLETIN BOARD: GNPH) ("Genesis" or the "Company"), a U.S. pharmaceutical company with its principal operations in the People's Republic of China, today announced its financial results for its first quarter of fiscal year 2009 ended September 30, 2008.
First Quarter of FY 2009 Highlights
-- Revenue was $27.6 million, up 65.9% from the corresponding quarter
ended September 30, 2007
-- Gross profit was $21.8 million, up 81.3% from the corresponding quarter
ended September 30, 2007, and gross margin was 79.1%, compared to 72.4%
in the corresponding quarter ended September 30, 2007
-- Operating income was $7.3 million, up 48.9% from the corresponding
quarter ended September 30, 2007
-- Net income was $3.1 million, compared to $3.2 million in the
corresponding quarter ended September 30, 2007
-- In July 2008, the Company received approval from the Chinese State Food
and Drug Administration to start producing and distributing Radix
Isatidis Dispersible Tablets, an herbal-based traditional Chinese
medicine used for viral influenza
-- On September 4, 2008, the Company completed a 40-for-1 reverse stock
split of its common stock and began trading under the symbol "GNPH"
-- The Company received purchase orders for a total value of approximately
$12 million over the next 12 months from over 80 wholesale distributors
at the 43rd Annual New Drugs Conference sponsored by China Health Tech
Forum 2008
"Genesis had a good first quarter because of our on-going marketing and sales efforts. Baobaole Chewable tablets continued to generate strong sales, and we recently started selling a new product, Radix Isatidis Dispersible Tablets, which is used to treat cold and flu symptoms," said Mr. Wubo Cao, Chairman and CEO of Genesis. "We expect to continue to expand our marketing and sales efforts and continue to explore opportunities to acquire, manufacture and sell new products in order to further develop shareholder value throughout the rest of fiscal year 2009."
First Quarter of Fiscal Year 2009 Results
Total revenue from sales and sales to related parties totaled $27.6 million for the three months ended September 30, 2008, up 65.9% to $16.6 million for the three months ended September 30, 2007. Revenues increased because of strong sales of the Company's two products, Itopride Hydrochloride Granules and Baobaole chewable tablets, a product which was successfully launched in the second quarter of fiscal year 2008.
Gross profit in the first quarter of fiscal year 2009 was $21.8 million, an increase of 81.3% from $12.0 million for the prior year's corresponding period. Gross margin increased 79.1%, up from 72.4% for the prior year's corresponding period. Gross margin increased because of increased sales of higher margin products, especially Baobaole chewable tables, more efficient production and well managed purchases of raw materials.
Research and development costs totaled $1.1 million for the three months ended September 30, 2008, compared to $0.3 million for the three months ended September 30, 2007. This increase was due to two new cooperative research and development agreements that were signed in the latter part of fiscal 2008. The Company began making monthly payments to support university research and development projects.
Selling, general and administrative expenses were $13.4 million for the three months ended September 30, 2008, up 95.7% from $6.8 million in the three months ended September 30, 2007. Salaries, wages and related benefits increased $8.6 million primarily because of an increase in the Company's number of employees and higher commissions as a percentage of sales paid to sales representatives. Other factors for the increase in selling, general and administrative expenses included higher advertising, marketing and promotion expenditures, and costs related to being a public company.
Income from operations was $7.3 million for the three months ended September 30, 2008, a 48.9% increase from $4.9 million for the three months ended September 30, 2007.
Although the Company had a $2.4 million increase in income from operations, other expenses increased by $2.1 million. Net income for the three months ended September 30, 2008 was $3.1 million, compared to $3.2 million for the three months ended September 30, 2007. Excluding an unrealized loss on security investments of $1.0 million and a non-cash charge for amortization of discounts on convertible debt of $0.7 million, adjusted net income for the three months ended September 30, 2008 was $4.8 million or $0.49 per fully diluted share, which translates to a 49.5% increase in non-GAAP net income for the three months ended September 30, 2008 compared to the same period last year.
Management believes that operating income will grow and net income will improve in the remainder of fiscal year 2009 as the Company will continue to strengthen its sales efforts, offer new products, improve manufacturing efficiency and more closely control spending.
Financial Condition
As of September 30, 2008, the Company had $61.3 million in cash. Working capital was $77.4 million, up from $73.2 million as of June 30, 2008. Current liabilities were $23.4 million and long-term debt consisted of $3.2 million in convertible debt. Shareholders' equity was $97.4 million. Future contractual obligations within one year period include $7.9 million in bank debt and $4.4 million in research and development contractual agreements. The Company generated $13.7 million in cash flow from operating activities in the first quarter of fiscal year 2009. Management believes that its strong cash position will sustain the Company's future cash needs and will enable the Company to successfully implement its growth strategies.
Recent Events
-- The Company started sales of Radix Isatidis Dispersible Tablets in
October 2008. This drug is expected to become a popular remedy for
cold and flu symptoms.
-- In early November of 2008, the Company launched a new corporate website
with the domain address http://www.genesispharmaceuticals.com/ .
Business Outlook and Guidance
"Part of our current growth strategy includes developing and implementing a systematic marketing strategy through which we hope to develop our presence in China's rural markets. We believe that rural China offers us good growth potential because the Chinese government actively supports better health care in rural areas. We are currently also exploring acquisition opportunities through which we expect to quickly increase our portfolio of products," said Mr. Cao. "Regarding corporate governance, we are in the process of selecting and engaging a professional consulting company to help us meet the requirements of the Sarbanes-Oxley Act of 2002. The improvements we want to bring to our corporate governance are guided by the requirements for applying to a senior U.S. stock exchange. We hope to apply to a senior U.S. stock exchange in the near future in order to increase visibility and liquidity for our shares, and value for our shareholders."
"Sales have grown quickly for Baobaole Chewable Tablets, Radix Isatidis Dispersible Tablets have found rapid market acceptance, and we expect to expand our product line in the near future. We continue to be confident that we will meet our fiscal year 2009 guidance," concluded Mr. Cao. "We expect revenue for fiscal 2009 to be from $122.0 to $130.0 million, and operating income to be from $40.0 to $43.0 million."
Conference Call
Genesis Pharmaceuticals Enterprises, Inc. management will host a conference call at 10:00 a.m. Eastern Time on Monday, November 17, 2008 to discuss financial results for the quarter ended September 30, 2008. Mr. Wubo Cao, Chairman&CEO of Genesis, Ms. Elsa Sung, CFO of Genesis and Ms. Hong Xue, Financial Controller of Genesis will be present at the conference call. To participate in this live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time of 9:00 a.m. Eastern Time on Monday, November 17, 2008: (888) 419-5570. International callers should call (617) 896-9871. The Conference Passcode is 684 940 06. If you are unable to participate in the call at that time, replay of the conference call will be available from Monday, November 17, 2008 at 11:00 a.m. Eastern until Monday, December 1, 2008. To access the replay, call (888) 286-8010. International callers should call (617) 801-6888. The Conference Passcode is: 396 547 67.
About Genesis Pharmaceuticals Enterprises, Inc.
Genesis Pharmaceuticals Enterprises, Inc. is a U.S. public company engaged in the research, development, production, marketing and sales of pharmaceutical products in the People's Republic of China. Its operations are located in Northeast China in an Economic Development Zone in Laiyang City, Shandong province. Genesis is a pharmaceutical company in China producing western and Chinese herbal-based medical drugs in tablet, capsule, and granule form.
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to introduce, manufacture and distribute new drugs. Actual results may differ materially from predicted results, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's ability to obtain raw materials needed in manufacturing, the continuing employment of key employees, the failure risks inherent in testing any new drug, the possibility that regulatory approvals may be delayed or become unavailable, patent or licensing concerns that may include litigation, direct competition from other manufacturers and product obsolescence. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
-- Financial Statements Follow --
GENESIS PHARMACEUTICALS ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(UNAUDITED)
2008 2007
REVENUES:
Sales $27,320,750 $15,262,789
Sales - related parties 243,843 1,348,095
TOTAL REVENUE 27,564,593 16,610,884
Cost of sales 5,713,059 4,205,945
Cost of sales - related parties 54,478 384,169
COST OF SALES 5,767,537 4,590,114
GROSS PROFIT 21,797,056 12,020,770
RESEARCH AND DEVELOPMENT EXPENSE 1,097,925 264,920
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES 13,351,975 6,821,416
INCOME FROM OPERATIONS 7,347,156 4,934,434
OTHER (INCOME) EXPENSE:
Other expense, net 914,970 12,678
Other (income) - related parties (143,950) (26,492)
Non-operating expense 74,621 59,903
Interest expense, net 1,352,794 60,000
Loss from discontinued operations 45,216 --
OTHER EXPENSE, NET 2,243,651 106,089
INCOME BEFORE PROVISION FOR
INCOME TAXES 5,103,505 4,828,345
PROVISION FOR INCOME TAXES 1,970,021 1,593,353
NET INCOME 3,133,484 3,234,992
OTHER COMPREHENSIVE INCOME:
Foreign currency translation
adjustment 330,641 417,346
Unrealized Holding (Loss) (1,562,967) --
COMPREHENSIVE INCOME $1,901,158 $3,652,338
BASIC WEIGHTED AVERAGE NUMBER
OF SHARES 9,769,329 7,494,740
BASIC EARNING PER SHARE $0.32 $0.43
DILUTED WEIGHTED AVERAGE NUMBER
OF SHARES 9,861,671 7,494,740
DILUTED EARNING PER SHARE $0.32 $0.43
...
For more information, please contact:
Genesis Pharmaceuticals Enterprises, Inc.
Ms. Elsa Sung CFO
Tel: +1-954-727-8435
Email: elsasung@jiangbo.com
Web: http://www.genesispharmaceuticals.com/
CCG Investor Relations, Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com/
17.11.2008 13:10
Genesis Pharmaceuticals Plans to Repurchase up to $2 Million Shares
LAIYANG, China, Nov. 17 /Xinhua-PRNewswire-FirstCall/ -- Genesis Pharmaceuticals Enterprises, (News) Inc. (BULLETIN BOARD: GNPH) ("Genesis" or the "Company"), a U.S. pharmaceutical company with its principal operations in the People's Republic of China, today announced that it plans to repurchase shares of its common stock.
The Company's board of directors authorized up to $2 million in open market share repurchases. This authorization does not have an expiration date, and share repurchases will be made from time to time as permitted by securities laws and subject to factors such as levels of cash generation from operations, working capital cash requirements, market conditions, and other factors. Plans to repurchase shares may be modified or discontinued at any time. As of September 30, 2008, the Company had approximately $61 million in cash and a portion of this cash will be used to pay for the share repurchases.
"While recognizing that share prices for most listed companies have recently declined, we believe that recent prices for Genesis' shares do not reflect the true value of our company," said Mr. Wubo Cao, Chief Executive Officer of Genesis. "Our board of directors authorized the share repurchases to show support for our company and confidence in its long term financial performance. We view these share repurchases as part of our ongoing commitment to increase shareholder value."
About Genesis Pharmaceuticals Enterprises, Inc.
Genesis Pharmaceuticals Enterprises, Inc. is a U.S. public company engaged in the research, development, production, marketing and sales of pharmaceutical products in the People's Republic of China. Its operations are located in Northeast China in an Economic Development Zone in Laiyang City, Shandong province. Genesis is a major pharmaceutical company in China producing tablets, capsules, and granules for both western and Chinese herbal- based medical drugs.
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to introduce, manufacture and distribute new drugs. Actual results may differ materially from anticipated or predicted results, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's ability to obtain raw materials needed in manufacturing, the continuing employment of key employees, the failure risks inherent in testing any new drug, the possibility that regulatory approvals may be delayed or become unavailable, patent or licensing concerns that may include litigation, direct competition from other manufacturers and product obsolescence. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
For more information, please contact:
Genesis Pharmaceuticals Enterprises, Inc.
Ms. Elsa Sung, CFO
Tel: +1-954-727-8435
Email: genesispharm@gmail.com
Web: http://www.genesispharmaceuticals.com/
CCG Investor Relations, Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com/
Genesis Pharmaceuticals Enterprises, Inc. (GNPH.OB) reported that Q1 (ended September 30, 2008) revenues climbed an admirable 66% to $27.6 million, and gross profit rose an even more dramatic 81% to $21.8 million. On a non-GAAP basis, Genesis reported net income of $4.8 million a 50% increase. That was lower than the rise in revenue, but still a big jump. It works out to earnings of 49 cents per fully diluted share.
On a GAAP basis, however, the situation was not as positive. Using those standards, net income for Q1 dipped slightly from $3.2 million last year to $3.1 million this year.
The company attributed the disappointing profit to a laundry list of causes. On an ongoing basis, affecting both the GAAP and non-GAAP calculations, the most significant problem was a dramatic rise in SG&A expense. Costs in the category soared 96% to $13.4 million, a rate far greater than the rise in revenues. Genesis said the largest item was an $8.6 million expense for salaries and higher commissions for the sales force, an increase of 166% over the previous year. The company also upped its spending on both advertising and R&D.
Specific to the GAAP figures, Genesis’s net income was also negatively affected by a number of accounting issues. It took a $1 million writedown on security investments and a $.7 million charge for amortization of convertible debt discounts.
For the full fiscal 2009 year, Genesis reiterated its guidance that revenues will be in a $122 to $130 million range and operating income will be between $40 and $43 million.
In a separate announcement, Genesis said it would begin a $2 million buyback of its own shares.
Also, Genesis was hit with a $13.5 million suit from China West, which alleged that Genesis had reneged on its contract to pay China West for guidance in the reverse merger that listed Genesis Pharma shares on the Bulletin Board Exchange. Management did not comment on the suit.
As corporate accomplishments during the quarter, Genesis pointed to an SFDA approval of Radix Isatidis Dispersible Tablets, a TCM for viral influenza. The company also effected a 40-for-1 reverse stock split. Another recently new product, Baobaole Chewable tablets, used to treat gastric discomfort, continues to perform well for the company. It was launched less than one year ago. Other major products for Genesis are Itopride Hydrochloride Granules, a TCM that aids digestion, and Clarithromycin Sustained-release Tablets, an antibiotic.
Genesis ended its Q1 with $61.3 million in cash and working capital of $77.4 million. It generated $13.7 million of positive cash flow during Q1. Shareholders' equity was $97.4 million.
The various announcements issued by and about Genesis had a negative effect on its stock price. Genesis dropped 75 cents to $4.70, a decline of 14% on very light volume of just 1500 shares. The company was bid at $4.70, while the ask was listed at $5.45.
After the company’s reverse split, Genesis has 9.9 million shares outstanding, fully diluted. At its current price, Genesis has a market capitalization of $47 million.
an ??????
Bei solchen Aussichten und Ergebnissen müßte doch der Kurs auf die 20 $ Marke hinlaufen bei der Anzahl an OS oder ????
Was zur Telefonkonferenz
Ist Jeff nicht gleich longvestor bei ihub?
Deswegen würd ich es dort nicht reinstellen,bbb.
Wilie the CC was short yet long and detailed. it's difficult to transcribe all the details.
But things are very good and looking up.
Majority of questions surrounded the LFAA deal..
This product is expected to perform superbly..
In a nut shell, the university wants 3 million more for it and company is negotiating with them to lower the demand. Originally offered for 16 mil, now 19. Talks expected to finalize soon, perhaps Dec, but if university doesn't compromise Jan.
LFAA would be released for sales approval sometime in June 2009.. Although since the Product complications of drugs from other companies, export, China has strengthened their guidance and inspection program. China's not wanting some cheap drug manufacture to skimp on material usage again, and due to this delays are to be expected.
The return on LFAA during it's protected life span, 5-7 years, and 10-15 for tech protection. Profits expected is 90% gross margin.. I.E. LFAA sales/revenue will be HUGE!
In the mean time 3 more drugs coming down the pipeline.
Sales commission costs have been increased as GNPH is adapting to spread it's products wider. Increase revenues with sales incentives. which seems to be working, as the new flue product sales are great.
the CFO commented that this current quarter's income has been excellent, and December report will/should show greater income growth.