China Pharma Holdings, Inc. (NYSEMKT:CPHI) has begun a clinical trial of a generic version of the hypertension drug Candesartan. China Pharma expects the trial will take 18 months to complete. Originally developed by Takeda Pharma of Japan together with AstraZeneca (NYSE: AZN), Cardesartan is a front-line treatment for hypertension. It produced $2.5 billion in revenues worldwide during 2007.
China Pharma is actively seeking to expand its portfolio of generic drugs. In October of last year, the SFDA gave the company approval to begin trials of a third generation Cephalosporin antibiotic combined with a bacterial-enzyme inhibitor. The drug is expected to be effective against resistant bacterial strains.
One year ago, the company received approval for a generic version of Bumetanide injection, a diuretic that is given for a wide variety of indications, including hypertension and edema associated with congestive heart failure, cirrhosis, and renal disease. This market overlaps the expected market for generic Candesartan.
In January of this year, China Pharma received SFDA approval of Tiopronin Enteric-Coated Capsules. Tiopronin is administered to treat acute and chronic hepatitis B and to relieve drug-induced liver injury. Because Tipronin can cause stomach irritation, China Pharma gave its Tiopronin capsules an enteric coating to decrease stomach mucosal irritation.
Also in January, China Pharma announced increased earnings for 2008, in part because of the revenues from Pusen OK, a generic version of cold medication Aleve-D™. The cold medication began adding to the company’s revenues in 2007.
In an unaudited preview of its 2008 results, China Pharma said it expects that revenue will be more than 50% higher year-over-year, while net income will rise by at least 35%. At the same time, the company promised that it has turned the corner on its rising accounts receivable numbers, which have been causing alarm.