Genesis Pharma Set to Launch Three Newly Acquired Products

Genesis Pharmaceuticals Enterprises, Inc. (GNPH.OB) has begun marketing three TCM drugs from a portfolio of 22 recently acquired TCMs. Genesis bought the new products, all with SFDA approval, from Hongrui Pharma. The three drugs will be marketed under Genesis’ brand name, Jiangbo, and distributed through Genesis’ established network. Genesis expects the three products to produce $7.3 million of revenue in fiscal 2010.

In February 2009, Genesis paid $12.2 million to acquire Hongrui and its 22 TCM drugs, which produced revenues of 80.6 million RMB ($11.8 million) in the first eight months of 2008 and a net income margin of more than 10%. At the time of the acquisition, Genesis said it expected Hongrui’s products to add 150 million RMB ($19.2 million) in revenues during the 12 months following the purchase. The company also said net income from the products would total about 24 million RMB ($3 million).

The three new TCM products are:

• Yi Mu Cao Gao – used to treat dysmenorrhoea, oligminorrhea and postpartum abdominal pain. Because it is included in China's provincial and national medical insurance catalogs, consumers are reimbursed for the cost of purchasing this product.
• Gan Mao Zhi Ke Ke Li antipyretic and antitussive granules – help relieve cold and flu symptoms. Used in a large number of China's hospitals and clinics.
• Kang Gu Sui Yan Pian osteomyelitis treatment tablets – used to treat bone and bone marrow inflammations. Osteomyelitis patients may develop resistance to chemical drugs, such as antibiotics, if they are prescribed for a long period of time. An exclusive product for Genesis.

Genesis said it expects the three products to generate $1.5 million in revenue in fiscal 2009, which ends June 30. Genesis provides both western and Chinese herbal-based medical drugs in time release tablet, capsule, granule, syrup and electuary (sticky syrup) form.

Genesis’ operating subsidiary in China is Laiyang Jiangbo Pharmaceutical Co.

Disclosure: none.

Comments

[Danny Furman:]

any knowledge of bspm? numbers look too good to be true

Apr 23 04:02 PM