China Biologic Products (NASDAQ:CBPO) reported a $5.3 million order for its plasma products for distribution in India. China Biologic began its initiative to sell products internationally only in the last year.
The order is for Human Immunoglobulin (ph4) for IV Injection [IVIG] 5g/100ml product, which will be sold under China Biologic’s brand name and delivered over a nine-month period, beginning in June 2009. The new order is the second sale to an Indian distributor. The first was for $1.6 million of product.
In a statement, Mr. Chao Ming Zhao, CEO of China Biologic Products, said the company can realize higher prices in India for its products than is feasible in its home base of China.
In 2008, China Biologic saw its revenues rise 44% to $46.8 million. The company reported net income of $12 million, an increase of 47%. The new order from India, therefore, represents more than 11% of last year’s revenues. Supply constraints of raw plasma in China have forced prices higher, and plasma-based pharmaceutical companies have prospered, even though their unit volumes may have been flat or reduced year-over-year.
The company’s share price has recovered to $4, after trading as low as $1.05 during the last 12 months. With 21.5 million shares outstanding, China Biologic now has a market capitalization of $86 million.
China Biologic operates in China through its majority-owned subsidiary, Shandong Taibang Biological Products Co. Ltd.