Benda Pharma Expands Ability to Increase Revenues

Benda Pharmaceutical (BPMA.OB) announced that its newly expanded Ebei manufacturing facility has begun production, raising the company’s ability to increase its revenues. In November, one of five new production lines received Good Manufacturing Practices [GMP] certification. The line, which produces tablets, has the ability to manufacture $1.8 million worth of product. Production began in December.

In the first nine months of 2007, Benda realized $11.8 million in revenue, up 55% from the year earlier period. Before the expansion, the Ebei facility was primarily a source for vial-form injections, the traditional mainstay of Benda’s revenues.

When finished and approved, the expanded Ebei facility will house production capacity of 40 million oral liquid vials, 230 million capsules, 758 million tablets, 500 tons of pills and 20 million bags of granules. Construction to expand the facility began in September 2007. Benda expects the four remaining production lines to receive their GMP certifications in early 2008.

Besides its conventional medicines, Benda also manufactures Gendicine, a gene therapy for cancer. According to Yiqing Wan, Chairman and CEO of Benda, the expanded capacity of its conventional medications, which are profitable, will give Benda the capital necessary to increase the revenues of Gendicine.

Disclosure: none.