Seeking Alpha
Biotech, foreign companies, China
Profile| Send Message|
( followers)  

Tongjitang Chinese Medicines Company (NYSE: TCM) reported that production at its Xiuwen facility has resumed, one week after the company announced the manufacturing plant would shut down temporarily following the central China earthquake. At the time, Tongjitang said it was not certain the water quality in the facility was assured, necessitating a shutdown until water quality was tested and found safe.

The Xiuwen facility is the site that formulates Xianling Gubao, a TCM osteoporosis treatment that is the main revenue driver for Tongjitang.

In an unrelated announcement, Tongjitang also said that it has received a tax rebate of 16 million RMB ($2.3 million) from the local taxation authority, which it will use to expand its China operations.

At the end of Q1, before the tax rebate, Tongjitang reported it had $114.5 million in cash. The company has a market capitalization of $281 million.

Disclosure: none.

Source: Two Positive Announcements from Tongjitang Chinese Medicines