Tianyin Pharma Reports Higher Fiscal 2008 Profits

Tianyin Pharmaceutical, Co., Inc. (TYNP.OB), which makes modernized versions of traditional Chinese medicine, released unaudited results from its fiscal 2008, which ended June 30, 2008. The company said its revenues climbed 65% to $33 million while net income was 50% higher at $5.9 million. Tianyin said its audited numbers will be announced by the end of September, and management will discuss them in a conference call at that time.

The company also said it expected its 2009 top line to come in at least 28% higher at $46 million or higher while net income should rise 26% to a minimum of $7.5 million.

An increase in marketing expenses were part of the reason that net income did not grow as much as revenue during 2008. Tianyin said its advertising spend increased from $0.2 million to $1.6 million, and the sales force jumped from 523 employees to 720.

As accomplishments in 2008, Tianyin listed the following:

• Formal listing in a US exchange (reverse merger to OTC Bulletin Board);
• A $15.2 million private placement to provide working capital for growth, including the expansion of production facilities;
• Won official government tenders for Ginkgo Mihuan Oral Liquid in Liaoning, Guangxi, Yunnan, and Shanxi provinces;
• Signed over 60 new distribution agreements with a total of 15 regional distributors, including both new and previously contracted distributors in May 2008;
• Received approvals from the SFDA for Azithromycin Dispersible Tablets and Simvastatin Tablets.

Tianyin said it will continue to increase its marketing efforts, with a special emphasis on high-margin products. The company expects to develop and commercialize four to six new products over the twelve months and use its new production facility to meet demand. Acquisitions are always a possibility, though the numbers released by Tianyin do not include any provision for them.

Tianyin boasts a product portfolio of 32 modernized TCMs and 4 generic western medicines, 22 of which are listed in the National Medicine Catalog of the National Medical Insurance Program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. Another 49 pharmaceutical products await approval.

Disclosure: none.