China Pharma's Generic Cold Drug Gets Boost from Winter Weather

| About: China Pharma (CPHI)
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China Pharma Holdings, Inc. (NYSEMKT:CPHI) is touting the revenues it receives from Pusen OK, a generic version of cold medication Aleve-D. The company said Pusen OK contributed $4.1 million in revenues in 2007, and it has received another $5.6 million in orders this early in 2008 from a single distributor. The recent heavy winter weather in China has helped sales, according to China Pharma. Pusen OK is the only generic form of Aleve-D available in China. The company says it provides relief from cold and flu symptoms without causing drowsiness.

Pusen OK, a long-acting mixture of naprosyn and a decongestant, helped to drive China Pharma’s unaudited 2007 revenues to “more than” $33 million, a new disclosure in advance of the company’s official financial report. The $33 million in revenue represents a 50% increase from 2006. However, the number is not a huge surprise, because China Pharma’s report for the first nine months of 2007 declared $21.8 million in sales, a 75% increase over the year earlier. The company introduced two new products in late 2006 that helped drive revenues higher, but apparently, the quarter-over-quarter increases were not as impressive in Q4.

China Pharma is especially happy to sell Pusen OK because it generates gross margins of more than 55%, about 10 percentage points higher than most of the company’s product line.

China Pharma expects to launch two new products during the first half of 2008 to keep its sales on the upswing. In late January, China Pharma was granted SFDA approval for a generic version of Bumetanide injection, a diuretic administered for a wide variety of indications, including hypertension and edema associated with congestive heart failure, cirrhosis, and renal disease.

Disclosure: none.