Sinobiopharma fiscal 2010 total revenue increases 101% YoY to $7.7 million

Fiscal Year 2010 Highlights

• Total revenue increased 101% year-over-year to approximately $7.7 million from $3.9 million in the comparable period of 2009.
   
• Gross margin increased 142% year-over-year to approximately $6.2 million, or 80% of sales from $2.5 million, or 66% of sales for the same period of 2009.
   
• Net income increased $5.1 million from net loss of $2.2 million for the year ended May 31, 2009 to net income of approximately $2.9 million for the year ended May 31, 2010. Net income before non-cash stock compensation expense reached approximately $3.7 million for the year ended May 31, 2010 as compared to $0.8 million for the year ended May 31, 2009.
   
• Operating income increased $4.9 million to approximately $2.9 million from a loss of $2.0 million for the same period of 2009.
   
• Income before income tax expense increased $5.2 million to approximately $3.0 million from a loss of $2.2 million for the same period of 2009.
   
• EPS of $0.03 compared to $(0.03) for the same period 2009.
   
• Net worth increased from $776,831 at May 31, 2009 to $9,752,831 at May 31, 2010. Total assets increased by $5,996,519, from $5,956,443 at May 31, 2009 to $11,952,962 at May 31, 2010.

Dr. Lequn Lee Huang, Sinobiopharma's Chairman and CEO, commented on the fiscal year 2010 results: "This has been a great year for Sinobiopharma. The market has demonstrated a strong need for our flagship product – KuTai - and the sales increases from this product are expected to continue for the next two years. The cash flow generated organically is expected to fully support ongoing operations."

Results for the fiscal year ended May 31, 2010

• Revenue increased 101% to $7,731,039 for the year ended May 31, 2010, from $3,850,278 for the year ended May 31, 2009. 
• Gross margin increased 142% to $6,151,430 (80% of sales) for the year ended May 31, 2010, from $2,538,441 (66% of sales) for the year ended May 31, 2009.
• The increase in revenue was due to the continuing growth in sales of Cisatracurium Besylate (KuTai).  Sales of this product increased to $7,516,436 for the year ended May 31, 2010, from $3,592,406 for the year ended May 31, 2009, representing 97% of sales and 94% of sales for the year ended May 31, 2010 and 2009, respectively.  The improvement in gross margin is attributable to an increase in volume, while the unit production cost of Cisatracurium Besylate decreased because the allocation of the unit indirect cost decreased.
• The operating expenses for the year ended May 31, 2010 were $3,218,398 representing a 29% decrease as compared to $4,541,699 for the year ended May 31, 2009.  The decrease is primarily attributable to the decrease of $2,086,240 in the stock-based compensation of $830,885 for the year ended May 31, 2010, compared to $2,917,125 for the year ended May 31, 2009. The stock options have been fully vested and expensed as of August 31, 2009.
• Net income increased $5,017,709 from net loss of $2,154,137 for the year ended May 31, 2009 to net income of $2,863,572 for the year ended May 31, 2010. The increase in net income was due to the increase in sales of Cisatracurium Besylate and decrease of stock-based compensation expense.
• Earnings per share were $0.03 compared to $(0.03) for FY 2009.