Tibet Pharmaceuticals, Inc. (NASDAQ: TBET), an emerging specialty pharmaceutical company engaged in the development, manufacturing and marketing of traditional Tibetan medicine in China, today reported its financial results for the third quarter ended September 30, 2011. Summary of Third Quarter Ended September 30, 2011 Financial Results:
Revenue of $8.6 million, compared to $9.0 million in Q3 2010
Gross profit of $2.9 million, compared to $4.7 million in Q3 2010
Net income of $1.6 million, compared to $3.8 million in Q3 2010
Fully diluted EPS of $0.11
“Tibet Pharmaceuticals and its management team faced several challenges in the third quarter, however, we remain committed to our sales initiatives and will be poised for growth as conditions improve,” said Hong Yu, CEO and Chairman of Tibet Pharmaceuticals. “Despite rising raw material costs, Tibet Pharmaceuticals maintained high revenue levels, as well as $1.6 million in net income for the third quarter of 2011. The decrease compared to the same period of 2010 was primarily due to the increasingly competitive business environment of the Chinese medicine market, especially the effects of soaring inflation which caused customers to cut back on their expenditures for health-related products and medicine. In spite of these difficulties, we remain optimistic about the long-term prospects of the Tibetan medicine sector given the continuing rise of China’s middle class, and we are taking strong measures to combat the immediate challenges we face.” Mr. Yu continued, “For example, during the third quarter of 2011, we lowered sale prices of our products and provided promotional discounts to our customers to drive sales. We will continue to use these measures to increase sales, while simultaneously reducing our expenses in order to maximize profitability going forward.” All of Tibet Pharmaceuticals’ current products are offered and derived from Tibetan-based traditional medicines with natural herbs and minerals found in the high-altitude, low-temperature, and pollution-free environment of Qinghai-Tibet Plateau. Tibet Pharmaceuticals currently sells 5 prescription and over-the-counter Tibetan medicine products, each of which is approved by the State Food and Drug Administration of China, also known as the SFDA.