Tibet Pharmaceuticals Reports Financial Results For Third Quarter Ended September 30, 2011

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.

Highlights for the 2011 Third Quarter:

  • Revenue in Q3 2011 was $8.6 million along with net income of $1.6 million, resulting in fully diluted EPS of $0.11. Total revenue for the nine months ended September 30, 2011 increased 7% to $25.6 million as compared to approximately $23.9 million for the same period of 2010.
  • Tibet Pharmaceuticals currently has 190 full-time employees and sells 5 prescription and over-the-counter Tibetan medicine products, each of which has been approved by the SFDA.
  • Tibet Pharmaceuticals engaged Sherb & Co., LLP ("Sherb & Co.") as its new independent auditor after the end of the third quarter.
  • Going forward in the fourth quarter of 2011, Tibet Pharmaceuticals expects to adopt more promotional activities to maintain sales, including lowering the sale prices of its products and providing more discounts. Tibet will also continue to look for opportunities for accretive acquisitions and licensing arrangements.

In China, traditional Tibetan medicine is not an alternative form of therapy but is used in the state-run hospitals alongside modern medicine. For its practitioners and advocates, traditional Tibetan medicine is seen as a safe and effective solution to diseases, having the advantage of causing fewer side effects than Western medicine, due to the natural ingredients used. Traditional Tibetan medicine is also believed to promote long term wellness and vigor, and many modern-day drugs have been developed from herbal sources.

Tibet Pharmaceuticals expects to continue to grow in China’s fragmented pharmaceutical and traditional Tibetan medicine industries. The company is committed to establishing itself as a leading manufacturer and distributor of Tibetan medicine in China.

Earnings Conference Call Details:

Tibet Pharmaceuticals will host a conference call on Tuesday, November 15 at 9:00 am Eastern to discuss its financial results for the third quarter ended September 30, 2011.

The teleconference can be accessed by dialing 877-407-0778 when calling within the United States or 201-689-8565 when calling internationally. Please dial in 10 minutes prior to the beginning of the call. There will be a playback available until December 15, 2011. To listen to the playback dial 877-660-6853 when calling within the United States, or 201-612-7415 when calling internationally and use account number: 286, in conjunction with replay ID number: 383259.

The conference call will be simultaneously webcast and available at: http://www.trilogy-capital.com/autoir/tbet_autoir.html

About Tibet Pharmaceuticals, Inc.

Based in Shangri-La County, Yunnan Province, China, Tibet Pharmaceuticals, Inc. (NASDAQ: TBET) is an emerging specialty pharmaceutical company engaged in the research, development, manufacturing and marketing of modernized traditional Tibetan medicines in China. With 190 employees and nation-wide distributors, the company develops both prescription and over-the-counter traditional Tibetan medicines that promote health in human respiratory, digestive, urinary and reproductive systems. Tibet Pharmaceuticals’ products are sold throughout China, with a majority of sales concentrated in the southern provinces, most notably Yunnan Province, where the company’s 52,000 sq. ft. GMP-certified manufacturing facilities are located. The access to key raw materials, not generally available outside the province, provides a significant advantage for Tibet Pharmaceuticals.

For comprehensive investor relations material, including fact sheets, research reports, presentations and video, please follow the appropriate link: Research Report, Investor Portal and Overview Video.

For more information on Tibet Pharmaceuticals, please visit: www.tibetpharmaceuticals.com

Forward-Looking Statements

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. Specifically, references herein to contemplated growth in company revenues and/or earnings or expected company valuations are forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, changes in company valuations and investor perceptions of companies, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In particular, the company advises investors that the company commissioned the research report discussed in this press release. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX