Benda Pharma sees nine-month revenues grow 25.7%

Benda Pharmaceutical, a China-based company producing both Gendicine, a commercialized gene therapy medicine for the treatment of cancer, and traditional Chinese and conventional medicines, reports that revenue in the first nine months of 2008 increased 25.7% to $19.9 million, primarily reflecting increased sales at Benda Ebei. SiBiono generated turnover of $1.8 million, down from $3.3 million in the prior year period. The decline in SiBiono-related revenue reflects the company's reorganization of personnel in the department.

Gross profit in the first three quarters was $7.2 million, a 5.7% decrease. Gross margin was 36.5%, compared with 48.7% in the same period in 2007. The latter performance reflected a drop in sales of Gendicin, which has historically generated a comparatively higher gross margin.

Operating expense was around $7.9 million, compared with $13.0 million in the first nine months of 2007. This reflects promotional fees for Gendicine and the introduction of new products in Benda Ebei, as well as a $1.1-million penalty incurred but not yet paid to investors for registration delays, and a $300,000 expense incurred for shares issued as Make Good Compensation for non-achievement of certain 2007 performance thresholds. Benda incurred significantly higher operating costs in the prior year period related to the acquisition of SiBiono.