Genesis reports almost flat income in 2008

Genesis Pharmaceuticals Enterprises, a US pharmaceutical company with principal operations in the China, managed to maintain its income at a steady level despite increasing its selling, general and administrative expenses exponentially as it prepares to have its shares listed on a senior securities exchange.

The firm's turnover in fiscal 2008 increased 31% year-on-year to $99.5 million, whereas R&D costs dropped 71% to just $3.2 million. These funds were diverted into SGA expenses, which rose 63% to $41.6 million as the firm rolled out Radix Isatidis dispersible tablets (Marketletter July 21), a Chinese traditional medicine for viral influenza, and prepared three other products for a planned 2009 launch.

Net income rose 2% to $22.5 million, or $1.84 per share, versus $2.94 per share in fiscal 2007. Cash and cash equivalent assets almost doubled to reach $48.2 million from $17.7 million, whereas total assets rose to $114.4 million versus $55.4 million.