China Biologic Products Holdings, Inc. (NASDAQ: CBPO, "China Biologic" or the "Company"), a leading fully integrated plasma-based biopharmaceutical company in China, announced its unaudited financial results for the third quarter of 2019.
Third Quarter 2019 Financial Highlights
- Total sales in the third quarter of 2019 increased by 17.5% in RMB terms and 14.3% in USD terms to $136.1 million from $119.1 million in the same quarter of 2018.
- Gross profit increased by 9.1% to $88.6 million from $81.2 million in the same quarter of 2018. Gross margin decreased to 65.1% from 68.2% in the same quarter of 2018.
- Income from operations increased by 84.7% to $53.0 million from $28.7 million in the same quarter of 2018. Operating margin increased to 38.9% from 24.1% in the same quarter of 2018.
- Non-GAAP adjusted income from operations increased by 64.1% in RMB terms and 59.7% in USD terms to $61.5 million from $38.5 million in the same quarter of 2018.
- Net income attributable to the Company increased by 42.9% to $47.0 million from $32.9 million in the same quarter of 2018. Diluted net earnings per share increased to $1.21 compared to $0.94 in the same quarter of 2018.
- Non-GAAP adjusted net income attributable to the Company increased by 66.0% in RMB terms and 61.4% in USD terms to $54.4 million from $33.7 million in the same quarter of 2018. Non-GAAP adjusted net earnings per diluted share increased to $1.40 from $0.96 in the same quarter of 2018.
"We were pleased to achieve another quarter of strong financial results, driven primarily by the higher-than-expected IVIG sales in the distributor channel following the successful reorganization of our sales and marketing team," said Joseph Chow, Chairman and CEO of China Biologic. "Looking into the fourth quarter and beyond, our new sales and marketing talent will be dedicated to the further pursuit of medical marketing strategies to enhance doctors' awareness about the benefits of IVIG, PCC, and other coagulation factor products in treating chronic diseases. As a result of stronger than expected albumin sales for the first nine months of the year combined with this quarter's rebound in IVIG sales, we are raising guidance for the full year 2019."
Financial Outlook
For the full year of 2019, the Company is raising its full year forecast of growth of non-GAAP adjusted income from operations to 11% to 13% from 4% to 6% and non-GAAP adjusted net income growth to 16% to 18% from 4% to 6% in RMB terms over the Company's full year 2018 financial results. The raising of guidance was primarily due to the combined effect of stronger than expected albumin sales for the first nine months of the year, a rebound in IVIG sales in the third quarter, and higher than anticipated interest income for the full year.
This guidance does not factor in any potential foreign currency translation impact. Having previously adopted an exchange rate of approximately RMB6.59 = $1.00 based on weighted average quarterly exchange rates in 2018 in translating 2018 financial results, the Company expects that the total sales and non-GAAP adjusted net income in USD terms in 2019 could be affected by the foreign currency translation impact.
This guidance excludes potential acquisitions, and necessarily assumes no significant adverse product price changes during 2019. This forecast reflects the Company's current and preliminary views, which are subject to change.
About China Biologic Products Holdings, Inc.
China Biologic Products Holdings, Inc. (NASDAQ: CBPO) is a leading fully integrated plasma-based biopharmaceutical company in China. The Company's products are used as critical therapies during medical emergencies and for the prevention and treatment of life-threatening diseases and immune-deficiency related diseases. China Biologic is headquartered in Beijing and manufactures over 20 different dosage forms of plasma products through its indirect majority-owned subsidiary, Shandong Taibang Biological Products Co., Ltd. and its wholly owned subsidiary, Guizhou Taibang Biological Products Co., Ltd. The Company also has an equity investment in Xi'an Huitian Blood Products Co., Ltd. Since the acquisition of TianXinFu (Beijing) Medical Appliance ...
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