JERSEY CITY, N.J., May 15, 2013 /PRNewswire/ -- Aoxing
Pharmaceutical Company, Inc. (NYSE MKT: AXN) ("Aoxing
Pharma"), a specialty pharmaceutical company focusing on research,
development, manufacturing, and distribution of narcotic,
pain-management, and addiction treatment pharmaceuticals, today
announced its financial and operational results for the three and
nine month periods ended March 31,
2013. Complete financial results can be found in the
Quarterly Report on Form 10-Q filed by Aoxing Pharma on
May 15, 2013.
Financial Results:
Revenues for the three and nine months ended March 31, 2013 were $1,885,133 and $7,804,664, respectively, representing a 4% and a
43% increase over the revenues realized in the comparable periods
of fiscal year 2012. The increase in revenue was mainly
attributable to the increase in sales of our main product,
Zhongtongan, which is now being marketed for gynecological and
orthopaedic applications in addition to its core pediatric and
stomotological market. Sales of Zhongtongan accounted for 91%
of sales during the quarter ended March
31, 2013.
Aoxing Pharma completed a $10.2
million financing at the end of September 2012, which allowed it to make some
crucial investments in the future of its business. Operating
expenses, therefore, were swelled during the second and third
quarters of fiscal 2013 by two categories of targeted
investment:
- Research and development ("R&D") expenses were $186,972 during the three months ended
March 31, 2013 and $1,406,631 during the nine month period then
ended, in both cases representing a significant increase over
R&D expense in fiscal 2012.
- Selling expenses in the amount of $2,662,948 incurred during the three months ended
March 31, 2013 and $4,977,821 during the nine months then ended
were, in both cases, several fold higher than the selling expenses
incurred during fiscal 2012. The increase in selling expenses
was attributable to the addition of 90 employees to the sales
staff, increases in travel expenses, and the expenses of an
expanded advertising and marketing campaign. Recently, Aoxing
Pharma signed advertising contracts totaling approximately
$3.66 million with four different
television stations, covering the period from January 2013 to December
2013.
Primarily as a result of these strategic expenses, Aoxing Pharma
recorded losses from operations of $2,300,366 and $4,565,272 for the three and nine month periods
ended March 31, 2013, compared with
losses from operations of $436,953
and $1,083,770 during the same
periods a year earlier. Net losses for the three months ended
March 31, 2013 were $2,729,350, and $6,313,526 for the nine months ended March 31, 2013.
On March 31, 2013, Aoxing Pharma
had $2.7 million in cash on hand and
a working capital deficit of $4,083,825, which represented a significant
improvement over its working capital deficit of $9,112,842 at June
30, 2012. The improvement occurred because Aoxing
Pharma entered into a refinancing agreement with Beijing
International Trust Co., Ltd., and replaced short-term loans of
approximately $7.1 million with a
two-year term loan of approximately $10.2
million.
Zhenjiang Yue, our
Chairman and CEO, commented, "The Chinese pharmaceutical market
continues to be challenging. I am pleased with Aoxing Pharma's
operating results, highlighted by continued growth in product
sales, as well as by the faith that our lenders have shown in our
business model, which has enabled us to significantly improve our
balance sheet."
About Aoxing Pharmaceutical Company, Inc.
Aoxing
Pharmaceutical Company, Inc. is a US incorporated specialty
pharmaceutical company with its operations in China, specializing in research, development,
manufacturing and distribution of a variety of narcotics and
pain-management products. Headquartered in Shijiazhuang City, outside Beijing, Aoxing Pharma has the largest and
most advanced manufacturing facility in China for highly regulated narcotic medicines.
Its facility is one of the few GMP facilities licensed for the
manufacture of narcotic medicines by the China State Food and Drug
Administration (SFDA). Aoxing Pharma has a joint venture
collaboration with Johnson Matthey Plc to produce and market
narcotics and neurological drugs in China. For more information, please visit:
www.aoxingpharma.com.
Safe Harbor Statement from Aoxing Pharmaceutical Company,
Inc.
Certain statements made in this press release are
forward-looking and are made pursuant to the safe harbor provisions
of the Securities Litigation Reform Act of 1995. Such statements
involve risks and uncertainties that may cause actual results to
differ materially from those set forth in these statements. All
forward-looking statements included herein are based upon
information available to the Company as of the date hereof and,
except as is expressly required by the federal securities laws, the
Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
changed circumstances or future events or for any other reason. To
the extent that any statements made here are not historical, these
statements are essentially forward-looking. The Company uses words
and phrases such as "guidance," "forecasted," "projects," "is
expected," "remain confident," "will" and/or similar expressions to
identify forward-looking statements in this press release. Undue
reliance should not be placed on forward-looking information. The
economic, competitive, governmental, technological and other risk
factors identified in the Company's filings with the Securities and
Exchange Commission, specifically, Item 1A, "Risk Factors," in the
Form 10-K for the year ended June 30,
2012, may cause actual results or events to differ
materially from those described in the forward looking statements
in this press release. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
because of new information, future events, or otherwise.
CONTACT:
Aoxing Pharmaceutical
Company:
646-367-1747
investor.relations@aoxingpharma.com
SOURCE Aoxing Pharmaceutical Company, Inc.