VANCOUVER, Aug. 14 /PRNewswire-FirstCall/ - Dragon Pharmaceutical Inc. (TSX: DDD; OTCBB: DRUG; BBSE: DRP) today announced the financial results for the second quarter ended June 30, 2007.
Highlights of the Second Quarter, 2007
- Sales increased 48% to $20.55 million from $13.89 million for the
same period of 2006, and increased 19% as compared to the first
- Gross profit and gross margin increased to $3.98 million and 19.36%
from $2.39 million and 17.24% for the same period of 2006;
- Operating income increased 5.6 times to $1.17 million from
$0.18 million in the same period of 2006;
- Net income was $0.45 million, compared to a net loss of $0.32 million
for the same period of 2006. Net income for the second quarter of
2007 was net of a non-cash stock based compensation of $1.02 million.
Strong Sales Growth in the Low Season
Dragon experienced significant revenue growth in the second quarter of 2007 which was normally regarded as the low season during the year. Net sales increased 48% to $20.55 million from $13.89 million for the same period of 2006 and increased 19% sequentially as compared to the first quarter of 2007. The Company experienced revenue growth for all three divisions with 37%, 134% and 44% year-over-year growth rate for the Chemical, Pharma and Biotech divisions respectively.
The revenue growth was mostly driven by the increase in both the sale volume and the price of 7ACA product. As the prices for Penicillin intermediates tripled during the past 12 months, more customers have turned to other alternatives such as cephalosporin drugs, which have led to the increase in both the sale volume and price for 7ACA product. During the quarter, 146 tons of 7ACA were sold, which were 107% of the 137 tons of production output.
The Company has also increased its export sales of Clavulanic Acid by
26% compared with th
|SOURCE Dragon Pharmaceutical Inc.|
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