Genesis Signs Pact with Chinese Academy of Sciences
by Richard Daverman, PhD
ChinaBio Today
Genesis Pharmaceuticals Enterprises, Inc. (OTCBB: GTEC) continued its steady flow of announcements by reporting a new cooperative agreement with The Institute of Microbiology, Chinese Academy of Sciences (IMCAS). IMCAS, which performs basic and applied research in microbiology, will work with Genesis to improve the commercialization of pharmaceutical discoveries.
Genesis and IMCAS will build a "Genesis Pharmaceuticals Industrialization Model" to facilitate the commercialization of pharmaceutical discoveries. Genesis will be responsible for funding the daily operations of the collaboration, which will take place at IMCAS. When drugs have completed the first stage of experiments in the model, Genesis will conduct further testing in its own facility to determine the feasibility of commercial-scale production.
Genesis and IMCAS will work together to solve manufacturing problems, and Genesis will have the right to purchase any products that come from the model.
Genesis’ present incarnation was created less than two months ago, on October 1, 2007, when Laiyang Jiangbo Pharmaceuticals Co. completed a reverse merger with Genesis. One month later, Genesis announced that it had completed a $5 million private placement and bought a patent for the drug Ligustrazine Ferulic Acid Acetate (LFAA), a prospective anti-clotting treatment.
Recently, the company also announced pro forma results for the quarter ending September 30, the first quarter of the company’s fiscal year. Revenues dropped 8% to $16.6 million and net income was also lower by 8% at $3.2 million. Genesis attributed the slowdown to a scheduled maintenance project that took its manufacturing facility off line for five weeks. Without the stoppage, Genesis estimates that revenues would have 15% above last year’s levels.
Clarithromycin sustained-release tablets provided 65% of the company’s revenue during the first quarter, with a gross margin approaching 80.0%. Another 27% of the revenues came from Itopride Hydrochloride granules, which had an even higher gross margin percentage of close to 90%.
Genesis ended its first quarter with $4.6 million in cash, $19.6 million in working capital and a current ratio of 2.1:1. It used $3.2 million in cash flow from operations, partly to make a $3.9 million payment to raw material suppliers, hedging against anticipated rising prices for raw materials. As of September 30, 2007, Genesis had $10.8 million of bank debt and bank notes, and $30.9 million of shareholders' equity. The company has approximately 389 million shares of common stock outstanding.
Looking ahead, Genesis plans to expand its pharmaceutical offerings. The company already began sales of Baobaole chewable tablets, and it expects to be granted approval of an additional four new drugs from the China State Food and Drug Administration by the end of 2007.
ChinaBio Today is a regular contributor to BioHealth Investor
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ChinaBio Today
Genesis Pharmaceuticals Enterprises, Inc. (OTCBB: GTEC) continued its steady flow of announcements by reporting a new cooperative agreement with The Institute of Microbiology, Chinese Academy of Sciences (IMCAS). IMCAS, which performs basic and applied research in microbiology, will work with Genesis to improve the commercialization of pharmaceutical discoveries.
Genesis and IMCAS will build a "Genesis Pharmaceuticals Industrialization Model" to facilitate the commercialization of pharmaceutical discoveries. Genesis will be responsible for funding the daily operations of the collaboration, which will take place at IMCAS. When drugs have completed the first stage of experiments in the model, Genesis will conduct further testing in its own facility to determine the feasibility of commercial-scale production.
Genesis and IMCAS will work together to solve manufacturing problems, and Genesis will have the right to purchase any products that come from the model.
Genesis’ present incarnation was created less than two months ago, on October 1, 2007, when Laiyang Jiangbo Pharmaceuticals Co. completed a reverse merger with Genesis. One month later, Genesis announced that it had completed a $5 million private placement and bought a patent for the drug Ligustrazine Ferulic Acid Acetate (LFAA), a prospective anti-clotting treatment.
Recently, the company also announced pro forma results for the quarter ending September 30, the first quarter of the company’s fiscal year. Revenues dropped 8% to $16.6 million and net income was also lower by 8% at $3.2 million. Genesis attributed the slowdown to a scheduled maintenance project that took its manufacturing facility off line for five weeks. Without the stoppage, Genesis estimates that revenues would have 15% above last year’s levels.
Clarithromycin sustained-release tablets provided 65% of the company’s revenue during the first quarter, with a gross margin approaching 80.0%. Another 27% of the revenues came from Itopride Hydrochloride granules, which had an even higher gross margin percentage of close to 90%.
Genesis ended its first quarter with $4.6 million in cash, $19.6 million in working capital and a current ratio of 2.1:1. It used $3.2 million in cash flow from operations, partly to make a $3.9 million payment to raw material suppliers, hedging against anticipated rising prices for raw materials. As of September 30, 2007, Genesis had $10.8 million of bank debt and bank notes, and $30.9 million of shareholders' equity. The company has approximately 389 million shares of common stock outstanding.
Looking ahead, Genesis plans to expand its pharmaceutical offerings. The company already began sales of Baobaole chewable tablets, and it expects to be granted approval of an additional four new drugs from the China State Food and Drug Administration by the end of 2007.
ChinaBio Today is a regular contributor to BioHealth Investor
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