ScinoPharm's 2006 Revenue and Net Income at Record High

ScinoPharm Taiwan
2007-02-26 18:54 746

TAINAN, Taiwan, Feb. 26 /Xinhua-PRNewswire/ -- Active pharmaceutical ingredient (API) specialist ScinoPharm reported a 43% rise in its annual revenue to US$44.9 million for 2006, and a positive net income for the first year since the company's inception. Sales on selected anti-oncologics such as Paclitaxel have more than doubled according to the company's financial report.

For the fourth quarter ended December 31, 2006, ScinoPharm's revenues rose 24% to US$13.3 million as compared to US$10.7 million a year ago while net income leapt to US$2 million from a net loss of over US$2 million for the same quarter in 2005. For 2006, the company posted a net income of US$3.2 million. The company is optimistic that its sales and profit growth are sustainable for the ensuing few years due to its rich pipeline.

"We finished 2006 with both a robust top-line growth and a greatly improved bottom-line profit. ScinoPharm started out as a green field project a little over nine years ago. To be able to break even in 2006 is a testament to the hard work and devotion of all our employees for almost a decade and our ability to overcome the numerous significant entry barriers posted by this highly regulated, complex and competitive industry," said Dr. Jo Shen, ScinoPharm President and CEO.

Approximately 75% of ScinoPharm's 2006 revenue came from APIs sold to the generic industry. The company has developed a rich portfolio of anti-cancer APIs now entering the market. "Our sales of oncological APIs should continue to grow as substance patents on many key products will soon expire in North America, Japan, and EU countries," said Dr. Shen.

ScinoPharm has also expanded its contract research and manufacturing activities (CRAM) now accounted for almost 25% of the 2006 revenue. "We have made a strategic decision to stay in both the generic and the CRAM businesses. The API industry is highly cyclical in nature and we have chosen to do both to minimize the risks posted by each side of the business," commented Dr. Shen. In October 2006, Pfizer CentreSource (PCS) announced the selection of ScinoPharm as one of its key manufacturing partners.

ScinoPharm has expanded its geographic presence into new territories, most noted India. "An increasing number of Indian pharmaceutical companies are now entering into the North American and European markets with their formulations. They are particularly interested in our APIs that are produced by patent non-infringing processes. The fact that we can sell our products into India, a country well recognized for its prowess in API, affirms that we have acquired the competence in developing cost effective, patent non-infringing API manufacturing processes."

ScinoPharm has several new API products scheduled for commercialization in 2007, including three items for generic drugs and two for its New Chemical Entity (NCE) projects. The company is also expanding its overall production capacities to prepare for the successive launches of an equivalent number of new products per year for the next five years.

About ScinoPharm Taiwan

ScinoPharm Taiwan Ltd. is a leading process R&D and API manufacturing service provider to the global pharmaceutical industry. With cGMP production facilities, ScinoPharm offers a wide portfolio of services ranging from custom synthesis for early phase pharmaceutical activities to brand companies as well as APIs for the generic industry. ScinoPharm currently serves more than 140 customers worldwide.

ScinoPharm has developed API products in the oncological, hormonal, antibiotics, and CNS arenas. To date, it has over 170 DMF registrations worldwide, 22 of which were filed in the US. .

Media Contact:

Jessie Wang

Tel: +886-6-505-2888 ext 2880


Source: ScinoPharm Taiwan