China Biologic Reports Strong Sales, Improved Income; Expects Challenges to Persist
China Biologic Products Holdings Inc. (Nasdaq: CBPO), a Chinese biopharma company, posted stronger-than-expected revenue and income for the first quarter Friday after the stock markets closed.
The Beijing-based company announced revenue of $129.8 million for the first three months of this year, a 22 percent increase from the same period of last year. Net income reached $37.7 million, or 94 cents per fully diluted share, it said, compared with income of $31.6 million, or 92 cents per share, a year ago.
CBPO attributed the increase in revenue to improved sales of human albumin products and coagulation factor products, partially offset by decreases in the sales of IVIG and placenta polypeptide products.
"This quarter's outperformance in terms of operating profit growth can be largely attributed to higher-than-expected sales of albumin. This was due to a temporary shortage of albumin supply in the market related to lower import volumes combined with increased plasma fractionation capability at our new Shandong facility launched last February," Joseph Chow, the chairman of China Biologic, said in the statement today.
He added, however, that the Chinese plasma industry is experiencing "challenging policy headwinds and heightened competition."
Looking ahead, CBPO reiterated its guidance for the full year, saying it expects non-GAAP adjusted net income to increase between 4 and 6 percent from 2018, in yuan terms.
The stock of China Biologic closed at $92.70 per share, same as the day before.