The healthcare market in China is certainly growing, and so are the
companies that serve the market, though the parameters used to measure
that growth may differ for each biopharma. For public companies, the
quarterly earning statement delivers a significant analysis of a
biopharma’s measure of success, and last week, China biopharmas
continued to roll out Q1 reports that were remarkable for their
uniformly positive news. But for private companies, the metrics have to
be different. In ChinaBio® Today last week, we published examples of
both types of stories.
GenePharma, a young and growing private company that provides research
tools to the hot siRNA market, was the subject of a profile that
included an exclusive interview with its founder and CEO, Dr. Peter
Zhang (see
story).
GenePharma has recently made two announcements that testify to its
ambitious plans: the company is opening a new manufacturing a facility
in BioBay Park near Suzhou, and it acquired a patent license from
Alnylam (NSDQ:
ALNY).
The patent license allows GenePharma to sell its siRNA products
worldwide. Combining low prices with excellent service – and an
explosive market for siRNA products – GenePharma is well-positioned for
growth. The company is also a textbook example of the sea turtle
phenomenon, the convergence of recent historical and economic trends
that has made China a preferred location for siting biopharma
enterprises.
No fewer than four China-based, American-listed biopharmas disclosed
their Q1 financial reports during the last week. Each announced revenue
growth of at least 39%, and two were able to say their sales had more
than doubled.
China Sky One (OTCBB:
CSKI),
with a remarkable 140% jump in revenue ($12.4 million) and a 170% climb
in net income ($3.9 million), wins the Most Improved award for
companies reporting this week (see
story).
To continue its growth, China Sky One completed two acquisitions in the
beginning of Q2 that will continue its growth. One acquisition,
Heilongjiang Tianlong Pharma, is a competitor of China Sky One in the
niche of externally-applied (patches, sprays, ointments) drugs, and the
other addition, Heilongjiang Haina Pharma, has a Good Supply Practice
license that allows distribution of drugs. Meanwhile, China Sky One
continues to expand its in-vitro diagnostic test offerings, and the
company is applying for listing on the American Stock Exchange.
Presently, China Sky One is listed on the OTC Bulletin Board.
