Xinhua Pharma 2010 Earnings Down 4.9%

Shandong Xinhua Pharmaceutical recorded a 4.88 percent year-on-year fall in 2010 net profit to 97.25 million yuan, reports 163.com, citing a company filing.

The company attributed the profit decline to the rise in impairment losses and deferred taxes on unrealized profit.

Should the earnings be calculated according to Hong Kong's accounting principles, the company’s net profit will hit 101 million yuan, an increase of 1.62 percent year-on-year.

Sales revenue totaled 2.61 billion yuan, of which the chemical raw material drugs, preparations, commercial distribution, and chemical products businesses contributed 49.64 percent, 19.53 percent, 26.18 percent and 4.65 percent, respectively.

Total assets as of end 2010 hit 2.74 billion yuan, up 4.32 percent year-on-year. Net assets rose 2.62 percent to 1.68 billion yuan.

The company plans to distribute cash dividends of 0.5 yuan (including tax) for every 10 shares held. It expects to pay out a total of 22.87 million yuan.

Bioniche licenses bladder cancer drug Urocidin to Endo Pharmaceuticals

BELLEVILLE, Ont. — Bioniche Life Sciences Inc. (TSX:BNC) shares soared Friday after it announced a multimillion-dollar deal to sell the exclusive right to develop and market its bladder cancer drug Urocidin in the United States to Endo Pharmaceuticals Inc. (Nasdaq: ENDP).

The deal, which includes an option for global rights, calls for an up-front cash payment of US$20 million to Bioniche with the potential for up to US$110 million in additional payments based on clinical, regulatory and commercial milestones.

In addition, Bioniche will manufacture the product and receive a transfer price for supply.

Bioniche shares soared after the early-morning announcement, closing Friday on the TSX up 12 cents or 26 per cent at 58 cents a share on volume of 1,846,287 shares.

Bioniche CEO Graeme McRae described Endo as "the optimal development and commercialization partner for Bioniche, given its understanding of the bladder cancer market and breadth of pharmaceutical industry experience."

"We look forward to advancing the Urocidin development and commercialization program in collaboration with the Endo team," he said.

"Equally, we are very excited about the potential returns to Bioniche and its shareholders following commercialization of Urocidin."

The first of two Phase 3 U.S. Food and Drug Administration-approved and fast-track designated registration trials with Urocidin is nearing complete enrolment, the companies said.

In North America, bladder cancer is the fourth most common cancer in men and in the top 10 among women.

Bioniche Life Sciences Inc. is a Canadian biopharmaceutical company focused on the discovery, development, manufacture and marketing of proprietary products for human and animal health markets worldwide.

Sun Pharmaceutical Expects 13%-15% Sales Growth This FY

MUMBAI -Sun Pharmaceutical Industries Ltd. (524715.BY) expects its sales growth - hit by continued restrictions on its U.S. unit - to be limited to 13%-15% in the current fiscal year, Chairman and Managing Director Dilip Shanghvi said Monday.

For the financial year ended March 31, the Indian pharmaceutical company posted a 22% on-year growth in net profit to INR18.18 billion on consolidated net sales of INR42.72 billion, up 27% on year.

The company will be unable to sell an anti-ulcer drug at discounted rates in the U.S. due to an ongoing patent litigation, likely limiting sales of the drug, said Sarabjit Kour Nangra, an analyst at Mumbai-based brokerage Angel Broking.

Adding to that, Caraco - Sun Pharma's U.S. unit - has received quality-control notification from the U.S. Food and Drug Administration which have hurt sales, said analysts. They added, however, that both factors have been discounted by the markets.

At 0600 GMT, Sun Pharma shares were trading at INR1,235.50, up 2%, where the benchmark Sensex was up 0.7%. Analysts attributed the rise to the company's guidance, which they described as "positive".

The Mumbai-based company plans to approach the FDA to seek approval of 30 new generic products this year, Shanghvi said in a post-results conference call with analysts.

Expenses/Acquisition Plans

Sun Pharma plans INR1.7 billion as capital expenditure in the current fiscal year which began April 1, Shanghvi said, adding that research and development costs are likely to be 7%-8% of revenue.

After its expenditure on organic growth requirements, Sun Pharma "will be left with enough funds for a decent size acquisition, if need be without recourse to outside financing," Shanghvi said.

The company has INR35 billion in cash and investments, he added.

The outstanding acquisition of Israel-based Taro Pharmaceutical Industries Ltd.(TAROF) could require up to INR10 billion, if Sun Pharma wishes to acquire the entire company, Shanghvi said. But for just the founders' stake alone, Sun Pharma would require INR2 billion, he added.

Sun Pharma made its first attempt to buy Taro in May 2007. After chances of an amicable acquisition failed, it has been delayed due to pending litigation.

Sun Pharma has already spent around INR4.5 billion on Taro, analysts said.

"This is possibly a long-drawn process, because the court has to decide (on whether Sun must change its bid for Taro) as the two parties cannot agree on a price," Nangra said.

There is no sight of a court ruling yet, the company spokeswoman said

Shandong Xinhua Q1 net profit up 45 pct

Three months ended March 31, 2009

 (in million yuan unless stated)

 Shr (yuan)              0.04   vs 0.03

 Net                         18.19  vs 12.55

 Total operating income  605.95 vs 567.13

 Company name            Shandong Xinhua Pharmaceutical Co. Ltd.

NOTE - Shandong Xinhua Pharmaceutical (0719.HK) (000756.SZ) is principally engaged in the development, production and sale of bulk pharmaceuticals, preparations, chemical products and other products. The figures are prepared in accordance with the PRC Accounting Standards ("PRC GAAP").