YANTAI, China / ACCESSWIRE / August 18, 2014 / Bohai Pharmaceuticals Group, Inc. (OTCQB: BOPH), a leading manufacturer and marketer of traditional Chinese medicine (TCM), today said its revenue for fiscal 2014 ended June 30 is expected to total about $175 million, a 15 percent increase on the $151.8 million in revenue for fiscal 2013.
According to the company, this growth was driven primarily by a 40 percent fiscal year increase in sales of its Fangfeng Tongsheng Granule for treatment of upper respiratory tract infection, eczema and urticaria, and a 19 percent fiscal year increase in sales of the Tongbi Capsule and Tablet for treatment of rheumatism and rheumatoid arthritis.
The company also reported that "broad positive developments" are expected to push fiscal 2015 results to new highs. Among these, said Bohai, was the relocation last month of its marketing office from Yantai to Beijing, a move designed to maximize the company's capacity to take advantage of TCM market opportunities and expand communications with relevant Chinese government ministers. To accelerate these activities, the company recruited Mr. Xinge Li as marketing director for the new Beijing office. Mr. Li has held top marketing positions with Janssen Pharmaceuticals, Shineway, Beijing Han Dian and other prominent pharmaceutical companies, and is expected tolead Bohai to improving sales results.
In June, Bohai signed a Letter of Intent with the Government of Gansu Province to build or lease a 500-acre Chinese herbal medicine plantation base in Gansu's Tanchang County, one of China's most desirable agricultural environments. This plantation, which would produce a high percentage of the herbs and other ingredients used by Bohai in the manufacture of Traditional Chinese Medicine, would allow BOPH to significantly reduce production costs, increase gross profit margins, and take a meaningful step toward becoming a vertically-integrated TCM company. The new plantation would be administered under GAP, or Good Agriculture Practice, the State-controlled standard regulating the growing, harvesting and processing of raw materials used in the manufacture of TCMs.
On the R&D front, Bohai recently received notice from Department of Science & Technology of Shandong Province that the company will receive a grant of RMB4 million, or approximately $650,000, to be used for continuing research on additional applications and production technology upgrades for the company's Tongbi Capsule, currently administered at some 2,775 hospitals and clinics across China. This research, which is aimed at demonstrating the product's efficacy in treating a new group of common diseases and afflictions, is expected to be completed by next year.
"We are very encouraged by these developments," said Chairman and CEO, Mr. Hongwei Qu. "As a group, they point to a period of accelerating revenue growth and improved profit margins for fiscal 2015 and beyond."
Bohai's final fiscal year 2014 results will be released by no later than September 29, 2014, said Mr. Qu.
Bohai Pharmaceuticals Group
A manufacturer and marketer of traditional Chinese medicine (TCM) in the People's Republic of China, Bohai offers seven varieties of approved herbal medicines comprising four prescription drugs and three over-the-counter products in six delivery systems. The company reported net income of $18.0 million on revenue of $129.3 million for the first nine months of fiscal 2014.
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SOURCE: Bohai Pharmaceuticals Group, Inc.