Global Pharmatech Reports First Quarter 2006 Results
May 16 2006 - 9:30AM
PR Newswire (US)
JILIN, China, May 16 /Xinhua-PRNewswire/ -- Global Pharmatech, Inc.
(OTC:GBLP) (BULLETIN BOARD: GBLP) today reports its financial
results for the first quarter ended on March 31, 2006. Global
Pharmatech develops, manufactures and markets proprietary drugs and
nutritional supplements that are based on modernized Chinese
medicine and bio-pharmacy. Through its subsidiaries, Global
Pharmatech combines R&D of botanical drug products,
manufacturing, and sales and marketing for the Over-the-Counter
(OTC) and prescription drug markets. First Quarter 2006 Financial
Highlights -- First quarter 2006 revenue decreased to US$ 0.69
million, reflecting a 14% year-over-year decline; -- First quarter
2006 revenue from transfer of technology was US$ 0.36 million as
compared with US$ 0.02 million in the same period of 2005; -- First
quarter 2006 gross profit increased to US$ 0.46 million, reflecting
a 206% year-over-year growth; and -- First quarter 2006 diluted
loss per share was US$0.01 as compared with US$0.01 in same period
of 2005 Dr. Xiaobo Sun, President and Chief Executive Officer of
Global Pharmatech, stated: "We continue to focus on our core
competence in R&D. And thanks to our R&D efforts, our
revenue from technology transfer grew substantially. We look
forward to more cross border research projects such as with
Kobayashi Pharmaceutical.' Revenue for first quarter 2006 was
US$0.69 million, a 14% decrease as compared to US$0.80 million for
first quarter 2005. Revenue from transfer of technology was US$
0.36 million as compared to US$ 0.02 million, reflecting a
substantial year-over-year increase. Gross profit for first quarter
2006 was US$ 0.46 million, a 206% increase as compared with US$
0.15 million for first quarter 2005. Loss from operations for first
quarter 2006 was US$ 0.24 million, a 45% decrease as compared with
US$ 0.44 million for first quarter 2005. Net loss for first quarter
2006 was US$ 0.25 million and diluted loss per share was 0.01, in
line with US$ 0.25 million and diluted loss per share for first
quarter 2005. Joseph Levinson, Chief Financial Officer of Global
Pharmatech, stated: "We will continue to work towards improved
profitability and stronger gross margins. As part of that goal, we
have implemented a strategy of bringing more of our sales
distribution in-house. While this has resulted in a short- term
loss of sales due to the cancellation of at least one distribution
agreement, in the long run, we believe we will benefit from a
higher margin business model." About Global Pharmatech Global
Pharmatech, through its subsidiaries, develops, manufactures and
markets proprietary drugs that are based on Traditional Chinese
Medicine and using modern facilities and advanced R&D
technologies. The company offers a full range of "start to finish"
biotech services, from research and testing to manufacture and sale
of liquid and solid dose products employing unique proprietary
extraction methods, and also licenses patents and technologies for
botanical/biological drug products. Global Pharmatech's operations
are currently based in the People's Republic of China with sales
distribution in China, Malaysia, Singapore and Indonesia. For more
information, please visit http://www.global-pharmatech.com/ . Safe
Harbor Statement under the Private Securities Litigation Reform Act
of 1995 This news release contains forward-looking statements
within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These statements are
based upon our current expectations and speak only as of the date
hereof. Our actual results may differ materially and adversely from
those expressed in any forward-looking statements as a result of
various factors and uncertainties, including our ability to
successfully develop and commercialize products, competitive
products in our key markets, changes in consumer demand for our
products, legislative, regulatory and competitive developments and
general economic conditions. Our SEC filings discuss some of the
important risk factors that may affect our business, results of
operations and financial condition. We undertake no obligation to
revise or update publicly any forward-looking statements for any
reason. Consolidated Statements of Operations for the Three Months
Ended March 31, 2006 and 2005 2006 2005 ------------ ------------
SALES $ 688,470 $ 803,486 COST OF SALES 228,236 655,906
------------ ------------ GROSS PROFIT 460,234 147,580 ------------
------------ OPERATING EXPENSES Advertising 6,295 58,261 Research
and development 171,647 114,326 Selling expenses 43,084 37,488
General and administrative expenses 481,077 374,665 ------------
------------ 702,103 584,740 ------------ ------------ LOSS FROM
OPERATIONS (241,869) (437,160) ------------ ------------ OTHER
INCOME (EXPENSES) Government Grants 37,280 256,448 Interest expense
(41,726) (35,172) ------------ ------------ (4,446) 221,276
------------ ------------ LOSS BEFORE INCOME TAXES AND MINORITY
INTEREST (246,315) (215,884) PROVISION FOR INCOME TAXES Current 0
6,602 ------------ ------------ LOSS BEFORE MINORITY INTEREST
(246,315) (222,486) MINORITY INTEREST (4,553) (28,927) NET LOSS $
(250,868) $ (251,413) ============ ============ LOSS PER COMMON
SHARE: Basic and Diluted $ (0.01) $ (0.01) ============
============ WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 18,247,935
17,394,333 ============ ============ DATASOURCE: Global Pharmatech
CONTACT: Zhuojun Li, Investor Relations of Global Pharmatech, Inc.,
+1-905-787-8225, or fax, +1-905-787-9711, or Web Site:
http://www.global-pharmatech.com/
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