First China Pharmaceutical Group (FCPG) is a growing pharmaceutical distribution company generating "significant revenue" from the sale of pharmaceutical products in China, the company's Web site states.
Last November, FCPG announced unaudited financial results for the three-month period ended Sep. 30, 2012.
FCPG announced "an all new record high for sales" of $17.4M in the quarter, a 22 percent increase over sales of $14.2M in the same quarter in 2011, according to a Nov. 19 press release.
Gross profit for Q3, 2012 increased to $1.8M, as compared to a gross profit of $1.0M in 2011, an increase of 73 percent, according to a Nov. 19 press release. FCPG's income from operations in Q3 2012 increased by 60% compared to the same period in 2011, largely due to the company's improved management of administrative costs as sales increased, the Nov. 19 press release stated.
'Significant strategic advantage'
FCPG "has a significant strategic advantage over most of its competitors as it has acquired a 'License of Internet Pharmacy Information Service' in Yunnan Province, enabling the organization to bypass municipal and county pharmaceutical distributors and provide products directly to its pharmacy, hospital and clinic customers," the company's Web site states.
FCPG's short term objective is to broaden its product line from 5,000 products to 30,000 and include significantly more Western medicines as well as traditional Chinese drugs and herbs, according to the company's Web site. By expanding its product line six-fold and offering products at a lower price than major competitors, FCPG expects to be able to become its customers' primary distributor, supplying more than 80% of the pharmaceutical products they require. In addition to selling significantly more products to its 4,700+ existing customers, FCPG plans an aggressive sales and campaign to attract 5,000 new primary customers, according to the company's Web site.
A booming market
The global market for pharmaceuticals is expected to grow nearly $300B over the next five years, reaching $1.1T in 2014. Global pharmaceutical sales growth of 4 to 6% is expected this year. In 2009, the market grew 7% to reach $837B. China's pharmaceutical market is expected to continue to grow at a 20+ percent pace annually, FCPG's Web site states.
China is arguably the most attractive emerging pharmaceutical market, according to FCPG's Web site. Through 2013, BMI forecasts a robust annual growth rate with annual per capita spending rising from $27.60 to $54.40. Spending as a percent of GDP is expected to increase from 0.97% to 1.16%. Key drivers of market expansion are the introduction of universal health insurance, a booming economy, more chronic diseases, and an aging population. By 2018, annual pharmaceutical sales will have reached a staggering $132.7B, FCPG's Web site states.
A bright future?
"Our business model is strong and takes advantage of the government's policy to lower the cost of drugs," said FCPG's CEO, Zhen Jiang Wang in the Nov. 19 press release. "With additional capital our expanded product line and inventory holdings can fuel tremendous growth. We continue to work diligently to satisfy our customer and shareholders."
Could 2013 be a breakout year for FCPG?
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