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Sinobiopharma

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Sinobiopharma Inc.
(OTCBB: SNBP)

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Financial Snapshot:

Business:
Biopharma
Exchange:
OTCBB
Symbol:
SNBP
Current Price (11/13/09):
$0.18

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Sinobiopharma Inc. (OTCBB: SNBP)

Detailed Quote: http://www.otcpicks.com/quotes/SNBP.php

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Company Overviewimg

Sinobiopharma Inc. is an emerging, fully integrated and highly innovative biotechnology company engaged in the research and development, manufacture and marketing of biopharmaceutical products in China, the world's fastest growing pharmaceutical market. Known as Dong Ying (Jiangsu) Pharmaceutical Co. Ltd. in China, the Company's current therapeutic focus is on anaesthesia-assisted agents and cardiovascular drugs. Founded in 2004, Sinobiopharma employs more than 80 people at its corporate office and production facility in Nantong, China.

Sinobiopharma launched its extremely low-cost, Chinese patented new formulation of the pre-surgical skeletal muscle relaxant Cisatracurium Besylate on May 30, 2006. By October 2007, it had captured 80% of the Chinese market and was in use in more than 200 hospitals.

Anesthetics Product Pipeline

Cisatracurium besylate

Nondepolarizing skeletal muscle relaxant; indicated for inpatients and outpatients as an adjunct to general anesthesia; facilitates tracheal intubation, and provides skeletal muscle relaxation during surgery or mechanical ventilation in the ICU; approved by the SFDA in 2006.

Rocuronium

Nondepolarizing neuromuscular blocking agent with a rapid to intermediate onset depending on dose and intermediate duration; indicated for inpatients and outpatients as an adjunct to general anesthesia to facilitate both rapid sequence and routine tracheal intubation and to provide skeletal muscle relaxation during surgery or mechanical ventilation.

Gantacurium chloride

New, investigational, non-depolarizing ultra-short acting neuromuscular blocker; used as an adjunct to general anesthesia to enable rapid intubation of patients undergoing surgery.

Cardiovascular Product Pipeline

Eplerenone

Blocker of aldosterone binding at the mineralocorticoid receptor;
indicated for congestive heart failure, post-myocardial infarction
and hypertension.

Perindopril

Non-sulfhydryl angiotensin-converting enzyme (ACE) inhibitor;
indicated for stable coronary artery disease hypertension.

Clevidipine butyrate

Dihydropyridine calcium channel blocker; indicated for the reduction of blood pressure when oral therapy is not feasible or desirable.

Revenue Forecast

Investment Highlights

  • Leadership of CEO, Dr. Lequn Lee Huang a former manager of the Bayer Co., one of the world's largest pharmaceutical companies
  • Diverse portfolio of marketed products and robust product pipeline
  • Proven track record of product development and commercialization
  • Strong financial management with CFO formerly of JP Morgan Chase and Smith Kline Beecham
  • Patented technology for fast, low-cost synthesis of active pharmaceutical ingredients (API) enhances capability for rapid development of new drugs
  • Proven R&D partners for collaborative drug discovery and established relationships with multinationals for outsourced drug development
  • Nationwide sales and distribution network
  • Patented technology for rapid low cost drug discovery
  • Experienced management with international track record
  • Flagship drug a best seller in China
  • Robust product pipeline and increasingly diversified portfolio

R&D Strength

Sinobiopharma conducts research and development through Nanjing Su Ji Biotech Research Development Center and in cooperation with the Medicinal Chemistry Research Institute, Nanjing University. Both are located at Nanjing University in Nanjing. The city has emerged as one of China major biotech research and development centres. Sinobiopharma's R&D team of 18 specialists (out of a total staff of 80) are highly experienced research personnel and medical professionals. They have given the Company a strong intellectual property base with six patents (see table below), primarily in the area of new methods for synthesizing compounds at lower cost, more rapidly and/or with greater ease of use. This strong R&D capacity, coupled with Sinobiopharma's established links with multinational pharmaceutical companies makes the Company an attractive partner as a contract research organization (CRO).

Growth Strategy

Sinobiopharma has a clearly defined strategy to drive short, middle and long term growth. All drug development will leverage the Company's patented technology for fast, low-cost drug synthesis and new technology for formulation.

In the Short Term, the focus is launching drugs new to the Chinese market. The Company's patented synthesis method allows the company to develop new active pharmaceutical ingredients (API) at lower cost and new formulations that generally offer greater convenience in application and efficacy with fewer side effects.

The Middle Term will focus on exporting Active Pharmaceutical Ingredients and Drug Reformulations developed with the Company's patented technology for the global market.

The Long Term will focus on applying the technology platform to identifying candidate compounds from Traditional Chinese Medicines. Such compounds have proven their safety and efficacy over thousands of years of use. Sinobiopharma will accelerate their discovery, synthesis and formulation for pharmaceutical applications.

  • Leverage patented technology for fast, low-cost drug synthesis and new drug formulation
  • Short-term focus on launching “Me-too/Me-better” drugs new to the Chinese market
  • Medium-term focus on exporting API’s and drug reformulations
  • Long-term focus on applying the technology platform to identify candidate compounds from Traditional Chinese Medicines, “Me-new”
  • Future Chinese “Teva” (Israel)

Competitive Advantages

  • Expanding in fast-growing Chinese healthcare market
  • Proprietary technology enables low cost, high quality API and innovative formulations for unstable drugs
  • Experience with Chinese FDA expedites fast approval of first-to-market (FTM) drugs
  • FTM drugs get higher price points and exclusivity
  • Integrated marketing and distribution support higher profit
  • Government support includes no-interest loan, tax advantages for five years, and high-tech cooperation benefit

Sales and Distribution

Nationwide Distribution Network

Sinobiopharma has an established a nationwide sales and marketing network that distributes its products in 30 provinces and key major cities throughout China. The Company intends to expand its sales and marketing infrastructure to meet China's rapidly growing demand for safer, lower-cost, higher-efficacy drugs.

Chinese Pharmaceutical Market Growing at Record Levels

Sinobiopharma is expanding in one of the world's largest and fastest growing markets. The Chinese pharmaceutical market is among the world's largest, ranking ninth in both terms of volume and dollar value, at $9.8 billion in 2005. (MIDAS Sales Data, IMS Health, March 2006).

It is also one of the world's fastest growing. From 2001 to 2005 the Chinese pharmaceutical industry's compound annual growth rate (CAGR) was 21%, almost triple the 8%, the global average. The industry is expected to continue this rapid growth, with IMS Health projecting China to have the world's fifth largest market by 2010.

SNBP has been drifting slowly lower the last few weeks but the trading volume has picked up the last week and both the MACD and Stochastics indicators look to be oversold and have turned up the last few trading sessions. We expect more company news coming out this week and we expect this might be great timing to pick up a few shares of SNBP.

Do you homework fast on SNBP and watch for company news out this week and a futher increase in trading activity.

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Recent SNBP News:

November 16 - Sinobiopharma has Production Rights to 23 Drugs Listed in China's National Essential Drugs List

All Drugs on List to be Covered by Basic Government Insurance That Will Cover 90 Percent of China's Population

Sinobiopharma, Inc. (OTCBB: SNBP) is pleased to announce that 23 generic drugs for which the Company has production rights are listed in China's National Essential Drugs List, which covers pharmaceuticals used to treat up to 80 percent of the most common diseases in China.

According to the Chinese government's healthcare reform plan, 90 percent of China's citizens will be covered by a universal healthcare system by the year 2010. Under the plan, drugs on the National Essential Drugs List (the "List") will be purchased by various levels of government first, then distributed to medical facilities. All drugs on the List will be covered by the basic insurance plan supported by the government. The plan also calls for medical facilities to be upgraded, which includes the construction of 30,000 new hospitals, clinics and care centers across China.

"While Sinobiopharma is primarily focused on the development, production and distribution of "me-too/me-better" branded new or generic drugs with high margins, the inclusion of 23 generic drugs for which the Company owns production rights on the National Essential Drugs List, will enable us to increase both sales and margins," said Dr. Lequn Lee Huang, Sinobiopharma President and CEO. "We expect that this new advantage in the marketplace will also enable the Company to enhance our ability to improve return on investment for shareholders in 2010."

About Sinobiopharma

Sinobiopharma, Inc. is a fully integrated and highly innovative specialty biopharmaceutical company engaged in the research and development, manufacture and marketing of biopharmaceutical products in China, the world's fastest growing pharmaceutical market. Known as Dong Ying (Jiangsu) Pharmaceutical Co., Ltd. in China, the Company's current therapeutic focus is on anesthesia-assisted agents and cardiovascular drugs.


October 21 - Sinobiopharma Presents Highlights from Unaudited First Quarter Financial Results for the 3 Month Period Ended August 31, 2009

Company Posts First Net Profitable Quarter Since the Second Quarter 2008

Sinobiopharma, Inc. (OTCBB: SNBP) is pleased to present the following highlights from the unaudited financial results for the first quarter ended August 31, 2009.

The highlights feature record revenues and increases in both gross margin and net profit, and a Company milestone of posting its first overall net profitable quarter since the second quarter 2008, according to Dr. Lequn Lee Huang, Sinobiopharma President and CEO.

  • Revenue increased to US $1,293,764 for the three months ended August 31, 2009 from US $931,203 in the corresponding period ended August 31, 2008, an increase of 39%.
  • Gross profit increased 57% to US $962,923, reflecting a 74% gross margin for the three months ended August 31, 2009. This compares to US $612,428, and a 66% gross margin, reported for the corresponding period ended August 31, 2008.
  • Net profit of the Company's wholly owned operating subsidiary, Dong Ying (Jiangsu) Pharmaceutical Co., Ltd., increased to US $561,292, representing 43% of sales revenue, for the three months ended August 31, 2009 from US $218,031 in the corresponding period ended August 31, 2008, a year-over-year increase of more than 154%.
  • With a net profit overall of US $237,167 for the three months ended August 31, 2009, the quarter marks the first time Sinobiopharma has moved from loss to net profitability. During the quarter, the main expense affecting the net result was a stock-based compensation charge of US $324,125. The charge has been fully amortized in this quarter, reflecting the vesting of stock options granted by the Company.
  • Growth in sales and the improvement in gross margin were both due to continued strong demand for of Cisatracurium Besylate, which contributed US $1,240,405, or 96% of revenue for the quarter, up from $865,407 for the first quarter in 2008.

"Sinobiopharma has reached two important milestones," said Dr. Huang. "First, its wholly owned operating subsidiary, Dong Ying (Jiangsu) has recorded more than one half million USD net income in a quarter; and second, the Company has posted an overall net profitable result in its consolidated financial statement for the first time since the second quarter 2008."

"The increases in sales revenue, as well as those in gross and net profit, are clear indicators that more hospitals are choosing our products over those of our competitors, that our continuing efforts to control costs are succeeding, and that our sales and marketing efforts are bearing fruit. We will continue executing on our plan to improve production efficiencies while expanding sales and marketing to ensure that more patients benefit from our products," said Dr. Huang.

About Sinobiopharma

Sinobiopharma, Inc. is a fully integrated and highly innovative specialty biopharmaceutical company engaged in the research and development, manufacture and marketing of biopharmaceutical products in China, the world's fastest growing pharmaceutical market. Known as Dong Ying (Jiangsu) Pharmaceutical Co., Ltd. in China, the Company's current therapeutic focus is on anesthesia-assisted agents and cardiovascular drugs.


October 8- Chinese Food and Drug Administration Approves Gabexate Mesylate as Pharmaceutical Raw Material

Sinobiopharma, Inc. (OTCBB: SNBP) is pleased to announce that the Company received a certificate for the use of Gabexate mesylate as a pharmaceutical raw material (Certificate #2009S01805) from the Chinese State Food and Drug Administration ("SFDA").

Gabexate Mesylate is a serine proteinase inhibitor used therapeutically in the treatment of pancreatitis, disseminated intravascular coagulation (DIC), and as a regional anticoagulant for hemodialysis. The drug inhibits the hydrolytic effects of thrombin, plasmin, and kallikrein, but not of chymotrypsin and aprotinin.

The Company is now awaiting GMP certification to manufacture Gabexate mesylate.

About Sinobiopharma

Sinobiopharma, Inc. is a fully integrated and highly innovative specialty biopharmaceutical company engaged in the research and development, manufacture and marketing of biopharmaceutical products in China, the world's fastest growing pharmaceutical market. Known as Dong Ying (Jiangsu) Pharmaceutical Co., Ltd. in China, the Company's current therapeutic focus is on anesthesia-assisted agents and cardiovascular drugs.


Sinobiopharma Inc.

2 Huangpu Road,
Nanjing,Jiangsu Province 210000,
People's Republic of China
Tel:86.25.8622.8290
Fax:86.25.8320.2848

Website:
www.sinobiopharma.com

 

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Disclosure: OTCPicks.com has been compensated three thousand dollars by a third party (WFWS Consulting) for SNBP advertising and promotional services.

 

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