|Biostar Pharmaceuticals' shares up 23% as Q4 profit triples|
|By Phil Cheng - ProactiveInvestors.com|
|Friday, 25 March 2011 14:51|
Biostar Pharmaceuticals (NASDAQ:BSPM) said Friday its fourth quarter profit more than tripled due to strong sales of its flagship hepatitis B drug, prompting a huge spike in the company's share price.
Revenue rose 66% to about $28.2 million, exceeding analyst estimates of $27.6 million.
The increase in revenue was helped by 57% sales growth from the company's Xin Aoxing hepatitis B drug, which accounted for two-thirds of the period’s revenue.
Sales of the company’s Gan Wang cold treatment drug also improved by 37% to $2.2 million.
Biostar continued to expand its distribution channel in Chinese rural communities during the quarter, with its products now being sold at 10,000 locations. The company expects that number to grow to 13,000 in 2011, it said.
For the full year, earnings rose 66% to $17.4 million, or 63 cents per diluted share, from $10.5 million, or 32 cents per diluted share, in 2009. Revenues soared 50% year-over-year to $80.2 million.
Since the announcement, the company's shares jumped nearly 23% to trade at $2.72 as of 12:22 pm EST.
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