CPHI Reports Declining Revenue Amid Tightened Regulations in Pharma Market
The Chinese pharma company's stock dropped 2 percent after it reported weak sales in the second quarter.
The stock in China Pharma Holding Inc. (NYSE American: CPHI) was trading down 2 percent intraday Thursday, at 25 cents per share, after it revealed in its latest report that its revenue has declined.
The Haikou-based company said in a statement today that its revenue decreased 19 percent to $2.6 million in the quarter ended June. Net loss narrowed to $800,000, or 2 cents per share, CPHI said, compared with $1 million, or 2 cents per share, in the corresponding quarter last year.
CPHI makes pharmaceuticals and prescription products, including powder and liquid injectables, tablets, capsules, oral solutions and granules.
"We experienced negative impacts on our sales from the strict implementation of the government policy of controlling the proportion of the spending on drugs to the patients' total expenditures in hospitals," Zhilin Li, CPHI's chairman and chief executive officer, said in a statement on Thursday.
Li continued, "In addition, we are experiencing sustained pressure from the more stringent requirements of drug registration standards, consistency evaluations and challenging environment in our industry in this period."
Looking ahead, the company said it plans to adapt to the challenging environment and market conditions and looks to launch a nutrition line of products.