Shares of China Pharma Holdings Inc. (NYSE: CPHI) closed more than 37% higher Monday after the company posted narrowed net loss for the full year.
The Haikou-based company reported its revenue was $10.9 million, same as in 2019. The company attributed the results to overseas sales of Covid-19 testers it completed in the second quarter of 2020 which offset the sales decrease of its other products.
Net loss for 2020 was $2.9 million, or 7 cents per diluted share, compared with a net loss of $20.7 million for the year earlier. In 2019, the company recognized the impairment of long-term assets of $17 million for which no comparable expense existed for fiscal 2020.
"The outbreak of COVID-19 early in this year has created a substantial, negative impact on sales of pharmaceutical companies, including ours. Many people try to avoid going to hospitals for fear of cross-contamination or potential infection," said Zhilin Li, China Pharma's chairman and CEO.
"We will continue to work on improving human health. We aim to leverage our expertise in the PRC for the development, manufacture and commercialization of pharmaceutical and comprehensive healthcare products for the benefit of human health."
Founded in 1993, China Pharma is a specialty pharmaceutical company that develops, manufactures, and markets a diversified portfolio of products, focusing on conditions with high incidence and high mortality rates in China.
Shares of China Pharma closed at $1.14, up 37% in New York.