AOB’s OTCs flat after Rx switch
This article was originally published in The Tan Sheet
Executive Summary
Revenues from American Oriental Bioengineering's OTC business were essentially flat at $18.5 million during its fiscal 2009 first quarter, reflecting the switch in China of Jinji Capsule botanical products from OTC to Rx status, the firm says during a May 11 earnings call. The company's OTC business would have grown 16 percent in the quarter ended March 31 if it included Jinji Capsule botanicals, AOB says, noting it switched Jinji Capsules, intended to treat annexitis and pelvic inflammation, to increase sales to China's health care and hospital system. Shenzhen, China- and New York-based AOB reported first-quarter revenue increased 29 percent to $46.1 million, including $8.9 million in net nutraceutical sales. The firm attributed the increase to "continued demand for peptide products and an expanded distribution network," though AOB is deemphasizing nutraceuticals in favor of pharmaceuticals (1"The Tan Sheet" March 16, 2009, p. 13)