Shares of Tianyin Pharmaceutical Co. (TPI), a manufacturer and supplier of modernized traditional Chinese medicines in China, have appreciated nearly 14% in the last four days. The stock is currently trading around $3.21, up 1%. The company was added to the Russell Microcap Index on June 26, a move that will help get the stock a higher profile among investors.
Based in Chengdu, Sichuan province in China, Tianyin was established in 1994 and made its debut as a public company, following a reverse merger with VisCorp, last January. Tianyin moved from the Over-The-Counter Bulletin Board and became listed on the American Stock Exchange on October 1, 2008.
With 39 modernized traditional Chinese medicines and pharmaceuticals, Tianyin's product portfolio is quite comprehensive, spanning the fields of internal medicines, gynecology, hepatology, urology, neurology, dermatology, pediatrics, among others.
According to the company, 22 of its current products are listed in the National Medicine Catalog of the National Medical Insurance Program, a government-administered medical insurance and reimbursement program. Approximately half of the company's products are prescription medicines while the remaining are intended for the over-the-counter sales. What's more, the company has a rich pipeline of over 40 products pending approvals from the Chinese State Food and Drug Administration or SFDA of which, 17 drug candidates are currently under regulatory review.
With the Chinese government committed to invest about $123 billion in the healthcare sector over the next three years and increase the overall investment in the Traditional Chinese Medicine sector, companies like Tianyin are set to benefit from this enhanced government support.
Tianyin won regulatory approval from the SFDA for ten of its new products during the first nine months of fiscal 2009 (from June 2008 through March 2009), thanks to the government's implementation of favorable policies to accelerate the development of new drugs. Tianyin's new production facility in Chengdu, whose construction was completed in May, is expected to triple the production capacity of solid dosage drugs, such as Azithromycin Dispersible tablets, Mycophenolate Mofetil capsules, and Dantong capsules.
The company's fiscal year ends on June 30th of every year. For the third-quarter ended March 31, 2009, Tianyin's net income rose nearly 49% to $1.89 million from $1.3 million in the comparable quarter a year before. On a per share basis, earnings for the third-quarter of fiscal 2009 were $0.10, up from $0.05 reported in the third quarter of fiscal 2008. The third-quarter earnings of fiscal 2009 were based on 16 million shares, while the year-ago quarterly earnings were based on 24.5 million shares. The divergence in the share account relates to accounting for the conversion of certain preferred shares into common shares.
Revenue for the third quarter of 2009 increased 7.4% to about $9.9 million compared to $9.2 million in the year-ago quarter.
As on March 31, 2009, Tianyin had total cash of $10.7 million and total debt of $1.40 million. Backed by a strong balance sheet and prudent management of capital structure, the company instituted a cash dividend of $0.025 to be paid to shareholders of record as of July 31, 2009, and also has plans to increase the dividend in the future.
For the fourth quarter, which ended June 30, 2009, the results of which are slated to be released next month, Tianyin foresees revenue of $12.4 million and net income of $1.8 million. For fiscal 2009, the company expects revenue of $42 million and net income of $7.5 million, representing 25% and 26% year over year growth respectively. According to the company, its increased ad spending has generated strong brand awareness, creating further demand for its products.
Looking further ahead to fiscal year 2010 which ends June 30, 2010, Tianyin expects to earn $10.5 million on revenue exceeding $59 million, representing 42% and 40% growth, respectively compared to fiscal 2009 forecasts.
A rich portfolio, strong pipeline, various strategic initiatives and add to them China's favorable healthcare reforms -- Tianyin looks set to continue its growth trajectory. Will the stock mirror the growth prospects? Stay tuned...
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.