On May 21, Benda Pharma (BPMA.OB) reported revenue of $3 million for Q1 of 2007, a decrease of 17% from the year-earlier period. Benda blamed the decrease on a temporary closing of its bulk chemical plant, a closing undertaken at the behest of the Chinese government, which mandated a cleanup of the wastewater of the plant. The plant is scheduled to be back online in August of this year.
Net income dropped to $0.4 million for the quarter, a decline of 51%. Besides the plant closing, Benda said it encountered additional expenses associated with being a public company. Benda has 96.3 million shares outstanding and, at its current price of $1.70 per share, it has a market capitalization of $164 million.
Benda is involved in making western and Traditional Chinese Medications, and it manufactures active pharmaceutical ingredients.
In April of 2007, Benda bought a 57.57% ownership in Shenzhen SiBiona, which produces the cancer drug Gendicine, the first gene therapy medication for cancer available anywhere in the world. In 2004, Gendicine was approved by Chinese officials for use against head and neck cancer, which is also known as squamous cell cancer. The drug is injected once per week for eight weeks. In the Chinese trials, it achieved a complete remission in 64% of the cases and a partial remission in 32% of the patients. Gendicine was originally priced at $362 per injection.
To buy the stake in SiBiono, Benda paid $7.7 million and gave SiBiono 2.1 million shares of Benda stock in return for financial consulting services. Benda also guaranteed that its shares would be worth $3.60 per share within three months after the expiration of the 12-month restriction on selling the shares.
Benda operates three plants in the Hubei Province of China: Benda Ebei, which produces conventional medicines and Traditional Chinese Medicines; Jiangling Benda, which produces active pharmaceutical; and Yidu Benda, which produces bulk chemicals.
Pope Investments LLC owns 22,337,998 shares accounting for 21.24% of shares outstanding!!
As of August 19, 2009: