3SBio Inc., a Chinese biotechnology company, develops, manufactures, and sells genetically-engineered biopharmaceutical products primarily in China. The Company's protein-based products target the medical needs of nephrology, oncology, cancer, arthritis and infectious diseases.3SBio revenues in the second quarter ended June 30, 2008 increased 38.4% to $8.7 million from $6.3 million in the second quarter 2007. Operating income for the second quarter 2008 increased 10.5% to $2.2 million from $1.99 million in the second quarter 2007. Management is raising its revenue guidance for the full year from $30-$32 million to $34-$35 million. Revenues for the full year 2007 increased 51% to $24.7 million from $16.4 million for the full year 2006. Net income for the full year 2007 increased 186% to $11.2 million from $3.9 million in 2006.
In May 2008, 3SBio, Inc. (NASDAQ: SSRX) and AMG Pharmaceuticals, Inc. (NASDAQ: AMG) announced the signing of an agreement to develop and sell ferumoxytol, an intravenous iron replacement therapeutic agent which will be used to treat iron defeciency anemia in chronic kidney disease patients. AMG Pharmaceuticals is a global U.S. based biopharmaceutical company involved in the development and sale of therapeutic iron compounds to treat anemia.
3SBio has three drugs in phase III trials: EPIAO (for anemia associated with renal failure and anemia associated with cancer patients receiving chemotherapy), NuLeusin (for the treatment of late stage renal cancer patients), and TPIAO (for the treatment of idiopathic thrombocytopenia). TPIAO was also initiated in a new Phase IV study to show the effectiveness of TPIAO on specific tumors and chemotherapy treatments known to cause Thrombocytopenia.
3SBio Inc. stock closed at $9.80 on August 27, 2008, down 57% from its fifty-two week high of $22.75. In trading this morning the shares were in the $9.59-$9.76 range. Despite being in the fast growing biotech industry the stock trades at only 17 times trailing earnings. 3SBio has had meteoric revenues growth. Biotech companies eventually are valued on the revenues and earnings from their future pipeline of biopharmaceutical products. 3SBio is a technologically innovative company in the world's largest market with a promising rich pipeline of products. Investing in 3SBio should provide some welcome relief from this painful turbulent market.
References:
http://bbs.3sbio.com/en/News/ShowInfo_nnn11.aspx?ID=71
Company 2008 Second Quarter Earnings Release
http://finance.yahoo.com/q/is?s=SSRX&annual
Company 2007 Income Statement
http://bbs.3sbio.com/en/News/InfoList3.aspx?CategoryID=8
AMAG Phamaceuticals & 3SBio Announce Strategic Partnership to Develop and Commercialize Ferumoxytol in China
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