China Pharma Holdings has posted a 33% loss in revenue to $54.5m for fiscal year 2012 owing to continued pricing pressures on pharmaceutical products in the country.
China Pharma CEO Zhilin Li said the healthcare reform instituted by the Chinese government since 2009 has produced "encouraging results" in improving the standards of healthcare in the country, but added that changes produced by the reform have dented company finances.
"The economic and pharmaceutical challenges and uncertainties, raising cost and price cutting had negatively impacted our business in 2012, which led to the overall decline in sales of our products." said Li.
The most significant revenue decrease was caused by a drop in sales in China Pharma’s CNS cerebral and cardio vascular product portfolio, which generated $15.2m in sales revenue, compared to $25.8m a year ago.
Sales of the anti-viro / infection and respiratory category decreased by $7.5m to $24.5m in 2012, compared to $32.0m in 2011.
China Pharma’s net income was $4.6m in 2012, compared to $19.3m in 2011, a decrease of 76%.
The company said gross profit for the year ended 31 December dropped by 51% to $14m, attributed to a continued increase of the purchase price of raw materials.
"Going forward we expect to see continued pricing pressure on most products, but new products such as Candesartan and Rosuvastatin could help to support overall gross margin once they are launched," China Pharma said in a statement.
The State Food and Drug Authority approved Candesartan in November 2012 for the treatment of hypertension.
The company has completed clinical trials for Rosuvastatin, a generic form of AstraZeneca’s cholesterol drug Crestor, which is in the production approval process.