Aoxing Pharmaceutical Company (NYSE : AXN)
Aoxing Pharmaceutical Company (AXN), a specialty pharmaceutical company yesterday announced positive fiscal 2015 financial results. The company announced that it doubled its revenues from last year and for the first time since the company started in 2002 it reported a profitable year.
Aoxing Pharmaceutical Company Earnings and Outlook
“The company recorded net income from operations in fiscal 2015 of $8,695,657 versus a loss of $3,334,879 in the prior year. After accounting for interest expense of $5,768,094 and a tax benefit of $2,704,369, Aoxing had net income in fiscal 2015 of $5,818,473, or $.09 per share. This compares to a net loss of $8,634,380, or $(.16) per share, in fiscal 2014.” Market Wired
Aoxing Pharmaceutical Company, Inc. CEO Comments
Mr. Zhenjiang Yue, Chairman and CEO of Aoxing Pharma, said,
“We are proud to have achieved strong results in fiscal 2015 — our first profitable year — and believe fiscal 2016 will also be a very strong year. As reported in September 2015, the company’s lead product, Zhongtongan, was included in the government essential drug procurement lists for Hebei, Jiangsu, Shanxi, and Hubei Provinces. This event,” said Mr. Yue, “Along with Aoxing’s plans to obtain additional provincial essential drug procurement listings for the product and to collaborate with new distribution companies for Zhongtongan, should result in substantial increases in sales of the product in fiscal 2016. Also in September, Aoxing entered into an agreement with Shijiazhuang Zhongtian Medical Company, a pharmaceutical products distributor in China, that will enable our Hebei Aoxing subsidiary to initiate production of 84 over-the-counter pill medicines it acquired in 2008. This agreement is expected to yield about $5 million in revenue in fiscal 2016.” “Third,” noted Mr. Yue, “the company’s Tilidine HCL pain fighting tablets, approved for sale in June 2015 by the China FDA (CFDA) and scheduled for market introduction in the fourth calendar quarter of 2015, should realize substantial market growth by end of June 2016, and be granted a minimum of eight-year market exclusivity protection within China.” Market Wired
AXN Technical Analysis
AXN gapped up in price yesterday to $1.79, up from the prior day’s close of $1.56 which is a 15% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on July 28th when the stock closed at $1.80. Taking a further look back on the chart we can see the stock has been on a downward trend ever since it hit its 52 week high of $3.48 on June 9th. More recently, the stock has been in consolidation mode trading in between $1.40 and $1.75 dating back to the end of July. It will be interesting to see if this gap up can break through the consolidation period and use the $1.75 as a new support level. The stock has a relatively small float of 39.06 million shares and is trading on over 15 times the normal daily trading volume. Both of these factors make the stock a prime candidate for the gap and go strategy. The stock did reach pre market highs of $2.02 meaning that it gave back $0.23 at the open equivalent to 11%. For trading purposes, my entry point would have been $1.80 looking for a run through $2. My stop loss would have been $1.75 fearing anything below that and the stock would start to fill in the gap up.
Company Profile
Aoxing Pharmaceutical Company, Inc., a specialty pharmaceutical company, researches, develops, manufactures, and distributes various narcotic, pain-management, and addiction treatment pharmaceutical products primarily in the Peoples Republic of China. The companys principal products comprise Zhongtongan, a capsule of herbal extraction for the indication of oral and dental pain; and Bismuth Potassium Citrate, an oral solution for the treatment of chronic gastritis and stomachache due to excessive stomach acid. Its principal products under development include Tilidine hydrochloride, which is under production preparation and is intended for the treatment of severe pain and chronic cancer-related pain; Codeine Phosphate Compound oral solution that is under review phase and is intended for the treatment of cold and flu; Buprenorphine/Naloxone, which is intended for the treatment of opioid dependence; and Oxycodone and Acetaminophen tablets and compound capsules, which are clinical development to cure acute and chronic pain. The company was formerly known as China Aoxing Pharmaceutical Company, Inc. and changed its name to Aoxing Pharmaceutical Company, Inc. in March 2010. Aoxing Pharmaceutical Company, Inc. was founded in 1655 and is headquartered in Shijiazhuang, China. Yahoo Finance
