In April 2007, Benda Pharmaceutical, Inc. acquired Shenzhen SiBiono Genetech Corp. ("SiBiono"), creator of Gendecine(R), the world's first commercialized gene therapy medicine for the treatment of cancer.
Benda's acquisition of SiBiono anchors Benda squarely in a global anti-cancer drug market that, in 2005, surpassed $2.6 billion in China alone. SiBiono's Gendicine has already been internationally heralded by TIME Magazine, the Wall Street Journal Asia and Forbes Asia, to name but a few. To date, hundreds of patients from over 30 countries have descended upon SiBiono to receive this breakthrough cancer treatment.
Benda stands to benefit from domestic pharmaceutical spending that is expected to increase from $32 billion in 2004 to $323 billion in 2025E, or at a compound annual growth rate of 11.6%. By 2010, the Chinese pharmaceutical market will be the 5th largest in the world.
The Chinese currently spend about $12 per capita on pharmaceuticals, as compared to $340 per capita in the U.S. As the Chinese population ages and become wealthier, the already large Chinese pharmaceutical market is poised for continued explosive growth.
In addition to Gendicine(R), Benda manufactures and markets a core line of 20+ high margin products, comprised of:
- Active pharmaceutical ingredients (APIs), substances used in capsules, tablets and fluids that are pharmaceutically active;
- Bulk chemicals - raw materials used to make APIs;
- Traditional Chinese medicines, developed using 2,000 year old practical knowledge of natural ingredients;
- Conventional medicines, similar to Western medicines;
- And Gendicine(R), the world's first commercialized gene therapy cancer treatment.
Gendicine(R) alone is expected to generate $12.0 million in revenue in 2007, increasing to $20.8 million in 2008.
Brenda expects rapid net income growth of $7.3 MM in 2007 to $17.8 MM in 2008, a 144% increase, and 2007 anticipated revenue of $40.7 million is expected to jump to $76.2 million in 2008.
Benda is a pure play on both explosive Chinese pharmaceutical spending growth and the global search for a cancer cure.
