Drug and nutritional product company American Oriental Bioengineering Inc. said Monday its profit climbed 49 percent in the fourth quarter due to reduced acquisition costs.
The company said it earned $11.7 million, or 14 cents per share. That's up from $7.8 million, or 10 cents per share, a year ago — a result that included $12.3 million in research and development charges related to the purchase of GuangXi HuiKe. Revenue grew 4 percent to $100 million from $96.3 million.
Analysts expected a larger profit of 16 cents per share and $103.4 million in revenue, according to a survey by Thomson Reuters.
In morning trading, American Oriental Bioengineering shares lost 47 cents, or 10 percent, to $4.10.
Pharmaceutical revenue rose 5 percent to $85 million due to greater sales of prescription drugs, including its women's health product Jinji Capsule and its Boke nasal spray. Prescription drug revenue jumped 56 percent to $44.6 million, while revenue from over-the-counter products fell 23 percent to $40.4 million.
American Oriental Bioengineering said nutritional product revenue grew 19 percent to $11.4 million. It also reported $3.9 million in revenue from its Nuo Hua distribution business.
For the full year, the company's profit skidded 12 percent, to $41.4 million, or 53 cents per share, from $47.1 million, or 61 cents per share. Revenue increased 12 percent to $296.2 million from $264.6 million.