$0.84

-0.06 (-6.67%)

2/9/2010 11:44 AM

China Aoxing Pharmaceutical Co., Inc. (CAXG.OB)

CAPS Rating:

A vertically integrated pharmaceutical company engaged in research, development, manufacturing and marketing of a variety of narcotics and pain management pharmaceutical products in generic and innovative formulations.

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Ticker Not Ratable

CAXG.OB doesn't currently meet the $100M market cap / $1.50 stock price minimum. (Learn More)

What the Community Thinks

Total Members

7 Outperforms

50 Underperforms

All-Stars

0 Outperforms

30 Underperforms

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Ticker Tags

Micro Cap (4701), Growth (1902), Pharmaceuticals (149), Healthcare (711), Defensive (1457), Aggressive Growth (860)
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China Aoxing Pharmaceutical Co., Inc. At A Glance

Current Price:	$0.84
Last Trade Time:	2/9/2010 11:44 AM
Open:	$0.00
Previous Close:	$0.90
Daily Range:	$0.84 - $0.90
52-Week Range:	$0.20 - $1.95
Volume:	13,400
Market Cap:	$77.00M
P/E Ratio:	6.63
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CAXG.OB VS S&P 500 (SPY)

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1 China Aoxing Pharmaceutical Co., Inc. (CAXG.OB)

Avatar tcampbellla (90.80) Submitted: 1/01/08 1:39 PM

Wow! Nobody likes this.

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Recs 0 (CAXG.OB) cashsage (32.22) Submitted: 8/25/09 11:54 AM : Start Price: $1.60 CAXG.OB Score: 51.34 CAXG.OB has a too high valuation compared to its sales potential. It is also loss making. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 1 (CAXG.OB) tcampbellla (90.80) Submitted: 1/01/08 1:39 PM : Start Price: $2.95 CAXG.OB Score: 47.95 Wow! Nobody likes this. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (CAXG.OB) tsperbeck (98.84) Submitted: 12/21/07 2:32 PM : Start Price: $2.75 CAXG.OB Score: 44.89 Future does not look promising. TMFBent pick. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (CAXG.OB) Stasi (< 20) Submitted: 11/30/07 6:43 PM : Start Price: $2.60 CAXG.OB Score: -43.49 China Aoxing is part of a government-regulated oligopoly that manufactures opioid & other controlled substance pain relief medication for the domestic Chinese market. They are a pharmaceutical company but bear none of the usual R&D risk since their strategy is to develop & produce generic versions of known efficacious drugs for sale into the Chinese market. Most of their clinical trials consist of bioequivalence & pharmacokinetics only. For most of their drugs, they are the only or one of the only two licensed manufacturer in China. Their market is vast & underserved. China & India are 80% of the world population but use only 6% of world morphine, for example. The US uses 50% of world morphine. It's not reasonable to expect that level of penetration into Asian markets (and anyhow CAXG doesn't produce morphine) but that is an example of the scale of gap between western medicine pain management practices & Chinese practices. Prior to 2000, the total market for narcotics in China was 1% of the US market, but it has grown at 30% CAGR to $300MM currently. There are over 20MM cancer patients in China, so there is a clear & present need for pain management. Their 1st two drugs were approved & went into commercial production in 2007. These drugs have estimated market potential of 45MM. CAXG have two drugs with estimated market potential of 35MM due for approval in 4q07. Oxycodone, with estimated market potential of 130MM is due for commercialization in 2008. As commercialization of their 1st two drugs has ramped, revenue has responded: 1h07 rev: 341,000 3q07 rev: 562,000 4q07 rev: 1,035,000 1q08 rev: 1,380,294 Just the near-term product pipeline for CAXG is very strong. Their products that are commercially available have only just started producing revenue. Here is a quick summary: Product Market Potential Status Comment Naloxone HCI $50MM Launched One of three manufacturers approved in China Shuanghuanlian $15MM Launched Pholcodine $20MM 4q07 One of two approved manufacturers in China Paracetamal $15MM 4q07 Tilidine $50MM YE08 Only approved manufacturer in China The efficacy of these drugs is not in question. Most are commonly available in the west. All CAXG has to do is prove bioequivalence of their product & approval comes swiftly. Development risk is pretty much nil. Here are some links on the web is you want to know more about these products: Naloxone, brand name Narcan: http://en.wikipedia.org/wiki/Naloxone http://biotel.ws/protocolsHTML/Protocols2004/Pharmacology/NaloxoneHCL.asp Pholcodine: http://en.wikipedia.org/wiki/Pholcodine http://admin.safescript.com/drugcgic.cgi/INGR?101720321+0 Paracetamal, actually paracetamol & oxycodone, brand name Tylox: http://www.drugs.com/tylox.html http://en.wikipedia.org/wiki/Tylox Tilidine, brand name Valeron: http://en.wikipedia.org/wiki/Tilidine http://www.intekom.com/pharm/pfizer/valoron.html Making the assumption that CAXG achieves its share of TAM where they are one of only a few approved manufacturers & achieves only 5% of TAM in all other cases their product portfolio adds up to about $80MM annual revenue. Meaning 10MM to 12MM consolidated net income. As of 15nov07 the company had about 40.6MM shares outstanding. According to Yahoo!, drug manufacturers as a group have a PE of a little over 16x. Wuxi Pharma, another PRC drug company, trades at a +70x multiple. To summarize, CAXG has a wide gov't regulated moat & produces known efficacious drugs for a vast & underserved market. Their near term pipeline is compelling. They bear virtually no development risk & their approval process is extremely quick & low cost. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 2 (CAXG.OB) SaintCroix (95.90) Submitted: 11/25/07 2:56 PM : Start Price: $3.45 CAXG.OB Score: 54.94 Dubious looking New Jersey company that has no revenues itself. Instead it has a 65% ownership in a subsidiary attempting to sell generic pain drugs in China. One guy is the Chairman, CEO, President, Chief Financial Officer and Chief Accounting Officer. This guy owns 14 million shares of the company. He used to have 8 million shares, but he decided he was doing such a good job, he gave himself another 6 million. Plus the Chairman, CEO, President, CFO and CAO guy also owns the remaining 35% of the China subsidiary. According to the quarterly report, the company (a.k.a. the guy) is trying to raise funds in order to buy the remaining 35% of the shares from, uh, himself. Company defaulted on $3 million dollars of debt in December. So I think their market capitalization of $140 million might be a little optimistic. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out.
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