China Biologic Products, Inc. (NASDAQ:CBPO) Q3 2020 Earnings Conference Call - Final Transcript

Nov 25, 2020 • 07:30 pm ET

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China Biologic Products, Inc. (NASDAQ:CBPO) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the China Biologic Products Third Quarter 2020 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Mr. Philip Lisio. Please go ahead.

Executive
Philip Lisio

Thank you, operator. Hello everyone and thank you for joining us on today's call. China Biologic announced its third quarter 2020 financial results on November 24th, 2020, after the market closed. An earnings release is available on the Company's website. Today, you will hear from China Biologic's Chairman and CEO, Mr. Joseph Chow, who will start off the call with a review of the Company's basic operating results and report recent developments. He will be followed by Mr. Ming Yin, Senior Vice President who will give a detailed account of the Company's financial results. China Biologic's CFO, Mr. Ming Yang, will be available during the Q&A session following the prepared remarks.

Before we proceed, I would like to remind you of our safe harbor statement. Our conference call may include forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although we believe that the expectations reflected in our forward-looking statements are reasonable as of today, those statements are subject to risks and uncertainties that could cause the actual results to differ dramatically from those projected. There can be no assurance that those expectations will prove to be correct. Information about the risks associated with investing in China Biologic is included in our filings with the Securities and Exchange Commission, which we encourage you to review before making an investment decision.

The Company does not assume any obligation to update any forward-looking statements as a result of new information, future events, changes in market conditions or otherwise, except as required by law. The Company will discuss non-GAAP measures, which are more thoroughly explained and reconciled to the most comparable measures reported under Generally Accepted Accounting Principles in the GAAP -- in the Company's earnings release and filings with the SEC. You are reminded that such non-GAAP measures should not be viewed in isolation or as an alternative to the equivalent GAAP measures, and that non-GAAP measures are not uniformly defined by all companies, including those in the biopharmaceutical industry.

Now, I'm pleased to present Mr. Joseph Chow, Chairman and CEO of China Biologic.

Executive
Joseph Chow

Thank you, Phil. Hello, everyone, and welcome to China Biologic's third quarter 2020 conference call. Today, while the domestic plasma supply has somewhat recovered from the COVID-19 pandemic, the overall market demand, despite some recovery, is still below pre-pandemic levels. Under these circumstances, our revenue in the third quarter achieved positive year-over-year growth of 1% factoring in the decrease in IVIG sales and the modest sales growth for our albumin products. That said we saw an encouraging rebound from the second quarter with our over 20% over -- quarter-over-quarter growth. This reflects our strong effort in the past quarter to regain our sales momentum following the COVID-19 disruption.

We were also pleased to report nearly 12% non-GAAP operating