China Pharma Holdings, Inc. (CPHI) stock rallied in the premarket: Here’s Why

Shares of the China Pharma Holdings, Inc. (CPHI) stock rallied in the premarket trading session today on October 28, 2021. CPHI stock price saw a surge of 11.46% to reach $0.71 a share at the time of this writing. The stock was also performing well in the previous trade and went up by 1.16% at closing. Let’s take a closer look at this stock.

What’s Happening?

There is no press release or any announcement not even in the previous week by the CPHI stock to justify the bullish sentiment. No analyst has recently upgraded the targeted per share price of the CPHI stock. It seems that the Reddit rally is driving the stock price high so far.

China Pharma Holding is engaged in the manufacturing and marketing of pharmaceuticals and biochemical products in China. The company is mainly working in the development of therapies to treat heart and brain diseases. China Pharma has 16 sales offices and nearly 1000 sales representatives. The company was founded in 1993 and is headquartered in Haikou, China.

Recent Development of CPHI stock:

Back on August 5, 2021, CPHI stock did announce that its hypertension product Candesartan passed the key bioequivalence tests. This milestone opened the door for the CPHI stock to apply for National Medical Products Administration (NMPA) approval. For those who do not know NMPA, it is a Chinese agency that regulates drugs and medical devices.

Hypertension or high blood pressure is a major health problem and now becoming the leading cause of death across the globe.  China Pharma is paying great attention to this problem as it is accelerating day by day. CPHI stock expects that sales for the Candesartan will significantly increase in the upcoming years due to high demand.

Financial View of CPHI stock:

In the second quarter of 2021, revenue for the CPHI stock decreased to $2.4 million from $3.8 million in the same tenure of 2020. For the first half of 2021, the stock generated $4.8 million in revenue. The company suffered $0.8 million in net loss for the second quarter of 2021 as compared to $0.01 million net income in the same prior-year period Net loss for the first half of 2021 was $1.6 million. As of July 10, 2021, the company has weaned itself from the $12.4 million eight-year construction loan facility.

Wrap Up:

So far so good for CPHI stock as far as market sentiment is concerned as investors are foreseeing better profits. The management is optimistic that its products’ sales will significantly increase in the future. Now the company has fully repaid the construction loan facility, it will not feel much pressure on its cash flows and interest expenses.