A Chinese acquisition has paid off for AMDL Inc.
The Tustin-based maker of drugs and testing products ranks No. 4 on the list of the fastest-growing Orange County based public companies by revenue.
The company’s sales have risen 1,289% in the three years ended June 30.
AMDL has gone from sales of $424,000 in the 12 months ended June 2004 to $5.9 million for the year ended June 30.
The company develops, makes and markets drug and testing products.
Customers include hospitals, doctors, clinics and medical laboratories.
For second quarter, AMDL reported sales of $2.4 million, a 69% hike from the year-ago quarter.
Growth was fueled by the company’s Jade Pharmaceutical Inc. unit in China.
The unit’s sales growth in China is behind the boost in AMDL’s overall revenue, according to Chief Executive Gary Dreher.
AMDL still faces challenges.
It posted a net loss of $2.3 million in the second quarter, and had an accumulated deficit of $38.2 million through December 2006.
AMDL’s shares, which trade on the American Stock Exchange, are up 14% for the year, giving it market value of about $55 million.
The company said in a quarterly report that it had $2.2 million of cash on hand as of Aug. 10, and that its cash is being depleted at the rate of $350,000 a month.
AMDL also said that it expects to meet its projected operating expenses only through February, assuming certain things don’t happen, such as a revenue increase from its core DR-70 cancer blood test or more sales from Jade.
In recent years, AMDL has mainly looked at overseas markets for growth. The company spent $9.1 million in 2006 to buy a pair of drug companies from Hong Kong-based Jade Capital Group Ltd.
The company’s Jade unit makes fluids, tablets and related products and has licenses for 133 products, according to AMDL.
AMDL said that its goals include increasing sales of Jade’s existing products and expanding its distribution, including its wholesale distribution to the company’s retail stores called Jade’s Healthy Supermarkets, and seeking U.S. and Chinese regulatory approvals for DR-70, a non-invasive blood test for cancer, according to a Securities and Exchange Commission filing.
DR-70 is primarily sold in other parts of Asia.
As for the U.S., last week the company said it filed with the Food and Drug Administration for clearance to market DR-70.
AMDL previously met with the FDA to discuss studies the agency requested about it. It used that guidance for its submission.
“FDA clearance to market will be a major step for AMDL in the acceptance of DR-70 for the monitoring of colorectal cancer, not only in the U.S. but worldwide,” Dreher said in a release. “We have forwarded to the FDA the data that we believe will show the efficacy and safety of our test.”
The company’s also looking for a large drug maker to partner with or license its combination immunogene therapy technology, which works to build up the body’s immune system and destroy cancer cells.
The treatment eventually could lead to a vaccine to protect patients who are at risk for certain types of cancer that run in their families, the company said.
AMDL has five workers in Orange County and 305 overall. The company was started in 1989. –
THE NUMBERS
Three-year growth: 1,289%
Yearly sales through June 30: $5.9 million
Yearly loss: $7.9 million
Market value: $55 million
Employees: 305, 5 in OC
Company: drug, medical test maker
