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UnitedGuardian Inc Reports Operating Results (10-K)

March 26, 2012 | About:
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UnitedGuardian Inc (UG) filed Annual Report for the period ended 2011-12-31.

United Guardian has a market cap of $79.28 million; its shares were traded at around $17.25 with a P/E ratio of 17.25 and P/S ratio of 5.78. The dividend yield of United Guardian stocks is 5.1%. United Guardian had an annual average earning growth of 8.6% over the past 10 years. GuruFocus rated United Guardian the business predictability rank of 4.5-star.

Highlight of Business Operations:Pharmaceuticals: Sales of the Company s two pharmaceutical products, RENACIDIN and CLORPACTIN, decreased by $400,523 (14.8%) for the year ended December 31, 2011 compared with 2010. RENACIDIN accounted for approximately 13% of the Company's sales in 2011 compared with 17% in 2010. The decrease in sales of the Company's pharmaceutical products in 2011 was due to a decrease in sales of RENACIDIN. This product has been manufactured for the Company under a long-term contract with a major U.S. drug company that experienced regulatory problems in 2010 at its facility that manufactures RENACIDIN, which were unrelated to the production of RENACIDIN. The supplier's problems resulted in a temporary suspension of RENACIDIN production in August 2010. As a result, the Company's inventory of this product was significantly reduced, forcing the Company to allocate its supply by reducing sales to the Company's customers from November 2010 until May 2011. This resulted in approximately a 60% reduction in RENACIDIN sales each month beginning in November 2010 until the Company ran out of product completely in the beginning of February 2011. The Company's supplier resumed production of RENACIDIN in the first quarter of 2011, and sales of the product by the Company resumed in May 2011. The reduction in sales of the Company's pharmaceutical products was partially offset by a price increase that went into effect in June 2011.

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