UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q/A
 (AMENDMENT NO. 1)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED September 30, 2008
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 FOR THE TRANSITION PERIOD FROM  TO
 Commission file number 001-32980
 BMP SUNSTONE CORPORATION
 (Exact name of registrant as specified in its charter)
 Delaware
    
    20-0434726(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)600 W. Germantown Pike, Suite 400Plymouth Meeting, Pennsylvania
    
    19462(Address of principal executive offices)
    
    (Zip Code)
 610) 940-1675
(Registrants telephone number, including area code)
 þ o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer   o
(Do not check if a smaller reporting company)
    
    Smaller reporting company o
 o þ




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EXPLANATORY NOTE
  PART I. FINANCIAL INFORMATION
 ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 The following discussion should be read in conjunction with the Consolidated Financial
Statements and notes thereto contained herein and in conjunction with the financial statements and
notes thereto included in the Companys Annual Report on Form 10-K for the year ended December 31,
2007.
 Forward-Looking Statements
  Overview
  
    
    pre-market entry analysis;
    
    clinical trial management;




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
    
    product registration;
    
    market research;
    
    pharmaceutical marketing to physicians, hospitals and other healthcare providers;
    
    OTC marketing to retail pharmacies; and
    
    pharmaceutical distribution.
 Financial Overview
   Acquisitions
 Acquisition of Guangzhou Pharmaceutical Corporation
  Acquisition of Sunstone




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Acquisition of Rongheng
    Liquidity and Capital Resources
 Cash
  Notes Receivable
  Limitations on Transfer of Cash (and other assets) to the United States




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Cash Flow




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Critical Accounting Policies
    Results of Operations
 Three Months Ended September 30, 2008 Compared to Three Months Ended September 30, 2007
  For the Three Months Ended
    
    For the Three Months EndedSeptember 30,
    
    September 30,($ amounts in thousands)
    
    2008
    
    2007
    
    2008
    
    2007Net Revenues
    
    $
    30,503
    
    
    $
    8,979
    
    
    
    100.0
    %
    
    
    100.0
    %Cost of Sales
    
    
    16,676
    
    
    
    7,805
    
    
    
    54.7
    %
    
    
    86.9
    %Gross Profit
    
    
    13,827
    
    
    
    1,174
    
    
    
    45.3
    %
    
    
    13.1
    %Sales and Marketing Expenses
    
    
    9,152
    
    
    
    1,077
    
    
    
    30.0
    %
    
    
    12.0
    %General and Administrative Expenses
    
    
    2,910
    
    
    
    2,092
    
    
    
    9.5
    %
    
    
    23.3
    %Total Operating Expenses
    
    
    12,062
    
    
    
    3,169
    
    
    
    39.5
    %
    
    
    35.3
    %Profit (Loss) From Operations
    
    
    1,765
    
    
    
    (1,995
    )
    
    
    5.8
    %
    
    
    -22.2
    %Other Income (Expense):Interest Income
    
    
    6
    
    
    
    172
    
    
    
    0.0
    %
    
    
    1.9
    %Interest Expense
    
    
    (1,590
    )
    
    
    (47
    )
    
    
    -5.2
    %
    
    
    0.5
    %Debt Issuance Cost Amortization
    
    
    (210
    )
    
    
    
    
    
    
    0.7
    %Other Income
    
    
    
    
    
    
    71
    
    
    
    0
    %
    
    
    0.8
    %Total Other Income (Expense)
    
    
    (1,794
    )
    
    
    196
    
    
    
    -5.9
    %
    
    
    2.2
    %Loss Before Provision for Income Taxes
    
    
    (29
    )
    
    
    (1,799
    )
    
    
    -0.1
    %
    
    
    -20.0
    %Provision for Income Taxes
    
    
    787
    
    
    
    
    
    
    
    -2.6
    %
    
    
    Net Loss
    
    $
    (816
    )
    
    $
    (1,799
    )
    
    
    -2.7
    %
    
    
    -20.0
    %
 Net Revenues:




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Three Months Ended September 30,($ amounts in thousands)
    
    2008
    
    2007
    
    $ Increase
    
    % IncreaseBranded OTC
    
    $
    15,471
    
    
    $
    
    
    
    $
    15,471
    
    
    
    N/ADistribution products
    
    
    13,696
    
    
    
    8,019
    
    
    
    5,677
    
    
    
    71
    %Licensed products
    
    
    1,336
    
    
    
    960
    
    
    
    376
    
    
    
    39
    %$
    30,503
    
    
    $
    8,979
    
    
    $
    21,524
    
    
    
    240
    %
 Branded OTC
 Pharmaceutical Distribution
 Licensed Products
 Cost of Sales:
 Three months ended September 30,($ amounts in thousands)
    
    2008
    
    2007
    
    $ Increase
    
    % IncreaseBranded OTCRevenues
    
    $
    15,471
    
    
    $
    N/A
    
    
    $
    N/A
    
    
    
    N/ACost of Sales
    
    
    3,640
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/AGross Profit
    
    $
    11,831
    
    
    $
    N/A
    
    
    $
    N/A
    
    
    
    N/AGross Margin %
    
    
    76.5
    %
    
    
    N/ADistribution and Licensed Products (1)Revenues
    
    $
    15,032
    
    
    $
    8,979
    
    
    $
    6,053
    
    
    
    67.4
    %Cost of Sales
    
    
    13,036
    
    
    
    7,805
    
    
    
    5,231
    
    
    
    67.0
    %Gross Profit
    
    $
    1,996
    
    
    $
    1,174
    
    
    $
    822
    
    
    
    70.0
    %Gross Margin %
    
    
    13.3
    %
    
    
    13.1
    %TotalRevenues
    
    $
    30,503
    
    
    $
    8,979
    
    
    $
    21,524
    
    
    
    239.7
    %Cost of Sales
    
    
    16,676
    
    
    
    7,805
    
    
    
    8,871
    
    
    
    113.7
    %Gross Profit
    
    $
    13,827
    
    
    $
    1,174
    
    
    $
    12,653
    
    
    
    1077.8
    %Gross Margin %
    
    
    45.3
    %
    
    
    13.1
    %
 
 (1)
    
    Revenues and cost of sales for Rongheng is for the period July 5, 2008 through September 30,
2008.




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Sales and Marketing Expenses
  General and Administrative Expenses:
  Interest Income:
  Interest Expense:




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##### 



Debt Issuance Cost Amortization:
  Nine Months Ended September 30, 2008 Compared to Nine Months Ended September 30, 2007
  For the Nine Months Ended
    
    For the Nine Months EndedSeptember 30,
    
    September 30,($ amounts in thousands)
    
    2008
    
    2007
    
    2008
    
    2007Net Revenues
    
    $
    78,230
    
    
    $
    21,844
    
    
    
    100.0
    %
    
    
    100.0
    %Cost of Sales
    
    
    40,120
    
    
    
    19,040
    
    
    
    51.3
    %
    
    
    87.2
    %Gross Profit
    
    
    38,110
    
    
    
    2,804
    
    
    
    48.7
    %
    
    
    12.8
    %Sales and Marketing Expenses
    
    
    26,251
    
    
    
    2,424
    
    
    
    33.6
    %
    
    
    11.1
    %General and Administrative Expenses
    
    
    9,886
    
    
    
    5,847
    
    
    
    12.6
    %
    
    
    26.8
    %Total Operating Expenses
    
    
    36,137
    
    
    
    8,271
    
    
    
    46.2
    %
    
    
    37.9
    %Profit (Loss) From Operations
    
    
    1,973
    
    
    
    (5,467
    )
    
    
    2.5
    %
    
    
    -25.0
    %Other Income (Expense):Interest Income
    
    
    68
    
    
    
    441
    
    
    
    0.1
    %
    
    
    2.0
    %Interest Expense
    
    
    (4,770
    )
    
    
    (90
    )
    
    
    -6.1
    %
    
    
    -0.4
    %Debt Issuance Cost Amortization
    
    
    (630
    )
    
    
    
    
    
    
    -0.8
    %
    
    
    Equity Method Investment Income
    
    
    996
    
    
    
    
    
    
    
    1.3
    %
    
    
    Other Income
    
    
    
    
    
    
    71
    
    
    
    
    
    
    
    0.3
    %Total Other Income (Expense)
    
    
    (4,336
    )
    
    
    422
    
    
    
    -5.5
    %
    
    
    1.9
    %Loss Before Provision for Income Taxes
    
    
    (2,363
    )
    
    
    (5,045
    )
    
    
    -3.0
    %
    
    
    -23.1
    %Provision for Income Taxes
    
    
    2,198
    
    
    
    
    
    
    
    2.8
    %
    
    
    Net Loss
    
    $
    (4,561
    )
    
    $
    (5,045
    )
    
    
    -5.8
    %
    
    
    -23.1
    %
 Net Revenues:
  Nine Months Ended September 30,($ amounts in thousands)
    
    2008
    
    2007
    
    $ Increase
    
    % IncreaseBranded OTC
    
    $
    44,540
    
    
    $
    
    
    
    $
    44,540
    
    
    
    N/ADistribution products
    
    
    29,788
    
    
    
    19,807
    
    
    
    9,981
    
    
    
    50
    %Licensed products
    
    
    3,902
    
    
    
    2,037
    
    
    
    1,865
    
    
    
    92
    %$
    78,230
    
    
    $
    21,844
    
    
    $
    56,386
    
    
    
    258
    %




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Branded OTC
 Pharmaceutical Distribution
 Licensed Products
 Cost of Sales:
 Nine Months Ended September 30,($ amounts in thousands)
    
    2008
    
    2007
    
    $ Increase
    
    % IncreaseBranded OTC (1)Revenues
    
    $
    44,540
    
    
    $
    N/A
    
    
    $
    N/A
    
    
    
    N/ACost of Sales
    
    
    10,675
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/AGross Profit
    
    $
    33,865
    
    
    $
    N/A
    
    
    $
    N/A
    
    
    
    N/AGross Margin %
    
    
    76.0
    %
    
    
    N/ADistribution and Licensed Products (2)Revenues
    
    $
    33,690
    
    
    $
    21,844
    
    
    $
    11,846
    
    
    
    54.2
    %Cost of Sales
    
    
    29,445
    
    
    
    19,040
    
    
    
    10,405
    
    
    
    54.6
    %Gross Profit
    
    $
    4,245
    
    
    $
    2,804
    
    
    $
    1,441
    
    
    
    51.4
    %Gross Margin %
    
    
    12.6
    %
    
    
    12.8
    %TotalRevenues
    
    $
    78,230
    
    
    $
    21,844
    
    
    $
    56,386
    
    
    
    258.1
    %Cost of Sales
    
    
    40,120
    
    
    
    19,040
    
    
    
    21,080
    
    
    
    110.7
    %Gross Profit
    
    $
    38,110
    
    
    $
    2,804
    
    
    $
    35,306
    
    
    
    1259.1
    %Gross Margin %
    
    
    48.7
    %
    
    
    12.8
    %
 
 (1)
    
    Revenue and cost of sales for the Branded OTC segment is for the period February 18, 2008
through September 30, 2008.(2)
    
    Revenue and cost of sales for Rongheng is for the period July 5, 2008 through September 30, 2008.




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Sales and Marketing Expenses
  General and Administrative Expenses:
  Interest Income:
  Interest Expense:




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Debt Issuance Cost Amortization:
  Equity Method Investment Income:
   ($ amounts inthousands)Equity in earnings of Sunstone China for the period January 1, 2008 through February 17, 2008
    
    $
    1,345Less adjustments of excess fair value:Amortization expense of intangible assets
    
    
    (349
    )Total equity method investment gain after amortization
    
    $
    996
 ITEM 4. Controls and Procedures
 (a) Evaluation of Disclosure Controls and Procedures




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(b) Changes in Internal Control Over Financial Reporting




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PART II. OTHER INFORMATION
 Item 6. Exhibits
  ExhibitNumber
    
    Description31.1
    
    Certification of Principal Executive Officer Pursuant to Section
302 of the Sarbanes-Oxley Act of 2002/SEC Rule 13a-14(a)31.2
    
    Certification of Principal Financial Officer Pursuant to Section
302 of the Sarbanes-Oxley Act of 2002/SEC Rule 13a-14(a)




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SIGNATURES
  BMP Sunstone CorporationDate: January 30, 2009
    /s/ David GaoDavid GaoChief Executive Officer
(Principal Executive Officer)Date: January 30, 2009
    /s/ Fred M. PowellFred M. PowellChief Financial Officer
(Principal Financial and Accounting Officer)




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EXHIBIT INDEX
  ExhibitNumber
    
    Description31.1
    
    Certification of Principal Executive Officer Pursuant to Section
302 of the Sarbanes-Oxley Act of 2002/SEC Rule 13a-14(a)31.2
    
    Certification of Principal Financial Officer Pursuant to Section
302 of the Sarbanes-Oxley Act of 2002/SEC Rule 13a-14(a)