EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2012

EARNINGS PER SHARE [Text Block]

NOTE 16- NET INCOME PER SHARE

The following table sets forth the computation of basic and diluted net income per share of common stock for the periods indicated:

		For the three months ended
		June 30, 2012			June 30, 2011
Numerator used in basic net income per share of common stock:
Net income attributable to China Biologic Products, Inc.	$	12,838,771		$	16,599,705
Interest on the Notes		-			2,077,028
Change in fair value of embedded conversion option in the Notes		-			(5,781,624	)
Change in fair value of warrants		(559,758	)		(5,393,760	)
Numerator used in diluted net income per share of common stock	$	12,279,013		$	7,501,349

Weighted average shares:
		For the three months ended
		June 30, 2012		June 30, 2011
Basic		25,875,164		24,632,774
Effect of dilutive common share equivalents:
Diluted effect of the Notes		-		903,846
Diluted effect of warrants		311,200		598,113
Diluted effect of stock option		440,796		603,546
Diluted		26,627,160		26,738,279
Net income per share of common stock - basic	$	0.50	$	0.67
Net income per share of common stock - diluted	$	0.46	$	0.28

During the three months ended June 30, 2012, 1,544,000 options with an average exercise price of $11.98 were excluded from the calculation of diluted net income per share of common stock since they were antidilutive.

During the three months ended June 30, 2011, 1,126,000 options with an average exercise price of $12.84 were excluded from the calculation of diluted net income per share of common stock since they were antidilutive.

The following table sets forth the computation of basic and diluted net income per share of common stock for the periods indicated:

		For the six months ended
		June 30, 2012			June 30, 2011
Numerator used in basic net income per share of common stock:
Net income attributable to China Biologic Products, Inc.	$	25,796,077		$	22,908,680
Interest on the Notes		-			3,580,167
Change in fair value of embedded conversion option in the Notes		-			(6,289,661	)
Change in fair value of warrants		(1,769,140	)		(5,907,588	)
Numerator used in diluted net income per share of common stock	$	24,026,937		$	14,291,598

Weighted average shares:
		For the six months ended
		June 30, 2012		June 30, 2011
Basic		25,738,145		24,492,728
Effect of dilutive common share equivalents:
Diluted effect of the Notes		-		1,038,674
Diluted effect of warrants		390,507		631,911
Diluted effect of stock option		453,172		639,370
Diluted		26,581,824		26,802,683
Netincome per share of common stock - basic	$	1.00	$	0.94
Net income per share of common stock - diluted	$	0.90	$	0.53

During the six months ended June 30, 2012, 1,544,000 options with an average exercise price of $11.98 were excluded from the calculation of diluted net income per share of common stock since they were antidilutive.

During the six months ended June 30, 2011, 1,126,000 options with an average exercise price of $12.84 were excluded from the calculation of diluted net income per share of common stock since they were antidilutive.