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Prior to today in China, Propess was indicated for cervix dilation to helpinduce labor, and is currently distributed via vaginal inserts that are 1.1 mmthick. The birth rate in China averages approximately 1.2%, which results inabout 16 million births each year. Further, about 18% of pregnant womenrequire cervical dilation, including 3% of women with Premature Rupture ofMembranes (PROM).
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The IDL approved today will enable BMP Sunstone to market and distributePropess vaginal inserts that are 0.8mm thick. The new applicator improvesefficacy and broadens the potential use of Propess to women with PROM. TheCompany estimates that the 0.8mm Propess will increase the number of targetedwomen with PROM by approximately 500,000, or 3% of all pregnant women in China.
Cytokine PharmaScience Inc, the licensor, is in the process of applyingfor a new brand name for the 0.8 mm insert. Propess has been adopted as thefirst line treatment by China OB association. The Company anticipatesdistributing the 0.8mm Propess by September 2008.
David Gao, Chief Executive Officer of BMP Sunstone, stated, "We arepleased to offer this new form of Propess. The 1.1mm Propess insert has beenextremely popular in China, evidenced by usage in our 500-plus hospitalnetwork. We anticipate that the 0.8mm Propess will help us to expand ourdistribution network to 1000 hospitals by 2010, and cover more than 1.5million pregnant women per year. Generally, outside of China, the rest of theworld has used 0.8 mm inserts for years, and we are very excited to bring thistechnology to China.''
Mr. Gao continued, ''We are excited that the Propess sales was almosttripled from 2006 to 2007 and expect that the 0.8mm Propess will raise BMP'scompetitive edge in China, where the demand for obstetric products isexpanding rapidly. We believe that the launch of this new insert will drivehigher margin revenue over time. 0.8 mm inserts yield a higher margin than do1.1 mm inserts because the 0.8 mm insert is the global standard.''
About BMP Sunstone Corporation
BMP Sunstone Corporation is a specialty pharmaceutical company that isbuilding a proprietary portfolio of branded pharmaceutical and healthcareproducts in China and is pursuing partnerships with other companies seeking toenter the Chinese pharmaceutical market. It is the only U.S. public companyto offer industry partners a comprehensive suite of market-entry services inChina that includes pre-market entry analysis, clinical trial management,product registration, market research, as well as pharmaceutical marketing anddistribution. The Company provides distribution services for a wide range ofproducts, including Western medicines, traditional Chinese medicines, bio-chemical medicines, medical applications, branded generic pharmaceuticals,over-the-counter healthcare products, and home healthcare supplies andequipments. BMP Sunstone's proprietary portfolio primarily focuses on women'shealth and pediatrics. The Company is headquartered in Plymouth Meeting,Pennsylvania.
Safe Harbor Statement
This news release contains forward-looking statements as defined by thePrivate Securities Litigation Reform Act of 1995. Forward-looking statementsinclude statements concerning plans, objectives, goals, strategies, futureevents or performance, and underlying assumptions and other statements thatare other than statements of historical facts, including but not limited tothe anticipated distribution date of 0.8mm Propess, the anticipated expansionof the Company's distribution network, the anticipated number of patients thatwill use Propess in the future, the ability of Propess to
