Jiangbo Pharmaceuticals Receives Approval for Felodipine Sustained Release Tablets
LAIYANG, China, June 10 /PRNewswire-Asia-FirstCall/ -- Jiangbo Pharmaceuticals, Inc. (Nasdaq: JGBO) (the "Company" or "Jiangbo"), today announced that the Company received approval from the Chinese State Food and Drug Administration ("SFDA") to start producing Felodipine sustained release ("SR") tablets.
Felodipine SR is a well recognized generic drug to treat hypertension and is listed in China's Basic Medical Insurance Catalog for medical coverage. A 2009 study conducted by researchers in the U.S. and China, led by Tulane University, estimated that approximately 153 million people had hypertension in China and less than 5% of the hypertensives received treatment. While there are currently several other pharmaceutical companies selling Felodipine SR tablets, the Company believes that the market opportunity is very large and plans to leverage its strong national distribution relationships to effectively penetrate the market and gain share. Many of Jiangbo's current distributors have expressed interest in cooperating with the Company to distribute Felodipine SR tablets and Jiangbo also expects to initiate discussions with numerous new distributors to help expand the marketing of this drug across retail and hospital sales channels.
Jiangbo believes that it has the necessary manufacturing equipment and capacity to produce Felodipine SR tablets. The Company expects to complete the pilot production requirements and receive final distribution approval from Shandong Food and Drug Administration in July 2010. The Company plans to initiate commercial distribution immediately following the receipt of such approval. Management anticipates the drug to be a meaningful contributor to its revenue and profit starting in fiscal 2011 and estimates revenue potential for this drug to be between $8 million and $12 million in the first twelve months of launch with a projected gross margin of at least 70%.
"We are very excited to receive this important approval to produce Felodipine SR tablets, which we believe will be a key revenue and profit growth driver for us in the next few years," said Mr. Cao Wubo, Chairman and CEO of Jiangbo Pharmaceuticals. "We are already preparing for the commercial production and launch of Felodipine SR tablets and plan to carefully select distributors to maximize our commercial opportunity for this new drug. We believe the addition of Felodipine SR tablets will enrich our product portfolio and strengthen our competitive market position, while providing more cost effective new medicine to meet growing patient demand."
About Jiangbo Pharmaceuticals, Inc.
Jiangbo is engaged in the research, development, production, marketing and sales of pharmaceutical products in China. The Company's operations are located in Eastern China in an Economic Development Zone in Laiyang City, Shandong Province. Jiangbo produces both western and Chinese herbal-based medical drugs in tablet, capsule, granule, syrup and electuary (sticky syrup) form. For additional information, please visit the Company's website ( http://www.jiangbopharma.com ).
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties. Actual results may differ materially from anticipated or predicted results, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's ability to successfully launch and commercialize Felodipine SR tablets, obtain raw materials needed for product manufacturing, anticipated sales volume growth of the drug, the failure risks inherent in testing any new drug, the possibility that regulatory approvals may be delayed or become unavailable, patent or licensing concerns that may include litigation, direct competition from other manufacturers and product obsolescence. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
For more information, please contact: Jiangbo Pharmaceuticals, Inc. Ms. Elsa Sung, CFO Phone: +1-954-903-9378 x2 Email: firstname.lastname@example.org Web: http://www.jiangbopharma.com CCG Investor Relations Ms. Lei Huang, Account Manager Phone: +1-646-833-3417 Email: email@example.com Web: http://www.ccgirasia.com Mr. Crocker Coulson, President Phone: +1-646-213-1915 Email: firstname.lastname@example.org
SOURCE Jiangbo Pharmaceuticals, Inc.