MONROVIA, Calif. and HANGZHOU, China, Nov. 18 Niusule Biotech Corp. ("Niusule" or the "Company") (OTC Bulletin Board: NIUS), a leading U.S.-based biotech company focused on developing and selling nutritional products for children, today announced revenue, gross margin, and net income guidance for calendar year ending December 31, 2010 ("CY 2010").
Based on current trends and planned expansion of its retail distribution network, Niusule management is now forecasting that revenue for CY 2010 is expected to be approximately $10 million. The Company estimates gross margin to be in the range of 70%-75% with net income of $2.5 to $3.0 million for CY 2010. The Company's current guidance is subject to financing.
Niusule's Gummy Bear products have been well received in China and are quickly gaining popularity. In just over a month since its launch, the Company has expanded its market presence to over 36 retail outlets in Zhejiang Province. The Company has also signed contracts with two leading distributors in Zhejiang Province to distribute its products through leading retail outlets, and pharmacies including, Century Lianhua Supermarket, Carrefour, Trust Mart and CRV (China Resources Vanguard) Mart. Under this contract, the Company expects to distribute its products through 100 retail outlets in Zhejiang province and Shanghai city, including 50 pharmacies by the end of year 2009 and reach a total of 250 retail outlets by the year 2010. In 2011, the Company plans to add new markets, including the Beijing City, Guangdong Province and Jiangsu Province. Niusule expects to invest 17% of its CY 2010 revenue in advertising campaigns to establish a strong brand name with a slightly lower level of advertising spending in CY 2011.
"In CY 2010, we expect strong revenue and net income growth as we continue to expand our presence in China and capitalize on the market opportunity available in China's nutritional supplement market," commented Ms. Qinghua Hu, CEO of Niusule Biotech Corp. "Our aggressive market expansion and growth strategy includes, utilizing our flagship Gummy Bears product category to establish a widespread retail network across China. Once established, we intend to utilize this network to introduce new products and enhance our revenue growth and profitability."
About Niusule Biotech Corp.
Niusule Biotech Corp. ("Niusule" or "the Company"), through its wholly owned subsidiary Niusule Bioengineering (Hangzhou) Co. Ltd., develops and distributes health food and related products manufactured in the US to Chinese consumers. The Company launched its Niusule Gummy Bears nutritional supplements for children in September 2009 and its PlantFusion protein powder in July 2009. Niusule currently has a retail distribution network comprised of 36 outlets at high-end supermarkets and shopping malls in Zhejiang province and is aggressively seeking to expand into other regions in China. Niusule was founded in April 2008 and is headquartered in Monrovia, California. For more information, contact CCG Investor Relations directly or go to Niusule's website at http://www.niusule.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such factors or to announce publicly the results of any revisions of the forward-looking statements contained herein to reflect future events or developments. You are urged to consider these factors care in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.
Contact: Jeff Tsang Niusule Biotech Corp. (626) 446-4688 Email:email@example.com Website: www.niusule.com Mabel Zhang CCG Investor Relations (310) 954-1353 firstname.lastname@example.org www.ccgirasia.com
SOURCE Niusule Biotech Corp.