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Biostar forecasts revenues of $69.0 to $71.0 million with net income of$16.2 million to $17 million, excluding any non-cash charges. Managementanticipates sales of its flagship product, Xin Aoxing, will representapproximately 68% to 70% of revenues during 2010.
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The net income forecast does not include non-cash expenses associated withany stock compensation plans. The Company's guidance does not include anycontribution from future acquisitions or pending acquisitions previouslyannounced by the Company or otherwise. Management will continue to evaluateits business outlook as necessary and communicate any changes on a quarterlybasis or when appropriate.
The growth strategy for 2010 is supported by the following initiatives: (1)the introduction of Xin Aoxing into three new markets including Chongqing,Jiangxi and Jiangsu, which, including the Company's previously announcedlaunch in Tianjin, Beijing and Shanghai in January 2010, will bring the totalnumber of markets served by the Company's direct sales offices to 21; (2) tocontinue increasing the Company's presence in rural markets with a goal ofreaching 10,000 sales outlets by the end of 2010; and (3) further productdiversification through research and development and new product launches uponsuccessful clinical trials and permitting procedures.
"We are optimistic about our prospects in 2010," commented Chairman Mr.Ronghua Wang. "We successfully established a solid foundation for futuregrowth during 2009 which will greatly benefit our growth during 2010."
About Biostar Pharmaceuticals, Inc.
Biostar Pharmaceuticals, Inc., through its wholly owned subsidiary inChina, develops, manufactures and markets pharmaceutical and medical nutrientproducts for a variety of diseases and conditions. The Company's most popularproduct is its Xin Aoxing Oleanolic Acid Capsule, an over-the-counter ("OTC")medicine for chronic hepatitis B, a disease affecting approximately 10% of theChinese population. In addition to its hepatitis product, Biostar manufacturestwo broad-based OTC products, two prescription-based pharmaceuticals andthirteen nutrients. The Company has adopted international standards, holds onepatent and is in the process of applying for two patents.
Safe Harbor
Certain statements in this release concerning our future growth prospectsare forward-looking statements, within the meaning of Section 27A of the U.S.Securities Act of 1933, as amended, and Section 21E of the U.S. SecuritiesExchange Act of 1934, as amended, which involve a number of risks anduncertainties that could cause actual results to differ materially from thosein such forward-looking statements. The risks and uncertainties relating tothese statements include, but are not limited to, risks and uncertaintiesregarding the success of our investments, risks and uncertainties regardingfluctuations in earnings, our ability to sustain our previous levels ofprofitability including on account of our ability to manage growth, intensecompetition, wage increases in China, our ability to attract and retain highlyskilled professionals, time and cost overruns on fixed-price, fixed-time framecontracts, client concentration, our ability to successfully complete andintegrate potential acquisitions, withdrawal of governmental fiscal incentives,political instability and regional conflicts and legal restrictions on raisingcapital or acquiring companies outside China. Additional risks that couldaffect our future operating results are more fully described in our UnitedStates Securities and Exchange Commission filings including our S-1 dated June27, 2008, our Quarterly Report on Form 10-Q for the quarter ended September 30,2009, our 10-K for the year ended December 31, 2008, and other recent filings.These filings are available at www.sec.gov. We may, from time to time, makeadditional written and oral forward-looking statements, including statementscontained in our filings with the Securities and Exchange Commission and ourreports to shareholders. We do not undertake to update any forward-lookingstatements that may be made from time to time by or on our behalf.For further information, contact: Ms. Elaine Zhao, CFO Tel: +1-626-456-2789 Email: [email protected] John Mattio HC International, Inc. Tel: US +1-203-616-5144 Email: [email protected] Web: http://www.hcinternational.net
SOURCE Biostar Pharmaceuticals, Inc.
