Advertisement
Yizi Capsules is a traditional Chinese herbal supplement that effectivelyhelps infertility in women and widely believed to aid in healthy fetaldevelopment during pregnancy. This will be one of the few nutritionalsupplement products for infertility in the market.
Advertisement
Tangning Capsules is also a traditional Chinese herbal supplement used totreat Type II Diabetes. It has proven to be effective in lowering glucoselevels, nourishing kidneys, and alleviating Type II diabetes-relatedcomplications such as excessive thirst, fatigue and frequent urination.Complemented with a proper diet, patients taking Tangning Capsules typicallysee improvements in their condition in a short period of time. The price ofTangning Capsules is the lowest among other comparable products on the marketwhile still maintaining a 54.4% gross margin for the Company. According to thenew Emerging Markets report entitled Type II Diabetes in China, the number ofprevalent cases of Type II Diabetes in China is among the highest in the worldwith 62.5 million reported cases in 2007. By comparison, the United States,Europe and Japan had a combined total of 48.5 million reported cases for thesame year.
The third traditional Chinese herbal supplement approved is ShengjingCapsules, which is used typically by males to help improve libido and assistwith impotence, improve overall energy levels and replenish kidney function.
Management anticipates that Yizi Capsules, Tangning Capsules, andShengjing Capsules collectively will contribute $3.5 million in sales and $1million in net income in 2009. For 2010, the management anticipates recording$7.4 million in revenue and $2 million in net income. As a component of theseforecasts, the Company estimates that Yizi Capsules will generate $2.6 millionand $5.2 million in revenues in 2009 and 2010, respectively. The marginprofile of these products is expected to be slightly better than that ofBiostar's current product mix.
The sales of these three products will be mainly through the Company's newrural cooperative medicine supply network with approximately 1,320 salesoutlets in the rural areas currently. Biostar plans to build a rural medicinesupply network covering 10,000 sales outlets in two years and these newproducts will be deployed in tandem with the expansion of the network. Salestraining is currently under way.
"We are very pleased to receive approval of Yizi Capsules, TangningCapsules and Shengjing Capsules from the local government. This is a veryimportant step and positive progress for our business which furtherdiversifies and complements our product portfolio," said Mr. Wang Ronghua,Chairman and CEO of Biostar Pharmaceuticals, Inc. "We are well positioned tocapitalize on these new growth opportunities as these approvals enable us toimmediately leverage our production capacity and our rural medicine supplynetwork to generate incremental revenues and future growth."
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 Ao Xing 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 and tennutrients. The Company has adopted international standards and is in theprocess of applying for three 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 March 31,2009, 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: +1-914-669-5340 (US) Email: [email protected] Web: http://www.hcinternational.net
SOURCE Biostar Pharmaceuticals, Inc.
