XIANYANG, China, Oct. 2, 2012 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that on September 24, 2012 it signed a one-year agreement to manufacture and supply Xijing Hospital with three new drugs: Gastritis Granule, Pharyngitis Granule and Nasosinusitis Granule.
This agreement is valued at approximately RMB 24 million (or approximately $3.6 million); starting in October 2012, Biostar will deliver the first monthly supply valued at approximately RMB 2 million (or approximately $0.3 million).
These three drugs will be exclusively sold at and given to patients admitted to Xijing Hospital for treatment. Gastritis Granule is used to treat chronic and atrophic gastritis; Pharyngitis Granule is used to treat acute and chronic throat inflammation; and, Nasosinusitis Granule is used to treat acute and chronic sinusitis.
Xijing Hospital (http://en.fmmu.edu.cn/affiliated_hospitals/fsyyej.jsp?urltype=tree.TreeTempUrl&wbtreeid=2497) is a military hospital managed by The Fourth Military Medical University ("FMMU"), one of China's most prestigious military medical universities and research centers. Of note, in January 2012, Biostar was selected to be one of only nine pharmaceutical companies in China to cooperate with FMMU in the fields of research and product development. Since then, Biostar has worked closely with FMMU's staff to carry out experimental tests of products covered under the cooperation agreement, including the three drugs mentioned above.
Ronghua Wang, Biostar's Chief Executive Officer and Chairman, commented, "We are pleased that due to our excellent R&D and manufacturing capabilities, we were able to quickly and successfully complete experimental tests and trial production for all three products. In August and September, once we successfully passed manufacturing technology and quality inspections, we purchased raw materials to start production and we are currently manufacturing all three drugs, which as per the agreement, will be sold directly to Xijing Hospital."
Mr. Wang concluded, "We will continue to work with FMMU's staff to share resources and ideas and to carry out clinical trials for additional new products, which will help us become a production base for manufacturing drugs specifically for the needs of China's military. We are looking to expand our relationship with Xijing Hospital for more than a dozen new drugs for which we currently have the technology to manufacture at our facilities."
About Biostar Pharmaceuticals, Inc.
Biostar Pharmaceuticals, Inc., through its wholly owned subsidiary and controlled affiliate in China, develops, manufactures and markets pharmaceutical and health supplement products for a variety of diseases and conditions. The Company's most popular product is its Xin Aoxing Oleanolic Acid Capsule, an over-the-counter ("OTC") medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population. For more information please visit: http://www.biostarpharmaceuticals.com.
Safe Harbor relating to the Forward-Looking Statements
Certain statements in this release concerning our future growth prospects are 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. Securities Exchange Act of 1934, as amended, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The company uses words and phrases such as "guidance," "forecasted," "projects," "is expected," "remain confident," "will" and similar expressions to identify forward-looking statements in this press release, including forward-looking statements. Undue reliance should not be placed on forward-looking information. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Biostar and described in the forward-looking information contained in this news release. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the Company's ability to complete the contemplated clinical trials and capitalize on such opportunities, risks relating to the Company's expectations relating to the Zushima spray sales, the Company's ability to recover its sales and revenue for the gel capsule segment of its business, the state of consumer confidence and market demand or the Company's products, success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our most recent Annual Report on Form 10-K for the year ended December 31, 2011, and other subsequent filings. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.
SOURCE Biostar Pharmaceuticals, Inc.