XIANYANG, China, Oct. 15, 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 October 8, 2012 it signed a one-year agreement valued at approximately $3.0 million to manufacture and supply Xijing Hospital with five additional drugs.
Specifically, the five drugs include: Qing Wen Granule (used to treat viral colds), Ru Xiao Kang Capsule (used to treat hyperplasia of mammary glands, breast swelling and mastadenoma), Stomach and Intestine Purifying Capsule (used to treat chronic gastritis, enteritis and ulcers), Juteng Capsule (used to treat hypertension, hyperlipidemia, cerebral arteriosclerosis, encephalatrophy and strokes), and Ding An Kang Granule (used to treat insomnia and irritability).
The material terms of this agreement are similar to those of the $3.6 million agreement signed with Xijing Hospital last month, as these five drugs will also be exclusively sold at and given to patients admitted to the hospital for treatment.
Ronghua Wang, Biostar's Chief Executive Officer and Chairman, commented, "We have successfully completed experimental tests and trial production for these five drugs and also passed manufacturing technology and quality inspections. As per the terms of the agreement, we will immediately start manufacturing the five drugs; the first supply is expected to be delivered to Xijing Hospital at the end of October 2012."
Mr. Wang added, "We are pleased to have signed two drug manufacturing contracts with Xijing Hospital, which is managed by The Fourth Military Medical University ("FMMU"), one of China's most prestigious military medical universities and research centers. We are currently manufacturing eight drugs for the Xijing Hospital and are working to sign additional contracts for more than a dozen new drugs."
Mr. Wang concluded, "We will continue to expand our cooperation with Xijing Hospital and FMMU to become a strategic partner in the fields of research and product development. The cooperation with FMMU enables us to enhance shareholder value by expanding our product range, increasing sales and profitability."
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 and deliver the products in accordance with the terms of the agreement with the hospital, risks relating to the Company's expectations relating to its future drug 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.
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SOURCE Biostar Pharmaceuticals, Inc.