XIANYANG, China, May 19, 2017 /PRNewswire/ - Biostar Pharmaceuticals, Inc. (NASDAQ: 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 its financial results for first quarter ended March 31, 2017.
During the fiscal first quarter of 2017, the Company recognized:
- No net sales, a decrease of approximately $0.8 million or 100% as compared to the same period in 2016.
- No gross profit, a decreased of approximately $0.3 million or 100% as compared to the same period in 2016.
- Net loss of $1.0 million as compared to net loss of $0.6 million for the same period in 2016.
The Company had no sales on all Aoxing Pharmaceutical Products in the three months ended March 31, 2017 as Aoxing Pharmaceutical temporarily stopped production to conduct maintenance of its production lines in order to renew its GMP certificates which is expected to be renewed in the second quarter of 2017 at which time the production is expected to resume. There is no assurance that the production lines at Aoxing will resume as expected and the renewal of GMP certificates will occur when anticipated, or even if such certificated are renewed, the Company will be able to return to the anticipated production levels, which, in turn, may have material adverse effects on our business, operations, financial performance and value of its securities. The Company also had no sales on Shaanxi Weinan’s products during the first quarter of 2017 due to replacing production equipment to comply with government’s environmental protection requirements. The Company currently anticipates that the production of Shaanxi Weinan products will resume in the second quarter of 2017. The temporary suspension of production has materially negatively affected the Company’s operating results; as a result, there may be substantial doubt regarding the Company’s ability to continue as a going concern.
*The Company’s Condensed Consolidated Balance Sheets, Statement of Operations, and Cash Flows can be found at the end of this press release. Please also refer the Company’s Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission for further information regarding the Company’s results of operations, including updated risk factors facing the Company.
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. 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.
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