XIANYANG, China, Aug. 15, 2011 /PRNewswire-Asia-FirstCall/ -- BioStar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) (“BioStar” or “the Company”), a Xianyang-based manufacturer of a leading PRC over-the-counter Hepatitis B medicine, Xin Aoxing Oleanolic Acid Capsules (“Xin Aoxing”) and a variety of pharmaceutical products, today announced its unaudited financial results for the second quarter and first half 2011 ended June 30, 2011.
SECOND QUARTER AND FIRST HALF 2011 FINANCIAL SUMMARY:
2Q2011 ($M except | 2Q2010 ($M except | Change (%) | 1H2011 ($M except | 1H2010 ($M except | Change (%) | ||
Net sales | 25.9 | 19.4 | 33.6% | 41.2 | 31.8 | 29.7% | |
Gross profit | 18.6 | 14.4 | 29.5% | 29.3 | 23.9 | 22.6% | |
Income from operations | 6.0 | 7.5 | -21.0% | 9.7 | 10.7 | -9.3% | |
Net income | 4.2 | 5.6 | -25.6% | 6.9 | 7.8 | -12.3% | |
Non-GAAP net income1 | 5.5 | 5.8 | -6.0% | 8.4 | 8.2 | 1.6% | |
Diluted EPS | 0.15 | 0.20 | -25.0% | 0.25 | 0.28 | -10.7% | |
Non-GAAP diluted EPS1 | 0.20 | 0.21 | -4.7% | 0.30 | 0.30 | - | |
Note 1: Non-GAAP financial measures excluding non-cash stock-based compensation charges. For more information about the non-GAAP financial measures contained in this press release, please see “About Non-GAAP Financial Measures” below. | |||||||
SECOND QUARTER AND FIRST HALF 2011 BUSINESS AND OPERATION HIGHLIGHTS:
- Sales of Xin Aoxing in 2Q2011increased 35.7% to $17.2 million from 2Q2010, representing 66.3% of total sales, with a gross margin of 85%, remaining the same as 2Q2010.Sales of Xin Aoxing in 1H2011increased 29.2% to $28.3 million from 1H2010, representing 68.6% of total sales.
- Sales of other products including GanWang Compound Paracetamol Capsules,Tianqi Dysmenorrhea Capsule, Danshen Granule, Taohuasan Pediatrics Medicine, Tangning Capsule, Yizi Capsule, Shengjing Capsule and Aoxing ointment and Hernia Belt (“other products”) totaled $8.7million in 2Q2011, increased 29.6% from 2Q2010. Sales of other products in 1H2011 totaled $12.9 million, increased 30.9% from 1H2010.
- Sales from rural sales outlets totaled $5.2 million in 2Q2011, increased 20% from 2Q2010, representing20% of total sales as compared 21% in 2Q2010.Sales from rural sales outlets totaled $6.7 million in 1H2011, increased 31% from 1H2010, representing 16% of total sales as compared 15% in 1H2010.
- Sales network established in Zhejiang, Hunan and Hainan provinces, brings the total number of PRC provinces in which Biostar operates to 25.
- Have submitted the final information required by the Drug Administration under the General Logistics Department of People’s Liberation Army (“PLA”) for approval to produce Zushima Analgesic spray, a pain reliever product intended for use by military personnel.
Ronghua Wang, Biostar Pharmaceutical Chief Executive Officer and Chairman of the Board of Directors said: “Biostar’s aggressive marketing approach, coupled with solid market demand for our products, ensured that revenue for the second quarter ended 30 June 2011 grew 33.6% year on year to $25.9 million. Flagship product Xin Aoxing Capsule continued to be main growth catalyst, as revenue from Xin Aoxing Capsule grew 35.7% year on year to $17.2 million. Performance of our other products remained steady, with revenue from them growing 29.6% year on year to $8.7million.”
“In order to capture the market opportunities stemming from the increasing healthcare needs in PRC, Biostar has been making strategic investment to increase its market share. During the second quarter of 2011, Biostar maintained its growth strategy both at provincial level and rural areas, while establishing sales networks in Zhejiang, Hunan and Hainan provinces and increasing rural presence to 11,300 sales outlets. The company now operates in 25 provinces in PRC. BioStar believes that Zhejiang, Hunan and Hainan provinces, representing about a tenth of China‘s population, or approximately 129 million people, with relatively higher GDP, are markets where its products can be marketed and sold effectively.”
“I’m also happy to report that we have submitted the final information required by the Drug Administration under the General Logistics Department of People’s Liberation Army (“PLA”) for approval to produce Zushima. As Zushima is a pain reliever designed for use by military personnel and on military’s annual purchasing list of medicines, its approval and certification are required from the PLA. We have already taken appropriate steps to provide the PLA with all relevant information and data required to expedite their review and evaluation.”
“In the near term, our strategic priorities to maintain Biostar’s market leadership are to invest in the development of innovative products pipeline and to expedite product commercialisation through the refining of sales channels and broadening of distribution points to cover Guangxi Autonomous Region and more rural markets before the end of the year. We also aim to enhance our competitive cost base by capitalizing on our vertically integrated business model and by increasing incentive-driven sales programs to reduce marketing expenses. Our management team is committed to consistently review and prioritize our spending and to enhance our financial position to support the company’s organic growth.”
“Looking ahead, with our expanded sales network, enhanced brand positioning and diversified product portfolio, we remain confident about the company’s business outlook. We maintain the previously provided guidance for top-line growth of 20-25% for our fiscal year ending December 31, 2011. We anticipate to continue improving our operations to drive growth and increase value for our shareholders.”
