NEW YORK, April 7 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (“Biostar” or the “Company”) today reported financial results for the 12 months ended December 31, 2008.
Overview
The Company reported revenue of $33,910,922 for the year ended December 31, 2008 as compared to $15,887,486 for 2007. Net Income for 2008 was $6,690,542, or $0.22 per share on a fully diluted basis, versus $3,963,524 and $0.19 per share, respectively, for 2007.
This increase in revenue and net income reflects an increase in sales of all five of Biostar’s State Food and Drug Administration (“SFDA”) approved drugs, most notably the Xin Aoxing Oleanolic Acid Capsule, the only SFDA- approved, over-the-counter (OTC) treatment for hepatitis B. The increase in sales is also attributed to the continued implementation of the Company’s “Blue Sea” project, which markets products directly to consumers in rural China through retail pharmacies at higher retail prices. Domestic PRC customers account for 100% of Biostar’s sales.
Ronghua Wang, Chairman and Chief Executive Officer of the Company, stated, “I am quite pleased with the Company’s performance in 2008. Our targeted marketing programs and strategic pricing increases resulted in the doubling of revenues on existing products. We continue to strengthen our sales and marketing efforts, particularly for high-demand products such as our Oleanlic Acid Capsule. With the only SFDA-approved OTC product, and an estimated 120 million hepatitis B patients in China, we believe this product, in conjunction with the other products and services offered through our China Hepatitis Internet Hospital represents a substantial opportunity for Biostar.”
Mr. Wang went on to say, “We were also successful in initiating a number of projects which will serve as a foundation for our continued growth in the future. Most recently we received permits to begin construction on a new raw materials processing facility. This is a critical step in enabling us to reduce our cost of goods while improving the quality of our products going forward. We expect to reap the benefits from this processing facility starting by the end of this year, with the future anticipated benefits being very significant.”
ABOUT BIOSTAR PHARMACEUTICALS, INC.
BioStar Pharmaceuticals, Inc., through its wholly-owned subsidiary in China, develops, manufactures and markets pharmaceutical and medical nutrient products for a variety of diseases and conditions. The Company’s most popular product is its Xin Ao Xing Oleanolic Acid Capsule, an over-the-counter (“OTC”) medicine for Chronic hepatitis B, a disease affecting approximately 10% of the Chinese population. In addition to its hepatitis product, BioStar manufactures two broad-based OTC products, two prescription-based pharmaceuticals and ten nutrients. The Company has adopted international standards and is in the process of applying for three patents.
Safe Harbor
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 risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the 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 S-1 dated June 27, 2008, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2008, 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, 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.
CONTACT: Michael Segal, Director of Biostar Pharmaceuticals, Inc.,
+1-866-374-1957 for US, or +86-029-3368-6638 for China,
info@biostarpharmaceuticals.com, or office@aoxing-group.com
Web site: http://www.zggbyy.com/
http://www.biostarpharmaceuticals.com/
http://www.aoxing-group.com/
