XIANYANG, China, Nov. 3 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (“Biostar” or “the Company”), a Xianyang-based developer, manufacturer and supplier of pharmaceutical products and medical nutrients addressing a variety of diseases and conditions, today announced that it has expanded its rural supply network to 3,512 sales outlets as of September 30, 2009. These locations have contributed approximately $7.4 million in revenues year-to-date. The company anticipates meeting its goal of launching 5,000 rural sales outlets by the end of 2009 and plans to expand the network to include 10,000 outlets by 2011 throughout 6 provinces including Shaanxi, Gansu, Henan, Hebei, Liaoning, and Shandong.
A sales outlet is a small pharmacy with an average of 600 square feet in a rural village, which supplies residents with the most commonly used drugs. Biostar provides free training to the staff of the sales outlets and currently supplies 5 drugs to each location, including Danshen Granules, a drug which addresses coronary heart disease, myocardditis and angina pectoris and is listed in the Essential Drug List. Average annual revenue generated from each sales outlet is approximately $2,000. The Company’s goal is to build the largest regional pharmaceutical supply network in its targeted rural areas and provide patients with the most efficient and affordable comprehensive pharmaceutical services.
“We are pleased to announce the progress we have made with our rural supply network which we expect to contribute more than $10 million in revenues during 2010. We will continue to invest in this expansion plan, which is one of the key components of Biostar’s long-term growth strategies. In addition to medicines, we will also supply nutraceutical products from our portfolio through the rural supply network to drive incremental revenues. With the government’s support to improve healthcare systems for rural areas, in addition to the increase in disposable income and health awareness of rural population, the sales of our products through this channel is expected to grow rapidly in the coming years,” said Mr. Wang Ronghua, Chairman and CEO of Biostar Pharmaceuticals, Inc.
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 two 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 June 30, 2009, our 10-K for the year ended December 31, 2008, and other recent filings. These filings are available at http://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: Elaine Zhao, CFO of Biostar Pharmaceuticals, Inc.,
+1-626-456-2789, elaine@biostarpharmaceuticals.com; or John Mattio of HC
International, Inc., +1-914-669-5340 (US), john.mattio@hcinternational.net
Web site: http://www.hcinternational.net/
