XIANYANG, China, Nov. 3 BSPM-Increase-Outlet
XIANYANG, China, Nov. 3 /PRNewswire-Asia-FirstCall/ -- Biostar
Pharmaceuticals, Inc. (OTC Bulletin Board: BSPM) ("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.
For further information, contact:
Ms. Elaine Zhao, CFO
Tel: +1-626-456-2789
Email: elaine@biostarpharmaceuticals.com
John Mattio
HC International, Inc.
Tel: US +1-914-669-5340
Email: john.mattio@hcinternational.net
Web: http://www.hcinternational.net
SOURCE Biostar Pharmaceuticals, Inc.
