Dec 29 2009
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 it has completed preparation to launch its flagship Xin Aoxing
Oleanolic Acid ("Xin Aoxing") Capsules for the treatment of Hepatitis B in
Beijing and Shanghai in early January 2010.
Management anticipates approximately $9 million in incremental revenues
during 2010 from these two new markets with average gross margins of
approximately 72%. Biostar launched its marketing and operational initiatives
for selling Xin Aoxing Capsules in these markets during December, including
staff recruitment, establishing sales offices, engaging distributors and
deploying advertisement. The Company launched Xin Aoxing Capsules in the
Tianjin market in November 2009, which has already generated $0.5 million in
revenues during its first month. Beijing, Shanghai, and Tianjin are three of
the largest markets in China with a total population estimated at 50 million,
and Biostar will leverage both distributors and direct sales in these three
markets.
"We are very pleased with the progress we have made to expand our Xin
Aoxing Capsules into Beijing and Shanghai. Our focus on the Tianjin, Beijing
and Shanghai markets is part of a strategy to develop high-population
territories along with continued expansion of our rural networks," said Mr.
Wang Ronghua, Chairman and CEO of Biostar Pharmaceuticals, Inc. "2009 was a
key turning point for our Company as we completed several key growth
initiatives and built a foundation for 2010. The success of our marketing
strategy for our Xin Aoxing Capsules helped us achieve significant growth in
first three quarters of 2009. Our focus on expanding product sales to the
rural area has also enabled us to gain incremental market share, which we
believe will contribute meaningfully to future growth."
As of December 11, 2009, Biostar also reported a total of 5,010 sales
outlets in its New Rural Cooperative Medical Drug Supply Network, exceeding
its target to cover 5,000 sales outlets by the end of 2009.
SOURCE Biostar Pharmaceuticals, Inc.