Shengtai Pharmaceutical, Inc. (OTC Bulletin Board: SGTI) announced on August 6, 2010 that Weifang Shengtai Pharmaceutical Co., Ltd ("Weifang Shengtai"), its operating subsidiary in China, entered into an agreement with Kelun Pharmaceutical ("Kelun") to supply Kelun with 10 thousand tons of dextrose monohydrate injection grade: Kelun Guizhou will be supplied with 7 hundred tons and Kelun Sichuan with 9.3 thousand tons. The agreement is entered into at reasonable prices and will be carried out by prepayments.
According to the information available on Kelun's website, Kelun was founded in 1996 and has grown into a pharmaceutical group with 16 subsidiaries (branches). Kelun manufactures and sells drugs in 351 varieties of 16 types including IV solutions, and has the largest number of product varieties and packaging forms in the IV solution industry of China. Kelun is one of the largest manufacturers of IV solutions in the world and exports to markets overseas. In 2009, Kelun sold approximately 2.2 billion bottles (bags) of injection products in various kinds, and its revenue exceeded RMB 3.2 billion. Kelun's market share in China was 23.4% in 2009.
Weifang Shengtai is a leading producer of pharmaceutical injection-grade glucose in China. It has about 40% of the market and is one of the only 3 licensed manufacturers in China of injection grade dextrose monohydrate. Weifang Shengtai's supply agreement with Kelun represents the fact that Weifang Shengtai has won recognition, reputation and trust among quality customers in China. Weifang Shengtai continues to be committed to production of the series of glucose products, high-end glucose products, development of products, increase of production capacity and expansion into markets overseas. Weifang Shengtai's focus on high-end customers as well as targeting on overseas markets will help increase profitability.
Shengtai Pharmaceutical, Inc. believes that the business between Weifang Shengtai, as one of the top-quality suppliers of pharmaceutical raw materials in China, and Kelun, as one of the top-quality pharmaceutical manufacturers in China, will benefit the two parties in achieving expansion of production and continuous improvement of product quality.
SOURCE Shengtai Pharmaceutical, Inc.