Biostar Pharmaceuticals, Inc. Announces Receipt of "Army New Drug Certificate" for Zushima Spray
XIANYANG, China, Aug. 20, 2012 /PRNewswire-Asia/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that its Zushima Analgesic Spray ("Zushima spray") pain relief drug has received the "Army New Drug Certificate", which is registered with China military authorities as "Military Medicine Certificate # Z2012002".
Zushima spray, which was developed in cooperation with Lanzhou Military Institute of Drugs and Instruments specifically for the needs of China's military, relieves pain and topical swelling, joint pain due to rheumatic conditions, and helps improve blood circulation near affected areas.
Zushima spray has been listed in the military pharmaceutical R&D program since June 2006; entered clinical trials in 2008 which were completed in 2010; passed examination and approval of General Logistics department of China's Ministry of Health on April 15, 2011, and received the "Army New Drug Certificate" by People's Liberation Army General Logistics department last month.
Biostar completed the construction of a dedicated plant and production line for Zushima spray in May 2012, and the testing of all equipment in July. Good Manufacturing Practice (GMP) certification for this line is expected shortly, to be followed by production approval. Zushima spray will initially be sold in military hospitals and is expected to generate between $4 million - $5 million in 2013 revenues. In addition, Biostar intends to seek SFDA's approval to sell Zushima spray in the national market.
Ronghua Wang, Biostar's Chief Executive Officer and Chairman, commented, "We are pleased that after completing several years of clinical trials, we received this approval for Zushima's "Army New Drug Certificate". It marks an important milestone for Biostar as the Chinese military market represents a new opportunity for growth. Since last year, we have been cooperating with military universities such as The Fourth Military Medical University and have signed LOIs to conduct clinical trials for new products, which should enable us to become a producer of drugs specifically for the needs of China's military."
Pictures of the new Zushima spray production line can be viewed at www.biostarpharmaceuticals.com.
About Biostar Pharmaceuticals, Inc.
Biostar Pharmaceuticals, Inc., through its wholly owned subsidiary and controlled affiliate in China, develops, manufactures and markets pharmaceutical and health supplement products for a variety of diseases and conditions. The Company's most popular product is its Xin Aoxing Oleanolic Acid Capsule, an over-the-counter ("OTC") medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population. For more information please visit: http://www.biostarpharmaceuticals.com.
Safe Harbor relating to the Forward-Looking Statements
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 company uses words and phrases such as "guidance," "forecasted," "projects," "is expected," "remain confident," "will" and similar expressions to identify forward-looking statements in this press release, including forward-looking statements. Undue reliance should not be placed on forward-looking information. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Biostar and described in the forward-looking information contained in this news release. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the Company's ability to complete the contemplated clinical trials and capitalize on such opportunities, risks relating to the Company's expectations relating to the Zushima spray sales, the Company's ability to recover its sales and revenue for the gel capsule segment of its business, the state of consumer confidence and market demand or the Company's products, 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 most recent Annual Report on Form 10-K for the year ended December 31, 2011, and other subsequent 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.
SOURCE Biostar Pharmaceuticals, Inc.