XIANYANG, China, Dec. 20, 2011 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a developer, manufacturer and marketer of pharmaceutical and health supplement products for a variety of diseases and conditions, today announced that its newly acquired subsidiary, Shaanxi Weinan, signed a 12-month distribution agreement with Shaanxi Huikang Pharmaceuticals Co. ("Huikang Pharmaceuticals") effective January 1, 2012.
Huikang Pharmaceuticals is distributor of pharmaceutical products in 11 provinces in Northwest and North China and has annual sales over RMB 300 million. Huikang Pharmaceuticals has a network of over 300 drugstores and hospitals, where, for the most part, Biostar products are not currently sold.
Huikang Pharmaceuticals will distribute ten Biostar products: six existing products which are currently being distributed through Biostar's network and four new products which are now being manufactured by Biostar. The four new products are: Compound Paracetamol and Amantadine Hydrochloride (OTC drug used to fight the common cold), Danshen Tablets (prescription drug used for the treatment of coronary heart disease), Piracetam Tablets (prescription drug used for the treatment of cerebrovascular disease), and Erythromycin Estolate Coated Particles (prescription drug used as anti-bacterial anti-inflammatory). All ten products will be ready for mass distribution through Huikang Pharmaceuticals' network of drugstores and hospitals starting in 2012.
Biostar's Chairman and Chief Executive Officer, Mr. Ronghua Wang noted, "Based on the terms of this 12-month distribution agreement which starts in January 2012, we anticipate booking annual sales of RMB 30.4 million from the sale of our products to Huikang Pharmaceuticals. Additionally under the agreement, Huikang Pharmaceuticals may gradually increase volume of monthly orders when demand for the specified products is strong."
Mr. Wang added, "As we continue to face strong competition, we are taking steps to increase our market share by seeking additional agreements to partner with well-established and geographically diverse distributors of pharmaceutical products. Additionally, we will continue to distribute our products through our large network which covers 25 provinces, and our sales team of over 300 people."
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 Ao Xing 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," "anticipates," "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 achieve its growth strategy and sales figures anticipated in connection with Huikang Pharmaceuticals distribution agreement, incorporate and successfully develop additional drugs into the Company's existing product portfolio, its ability to capitalize on the market opportunities presented by such acquisition, regulatory and other related approvals relating to the acquisition, the Company's ability to integrate this acquisition into its current operations, its ability to complete the audit and other closing conditions relating to the acquisition, 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, 2010, 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.