XIANYANG, China, Dec. 13, 2010 /PRNewswire-Asia-FirstCall/ --
- Unaudited October and November 2010 combined revenues increased 68% to approximately $18.3 million; Sales of Xin Aoxing increased 67% to $12.4 million
- Company's rural distribution network surpasses 9,500 locations; on track to reach 10,000 by December 31, 2010
Biostar Pharmaceuticals, Inc. (Nasdaq GM: BSPM) ("Biostar" or "the Company"), Xianyang-based manufacturer of a leading over-the-counter Hepatitis B medicine, Xin Aoxing Oleanolic Acid Capsules ("Xin Aoxing Capsules"), and a variety of pharmaceutical products, today provided an update on preliminary sales for October and November 2010.
Biostar's preliminary estimates of its combined revenues for October and November 2010 shows that the revenues for the period increased 68% to approximately $18.3 million, compared to $10.9 million for the same period of 2009. Sales of Xin Aoxing Capsules, Biostar's flagship product, increased by 67% to $12.4 million or 68% of total unaudited revenue for the first two months of the fourth quarter 2010.
Similarly, the Company estimates its unaudited revenues for the first 11 months of 2010 to be $70.2 million, approximately 88% of the Company's full year revenue guidance of $80 million, an increase of 49% compared to the same period of last year. Xin Aoxing's sales were $47.2 million, growing 47% during the first 11 months of 2010. The Company continued its expansion into rural communities in China with products now being sold at over 9,500 locations as of November 30, 2010, up approximately 12% from the end of the third quarter ending September 30, 2010.
"Historically for our Company, the fourth quarter is the strongest sales quarter and December is the strongest sales month. Strong reorders for Xin Aoxing in new markets, driven by a successful advertising program, and supported by sales growth in several other products gives us confidence we will meet our 2010 guidance. We are also on track to meet our 10,000 location target for the rural expansion program and believe this sales channel will drive incremental growth during 2011," commented Ronghua Wang, Chairman and Chief Executive Officer of Biostar. "We will continue to maintain stringent credit terms with our customers to enhance working capital. At the same time, we are working on expanding Xin Aoxing's delivery format to include an injectable form, which we expect to be more effective when applied to patients diagnosed with acute or severe Hepatitis B."
The revenue and other financial estimates contained in this press release have not been audited or reviewed by our independent certified public accountants and accordingly they express no opinion or other form of assurance as to this information. The Company provides no assurance that these preliminary estimates will not change following the Company's completing the fourth fiscal quarter of 2010 and the financial audit of such results of operations, or that such changes will not be material.
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. In addition to its hepatitis product, Biostar currently manufactures two broad-based OTC products, two prescription-based pharmaceuticals, one medical device and five health supplements.
Cautions about Forward Looking Statements
This press release contains forward-looking statements, including forecasts of Biostar's future expected financial results; its prospects for the business in fiscal 2010, which fall 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. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" or words of similar meaning. They may also use words such as, "would," "should," "could" or "may." Factors that may cause our actual results to differ materially from those described in forward-looking statements 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 sales and 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 continue our expansion in the rural areas, 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 fiscal year ended December 31, 2009, our most Quarterly Report on Form 10-Q for the quarter ended September 30, 2010 31, 2010, and other recent 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. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, Biostar disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
SOURCE Biostar Pharmaceuticals, Inc.