China's Biostar Pharma estimates Oct/Nov revenues up 68% to $18.3 million

Biostar Pharmaceuticals (Nasdaq GM: BSPM), a Xianyang, China-based manufacturer of a leading over-the-counter hepatitis B medicine, Xin Aoxing oleanolic acid capsules, and a variety of pharmaceutical products, estimates that its combined revenues for October and November 2010 increased 68% to approximately $18.3 million. 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 its 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 11 months. 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 around 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 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," he added.