Biostar Pharmaceuticals (NASDAQ:BSPM) reported that 2008 revenues more than doubled to $33.9 million while net income rose 69% to $6.7 million. That is equal to 22 cents per share, fully diluted. The earnings-per-share figure was only a nominal improvement over last year’s 19 cents. Biostar, which operates in China through Shaanxi Aoxing Pharmaceutical Company, an herb-based medicine company, attributed the revenue gains to its marketing programs.
Biostar sells five SFDA approved medicines in China, and it also offers ten nutrient-based products that aim to alleviate specific problems. 56% of the company’s revenues are generated by Xin Aoxing Oleanolic Acid Capsules, the only SFDA-approved, OTC treatment for hepatitis B. Biostar is currently developing nine additional products. Three of those are awaiting SFDA approval, and Biostar expects to be marketing two of the three before the end of 2009.
One of the company’s marketing initiatives is the China Hepatitis Internet Hospital, which offers products and support to patients afflicted with hepatitis. Biostar says the program allows customers to buy Xin Aoxing Oleanolic Acid Capsules discretely, outside the normal hospital/pharmacy system.
As a major revenue driver, the company also mentioned its Blue Sea project, which markets products directly to consumers in rural China through retail pharmacies at higher retail prices.
As we mentioned last month, Biostar is building a raw material processing center. It began growing its own crops last year, but sourced all of its raw materials from outside suppliers as its own products will not be ready until this year.