Biostar Pharmaceuticals, Inc. (NASDAQ:BSPM) received local approval for three TCM products, which it expects to begin selling later this month. The company projects a total of $3.5 million in revenues from the three products in 2009, and $7.4 million in 2010. Biostar anticipates they will produce net income of $1 million this year and $2 million in 2010.
Biostar has built a rural cooperative medicine supply network to distribute these products alongside its existing drugs. The network currently consists of about 1,320 sales outlets in rural areas, which Biostar plans to expand into 10,000 sales outlets in two years.
The three new products are:
- Yizi Capsules – a TCM aimed at infertility in women and believed to aid in healthy fetal development during pregnancy. It is one of only a few nutritional supplement products marketed for infertility.
- Tangning Capsules – a TCM used to treat type II diabetes. It is effective in lowering glucose levels, nourishing kidneys, and alleviating Type II diabetes-related complications such as excessive thirst, fatigue and frequent urination.
- Shengjing Capsules – a TCM used by males to improve libido and assist with impotence, improve overall energy levels and replenish kidney function.
The additional revenues will make a meaningful difference in Biostar’s financial results. In 2008, the company reported revenues of $33.9 million, a better than 100% increase over 2007. Net income for the year rose 69% to $6.7 million.
Biostar sells five SFDA approved medicines in China. 56% of its revenues are generated by Xin Aoxing Oleanolic Acid Capsules, the only SFDA-approved, OTC treatment for hepatitis B. It also offers ten nutrient-based products aimed at specific problems.
In addition, Biostar is building a raw material processing center. It began growing its own crops last year, and once the operation is producing fully, the company will be able to supply all of its own raw materials and sell to other TCM manufacturers.