Biostar Pharmaceuticals Inc. completed preparation to launch its flagship Xin Aoxing Oleanolic Acid Capsules for the treatment of Hepatitis B in Beijing and Shanghai in early January 2010. Management anticipates approximately $9 million in incremental revenues during 2010 from these two new markets with average gross margins of approximately 72%.
Biostar launched its marketing and operational initiatives for selling Xin Aoxing Capsules in these markets during December, including staff recruitment, establishing sales offices, engaging distributors and deploying advertisement. The company launched Xin Aoxing Capsules in the Tianjin market in November 2009, which has already generated $0.5 million in revenues during its first month.
Biostar Pharmaceuticals Inc., through its subsidiary in China, develops, manufactures and markets pharmaceutical and medical nutrient products for a variety of diseases and conditions. The Company\'s most popular product is its Xin Aoxing Oleanolic Acid Capsule, an over-the-counter medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population.