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» 23/07/2009 [Company watch]
China Aoxing Pharmaceutical Corp. Receives Renewal of GMP Certification for Capsule Dosage Form of Pharmaceutical Products
» 15/03/2010 [Industry news]
Recordati S.p.A And Lee Pharmaceutical Announce Partnership For Zanidip(R) In China
» 26/10/2009 [Finance]
China Growth to Remain Fast in Fourth Quarter, Official Says
» 17/08/2009 [Industry news]
Chindex Posts Profit on Product Sales, Health Services
» 07/05/2010 [Industry news]
Hong Kong: Recall of all products manufactured by Quality Pharmaceutical Lab Ltd
COMPANY NEWS back to previous page show list
»08/11/2009 [Industry news]
Biostar Raises $3.6 Million

Biostar will use the proceeds to complete its new raw materials processing facility.

Biostar Pharmaceuticals, Inc. has completed a private placement that raised $3.6 million in new capital. Biostar will use the proceeds to complete its new raw materials processing facility. By taking its raw material production in house, Biostar will lower costs and ensure its product quality. Biostar plans to sell excess raw materials to other pharmaceutical companies in the Shaanxi province. For their $3.6 million, investors received 2,060,000 shares of Series B convertible preferred stock, which are comprised of the right to convert 1-for-1 into Biostar common and warrants to purchase 500,000 additional shares. The warrants are exercisable for a period of five years at an exercise price of $3.00 and include a call provision. Biostar is currently trading at a price of $2.40. Disregarding the additional value of the warrants, the investors paid just $1.75 for their shares, a 27% discount. Biostar has approximately 26.1 million shares outstanding on a diluted basis after the transactions. The company is facing Make Good provisions from an earlier financing that calls for income from operations of $15.9 million for 2009 and $21.1 million for 2010. It expects the raw material processing facility will help meet those goals. Biostar lead product is Xin Ao Xing Oleanolic Acid Capsule, a TCM product that is sold over-the-counter for chronic hepatitis B. Earlier this week, Biostar announced it has expanded its rural supply network to 3,512 sales outlets as of September 30, 2009. These locations contributed approximately $7.4 million in revenues year-to-date – about $2,000 per location. The company expects to meet its goal of launching 5,000 rural sales outlets by the end of 2009 and wants to have 10,000 outlets by 2011 in 6 provinces, including Shaanxi, Gansu, Henan, Hebei, Liaoning, and Shandong. These rural outlets are small pharmacies with an average of 600 square feet in a rural village that supply residents with commonly used drugs. Biostar provides free training to the staff of the sales outlets and currently supplies 5 drugs to each location, including Danshen Granules, a drug which addresses coronary heart disease, myocardditis and angina pectoris and is listed in the Essential Drug List. Biostar\'s goal is to build the largest regional pharmaceutical supply network in its targeted rural areas, providing patients with the most efficient and affordable comprehensive pharmaceutical services.

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