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Biostar Pharmaceuticals, Inc. Announces First Quarter 2010 Financial Results
Date:5/17/2010

p> Revenue for the first quarter of 2010 increased 66.0% to approximately $12.4 million compared to $7.4 million for the first quarter of 2009. The increase was primarily due to Biostar's flagship product, Xin Aoxing Oleanolic Acid Capsule ("Xin Aoxing"), which saw increased sales by 138.2% to $9.2 million with a gross margin of 85.1%, compared to $3.9 million in the first quarter of 2009. Sales of Xin Aoxing represented 74.4% of total revenues and benefited from the expansion into the Beijing and Shanghai markets during the first quarter of 2010, in addition to the implementation of a retail-direct selling strategy to select high-volume pharmacies who accept direct shipments from the Company's Xianyang-based production facility. Another notable contributor from Biostar's portfolio was its Taohuasan Pediatrics Medicine, which contributed $1.0 million in revenue in the first quarter of 2010, an increase of 13.1% compared to $0.9 million in the first quarter of 2009. The Company continued its expansion into rural communities in China with products now being sold at the Company's rural supply network of approximately 6,000 locations out of a target market which includes an estimated 10,000 total locations.

Cost of goods sold for the three months ended March 31, 2010 was approximately $2.8 million or 23.0% of revenues, as compared to $2.7 million or 35.7% of revenues for the three months ended March 31, 2009. Gross profits for the first quarter of 2010 were $9.5 million with gross margins of 77.0%, compared to $4.8
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SOURCE Biostar Pharmaceuticals, Inc.
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