During the second quarter of 2009, Biostar finished the engineering design and commenced construction for its new raw material processing facility expected to be operational during the fourth quarter of 2009. The raw material processing facility is part of the Company's herbal plantation base. The plantation base will be utilized to service Biostar's own raw material demand ensuring the Company's product quality, lowering its overall production costs and providing incremental revenue by selling excess raw materials into the market.
During the second quarter of 2009, Biostar commenced the full implementation of the new rural cooperative medical drug supply network plan. In April, Biostar deployed over 30 salesmen to set up a network covering approximately 1,320 sales outlets in the rural areas of 10 counties located throughout the Shaanxi province. This is the initial phase of Biostar's two-year plan to build a rural supply network covering 10,000 sales outlets throughout six provinces. The goal is to build the largest regional pharmaceutical supply network in rural areas of the PRC in order to capitalize on the growth opportunity driven by an increase in disposable income of farmers and government's significant capital commitment to rural communities throughout the PRC.
Biostar received approval from the local government to produce Yizi Capsules, Tangning Capsules, and Shengjing Capsules. The Company has launched these products through its domestic market channels and initial revenues have been generated by late July, 2009.
"We are making progress on all aspects of our business. From commencing
construction for our new raw material processing facility, to establishing
1,320 rural sales
|SOURCE Biostar Pharmaceuticals, Inc.|
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