Shengtai Pharmaceutical, Inc. Comments on China's Recently Approved Health Care R... ( WEIFANG China Feb. 5 Asia-FirstCa...)

Shengtai Pharmaceutical, Inc. Comments on China's Recently Approved Health Care Reform Plan

Date:2/5/2009

WEIFANG, China, Feb. 5 /PRNewswire-Asia-FirstCall/ -- Shengtai Pharmaceutical, Inc. (OTC Bulletin Board: SGTI) ("Shengtai" or "the Company"), a leading manufacturer and distributor of high-quality, pharmaceutical grade glucose products in China, today commented on a recently released State Council approved plan to spend a total of 850 billion RMB (USD 123 billion) by 2011 to provide universal primary medical services. Over the next three years, the multi-billion health care plan is aimed at expanding the government-sponsored medical insurance network to provide affordable, basic health care coverage to over 90% of the population. The plan seeks to expand health care services by targeting the country's approximately 900 million farmers, many of whom lack basic medical insurance, to ensure they are covered under the program. Under the plan, each person covered by the program will receive an annual health care subsidy after the 2010 year. In addition, the government will build hospitals and community health clinics to improve medical services in the rural and under-developed areas.

"We believe Shengtai stands to benefit from the government's plan as our pharmaceutical grade glucose is a basic raw material used in medical transfusions, which is also the most common form of medical treatment in China," said Mr. Qingtai Liu, Shengtai Pharmaceutical's CEO. "As the government builds more rural hospitals and community health clinics, we believe there will be an increased demand for glucose as more patients receive transfusions as part of their basic medical services. With our state-of-the-art glucose production facilities, we have the production capacity to meet the anticipated increase in glucose demand. This production expansion, in addition to the recent reorganization of our domestic and international sales department, positions us so we are ready to take advantage of additional market opportunities. Our actions are part
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SOURCE Shengtai Pharmaceutical, Inc.
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