Biostar Pharmaceuticals, Inc. (BSPM) Signs $8 Million Agreement to Supply Xijing Military Hospital with 16 New Drugs
Biostar Pharmaceuticals, a PRC-based manufacturer and marketer of pharmaceutical and health supplement products for a variety of diseases and conditions in China, today announced that the company, on November 26, 2012, signed another one-year agreement with Xijing Military Hospital valued at approximately $8 million. The agreement requires that Biostar manufacture and supply Xijing Military Hospital with 16 new drugs used to treat an array of diseases such as pharyngitis, nasopharynx, gastroenteropathy, nephropathy, asthma, hyperplasia of mammary glands, dermatosis, gynecological diseases, etc.
The material terms of this agreement are comparable to the previous two one-year agreements Biostar signed with the same hospital back in September and October 2012, valued at $3.6 million and $3.0 million, respectively. The addition of this new agreement brings Biostar’s sum to 24 drugs which the company currently manufactures for Xijing Military Hospital (10 granules, 13 capsules, and one powder drug) totaling a combined worth of $14.6 million.
“We are pleased to have signed another drug manufacturing contract with Xijing Military Hospital as we continue to expand our drug portfolio with high quality products that are manufactured specifically for the needs of this hospital,” said Ronghua Wang, Biostar’s Chief Executive Officer and Chairman. “The signing of these agreements is a result of our hard work to quickly complete experimental tests, trial production, and pass manufacturing technology and quality inspections. These types of contracts have the potential to generate substantial revenues, have very low sales expenses and a much shorter sales cycle.”
Mr. Wang commented further, stating, “These agreements mark the initial step of our strategic partnership with The Fourth Military Medical University (‘FMMU’), one of China’s most prestigious military medical universities and research centers. As previously announced, we are working to become a strategic partner of FMMU in the fields of research and product development and also to become a production base for manufacturing drugs specifically for the needs of China’s military.”
For more information on Biostar Pharmaceuticals, visit www.biostarpharmaceuticals.com
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