Biostar Pharmaceuticals (BSPM) research, news, and more from GeoInvesting

Company description

Fri, 26 Feb 2010 05:00:00 GMT

BioStar Pharmaceuticals, Inc., through its wholly-owned subsidiary develops, manufactures and markets pharmaceutical and medical nutrient products for a variety of diseases and conditions. The Company's most popular product is its Xin Ao Xing Oleanolic Acid Capsule, an over-the-counter (OTC) medicine for Chronic hepatitis B, a disease affecting approximately 10% of the Chinese population. In addition to its hepatitis product, BioStar manufactures two broad-based OTC products, two prescription-based pharmaceuticals and ten nutrients. The company has adopted international standards and currently holds three patents and is in the process of applying for another three patents.

The company's products are currently being sold through an established network of more than 200 dedicated sales people. Biostar is also in the process of testing the China Hepatitis Internet Hospital. This unique, multi-purpose site serves as an effective marketing tool and distribution channel for Biostar's Hepatitis and nutrient products, while providing patients with convenient, confidential and dedicated service, all handled qualified, responsible personnel.

Located near the Qinling Mountains in Xian Yang, Biostar has access to more than 3,000 botanic plant varieties, many with medicinal potential. The Company operates an herbal medicine planting base which provides it with many of its needed materials at a significantly lower cost than purchasing from third parties, and eliminates most needs for transportation.

Going Public Details

Comments & Business Outlook

Tue, 20 Dec 2011 05:00:00 GMT

XIANYANG, China, December 20, 2011 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a developer, manufacturer and marketer of pharmaceutical and health supplement products for a variety of diseases and conditions, today announced that its newly acquired subsidiary, Shaanxi Weinan, signed a 12-month distribution agreement with Shaanxi Huikang Pharmaceuticals Co. ("Huikang Pharmaceuticals") effective January 1, 2012.

Huikang Pharmaceuticals is distributor of pharmaceutical products in 11 provinces in Northwest and North China and has annual sales over RMB 300 million. Huikang Pharmaceuticals has a network of over 300 drugstores and hospitals, where, for the most part, Biostar products are not currently sold.

Huikang Pharmaceuticals will distribute ten Biostar products: six existing products which are currently being distributed through Biostar's network and four new products which are now being manufactured by Biostar. The four new products are: Compound Paracetamol and Amantadine Hydrochloride (OTC drug used to fight the common cold), Danshen Tablets (prescription drug used for the treatment of coronary heart disease), Piracetam Tablets (prescription drug used for the treatment of cerebrovascular disease), and Erythromycin Estolate Coated Particles (prescription drug used as anti-bacterial anti-inflammatory). All ten products will be ready for mass distribution through Huikang Pharmaceuticals' network of drugstores and hospitals starting in 2012.

Biostar's Chairman and Chief Executive Officer, Mr. Ronghua Wang noted, "Based on the terms of this 12-month distribution agreement which starts in January 2012, we anticipate booking annual sales of RMB 30.4 million from the sale of our products to Huikang Pharmaceuticals. Additionally under the agreement, Huikang Pharmaceuticals may gradually increase volume of monthly orders when demand for the specified products is strong."

Mr. Wang added, "As we continue to face strong competition, we are taking steps to increase our market share by seeking additional agreements to partner with well-established and geographically diverse distributors of pharmaceutical products. Additionally, we will continue to distribute our products through our large network which covers 25 provinces, and our sales team of over 300 people."

Comments & Business Outlook

Tue, 15 Nov 2011 05:00:00 GMT

Third Quarter 2011 Results

Net sales increased 22.8% to $24,779,420 from $20,178,917;
Gross margin was 69.9% as compared to 72.9%;
Income from operations increased 23.1% to $5,938,341, compared to $4,822,405; and,
Net income increased 30.0% to $4,463,737, or $0.16 per diluted share, compared to $3,433,454, or $0.13 per diluted share.

Mr. Wang added, "We continue to execute our strategy to grow our Company organically and through acquisitions. On the organic side, during the first nine months of 2011 we have expanded our geographic coverage by adding three new provinces into our network, for a total of 25 provinces, and have increased our rural presence in the province of Shaanxi to over 11,800 sales outlets. To further increase our market share, we have expanded our sales force to over 300 people and increased our advertising spending. Additionally, we continue to invest in the development of several innovative products. Our team of 30 scientists and researchers continues to develop new products and we currently have seven OTC products and prescription drugs in our pipeline. Clinical trials for all seven have been completed and await State Food and Drug Administration approval."

Mr. Wang concluded, "In addition, we recently completed the acquisition of Shaanxi Weinan for an aggregate cash price of RMB 61 million (approximately $9.62 million). This acquisition increased our portfolio of drug approvals and permits by an additional 86 drugs (60 prescription drugs and 26 OTC drugs) and one health product. Currently, we are manufacturing seven products at Shaanxi Weinan's facilities and we plan to start manufacturing four more in early 2012. As previously announced, we expect to generate at least $5 million in net sales in 2012 from the newly acquired product line."

Reaffirming 2011 Guidance

Biostar reaffirmed its previously announced 2011 guidance for top-line growth of 20-25%. By year end, the Company expects to have 13,000 rural sales outlets, an increase of 3,000 from 2010 year-end.

Investor Alert

Tue, 01 Nov 2011 04:00:00 GMT

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On October 25, 2011, the Company received a letter from the Nasdaq Stock Market (“Nasdaq”) notifying the Company that for the past 30 consecutive business days, the bid price for the Company’s common stock has closed below the minimum $1.00 per share requirement set forth in Nasdaq Listing Rule 5450(a)(1). Pursuant to the October 25, 2011 letter from Nasdaq, the Company has been granted a 180 calendar day grace period to regain compliance and, therefore, had until April 23, 2012 to regain compliance with the minimum bid price requirement. To regain compliance, the bid price for our common stock must close at $1.00 or higher for a minimum of 10 consecutive business days within the 180 day grace period.

Acquisition Activity

Tue, 25 Oct 2011 04:00:00 GMT

XIANYANG, China, Oct. 25, 2011 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a developer, manufacturer and marketer of pharmaceutical and health supplement products for a variety of diseases and conditions, today announced that on October 20, 2011, it completed the previously announced acquisition of Shaanxi Weinan Huaren Pharmaceuticals, Ltd. for an aggregate cash price of RMB 61 million (approximately USD$9.62 million). Additionally, the name of the acquired company changed to Shaanxi Weinan Aoxing Pharmaceuticals, LLC. ("Shaanxi Weinan").

Following the completion of this acquisition, Biostar increased its portfolio of drug approvals and permits with an additional 86 drugs (60 prescription drugs and 26 OTC drugs) and one health product.

Ronghua Wang, Biostar's Chairman of the Board and Chief Executive Officer noted, "With the closing of this transaction, we have completed a significant step towards achieving our growth strategy of expanding our product portfolio and increasing our market share. Shaanxi Weinan's state-of-the-art facility has five production lines, a high-tech laboratory, and is located approximately 60 miles from our Xianyang facility."

Mr. Wang added, "The acquisition of Shaanxi Weinan's portfolio will also help us further diversify our product mix. We will continue to manufacture and market Shaanxi Weinan's existing products: Fosfomycin Calcium (prescription drug used to fight urinary tract infections), Huangyangning Tablets (prescription drug used for the treatment of cardiovascular disease), Zhitong Tougu Plaster Cream (OTC cream used as a pain reliever), Jiakangling Capsule (prescription drug used for the treatment of hyperthyroidism), Qianlietong Capsule (prescription drug used to diagnose benign prostatic hypertrophy), Wenweishu Capsules (prescription drug used to treat chronic gastritis), and Huaren Changweitong Capsule (health product used to improve gastrointestinal function).

"Furthermore, based on the results of market research we recently conducted, we plan to start to manufacture and market a number of new products including: Compound Paracetamol and Amantadine Hydrochloride (OTC drug used to fight the common cold), Danshen Tablets (prescription drug used for the treatment of coronary heart disease), Piracetam Tablets (prescription drug used for the treatment of cerebrovascular disease), Erythromycin Estolate Coated Particles (prescription drug used as anti-bacterial anti-inflammatory). We expect to make these products available in the market in the next four months. Most of these drugs target widespread diseases and conditions affecting all ages, are sold in local pharmacies and hospitals in China, are included in the National Essential Medicines List and in most cases, are covered by personal health insurance."

Mr. Wang noted, "Currently, these drugs are being manufactured and sold by several pharmaceutical companies in China and competition we are facing is formidable. We plan to utilize our extensive distribution network which covers 25 provinces, over 11,000 rural medical sales outlets in the Shaanxi province and our sales team of over 300 people, to aggressively promote these products by offering them at prices lower than our competitors. Our platform is supported by China's $124 billion healthcare reform plan launched in 2009 with accessibility and affordability being the two major government guidelines of this plan. Additionally, our goal is to continue to take advantage of the New Rural Medical Care Cooperative Program launched by the Chinese government in 2008, and benefit from an increased number of patients seeking cures through medicines offered in hospitals and healthcare centers."

Mr. Wang concluded, "In 2012, we expect to generate at least $5 million in revenues from the newly acquired company. As previously announced, the acquisition of Shaanxi Weinan is expected to be accretive to 2012 earnings."

Pictures of the Shaanxi Weinan facility and laboratory can be found at our website by clicking the following link: http://www.biostarpharmaceuticals.com/newsdisp.asp?id=131

Acquisition Activity

Tue, 11 Oct 2011 04:00:00 GMT

XIANYANG, China, October 11, 2011 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a developer, manufacturer and marketer of pharmaceutical and health supplement products for a variety of diseases and conditions, today announced that its wholly owned subsidiary, Shaanxi Aoxing Pharmaceutical, Ltd., entered into a Share Transfer Agreement ("Agreement") to acquire Shaanxi Weinan Huaren Pharmaceuticals, Ltd. ("Shaanxi Weinan") from the holders of 100% of equity interests in Shaanxi Weinan. The aggregate purchase price is RMB 61 million (approximately USD$9.62 million), all cash and payable in several tranches, as discussed in detail below.

Shaanxi Weinan owns drug approvals and permits for a portfolio of 86 drugs and one health product, all of which, following the completion of this acquisition, will be added to the Company's current drug portfolio. The Company anticipates to complete this acquisition on or before October 31, 2011, after all the closing conditions are met, as discussed below (the "Closing").

Pursuant to the terms of the Agreement, the Company agreed to pay cash purchase consideration as follows:

RMB 30 million (approximately USD$4.73 million) was deposited with the Equity Holders on December 29, 2010,
RMB 15 million (approximately USD$2.37 million) will be paid to the Equity Holders within three (3) business days as of the Closing Date (as defined below), provided they completed their respective share transfer registration with the applicable PRC authorities within 15 days of this Agreement, and
RMB 16 million (approximately USD$2.52 million) upon (i) the completion of the audit (by the auditing firm appointed by the Company) of Shaanxi Weinan's financial statements for 2009 and 2010 and confirmation of its 2009 and 2010 revenues of at least RMB 21 million and RMB 28 million, respectively, and of the net profit after tax of at least 15%, and (ii) the Equity Holders have paid their respective individual income and other applicable taxes for the transfer of the Equity Ownership to be completed within 2 months of this Agreement, and have performed certain additional obligations under the Agreement, and (iii) there are no material change in the operations or finances of Shaanxi Weinan, at closing of the proposed acquisition.

Ronghua Wang, Biostar Pharmaceutical's Chairman of the Board and Chief Executive Officer noted, "The Shaanxi Weinan's portfolio of 86 drugs and one heath product, does not, for the most part, overlap with our current product line. This acquisition should enable us to further increase our market share in the 25 provinces where we currently distribute and expand into the remaining provinces. Upon closing, we will start marketing many of these products using our extensive sales network, which covers 25 provinces and over 11,000 rural medical sales outlets. This acquisition is expected to be accretive to earnings in 2012."

Comments & Business Outlook

Mon, 15 Aug 2011 04:00:00 GMT

Second Quarter 2011 Results

Total net sales in 2Q2011 increased 33.6% from 2Q2010 to $25.9 million. Total net sales in 1H2011 increased 29.7% from 1H2010 to $41.2 million.
Diluted earnings per share were $0.15 and $0.20 for the 2Q2011 and 2Q2010, based upon 27,783,978 and 27,797,012 diluted common stocks outstanding, respectively.
Non-GAAP diluted earnings per share were $0.20 and $0.21for 2Q2011 and 2Q 2010 respectively.

SECOND QUARTER AND FIRST HALF 2011 FINANCIAL SUMMARY:


	2Q2011 ($M except EPS)	2Q2010 ($M except EPS)	Change (%)	1H2011 ($M except EPS)	1H2010 ($M except EPS)	Change (%)
Net sales	25.9	19.4	33.6%	41.2	31.8	29.7%
Gross profit	18.6	14.4	29.5%	29.3	23.9	22.6%
Income from operations	6.0	7.5	-21.0%	9.7	10.7	-9.3%
Net income	4.2	5.6	-25.6%	6.9	7.8	-12.3%
Non-GAAP net income¹	5.5	5.8	-6.0%	8.4	8.2	1.6%
Diluted EPS	0.15	0.20	-25.0%	0.25	0.28	-10.7%
Non-GAAP diluted EPS¹	0.20	0.21	-4.7%	0.30	0.30	-

Looking ahead, with our expanded sales network, enhanced brand positioning and diversified product portfolio, we remain confident about the company's business outlook. We maintain the previously provided guidance for top-line growth of 20-25% for our fiscal year ending December 31, 2011. We anticipate to continue improving our operations to drive growth and increase value for our shareholders."

Analyst Reports

Mon, 25 Jul 2011 04:00:00 GMT

Rodman and Renshaw on BSPM 7/25/2011

Termination of Coverage

Effective immediately, we are terminating coverage on Biostar Pharmaceuticals, Inc. (BSPM) to better allocate resources within our coverage universe. Our last rating on Biostar was Market Outperform/Speculative Risk with a Target Price of $7.00. Investors should not rely on our previously published financial projections.

INVESTMENT THESIS

Biostar is a Chinese pharmaceutical company that is focused on developing, manufacturing and marketing pharmaceutical products and health products in China. The company has a portfolio of ten marketed products. Biostar’s flagship product Xin Aoxing Oleanolic Acid Capsule targets the largest hepatitis B market in the world. Xin Aoxing is one of the few SFDA approved over the counter (OTC) drugs in China to treat hepatitis B. In 2010, the company recorded $53MM in sales, representing 66% of total revenue. With continuous aggressive marketing effort, sales of Xin Aoxing are estimated to reach $64MM in 2011, a 20% growth YoY. The company reported $80MM in total revenues in 2010, and we estimate $98MM in sales in 2011, representing a 23% growth over 2010.

Additionally, Biostar has established an extensive marketing network with 21 distributors and over 270 sales people. Through direct-to-consumer advertising, Biostar has established a regional brand name and has penetrated 22 provinces. By the end of 2010, Biostar reported a total of 10,000 rural clinics that are included in the network. The company is expected reach 13,000 rural clinics in 2011.

Valuation

INVESTMENT RISKS

Biostar faces risks similar to other Chinese companies in the pharmaceutical industry, including changes in regulatory and health policies, delays in regulatory approval, clinical trial failure, and insufficient funds for long-term sustainability.

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member SIPC.
Member FINRA.

Analyst Reports

Sun, 24 Jul 2011 04:00:00 GMT

Rodman & Renshaw on BSPM

Termination of Coverage

INVESTMENT THESIS

Valuation

INVESTMENT RISKS

Biostar faces risks similar to other Chinese companies in the pharmaceutical industry, including changes in regulatory and health policies, delays in regulatory approval, clinical trial failure, and insufficient funds for long-term sustainability.

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Investor Presentations

Tue, 19 Jul 2011 04:00:00 GMT

Biostar Pharmaceuticals, Inc. (the “Company’) is furnishing the slides that accompany the Company’s investor presentation in this Current Report on Form 8-K, pursuant to this Item 7.01, as Exhibit 99.1, and are incorporated herein by reference. The presentation will be made by the Company at the 2011 Global Hunter Conference on July 18-19, 2011 at the InterContinental Hotel, San Francisco.

Notable Share Transactions

Mon, 13 Jun 2011 04:00:00 GMT

BioStar also provided preliminary results for its share repurchase program. As of the close of business on June 10, 2011, Mr. Wang had repurchased approximately 115,000 shares at an average price per share of US$1.26. As background, BioStar announced on May 25, 2011, that its Board of Directors has approved Chief Executive Officer and Chairman of the Board, Mr. Ronghua Wang, to adopt a repurchase of up to 200,000 shares of the Company's common stocks effective from June 1, 2011 to November 11, 2011. For more information related to Mr. Wang's repurchase, please refer to the Company's press release "Biostar Pharmaceuticals, Inc. Approves Share Repurchase Plan; CEO Adopts 10b5-1 Trading Plan" dated May 25, 2011.

Notable Share Transactions

Wed, 25 May 2011 04:00:00 GMT

XIANYANG, China, May 25, 2011 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM), Xianyang-based manufacturer of a leading over-the-counter Hepatitis B medicine, Xin Aoxing Oleanolic Acid Capsules ("Xin Aoxing Capsules"), and a variety of pharmaceutical products, today announced that, following the Board's approval, the Company's Chief Executive Officer and Chairman of the Board, Ronghua Wang, has adopted a stock trading plan in accordance with the guidelines specified by Exchange Rules 10b5-1 and 10b-18 and other legal SEC legal requirements under the Exchange Act.

The Plan is effective as of June 1, 2011 and is valid through November 11, 2011. Under this plan, Mr. Wang may purchase up to 200,000 shares of the Company's common stock, subject to certain conditions. The timing and actual number of shares repurchased will depend on a variety of factors including regulatory restrictions on price, manner, timing, and volume, corporate and other regulatory requirements and other market conditions in an effort to minimize the impact of the purchases on the market for the stock. There can be no assurance that any shares will be repurchased either through plan or otherwise.

Rule 10b5-1 permits corporate officers, directors and others to adopt written, pre-arranged stock trading plans when they are not in possession of material, non-public information. These plans allow insiders to have shares bought or sold for their accounts over a period of time regardless of any material, non-public information they may receive after adopting their plans.

Mr. Wang stated, "The Board's authorization of the share repurchase plan reflects our confidence in the strength and confidence we have in the fundamental strength of our business. We remain strongly committed to maximizing the long-term shareholder value and realizing the full potential of our business and operations."

As of May 25, 2011, Biostar had approximately 27.4 million shares of common stock outstanding.

Comments & Business Outlook

Mon, 16 May 2011 04:00:00 GMT

SUMMARY FINANCIALS

First Quarter 2011 Results (unaudited)
	2011	2010	CHANGE
Net Sales	$15.3 million	$12.4 million	+24%
Gross Profit	$10.7 million	$9.5 million	+12%
GAAP Net Income Adjusted Non-GAAP Net Income*	$2.7 million $2.9 million	$2.3 million $2.4 million	+20% +20%
GAAP EPS (Diluted) Adjusted Non-GAAP EPS (Diluted)*	$0.10 $0.11	$0.08 $0.09	+20% +20%
Excluding non-cash stock-based compensation charge of $0.2 million for Q1 2011 and $0.2 for Q1 2010. For more information about the non-GAAP financial measures contained in this press release, please see "About Non-GAAP Financial Measures" below*.

Business Developments

Biostar continued to expand its reach into the rural market, which has less competition and pharmaceutical consumption per capita is almost 10% of urban areas. As of March 31, 2011, Biostar has opened 10,000 rural sales outlets in 22 provinces. The Company plans to include all 10 of its products at all rural locations, in addition to select pharmaceuticals from other producers, in order to drive incremental revenues through existing locations, while improving profitability.

Aoxing continued to grow by contributing $11.1 million of sales, a 20% increase from 2010. The Company plans to add 130 new staff to the sales team during 2011 which would bring the total number to 400 and will continue to make meaningful investments in its marketing strategy, by incorporating television, print and radio across multiple provinces. Aoxing is currently sold in 22 provinces and the management team plans to expand into four additional provinces, including Hainan, Hunan, Guangxi, and Zhejiang during 2011.

Biostar launched 5 new products during 2010, including health products such as Tangning Capsule, Yizi Capsule, Shengjing Capsule and Aoxing Ointment. Total revenue from new products was approximately $0.7 million during the first quarter of 2011. In early April 2011, the Company's Zushima Analgesic spray, a pain reliever product intended for use by military personnel passed the examination of Chinese military drug administration. Currently the Company is preparing for the additional required documents and expects to receive the final approval and license to produce in Zushima Analesic spray in late 2011.

"We are optimistic about 2011 and the ability to sell through all of our products through a robust distribution channel and rural sales network. We are confident in meeting our target for the year of 20-25% growth in revenues year-over-year.

Liquidity Requirements

Mon, 16 May 2011 04:00:00 GMT

Based on our current plans for the next 12 months, we anticipate that the sales of the Company’s pharmaceutical products will be the primary organic source of funds for future operating activities in 2011. However, to fund continued expansion of our operation and extend our reach to broader markets, and to acquire additional entities, as we may deem appropriate, we may rely on bank borrowing, if available, as well as capital raises.

CFO Trail

Tue, 12 Apr 2011 04:00:00 GMT

On April 6, 2011, Deyin Chen, the Chief Financial Officer of Biostar Pharmaceuticals, Inc. , tendered his resignation as the Company’s CFO effective immediately. Mr. Chen’s departure was not due to any disagreement with the Company, but due to his intention to pursue other professional and personal opportunities. The Company is thankful to Mr. Chen for his service as the Company’s CFO and wishes his success in his future endeavors.

Effective as of April 7, 2011, the Board of Directors of the Company appointed Mr. Zack Zibing Pan as the Company’s Chief Financial Officer.

Comments & Business Outlook

Fri, 25 Mar 2011 04:00:00 GMT

Fourth Quarter Results:

Revenue for the fourth quarter of 2010 increased 65.7% to approximately $28.2 million compared to $17.1 million for the fourth quarter of 2009.

"We are very pleased to report solid operating progress for both the fourth quarter and full year, which was supported by robust revenue growth across several products. We implemented a broader marketing strategy for our flagship Xin Aoxing Capsule, complemented by our expansion into more retail locations in rural areas. This enabled us to achieve record sales and earnings for the year," commented Ronghua Wang, Chairman and Chief Executive Officer of Biostar. "We expect to have 13,000 rural locations by the end of 2011, up from approximately 10,000 at the end of 2010, and believe this sales channel will further drive incremental growth for the year."

Operating income for the fourth quarter of 2010 totaled approximately $7.9 million, a 146% increase from $3.2 million reported for the fourth quarter of 2009
Adjusted Non-GAAP net income for the fourth quarter was $6.3 million, or $0.24 per diluted common share vs. $0.12 the year before.

Investor Presentations

Fri, 18 Feb 2011 05:00:00 GMT

Please see the February 18th, 2011 released investor presentation.

Analyst Reports

Mon, 13 Dec 2010 05:00:00 GMT

Rodman & Renshaw on BSPM 12/13/2010

On Track to Achieve 4Q10 & Full Year Guidance

Key Points:

Biostar reported unaudited updates on sales and rural distribution network.
The company reported combined revenue of $18.3MM in October and November 2010, a 68% increase YoY.
Sales of the flagship product Xin Aoxing were $12.4MM, representing a 67% growth YoY.
Rural distribution network surpassed 9,500 clinics, on track to reach 10,000 by YE10.
We reiterate our Market Outperform Rate with a 12-month target price of $7 per share.

Maintains Strong Revenue Growth in the World’s Largest Hepatitis B Market

Biostar’s flagship product Xin Aoxing targets the largest hepatitis B market in the world. The market for hepatitis B drugs could potentially grow multiple fold from current $700MM in China. Xin Aoxing is one of the few SFDA approved OTC drugs for the treatment of hepatitis B. The OTC classification allows Biostar to conduct direct-to-consumer (DTC) advertisement campaigns and to build regional brand name. Sales of Xin Aoxing reached $12.4MM in October and November. We previously projected $50MM in Xin Aoxing sales in 2010. Given reported sales of $47.2MM in the first 11 months, we believe Biostar is likely to beat our estimates on Xin Aoxing sales in 2010.

2010 Revenue Guidance Achievable

The company guided to $80MM in sales for 2010. Since sales of $70MM were recorded in the first 11 months, the company is expected to achieve $10MM in sales in December. Historically, the fourth quarter is the strongest and December is the strongest sales month. We believe the company is on track to meet its 2010 guidance.

Marketing Efforts Fuel Growth

Biostar has established an extensive marketing network with 21 distributors and over 280 sales people. Through DTC advertising, Biostar has established a regional brand name and has penetrated 22 provinces. In 3Q10, Biostar reported a total of 8,500 rural clinics that are included in the network. In October and November, Biostar added an additional 1,000 rural clinics. We believe the company is on schedule to reach 10,000 by YE10, as guided.

Valuation

We derive our valuation for Biostar based on an analysis of P/E multiples of comparable companies. Companies with similar growth opportunities are currently trading at approximately a 9X P/E multiple. By applying a 9X P/E multiple to our 2011 EPS estimates, the estimated value of Biostar would be $7/share.

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Analyst Reports

Fri, 19 Nov 2010 05:00:00 GMT

Rodman & Renshaw on BSPM

Investment Opinion

We are initiating coverage of Biostar Pharmaceuticals with a Market Outperform / Speculative Risk rating and a 12-month target price of $7/share. Biostar has established strong historical revenue growth with its flagship product Xin Aoxing targeting the world’s largest hepatitis B market. The company’s future growth could be driven by increasing market penetration of Xin Aoxing in addition to a pipeline of smaller marketed products.

Intend to Dominate the World’s Largest Hepatitis B Market

Biostar’s flagship product Xin Aoxing targets the largest hepatitis B market in the world. One third of the world’s hepatitis B patients reside in China. The market for hepatitis B drugs could potentially grow multiple fold from current $700MM in China. Xin Aoxing is one of the few SFDA approved OTC drugs for the treatment of hepatitis B. In addition, the OTC classification allows Biostar to conduct direct-to-consumer (DTC) advertisement campaigns and to build regional brand name. Sales of Xin Aoxing reached $35MM in 1-3Q10, contributing 67% of total revenue. In our opinion, Xin Aoxing could reach $50MM in sales in 2010 and $80MM in 2013.

Marketing Efforts Fuel Growth, Survey Supports Strong Potential

Biostar has established an extensive marketing network with 21 distributors and over 280 sales people. Through DTC advertising, Biostar has established a regional brand name and has penetrated 22 provinces and over 8,500 rural clinics. Our survey on 16 out of 21 distributors suggests strong growth potential for the key product based on brand name recognition and customer loyalty. The company plans to increase market penetration by expanding its sales network to 10,000 rural clinics by YE10, and to 26 provinces by YE11.

China’s Healthcare Initiative to Drive Demand

China’s economic growth is predicted to outpace the rest of the world in 2010 and 2011. Chinese pharmaceutical industry is a key contributor to overall growth. Based on the announced $124B healthcare budget for 2009-2011, we believe the potential demand for pharmaceutical products could increase by six-fold in 2010.

Valuation

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

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Comments & Business Outlook

Fri, 19 Nov 2010 05:00:00 GMT

Biotar Pharmaceuticals, Inc. today provided an update on preliminary sales for October and November 2010.

Biostar's preliminary estimates of its combined revenues for October and November 2010 shows that the revenues for the period increased 68% to approximately $18.3 million, compared to $10.9 million for the same period of 2009.

Sales of Xin Aoxing Capsules, Biostar's flagship product, increased by 67% to $12.4 million or 68% of total unaudited revenue for the first two months of the fourth quarter 2010.

Similarly, the Company estimates its unaudited revenues for the first 11 months of 2010 to be $70.2 million, approximately 88% of the Company's full year revenue guidance of $80 million, an increase of 49% compared to the same period of last year. Xin Aoxing's sales were $47.2 million, growing 47% during the first 11 months of 2010. The Company continued its expansion into rural communities in China with products now being sold at over 9,500 locations as of November 30, 2010, up approximately 12% from the end of the third quarter ending September 30, 2010.

"Historically for our Company, the fourth quarter is the strongest sales quarter and December is the strongest sales month. Strong reorders for Xin Aoxing in new markets, driven by a successful advertising program, and supported by sales growth in several other products gives us confidence we will meet our 2010 guidance. We are also on track to meet our 10,000 location target for the rural expansion program and believe this sales channel will drive incremental growth during 2011," commented Ronghua Wang, Chairman and Chief Executive Officer of Biostar. "We will continue to maintain stringent credit terms with our customers to enhance working capital. At the same time, we are working on expanding Xin Aoxing's delivery format to include an injectable form, which we expect to be more effective when applied to patients diagnosed with acute or severe Hepatitis B."

The revenue and other financial estimates contained in this press release have not been audited or reviewed by our independent certified public accountants and accordingly they express no opinion or other form of assurance as to this information. The Company provides no assurance that these preliminary estimates will not change following the Company's completing the fourth fiscal quarter of 2010 and the financial audit of such results of operations, or that such changes will not be material.

Liquidity Requirements

Mon, 15 Nov 2010 05:00:00 GMT

As of September 30, 2010, we had cash and cash equivalents of approximately $16.6 million. We believe our existing cash and cash equivalents will be sufficient to maintain our operations at present level for at least the next twelve months.

Comments & Business Outlook

Mon, 15 Nov 2010 05:00:00 GMT

Third Quarter 2010 Results (unaudited)
	2010		2009		CHANGE
Net Sales	$	20.2 million	$	15.6 million		+29.7	%
Gross Profit	$	14.7 million	$	12.0 million		+22.9	%
GAAP Net Income	$	3.4 million	$	3.1 million		+9.8	%
Adjusted Non-GAAP Net Income*	$	3.5 million	$	3.1 million		+11.9	%
GAAP EPS (Diluted)	$	0.13	$	0.13		--
Adjusted Non-GAAP EPS (Diluted)*	$	0.13	$	0.13		--

"We were pleased with the balanced growth across several products in our portfolio which resulted in a near 30 percent revenue growth and strong cash flow,” commented Ronghua Wang, Chairman and Chief Executive Officer of Biostar. “The third quarter results are a testament to increased customer acceptance of many of our new products, our growing brand recognition and our ability to leverage the proper distribution channels. As we strive to optimize our sales and marketing strategies and enter additional rural markets, we anticipate further growth for our products.”

Financial Guidance

The Company is reiterating its 2010 sales and net income guidance of $80 million and $18 million, respectively.

Comments & Business Outlook

Mon, 25 Oct 2010 04:00:00 GMT

Biostar Pharmaceuticals, Inc. today announced it has expanded its rural distribution network in the third quarter ended September 30, 2010 to 8,500 locations, an increase of approximately 21.4% from the second quarter ended June 30, 2010.

Biostar sees significant opportunities created by the state-implemented New Rural Cooperative Medical System to expand its rural distribution network. As of September 30, 2010, 10 of the Company's products were available for sale in approximately 8,500 rural retail locations across 22 provinces. Based on current internal projections, management expects the Company's rural retail distribution to double over the next few years. Sales to rural markets grew 66% in the first half of 2010 to $4.8 million, representing approximately 15% of total sales.

"We continue to expand our rural distribution network aggressively," commented Ronghua Wang, Chairman and Chief Executive Officer of Biostar. "With the PRC government allocating nearly $5.6 billion to expand basic medical services to all 900 million rural farmers by 2010, Biostar is well positioned to capitalize on this secular growth opportunity. We see many more years of healthy growth as more Chinese consumers have access to our products and our brand awareness continues to grow. Expanded rural distribution, coupled with strong growth in existing markets, makes us confident in reaching our 2010 sales and net income guidance of $80 million and $18 million, respectively."

Investor Presentations

Tue, 14 Sep 2010 04:00:00 GMT

On September 13, 2010, the Registrant delivered a presentation at the Rodman & Renshaw Annual Global Investment Conference in New York City.

Comments & Business Outlook

Mon, 23 Aug 2010 04:00:00 GMT

Financial results of the second quarter ended June 30, 2010.

Revenue increased 46.4% to $19.4 million.
2010 Non-GAAP adjusted net income increased 50.9% to $5.8 million.
Adjusted EPS of $0.21 vs. $0.16.

"We are pleased to report another quarter of strong revenue growth, which benefited from the 42% growth in sales of our flagship product. We are seeing dividends from the resources allocated to expand brand recognition and awareness for our Xin Aoxing Capsules as a preferred medical treatment for Hepatitis B in China," commented Ronghua Wang, Chairman and Chief Executive Officer of Biostar. "The addition of new rural network locations and our nutritional supplement product line is anticipated to generate incremental revenues for the balance of 2010. Collectively, our growth plan gives us confidence in meeting our 2010 guidance."

"We are making progress on all aspects of our business. We expect to receive the final approval to produce Zushima Analgesic Spray in October. With $30 million in anticipated capacity, we expect to generate $3 million in revenue for fiscal 2011 and to grow at least 50% for the coming years. We will remain focused on expanding our sales footprint, branding our leading products, while introducing higher margin products, which we believe will collectively drive further growth and increased profitability," concluded Mr. Wang.

Biostar reiterates guidance for 2010:

Revenue expected to be between $80.0 to $82.0 million.
Net income between $18.0 to $20.0 million.

Please note: On July 6, 2010, GeoTeam removed all Chinese stocks that were on GeoBargains and GeoSpecial lists to respective Radar lists as we complete our "quality assessment."

Research

Tue, 20 Jul 2010 04:00:00 GMT

Our intent over the short-term is to build a check list to assess the risk position of firms in the ChinaHybrid space. For the time being this will consist of the following: (this list is likely to grow substantially)

-Is the company's auditor ranked in the top 100?
-Is the auditor located in the U.S.A? If located in China the PCAOB (Public Company Oversight Board) may be denied access to investigate the practices of the auditing firm. Short sellers have been using this information as a tool to validate their opinions.
-Are the company's internal controls satisfactory?
-Are their any outstanding legal issues?
-Do the company's top ten customers represent less than 10% of revenues?
- Operating cash flow divided by current liabilities is greater than one. The higher the better.

- Cash divided by current liabilities. This is an the most conservative liquidity ratio. The higher the better

- Is the company buying back stock?
- Chinese filings match respective SEC filings.(In process)

Criteria	Meets Criteria	Notes
Top 100 Auditor	Yes; Top 10	Mazars CPA Limited (member of the Praxity alliance which ranks among the top 10 of international accounting firms)
Auditor Located U.S.A	No	Hong Kong
Satisfactory Internal Controls	Yes	Based upon their controls evaluation, our CEO and CFO have concluded that our Disclosure Controls are effective at a reasonable assurance level.
No Legal issues	Yes	None Found
Customer Concentration	n/a	n/a
Cash Flow Ratio is Greater than 1	No	0.42
Cash Ratio is Greater than 1	Yes	1.54
Buying Back Stock/Insider Buying	No	n/a

Short term and risk adverse investors should be aware of the quality issues currently present in the ChinaHybrid Space, questioning the validity of what seem like solid fundamental stories. It is beginning to get ugly so be cautious and understand that more pain may have to be endured, as ChinaHybrids are easy prey for short investors. The broad brush that is being applied to theses stocks appears unfair, but we can’t ignore the psychological impact this can have on investors’ portfolio decisions. If history is our guide, fear will eventually create an immense opportunity to invest in the companies that prove they can meet quality litmus tests enact shareholder friendly moves. Credibility can also be restored if independent legal/SEC opinions validate accounting practices currently in question.

We have yet to verify if the Chinese filings for ChinaHybrid stocks we monitor match respective SEC filings. We are in the process of completing this task. Conservative investors may want to limit exposure or buy put options on stocks, that have this availability, as insurance against long positions, until we publish our findings. Odds are we will identify some promising companies that will fail this litmus test.

Comments & Business Outlook

Mon, 07 Jun 2010 04:00:00 GMT

First quarter 2010 Conference call Excerpts:

Management would like to reiterate revenue guidance for 2010 of $80 million to $82 million and net income between $18 million to $20 million. This represents between 54.1% to 53.8% revenue growth and between 71.4% to 90.5% net income growth year-over-year. Management is expecting increasing demand in existing markets and the new market development of our Xin Aoxing capsule will be the major contributor of year-over-year revenue growth. We launched Beijing and Shanghai markets in the first quarter and then four new markets, including Xinyan, Shaanxi; Xinyang, Su; Hubei in Guangshen Provinces in early April. We believe these new markets will drive significant revenue growth and enable us to gain incremental market share in the latter of 2010. In addition, we expect the Mei pude acquisition to contribute asset acquisition to contribute approximately $3 million in incremental revenue during 2010.
We continue to make progress on all facets of our business and continue to stress our competitive advantage. Our efforts and investment to emphasize sales and marketing will further enhance the market leadership of our Xin Aoxing capsule and increase the sales of our products (unintelligible) our distribution network, including the rural supply network. In addition, our research and development efforts to maximize product development activities will expand our product pipeline. We believe that our emphasis of broadening our product pipeline, coupled with our enhanced sales and marketing effort, and the planned expansion of (inaudible) will continue to yield significant increases in revenue in the second quarter of 2010 and beyond.
We spent more on advertising expense during the first quarter. The results will be seen in the second quarter on the revenue growth. We, usually we can… we usually accomplish 40% of our revenue projection by the end of second quarter and then the rest of the 60% in the second half of the year. And, in terms of net income, we expect to reach about 20% of our net revenue to… net income to revenue percentage during the second quarter of 2010. So we are very confident we can meet this projection.
You have seen our growth from the year 2008 to 2009 and we have been always (unintelligible) on our projection, to meet our projection. We have created returns to the shareholders. In terms of our current cash and then the revenue generated from operations, will be enough for us to meet the 2010 guidance. As far as the additional financing, we remain flexible on this issue, but we don’t have a specific plan on this.

See full transcript...

GeoSpecial Notes

Wed, 02 Jun 2010 04:00:00 GMT

Added to the GeoSpecial list on August 14, 2009 @ $3.85

Catalyst: Leader in its industry with strong competitive advantage
Peak performance: Reached a high of $5.51 on April 23, 2010.
Current Price: $3.50

Current road block: Dilution; Sub par first quarter 2010 margin performance; Regulatory issues.

Remains on the GeoSpecial list. The company has reiterated its guidance, which should bode well for EPS comparisons in 2010, especially during the second half of the year. The company put to rest negative rumors regarding its standing with China regulatory bodies.

Comments & Business Outlook

Mon, 17 May 2010 04:00:00 GMT

    -- Q1 2010 revenue increased 66.0% to $12.4 million
    -- Q1 gross margins were 77.0%, a 1,270-basis point improvement
    -- Q1 2010 Non-GAAP adjusted net income increased 32.1% to $2.4 million
       with adjusted EPS of $0.09
    -- Biostar reiterates guidance for 2010: Revenue expected to be between
       $80.0 to $82.0 million and net income between $18.0 to $20.0 million

"We are pleased to report another quarter of strong revenue growth, as Biostar gains further brand recognition and awareness for our Xin Aoxing Capsules. With momentum in several key markets, we are confident that this flagship product is becoming known as one of the major medical treatments for Hepatitis B in China," commented Ronghua Wang, Chairman and Chief Executive Officer of Biostar. "We are optimistic that with our continued expansion into new markets, supported by comprehensive marketing and distribution strategies, including direct sales, we are in position to leverage our product portfolio for optimal growth." Wang concluded.

GeoSpecial Notes

Tue, 27 Apr 2010 04:00:00 GMT

For those following BSPM, it is no secret by now that there was a rumor flying around about the suspension of their main oleanic acid drug in Shaanxi Province. It is quite possible that the stir and unusual trading activity was created by some news and blog sources (These are translated versions of the pages):

Source 1

Source 2

This morning, BSPM issued a press release addressing this matter:

"On April 22, 2010 the Shaanxi SFDA published on its website a notification stating that the marketing language used in connection with several pharmaceutical products sold in the province are not within approved parameters."

The good news is that the company has swiftly remedied the problem:

"The Company has made proper modifications to its sales and marketing materials and has accordingly received a new advertising approval for its Xin Aoxing from the Shaanxi SFDA on April 27, 2010."

"The notification has not disrupted production or sales of Xin Aoxing and is not expected to have any impact on previously announced fiscal 2010 revenue and net income guidance."

Since BSPM was trading above $5.00, we are optimistic that shares will gravitate back to those levels and may offer a short-trading opportunity for investors.

Comments & Business Outlook

Mon, 01 Mar 2010 05:00:00 GMT

"2009 was a very positive year for Biostar. The success of our marketing strategy for our Xin Aoxing Oleanolic Acid Capsule ("Xin Aoxing Capsule") helped us achieve the best financial results in our company's history for 2009," commented Chairman Mr. Ronghua Wang. "We also experienced growing sales for our other products as we penetrated China's rural markets. For 2010, our focus is on driving higher sales volumes of Xin Aoxing Capsule in the existing and new provinces we serve, introducing new products, and leveraging our rural network sale strategy to generate incremental revenue growth," added Mr. Wang.

4th Quarter 2009 Guidance Ending December ^a

	4th Quarter 2009 Guidance	4th Quarter 2008 Reported	Period Change
GAAP Revenue	$52.0 to $54.0 million	$15.8 to $17.8 million	55.8% to 75.5%
Non-GAAP Operating Income ^b	$4.11to $5.11 million	$2.97 million	38.4% to 72.1%
Non-GAAP EPS	$0.12 to $0.16 ^c	$0.10	20.0% to 60.0%
Fully Diluted Shares	25.05 million ^d	23.33 million	7.4%

FULL YEAR 2009 Guidance Ending December^a

	Full Year 2010 Guidance	Period Change	Full Year 2009 Guidance	Period Change	Full Year 2008 Reported
GAAP Revenue	$69.0 to $71.0 million	32.7% to 31.5%	$52.0 to $54.0 million	53.3% to 59.2%	$33.9 million
Non-GAAP Operating Income^b	n/a	n/a	$16.0 to $17.0 Million	105.1% to 117.9%	$7.8 million
Non-GAAP Net Income^b	$16.2 million to $17 million	33.3%	$12.1 to $12.8	80.1% to 91.0%	$6.7 million
Non-GAAP EPS	$0.62 to $0.65 ^c	22.1%	$0.51 to $0.53 ^c	96.0% to 103.8%	$0.26
Fully Diluted Shares	26.1 million	8.9%	23.96 million ^d	3.0%	23.26 million

Source: PR Newswire (February 25, 2010) (March 1,2009)

^a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

^b Non-GAAP EPS figures generally exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures. The GeoTeam® non-GAAP figures apply a 25% and 36% tax rate for Chinese and United States companies respectively.

^cThe company provided 2009 operating income guidance and 2010 net income guidance. The GeoTeam provided implied EPS figures from this data as well as implied full year 2009 net income figures.

^dGeoTeam assumption.

Special Situations

Tue, 08 Dec 2009 05:00:00 GMT

Notes from Brean Murray, Carret & Co. China Growth Conference on November 19, 2009

Our second interview of the day was with the CEO of Biostar Pharmaceuticals (OTCBB:BSPM). The Company demonstrated that it has a coherent understanding of its markets and the steps necessary to accelerate growth.

Biostar is a pharmaceutical company that manufactures & distributes 15 nonprescription, prescription and nutraceutical products.

Biostar's Appeal

We are most excited about three aspects of Biostar's story.

First of all, BSPM flagship Hepatitis drug is the only-over-counter option available in China. According to the BSPM two other companies have the license for such a drug, but failed to compete due lack of market of awareness. For example, one of its competitors, in an effort to cut costs, chose to market tablets versus Biostar's choice to produce capsules. In the end the less effective tablet product failed to garner favor, and Biostar's choice to first focus on quality obviously paid off.

We asked management if this favorable insulation from competition can continue.

Answer:

First, the Chinese government is not issuing anymore OTC hepatitis licenses and is also limiting advertising campaigns for for prescription hepatitis manufacturers.

Secondly, China is encouraging Pharma companies to educate and provide hepatitis treatment to the neglected rural regions where Hepatitis is much more prevalent. BSPM intends to respond to this significant market opportunity by being an early entrant into the rural areas.

Finally, the Company recently completed a capital raise enabling it to construct a raw materials processing facility. This vertical move may help Biostar achieve the following benefits:

The Company's goal is to utilize 25% of raw material production internally.
BSPM may generate another source of revenue as it will sell the remaining 75% externally.
Margins should improve.
Supply disruption risks may be mitigated.

Our next question revolved around the current BSPM product pipeline, particularly the addition of 3 over-the-counter drug, 2 prescription drugs and 3 to 5 nutraceuticals. We asked the Company how it plans to grow with what might be perceived as a small pipeline and its current mature product portfolio?

Answer:

"We have a conservative management structure that is concerned primarily with quality and not quantity of products. There are several ways we can still enjoy rapid growth with our current structure. First, we don’t have full China coverage which we expect to gain within two years. Second, our penetration into into the rural areas offers a whole new avenue of growth for new and seasoned product portfolio. Third, we can consider making acquisitions of distributors to increase our market presence into areas we are not serving."

We were also pleased to learn that it takes BSPM as little as one month to push a product through a distribution network.

Our last inquiry touched upon the status of Biostar's capacity utilization?

Answer: At 100% capacity Biostar can approach a $100 million annual revenue run rate. "We are currently operating at 60% with goals of reaching 80% in 2010."

In summary, what we have is a conservative management team with aggressive goals to grow via market penetration, emphasizing product quality and control of its raw material supply.

Investors may begin to notice BSPM if it continues to build on the EPS momentum established in the previous two quarters of 2009, boasting growth in excess of 100%. Income from operations targets of $15.9 million for 2009 and $21.1 million for 2010 affirms that Biostar will continue to post solid earnings gains in the upcoming year.

With implied 2010 EPS of $0.71 and a current price of $3.15, BSPM is selling at a P/E of 4.4 in a sector that is gaining steam. Thus, both value and growth investors may find the BSPM an intriguing play.

Special Situations

Tue, 24 Nov 2009 05:00:00 GMT

Excerpt From GeoBargain & GeoSpecial Review article, November 17, 2009.

Biostar Pharmaceuticals (OTC BB:BSPM) Closing Price Nov. 16, 2009: $3.16

Added to the GeoSpecial List on August 17, 2009 at $3.80.
Has yet to perform

Biostar Pharmaceuticals announced the closing of a $3.6 million equity financing on November 6, 2009. The proceeds will be used to fulfill Biostar’s vertical integration strategy to “manage and control a large portion of its production which includes harvesting, raw material processing, pharmaceutical ingredient synthesizing and finally medicine manufacturing in our current facility.”

The GeoTeam is speculating that the end result should lead to increased sales and margins. The Company also reaffirmed its income from operations make-good targets of $15.9 million for 2009 and $21.1 million for 2010. At a share price of $2.95, the stock is selling at a meager P/E of 5.67 on the GeoTeam’s calculated 2010 fully taxed EPS of $0.52. This is a situation that value investors may find favorable.

Special Situations

Thu, 12 Nov 2009 05:00:00 GMT

Biostar Pharmaceuticals (OTC BB:BSPM), GeoSpecial

The Company reported a sharp increase for its 2009 third quarter financial results.

Year Ends December	3rd Quarter 2009	3rd Quarter 2008	Period Change
GAAP Revenue	$15.6 M	$7.5 M	108.0%
GAAP Net Income	$3.1 M	$559.2 T	454.4%
GAAP EPS	$0.13	$0.02	550.0%

On November 6, 2009, BSPM announced that is on track to meet its make-good provisions, which call for income from operations of $15.9 million for 2009 and $21.1 million for 2010.

BSPM has reported 2009 nine months net income of $8.8 million. This implies that fourth quarter net income will be around $3.0 million (with a 25% tax rate) and EPS of around $0.11

See BSPM new release