Biostar Pharmaceuticals, Inc. (OTC:BSPM)

XIANYANG, China, Aug. 23, 2018 (GLOBE NEWSWIRE) -- Biostar Pharmaceuticals, Inc. (BSPM) (the “Company”), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China, announced today that on August 16, 2018, it received a notification letter from Nasdaq Listing Qualifications (“Nasdaq”) advising the Company that, since it had not filed its Quarterly Report on Form 10-Q for the second quarter ended June 30, 2018, this matter serves as an additional basis for delisting the Company’s securities from The Nasdaq Stock Market.

Previously, on April 19, 2018 and May 23, 2018, the Company received notification letters from Nasdaq advising the Company that, since it had not filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018, the Company was not in compliance with Nasdaq Listing Rules.

On July 19, 2018, the Company received a delisting determination letter from the Nasdaq advising the Company that following review of the Company’s plan of compliance, the Nasdaq staff determined to delist the Company’s common stock from the Nasdaq Capital Market.

On July 26, 2018, the Company requested a hearing before the Nasdaq Hearings Panel (the "Panel") to appeal the delisting determination from the Nasdaq staff.  On August 10, 2018, the Company was granted an extended stay as to the suspension of the Company's common stock from trading by the Panel until the Company's scheduled hearing before the Panel on September 13, 2018 and issuance of a final Panel decision.

As a result of the latest Form 10-Q filing delinquency, the Panel will consider this matter in rendering a determination regarding the Company's continued listing on The Nasdaq Capital Market. Pursuant to Listing Rule 5810(d), the Company plans to present its views with respect to this additional deficiency at the hearing.

The Company is working assiduously to complete its delinquent filings with SEC and to regain compliance with the Rule as soon as possible.

XIANYANG, China, Feb. 21, 2018 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced its plans to launch a new e-commerce sales platform (the "Sales Platform") following nearly ten months of research and preparation. The Company intends to complete this platform by the end of March 2018 and launch it during the second fiscal quarter of 2018. The Sales Platform will take a full advantage of various IT trends, including the latest trending content, sharing economy, innovative promotion of traditional and new e-commerce, Wechat business distribution system, etc. The Company will also include its B2C online shopping mall within the Sales Platform to promote its product line.

"The Sales Platform is a result of our ongoing research and development effort," said Mr. Wang Ronghua, the Chairman of Biostar. "This platform is designed to assist the Company in its effort to expand market share and to increase visibility of our product line. We intend to complete this platform by the end of March 2018 and will be officially put into operation in the second quarter of this year."

XIANYANG, China, Feb. 7, 2018 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that its variable interest entity in China, Shaanxi Aoxing Pharmaceutical Co., Ltd. ("Aoxing"), has renewed its Good Manufacturing Practices (GMP) certificate and Pharmaceutical Production License. The Company received the renewed GMP certificate evidencing compliance on January 31, 2018.

Mr. Wang Ronghua, the Chairman of Biostar, stated: "The Company is pleased to have completed the GMP certification inspection and approval process. We expect that the GMP certification renewal will allow us to resume our production in the coming months as the Company makes preparations to carry on with the implementation of its business plan and growth objectives."  

XIANYANG, China, Nov. 15, 2017 /PRNewswire/ - Biostar Pharmaceuticals, Inc. (BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced its financial results for second quarter ended June 30, 2017.

During the fiscal second quarter of 2017, the Company recognized:

No net sales, a decrease of approximately $0.6 million or 100% as compared to the same period in 2016.
No gross profit, a decreased of approximately $0.3 million or 100% as compared to the same period in 2016.
Net loss of $1.3 million as compared to net loss of $6.9 million for the same period in 2016.
The Company had no sales on all Aoxing Pharmaceutical products in the three months ended June 30, 2017 as Aoxing Pharmaceutical temporarily stopped production to conduct maintenance of its production lines to renew its GMP certificates. The application for the renewal of Aoxing Pharmaceutical's GMP certificates has been preliminarily approved and publicly announced by the local government in October 2017, subject to the final approval to be granted before the end of 2017, at which time the production is expected to resume. There is no assurance that the production lines at Aoxing will resume as and when expected and that the GMP certificates will be renewed as and when anticipated, or even if such certificates are renewed, the Company will be able to return to the anticipated production levels, which, in turn, may have material adverse effects on the Company's business, operations, financial performance and value of its securities. The Company also had no sales on Shaanxi Weinan's products during the second quarter of 2017 due to replacing production equipment to comply with government's environmental protection requirements. The Company currently anticipates resuming the production of Shaanxi Weinan production lines before the end of 2017. The above-referenced suspensions of the Company's production lines have materially negatively affected the Company's operating results; as a result, there may be substantial doubt regarding the Company's ability to continue as a going concern.  If the Company is unable to renew its GMP certificates and resume production as and when anticipated, its operations will be materially negatively affected and the Company might become insolvent, and the Company's revenues, operations and the value of its common stock and common stock equivalents would be materially negatively impacted; the Company may substantially curtail or cease its operations.

First Quarter 2017 Financial Results

• No net sales, a decrease of approximately $0.8 million or 100% as compared to the same period in 2016.
• Loss per Share Basic and Diluted was $0.38 vs. last years same quarter of $0.28.

The Company had no sales on all Aoxing Pharmaceutical Products in the three months ended March 31, 2017 as Aoxing Pharmaceutical temporarily stopped production to conduct maintenance of its production lines in order to renew its GMP certificates which is expected to be renewed in the second quarter of 2017 at which time the production is expected to resume. There is no assurance that the production lines at Aoxing will resume as expected and the renewal of GMP certificates will occur when anticipated, or even if such certificated are renewed, the Company will be able to return to the anticipated production levels, which, in turn, may have material adverse effects on our business, operations, financial performance and value of its securities. The Company also had no sales on Shaanxi Weinan's products during the first quarter of 2017 due to replacing production equipment to comply with government's environmental protection requirements. The Company currently anticipates that the production of Shaanxi Weinan products will resume in the second quarter of 2017. The temporary suspension of production has materially negatively affected the Company's operating results; as a result, there may be substantial doubt regarding the Company's ability to continue as a going concern. 

Third Quarter 2016 Financial Results

• Net sales of $0.6 million, a decrease of approximately $3.6 million, or 84.7% as compared to the same period in 2015.
• Net Loss Per Share Basic and Diluted $(0.71) vs. last years same quarter of $(0.51).

XIANYANG, China, Oct. 12, 2016 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China, announced today that it entered into a securities purchase agreement (the "Securities Purchase Agreement") with certain institutional investors for the sale of 425,000 shares of common stock in a registered direct offering at the price of $4.50 per share. In addition, warrants to purchase 212,500 shares of common stock in the aggregate will be issued to the investors. The warrants will be exercisable six months and one day from the date of the closing of the offering at an exercise price of $5.55 per share and expire 3 1/2 years from the date of issuance.

Gross proceeds of the offering, before deducting placement agent fees and other estimated offering expenses payable by the Company, are expected to be approximately $1.91 million.  The net proceeds from this offering will be used for working capital and other general corporate purposes.

The completion of the offering is expected to occur on or before October 17, 2016, subject to customary closing conditions. FT Global Capital, Inc. served as the exclusive placement agent for the offering.

The securities are being offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and base prospectus. The shelf registration statement relating to these securities was declared effective by the Securities and Exchange Commission on January 3, 2014. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission.

XIANYANG, China, Oct. 11, 2016 /PRNewswire/ - Biostar Pharmaceuticals, Inc. (BSPM) ("Biostar"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that it will launch its new topical health product called "Easy Breathing" designed to treat rhinitis and sinusitis for sales in the PRC in November 2016. Rhinitis is irritation and inflammation of the mucous membrane inside the nose. Sinusitis is an inflammation or swelling of the tissue lining the sinuses.

This new product was developed by the Company's R&D team over the past 3 years. Having being developed based upon the principles of the traditional Chinese medicine, the product is designed to have effects of relieving stuffy nose, inhibiting nasal bacteria and viruses, and mitigating effects on the inflammation of nasal mucosa. It will be manufactured, distributed and sold in the PRC.

Wang Ronghua, Biostar's Chairman commented: "This new product was developed by our R&D personnel in response to market demand. It offers the benefits of low cost and short course of treatment. In connection with the launch of this product, we intend to utilize the Internet marketing and advertising, including WeChat and other similar media."

The Chairman continued: "In the past several months, we have been preparing various steps necessary for the launch of this new product. Though we do not anticipate any significant sales revenue in 2016, we expect to sell approximately 400,000 units within the next 2 years, which is expected to yield approximately RMB50 million (or US$7.5 million)."

XIANYANG, China, Sept. 22, 2016 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer of pharmaceutical and health supplement products, and Xianyang Yongsheng Health Products Co., Ltd., a privately held PRC-based health product manufacturer located in Xianyang, China ("Xianyang Yongsheng"), announced today that they have entered into a non-binding Letter of Intent under which Biostar intends to acquire 100% of equity interest in Xianyang Yongsheng in exchange for (i) a cash payment, the amount of which is to be determined following completion of the due diligence review of the target, and (ii) issuance of shares of Biostar's restricted common stock, subject to regulatory limitations. The contemplated acquisition is subject to completion of due diligence review, customary definitive documentation and requisite corporate and regulatory approvals. The final terms of the proposed acquisition will be available upon the execution of the definitive documents. The companies seek to complete this transaction in the second half of 2016.

Xianyang Yongsheng has three production lines, including health "Yuye" wine (a popular brand in the PRC market), tea and capsules, and maintains a 24-acre Chinese herbal medicine ecological park.

Mr. Wang Ronghua, the Chairman of Biostar, commented, "We have been following the developments of the health industry and it appears that the consumer interest for health products based upon the principles of the traditional Chinese medicine have been increasing in recent years. This contemplated acquisition is aimed at increasing the Company's R&D development and productions capabilities as well as at improving the profitability of the Company's current product line."

Second Quarter 2016 Financial Results

• Net sales of $0.6 million, a decrease of approximately $13.6 million, or 95.6% as compared to the same period in 2015.
• Net loss of $6.9 million as compared to net loss of $0.5 million for the second quarter 2015.

The Company's sales for the three months ended June 30, 2016 was derived from products manufactured by its subsidiary Shaanxi Weinan.  Aoxing's manufacturing operations remained temporarily halted as it still awaits the renewal of GMP Certificates; the Company does not have a definitive date of when the GMP renewal certificates will be secured.  It is currently using its best efforts to comply with inspections and regulating authorities.  To conserve capital as result of diminished sales and related cash flows, the Company has significantly reduced advertising and research activities during the three months ended June 30, 2016. As result of the Company's materially reduced sales, working capital deficit of $2,060,971 and cash balance of $207,110, the Company has determined that there is substantial doubt as to our ability to continue as a going concern. If the Company is unable to renew its GMP certificates and subsequently achieve regular production levels, the Company's results of operations may be materially adversely affected.

*The Company's Condensed Consolidated Balance Sheets, Statement of Operations, and Cash Flows can be found at the end of this press release. Please also refer the Company's Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission for further information regarding the Company's results of operations.

First Quarter 2016 Financial Results

• Net sales of $0.8 million, a decrease of approximately $6.1 million, or 88.4% as compared to the same period in 2015.
• Net loss per share Basic & Diluted $(0.28) vs. last years same quarter of $(0.07)

The sales of Shaanxi Weinan's products increased during the three months ended March 31, 2016 as compared to the same period in 2015. After Shaanxi Weinan received the renewed GMP certificate in June 2015, the sales volume has been slowly climbing back to the anticipated volume. There were no sales for Aoxing Pharmaceutical Products and hospital products as the Company has temporarily stopped production for the maintenance of its production lines in order to renew its GMP certificates, which is expected to be completed by the second quarter of 2016. Net sales and related gross profit both decreased significantly as result of these maintenance efforts. In anticipation of reduced sales volume as result of decreased production capacity, the Company temporarily suspended all advertising and research activities during the three months ended March 31, 2016.

XIANYANG, China, April 15, 2016 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced its financial results for the year ended December 31, 2015.

During the fiscal year of 2015, the Company recognized:

• Net sales of $27.1 million, a decrease of approximately $34.3 million, or 55.8% as compared to the year of 2014.
• Gross profit decreased by approximately $19.2 million, or 63.3% as compared to the year 2014.
• Net loss of $25.1 million as compared to net income of $4.8 million for the year 2014.
• Impairment loss on loan receivables of $8.8 million, approximately 32.6% of net sales.
• Impairment loss on intangible assets of $3.0 million.
• R&D expenses of approximately $4 million, as compared to $2.8 million for the year of 2014.

The Company experienced a material decrease in sales volume of all Aoxing Pharmaceutical Products in the year ended December 31, 2015 when compared to the year ended December 31, 2014, as Aoxing Pharmaceutical has temporarily halted production in order to conduct maintenance on its production lines for the purpose of renewing its GMP certificates by the second quarter of 2016. During 2015, the Company reviewed its drug permits and identified certain permits that the Company did not have plans to produce in the foreseeable future; accordingly, the Company has fully impaired the carrying value of those drug permits. Also, the Company has determined the unsecured loans provided to a third party borrower are uncollectible as the borrower has become insolvent, and thus, the Company recognized those receivables as impaired. The interruption in production has materially negatively affected our operating results; as a result, there may be substantial doubt regarding the Company's ability to continue as a going concern. Net sales and related gross profit both decreased significantly in the year of 2015 as result of these maintenance efforts.

XIANYANG, China, Feb. 24, 2016 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (BSPM) ("Biostar"), a PRC-based developer, manufacturer and marketer of pharmaceutical and health supplement products in China, today announced that on February 22, 2016, NASDAQ notified the Company that it had regained compliance with continued listing Rule 5550(a)(2), which requires a minimum bid price of $1.00 for continued listing on the NASDAQ Stock Market and that the matter was now closed.    

            Ronghua Wang, Biostar's Chairman and CEO, commenting on the announcement, stated that "Regaining compliance with NASDAQ's minimum bid price rule is a significant achievement for the Company. With this issue behind us, the Company's management will continue to pursue its objective of maximizing shareholder value and strengthening the Company's core business."

XIANYANG, China, Feb. 16, 2016 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar"), a PRC-based developer, manufacturer and marketer of pharmaceutical and health supplement products in China, today announced that on February 5, 2016, before the busy Chinese Lunar New Year, the first TV advertisement for the Company's product, Speranskia Analgesic Cream, was broadcast on China's Central Television news channel (CCTV-1) as a part of the Company's advertising campaign.

CCTV-1 broadcasts a range of programs and is available to television viewers from Beijing, China. As part of CCTV Network, China's only state owned national broadcasting television station, CCTV-1 is the most influential media outlet in China with one of the highest viewership and ratings.

Speranskia is a plant genus of the family Euphorbiaceae, with the entire genus endemic to China. The Company developed a cream formulation that is intended to joint pain relief by topical application of the cream; the Company holds a PRC patent for the cream formulation. The TV advertisement for this product is the first of its kind relating to the Company's products to appear on China's TV broadcasts. The purpose of this advertisement effort was to increase the Company's profile and widen its brand/product recognition. The Company anticipates repeated broadcasts of the TV advertisement for this product after February 20, 2016.

Mr. Ronghua Wang, Chairman and CEO of Biostar, commented: "We are excited to have launched the advertising campaign on CCTV during one of most watched TV seasons in China. This is the first time a Biostar product was featured on a national level. We are hopeful that the CCTV exposure will increase brand and product recognition of the Company and its product line."

XIANYANG, China, Feb. 5, 2016 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (BSPM) ("Biostar" or "the Company"), a PRC-based developer, manufacturer and marketer of pharmaceutical and health supplement products in China, today announced that its Board of Directors unanimously approved a reverse split of its common stock at a ratio of 1-for-7, with anticipated trading on the post-split basis on NASDAQ commencing at the open of the stock market on February 5, 2016.

Accordingly, as of the effective date of the reverse split, each seven shares of issued and outstanding common stock and equivalents will be converted into one share of common stock. In addition, the common stock will trade under a new CUSIP number. The reverse stock split will become effective upon the filing of the Company's Articles of Amendment to its Articles of Incorporation with the State of Maryland.  The foregoing action has been duly approved by unanimous written consent of Biostar's Board of Directors pursuant to the Maryland General Corporation Law, without stockholder approval requirement.

As a result of the reverse stock split, the number of outstanding common shares will be reduced to approximately 2.21 million.  Fractional stockholdings will be rounded up to the nearest whole number.  The reverse stock split will affect all stockholders uniformly and will not affect any stockholder's ownership percentage of the shares of the Company's common stock.  Biostar stockholders should contact their broker or Biostar's transfer agent, Interwest Stock Transfer Company at (801) 272-9294, for instruction relating to the reverse stock split procedures.

The purpose of the reverse stock split is to raise the per share trading price of the Company's common stock to regain compliance with the minimum $1.00 continued listing requirement for the listing of its common stock on The NASDAQ Global Market.  As previously announced, in order to maintain the Company's listing on Nasdaq, on or before February 22, 2016, the Company's common stock must have a closing bid price of $1.00 or more for a minimum of 10 prior consecutive trading days. 

There can be no assurance that following the reverse split, the Company's common stock will remain above the $1.00 per share minimum for the requisite period or, even if it does so, that the reverse stock split will have the desired effect of raising the closing bid price of the Company's common stock prior to the compliance deadline of February 22, 2016 to regain listing compliance.

Third quarter of 2015 Financial Results

• Net sales of $4.2 million, a decrease of approximately $10 million, or 71.2% as compared to the same period in 2014.
• Comprehensive (loss) income Basic and Diluted was $(0.08) vs. last years same quarter of $0.02.

The Company experienced a material decrease in sales volume of all Aoxing Pharmaceutical Products during the three months ended September 30, 2015. Aoxing Pharmaceutical experienced temporarily suspension in manufacturing to conduct maintenance on its production lines as part of its continued efforts to gain renewal of its GMP certification for its Aoxing Pharmaceutical production lines by January 2016, so that normal production can resume by February 2016. Net sales, and related gross profit both decreased significantly during the quarter ended September 30, 2015, as result of these maintenance efforts.

Mr. Ronghua Wang, Chairman and CEO of Biostar Pharmaceuticals, Inc. commented, "We are in the process of renewing our three GMP certifications and we currently expect the renewal process to be completed by January 2016. In the meantime, we have adopted a series of measures to help our company navigate this process by reducing operating expenses and improving cash management."

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

On August 24, 2015, Biostar Pharmaceuticals, Inc. (the “Company”) received a notification letter (the “Notice”) from Nasdaq Listing Qualifications (“Nasdaq”) advising the Company that based upon the closing bid price for the Company’s common stock for the past 30 consecutive business days, the Company no longer complied with the minimum $1.00 per share Nasdaq continued listing requirement set forth in Nasdaq Listing Rule 5555(a)(2) (the “Minimum Bid Price Rule”). The Notice also stated that the Company would be provided 180 calendar days, or until February 22, 2016 (the “Compliance Deadline”), to regain compliance with the Minimum Bid Price Rule. To do so, the bid price of the Company’s common stock must close at or above $1.00 per share for a minimum of 10 consecutive business days prior to that date.

If the Company does not regain compliance by the Compliance Deadline, the Company may be eligible for additional time to regain compliance. To qualify for such additional time, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. If and to the extent the Company meets these requirements, the Nasdaq staff may grant an additional 180 calendar days. If, however, the Company is unable to cure the deficiency, or if the Company is otherwise not eligible, the Company’s securities will be subject to delisting. At that time, the Company may appeal the delisting determination to a Hearings Panel.

The Company cannot provide any assurance that its common stock will trade at levels necessary to regain and maintain compliance with the Minimum Bid Price Rule before the Compliance Deadline. The Company intends to continue to monitor the bid price for its common stock. If the Company’s common stock does not trade at a level that is likely to regain compliance with the Nasdaq requirements, the Company’s Board of Directors will consider other options that may be available to achieve compliance.

XIANYANG, China, Aug. 19, 2015 /PRNewswire/ --

Financial Highlights for the Three and Six Months ended June 30, 2015

• $14.2 million and $21.1 million net sales for the three and six months ended June 30, 2015, respectively
• $5.9 million and $9.5 million in gross profits for the three and six months ended June 30, 2015, respectively
• $1.0 million and $2.0 million spent on research and development during the three and six months ended June 30, 2015, respectively
• $0.5 million and $0.6 million net losses for the three and six months ended June 30, 2015, respectively

Biostar Pharmaceuticals, Inc. (BSPM) ("Biostar", "we" or the "Company"), a producer and marketer of pharmaceutical and health supplements to treat a variety of illnesses and ailments, with operations in China, today announced its result of operations for the three and six months ended June 30, 2015.

The Company has spent significant time and resources in the first half of 2015 to repair and maintain its production lines at both of its Aoxing and Weinan subsidiaries. The maintenance efforts led to a temporary decline in production capacity, and, in turn, a decline in the Company's total sales volume as compared to the same period in 2014. Accordingly, the Company's results of operations show a temporary decline in sales revenue during both the three and six months periods ended June 30, 2015.On June 25, 2015, Weinan received renewed GMP certificates from the government. As of the date of this press release, maintenance on Aoxing's and Weinan's production lines has been completed, and production capacity has returned to its normal levels. During the three and six month periods ended June 30, 2015, the Company determined to focus a greater proportion of its production capacity on the manufacturing of prescription drug subcontracted from a hospital; accordingly, sales revenue for hospital products comprised a larger relative proportion of the Company's revenues as a whole. For the three and six month periods ended June 30, 2015, there was a general decrease in the costs of sales which was attributable to the decline in sales revenue caused by the downtime for maintenance and repair of the production lines, as mentioned above; however, because fixed overhead is allocated to cost of sales, the decline was relatively less than the decline in sales. Gross profit for the three and six month periods ended June 30, 2015, when compared to the same period in 2014, experienced decreases of 17.1% and 27.1%, respectively; these decreases in gross profit are directly correlated to the decreases in sales revenues as mentioned above. Operating expenses for the three and six months ended June 30, 2015 as compared to 2014 decreased by 20.4% and 31.8%, respectively. The significant decline was the result of the absence of the one-time impairment loss on accounts receivable that was recognized in 2014. The Company's net losses for the three and six month period ended June 30, 2015 was approximately $0.5 million and $0.7 million, as compared to net income of $1.6 million $1.9 million for the same period in 2014. The decrease from net income earned by the Company in 2014 to incurring net losses in 2015 is directly related to the decreased sales volume as result of decreased production capacity during the downtime incurred for maintenance and repair conducted on production lines.

Mr. Ronghua Wang, Chairman and CEO of Biostar Pharmaceuticals, Inc.noted:"We have finished the maintenance and repairs of our production lines. We are content that our GMP certificates have been renewed. The Company believes that GMP certificates are a testament to our commitment to excellence in quality and safety in the manufacturing of pharmaceutical products. We increased our sales for contracted prescription drug manufacturing to a hospital as we believe our continued co-operation with the hospital will be valuable to our continued growth."

• Net sales in the fourth quarter of 2014 was $14.4 million as compared to $11.0 million during the same period in 2013, representing a $3.4 million, or 31.0% increase.
• Net income was $4.8 million; basic and diluted earnings per share was $0.33 vs. last years same quarter of $.07.

Mr. Ronghua Wang, Chairman and CEO of Biostar Pharmaceuticals, Inc. commented: "In 2014, we experienced double digit growth in both our top line and gross profit.  We believe our positive results are the fruits of labor from our loyal and experienced team at Biostar.  By hitting 16.5% growth in sales, we were able to achieve and exceed our internal sales targets. Despite certain write-offs and one off dispositions, we were able to achieve net profit margins of 7.89%.  We believe the Company has returned to normal sustainable profit margins after weathering the storm in 2012 that adversely affected our entire industry.  We do believe through market research and input from our customers, vendors, industry experts, we were able to adapt to the market by, among other things, developing and introducing several new products to the market.  We also executed on a new sales strategy which included rolling out revised incentive compensation structure for our sales team and sales channels."

"In 2015, the Company will continually re-examine its product portfolio to focus on high margin products and expand its national sales footprint.  The Company will look to grow sales for its products via e-commerce.  Of course, the Company will not remain static with its core competency the research and development of new drugs. The Company also believes that economies of scale is vital to continue to improve its bottom line; accordingly, when the right opportunity presents itself, the Company will consider acquiring competitors to ramp up its production." In closing, Chairman Wang noted: "We will make every effort to make 2015 a banner year so that we can bring superior returns to all of our stakeholders."

XIANYANG, China, January 8, 2015 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that on December 29, 2014, the Company signed a joint research and development agreement with Northwest University, one of China's leading comprehensive universities located in Xi'an city, Shaanxi Province, for further development of Danshensu Yibingzhi (IDHP), a Class One drug for treatment of cardiovascular diseases to further research and development efforts in connection with Danshensu Yibingzhi (IDHP).

Danshensu Yibingzhi (IDHP) was developed by Professor Xiaohui Zheng and his research team after 14 years of concerted research effort and was recently approved by the Education Department of Shaanxi Province and The Finance Department of Shaanxi Province for the further industrialization and marketization. Professor Zheng is the Company's Chief Scientist and is affiliated with Northwest University. There are currently two invention patents associated with Danshensu Yibingzhi (IDHP) (patent Nos. ZL200410026105.3 and ZL201010577073.9) both of which are held by Northwest University. Professor Zheng leads a large joint team that includes nearly 100 researchers from over twenty different organizations, including the University of Cambridge, King's College of London University, Peking University, Chinese Military Medical Science Academy of the PLA, the Fourth Military Medical University and Shaanxi People's Hospital, among others. The Company believes that Northwest University chose to cooperate and collaborate with the Company research team for further research and development of Danshensu Yibingzhi (IDHP) in light of the Company's own research and development track record with Danshen Granules, Zushima Analgesic Spray, Zhitong Tougu Plaster, Qianlietong, Hyperthyroidism Capsules, among others.

According to the statistics, there are more than 280 million Chinese patients (or approximately 20% of China's total population) are suffering from cardiovascular diseases. In light of this, the Chinese government set the prevention and treatment of cardiovascular and other diseases as a major development strategy since its most recently adopted "Eleventh Five-Year Plan." In particular, the governmental effort is directed to support development of innovative treatments and technologies and to challenge PRC's medical research and scientific communities to advance the field of available treatment options.

Mr. Ronghua Wang, Chairman and CEO of Biostar, commented on this development: "The PRC government set the prevention and treatment of cardiovascular and other related diseases as a national development strategy in its "Eleventh Five-Year Plan." In recent years, we have focused our efforts on researching and developing new drugs to treat cardiovascular and related diseases. We view our ongoing cooperation with Northwest University as a major step in this effort. We expect to continue our combined efforts on this project in the next five years. In that time period, we anticipate that various organizations/institutions and numerous experts in the field will join and/or participate in this research effort. The Company believes that our ongoing cooperation with Northwest University on this project will provide a solid foundation for the Company's efforts and development in this area in the years to come," Mr. Wang concluded.

• Net sales decreased by approximately $400,000 or 2.4% compared to the same period in 2013
• Net income per share Basic and Diluted was $0.02 vs. last years same quarter of $0.03.

Mr. Ronghua Wang, Chairman and CEO of Biostar Pharmaceutical, commented, "In the past six months, we launched production of several new drugs which resulted in the revenue increases in from Aoxing new products in this quarter by 253.5%, as compared to the same period last year. Strengthening of the marketing campaign of our new products is intended to capture a larger market share in this industry," he continued. "In addition, the gross margin of Xin Ao Xing Oleanolic Acid Capsule, our flagship drug for the treatment of chronic Hepatitis B virus (HBV), increased to 82.8% from 58.6%."

"In the last three months of 2014, we are in the process of building our sales team to market Biostar's proprietary drug products to hospitals," Chairman Wang continued. "We continue our focus on new drug development and innovative sales and marketing as we believe it contributes to the strength of our Company going forward," he concluded.

Item 4.01 Change in Registrant’s Certifying Accountant

Resignation of Clement C.W. Chan & Co.

On October 19, 2014, Clement C.W. Chan & Co. tendered its resignation as Biostar Pharmaceuticals, Inc.’s independent registered public accounting firm (“Clement”). Clement’s resignation will be effective as of November 15, 2014, following the Company’s filing of its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2014. Clement’s resignation as the Company’s independent auditors followed the Company’s determination to engage another independent auditing firm. The foregoing determination by the Company was made upon approval and recommendation of the Audit Committee of the Board.

Clement reported on the Company’s financial statements for the years ended as of December 31, 2013 and 2012, respectively. The Clement reports on the Company’s financial statements for such fiscal periods as of December 31, 2013 and 2012, respectively, did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles except that the Clement report on the Company’s financial statements for the fiscal year ended December 31, 2012 contained a going concern qualification, noting that there was uncertainty whether the Company was able to continue as a going concern as it depended on (1) whether the Company was able to re-establish customer confidence and to generate sales to a sustainable level and (2) the Company’s ability to collect outstanding accounts receivables. During the Company’s two most recent fiscal years ended December 31, 2013 and the interim period through the effective date of Clement’s resignation, (i) there were no disagreements with Clement on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to Clement’s satisfaction, would have caused Clement to make reference to the subject matter of such disagreements in its reports on the Company’s consolidated financial statements for such year, and (ii) there were no reportable events as defined in Item 304(a)(1)(v) of Regulation S-K.
 
The Company has provided Clement with a copy of the foregoing disclosures and requested that it furnish a letter to the Securities and Exchange Commission stating whether or not it agrees with the above statements. A copy of such letter is filed as Exhibit 16.1 to this Current Report on Form 8-K.

Engagement of Mazars CPA Limited

On October 19, 2014, the engagement of Mazars CPA Limited (“Mazars”), located at 42nd Floor, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong, as the Company’s new independent registered public accounting firm to audit the Company’s financial statements for the year ending December 31, 2014 was reviewed, recommended and approved by the Audit Committee, and will be effective as of November 15, 2014.

As previously reported, on January 8, 2013, Mazars tendered its resignation as the Company’s then independent registered public accounting firm following the Company’s inability to negotiate lower fees for Mazars’ services and the Company’s decision to engage another independent registered public accounting firm. During its engagement, Mazars reported on the Company’s financial statements for the years ended December 31, 2011 and 2010, respectively. The Mazars reports on the Company’s financial statements for such fiscal periods as of December 31, 2011 and 2010, respectively, and for the fiscal years ended December 31, 2011 and 2010, respectively, did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles. Also, during the Company’s fiscal years ended December 31, 2012 and 2011, respectively, and the interim period through the effective date of Mazars’ resignation, (i) there were no disagreements with Mazars on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to Mazars’ satisfaction, would have caused Mazars to make reference to the subject matter of such disagreements in its reports on the Company’s consolidated financial statements for such year, and (ii) there were no reportable events as defined in Item 304(a)(1)(v) of Regulation S-K.

XIANYANG, China, September 18, 2014 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or the "Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, announced today it has filed PRC national invention and creation patent for the pharmaceutical and preparation method of its new developed product, Oleanolic Acid Injection, which designed to treat Hepatitis B and liver cancer. The application passed the preliminary examination of the PRC State Intellectual Property Bureau and was accepted for review; the application acceptance number is 201410182757.7.

The filed patent is for the pharmaceutical and preparation method developed by the Company's R&D team, together with the experts of Shaanxi University of Chinese Medicine after nearly 2 years of research and development effort. It is one of drug development efforts by the Company in combating Hepatitis B and liver cancer and is currently under pharmacological research.

Mr. Ronghua Wang, Chairman of the Company commented: "The filing and acceptance for review of the invention patent application indicates that the Company had made considerable progress in developing its Oleanolic Acid Injection. This promises to establish technical foundation for the product's research and development and future expansion. The Company will continue to increase investment in its research and development efforts to generate effective drugs for the PRC markets."

XIANYANG, China, August 27, 2014 /PRNewswire/-- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, announced today that the Company has hired Professor Xiaohui Zheng as its chief scientist to preside over the Company's product development projects.

Professor Xiaohui Zheng, born in March 1968, is a professor and Director of the Engineering Research Center for the modernisation of Chinese herbal medicine at Northwestern University, and is mainly engaged in the traditional Chinese medicine compound effects of metabolism and composition analysis, biological chromatographic analysis of new technologies and innovative drug development.

In recent years, with key members of the Ministry of Science, he presided over a major new drug development, a chemical class of anti-cerebral ischemia DBZ drug, an anti-high altitude chemical class IDHP drugs study, earned national science and technology support program recognition for traditional Chinese medicine research, and other major scientific projects in China. At present, he has applied for seven Chinese patents, made five Chinese invention patents, submitted a PCT international patent application, and won the seventh Shaanxi Youth Science & Technology award amongst others.

The Company Chairman, Ronghua Wang, commented: "Professor Xiaohui Zheng is a senior academic expert with outstanding achievements in the research and development of traditional Chinese medicine, and is a rare talent, especially for liver cancer drugs. He has joined the Biostar R & D team for the development of new products, to enhance the Company's R & D capabilities, and also to enhance the visibility of the academic community for the future development of the Company. He will guide the development of the Company's product R & D team and will play a central role in promoting the strategic development of the Company," he concluded.

XIANYANG, China, August 4, 2014 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, announced today that it established a dedicated sales and marketing team for the purposes of developing and eventually expanding sales of the Company's Huangyangning tablets, hyperthyroidism and Wenweishu capsules to the top two tiered hospital facilities in ten PRC provinces, including, among others, in Beijing, Chongqing, Heilongjiang, Hebei and Henan provinces. To that end, in July 2014, the Company's opened a sales office in the high-tech development zone of Xi'an, the capital of Shaanxi province, which office, under the experienced management, will be primarily tasked with preparing sales and marketing team of as many as 200 sales representatives to target the top two tiered hospital facilities in the above-referenced PRC provinces.

"The establishment of our hospital marketing team will allow new sales channels for the Company's products. We believe that this step also lays a good foundation for introducing new products in such markets," commented Mr. Ronghua Wang, Chairman and Chief Executive Officer of Biostar Pharmaceuticals, Inc. "The Company's efforts will be directed to establish and strengthen the anticipated sales efforts to further the Company's market share and reach in those geographical regions," Mr. Wang concluded.

First Quarter 2014 Financial Results

• Revenue for the first quarter of 2014 increased 9.0% to approximately $13.2 million compared to $12.1 million for the first quarter of 2013.
• Diluted earnings per share were $0.02 for the first quarter of 2014 compared to $0.06 for the first quarter of 2013, based upon approximately 13.0 million and 10.0 million diluted common shares outstanding, respectively.

XIANYANG, China, April 1, 2014 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced its financial results for the fiscal year ended December 31, 2013.

Highlights for the Full Year 2013

• Total sales increased to $52.73 million, as compared to $49.32 million for the year ended December 31, 2012.
• Sales directly to hospitals were up 145% in 2013 to approximately $7.1 million as compared to $2.88 million in 2012
• Net income improvedto $809,046 for the full year 2013, compared with a net loss of $20 million for the full year 2012.
• Diluted earnings per share (EPS) for the full year 2013 was $0.06, compared with diluted loss per share of ($2.09) for 2012

Mr. Ronghua Wang, Chairman and CEO of BSPM, commented, "Fiscal year 2013 was a year of turnaround for Biostar as we achieved profitability as compared to the prior year. Thanks to our heightened controls in product safety as well as pricing adjustments for Xin Ao Xing Oleanolic Acid Capsule, our flagship drug for the treatment of chronic Hepatitis B virus (HBV), we believe we have regained the trust and confidence of our customers and stabilized our market share in the HBV segment, as evident by the increase in our sales volume. During the year, our sales to hospital increased 145% due to several new products which were launched and sold exclusively to hospitals in Shaanxi province since late 2012, In 2014, we expect to continue our current strategies by expanding our sales and distribution network, strengthening the research and development of new drugs, and investing in low risk, high margin and fast growing businesses. "

XIANYANG, China, March 10, 2014 /PRNewsiwre/ -- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, announced today that it entered into a securities purchase agreement (the "Securities Purchase Agreement") with certain institutional investors for the sale of 1,650,000 shares of common stock in a registered direct offering at the price of $2.49 per share. In addition, warrants to purchase 660,000 shares of common stock in the aggregate will be issued to the investors. The warrants will be exercisable immediately upon issuance at an exercise price of $3.23 per share and expire three years from the date of issuance. Gross proceeds of the offering, before deducting placement agent fees and other estimated offering expenses payable by the Company, are expected to be approximately $4.1million. The net proceeds from this offering will be used for working capital and other general corporate purposes.

The completion of the offering will occur on or before March 13, 2014. Moody Capital Solutions, Inc. and Axiom Capital Management, Inc. served as the placement agents for the offering.

The securities are being offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and base prospectus. The shelf registration statement relating to these securities was declared effective by the Securities and Exchange Commission on January 3, 2014. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission.

XIANYANG, China, March 6, 2014 /PRNewswire/-- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or "corporation"), a China-based manufacturer and marketer of pharmaceutical and health supplement products for a variety of diseases and conditions, announced that it has signed a letter of intent with the Research Institute of Pharmaceuticals at Shaanxi University of Chinese Medicine to develop a new liver cancer drug based on Oleanolic Acid injection.

In recent years, the new cancer cases and fatalities have been increasing sharply around the world, with China bearing the heaviest toll of this increase. According to the World Health Organization (WHO), there were 14 million new cancer cases and 8.2 million deaths around the world in 2012. China accounted for 3.07 million those new cancer cases, or 21.8% of the total, and 2.2 million deaths, or 26.9% of the worldwide figure. China's own estimates for the same periods are slightly higher than the WHO figures. New cases of cancer totalled 3.5 million with 2.5 million fatalities in 2012 according to records from China's National Cancer Registry.

The latest edition of the World Cancer Report also shows that, liver cancer, among lung, oesophagus and stomach, were the most common cancers for Chinese population. In 2012, about 50% of global liver cancer cases and 51% of worldwide deaths caused by liver cancer were recorded in China. One of the major causes for such alarming statistics is that China has more than 40 million Hepatitis B patients. Many of these Hepatitis B patients did not receive timely and proper care and treatment and, which as a result, lead to worsening their health conditions, including, among others, liver cancer.

The research of applying Oleanic acid to treat liver cancer has been well reported in United States in recent years. Biostar's research scientists have discovered that the "AO" factor existing in the Oleanic acid is remarkably effective in killing the Hepatitis B virus (HBV), and it may also be used to kill cancer cells.

"We are very glad to team up with Shaanxi University of Chinese Medicine to jointly develop Oleanolic Acid injection drug for liver cancer after numerous rounds of market research and in-depth discussion with many research institutions in China," commented Mr. Ronghua Wang, Chairman & CEO of Biostar Pharmaceuticals, Inc. " Research and development of a new medicine to treat and, hopefully, cure liver cancer has been the dream of our company for years. In order to make it successful, we intend to invest large amount of capital and resources to support this exciting research project in the near future."

XIANYANG, China, February 20, 2014 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products inChina for a variety of diseases and conditions, today announced that its preliminary estimate that, based on the Company's current review of the last fiscal year's results, its 2013 revenue growth is expected to exceed by 20% year over year while the Company expects to achieve break even or slightly profitable operating results, as compared with a nearly USD$21.8 million loss from operations in 2012. The Company is currently working with its auditors and will report the audited 2013 year-end financial result following SEC requirement.

XIANYANG, China, January 15, 2014 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that its PRC operating subsidiary was designated as the Shaanxi Province Liver Disease Health Education Base.

On January 9, 2014, Mr. Ronghua Wang, the CEO of the Company, attended the opening ceremony of Shaanxi Pharmaceutical and Health Products Cooperation Association held at Xi'an International Health Industrial Park headquarters, at which event Shaanxi Aoxing Pharmaceutical Co., Ltd., the Company's PRC operating subsidiary, was awarded several honors of Shaanxi Pharmaceutical and Health Products Cooperation Association Director Unit and was designated as the Shaanxi Province Liver Disease Health Education Base.

Shaanxi Aoxing Pharmaceutical Co., Ltd. has been engaged in the research and development of liver disease products for more than a decade. Its product, Aoxing No.1 Oleanolic Acid Capsule, enjoys solid reputation in Shaanxi and northwest region of China and its sales continue to consistently increase. At the end of 2013, Aoxing No.1 Oleanolic Acid Injection completed testing of production technology and product stability.

In connection with the foregoing award and designation, Mr. Wang commented that "the Company's designation as the Liver Disease Health Education Base will provide a new platform for promotion, research and development of our Hepatitis B product. We will seize this opportunity to expand the reach of our product line and to accelerate the new product development cycle. The incidence of Hepatitis B in China remains high. We strive to produce high quality treatment medication for the affected patients and intend to continue on this important, public health mission", he concluded.

XIANYANG, China, Jan. 10, 2014 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced the Company had established an office in Gansu Province, PRC, on January 6, 2014 with the focus on the sales of Hepatitis B products in three provinces, including Gansu, Qinghai and Tibet. These three provinces are located in the western region of China where pharmaceutical products historically have shown a consistently good sales track record primarily due to the relatively poor medical condition and corresponding high incidence of Hepatitis B among the residents of these provinces. With the ongoing expansion of the national health care reform, the Company established Gansu sales office to extend its sales effort to these provinces and to expand the Company's market share, which efforts mark the commencement of the Company's major marketing initiative in 2014. The Company expects that in 2014, this newly opened sales office will contributeUSD$4 million additional revenue of the Company. The marketing and administrative personnel are currently onsite undergoing training.

Mr. Ronghua Wang, the CEO of the Company stated that "although the 2012 capsule related events adversely affect our markets, after eighteen months, we observe market recovery and our sales of Hepatitis B products are now in line with our expectations. We established this new sales office to continue with our product sales expansion. In addition, we intend to establish an Inner Mongolia office to carry on with the product sales in Inner Mongolia and Ningxia after the Chinese New Year. Once that is completed, our product sale efforts will cover the entire country," he concluded.

S-3

There are being registered hereunder such indeterminate number of shares of common stock and preferred stock, such indeterminate principal amount of debt securities, such indeterminate number of warrants to purchase common stock, preferred stock and/or debt securities, and such indeterminate number of units as may be sold by the registrant from time to time, which together shall have an aggregate initial offering price not to exceed $35,000,000. If any debt securities are issued at an original issue discount, then the offering price of such debt securities shall be in such greater principal amount at maturity as shall result in an aggregate offering price not to exceed $35,000,000, less the aggregate dollar amount of all securities previously issued hereunder. Any securities registered hereunder may be sold separately or as units with the other securities registered hereunder. The proposed maximum offering price per unit will be determined, from time to time, by the registrant in connection with the issuance by the registrant of the securities registered hereunder. The securities registered hereunder also include such indeterminate number of shares of common stock and preferred stock and amount of debt securities as may be issued upon conversion of or exchange for preferred stock or debt securities that provide for conversion or exchange, upon exercise of warrants or pursuant to the anti-dilution provisions of any of such securities. In addition, pursuant to Rule 416 under the Securities Act of 1933, as amended (the “Securities Act”), the shares being registered hereunder include such indeterminate number of shares of common stock and preferred stock as may be issuable with respect to the shares being registered hereunder as a result of stock splits, stock dividends or similar transactions. 

Third Quarter 2013 Financial Results

• Revenue for the 3rd Quarter of 2013 was $15.01M, representing a substantial increase ($5.04M) over the same period of the prior year.
• Net income (loss) per share Basic and diluted was $0.03 vs. last years third quarter loss of $(0.63).

Ronghua Wang, Chairman of the Company stated, "Thanks to the efforts of our entire team and the continued support shown in our market channel by both consumers and our suppliers, for the nine months ended September 30, 2013, the Company achieved sales revenue of $41.75 million, cash flow from operations of $13.71 million, and net profits of $0.22 million. We will continue to operate in accordance with the highest industry standards while working to deliver high quality products to our customers as well as increasing returns for our stockholders in terms of earnings and share value."

XIANYANG, China, November 13, 2013 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ: BSPM) ("Biostar"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that on November 11, 2013, NASDAQ notified the Company that it had regained compliance Rule 5550(a)(2), which requires a minimum bid price of $1.00 for continued listing on the NASDAQ Stock Market and that the matter was now closed.

Ronghua Wang, Biostar's Chairman, commenting on the announcement, stated: "We strongly believe that regaining compliance with NASDAQ's continued listing requirements is an important achievement for the Company. Having resolved this issue, we can continue focusing on maximizing shareholder value and strengthening the Company's business going forward."

Second Quarter 2013 Financial Results

• Revenue for the second quarter of 2013 increased 79.6% to approximately $14.7 million compared to $8.2 million for the second quarter of 2012.
• Gross profit for the second quarter of 2013 were $6.9 million with gross margins of 47.0%, compared to $4.6 million in gross profit and gross margins of 56.0% for the second quarter of 2012.
• Loss from operations for the second quarter of 2013 totaled approximately $0.8 million, a 93.5% decrease from$12.2 million reported for the second quarter of 2012. Net loss was approximately $0.7 million for the second quarter of 2013, compared to $9.5 million for the second quarter of 2012. Diluted earnings per share were($0.06) for the second quarter of 2013 compared to ($1.01) for the second quarter of 2012, based upon 11.6 million and 9.4 million diluted common stocks outstanding, respectively.

"We continued positive momentum in the second quarter of 2013 with 79.6% year-over-year growth in sales," commented Ronghua Wang, Chairman and Chief Executive Officer of Biostar. "Although our net profit was impacted by a temporary decrease in sale price of Xin Aoxing Capsule as we were still in recovery from the gel capsule production setback during the first half of 2013, we are optimistic about our long-term outlook as Chinese healthcare industry is still in rapid growth and we continue our expansion of product portfolio."

First Quarter 2013 Financial Results

• Revenue for the first quarter of 2013 decreased 23.9% to approximately $12.1 million compared to $15.9 million for the first quarter of 2012.
• Net income was approximately $0.6 million for the first quarter of 2013, a 74.1% decrease compared to $2.2 million for the first quarter of 2012. Diluted earnings per share were $0.06 for the first quarter of 2013 compared to $0.23 for the first quarter of 2012, based upon approximately 10.0 million and 9.4 million diluted common shares outstanding, respectively.

"We finished the first quarter of 2013 with positive momentum," commented Ronghua Wang, Chairman and Chief Executive Officer of Biostar. "Our net income was positive in the quarter and this reflects a gradual improvement in our sales. We expect the negative impact from the Capsule Incident is now behind us and we are optimistic that with our continued expansion of our product portfolio, supported by comprehensive marketing and distribution strategies, we are in position to leverage our product portfolio for optimal growth," Wang concluded.

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

On May 1, 2013, Biostar Pharmaceuticals, Inc. (the “Company”) received a notification letter (the “Notice”) from NASDAQ's Listing Qualifications Department (“NASDAQ”) advising 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) (the “Minimum Bid Price Rule”).
 
The Notice also stated that the Company would be provided 180 calendar days, or until October 28, 2013, to regain compliance with the Minimum Bid Price Rule. To do so, the bid price of the Company’s common stock must close at or above $1.00 per share for a minimum of ten consecutive business days prior to that date.  
 
If the Company does not regain compliance by October 28, 2013, the Company may be eligible for an additional grace period if it applies to transfer the listing of its common stock to The NASDAQ Capital Market.  To qualify, the Company would be required to meet the continued listing requirements for market value of publicly held shares and all other initial listing standards for The NASDAQ Capital Market, with the exception of the minimum bid price requirement, and provide written notice of its intention to cure the minimum bid price deficiency during the second compliance period by effecting a reverse stock split if necessary.  If the NASDAQ staff determines that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible for such additional compliance period, NASDAQ will provide notice that the Company's common stock will be subject to delisting.  At that time, the Company may appeal the delisting determination to a Hearings Panel.
 
The Company intends to continue to monitor the bid price for its common stock. If the Company’s common stock does not trade at a level that is likely to regain compliance with the NASDAQ requirements, the Company’s Board of Directors will consider other options that may be available to achieve compliance.

XIANYANG, China, October 15, 2012 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that on October 8, 2012 it signed a one-year agreement valued at approximately $3.0 million to manufacture and supply Xijing Hospital with five additional drugs.

Specifically, the five drugs include: Qing Wen Granule (used to treat viral colds), Ru Xiao Kang Capsule (used to treat hyperplasia of mammary glands, breast swelling and mastadenoma), Stomach and Intestine Purifying Capsule (used to treat chronic gastritis, enteritis and ulcers), Juteng Capsule (used to treat hypertension, hyperlipidemia, cerebral arteriosclerosis, encephalatrophy and strokes), and Ding An Kang Granule (used to treat insomnia and irritability).

The material terms of this agreement are similar to those of the $3.6 million agreement signed with Xijing Hospital last month, as these five drugs will also be exclusively sold at and given to patients admitted to the hospital for treatment.

Ronghua Wang, Biostar's Chief Executive Officer and Chairman, commented, "We have successfully completed experimental tests and trial production for these five drugs and also passed manufacturing technology and quality inspections. As per the terms of the agreement, we will immediately start manufacturing the five drugs; the first supply is expected to be delivered to Xijing Hospital at the end of October 2012."

Mr. Wang added, "We are pleased to have signed two drug manufacturing contracts with Xijing Hospital, which is managed by The Fourth Military Medical University ("FMMU"), one of China's most prestigious military medical universities and research centers. We are currently manufacturing eight drugs for the Xijing Hospital and are working to sign additional contracts for more than a dozen new drugs."

Mr. Wang concluded, "We will continue to expand our cooperation with Xijing Hospital and FMMU to become a strategic partner in the fields of research and product development. The cooperation with FMMU enables us to enhance shareholder value by expanding our product range, increasing sales and profitability."

XIANYANG, China, October 2, 2012 /PRNewswire/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that on September 24, 2012 it signed a one-year agreement to manufacture and supply Xijing Hospital with three new drugs: Gastritis Granule, Pharyngitis Granule and Nasosinusitis Granule.

This agreement is valued at approximately RMB 24 million (or approximately $3.6 million); starting in October 2012, Biostar will deliver the first monthly supply valued at approximately RMB 2 million (or approximately $0.3 million).

These three drugs will be exclusively sold at and given to patients admitted to Xijing Hospital for treatment. Gastritis Granule is used to treat chronic and atrophic gastritis; Pharyngitis Granule is used to treat acute and chronic throat inflammation; and, Nasosinusitis Granule is used to treat acute and chronic sinusitis. Full release.

XIANYANG, China, August 20, 2012 /PRNewswire-Asia/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that its Zushima Analgesic Spray ("Zushima spray") pain relief drug has received the "Army New Drug Certificate", which is registered with China military authorities as "Military Medicine Certificate # Z2012002".

Zushima spray, which was developed in cooperation with Lanzhou Military Institute of Drugs and Instruments specifically for the needs of China's military, relieves pain and topical swelling, joint pain due to rheumatic conditions, and helps improve blood circulation near affected areas.

Zushima spray has been listed in the military pharmaceutical R&D program since June 2006; entered clinical trials in 2008 which were completed in 2010; passed examination and approval of General Logistics department of China's Ministry of Health on April 15, 2011, and received the "Army New Drug Certificate" by People's Liberation Army General Logistics department last month.

Biostar completed the construction of a dedicated plant and production line for Zushima spray in May 2012, and the testing of all equipment in July. Good Manufacturing Practice (GMP) certification for this line is expected shortly, to be followed by production approval. Zushima spray will initially be sold in military hospitals and is expected to generate between $4 million - $5 million in 2013 revenues. In addition, Biostar intends to seek SFDA's approval to sell Zushima spray in the national market.

Ronghua Wang, Biostar's Chief Executive Officer and Chairman, commented, "We are pleased that after completing several years of clinical trials, we received this approval for Zushima's "Army New Drug Certificate". It marks an important milestone for Biostar as the Chinese military market represents a new opportunity for growth. Since last year, we have been cooperating with military universities such as The Fourth Military Medical University and have signed LOIs to conduct clinical trials for new products, which should enable us to become a producer of drugs specifically for the needs of China's military."

Second Quarter 2012 vs. Second Quarter 2011

• Net sales decreased to $8.2 million from $25.9 million;
• Gross margin decreased to 56.0% as compared to 71.9%;
• Loss from operations was $12.2 million, as compared to income from operations of $6.0 million. Loss from operations for the current period included a charge to operations of $7.9 million shown on the following tables as "credits for negative publicity" relating to a write-down of accounts receivables. Excluding this write-down, loss from operations for the current period was $4.3 million;
• The net loss was $9.5 million, or $1.01 per diluted share, as compared to net income of $4.2 million, or $0.45 per diluted share. Excluding the aforementioned credits to negative publicity, the net loss for the current period would have been $3.6 million or $0.38 per diluted share.

Ronghua Wang, Biostar's Chief Executive Officer and Chairman commented, "As previously announced, the suspension of sales of gel capsule products severely affected all China-based pharmaceutical companies that use gelatin capsules to manufacture their drugs, including Biostar. This has been a major issue for China's pharmaceutical industry as many large pharmaceutical companies reported substantial losses for the April � July period. Unfortunately, we were not immune to the industry-wide losses and our sales and overall results for the 2012 second quarter were similarly adversely affected."

Mr. Wang continued, "Sales of our flagship gel capsule product Xin Aoxing decreased approximately 83% and 53% for the three and six months ended June 30, 2012, respectively, as we did not record sales of this product in May and June. Sales for all other gel capsule products also declined. Only two non-gel capsule drugs, Danshen Granule and Taohuasan Pediatrics were not affected during the current second quarter. Net sales from our newly acquired Weinan facility accounted for approximately 22% and 14% of sales for the three and six months ended June 30, 2012, respectively. There were no sales reported from drugs manufactured at this facility for the 2011 corresponding periods since this business was acquired during the fourth quarter of 2011.

XIANYANG, China, August 4, 2012 /PRNewswire-Asia/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that on July 30, 2012, after a thorough inspection of raw materials used in every production category, it received "green-light" approval from Xianyang State Food and Drug Administration (SFDA) authorities to restart sales of its gel capsule products.

Ronghua Wang, Biostar's Chief Executive Officer and Chairman, commented, "In April 2012, during an industry-wide investigation by SFDA, 254 drug manufacturers in 28 provinces were found to use gel capsules that had a chromium content higher than edible gelatin. As a result, SFDA suspended sales of gel capsules until the investigation was completed. As previously disclosed, during this investigation, one batch of samples of our Xin Aoxing capsule was found to have chromium content higher than edible gelatin. This was an isolated incident and sales of products made from the tainted batch represented approximately 0.2% of total 2011 net sales."

Mr. Wang continued, "The cessation of sales of gel capsule products has severely affected allChina-based pharmaceutical companies that use gelatin capsules to manufacture their drugs, including Biostar. This has been a major issue for China's pharmaceutical industry as many large pharmaceutical companies reported substantial losses for the April - July period. Unfortunately, we were not immune to the industry-wide losses, and Biostar's sales and overall results for the 2012 second quarter were similarly adversely affected. We expect net sales for the 2012 second quarter to be in the range of $7.5 million - $8 million, or approximately 50% lower than those in the first quarter of 2012. This is mainly due to an approximately 55% decrease in sales from products manufactured at our Aoxing facility, offset by an approximately 14% increase in sales from products manufactured at Weinan facility, acquired in October 2011."

Mr. Wang added, "However, during this difficult time for us and our industry peers, we took all the necessary steps to restart sales of gel capsule drugs immediately after the anticipated receipt of the approval from the SFDA. Currently, our employees are working overtime and we have added a second shift. We also started an aggressive advertising campaign to help improve consumer confidence in our products and have established incentives for our sales force in all of our distribution offices nationwide."

He added, "We expect sales for 2012 third quarter to significantly improve as compared to the 2012 second quarter, and a full rebound is expected for the last quarter of the year."

Mr. Wang concluded, "Despite this setback, our business and prospects remain strong. We will continue to pursue increased market share of our current products, while introducing new products from our large portfolio of SFDA-approved OTC and prescription drugs. Additionally, we will continue bidding on new hospital contracts for prescription drugs, to supply hospitals with prescription drugs, which will provide us with a more predictable recurring revenue stream. Finally, we continue to cooperate with scientific research institutions to develop new drugs as we are now doing with The Fourth Military Medical University."

As referenced above, the Company's sales revenue as of the second quarter ended June 30, 2012 is estimated and therefore should be considered preliminary. All such estimates are subject to change to reflect any adjustments that are identified before the Company completes its financial statements and files its Quarterly Report on Form 10-Q for the quarter ended June 30, 2012.

XIANYANG, China, August 4, 2012 /PRNewswire-Asia/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that on July 30, 2012, after a thorough inspection of raw materials used in every production category, it received "green-light" approval from Xianyang State Food and Drug Administration (SFDA) authorities to restart sales of its gel capsule products.

Ronghua Wang, Biostar's Chief Executive Officer and Chairman, commented, "In April 2012, during an industry-wide investigation by SFDA, 254 drug manufacturers in 28 provinces were found to use gel capsules that had a chromium content higher than edible gelatin. As a result, SFDA suspended sales of gel capsules until the investigation was completed. As previously disclosed, during this investigation, one batch of samples of our Xin Aoxing capsule was found to have chromium content higher than edible gelatin. This was an isolated incident and sales of products made from the tainted batch represented approximately 0.2% of total 2011 net sales."

Mr. Wang continued, "The cessation of sales of gel capsule products has severely affected all China-based pharmaceutical companies that use gelatin capsules to manufacture their drugs, including Biostar. This has been a major issue for China's pharmaceutical industry as many large pharmaceutical companies reported substantial losses for the April - July period. Unfortunately, we were not immune to the industry-wide losses, and Biostar's sales and overall results for the 2012 second quarter were similarly adversely affected. We expect net sales for the 2012 second quarter to be in the range of $7.5 million - $8 million, or approximately 50% lower than those in the first quarter of 2012. This is mainly due to an approximately 55% decrease in sales from products manufactured at our Aoxing facility, offset by an approximately 14% increase in sales from products manufactured at Weinan facility, acquired in October 2011."

Mr. Wang added, "However, during this difficult time for us and our industry peers, we took all the necessary steps to restart sales of gel capsule drugs immediately after the anticipated receipt of the approval from the SFDA. Currently, our employees are working overtime and we have added a second shift. We also started an aggressive advertising campaign to help improve consumer confidence in our products and have established incentives for our sales force in all of our distribution offices nationwide."

He added, "We expect sales for 2012 third quarter to significantly improve as compared to the 2012 second quarter, and a full rebound is expected for the last quarter of the year."

Mr. Wang concluded, "Despite this setback, our business and prospects remain strong. We will continue to pursue increased market share of our current products, while introducing new products from our large portfolio of SFDA-approved OTC and prescription drugs. Additionally, we will continue bidding on new hospital contracts for prescription drugs, to supply hospitals with prescription drugs, which will provide us with a more predictable recurring revenue stream. Finally, we continue to cooperate with scientific research institutions to develop new drugs as we are now doing with The Fourth Military Medical University."

As referenced above, the Company's sales revenue as of the second quarter ended June 30, 2012 is estimated and therefore should be considered preliminary. All such estimates are subject to change to reflect any adjustments that are identified before the Company completes its financial statements and files its Quarterly Report on Form 10-Q for the quarter ended June 30, 2012.

XIANYANG, China, June 13, 2012 /PRNewswire-Asia/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that it signed a Letter of Intent ("LOI") with The Fourth Military Medical University ("FMMU") to jointly conduct Phases I to III clinical trials for Viacom Pine II Cream ("Viacom") drug. The LOI has been submitted to China's military authorities for approval.

Viacom is a prescription drug developed by the First Affiliated Hospital of Dermatology of FMMU specifically for the needs of China's military and will be used to treat skin diseases such as bacterial and fungal infections, dermatitis and eczema. Viacom has passed all standard tests related to quality, stability, toxicology and efficiency. Phases I to III clinical trials must be conducted for a period of three years prior to receiving final approval from military authorities to start production.

FMMU is one of China's most prestigious military medical universities and research centers and its primary purpose is to advance China's military medicine. In January 2012, Biostar was one of nine PRC pharmaceutical companies selected to cooperate with FMMU in the fields of research and product development.

According to the terms of the LOI, FMMU will be responsible for:

    Submitting applications and receiving approvals to commence clinical trials; coordinating with China's military authorities during clinical trials and securing all needed approvals to continue Phases I to III of these clinical trials for the next three years at FMMU's facilities; securing final production approvals by October 2015; and providing the technology to ensure the quality and effectiveness of the product.

Biostar will be responsible for:

    Coordinating with FMMU to complete the clinical trials before October 2015; bearing all costs of clinical trials and approvals; completing the construction of the production line and obtaining the GMP certification on time; and manufacturing the drug using the technology provided by FMMU.

Ronghua Wang, Biostar's Chief Executive Officer and Chairman, commented, "Following the initial clinical research, Viacom has demonstrated encouraging results for the treatment of several skin diseases such as bacterial and fungal infections, dermatitis and eczema which are common among members of the PRC armed forces. Additionally, these types of skin diseases affect a large portion of China's population and, if not treated properly, could result in severe health complications. Once Viacom receives approval from the military authorities to be sold in military hospitals, we will apply to receive SFDA's approval to sell it in health care centers and hospitals all over the country."

Mr. Wang continued, "This LOI follows the Cooperation Agreement we signed in January 2012, according to which Biostar was selected to work with FMMU's staff to share resources and ideas and to carry out Phases I to IV of clinical trials for products which, when approved, will be sold directly to China's military and to the three hospitals managed by FMMU. We are targeting additional LOIs with FMMU to conduct clinical trials for new products, which will help us become a production base for manufacturing drugs specifically for the needs of China's military."

First Quarter 2012 vs. First Quarter 2011

• Net sales increased 4.0% to $15,899,541 from $15,288,927;
• Gross margin decreased to 68.2% as compared to 69.9%;
• Income from operations decreased to $3,187,824, as compared to $3,728,163; and,
• Net income decreased to $2,167,415, or $0.23 per diluted share, as compared to $2,723,513, or $0.30 per diluted share.(1)
• Net income for first quarter of 2012 included $791,127 in research and development (R&D) expense which was not included in the first quarter of 2011. Excluding that expense, net income for the first quarter of 2012 was $2,958,542, or $0.32 per diluted share.

Ronghua Wang, Biostar's Chief Executive Officer and Chairman commented, "The 4% increase in total net sales for the 2012 first quarter was due to approximately $1.6 million of net sales of products manufactured at the Weinan facility, offset by a slight decrease in sales for Xin Aoxing and all other products manufactured at the Xianyang facility."

Mr. Wang concluded, "Our 2012 goals are to grow our business by:

• Continuing to make efforts to increase the market share of our current products, while introducing additional new products as we have a large portfolio of OTC and prescription drugs already approved by SFDA.
• Introducing a new OTC product later this year which we believe has the potential to become another flagship product, similar to Xin Aoxing. Based upon our research, this product addresses a large underserved market and we therefore expect it to become a growth catalyst for Biostar.
• Continue bidding on new hospital contracts for prescription drugs. We are encouraged by the recently won bid to supply hospitals based in the provinces of Liaoning, Hebei and Shandong with Huangyangning Tablets for up to three years. This win marked an important milestone, as hospital contracts for prescription drugs provide us with a more predictable recurring revenue stream."

XIANYANG, China, April 23, 2012 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that its Shaanxi Weinan subsidiary, acquired in October 2011, won a bid and has been selected as the exclusive supplier of Huangyangning Tablets, a prescription drug used for the treatment of cardiovascular disease, to all hospitals based in the provinces of Liaoning, Hebei and Shandong for up to three years. Biostar will supply Huangyangning Tablets to these hospitals based on patient needs in each hospital.

Ronghua Wang, Biostar's Chairman of the Board and Chief Executive Officer noted, "Bidding on and winning this contract are very important milestones for Biostar. After the acquisition of Shaanxi Weinan, we expanded our product portfolio with seven prescription drugs, bringing our total number of prescription drugs to nine. Following the completion of the acquisition, we focused marketing efforts for prescription drugs on expanding sales to hospitals which entails contract bidding. Of note, historically we have sold our products to local pharmacies and pharmaceutical distributors, but with this win we have penetrated the hospital prescription drug market. This win will provide us with guaranteed sales for Huangyangning Tablets, a drug used to treat cardiovascular symptoms such as chest pain and arrhythmia embolism. The product is widely used by cardiovascular patients all over China."

Mr. Wang added, "The cardiovascular disease drug market in China has been increasing by 18% annually, reaching over RMB 135 billion in 2011, and is the largest segment of pharmaceutical market in China. According to research conducted by the Chinese Center for Disease Control and Prevention, patients with cardiovascular disease have one of the highest mortality rates. Recent studies show that one person suffers a stroke or myocardial infarction every 12 seconds; deaths from cardiovascular diseases account for approximately 40% of total deaths in China."

Mr. Wang concluded, "We have submitted bids and plan to submit more to sell Huangyangning Tablets in other provinces and we plan to do the same for our other prescription drugs. These types of hospital contracts will provide Biostar with a good foundation for continued growth in sales and profits for the years to come. Our focus has always been to increase shareholder value and we are pleased that the acquisition of Shaanxi Weinan in late 2011 is proving to be a good investment for Biostar."

XIANYANG, China, April 4, 2012 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based developer, manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that its Board of Directors unanimously approved a reverse split of its common stock at a ratio of 1-for-3, with anticipated trading on the post-split basis on NASDAQ commencing at the open of the stock market on April 4, 2012.

Accordingly, as of the effective date of the reverse split, each 3 shares of issued and outstanding common stock and equivalents will be converted into 1 share of common stock. In addition, the common stock will trade under a new CUSIP number. The Company's ticker symbol will remain unchanged (although NASDAQ may append a fifth-letter identifier "D" to indicate the completion of the reverse stock split, and after a 20 trading-day period following effectiveness of the reverse split, the ticker symbol will revert to "BSPM"). The reverse stock split will become effective upon the filing of the Company's Articles of Amendment to its Articles of Incorporation with the State of Maryland. As noted above, the foregoing action has been duly approved by unanimous written consent of Biostar's Board of Directors pursuant to the Maryland General Corporation Law, without stockholder approval requirement.

As a result of the reverse stock split, the number of outstanding common shares will be reduced to approximately 9,398,892. Fractional stockholdings will be rounded up to the nearest whole number. The reverse stock split will affect all stockholders uniformly and will not affect any stockholder's ownership percentage of the shares of the Company's common stock. Biostar stockholders should contact their broker or Biostar's transfer agent, Interwest Stock Transfer Company at (801) 272-9294, for instruction relating to the reverse stock split procedures.

The purpose of the reverse stock split is to raise the per share trading price of the Company's common stock to regain compliance with the minimum $1.00 continued listing requirement for the listing of its common stock on The NASDAQ Global Market. As previously announced, in order to maintain the Company's listing on Nasdaq, on or before April 23, 2012, the Company's common stock must have a closing bid price of $1.00 or more for a minimum of 10 prior consecutive trading days. There can be no assurance that the reverse stock split will have the desired effect of raising the closing bid price of the Company's common stock prior to April 23, 2012, to meet this requirement.

XIANYANG, China, April 4, 2012 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based developer, manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that its Board of Directors unanimously approved a reverse split of its common stock at a ratio of 1-for-3, with anticipated trading on the post-split basis on NASDAQ commencing at the open of the stock market on April 4, 2012.

Accordingly, as of the effective date of the reverse split, each 3 shares of issued and outstanding common stock and equivalents will be converted into 1 share of common stock. In addition, the common stock will trade under a new CUSIP number. The Company's ticker symbol will remain unchanged (although NASDAQ may append a fifth-letter identifier "D" to indicate the completion of the reverse stock split, and after a 20 trading-day period following effectiveness of the reverse split, the ticker symbol will revert to "BSPM"). The reverse stock split will become effective upon the filing of the Company's Articles of Amendment to its Articles of Incorporation with theState of Maryland. As noted above, the foregoing action has been duly approved by unanimous written consent of Biostar's Board of Directors pursuant to the Maryland General Corporation Law, without stockholder approval requirement.

As a result of the reverse stock split, the number of outstanding common shares will be reduced to approximately 9,398,892. Fractional stockholdings will be rounded up to the nearest whole number. The reverse stock split will affect all stockholders uniformly and will not affect any stockholder's ownership percentage of the shares of the Company's common stock. Biostar stockholders should contact their broker or Biostar's transfer agent, Interwest Stock Transfer Company at (801) 272-9294, for instruction relating to the reverse stock split procedures.

The purpose of the reverse stock split is to raise the per share trading price of the Company's common stock to regain compliance with the minimum $1.00 continued listing requirement for the listing of its common stock on The NASDAQ Global Market. As previously announced, in order to maintain the Company's listing on Nasdaq, on or before April 23, 2012, the Company's common stock must have a closing bid price of $1.00 or more for a minimum of 10 prior consecutive trading days. There can be no assurance that the reverse stock split will have the desired effect of raising the closing bid price of the Company's common stock prior to April 23, 2012, to meet this requirement.

Fourth Quarter 2011 Results

• Net sales decreased 8.1% to $25,985,024 from $28,277,390;
• Gross margin was 68.3% as compared to 76.1%;
• Income from operations decreased to $2,542,230, compared to $8,122,473; and,
• Net income decreased to $833,630, or $0.03 per diluted share, compared to $6,105,736, or $0.22 per diluted share.

Ronghua Wang, Biostar's Chief Executive Officer and Chairman commented, "Net sales for the 2011 fourth quarter declined by approximately $2.3 million from the same period of 2010, mainly due to lower net sales of our flagship product, Xin Aoxing Capsule. To combat increased competition facing our Xin Aoxing Capsule, in mid-2011 we started a 'Buy 3 Get 1 Free' promotion, and as a result, sales volume increased, but net sales decreased by approximately $2.7 million from the 2010 fourth quarter. Since the start of this promotion, gross margin for Xin Aoxing Capsule has declined, but continues to remain above 80%."

Mr. Wang continued, "For all the other products, although sales volume increased, selling prices were depressed due to the Chinese government's price control policy through its drug-tendering model called 'lowest-price-win' Anhui EDL (essential drug list). This accounted for much of the decline in gross margin. Notwithstanding the lower selling prices, however, for 2011 as a whole, net sales increased by approximately $11.8 million or 14.6%. This was a direct result of our ongoing efforts to gain market share in our current locations, as well as, to expand our operations into new provinces.

Mr. Wang noted, "Another persistent reason for the decline in gross margin for the 2011 fourth quarter and the year has been the significant increase of raw materials costs, especially those used in Taohuasan Pediatrics Medicine and Tianqi Dysmenorrhea Capsule. To control costs and enhance quality of our raw materials, we have planted 13 herbs at our 82 acre plantation in Qinling Mountains, two of which, salvia miltiorrhiza and honeysuckle, have been harvested and are being used to produce Danshen Granule and a health product. Other herbs should be ready for harvest in 2012. We plan to either trade these herbs for other raw materials or sell them."

Mr. Wang added, "We continue to execute our strategy to grow our Company organically and through acquisitions. In 2011, we 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 approximately 13,000 sales outlets. To further increase our market share, we have expanded our sales force to over 400 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 eight OTC products and prescription drugs in our pipeline. "

Mr. Wang noted, "With the 2011 acquisition of Shaanxi Weinan, we increased our portfolio of drug approvals and permits by an additional 86 drugs and one health product. Currently, we are manufacturing eleven products at Shaanxi Weinan's facilities, and we expect to generate over $5 million in net sales in 2012 from the sale of these products."

Mr. Wang concluded, "We believe that Biostar is well positioned to take advantage of opportunities in China's pharmaceutical market, ranked the third largest in the world in 2011, over $50 billion in size and with growth projected at more than 20% in the next five years. Our large portfolio of drug approvals and permits, state-of-the-art research laboratories, high-tech production facilities, large distribution network and geographic coverage, are the foundations for our continued growth. To address the significant unmet needs of its population, China's $124 billion healthcare reform plan, launched in 2009, has made accessibility and affordability two major government guidelines. Our business plan works well with those goals. Additionally, we participate in the New Rural Medical Care Cooperative Program launched by the Chinese government in 2008, and benefit from greater numbers of people seeking medicines offered in hospitals and healthcare centers. We expect to announce 2012 revenue guidance when we issue our results for the first quarter of 2012."

Third Quarter 2011 Results

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 

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:

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."

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

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 ~11X P/E multiple. By applying a 11X P/E multiple to our 2011 EPS estimates of $0.60, the estimated value of Biostar would be $7/share.

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.

Rodman & Renshaw on BSPM

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.

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.

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.

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.

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.

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.

• 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.

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 

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.  

"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.

 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."

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."

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)

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...

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.

    -- 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.

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.

^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.

^c The 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.

^d GeoTeam assumption.

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.

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.

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.

Biostar Pharmaceuticals (OTC BB:BSPM), GeoSpecial

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

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