Biostar Pharmaceuticals Inc. (BSPM: Quote), said 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 or SFDA authorities to restart sales of its gel capsule products.
During an industry-wide investigation by SFDA in April 2012, 254 drug manufacturers in 28 provinces were found to use gel capsules that had a chromium content higher than edible gelatin. Biostar's Chief Executive and Chairman, commented, "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."
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."
The compaay sees net sales for the 2012 second quarter in the range of $7.5 million - $8 million, or about 50% lower than those in the prior quarter, due mainly to nearly 55% drop in sales from products manufactured at its Aoxing facility, offset by some 14% rise in sales from products manufactured at Weinan facility, acquired in October 2011.
For the 2012 third quarter, Biostar projects sales to significantly improve versus the 2012 second quarter, and a full rebound is expected for the last quarter of the year.
 | | To receive FREE breaking news email alerts for Biostar Pharmaceuticals, Inc. and others in your portfolio |
|
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Business News