Biostar Pharmaceuticals Inc · OTC:BSPM
Biostar Pharmaceuticals — Investor Presentation (March 2010)
25 slides from Biostar Pharmaceuticals's investor presentation, Mar 9, 2010
Slide 1: Biostar Pharmaceuticals Investor Presentation
BIOSTAR PHARMACEUTICALS OTCBB: BSPM March 2010 INVESTOR PRESENTATION
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS In accordance with the 1995 Securities Litigation Reform Act of the "exemption" meaning, this statement documents contain "forward-looking statements". This statement related fo understand and unknown risks, uncertainties and other factors will cause the company’s statemen
Slide 3: Market Opportunity
MARKET OPPORTUNITY ' » In 2008, China pharmaceutical industry as a whole grew 25.2% reaching USD $115.8 billion*. » The Government stimulus package is expanded to the New Rural Cooperative Medical System by investing USD $124 billion with earmarks to improve insurance coverage and build 30,000 towns
Slide 4: China's New Healthcare Reform Plan
| CHINA’S NEW HEALTHCARE REFORM PLAN » The China Government announced in March 2009 an investment plan of RMB 850 billion (USD $124 billion) for a national healthcare system reform which has begun in 2009.* >» The funds will be spent by 2011 to provide universal medical services to the country’s 1.3
Slide 5: Select Financial Data
SELECT FINANC Fiscal Year December 31% Last-Traded Price (03/04/2010) $3.50 Diluted Shares Outstanding (03/04 /2010)* 25.7 M Market Capitalization $90.0M Management Ownership 35% Revenue 2008 §33.9M A113.5% Net Income 2008 $6.7M A68.8% 2008 EPS $0.29 9 Months Ended September 30, 2009 —- REVENUES §36
Slide 6: Headquartered in Xianyang, Shaanxi Province with four GMP-certified manufacturing lines
Headquartered in Xianyang, Shaanxi Province with four GMP-certified manufacturing lines and total of 497 employees including, 48 technicians and 53 corporate staff members. Proven market leadership ability with a monopoly on the Xin Aoxing capsule, China’s only SFDA approved OTC capsule treating Hep
Slide 7: Product Portfolio
PRODUCT PORTFOLIO BIOSTAR currently has: » Five key SFDA-approved drugs on the market. » Xin Aoxing Oleanolic Acid Capsule: The only SFDA approved OTC capsule currently being sold on the market that treats chronic hepatitis B disease. » Ganwang (Paracetamol & Amantadine Hydrochloride Capsule): An OT
Slide 8: Key Products
KEY PRODUCTS 932009 Retail Gross Margin a SFDA Name Revenue __ prices aioe Indications cisearetiow breakdown _uspg _ {93 2009) Xin Aoxing Oleanolic Acid 77% $75 84% Acute and chronic hepat ore Capsule G: janwang om $17 19% Prevents andl treats the common ore Compound cold and influenza. Tiangi An OT
Slide 9: China's Hepatitis Epidemic
CHINA’ ATITIS EPIDEMIC Key Facts © » Adisease caused by the hepatitis B virus (HBV) which infects and inflames the liver, causing life long side effects. » The hepatitis B virus is 50 to 100 times more infectious than HIV. » Approximately 130 million or 10% of the Chinese population has Hepatitis B.
Slide 10: Proven HBV Treatment
PROVEN HBV TREATMENT Biostar Shaanxi People’s Hospital Clinical Trials found the Xin Aoxing Capsule to have an average effective rate of 93.1% vs. 64.9% average efficacy for the control group. Trials consisted of group 1 with 100 patients taking BIOSTAR’s Xin Aoxing Oleanolic Acid Capsule, and the c
Slide 11: Prevalence
PREVALENCE Hepatitis B Surface Antigen Prevalence BBE High >8% Intermediate 2%-7% Low <2% Geographic Distribution of Hepatitis B Virus; China has more than a 10% prevalence of HBV Source: US CDC am
Slide 12: Vertically Integrated Operations
VERTICALLY INTERGRATED OPERATIO Biostar € ) prea @ Currentlyin A ales over 5010 Raw Material fil|| Raw Material R&Dand s ‘ 4 Plantation fl] Processing |) Production | MMi] Centers, | |i Centers and | fall qian cute Plantation Plant Plant ig 10,000 rural Pharmacies Provinces \\ sales outlet: ‘and Cli
Slide 13: Plantation and Raw Material Processing Plant
Biostar » The Company plantation includes: 80 acres of planted raw materials, 1500 acres of indigenous raw materials and the recently purchased 8.6 acres in close proximity of the plantation for the new raw material processing facility. The Company expects its first harvest in April 2010. » New raw
Slide 14: Research & Development
Internal R&D >» Most R&D activities are completed by the Company’s in-house research department of 30 scientists. External R&D » BIOSTAR collaborates with prestigious Academic institutions: Xianyang Material Medical Institute, Shaanxi University of Science and Technology, and the College of Life Sci
Slide 15: Modern Production Facility
MODERN PRODUCTION FACILITY >» BIOSTAR is equipped with the highest quality equipment and production facilities, which includes 48 pieces of advanced testing equipment and 122 pieces of standard production equipment. » The scope of BIOSTAR’s production includes: capsules, granules, powder type medici
Slide 16: Awards
s, / AWARDS In.2003, Biostar was selected as In 2001, "Ganwang Compound" was named “Advanced Unit for Management of In.2008, Xin Aoxing capsule was a8 a "Recommend Product by Quality of 2002" by Xianyang selected as "Designated Product Shaanxi Consumers Association” Municipal Goverment for Hepatitis
Slide 17: New Products - Launched in 2009
NEW PRODUCTS - LAUNCHED IN 2009 » Yizi Capsules » Aids infertility and helps in fetal development during pregnancy. » Direct sales through already established rural distribution network. » Tangning Capsules » For treatment of type II diabetes. » Lowest price point on the market while maintaining 54.
Slide 18: Strong Pipeline
TRONG PIPELINE » Ten drugs, nine prescription and one OTC, in the development pipeline with some expected approvals in 2010. > A | Ganfukang Tablets *— Removes toxins and treats acute and chronic hepatitis, targets prescription market (Already approved according to SFDA website) Niaosaitong * — Ensu
Slide 19: Competitive Advantages
| COMPETITIVE ADVANTAGES 1.Once harvesting begins and construction of processing plant is completed, will have complete vertical integration including harvesting and wholesale of herbs, raw material processing, R&D and drug manufacturing, distribution and retail sales. The complete supply chain give
Slide 20: Management Team
MANAGEMENT TEAM Ronghua Wang - Chairman > Qindu District Councilman from 2005 to 2007 » BIOSTAR CEO since 1997 > Prior Senior management with Geological Research Institute and Drugs Research Institute > Named “Top Ten Most Important People” in the Shaanxi pharmaceutical industry 2001 > Graduate of C
Slide 21: Board and Management (continued)
Gong Shuang - Secretary of the Board > Joined in Shaanxi Aoxing Pharmaceutical in 2001 > Served as Director and Marketing Manager of Xi'an branch > Bachelor’s degree in electromechanical integration from Xi'an Technology University > Executive Program in Economics and Management from Shaanxi Provinc
Slide 22: Profitability and Growth
PROFITABILITY AND GROWTH Revenues Revenue Growth (YOY) Cost of revenues Gross profit Gross profit margin SG&A, and R&D expenses Operating profit Operating profit margin Provision for income taxes Net income Net Income Growth (YOY) 559 22
Slide 23: Summary Balance Sheet
SUMMARY BALANCE SHEET Assets Cash & Cash Equivalents Account Receivable Inventory Prepaid Expenses Total Current Assets Net Property, Plant & Equipment Intangible Assets Total Non-Current Assets Total Assets ability & Shareholders' Equity Accounts Payable & Accrued Expenses Customer Advances Value-a
Slide 24: Strategies
GIES » Organic growth »Distribution Strategy — Open 50 distribution centers and invest in 10,000 village clinics and rural sales centers to take advantage of the Government’s New Rural Medical Co-op program to open 30,000 Township hospitals and 700,000 village clinics over the next three years. » Ve
Slide 25: Investor Relations
Investor Relations: Company: BioStar HC International Inc. Elaine Zhao, CFO John Mattio, SVP Phone: +1-626-456-2789 Phone: +1-203-616-5144 elaine@biostarpharmaceuticals.com Auditor: Mazars Hong Kong Legal: Richardson & Patel, LLP 25
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