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news.Biostar has reported an increase in revenue for the first quarter of 2009. The company recorded revenues of $7.5 million as compared to $6.8 million for the same period a year ago. Net income for the first quarter also witnessed an increase as compared to the same period last year.
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The growth in revenue is due to the increase in sales of four of Biostar’s five state approved drugs. The implementation of the Blue Sea project, which markets directly to consumers in PRC’s rural area through pharmacies, has caused the increase in sale of the drugs.
Growth in net income could not catch the rate of growth in sales, principally due to increase in selling general and administrative (SG&A) expenses as percentage sales.
SG&A accounts for 33% of sales for the first quarter of 2009, compared to 30% for the first quarter of 2008, which reflects an increase in staff and marketing budget and expenditure, which is expected to benefit the company’s sales in future.
Ronghua Wang, Chairman and CEO, Biostar, said: I am pleased that we have been able to report continued growth in revenues as we implement our plans to establish Biostar as a leading provider of over-the-counter and prescription treatments for disease and chronic conditions throughout the People’s Republic of China. The investments we are making in marketing, staff and infrastructure will serve us well into the future.