Stock Update (NASDAQ:BSPM): Here’s Why Biostar Pharmaceuticals Inc Shares Jumped 105% Today
Biostar Pharmaceuticals Inc (NASDAQ:BSPM) investors cheer the announcement that the health supplement products maker will launch a new topical product in China next month called “Easy Breathing” for the treatment of rhinitis and sinusitis.
Biostar shares reacted to the news, jumping nearly 105% to $7.01 on Tuesday session.
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).” (Original Source)
BioStar Pharmaceuticals, Inc., develops, manufactures and markets pharmaceutical and health supplement products for a variety of diseases and conditions. The company’s products include AoXing Oleanlic Acid Capsule (treatment for Hepatitis B), Danshen Granule (treatment for coronory heart disease, myocarditis and angina pectoris), GanWang (treatment for colds, runny nose, sore throat, headache and fever), Taohuasan (treatment for bronchial congestion and coughs) and Tianqi Dysmenorrhea Capsule (treatment for dysmenorrhea).