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Recent Industry Developments Reaffirm Positive Glucose Industry Outlook
Mar 12, 09 02:30AM
WEIFANG, Shandong, China, March 12 /PRNewswire-Asia-FirstCall/ -- Shengtai Pharmaceutical, Inc. (OTC Bulletin Board: SGTI) ('Shengtai' or 'the Company'), a leading manufacturer and distributor of high-quality, pharmaceutical grade glucose products in China, today announced that key customers have indicated a planned production expansion to accommodate an expected increase in the glucose-based transfusion market in China.
'The demand for medical transfusion products has been and should continue to be strong in China despite the current macro economic environment,' said Mr. Qingtai Liu, CEO of Shengtai Pharmaceutical, Inc. 'Industry developments are currently underway that we believe will positively impact our core business in addition to the momentum generated from the government healthcare reform initiatives. Specifically, a number of our key customers including Beijing Double-Crane Pharmaceutical Co., Ltd. and Kelun Pharmaceutical Co., Ltd., two of the largest domestic suppliers of medical transfusion solutions, have announced in recent months their plans to expand their production capacity in anticipation of capturing future growth opportunities. With the commencement of our new glucose production facility in October 2008, we have already effectively doubled our glucose production capability. We intend to leverage our expanded glucose production capability as well as our excellent customer relationships to further solidify our position as their supplier of choice for their basic pharmaceutical grade glucose.'
According to statistics from the China Pharmaceutical Industry Association, demand for traditional glucose-based transfusion solutions accounted for about 2.75 billion bottles, or about 45% of the entire transfusion solutions market in China during 2007. Based on current trends, we believe demand for glucose- based transfusion solutions will increase substantially over the next two years. As manufacturers focus more of their resources to developing new products, the need for a top-quality raw materials supplier with production capacity becomes even greater.
'As one of only three licensed dextrose monohydrate glucose manufacturers in China, we are well positioned to capture the anticipated increase in industry demand,' continued Mr. Liu. 'Prior to the commencement of the new glucose facility, our glucose products revenue for the past two fiscal years did not increase as our production reached full capacity, as we were unable to meet customers' demand. With our new expanded glucose manufacturing capability, combined that with our strategic location in Shandong province, which provides us with ample supply of corn, and our best-in-class pharmaceutical grade glucose products, we will now be able to support our customers' growth as well as reduce their sourcing risks. We believe that we are positioned to increase our market share from our current 40% domestic share to an even larger position.'
In addition to growing its domestic glucose sales, Shengtai remains committed to expanding its international sales program, as the Company believes that a gradual recovery will soon start in those markets.
About Shengtai Pharmaceutical, Inc.
Shengtai Pharmaceutical, Inc. through its wholly owned subsidiary, Shengtai Holding, Inc. (SHI), and the Chinese operating company of Weifang Shengtai Pharmaceutical Co., Ltd., is a leading manufacturer and supplier of pharmaceutical grade glucose used for medical purposes. It also manufactures and supplies glucose and cornstarch products to the food, beverage and industrial production industries in China.
Certain statements made in this news release, may contain forward-looking statements concerning the Company's business and products. These statements include, without limitation, statements regarding our ability to prepare the Company for growth, future increases in market demand, possible increases in our market share and predictions and guidance relating to the Company's future financial performance. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs, but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as unanticipated changes in product demand especially in the pharmaceutical industry, pricing and demand trends for the Company's products, changes to government regulations, risk associated with operation of the Company's new facilities, risk associated with large-scale implementation of the Company's business plan, the ability to attract new customers, ability to increase our products' applications, cost of raw materials, downturns in the Chinese and world economy, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. Investors are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
For more information, please contact:
Shengtai Pharmaceutical, Inc. Ms. Yiru Melody Shi Chief Financial Officer Email: firstname.lastname@example.org
Grayling Eddie Cheung Investor Relations Tel: +1-646-284-9414 Email: email@example.com