Recent Industry Developments Reaffirm Positive Glucose Industry Outlook
WEIFANG,
Pharmaceutical, Inc. (OTC Bulletin Board: SGTI) (“Shengtai” or “the Company”),
a leading manufacturer and distributor of high-quality, pharmaceutical grade
glucose products in
planned production expansion to accommodate an expected increase in the
glucose-based transfusion market in
“The demand for medical transfusion products has been and should continue
to be strong in
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
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
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
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
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
Forward-looking Statements
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: shengtaicfo@hotmail.com
Grayling
Eddie Cheung
Investor Relations
Tel: +1-646-284-9414
Email: echeung@hfgcg.com
SOURCE Shengtai Pharmaceutical, Inc.