Shengtai Pharmaceutical, Inc. Comments on China's Recently Approved Health Care Reform Plan
February 05 2009 - 8:30AM
PR Newswire (US)
WEIFANG, China, Feb. 5 /PRNewswire-Asia-FirstCall/ -- Shengtai
Pharmaceutical, Inc. (OTC:SGTI) (BULLETIN BOARD: SGTI) ("Shengtai"
or "the Company"), a leading manufacturer and distributor of
high-quality, pharmaceutical grade glucose products in China, today
commented on a recently released State Council approved plan to
spend a total of 850 billion RMB (USD 123 billion) by 2011 to
provide universal primary medical services. Over the next three
years, the multi-billion health care plan is aimed at expanding the
government-sponsored medical insurance network to provide
affordable, basic health care coverage to over 90% of the
population. The plan seeks to expand health care services by
targeting the country's approximately 900 million farmers, many of
whom lack basic medical insurance, to ensure they are covered under
the program. Under the plan, each person covered by the program
will receive an annual health care subsidy after the 2010 year. In
addition, the government will build hospitals and community health
clinics to improve medical services in the rural and
under-developed areas. "We believe Shengtai stands to benefit from
the government's plan as our pharmaceutical grade glucose is a
basic raw material used in medical transfusions, which is also the
most common form of medical treatment in China," said Mr. Qingtai
Liu, Shengtai Pharmaceutical's CEO. "As the government builds more
rural hospitals and community health clinics, we believe there will
be an increased demand for glucose as more patients receive
transfusions as part of their basic medical services. With our
state-of-the-art glucose production facilities, we have the
production capacity to meet the anticipated increase in glucose
demand. This production expansion, in addition to the recent
reorganization of our domestic and international sales department,
positions us so we are ready to take advantage of additional market
opportunities. Our actions are part of our efforts to provide
existing and potential new customers with high-quality products,
and a solid platform from which we can grow and maintain our
leadership in our business." About Shengtai Pharmaceutical, Inc.
Shengtai Pharmaceutical, Inc. through its wholly owned subsidiary,
Shengtai Holding, Inc. (SHI), a New Jersey corporation, 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. For more information
about Shengtai Pharmaceutical, Inc., please visit
http://www.shengtaipharmaceutical.com/ . 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, the
Company's planned capacity expansion 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 its product's applications, cost of raw materials,
downturns in the Chinese 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 Tel: +1-949-468-7078 Email:
Grayling Global Eddie Cheung Investor Relations Tel:
+1-646-284-9414 Email: DATASOURCE: Shengtai Pharmaceutical, Inc.
CONTACT: Ms. Yiru Melody Shi, Chief Financial Officer, Shengtai
Pharmaceutical, Inc. at +1-949-468-7078 or ; Or Eddie Cheung,
Investor Relations, Grayling Global at +1-646-284-9414 or Web site:
http://www.shengtaipharmaceutical.com/
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