Recent Industry Developments Reaffirm Positive Glucose Industry Outlook
March 12 2009 - 7:30AM
PR Newswire (US)
WEIFANG, Shandong, China, March 12 /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 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. 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: Grayling Eddie Cheung Investor Relations Tel:
+1-646-284-9414 Email: DATASOURCE: Shengtai Pharmaceutical, Inc.
CONTACT: Ms. Yiru Melody Shi, Chief Financial Officer of Shengtai
Pharmaceutical, Inc., ; or Eddie Cheung, Investor Relations, of
Grayling, +1-646-284-9414, , for Shengtai Pharmaceutical, Inc.
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