WEIFANG, China, Aug. 10 /PRNewswire-Asia-FirstCall/ -- Shengtai
Pharmaceutical, Inc. (OTC Bulletin Board: SGTI) announced on
August 6, 2010 that Weifang Shengtai
Pharmaceutical Co., Ltd ("Weifang Shengtai"), its operating
subsidiary in China, entered into
an agreement with Kelun Pharmaceutical ("Kelun") to supply Kelun
with 10 thousand tons of dextrose monohydrate injection grade:
Kelun Guizhou will be supplied with 7 hundred tons and Kelun
Sichuan with 9.3 thousand tons. The agreement is entered into at
reasonable prices and will be carried out by prepayments.
According to the information available on Kelun's website, Kelun
was founded in 1996 and has grown into a pharmaceutical group with
16 subsidiaries (branches). Kelun manufactures and sells drugs in
351 varieties of 16 types including IV solutions, and has the
largest number of product varieties and packaging forms in the IV
solution industry of China. Kelun
is one of the largest manufacturers of IV solutions in the world
and exports to markets overseas. In 2009, Kelun sold approximately
2.2 billion bottles (bags) of injection products in various kinds,
and its revenue exceeded RMB 3.2
billion. Kelun's market share in China was 23.4% in 2009.
Weifang Shengtai is a leading producer of pharmaceutical
injection-grade glucose in China.
It has about 40% of the market and is one of the only 3 licensed
manufacturers in China of
injection grade dextrose monohydrate. Weifang Shengtai's supply
agreement with Kelun represents the fact that Weifang Shengtai has
won recognition, reputation and trust among quality customers in
China. Weifang Shengtai continues
to be committed to production of the series of glucose products,
high-end glucose products, development of products, increase of
production capacity and expansion into markets overseas. Weifang
Shengtai's focus on high-end customers as well as targeting on
overseas markets will help increase profitability.
Shengtai Pharmaceutical, Inc. believes that the business between
Weifang Shengtai, as one of the top-quality suppliers of
pharmaceutical raw materials in China, and Kelun, as one of the top-quality
pharmaceutical manufacturers in China, will benefit the two parties in
achieving expansion of production and continuous improvement of
product quality.
Forward Looking Statements
Certain statements in this press release and oral statements
made by the Company constitute 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.
Tel: +86-536-629-5802
Email: shengtaigsz@hotmail.com
Investor Relations
DME Capital, LLC
Mr. David M. Elias
Tel: +1-516-967-0205
Email: dave@dmecapital.com
SOURCE Shengtai Pharmaceutical, Inc.
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