LAIYANG, China, April 22 /PRNewswire-Asia-FirstCall/ -- Genesis Pharmaceuticals Enterprises, Inc. ("Genesis" or the "Company"), a U.S. pharmaceutical company with its principal operations in the People's Republic of China, today announced that it began marketing and selling three Traditional Chinese Medicines ("TCMs"). These TCMs are Yi Mu Cao Gao (a motherwort herb electuary sticky syrup), Gan Mao Zhi Ke Ke Li (an antipyretic and antitussive granule), and Kang Gu Sui Yan Pian (an osteomyelitis treatment tablet).
The Company recently purchased 22 TCMs with SFDA drug regulatory agency approvals for manufacturing and distribution from Hongrui Pharmaceuticals. The three TCMs which Genesis is now beginning to market and distribute are the first three products Genesis acquired from Hongrui to be relabeled and sold under Genesis' brand name "Jiangbo." All three Hongrui products are being sold through the 28 independent distributors used by Genesis.
Yi Mu Cao Gao is used to treat dysmenorrhoea, oligminorrhea and postpartum abdominal pain. It is included in China's provincial and national medical insurance catalogues, which means consumers are reimbursed for the cost of purchasing this product.
Gan Mao Zhi Ke Ke Li antipyretic and antitussive granules help relieve cold and flu symptoms such as fever, headache, rhinocleisis, cough, throat pain and phlegm. It is used in a large number of China's hospitals and clinics and is popular with consumers. Proposed healthcare reforms in China are expected to result in more hospitals and clinics carrying Gan Mao Zhi Ke Ke Li, making it even more widely available to consumers.
Kang Gu Sui Yan Pian osteomyelitis treatment tablets are used to treat bone and bone marrow inflammations. Osteomyelitis patients may develop resistance if treated by chemical drugs, such as antibiotics, for a long period of time. Chronic patients are also likely to need surgery. A 100% herb-based Traditional Chinese Medicine, Genesis' osteomyelitis tablets offer an alternative treatment which is mild and was clinically tested to be effective in treating long term osteomyelitis problems. Genesis is the exclusive manufacturer of this product in China.
Sales of these three products are expected to be $1.5 million in the Company's fiscal year 2009, which ends on June 30, 2009, and an estimated $7.3 million in fiscal year 2010.
"We are pleased to launch these three products so quickly after taking control over Hongrui," said Mr. Wubo Cao, Chief Executive Officer of Genesis. "Generally speaking, TCMs are popular in rural China because they are less expensive than western medicines. We plan to increase our marketing and sales efforts for all of our TCM products in rural areas in conjunction with government plans to expand healthcare services there."
About Genesis Pharmaceuticals Enterprises, Inc.
Genesis Pharmaceuticals Enterprises, Inc. is a U.S. public company engaged in the research, development, production, marketing and sales of pharmaceutical products in the People's Republic of China. Its operations are located in Eastern China in an Economic Development Zone in Laiyang City, Shandong province. Genesis is a major pharmaceutical company in China producing both western and Chinese herbal-based medical drugs in time release tablet, capsule, granule, syrup and electuary (sticky syrup) form.
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties. Actual results may differ materially from anticipated or predicted results, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's ability to obtain raw materials needed in manufacturing, the continuing employment of key employees, the failure risks inherent in testing any new drug, the possibility that regulatory approvals may be delayed or become unavailable, patent or licensing concerns that may include litigation, direct competition from other manufacturers and product obsolescence. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
CONTACT: Genesis Pharmaceuticals Enterprises, Inc., Ms. Elsa Sung, CFO,
+1-954-727-8435, elsasung@jiangbo.com or CCG Investor Relations, Inc., Mr.
Crocker Coulson, President, +1-646-213-1915, crocker.coulson@ccgir.com for
Genesis Pharmaceuticals Enterprises, Inc.
Web site: http:///
http://www.ccgirasia.com//
