Luoxin Pharma Makes Scientific Breakthrough to Become China's First Producer of Cefazedone Sodium and Cefazedone Sodium for Injection

HONG KONG, June 13, 2011 /PRNewswire-Asia/ -- Shandong Luoxin Pharmacy Stock Co., Ltd. ("Luoxin Pharma or the "Company", HKEx stock code: 8058), a leading pharmaceutical manufacturer in China, announced today that it will become China's first producer of cefazedone sodium and cefazedone sodium for injection.

As the only declarer and developer of cefazedone sodium and cefazedone sodium for injection as a new medicine in the country, the Company will receive approval for the first batch of production to become the first company to produce this kind of medicine in China.

Cefazedone sodium and cefazedone sodium for injection, the new Type 3 chemicals the Company focuses on, have antibacterial activity and high effect on enterococcus with long half-life and plasma concentration. Therefore, such chemicals are widely used in antibiotics overseas with large market share. Due to the common use of broad-spectrum antibiotics in China and the increasing level of drug resistance, the State Food and Drug Administration has given a notice of promotion on reasonable use of antibiotics to call for doctors' cooperation and encourage the use of narrow-spectrum antibiotics in a bid to minimize negative effects of drugs and drug resistance. Recently, large medical institutions across the country have focused on the application of cephalosporins. It is expected that the Luoxin Pharma's new products, with an extensive sales network, will rapidly gain a large market share, creating benefits and facilitate the Company's large-scale development.

Luoxin Pharma has received approval for the production of five new products this year. The launch of these products has become the Company's growth driver. The Company has also received clinical trial approval for five Type 3 chemicals at the national level, and is actively proceeding with clinical trials of such products for official launches as part of the Company's efforts to follow the 12th Five-year Plan. As China is undergoing urbanization and rapid economic growth, Chinese people's awareness of health has been increased. The rising level of pharmaceutical consumption helps with the rapid development of pharmaceutical companies with high potential. Under such conditions, Luoxin Pharma is stepping up its investment in scientific research as well as innovations to provide more and better high technology pharmaceutical products for the treatment and recovery of patients at large, which has laid a solid foundation for an unrivalled position of the products and rapid, healthy growth of the Company.

Mr. Liu Baoqi, Chairman of Luoxin Pharma, said, "We are glad to be China's first producer of cefazedone sodium and cefazedone sodium for injection. The launch will help to alleviate both the illness and financial burden of patients and encourage our researchers to continue their working on the Type 1 medicine with independent intellectual property rights. We will strive to develop quality pharmaceutical products and make greater contribution to the industry."

About Shandong Luoxin Pharmacy Stock Co., Ltd.

Luoxin Pharma has been listed on the GEM of the Stock Exchange of Hong Kong Limited since 9 December 2005. The Company was recognized as one of the "Top Ten Pharmaceutical Enterprises with Growth Potential" and named as one of the "Top 100 Pharmaceutical Companies in China" since 2006. It was also selected on the "List of Small and Medium-sized Enterprises in China with Most Potentials" by Forbes for three consecutive years. The Company is principally engaged in the development, manufacturing and sale of different types of prescription and OTC (over-the-counter) medicines in 4 major categories: (1) antibiotics, including Cephalosporins antibiotics, Quinolones antibiotics and Macrolides antibiotics; (2) anti-viral medicines; (3) system-specific medicines, including digestive system medicines, cardiovascular system medicines and respiratory system medicines; (4) other chemical medicines, including Antineoplastic medicines. The Company's production facilities are located in the High and New Technology Experimental Zone, Linyi, Shandong Province, the PRC, and has obtained all required production permits as well as GMP certification. Its sales and marketing networks cover 27 provinces and 4 municipalities in the PRC.

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