LAIYANG, China, July 15 /Xinhua-PRNewswire/ -- Genesis Pharmaceuticals Enterprises, Inc. (OTC Bulletin Board: GTEC) ("Genesis" or the "Company"), a leading pharmaceutical company in the People’s Republic of China, today announced that the Company received approval from the Chinese State Food and Drug Administration ("SFDA") to start producing and distributing Radix Isatidis Dispersible Tablets.
Radix Isatidis is an herbal-based traditional Chinese medicine used to cure viral influenza. Radix Isatidis is very popular in China because people there believe it has fewer side affects than western medicines. Most Radix Isatidis products are in powder form, which has to be dissolved in hot water. Genesis will be the only company in China to manufacture Radix Isatidis in dispersible tablet form. Radix Isatidis Dispersible Tablets will be more convenient to take, easier to absorb and are more stable than Radix Isatidis products in powder form.
Radix Isatidis Dispersible Tablets will be sold over the counter in pharmacies, a rapidly growing distribution channel for drugs in China. The Company will start distributing Radix Isatidis Dispersible Tablets within three months, and will make this medicine widely available to customers throughout China.
Annual sales of Radix Isatidis in China are estimated to be over US$1.43 billion. The Company estimates that its sales of Radix Isatidis Dispersible Tablets in fiscal year 2009 ending June 30, 2009 will be approximately US$4.2 million and an estimated US$10 million in fiscal year 2010.
Genesis has all of manufacturing equipment needed to produce Radix Isatidis Dispersible Tablets, and has concluded its marketing research and planning for this new product. The Company estimates that its first year working capital and marketing expenses will be approximately US$1.0 million.
"We are pleased to receive approval from the SFDA to produce and distribute Radix Isatidis Dispersible Tablets," said Mr. Cao Wubo, Chairman and CEO of Genesis Pharmaceuticals Enterprises. "We will distribute this new drug through our existing nationwide marketing and distribution network, and believe it will quickly become popular among a wide range of customers, from young to old people."
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 Northeast China in an Economic Development Zone in Laiyang City, Shandong province. Genesis is a major pharmaceutical company in China producing tablets, capsules, and granules for both western and Chinese herbal-based medical drugs.
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, including those relating to the Company’s ability to introduce, manufacture and distribute new drugs. 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.
